Common use of Territory Expansion Clause in Contracts

Territory Expansion. Distributor has the right to negotiate to expand the scope of the Territory on a country-by-country basis in Asia (“Expansion Option”). Distributor may do so by providing Xenogen with written notice of its intent to exercise its Expansion Option and identification of the desired countries, and the Parties thereafter will conduct good faith negotiations regarding the potential expansion of the Territory. Notwithstanding the foregoing, for each new market (i.e. Taiwan, Korea, etc.) entered into by Distributor pursuant to its Expansion Option, Distributor will commit to an initial Licensed Product placement consisting of five (5) Initial Systems in a specified timeframe to be agreed to by both Parties, but not to exceed six (6) months after the date on which Distributor’s Territory is expanded.