Distribution Agreement.docx
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DistributionAgreement
DISTRIBUTIONAGREEMENT
ThisDistributionAgreement(the”Agreement”),ismadeandeffective[DATE],
BETWEEN:
Biztree (the“Company”),acorporationorganizedandexistingunderthelawsofthe[State/Province]of[STATE/PROVINCE],withitsheadofficelocatedat:
[YOURCOMPLETEADDRESS]
AND:
[DISTRIBUTORNAME] (the"Distributor"),anindividualwithhismainaddresslocatedat OR acorporationorganizedandexistingunderthelawsofthe[State/Province]of[STATE/PROVINCE],withitsheadofficelocatedat:
[COMPLETEADDRESS]
WHEREAStheCompanywishestomarkettheProductsdescribedinScheduleA(the"Products")throughtheDistributor,itisagreedasfollows:
1. DEFINITIONS
WhenusedinthisAgreement,thefollowingtermsshallhavetherespectivemeaningsindicated,suchmeaningstobeapplicabletoboththesingularandpluralformsofthetermsdefined:
“Agreement”meansthisagreement,theSchedulesattachedheretoandanydocumentsincludedbyreference,aseachmaybeamendedfromtimetotimeinaccordancewiththetermsofthisAgreement;
“Accessories” meanstheaccessoriesdescribedinExhibitAattachedhereto,andincludesanyspecialdevicesmanufacturedbyCompanyandusedinconnectionwiththeoperationoftheGoods.
AccessoriesmaybedeletedfromoraddedtoExhibitAandtheirspecificationsanddesignmaybechangedbyCompanyatitssolediscretionatanytimebymailingwrittennoticeofsuchchangestoDistributor. Eachchangeshallbecomeeffective[NUMBER]daysfollowingthedatenoticethereofissenttoDistributor.
“Affiliatemeans” anycompanycontrolledby,controlling,orundercommoncontrolwithCompany.Affiliatemeansanyperson,corporationorotherentity:
(i)whichowns,noworhereafter,directlyorindirectly[%]ormoreofanyclassofthevotingstockofCompanyoris,noworhereafter,directlyorindirectly,ineffectivecontrolofCompany; or(ii)[%]ormoreofanyclassofthevotingstockofwhichCompany,orapartydescribedinparagraph(i),owns,noworhereafter,directlyorindirectly,orofwhichCompany,orapartydescribedinparagraph(i),is,noworhereafter,directlyorindirectly,incontrol.
“Customer” meansanypersonwhopurchasesorleasesProductsfromDistributor.
“DeliveryPoint” meansCompany'sfacilitiesat[FULLADDRESS]. DeliverypointmeansDistributor'sfacilitiesat[FULLADDRESS].
“Exhibit” meansanexhibitattachedtothisagreement.
“Goods” meansthoseitemsdescribedinExhibitB.GoodsmaybedeletedfromoraddedtoExhibitBandtheirspecificationsanddesignmaybechangedbyCompanyatitssolediscretionatanytimebymailingwrittennoticeofsuchchangestoDistributor. Eachchangeshallbecomeeffective[NUMBER]daysfollowingthedatenoticethereofissenttoDistributor.
“Products” meansGoods,Accessories,andSpareParts.
“SparePartsmeans”:
(i)allpartsandcomponentsoftheGoods; (ii)anyspecialdevicesusedinconnectionwiththemaintenanceorservicingoftheGoods. CompanywarrantsthatacompletelistofSparePartsissetforthinExhibitC.SparepartsmaybedeletedfromoraddedtoExhibitCandtheirspecificationsanddesignmaybechangedbyCompanyatitssolediscretionatanytimebymailingwrittennoticeofsuchchangestoDistributor. Eachchangeshallbecomeeffective[NUMBER]daysfollowingthedatenoticethereofissenttoDistributor.
“Specifications” meansthosespecificationssetforthinExhibitD.
“Territory” meansthefollowinggeographicareaorareas:
[SPECIFY].
“Trademark” meansanytrademark,logo,servicemarkorothercommercialdesignation,whetherornotregistered,usedtorepresentordescribetheProductsofCompany,assetforthinExhibitE.
2. APPOINTMENTOFDISTRIBUTOR
CompanyherebyappointsDistributorasCompany'snonexclusivedistributorofProductsintheTerritory,andDistributoracceptsthatposition. ItisunderstoodthatCompanycannotlawfullypreventitsdistributorslocatedelsewherefromsupplyingProductsforsaleorusewithintheTerritoryandthatithasnoobligationtodoso.
DistributorshallnotsolicitsalesofProductorpromotethesaleofProductsoutsidetheTerritory. DistributorshallnotestablishanofficeorwarehouseoutsidetheTerritoryforthesaleofProducts.
3. REFERRALS
IfCompanyoranyAffiliateiscontactedbyanypartyinquiringaboutthepurchaseofProductsintheTerritory(otherthanDistributororapartydesignatedbyDistributor),Companyshall,orshallcausethatAffiliateto,refersuchpartytoDistributorforhandling.
