Performance Agreement Template

This performance agreement template has 6 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our performance agreement template:

PERFORMANCE AGREEMENT This Performance Agreement (the "Agreement") is made and effective this [DATE], BETWEEN: [DISTRIBUTOR NAME] (the "Distributor"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SUPPLIER NAME] (the "Supplier"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Supplier engages the Distributor to distribute its products (the "Products") in [TERRITORY]; IT IS AGREED THAT: Term The term of this Agreement shall be for a period of [NUMBER OF YEARS] years commencing on [DATE], and terminating on [DATE], subject to any renewal of the Agreement pursuant to Section 8 hereof and subject to earlier termination of this Agreement pursuant to Section 7 hereof (the "Term"). Either Party may terminate this Agreement at the end of the Term by providing written notice to the other Party at least [NUMBER OF MONTHS] months prior to the end of the Term. PERFORMANCE TARGETS 2.1 The Distributor agrees to meet the following sales quotas for the Products within the Territory: Year 1: [AMOUNT] Year 2: [AMOUNT] Year 3: [AMOUNT] 2.2 The Supplier shall conduct performance reviews every [NUMBER OF MONTHS] months to assess the Distributor's progress in meeting the sales quotas. The Distributor agrees to provide all necessary sales data and reports to the Supplier for these reviews. 2.3 The Parties may mutually agree to adjust the sales quotas based on market conditions, new product launches, or other relevant factors. CONSEQUENCES FOR FAILURE TO MEET TARGETS 3.1 Probationary Period: If the Distributor fails to meet the sales quota for any given year, the Supplier may place the Distributor on a probationary period of [NUMBER OF MONTHS] months. During this period, the Distributor must meet the performance targets set by the Supplier to avoid further consequences. 3.2 Termination: If the Distributor fails to meet the performance targets during the probationary period, the Supplier may terminate this Agreement upon [NUMBER OF DAYS] days' written notice to the Distributor. In the event of termination, the Distributor shall return all Products and marketing materials to the Supplier and shall cease all distribution activities. 3.3 Remediation Plan: The Supplier may, at its discretion, provide a remediation plan to help the Distributor meet the performance targets during the probationary period. SUPPORT AND TRAINING 4.1 The Supplier agrees to provide the Distributor with the necessary support to achieve the performance targets, including marketing materials, product training, and sales strategies. 4.2 The Supplier shall conduct training programs for the Distributor's sales team as needed to ensure they are fully knowledgeable about the Products and effective sales techniques. 4.3 The Supplier will provide ongoing technical support and product updates to assist the Distributor in achieving the performance targets. DISTRIBUTOR'S OBLIGATIONS 5.1 The Distributor shall use its best efforts to promote and sell the Products within the Territory. The Distributor shall maintain a competent sales force and shall conduct its business in a manner that reflects favorably on the Products and the Supplier. 5.2 The Distributor shall comply with all applicable laws and regulations in the Territory in relation to the distribution and sale of the Products. 5.3 The Distributor shall promptly inform the Supplier of any issues or challenges faced in the distribution of the Products and work collaboratively with the Supplier to resolve them. SUPPLIER'S OBLIGATIONS 6.1 The Supplier shall ensure the availability of the Products to the Distributor in a timely manner to meet the performance targets set forth in this Agreement. 6.2. The Supplier shall maintain the quality standards of the Products as agreed upon by both Parties and ensure that the Products comply with all relevant laws and regulations. 6.3. The Supplier shall provide marketing and promotional materials to support the Distributor's sales efforts. TERMINATION 7.1 Termination for Cause: Either Party may terminate this Agreement for cause if the other Party breaches any material term of this Agreement and fails to cure such breach within [NUMBER OF DAYS] days after receiving written notice of the breach. 7.2. Termination without Cause: Either Party may terminate this Agreement without cause by providing [NUMBER OF DAYS] days' written notice to the other Party. In such event, the Distributor shall return all Products and marketing materials to the Supplier and shall cease all distribution activities. 7.3. Return of Property: Upon termination of this Agreement for any reason, the Distributor shall promptly return to the Supplier all Products, marketing materials, and any other property belonging to the Supplier. RENEWAL 8.1 The Supplier may offer to renew this Agreement in accordance with the terms and conditions hereof for further periods of [NUMBER OF YEARS] years each by giving notice in writing to the Distributor not later than [NUMBER OF MONTHS] months prior to the expiry of the Term or the renewal thereof. Such notice shall include the Supplier's proposals for any changes in terms or conditions of this Agreement. 8.2