Changes Proposed Clause Samples

Changes Proposed. If Distributor desires to establish, change or eliminate any Distributorship Premises or change the use of any Distributorship Premises, it shall advise Company in writing and obtain prior written approval of any such change. Any such change approved by Company shall be reflected, when implemented, in a new and superseding Distributorship Locations and Premises Addendum. Company and Distributor acknowledge that Company and Affiliated Companies are contemplating making changes in the manner in which Parts are distributed an in the appointment and support of dealers. Changes which may occur that could affect Distributor operations include pricing changes, functional compensation and specified service or support functions. If a Distributor in the exercise of reasonable business judgment determines that such a change causes a financial deterioration of a Distributor Location and Distributor requests permission of Company to close or downsize the affected Distributor Location, Company will not unreasonably withhold such approval. If Distributor does not obtain such prior written approval, Company may terminate this Agreement. In any event, Company may exercise its right under Article 2.3.2 to modify the Area of Responsibility or appoint an additional Distributor.