An Agreement (hereinafter the “Agreement”) made on the ____ (hereinafter the
“Starting Date”)
By and between
A, (hereinafter “Manufacturer”) a company organized and existing under the laws of ___with its principal place of business at _______;
And
B (hereinafter “Distributor”), a company organized and existing according to the laws of ___ with registered office at 4_________________________;
Hereinafter singularly referred to as “The Party” and collectively shortly referred to as "the Parties".
WHEREAS
- The Distributor is engaged in the development, production, sale and marketing of _________(The Products);
- Distributor, in consideration of the above, desires to obtain from the Manufacturer the right to
import the Products, label and then resell such products in the Territory (as defined below) and Manufacturer is willing to grant to Distributor such right on a exclusive basis upon the terms and subject to the conditions of this Agreement;
-Distributor has the capacity and all local permits, authorizations and approvals necessary to import, label, market and sell the Products in the Territory required by the applicable laws and regulations;
NOW THEREFORE, in consideration of the recitals above and the mutual covenants
and agreements hereinafter set forth, the Parties hereto agreed as follows:
ARTICLE 1 – Definitions
Wherever used in this Agreement the following terms shall have the following meaning:
1.01 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with, such Person, but only as long as such control exists.
1.02 “Manufacturer Technology” shall mean all know-how, technology, patents, patent applications, trade secrets, processes, data, designs, specifications, and any physical information that Manufacturer owns, controls or acquires or has or acquires a license relating to the development, manufacturing, and/or use of Products.
1.03 “Distributor Know-How” shall mean all know-how trade secrets, information that Distributor owns, controls or acquires or has or acquires regarding to the distribution of Products.
1.04 “Person” shall mean any individual, corporation , general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, or other entity or governmental body.
1.05 “Products” shall mean those Tower Cranes together with the relevant specifications (hereinafter the “Specifications”) that are listed in Exhibit no. (00) annexed hereto which might be amended in accordance with mutual written agreement between the Parties.
1.06 “Registrations” shall mean any governmental approvals and/or official sales permissions, licenses and market authorizations in Distributor’s name, which are required for the import,
labelling, distribution, promotion, marketing, offering for sale, and sale of the Products in the Territory.
1.07 “Territory" shall mean the territorial boundaries for the State of_______.
1.08 “Third Party” shall mean any Person other than the Distributor, and their respective Affiliates.
1.09 “Working Day” shall mean any day other than a day which is a Friday or Saturday or other day on which commercial banks are authorized or required to remain closed in the Territory.
ARTICLE 2 – Distribution and marketing rights
2.01 Exclusive distribution. Subject to the terms and conditions of this Agreement, the Manufacturer hereby grants Distributor an exclusive right to import, label, promote, market, offer for sale, sell or otherwise distribute the Products in the Territory. Manufacturer shall supply and Distributor shall purchase and import the Products in their finished form. Distributor accepts such appointment and agrees, for the term of and subject to the provisions of this Agreement, to use its commercially reasonable efforts to import, promote, market, offer for sale, sell and distribute the Products in the Territory.
2.02 Annual Minimum Purchase Requirement. In order to maintain the exclusivity granted in Section 2.1 above, Distributor, starting from the obtainment of the Registrations and, when applicable, the reimbursement price, shall achieve in each calendar year (i.e. January 1st/December 31st) the targets set forth in Exhibit (00) (“Annual Minimum Purchase Requirement”).
ARTICLE 3 – Obligations
3.01 Distributor Costs and Expenses. Distributor shall be responsible for all costs and expenses it incurs in implementing and meeting its obligations under this Agreement, including hiring and compensating its sales team, preparing its advertising materials, making labelling changes, and all other costs incurred for the distribution of Products. Manufacturer shall be responsible for all costs and expenses it incurs in implementing and meeting its obligations under this Agreement.
3.02 Products Handling. Distributor shall handle and store the Products in compliance with all applicable laws, rules and regulations.
3.03 Compliance with applicable laws. Distributor agrees during the term of this Agreement to comply with all laws and regulations applicable to Distributor’s purchase, storage, record keeping and sale of the Products. It is agreed that Distributor shall be responsible for complying with any legislation or regulation governing the importation of the Products in the Territory and for the payment of duty and taxes, if any.
