THIS MEMORANDUM OF UNDERSTADNING (“MOU” or Agreement) entered into this ______, 2015 by and between :
S & P Co Syndicate Public Co Ltd, a company incorporated under the laws of Thailand having its office at 2034/100-107, 23rd & 24th Floor, Ital Thai Tower, New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10310, Thailand (Hereinafter referred to as “MANUFACTURER” , “S & P” or the Party of the First Part) and,
IFB Agro Industries Ltd., a company incorporated in India having its registered office at Plot No. Ind-5, Sector - 1, East Kolkata Township, Kolkata - 700107, West Bengal, India and address of communication as same (hereinafter referred to as “IMPORTER”, “IFB” and the party of the Second Part)
(Each party hereinafter referred as “Party”, collectively the “Parties”.)
WHEREAS:
A. IFB AGRO INDUSTRIES LTD is interested in sourcing and distributing frozen food Products produced by the “MANUFACTURER (S&P)” under IFB Brands , in the territory of INDIA.
B. S & P Co Syndicate Public Co Ltd, is willing to produce and supply the frozen food products under IFB Brand in their production faciliteis in Thailand and supply the same to IFB for sale and distribution in the territory of INDIA, (the Territory”).
NOW THEREFORE, THE PARTIES TO THIS MOU WITNESS AND AGREE UPON THE FOLLOWING:
1. Appointment :
“IMPORTER” hereby gives “MANUFACTURER” the right to produce and transport the importer’s product under the IFB brands for Importer in India.
2. The Products:
The Products shall be comprised of Ready Meals and other frozen products under the IFB Brand and any other products as may be agreed between the parties. In this MOU, it is referred as “The Products”
The responsibility of “Manufacturer” will generally end once the stock is received by “IMPORTER” under specific norms in good condition and duly acknowledged by them at the time of receipt of material.
2.3 In case of any manufacturing/packing defect or quality issues identifed later on but within the shelf life of the product, IMPORTER has to inform MANUFACTURER within 15 days of receipt of the material about such defect and such complaint will be verified by MANUFACTURER and if complaint found genuine, MANUFACTURER will either replace the material with acceptable quality products or will issue a credit note to IMPORTER as per mutually agreed terms. Damages, Penalty if any payable by the importer to the customer or to the statutory authorities on account of product quality failure will be reimbursed by the the Manufacturer to the Importer.
3. EXCLUSIVITY
3.1 This agreement will be carried forward for further periods of five (5) years each unless mutually agreed otherwise.
3.2 MANUFACTURER agrees that during the term of this Agreement and after its termination for a period upto 5 years the MANUFACTURER will not sell its products in any form, under any other brand or through any other distributors within the Territory of India.
3.3 MANUFACTURER is obliged to refer to IMPORTER all inquiries and orders for its Products originating from customers in the Territory.
4. Brand Name & Design:
Manufacturer will not disclose any confidential information in terms of packaging design or importer’s brand name to any other parties. All packaging and logo designed by importer shall become the property of the importer in perpetuity.
5. Pricing:
All products will be supplied to importer at …………………………, Bangkok Port. The price structure between parties is finalized as may be mutually agreed.
6. Price Increase :
There will be no price increase by the Manufacturer for a period of 1 year from the date of
first supply.
Further after one year the MANUFACTURER shall provide 90 days’ notice period to IMPORTER for price changes if any proposed.
7. Credit Terms:
Importer will settle the invoice as under:-
a) 30% advance in T/T.
b) 70% against shipping Documents.
OR at such terms as may be agreed by the parties from time to time.
8. Product Liability:
MANUFACTURER agrees to supply the product as per specifications of the Importer and also undertakes that the quality of the product will meet FSSAI requirements and all other applicable regulations as applicable in India. In case of any manufacturing defect the liability for such product will remain with the Manufacturer in relating to damages, claims arising out of such defects.
9. Termination:
Either Party can terminate the contract by giving 180 days’ notice.
10. Governing Law and Dispute Resolution:
Where such amicable settlement is not reached, the dispute shall be referred to and settled by the courts of INDIA or Thailand for settlement whose award shall be final and binding on the Parties
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the day and year first written above.