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DISTRIBUTEAGREEMENT
Thiscontractismadeasofthe___dayof___,byandbetween___(Supplier),a___organizedandexistingunderthelawsof___,withitsprincipalplaceofbusinessat___,and___(Distributor),a___organizedandexistingunderthelawsof___,withitsprincipalplaceofbusinessat______
ContractNo.:
PartyA:
PartyB:
1.Definition
Therearethefollowingtermsinthiscontract:
(1)“Accessories”
AccessoriesmaybedeletedfromoraddedtoAttachment___andSuppliermaychangethecontentsofthecontract,bymailingwrittennoticeofsuchchangestoDistributor.Eachchangeshallbecomeeffectivewithin___daysfollowingthedatenoticethereofismailedtoDistributor.
(2)“Goods”
WhichmeansthoseitemsdescribedinAttachment___.GoodsmaybedeletedfromoraddedtoAttachment___,whichmaybechangedbySupplieratitssolediscretionatanytimebymailingwrittennoticeofsuchchangestoDistributor.Eachchangeshallbecomeeffectivewithin___daysfollowingthedatenoticethereofismailedtoDistributor.
(3)“SpareParts”
WhichmeansallpartsandcomponentsoftheGoodsand/oranyspecialdevicesusedinconnectionwiththemaintenanceorservicingoftheGoods.SupplierdeclaresthatacompletelistofSparePartsissetforthinAttachment___.SparepartsmaybedeletedfromoraddedtoAttachment___andtheirspecificationsanddesignmaybechangedbySupplieratitssolediscretionatanytimebymailingwrittennoticeofsuchchangestoDistributor.Eachchangeshallbecomeeffectivewithin___daysfollowingthedatenoticethereofismailedtoDistributor.
(4)“Trademark”
Whichmeansanytrademark,logo,orser-vicemark,whetherornotregistered,usedtorep-resentordescribetheProductsofSupplier,assetforthinAttachment______
.
2.AppointmentofDistributor
SupplierherebyappointsDistributorasSupplier’sExclusiveDistributorofProductsintheTerritory.ItisunderstoodthatSuppliercanlaw-fullypreventitsdistributorslocatedelsewherefromsupplyingProductsforsaleorusewithintheTerritoryandthatithasnoobligationtodoso.
3.RelationshipbetweenBothParties
DistributorisanindependentcontractorandisnotthelegalrepresentativeoragentofSupplierforanypurposeandshallhavenorightorauthority(exceptasexpresslyprovidedinthisAgreement)toincur,assumeorcreateinwritingorotherwise,anywarrantyonthepartofSupplier.SuppliershallnotexerciseanycontroloveranyofDistributor’semployees,allofwhoareentirelyunderthecontrolofDistributor.DistributorshallberesponsiblefortheactsandomissionsofDistributor’semployees.
Distributorshall,atitsownexpense,duringthetermofthisAgreementandanyextensionthereof,maintainfullinsuranceunderanyLaborLawseffectiveinthestateorotherapplicablejurisdictioncoveringallpersonsemployedbyandworkingforitinconnectionwiththeperformanceofthisAgreement,anduponrequestshallfurnishSupplierwithsatisfactoryevidenceofthemaintenanceofsuchinsurance.
4.SaleofProducts
DistributorshalluseitsbesteffortstodistributetheProductsandtofullydevelopthemarketfortheProductswithintheTerritory.Thepar-tieshaveconsultedtogetherandnowagreethatifDistributor’sbesteffortsareusedasprovidedinthisSection,aminimumof___Products(AnnualMarketPotential)willbepurchasedanddistributedintheTerritoryduringthefirstyearofthisAgreement.Atthebeginningofeachsub-sequentyearthepartieswillconsulttogetheringoodfaithandagreeontheAnnualMarketPotentialapplicabletothatyear;provided,however,thatiftheycannotagree,theAnnualMarketPotentialfortheimmediatelyPrecedingyearwillapplytothecurrentyear.
