Tail Commissions Sample Clauses
A tail-commissions clause ensures that a party, typically a broker or agent, remains entitled to receive commissions on transactions that are completed after the termination or expiration of their agreement, provided those transactions result from their prior efforts. In practice, this clause applies to deals or clients that the broker introduced or was actively negotiating with before the agreement ended, often specifying a defined "tail period" during which commissions are still payable. Its core function is to protect the broker's right to compensation for work done during the contract, even if the transaction closes after the relationship with the principal has ended.
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Tail Commissions. The parties hereto acknowledge and agree that the Purchaser may elect to terminate the agreements between the Company and any one or more of the Manufacturers contemporaneously with or following the Closing. Conversely, the parties hereto acknowledge and agree that one or more of such Manufacturers may elect to terminate such agreements contemporaneously with or following the Closing. Notwithstanding any other provision of this Agreement to the contrary, the parties hereto acknowledge and agree that all commissions and other compensation received by Purchaser, the Surviving Corporation and/or their respective Affiliates after the Closing from any Manufacturers whose agreements with the Company are terminated by Purchaser, the Surviving Corporation and/or by such Manufacturers 13 18 on or within thirty (30) days after the Closing Date with respect to any Invoice or Invoices bearing a date after the Closing Date and/or in connection with or as a result of the termination of such agreement (the "Tail Commissions") shall be handled as follows:
(a) The processing of commission checks and reports with respect to the Tail Commissions shall be handled in a manner consistent with those related to the Pre-Closing Commissions in Section 2.13(a) above.
(b) Unless otherwise specified by the Sellers, Reed shall be entitled to (i) fifty percent (50%) of all such Tail Commissions received from the Manufacturers on sales by such Manufacturers to customers located in the State of Minnesota assigned to Reed ▇▇▇ (ii) forty percent (40%) of any such Tail Commissions received from the Manufacturers on sales by such Manufacturers to customers located in the United States outside of the State of Minnesota assigned to Reed.
(c) Unless otherwise specified by the Sellers, Nopp▇▇▇ ▇▇▇ll be entitled to eighty percent (80%) of all such Tail Commissions received from the Manufacturers with respect to sales by such Manufacturers to their customers located in Europe.
(d) Unless otherwise specified by the Sellers, Malo▇▇▇ ▇▇▇ll be entitled to the balance of all Tail Commissions.
Tail Commissions. 13 ARTICLE III