PURCHASE AGREEMENT
This Agreement is made and entered into on **st day of [month], [year], by and between YKK Fastening Products Sales Inc., a corporation duly organized and existing under the laws of Japan with its principal place of business located at 1-28-2 Taito, Taito-ku, Tokyo (hereinafter referred to as “Buyer”) and __________ , a corporation duly organized and existing under the laws of [country] with its principal place of business located at [address of the other party] (hereinafter referred to as “Seller”).
WITNESSETH:
WHEREAS, Buyer desires to purchase, from time to time, the Products(as hereinafter defined)from Seller; and
WHEREAS, Seller desires to sell the Products to Buyer,
NOW, THEREFORE, the parties hereby agree as follows:
Article1. Definitions
Subject to this Agreement, the following terms shall have the following meanings:
(1) This “Agreement” shall mean this PURCHASE AGREEMENT relating to purchase and sales of products between the parties;
(2) “Products” shall mean fastening products and industrial subsidiary materials (including associated parts);
(3) “Individual Agreement” shall mean an individual agreement for supply and sales of the Products entered by and between the parties;
(4) “Intellectual Property Rights” shall mean patent rights stipulated in the Patent Law and rights to obtain patents, utility model rights stipulated in the Utility Model Law and rights to obtain utility model registrations, design rights stipulated in the Design Law and rights to obtain design registrations, trademark rights stipulated in the Trademark Law, layout-design exploitation rights stipulated in Law on Layout Design of Integrated Circuits and rights to obtain registrations of circuit layout rights, copyrights stipulated in the Copyright Law and their neighboring rights, and any other trade secrets including know-how;
(5) “YKK Group Companies” shall mean YKK Corporation and its subsidiaries.
(6) “Quality Standards” shall mean the latest version of “Quality Standard Tables YKK Fastening Products Sales Inc.” specified by Buyer.
Article2. Purposes
The Purpose of this Agreement shall be to provide the basic matters relating to supply and sales of products between the parties, which shall apply to the Individual Agreement entered between the parties.
Article3. Individual Agreement
1. Individual Agreement shall provide for an order date, product type, volume, unit price, payment due, means of payment, delivery schedule, delivery point and other terms and conditions relating to the Products except otherwise set forth in this Agreement.
2. Notwithstanding the preceding paragraph, each party may stipulate in a prior written document any portion of terms and conditions of the Individual Agreement upon mutual discussion of the parties.
3. Individual Agreement shall supersede this Agreement.
Article4. Execution of Individual Agreement
1. An Individual Agreement shall become effective, when Buyer provides a purchase order (in whatever title) stating the terms and conditions of sales as set forth in Article 3 herein to Seller and Seller manifests its intention to accept the order to Buyer. If Seller fails to manifest its intention to refuse an order to Buyer within ten (10) days after provision of the purchase order, Seller shall be deemed to have accepted the order on the last day of the ten-day period.
2. If it is necessary to modify any of terms and conditions of Individual Agreement, each party shall discuss the terms and conditions, modify existing Individual Agreement or additionally execute an agreement in writing.
3. If Seller can state the terms and conditions of a purchase order in writing, each party may use an electromagnetic way including emails to provide documents including purchase orders and manifesting its intention to accept such order.
Article5. Specifications
1. Specifications of the Products shall be in accordance with separate specifications defined by the parties upon mutual discussion and drawings and specifications and other documents may be attached, if necessary, to Individual Agreement.
2. If it is necessary to modify the specifications of the Products, each party shall decide the modification upon mutual discussion.
3. Seller shall provide Buyer with repair parts of the Products for ten (10) years after modification of the specifications of the Products.
4. Notwithstanding the preceding paragraph, if it seems difficult to provide the Products or the repair parts, Seller shall give a notice to Buyer reasonably in advance. In such a case, alternative measures shall be taken upon mutual discussion of the parties at Seller’s expense.
