EXCLUSIVITY AND SALES PERFORMANCE Sample Clauses
The "Exclusivity and Sales Performance" clause establishes that one party is granted exclusive rights to sell or distribute certain products or services within a defined territory or market segment. Typically, this clause outlines specific sales targets or performance benchmarks that the exclusive party must meet to maintain their exclusive status, and may detail consequences if these targets are not achieved, such as loss of exclusivity or contract termination. Its core function is to incentivize strong sales performance while protecting the granting party’s interests by ensuring their products are actively promoted and sold in the market.
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EXCLUSIVITY AND SALES PERFORMANCE. A. Distributor sales commitments for the term of this agreement are as follows: July 1, 1996 - December 31, 1996 = 1,000,000.00 January 1, 1997 - June 30, 1997 = 1,000,000.00 July 1, 1997 - December 31, 1997 = 1,250,000.00 January 1, 1998 - June 30, 1998 = 1,250,000.00 July 1, 1998 - December 31, 1998 = 1,500,000.00 January 1, 1999 - June 30, 1999 = 1,500,000.00
B. If the first twelve month goal is met by Distributor, Company will grant an automatic extension for a third year.
C. If Distributor fails to meet sales commitment within any six month period, it will have the following six month period to cumulatively meet that 12 month period commitment. Failure to do so establishes the right by the Company to terminate the exclusive portion of this agreement under the terms of Paragraph II.