3.04 Intellectual Property. Manufacturer hereby grants to Distributor a non-exclusive, nontransferable, and royalty-free right and license to use Manufacturer’s Technology in connection with the sale, distribution, promotion, and marketing of the Products pursuant to this Agreement. All intellectual property rights, all names, trademarks, copyrights, patents, trade secrets, know-how relating to the Products are and shall remain the property of Manufacturer.
3.05 Infringement by Third Parties of Manufacturer Technology. Distributor shall promptly notify the Manufacturer of its knowledge of any actual or potential infringement by a Third Party of any rights relating to Manufacturer Technology and shall provide any available evidence of such infringement. Manufacturer shall have the right, but not the obligation, in its sole judgment and discretion and at its cost and expense, to bring legal action against such Third Party. At the request of Manufacturer, Distributor, at its own expense, shall provide reasonable assistance in any such legal action, including without limitation, permitting use of Distributor’s name in all legal actions and signing all necessary documents.
3.06 Infringement of Trademarks. Distributor shall promptly notify upon its awareness the Manufacturer of any use by any Third Party of Trademarks or Manufacturer’s trade names or any use by such Third Parties of similar marks which may constitute an infringement the trademarks in the Territory.
3.07 Termination of Use. Upon expiration or termination of this Agreement, Distributor shall use the trademarks and Manufacturer’s trade name only for the purpose of selling the stock (if any).
ARTICLE 4 – Ordering Forecasts, Order procedures, Prices, Shipment and
Packaging
4.01 Order procedures. The Distributor shall order the required products in accordance with an email sent from the following email addresses: a… /b. ……. to the following email addresses: a. ….. / b. ……. .
The Manufacturer shall confirm the supplying of the requested products within 48 working hours from receiving the above mentioned email. This confirmation shall be in accordance with an email sent to the same senders and it shall contain the date of importing the products, the price and any other information that seems to be necessary. Upon the shipment of the products Manufacturer shall provide the Distributor immediately with the bill of lading, insurance policy and any other documents which seems to be important.
4.02 Cancellation. The Distributor shall be allowed to cancel any order as long as the order is not shipped.
4.03 Prices. The Manufacturer shall supply and Distributor shall purchase and import Products in the Territory at the price set forth in Exhibit 00 (“Purchase Price”). Purchase Price may be subject to annual revisions by Manufacturer, with notification to Distributor at least ninety (90) days before the end of the preceding calendar year. Such annual Purchase Price revisions shall be discussed in good faith and agreed in writing between the Parties. In order to avoid any doubt Manufacturer shall not amend, vary and/or change the agreed prices unless it is agreed mutually in writing with the Distributor.
The Purchase Price will be, and all sums shall be payable, in USD.
4.04 Shipment. The Products shall be delivered on CIF ___ basis. The Manufacturer shall be obliged to get an insurance policy from a ________national insurance company covering all perils.
4.05 Payment Terms. Manufacturer will invoice Distributor upon shipment of each purchase order to Distributor. Distributor shall pay all amounts due to Distributor by wire transfer and payments shall be made within sixty (60) days from the date of the relevant invoice. If Distributor fails to make any payment on the due date then, without prejudice to any other right or remedy available to Manufacturer, Manufacturer shall be entitled to cancel the order and/or suspend any further deliveries to Distributor;
4.06 Resale price. Distributor shall add (00)% on the price of the products in order to determine the resale price. This percentage shall be increased and/or decreased in accordance with the Distributor’s sole discretion and judgment.
4.07 Delivery. Manufacturer will use its commercially reasonable efforts to deliver the
Products on the date determined by Distributor. Manufacturer shall be fully responsible for any loss and/or damage caused due to delay in supplying the products if such delay was due to the Manufacturer’s willful misconduct or grossly negligent conduct.
4.08 Delay Penalty. If the Manufacturer did not deliver the order within the agreed date, the Distributor shall be entitled to impose (00) % from the total price of the products per each day or a part of day as a delay penalty.
ARTICLE 5 – Promotion
5.01 Distributor shall use its commercially reasonable endeavors to promote the sale of the Products in the Territory by using adequate promotional efforts.
