The Termination of Sales Representative Agreement is essential when a company or sales representative wishes to formally end their business relationship in Canada. This document is typically used when either party initiates the termination of a sales representation arrangement, whether due to business restructuring, performance issues, or mutual agreement. It ensures compliance with Canadian federal and provincial regulations while addressing critical elements such as final commission payments, client transitions, and ongoing obligations. The agreement is particularly important for protecting both parties' interests and maintaining clear documentation of the termination terms, especially considering Canadian requirements for fair dealing in commercial relationships and potential provincial variations in employment standards.
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1. Parties: Identifies the company and sales representative entering into the termination agreement
2. Background: References the original sales representative agreement and states the parties' intention to terminate it
3. Definitions: Defines key terms used throughout the termination agreement
4. Termination Date: Specifies the effective date of termination and acknowledges mutual agreement to end the relationship
5. Outstanding Commissions: Details the calculation and payment schedule for any remaining commissions
6. Return of Company Property: Lists requirements for returning company materials, equipment, and documents
7. Confidentiality Obligations: Confirms ongoing confidentiality obligations post-termination
8. Non-Solicitation: Restates or modifies any non-solicitation provisions that survive termination
9. Client Transition: Outlines the process for transitioning clients to new representatives
10. Final Account Settlement: Addresses final expense claims and any other financial matters
11. Surviving Provisions: Identifies which provisions from the original agreement remain in effect
12. Governing Law: Confirms the applicable law and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Mutual Release: Includes mutual releases from future claims when a clean break is desired
2. Post-Termination Assistance: Details any transitional support the representative agrees to provide
3. Non-Compete Provisions: Includes or modifies non-compete obligations if applicable to the termination
4. Dispute Resolution: Specific procedures for resolving any post-termination disputes
5. Tax Implications: Addresses tax considerations if there are significant financial implications
6. Insurance Continuation: Details about maintaining or transitioning insurance coverage if relevant
7. Reference and Announcements: Guidelines for how the termination will be communicated and reference provisions
1. Schedule A - Commission Calculation: Detailed breakdown of final commission calculations and payment schedule
2. Schedule B - Company Property Inventory: List of all company property to be returned
3. Schedule C - Client List: List of clients to be transitioned and relevant contact information
4. Schedule D - Outstanding Expenses: Detailed list of approved expenses to be reimbursed
5. Appendix 1 - Transition Timeline: Detailed timeline for completing all termination-related activities
6. Appendix 2 - Release Terms: Full terms of any mutual release if applicable
Relevant legal definitions
Agreement
Original Agreement
Termination Date
Effective Date
Company
Sales Representative
Territory
Products
Services
Commission
Outstanding Commissions
Confidential Information
Intellectual Property
Company Property
Customers
Active Accounts
Pending Orders
Trade Secrets
Business Day
Force Majeure
Notice
Parties
Representatives
Transition Period
Surviving Provisions
Final Settlement
Release
Competing Business
Non-Compete Period
Non-Solicitation Period
Permitted Disclosure
Proprietary Information
Sales Records
Commission Period
Transition Plan
Original Agreement
Termination Date
Effective Date
Company
Sales Representative
Territory
Products
Services
Commission
Outstanding Commissions
Confidential Information
Intellectual Property
Company Property
Customers
Active Accounts
Pending Orders
Trade Secrets
Business Day
Force Majeure
Notice
Parties
Representatives
Transition Period
Surviving Provisions
Final Settlement
Release
Competing Business
Non-Compete Period
Non-Solicitation Period
Permitted Disclosure
Proprietary Information
Sales Records
Commission Period
Transition Plan
Clauses
Termination
Commission
Final Payment
Client Transition
Confidentiality
Non-Competition
Non-Solicitation
Return of Property
Mutual Release
Representations and Warranties
Indemnification
Survival
Notice
Assignment
Governing Law
Dispute Resolution
Severability
Entire Agreement
Amendment
Force Majeure
Data Protection
Intellectual Property
Post-Termination Obligations
Transition Assistance
Final Accounting
Waiver
Cooperation
Commission
Final Payment
Client Transition
Confidentiality
Non-Competition
Non-Solicitation
Return of Property
Mutual Release
Representations and Warranties
Indemnification
Survival
Notice
Assignment
Governing Law
Dispute Resolution
Severability
Entire Agreement
Amendment
Force Majeure
Data Protection
Intellectual Property
Post-Termination Obligations
Transition Assistance
Final Accounting
Waiver
Cooperation
Relevant Industries
Retail
Manufacturing
Technology
Pharmaceutical
Consumer Goods
Industrial Equipment
Financial Services
Telecommunications
Professional Services
Real Estate
Automotive
Construction Materials
Relevant Teams
Sales
Legal
Human Resources
Compliance
Finance
Operations
Commercial
Business Development
Contract Administration
Relevant Roles
Sales Director
Sales Manager
Regional Sales Manager
Business Development Manager
Sales Operations Manager
Legal Counsel
HR Manager
Contracts Manager
Chief Sales Officer
Account Manager
Territory Manager
Commercial Director
Compliance Officer
Chief Operating Officer
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