Minimum Due. Each contract year that this Agreement is in effect (i.e., each twelve-month period starting on the Effective Date and each anniversary thereof), RESELLER shall sell a minimum of $10,000,000 (ten million US dollars) of Products resulting in $5,000,000 (five million US dollars) payments to [*] under this contract. Shall RESELLER not have satisfied this commitment at the end of any contract year, it shall pay [*] a 15% penalty against the shortfall amount. For example, if RESELLER has only sold $8,000,000 of Products in a contract year, it shall owe [*] a 15% penalty on the $2,000,000 shortfall, or $300,000.
Appears in 2 contracts
Sources: Reseller Agreement, Reseller Agreement (Ability Inc.)