5.02 Manufacturer shall provide Distributor with advertising materials in English. It is full responsibility of Distributor to make sure that all sales and marketing practices and materials are in line with the local regulations.
5.03 Manufacturer may, in its sole discretion and at its own cost, provide training for the Distributor’s sales personnel representing the Products with respect to the promotion and use of the Products.
5.04 Distributor and Manufacturer will have meetings at least once per year to discuss and review Distributor’s sales and marketing activities relating to the Products.
ARTICLE 6 – Exclusivity
6.01 The Distributor shall be the exclusive distributor for the Manufacturer’s products in the territory. The Manufacturer shall not be allowed to appoint another agent, distributor, and buyer or sell the products to any persons.
ARTICLE 7 – Stock, Product Warranty and Product Returns
7.01 Upon early termination of this Agreement meanwhile it was not due to the Distributor’s default and the Distributor still has stocks from the products, thus it has the option in its sole discretion and judgment either to return the products to the Manufacturer or keep it for the purpose of selling it.
7.02 If the Distributor selects first option thus Manufacturer shall bear the cost of shipping the products to its origin or any other destination determined by the Manufacturer.
7.03 Product Warranty. Each of the Products carries a warranty as set out in Exhibit no. (00), each warranty is subjected to the terms and conditions as set out in this Section no. 7 and as set out in Exhibit no. (00).
7.04 Product Returns. Distributor shall be entitled to return any products which are not compatible with the specifications and requirements within 7 working days from finding out the defect and that is not compatible with the agreed specifications and requirements. The Manufacturer shall bear the expenses for shipment of these products and shall replace it within 7 working days from receiving the notification stated the aspects of default (Notice of Default).
7.05 Determination of Warranty Coverage Period. For purposes of determining whether a requested service on a Product is still within the warranty period, Manufacturer will track the applicable warranty periods and maintain the records based upon the shipments made to Distributor. The warranty period shall be deemed to have begun on the date Manufacturer shipped such Product to the Distributor.
7.06 The obligations of the Manufacturer under the warranty policy shall survive any termination or expiration of this Agreement.
7.07 The Manufacturer shall provide the Distributor with the requested spare parts even after the early termination or expiration of this Agreement.
ARTICLE 8 – Installation, Applications, Service
8.01 Installation and Applications. Distributor shall be responsible for installation of the Products in the Territory. Such installation shall be performed in accordance with the instructions supplied by the Manufacturer from time to time and in accordance with all applicable laws. Distributor shall also be responsible for applications/customer training as it relates to the Products. Manufacturer shall be responsible to provide Distributor free of charge with an initial technical training and subsequently shall provide regular information on updates. All costs related to the Distributor personnel for such training will be borne by Distributor. Manufacturer may also provide at its own discretion further additional training upon request of Distributor.
8.02 Service. The servicing, repair and maintenance of the Products shall be provided with the modalities set forth in Exhibit 00.
ARTICLE 9 - Representations and Warranties
9.01 Representations of Distributor. Distributor represents and warrants to Manufacturer that:
9.1.1 Corporate Power. Distributor is a corporation duly organized, validly existing and in good standing under the laws of the State of_____, and has all requisite power, capacity and authority to enter into and perform this Agreement and to carry out all the duties and obligations hereof;
9.1.2 Due Authorization. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of Distributor, and the person executing this agreement on behalf of Distributor has been duly authorized to do so by all requisite corporate action;
9.1.3 Binding Agreement. This Agreement is and shall be a legal and valid obligation binding upon Distributor, and enforceable against Distributor in accordance with its terms.
9.1.4 No Conflict. The execution, delivery and performance of this Agreement by Distributor do not conflict with any agreement, instrument or understanding, oral or written, to which Distributor is a party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it.
9.02 Representations of Manufacturer. Manufacturer represents and warrants to Distributor that:
9.2.1 Corporate Power. Manufacturer is a corporation duly organized, validly existing and in good standing under the laws of ـــــــــ. ----- Company have all requisite power and authority to enter into and perform this Agreement and to carry out all the duties and obligations hereof.
