Termination For Non-exploitation Clause Samples
The Termination For Non-exploitation clause allows a party to end an agreement if the other party fails to actively use, commercialize, or otherwise exploit the subject matter of the contract, such as intellectual property or licensed technology. Typically, this clause sets a specific period during which exploitation must occur, and if the obligated party does not meet this requirement, the other party may terminate the agreement without penalty. Its core function is to ensure that valuable rights or assets are not left idle and that both parties remain incentivized to fulfill the contract's intended purpose.
Termination For Non-exploitation. RUSH may terminate this Agreement in its entirety with thirty (30) days notice to LICENSEE if aggregate royalties paid in any calendar year following the third anniversary of the Effective Date do not equal a minimum of fifty thousand dollars ($50,000). If aggregate royalties in such years do not equal fifty thousand dollars ($50,000), LICENSEE shall have the option of paying the difference between royalties actually paid and fifty thousand dollars ($50,000) each year to continue this Agreement for two years beyond the third anniversary of the Effective Date.