Distribution Agreement.docx

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Distribution Agreement.docx

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Distribution Agreement.docx

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

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