9.2.2 Due Authorization. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of Manufacturer, and the person executing this agreement on behalf of Manufacturer has been duly authorized to do so by all requisite corporate action.
9.2.3 Binding Agreement. This Agreement is and shall be a legal and valid obligation binding upon Manufacturer, enforceable against Manufacturer in accordance with its terms.
9.2.4 No Conflict. The execution, delivery and performance of this Agreement by Manufacturer do not conflict with any agreement, instrument or understanding, oral or written, to which Manufacturer is a party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it.
9.03 No Warranties by Distributor. Distributor agrees not to make any warranties, express or implied, with respect to the Products without the prior written authorization of Manufacturer.
9.04 No Waiver. Manufacturer shall not waive all or part of its obligations and commitments under this Agreement unless agreed in writing with the Distributor.
9.04 Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE
TO THE OTHER PARTY FOR SPECIAL, INDIRECT, PUNITIVE, INCIDENTAL OR
CONSEQUENTIAL LOSS OR DAMAGE UNLESS SUCH DAMAGES WERE DUE TO INTENTIONAL FAULT FROM THE PARTY OR HIS SEVERE NEGLIGENT.
ARTICLE 10 - Indemnification and Insurance
10.01 By Manufacturer. Manufacturer shall and does hereby agree to indemnify and hold harmless Distributor and its parent companies, subsidiaries, and Affiliates and their respective officers, directors, employees, managers, agents, successors and assigns against all suits, liabilities, losses, claims, damages, costs and expenses (including reasonable legal fees and costs) incurred by them resulting from:
(a) any negligence in the manufacture of the Products against a proper and correct utilization of the Products themselves.
(b) any breach by Manufacturer of its obligations under this Agreement; or
(c) any grossly negligent, willful or unlawful act or omission of Manufacturer or any of its officers, directors, shareholders, employees or agents; or
(d) any injury or death of any person, directly arising from damages alleged to arise from the quality and manufacture of the Products, unless such damages arise from defects detectable by Distributor through a diligent Product’s control as set forth in Section.
10.02 This indemnification shall be valid provided that Distributor gives Manufacturer prompt notice of every complaint, claims, lawsuits concerning the Products, keeps Manufacturer fully informed of the status of each, and gives Manufacturer reasonable access to its records pertaining to each such complaint, claim or lawsuit.
ARTICLE 11 – Confidentiality
11.1n connection with The Information of The Project “The receiver” irrevocably agree that it shall not disclose or otherwise reveal directly or indirectly to a third party any confidential information provided by one party to the other or otherwise acquired, particularly contract terms, product information or manufacturing processes, prices, fees, financial agreement, schedules and information concerning the identity of the sellers, producers, buyers, lenders, borrowers, brokers, distributors, refiners, manufacturers, technology owners, or their representative and specifically individuals names, addresses, principals, or telex/fax/telephone numbers, references product or technology information and/or other information advised by one party(s) to be one another as being confidential or privileged without prior specific written consent of the party(s) providing such information.
ARTICLE 12 - Term and Termination
12.01 Term and Renewal. The Agreement shall become effective as of the date of its signing stated herein above and shall be valid for (00) …. years corresponding to 27th May 200000 (hereinafter “Initial Term”). Upon expiration of the Initial Term, the Agreement may be extended by mutual agreement between the Parties.
12.02 Termination for cause. If either of the Parties should breach any term or fail to fulfill any obligation under this Agreement, the other Party shall have the right to notify the defaulting Party by registered letter to cure its breach or to fulfill its obligation under penalty of termination of this Agreement. If the defaulting Party shall not have cured its breach or fulfilled its obligation within forty-five(45) Working Days from the receipt of said registered letter, this Agreement shall automatically terminate automatically upon sending a Termination Notice to the other Party, without prejudice to the other rights of either Party under the Agreement.
