Cx]Letter of intent for distributorship agreement
This Letter of intent (“LOI”) is made on date of ………….by and between party1 inc., a corporation organized and existing under the law of the state of Maine, US (“PARTY1”) and Party 2 of 1027 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10303, Thailand (“PARTY 2”).
The LOI is intended to set forth the general term and conditions agreed by the Parties, and as the basis for further negotiation by the Parties and incorporation into a full Distributorship Agreement (the “Distributorship Agreement”) with Party 2 which will be the final binding agreement between the parties.
The Parties agrees as follows.
1. APPOINTMENT. PARTY 1 is a designer, manufacturer and distributor of a well-known brand of footwear, apparel, bags, accessories, and equipment. PARTY 2 desires to sell, advertise and distribute the PARTY 1 products in Thailand (the “Territory”). Subject to the terms and condition of the Distributorship Agreement to be entered into between the parties, PARTY 1 intends to appoint PARTY 2 as the Exclusive Distributor of PARTY 1 products in Thailand as described in Schedule 1, with the exception of duty free sales.
2. TERM. The term of Distributorship Agreement shall be approximately three (3) years with retroactive effect commencing from Feb 1,2010 to Dec 31,2012, subject to parties being able to discuss, negotiate, and sing in good faith a final Distributorship Agreement. After the expiration of the said agreement term , and without having entered into a written agreement or extension, it shall be construed as an implied extension of this Agreement for an additional period of one (1) year till Dec 31 2013.
3. MARKETING AND DISTRIBUTION. PARTY 2 shall follow the marketing and distribution policies and exclusive dealing defined in the Distributorship Agreement. Any advertisement, store concept, in-store promotional material or program for PARTY 1 Products must be approved by PARTY 1 in writing before use by the PARTY2. The Marketing Budget is described Schedule 1.
4. PERFORMANCE GOALS. PARTY 2 shall use its best efforts to satisfy the minimum purchase proposed in Schedule 1 and the performance and sales goals structure established in the Distributorship Agreement.
5. REPORTS AND FORECASTS. PARTY 2 shall deliver to PARTY 1 sales performance reports and submit to PARTY 1 for approval a written marketing and sales plan for such Agreement Year in such from and frequency as Party 1 shall provide or approve. PARTY 2 shall notify PARTY 1 of any significant change of its management, shareholder and other corporate registration.
6. ORDER AND PAYMENT TERMS. All purchases by PARTY 2 from PARTY 1 shall be subject to PARTY 1’s terms and condition of trade including pricing policy, and be in accordance with the sales programs and on the payment terms listed in LOI.
7. TRADEMARKS. PARTY 2 acknowledges that the Trademarks are the exclusive property of PARTY 1 and its affiliated organization throughout the world and no right, title or interest therein is transferred by this Agreement to PARTY 2. PARTY 2 shall not impair the validity of the trademarks or the exclusive ownership thereof by PARTY 1 or any of its affiliated organizations either during the Agreement term or termination/expiration of distributorship. PARTY 2 shall sell PARTY 1 Products only under the Trademarks within the agreement term.
8. ASSIGHMENT. PARTY 2 shall not assign any of the rights and obligation under this LOI without the prior written approval of PARTY 1.
9. STORE PLAN. PARTY 2 shall follow the store opening schedule and category as described in Schedule 1. The first store shall open in Bangkok and comply with “Shop in Shop” as described in Schedule 1.
10. PERMITS AND LICENSES. PARTY 2 will be responsible for ensuring that all required permits and authorizations for the completion of its obligations under the Distributorship and the operation of PARTY 1 stores. The Distributorship Agreement will be contingent on a credit check securing any other required capability necessary for the distributor works or for the operation of those stores.
11. GOVERNING LAW. This LOI shall be governed by the law of Thailand. Any disputes under this agreement shall be referred for resolution to the competent courts in Thailand.
12. CONFIDENTIALITY. The terms contained in this LOI and in any subsequent Agreement are to remain strictly confidential and re not to be divulged to any outside party except to legal counsels and
Consultants retained by PARTY 1 or PARTY 2, which are directly involved in this transaction. PARTY 2 agrees not to issue any press release or other announcement in connection with the negotiation of this LOI and or the Distributorship Agreement, without the prior consent of PARTY 1.
13. LIMITATION ON DAMAGES. PARTY 1 will not be liable for any loss of profit, interruption of business or any other special, consequential or incidental damages suffered or sustained by PARTY 2.
14. TAXES. Party 2 shall be responsible for any tax liabilities (if any) imposed in Thailand in relation to the performance of its obligation under the LOI and the Distributorship Agreement.
15. PARY 1 CORPORATE APPROVALS. The LOI and the Distributorship Agreement will be subject will be subject to the approval by the senior management of PARTY 1, Inc. which at their sole discretion, may approve or disapprove this transaction.
16. FINAL AGREEMENT. The LOI will be effective for a period of 90 days upon the signatures of both Parties and the Parties agree to negotiate in good faith a final written Distributorship Agreement based on the above terms and conditions, but is not limited to offer any other terms or condition by both parties, within 90 days of the LOI.
IN WITNESS WHEREOF, this LOI is made in duplicate having corresponding terms and condition and the Parties hereto have read and understood the contents hereof and hereby affixed their respective signatures and seal (if any) in presence of witnesses on the date first above written.