5.Advertisement
Distributorshallbeentitled,duringthetermofthedistributorshipcreatedbythisAgreementandanyextensionthereof,toadvertiseandholditselfoutasanauthorizedDistributoroftheProducts.AtalltimesduringthetermofthedistributorshipcreatedbythisAgreementandanyextensionthereof,DistributorshallusetheTrade-marksinalladvertisementsandotheractivitiesconductedbyDistributortopromotethesaleoftheProducts.DistributorshallsubmitsamplesofallproposedadvertisementsandotherpromotionalmaterialsfortheProductstoSupplierforapprovalandDistributorshallnotuseanysuchadvertisementsorpromotionalmaterialswithouthavingreceivedthepriorwrittenconsentofSuppliertodoso.Distributorshallnot,pursuanttothisAgreementorotherwise,haveoracquireanyright,titleorinterestinortoSupplier’sTrade-marks.
6.DistributorSales,ServiceandStorageFacilities
Distributorshall,atitsexpense,engageandmaintainasales,serviceandpartshandlingorganizationintheTerritory,staffedwithsuchexperiencedpersonnelasarenecessarytoenabledistributortoperformitsobligationsunderthisAgreement.
Distributorshall,atitsexpense,maintainfacilitiesandpersonnelintheTerritorythatwillenableitpromptlyandsatisfactorilytoperform,atareasonableprice,allinspection,maintenanceandothernecessaryservicingofProductssoldbyDistributor.ToassistDistributorinthedischargeofthisserviceandmaintenancefunction,Suppliershallprovideserviceandmaintenancetraining,withoutcharge,toanyreasonablenumberofDistributor’spersonnelasDistributorshalldesignate.
Distributorshall,atitsexpense,atalltimesstoreandmaintainitsinventoryofProductsinaccordancewithcurrent,applicableinstructionsissuedbySupplierfromtimetotime.Distributorshall,atitsexpense,deliveronecopyofSupplier’scurrent,applicableoperationandmaintenancemanualtoeachCustomeratthetimeofsaleand,atthattime,Distributorshall,atitsexpense,fullyexplainanddemonstratetothecustomerthepropermethodofoperatingandmaintainingtheProducts.
DistributorshallmailtoSupplier,duringthetermofthedistributorshipcreatedbythisAgreementandanyextensionthereof,promptwrittennoticeoftheaddressofeachlocationatwhichproductsarestored,andtheaddressofeachfacilityestablishedbyDistributortosellandservicetheProducts.Suppliermay,throughitsdesignatedagent,inspectallsuchlocationsandfacilitiesandtheoperationsconductedthereinatanytimeduringnormalbusinesshours.
7.SparePartsandAccessories
DistributorshallkeepinstockanadequatesupplyofSparePartsandAccessoriesfortheservicingofGoods.NoSparePartsorAccessoriesnotmanufacturedbySuppliershallbeusedinconnectionwiththeGoodsunlesstheyhavebeenapprovedinwritingbySupplier
8.ConfidentialInformation
WrittenTechnicaldata,drawings,plansandengineeringintechnicalinstructionspertainingtotheProductsarerecognizedbyDistributortobesecretandconfidentialandtobethepropertyofSupplier.ThoseitemsshallatalltimesandforallpurposesbeheldbyDistributorinaconfidentialcapacityandshallnot,withoutthepriorwrittenconsentofSupplier,(i)bedisclosedbyDistributortoanyperson,firmorcorporation,exceptingthosesalariedemployeesofDistributorwhoarerequiredtoutilizesuchitemsinconnectionwiththesale,inspection,repairorservicingofProductsduringthetermofthedistributorshipcreatedbythisAgreementoranyextensionthereof,or(ii)becopiedorusedbyDistributor,itsemployeesoragentsatanytimefollowingtheexpirationorterminationofthisAgreementoranyextensionthereof.SuppliermayrequireasaconditiontoanydisclosurebyDistributorpursuanttothisSectionthatanysalariedemployeetowhomdisclosureistobemadesignaconfidentialityagreement,enforceablebySupplier,containingtermssatisfactorytoSupplier.