12.03 In addition to what provided under Section 12.02, each Party shall have the right to terminate at any time this Agreement by giving a thirty (30) day advance written notice to the other Party, should any of the following conditions arise:
a) Distributor does not sell any of the Products in the Territory for more than one hundred and eighty (180) consecutive days;
b) The other Party transfers or assigns its concern or rights on it to a Third Party in a violation of the provision of this Agreement;
c) The other Party becomes insolvent or goes into bankruptcy, liquidation, receivership or into any comparable proceedings for settlement of debts;
d) Governmental provisions or laws of nationalization, confiscation and requisition or anyhow preventing the performance of the obligations arising from the present Agreement are issued in the Territory;
f) The Parties do not reach an agreement on the annual Purchase Price revisions
ARTICLE 13 - Force Majeure
13.01 If, in the performance of this Agreement, any obligation hereunder is prevented, restricted or interfered with by reason of any cause beyond the control of the affected Party, including but not limited to: war or hostility; crime, tort or other unlawful act; act of any government or agency; imposition of any judgment, which prevents the commercialization of the Products; subdivision or branch thereof; strikes or other labour disputes; or accident, fire, explosion, flood, storm or other act of God; fuel, power, inventory or machinery; technical failure; or, in general, any other contingency whatsoever (whether similar or dissimilar to those set forth herein), the Party so affected, upon prompt given notice to the other Party, shall be excused from such performance to the extent of such prevention, restriction or interference, provided that the Party so affected shall use its commercially reasonable efforts to avoid or remove such cause or causes of non-performance and shall continue performance hereunder whenever such cause is removed. If the Party so affected cannot resume performance within ninety (90) days the other Party shall have the right to terminate this Agreement.
ARTICLE 14 – Relationship of Parties
14.01 This Agreement does not, and shall not be construed to; create a relationship of joint venture, partnership or principal and agent between Manufacturer and Distributor. Party neither has nor may exercise any authority, express, implied or apparent, to act on behalf of or as an agent of the other Party for any purpose, and shall take no action which might tend to create an obligation on behalf of Manufacturer. Each Party is, and shall at all times remain an independent contractor responsible for all obligations and liabilities of, and for all loss or damage arising out of its business activities.
ARTICLE 15 – Non-Assignment
15.01 Neither Party shall assign or transfer this Agreement or any of its rights, interest or obligations under this Agreement to any Third Parties whether by recourse to merger and acquisition, organization change and/or transfer operations or otherwise, without the prior written consent of the other Party.
ARTICLE 16 - Applicable Law and Arbitration
Unless the Parties agreed otherwise in writing, Qatari courts shall have the exclusive jurisdiction to settle any dispute that may arise from the implementation of this Agreement and Qatari Laws shall be applicable.
ARTICLE 17– Language
All communication between Parties shall be in English.
ARTICLE 18 – Notices
18.01 All notices, requests, consents and other communications hereunder shall be transmitted in writing and shall be delivered by hand, registered mail (postage prepaid with registry return receipt), overnight or air courier, telegraph, facsimile or other electronic means, and shall be deemed so delivered at the time delivered by hand, one (1) Working Day after transmission by telegraph, facsimile or other electronic means, four (4) Working Days with air courier, or on the date of signing of the registry return receipt.
18.02 All notices and other communications hereunder shall be addressed as follows:
To
Address:
Facsimile No.:
Email Address:
Attention:
To
Address:
Facsimile No.:
Email Address:
Attention:
Either Party may change his or its address by giving notice of such change of address to the other Party.
ARTICLE 19 - Severability
19.01 Severability. In the event that any term or provision of this Agreement is held to be invalid, void, illegal or unenforceable in any respect, the Agreement shall be enforced in accordance with its terms and shall not in any way be affected or impaired thereby. In the event that any term or provision of this Agreement is held to be unreasonable, the same shall not fail, but shall be deemed amended only to the extent necessary to render it reasonable and the Parties agree in writing to be bound by the amended term or provision.
ARTICLE 20 – Entire Agreement and Acknowledgments
20.01 Each Party acknowledges that this written Agreement embodies the entire agreement between the Parties and that in entering into this Agreement. This Agreement shall not be considered as extended, cancelled or amended in any respect unless done so in writing by means of formal contractual Amendments to be executed by both the contracting Parties.
LIST OF EXHIBITS
Exhibit Products and Specifications
Exhibit Trademarks
Exhibit Annual Minimum Purchase Requirement
Exhibit Products’ control procedures
Exhibit Purchase Price
Exhibit Warranty
Exhibit Servicing and Repairs