-Draft-
NON-EXCLUSIVE DISTRIBUTION AGREEMENT
THIS AGREEMENT is made on ______________ and will be effective as of ___________ (the “Effective Date”) BY AND BETWEEN:
THE SUKHA HOUSE (THAILAND) COMPANY LIMITED
A company incorporated under the laws of Thailand, and having its head office at 280/291 Village no.6, San Phra Net Sub-district, San Sai District, Chiang Mai Province, Thailand (hereinafter referred to as the “Company”) OF ONE PART and ;
THE PATH OF HEALTH LIMITED
An Individual with his main address located or a corporation organise and existing under the law of Hong Kong, with its head office located at Flat A, 2/F, Block 1, Camelpaint Building, 62 Hoi Yuen Road, Kwun Tong, Kowloon. (hereinafter referred to as the “Distributor”) OF THE OTHER PART
WHEREAS the Company wishes to enhance the development of the market and increase the sales of the Products described in Schedule A (the “Products”) in Hong Kong (the “Territory”) through the Distributor and the parties hereby agree to enter into a distributor/supplier relationship as follows;
1. NON-EXCLUSIVE RIGHTS
1.1 Distributor
The Distributor is an independent contractor and is not the legal representative or agent of the Company for any purpose.
The Company grants to Distributor for resale, and Distributor accepts, the non-exclusive right to distribute in the Territory all Products and related goods under the trade name “CHANG” and “The Sukha House” described in Schedule B (the “Trademark”) offered by the Company during the term of this Agreement.
1.2 Products
The Company agrees to make available and to sell to Distributor such quantities of Products as Distributor shall order from the Company at the prices and subject to the terms set forth in this Agreement.
2. TERM AND TERMINATION
2.1 Term
The initial term of this Agreement is one (1) year. Thereafter the Agreement will automatically renew for successive one (1) year terms, unless it is earlier terminated.
2.2 Termination
(a) Either party may terminate this Agreement, with or without cause, by giving Thirty (30) days written notice to the other party.
(b) Either party may immediately terminate this Agreement with written notice if the other party:
(i) materially breaches any term of this Agreement and such breach continues for fifteen (15) business days after written notification thereof; or
(ii) ceases to conduct business in the normal course, becomes insolvent, makes a general assignment for the benefit of creditors, suffers or permits the appointment of a receiver for its business or assets, or avails itself of or becomes subject to any proceeding under any Bankruptcy Act or any other statute relating to insolvency or the protection of rights of creditors.
3. DISTRIBUTOR OBLIGATIONS
3.1 Qualification
Distributor shall own and operate a legally registered business in Hong Kong, and possess commercial premises to conduct Distributorship related activities. Distributor shall submit a copy of its business license, if any, to the Company within 10 business days after signing of this Agreement.
3.2 Advertising
Distributor will advertise and/or promote Products in a commercially reasonable manner and will transmit as reasonably necessary product information and promotional materials to its customers.
Distributor shall submit example of all proposed advertisement sand other promotional materials for the Products to the Company for inspection and Distributor shall not use any such advertisements or promotional materials without having received the prior written consent of the Company to do so.
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Distributor shall not, pursuant to this Agreement or otherwise, have or acquire any right, title or interest in or to the Company’s Trademark.
3.3 Support
The Distributor agrees to exercise its best efforts to develop the largest possible market for the Products in the Territory and shall continuously offer, advertise, demonstrate and otherwise promote the sale of Products in the Territory.
3.4 Order
Distributor shall order the Products for the whole year (for the preparation of Products production) which must not less than _______ and place order with the Company in its own name and account, and shall not place order for distribution by others.
3.5 Cancelation of Order
All cancelation of orders or part of orders by Distributor shall be in writing, or if not initially in writing, shall be confirmed in writing. If the Distributor cancels an order, which has been accepted by the Company, Distributor shall reimburse the Company for any cost incident to such order incurred by the Company prior to the time it was informed of the cancellation.
