Growth Rebate Clause Samples
A Growth Rebate clause provides a financial incentive to a buyer or distributor based on achieving specified increases in purchase volume or sales over a defined period. Typically, this clause outlines the percentage or amount of rebate that will be credited or paid once certain growth targets are met, such as exceeding prior year sales by a set margin. Its core practical function is to encourage and reward increased business activity, aligning the interests of both parties and driving higher sales performance.
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Growth Rebate. In each Processing Year, Customer shall be entitled to a rebate based on average number of Gross Active Accounts on the FDR System as of the last business day of each calendar month of the applicable Processing Year ("Growth Rebate"). The amount of the Growth Rebate shall equal the product of: (a) the Total Processing Fees (excluding Processing Fees for item numbers 6147 and 7249) for such Processing Year and (b) the applicable rebate percentage set forth in the schedule below. FDR shall calculate the Growth Rebate, if any, for each Processing Year within ninety (90) days after the end of each Processing Year and credit the amount of such Processing Credit, if any, to Customer. For Purposes of this Section, "Gross Active Accounts" shall have the meaning set forth on the CD-121 Ledger Activity Report or its equivalent. By way of example, if the average number of Gross Active Accounts for the last business day of each month during Processing Year 2 is[[* * *]] and Total Processing Fees for Processing Year 2 are [* * *], Customer will be entitled to a Growth Rebate in the amount of [[* * *]] for Processing Year 2; and if the [[* * *]] of Gross Active Accounts
Growth Rebate. If sales in a given calendar year are more than 50% higher than sales in the immediately prior calendar year (a “Growth Year”), Seller shall pay to Distributor a one-time rebate of [******]% of Distributor’s total purchase price of Products from Seller for that Growth Year within sixty days of the end of the Growth Year. Provided, however, that no calendar year may be a Growth Year if the Agreement was not continuously in effect for twelve months prior to the first day of that Growth Year.