Cx]Letter of intent for distributorship agreementThis Letter of intent (“LOI”) is made on date of ………….by and between party1 inc., a corporation organized and existing under the law of the state of Maine, US (“PARTY1”) and Party 2 of 1027 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10303, Thailand (“PARTY 2”).The LOI is intended to set forth the general term and conditions agreed by the Parties, and as the basis for further negotiation by the Parties and incorporation into a full Distributorship Agreement (the “Distributorship Agreement”) with Party 2 which will be the final binding agreement between the parties.The Parties agrees as follows.1. APPOINTMENT. PARTY 1 is a designer, manufacturer and distributor of a well-known brand of footwear, apparel, bags, accessories, and equipment. PARTY 2 desires to sell, advertise and distribute the PARTY 1 products in Thailand (the “Territory”). Subject to the terms and condition of the Distributorship Agreement to be entered into between the parties, PARTY 1 intends to appoint PARTY 2 as the Exclusive Distributor of PARTY 1 products in Thailand as described in Schedule 1, with the exception of duty free sales.2. TERM. The term of Distributorship Agreement shall be approximately three (3) years with retroactive effect commencing from Feb 1,2010 to Dec 31,2012, subject to parties being able to discuss, negotiate, and sing in good faith a final Distributorship Agreement. After the expiration of the said agreement term , and without having entered into a written agreement or extension, it shall be construed as an implied extension of this Agreement for an additional period of one (1) year till Dec 31 2013.3. MARKETING AND DISTRIBUTION. PARTY 2 shall follow the marketing and distribution policies and exclusive dealing defined in the Distributorship Agreement. Any advertisement, store concept, in-store promotional material or program for PARTY 1 Products must be approved by PARTY 1 in writing before use by the PARTY2. The Marketing Budget is described Schedule 1.4. PERFORMANCE GOALS. PARTY 2 shall use its best efforts to satisfy the minimum purchase proposed in Schedule 1 and the performance and sales goals structure established in the Distributorship Agreement.5. REPORTS AND FORECASTS. PARTY 2 shall deliver to PARTY 1 sales performance reports and submit to PARTY 1 for approval a written marketing and sales plan for such Agreement Year in such from and frequency as Party 1 shall provide or approve. PARTY 2 shall notify PARTY 1 of any significant change of its management, shareholder and other corporate registration.6. ORDER AND PAYMENT TERMS. All purchases by PARTY 2 from PARTY 1 shall be subject to PARTY 1’s terms and condition of trade including pricing policy, and be in accordance with the sales programs and on the payment terms listed in LOI.7. TRADEMARKS. PARTY 2 acknowledges that the Trademarks are the exclusive property of PARTY 1 and its affiliated organization throughout the world and no right, title or interest therein is transferred by this Agreement to PARTY 2. PARTY 2 shall not impair the validity of the trademarks or the exclusive ownership thereof by PARTY 1 or any of its affiliated organizations either during the Agreement term or termination/expiration of distributorship. PARTY 2 shall sell PARTY 1 Products only under the Trademarks within the agreement term.8. ASSIGHMENT. PARTY 2 shall not assign any of the rights and obligation under this LOI without the prior written approval of PARTY 1.9. STORE PLAN. PARTY 2 shall follow the store opening schedule and category as described in Schedule 1. The first store shall open in Bangkok and comply with “Shop in Shop” as described in Schedule 1.10. PERMITS AND LICENSES. PARTY 2 will be responsible for ensuring that all required permits and authorizations for the completion of its obligations under the Distributorship and the operation of PARTY 1 stores. The Distributorship Agreement will be contingent on a credit check securing any other required capability necessary for the distributor works or for the operation of those stores.11. GOVERNING LAW. This LOI shall be governed by the law of Thailand. Any disputes under this agreement shall be referred for resolution to the competent courts in Thailand.12. CONFIDENTIALITY. The terms contained in this LOI and in any subsequent Agreement are to remain strictly confidential and re not to be divulged to any outside party except to legal counsels andConsultants retained by PARTY 1 or PARTY 2, which are directly involved in this transaction. PARTY 2 agrees not to issue any press release or other announcement in connection with the negotiation of this LOI and or the Distributorship Agreement, without the prior consent of PARTY 1.13. LIMITATION ON DAMAGES. PARTY 1 will not be liable for any loss of profit, interruption of business or any other special, consequential or incidental damages suffered or sustained by PARTY 2.14. TAXES. Party 2 shall be responsible for any tax liabilities (if any) imposed in Thailand in relation to the performance of its obligation under the LOI and the Distributorship Agreement.15. PARY 1 CORPORATE APPROVALS. The LOI and the Distributorship Agreement will be subject will be subject to the approval by the senior management of PARTY 1, Inc. which at their sole discretion, may approve or disapprove this transaction.16. FINAL AGREEMENT. The LOI will be effective for a period of 90 days upon the signatures of both Parties and the Parties agree to negotiate in good faith a final written Distributorship Agreement based on the above terms and conditions, but is not limited to offer any other terms or condition by both parties, within 90 days of the LOI.IN WITNESS WHEREOF, this LOI is made in duplicate having corresponding terms and condition and the Parties hereto have read and understood the contents hereof and hereby affixed their respective signatures and seal (if any) in presence of witnesses on the date first above written.
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