Common use of Special Right to Terminate or Convert Agreement Clause in Contracts

Special Right to Terminate or Convert Agreement. The Distributor understands and agrees that the establishment and achievement of the Minimum Product Requirement pursuant to Section 5.1 is the essence of this Agreement and that any failure by the Distributor to satisfy its obligations under Section 5.1 will entitle the Company to terminate this Agreement upon ninety (90) days’ written notice pursuant to Section 7.2, or, alternatively, the Company will be entitled, in its sole discretion, to convert this Agreement into an entirely non-exclusive distributor agreement.

Special Right to Terminate or Convert Agreement. The Distributor understands and agrees that the establishment and achievement of the Minimum Product Requirement pursuant to Section 5.1 is the essence of this Agreement and that any failure by the Distributor to satisfy its obligations under Section 5.1 will entitle the Company to terminate this Agreement upon ninety sixty (9060) days’ written notice pursuant to Section 7.2, or, alternatively, the Company will be entitled, in its sole discretion, to convert this Agreement into an entirely non-exclusive distributor agreement.