Minimum Revenue Thresholds Clause Samples
The Minimum Revenue Thresholds clause sets a baseline amount of revenue that must be achieved within a specified period for certain contractual obligations or benefits to apply. Typically, this clause is used in agreements where ongoing payments, royalties, or continued partnership depend on meeting or exceeding a set revenue figure, such as in franchise or licensing deals. By establishing a clear financial benchmark, the clause ensures both parties have aligned expectations and provides a mechanism to address underperformance, such as triggering renegotiation or termination if the threshold is not met.
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Minimum Revenue Thresholds. During each calendar year for the duration of this Agreement, the Recipient undertakes to purchase, or otherwise procure the provision of, services from the Provider (or the relevant Provider Group Company) which results in the revenues received by the Provider (when aggregated with the revenues received by each relevant Provider Group Company) from the provision of such services in any jurisdiction (the “Annual Revenue”) being equal to or exceeding the following minimum aggregate amounts (each, a “Minimum Revenue Threshold”): Zone 1 2012 The amount set forth on Schedule 2 Each calendar year 2013 to 2015 (inclusive) In each calendar year the Minimum Revenue Threshold shall be equal to (i) the Minimum Revenue Threshold for the prior calendar year, increased by (ii) the Adjusted Inflation Rate for the current calendar year 2016 The Minimum Revenue Threshold for the 2016 calendar year shall be equal to (i) the Minimum Revenue Threshold for the 2015 calendar year, increased by (ii) the Adjusted Inflation Rate for the 2016 calendar year reduced by (iii) 3% 2017 The Minimum Revenue Threshold for the 2017 calendar year shall be equal to (i) the Minimum Revenue Threshold for the 2016 calendar year, increased by (ii) CPI for the 2017 calendar (unless the [*****] Contract provides a higher applicable inflation rate, in which event such higher inflation rate shall be applied), reduced by (iii) 4% 2018 The Minimum Revenue Threshold for the 2018 calendar year shall be equal to (i) the Minimum Revenue Threshold for the 2017 calendar year, increased by (ii) CPI for the 2018 calendar year (unless the [*****] Contract provides a higher applicable inflation rate, in which (event such higher inflation rate shall be applied), reduced by (iii) 5% Each calendar year 2019 to the year of termination of the Agreement (inclusive) In each calendar year the Minimum Revenue Threshold shall be equal to (i) the Minimum Revenue Threshold for the prior calendar year, increased by (ii) CPI for the relevant calendar year (unless the [*****] Contract provides a higher applicable inflation rate, in which event such higher inflation rate shall be applied), reduced by (iii) 6% Zone 2 2012 The amount set forth on Schedule 2 Each calendar year 2013 to the year 2015 (inclusive) In each calendar year the Minimum Revenue Threshold shall be equal to (i) the Minimum Revenue Threshold for the prior calendar year, increased by (ii) the CPI for the current calendar year 2016 The Minimum Revenue Threshold...