Article6. Delivery
1. Seller shall, before delivery of the Products, inspect such Products pursuant to the inspection procedures separately provided by Buyer to see if the Products meet the quality requirements set forth in Quality Standards and Individual Agreement, and shall immediately report Buyer with the results. Buyer may visit to Seller’s factory and other facilities for the checking the quality of the Products, and inspect the quality of the Products. Seller shall retain the above-mentioned inspection results for five (5) years and shall provide immediately, upon Buyer’s request, Buyer with them.
2. Seller shall deliver Products which have passed the inspections set forth in the preceding paragraph in the form and style and by the delivery date as set forth in Individual Agreement and in accordance with FOB (Incoterms 2010).
3. Upon Buyer’s prior approval, Seller may deliver the Products before the prescribed delivery time of the Products.
4. If it is not likely to deliver the Products conforming to the terms and conditions in accordance with the Individual Agreement, Seller shall promptly notify Buyer of that effect and its reasons and ask for Buyer’s instruction.
5. If Buyer suffers damages by reason of impossibility of delivering the Products conforming to the terms and conditions specified in Individual Agreement, Seller shall compensate Buyer for such damages to the extent that the damage is attributable to Seller.
Article7. Inspection
1. If, as a result of Buyer’s visual and quantitative inspection of Products discharged at the place of destination, any defect, insufficiency in quantity, alteration or other flaw in Products is found, Buyer shall give a written notice thereof to Seller within fourteen (14) days after the date of arrival of such Products at the final destination. In this case, Seller shall, pursuant to instructions by Buyer, without charge, screen and/or take back such Products, deliver substitutes, repair the defective Products, discount the price, or pay costs for repairing such Products or purchasing substitutes, or compensate Buyer for damages as the result of such defect in lieu of or as well as the foregoing measures.
2. If any defect in the Products is found pursuant to paragraph 1 hereof, and if it is determined that such Products may be employed by Buyer’s ingenuity since such defect was caused by a slight trouble, Buyer may accept such Products as concession by discount the price.
Article8. Title
Title to the Products shall pass from Seller to Buyer at the time when said Products come under the control of a shipping agent.
Article9. Price
Price of the Products shall be provided in Individual Agreement upon mutual discussion of the parties.
Article10. Payment
The payment for the Products by Buyer to Seller shall be made pursuant to each of Items below. If the payment date falls on a bank holiday, payment shall be made on the first business day after said holiday:
(1) Accounts shall be closed on the last day of each month;
(2) Buyer shall pay Seller for the Products delivered by Seller by the closing date set forth in the preceding Item through wire transfer into a bank account designated by Buyer by the twentieth (20th) day of the month following the month which includes such closing date;
(3) When payment is made by wire transfer, bank transfer fee arising in Japan shall be borne by Buyer, and bank transfer fee arising in [country] shall be borne by Seller.
(4) All the payments shall be made in [currency] using the average exchange rate of the calendar month preceding the date of payment.
Article11. Setoff
1. If Seller owes monetary obligation to Buyer, Buyer may set off Buyer’s obligation to Seller with such Seller’s obligation irrespective of maturity of the obligation.
2. With respect to the setoff stipulated in this Article, neither Buyer nor Seller mutually issues any receipts of the amount setoff by the parties hereto, and such setoff shall be completed upon notification by Buyer to Seller of its specification.
Article12. Warranty
1. Seller shall deliver the Products pursuant to the quality requirements set forth in Quality Standards and Individual Agreement.
2. Seller shall, upon Buyer’s request, prepare periodically reports on quality inspections of the Products and provide Buyer with them.
3. If any defect in the Products is found within one (1) year after the date of arrival of such Products at the final destination, Buyer shall promptly notify Seller to that effect and Seller shall deliver substitutes, repair the defective Products, discount the price, or pay costs for repairing such Products or purchasing substitutes, or provide indemnities to Buyer for damages as the result of such defect in lieu of or as well as the foregoing measures.
4. If any defect in the Products is found after the period set forth in the preceding paragraph, Seller shall, pursuant to Buyer’s instructions, repair such Products for consideration or deliver alternative goods for consideration.; provided, however, that Buyer may claim against Seller for measures set forth in the preceding paragraph, if such defect arises out of a reason attributable to Seller during ordinary expiration period.
5. Buyer shall, upon Seller’s request, disclose the Buye