Common use of APPOINTMENT FEES Clause in Contracts

APPOINTMENT FEES. The Company will pay the initial and renewal fees for agent appointments by the Company of duly licensed Wholesaler Agency Affiliates and Broker-Dealers and their respective Associated Persons; provided, however, (a) that if total Aggregate Annual Sales of the Contracts, as described in Section 21.a., do not exceed $60 million during any calendar year beginning after December 31, 1997, the Wholesaler will reimburse the Company for the total amount of initial or renewal fees paid by the Company during such calendar year(s), and (b) that the Company reserves the right to refuse to pay renewal fees for Representatives not meeting such minimal sales as may be agreed upon from time to time. For purposes of (b) above, the minimal sales target for Representatives shall be $25,000 per calendar year, unless the parties hereto mutually agree on a different sales target for a calendar year. Notwithstanding Clause (a) above, in calculating the amount of agent fee reimbursements, if an agent solicited products of the Company in addition to the Contracts described in this Agreement, the reimbursement otherwise required under Clause (a) will be pro-rated, as described below: The otherwise reimbursable amount shall be multiplied by a fraction, the numerator of which is the number of Xxxxxx products covered by this Agreement on the date of determination (two as of the effective date of this Agreement) and the denominator of which is the aggregate number of products of the Company and its insurance affiliates being solicited by the agent on the date of determination.