Common use of Minimum Performance Standards Clause in Contracts

Minimum Performance Standards. A. In consideration of the rights granted to the Distributor hereunder, the Distributor agrees to purchase Products from RBC in the aggregate minimum amount of Three Million Dollars (US$3,000,000) during each year of the Initial Term or any Renewal Term of this Agreement. B. In case the Distributor in any one year does not purchase Products from RBC in the aggregate minimum amount of Three Million Dollars (US$3,000,000), RBC may, at its option, convert the exclusive rights granted to the Distributor hereunder into non-exclusive rights, providing that RBC has fulfilled orders placed by Distributor during such year in accordance with the terms of this Agreement.