9.PurchasingProduct
DistributorshallpurchaseitsrequirementsfortheProductsfromSupplier.SuchrequirementsshallincludepurchasingandmaintaininganinventoryofProductsthatissufficienttoenableDistributortoperformitsobligationshere-under,andatleast___demonstrationmodeloftheGoodsandAccessories.
SuppliershallsupplytoDistributorsufficientProductstoenableDistributortomeetthefulldemandforProductsintheTerritory.AllordersforProductstransmittedbyDistributortoSuppliershallbedeemedtobeacceptedbySupplieratthetimesuchordersarereceivedbySuppliertotheextentthattheyareincompliancewiththetermsofthisAgreementandSuppliershallperforminaccordancewithallacceptedorders.Suppliershallconfirmitsreceiptandacceptanceofeachorderwithin___daysofreceiptoftheorder.
10.BusinessProcedure
EachorderforProductsissuedbyDistributortoSupplierunderthisAgreementshallidentifythatitisanorderandshallfurthersetforththedeliverydateordatesandthedescriptionandquantityofProductswhicharetobedeliveredoneachofsuchdates.AnorderforProductsshallnotprovideadeliverydatelessthan___daysafterthedatethatorderisdeliveredtoSupplier.
11.Termination
Anypartywantstoterminatetherelationship,oranycancellationofordersbyDistributorshallbeinwriting,IfDistributorcancelsanorder,whichhasbeenacceptedbySupplier,DistributorshallreimburseSupplierforanycostincidenttosuchorderincurredbySupplierpriortothetimeitwasinformedofthecancellation.
12.PurchasePrice
ThepricesforGoods,andanydiscountsapplicablethereto,aresetforthinAttachment___.ThepricesforAccessories,togetherwithanydiscountsapplicablethereto,aresetforthinAttachment___.ThepricesforSpareParts,togetherwithanydiscountsapplicablethereto,aresetforthinAttachment___.AllpricesareFOB(theDeliveryPoint).IfthepriceforanyProductisnotsetforthonAttachmentandDistributorneverthelessorderssuchaProductfromSupplier,thepartiesherebyevidencetheirintentiontherebytoconcludeacontractforthesaleofthatProductatareasonablepricetobedeterminedbythePartiesmutuallynegotiatingingoodfaith.
13.PriceChanges
Supplierreservestheright,initssolediscretion,tochangepricesordiscountsapplicabletotheProducts.SuppliershallgivewrittennoticetoDistributorofanypricechangeatleastdayspriortotheeffectivedatethereof.ThepriceineffectasofthedateofDistributor’sreceiptofnoticeofsuchpricechangeshallremainapplicabletoallordersreceivedbySupplierpriortothateffectivedate.
14.Packing
Suppliershall,atitsexpense,packallProductsinaccordancewithSupplier’sstandardpackingprocedure,whichshallbesuitabletopermitshipmentoftheProductstotheTerritory;provided,however,thatifDistributorrequestsamodificationofthoseprocedures,SuppliershallmaketherequestedmodificationandDistributorshallbearanyreasonableexpensesincurredbySupplierincomplyingwithsuchmodifiedprocedureswhichareinexcessoftheexpenseswhichSupplierwouldhaveincurredinfollowingitsstandardprocedures.
15.Delivery
ThetitletoandriskoflossofProductsshallpassfromSuppliertoDistributorattheDeliveryPoint.
SuppliershallberesponsibleforarrangingalltransportationofProducts,butifrequestedbySupplier,Distributorshall,atSupplier’sexpense,assistDistributorinmakingsucharrangements.
16.InspectionandAcceptance
PromptlyuponthereceiptofashipmentofProducts,Distributorshallexaminetheshipmenttodeterminewhetheranyitemoritemsincludedintheshipmentareinshortsupply,defectiveordamaged.Within___daysofreceiptoftheshipment.DistributorshallnotifySupplierinwri
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