Common use of Obligations of the Distributor Clause in Contracts

Obligations of the Distributor. The parties agree that during the term of this Agreement the Distributor shall: (4.1) advertise and promote the sale of the Products in the Territory and to make regular and sufficient contact with the present and potential customers of the Distributor; (4.2) anticipate requirements and order promptly when required for the purpose of facilitating shipments from Company at minimum transportation costs; (4.3) maintain adequate sales and warehouse facilities and sufficient stock of the Products to ensure prompt service to customers of the Distributor; (4.4) promptly comply with the terms of sale for any of the Products as herein provided or as provided in any invoice provided by the Company; (4.5) promptly pay the sale price as herein provided; (4.6) honor any warranty offered by the Company on the Products; (4.7) provide an annual marketing plan covering the Distributor’s Territory prior to the beginning of each new calendar year; (4.8) maintain minimum levels of sales on an annualized basis as agreed; (4.9) maintain an annual sales growth after year one of at least 15% annually; (4.10) provide at the company’s request sales data containing end customer names and locations in addition to annual sales levels by customer along with average selling prices of the Product and any other detailed sales information the Company may request; and (4.11) refrain from selling competitive products.