This Annex IV is applicable only if the parties have fixed the minimum target by filling in one of the alternative figures hereafter.

The Agent undertakes, during each year, to transmit orders for not less than:

If at the end of the year the above Guaranteed Minimum Target has not been attained, for reasons other than those for which the Principal can be held responsible, subject to giving one month’s notice, the Principal shall be entitled at its choice, to terminate this contract, or to cancel the Agent’s exclusivity, or to reduce the extension of the Territory. This right must however be exercised in writing not later than two months after the end of the year in which the Guaranteed Minimum Target has not been attained.

Unless the parties hereafter agree on different figures, the Guaranteed Minimum Target indicated above shall also be applicable for each year of the duration (including the case of renewal) of this contract.

4
If this alternative is chosen, care should be taken in order to avoid that the agreed sum is automatically reduced (from year to year) as a consequence of inflation, e.g. by providing a yearly increase.