3.6 Inspection and acceptance
Promptly upon the receipt of shipment of Products, Distributor shall examine the shipment to determine whether Products are in short supply, defective or damaged. Within 7 days of receipt of the shipment, Distributor shall notify the Company in writing of any shortages, defects or damage which Distributor claims existed at the time of delivery. Within 7 days after the receipt of such notice, the Company will investigate the claim of shortages, defects or damage, inform Distributor of its finding, and deliver to the Distributor Products to replace any which the Company determines, in its sole discretion, were in short supply, defective damaged at the time of Delivery.
3.7 Customer Services
Distributor shall be responsible for post-sale customer services or responsibility and shall not pass such services or responsibility on to the Company.
4. THE COMPANY OBLIGATIONS
4.1 Delivery and Pickup
The Company shall ship Products pursuant to approved Distributor purchase order(s) (“PO”). Products shall be shipped to Distributor’s designated warehouse or other specified location. The Delivery of all Products shall be made F.O.B. the delivery point, and the title to and risk of loss of Products shall pass from the Company to the Distributor.
In the case that PO is made for the whole year and the Distributor prefers to be delivered for a part of the order instead of the whole order, the Distributor must clearly specify in the PO. The quantities of the Products that will be delivered in each shipment shall be informed by the Distributor not less than 30 days before the delivery date.
4.2 Product Availability
Under Clause 3.4, the Company agrees to maintain sufficient Products inventory to fill Distributor’s orders.
The Package of the Products shall be designed by the Company under its Trademark logo or trade name. Only for resale in the Territory, the Company agrees that the Distributor can change some part of the package in pursuant to the Schedule C.
4.3 New Products
The Company shall endeavor to notify Distributor any new products which may be distributed by Distributor.
5. RESERVATION, PRICING AND PAYMENT
5.1 Reservation
A deposit for 30% of the value of the PO shall be paid to the Company and reservation period is 5 business days. The deposit shall be returned to Distributor if the Company is not able to supply Products ordered for any reason, and shall be non refundable in the event Distributor is not able to complete the purchase according to the terms of the PO.
5.2 Pricing
All prices are set out in (currency). The Company may modify prices with a minimum of fifteen (15) days advance notice to Distributor for each shipment. Distributor shall have sole discretion as to selling price of Products to its customers.
5.3 Payment Terms
Unless the Company has, in its discretion, determined to extend credits to Distributor, payment for each PO or shipment by Distributor may be made by ________. Delivery for each PO or shipment shall be made within _______ business days after receipt of full payment by the Company.
6. TRADEMARK
The Products may bear certain trade names, trademarks, trade devices, logos, codes or other symbols of the Trademarks. The Company hereby grants to Distributor the non-exclusive, royalty-free right to use the Trademarks for the purpose of carrying out the activities described in this Agreement, provided that Distributor will not be entitled to conduct business under any of the Trademarks or derivatives or variations thereof. All use will ensure to the benefit of the Company and will not vest in Distributor any rights in or to the Trademarks.
7. INDEMNIFICATION
7.1 General Indemnity
Each party shall indemnify, defend and hold the other harmless from and against any and all claims, actions, damages, demands, liabilities, costs and expenses, including reasonable attorney’s fees and expenses, resulting from any act or omission of the acting party or its employees under this Agreement, that causes or results in property damage, personal injury or death.
7.2 Limitation of Liability
Neither party shall be liable to the other for lost profits of business, indirect, consequential or punitive damages, whether based in contract or tort (including negligence, strict liability or otherwise), and whether or not advised of the possibility of such damages. The Company’s liability with respect to any Products shall in no event exceed the amount actually paid by Distributor to the Company less taxes and charges for shipping and insurance.
8. GENERAL PROVISIONS
8.1 Notices
Any notice which either party may desire to give the other party must be in writing and may be given by (i) personal delivery to an officer of the party, (ii) by mailing the same by registered or certified mail, return receipt requested, to the party to whom the party is directed at the address of such party as set forth at the beginning of this Agreement, or such other address as the parties may hereinafter designate, and (iii) by facsimile or telex communication subsequently to be confirmed in writing pursuant to item (ii) herein.
8.2 Governing Law
This Agreement shall