4. RELATIONSHIPOFPARTIES
a. DistributorisanindependentcontractorandisnotthelegalrepresentativeoragentofCompanyforanypurposeandshallhavenorightorauthority(exceptasexpresslyprovidedinthisAgreement)toincur,assumeorcreateinwritingorotherwise,anywarrantyoveranyofCompany'semployees,allofwhomareentirelyunderthecontrolofCompany,whoshallberesponsiblefortheiractsandomissions.
b. Distributorshall,atitsownexpense,duringthetermofthisAgreementandanyextensionthereof,maintainfullinsuranceunderanyWorkmen'sCompensationLawseffectiveinthestateorotherapplicablejurisdictioncoveringallpersonsemployedbyandworkingforitinconnectionwiththeperformanceofthisAgreement,anduponrequestshallfurnishCompanywithsatisfactoryevidenceofthemaintenanceofsuchinsurance.
c. Distributoracceptsexclusiveliabilityforallcontributionsandpayrolltaxesrequiredunder[LAWS]orotherpaymentsunderanylawsofsimilarcharacterinanyapplicablejurisdictionastoallpersonsemployedbyandworkingforit.
d. NothingcontainedinthisAgreementshallbedeemedtocreateanypartnershiporjointventurerelationshipbetweentheparties.
5. SALEOFPRODUCTSBYDISTRIBUTOR
DistributoragreestoexerciseitsbesteffortstodevelopthelargestpossiblemarketfortheProductsintheTerritoryandshallcontinuouslyoffer,advertise,demonstrateandotherwisepromotethesaleofProductsintheTerritory.
a. ThepartieshaveconsultedtogetherandnowagreethatifDistributor'sbesteffortsareusedasprovidedinthisSection,aminimumof[SPECIFY]Products("AnnualMarketPotential")willbepurchasedanddistributedintheTerritoryduringthefirstyearofthisAgreement.
b. AtthebeginningofeachsubsequentyearhereunderthepartieswillconsulttogetheringoodfaithandagreeontheAnnualMarketPotentialapplicabletothatyear;provided,however,thatiftheycannotagree,theAnnualMarketPotentialfortheimmediatelyPrecedingyearwillapplytothecurrentyear.
6. COMPETINGPRODUCTS
DistributoragreesthatitwillnotdistributeorrepresentanyProductsintheTerritorywhichcompetewiththeProductsduringthetermofthisAgreementoranyextensionsthereof.
7. ADVERTISING
Distributorshallbeentitled,duringthetermofthedistributorshipcreatedbythisAgreementandanyextensionthereof,toadvertiseandholditselfoutasanauthorizedDistributoroftheProducts. AtalltimesduringthetermofthedistributorshipcreatedbythisAgreementandanyextensionthereof,DistributorshallusetheTrademarksinalladvertisementsandotheractivitiesconductedbyDistributortopromotethesaleoftheProducts.
a. DistributorshallsubmitexamplesofallproposedadvertisementsandotherpromotionalmaterialsfortheProductstoCompanyforinspectionandDistributorshallnotuseanysuchadvertisementsorpromotionalmaterialswithouthavingreceivedthepriorwrittenconsentofCompanytodoso.
b. Distributorshallnot,pursuanttothisAgreementorotherwise,haveoracquireanyright,titleorinterestinortoCompany'sTrademarks.
8. NEWPRODUCTS
IfCompanyoranyAffiliatenoworhereaftermanufacturesordistributes,orproposestomanufactureordistribute,anyproductotherthantheProducts,Companyshallimmediatelynotify,orcausesuchAffiliatetonotify,Distributorofthatfactandofalldetailsconcerningthatproduct. DistributormayrequestfromCompanydistributionrightsforthatproductintheTerritory,oranyportionthereof,andifsorequested,Companyshallgrant,orshallcausethesubjectAffiliatetogrant,suchdistributionrightstoDistributoron
termsandconditionsnolessfavorablethanthoseprovidedinthisAgreementwithrespecttoProducts.
IfDistributordoesnotobtainthosedistributionrightsorobtainsthemonlyforaportionoftheTerritory,andCompanyoranAffiliatelaterdesirestoofferthosedistributionrightsfortheTerritoryoranyportionthereoftoanotherparty,Companyshallfirst,orshallcausesuchAffiliatetofirst,makethatofferinwritingtoDistributorontermsandconditionswhichshallbespecifiedfullyinthatoffer. Thatoffershallcontainafulldescriptionofthesubjectproductanditsoperation.
Distributormayrequest,andCompanyshallpromptlyprovide,orshallcausesuchAffiliatepromptlytoprovide,furtherinformationconcerningtheproductortheoffer. IfDistributorfailstoacceptsuchoffer,CompanyortheAffiliatemaythenoffertheproducttoanotherpartyfordistributionintheTerritory,butmaynotofferitontermsandconditionsmorefavorablethanthoseofferedtoDistributor. IfCompanyortheAffiliatedesirestomakeabetteroffertoanotherparty,Companyshallfirst,orshallcausetheaffiliatefirstto,makesuchbetteroffertoDistributorinaccordancewiththeproceduresetforthabove.
9. DISTRIBUTORSALES,SERVICEANDSTORAGEFACILITIES
a. Distributorshall,atitsexpense,engageandmaintainasales,serviceandpartshandling