| Confidential Memorandum
for
<<country>> Distribution Agreement
between:
Innovations Xtreme
and:
<<individuals or company representatives or
company>>
TABLE OF CONTENTS:
1. Details About Distributor
2. Territorial Limitations
3. Exclusivity
4. Minimum Performance Requirements
5. Products Covered by Agreement
6. Price of the Products
7. Product Liability
8. Maintenance of Stock and Parts
9. Payment Terms
10. Ordering Procedure
11. Promotional Strategy
12. Anticipated Forward Requirements
13. Expenses
14. Trademarks and Brand Names
15. Product Enhancements
16. Covenant Not to Compete
17. Protection Against "Knock-Offs
18. Compliance with Law
19. Warranty
20. Products Liability Insurance
21. Customs Clearance and Payment of Customs Duties
22. Confidential Information and Trade Secrets
23. Assignment; Appointment of Sub-Agents
24. Term of Agreement
25. Alternative Dispute Resolution Procedure
1. Details About Distributor
1.1. Name: <<individuals or company representatives or company>>
1.2. (hereinafter referred to as the "Distributor")
1.2.1. <<Brief listing of companies controlled by individuals
in 1.1>>
1.3. Address: <<Address>>
1.4. Telephone No: <<phone number>>
1.5. Facsimile No: <<fax number>>
1.6. Name of Principal: <<as in 1.1>>
1.6.1. CEO
2. Territorial Limitations
2.1. <<country>>, inclusive of provinces and territories
2.2. Distributor to individual corporations or sub-distributors
2.3. A combination of 2.1 and 2.2 above.
3. Exclusivity
3.1. We would like sole exclusivity to the <<country>>
marketplace for the distribution and promotion of The Inflatable
Church.
3.2. This arrangement would pertain only to <<country>>
clients and not permiate beyond <<country’s>>
Geographic Boundaries.
3.3. Inquiries from outside these boundaries shall be forwarded
to the applicable distributor as determined by InnovationsUK.
3.3.1. Products would be purchased solely from InnovationsUK at
a set cost agreed upon, in writing, by both parties.
3.4 In consideration of being granted exclusivity for the distribution
rights, we agree to make a payment of £x to InnovationsUK
to secure such rights for the period of 12 months from the date
of this agreement. In addition, we agree to pay a “Returnable”
Deposit of £xx.xx to be held by InnovationsUK for the purpose
of securing the appropriate use of The Inflatable Church trademark
and proper performance of the terms of this agreement.
3.4.1 In consideration of these terms, InnovationsUK agrees to refer
all enquiries received directly from the region covered by the “Exclusivity”
to the Distributor, and will not engage in direct sales within the
said region.
4. Minimum Performance Requirements
4.1. Quota targets, whether they be client based, product based
or financial based, shall be stipulated in advance and agreed upon,
in writing, by both parties.
4.1.1. Termination of the Distributor agreement shall be in writing
with 28 days prior notice by either party.
4.2. Exclusivity shall remain in effect unless contract is terminated.
5. Products Covered by Agreement
5.1. The Inflatable Church.
5.2. We shall be given the first opportunity to distribute any new
products according to the guidelines of this agreement.
6. Price of the Products
6.1. Cost of the products shall be agreed to in writing by both
parties.
6.1.1. Volume discounts shall be set by InnovationsUK.
6.2. Cost shall include freight charges to <<country>>.
6.3. Customs Brokerage is the responsibility of the Distributor.
6.4. Distributor shall be responsible for all setup costs, including
delivery to client’s site, portable compressor units and storage.
6.5. InnovationsUK shall be present for initial setup. (At distributors
expense)
6.6. InnovationsUK shall inform Distributor of any changes, sixty
days in advance.
7. Product Liability
7.1. The products supplied by InnovationsUK shall come with a warranty
period and complete documentaion dealing with use, longevity and
liability. The Distributor will ensure that liability insurance
is applied prior to use and for the lifetime of the product.
8. Maintenance of Stock and Parts
8.1. The Distributor shall maintain an adequate
level of stock and spare parts to service its
customers.
8.1.1. InnovationsUK shall submit, in writing, all costs that may
be required to maintain the proper working order of the product,
including but not limited to, paint, housing material, glue and
individual components.
9. Payment Terms
9.1. Payment terms shall be agreed to in writing by both parties
prior to a ratification of the contract.
9.2. Terms shall include credit terms, denomination of funds, due
dates of payments and delivery.
10. Ordering Procedure
10.1. Ordering Information shall be supplied by InnovationsUK.
10.1.1. The order form shall include the following:
• Purchase order number.
• Date.
• Description of Products, including any options or accessories.
• Quantity.
• Price.
• Payment details.
• Shipping instructions.
• Date required by.
• Any other instructions.
• Signature.
10.2. InnovationsUK shall inform the Distributor of any lead times
that are required or delays that may occur.
10.5. Order limitations by the factory shall be set by InnovationsUK.
10.6. The Distributor shall be notified immediately of any split
deliveries and partial shipments.
11. Promotional Strategy
11.1. The Distributor shall diligently market the products purchased
from InnovationsUK in a timely manner.
11.1.1. InnovationsUK shall be forwarded a brief description of
any marketing plans on a quarterly basis.
11.1.2. The Distributor shall take advantage of area associations
and trade shows.
11.1.3. The Distributor shall cover the cost of marketing unless
a cross border marketing stategy is implemented by InnovationsUK.
12. Anticipated Forward Requirements
12.1. The Distributor should provide Client with its anticipated
forward requirements updated
on a quarterly basis.
12.1.1. Such report shall also include details regarding any promotional
activity
planned by the Distributor.
12.2. The Distributor shall keep InnovationsUK abreast of important
market developments within the Territory including, without limitation:
12.2.1. Information about competitors, their products and prices.
12.2.2. Comments on the Products by actual and prospective customers.
12.2.3. Opportunities for further market development.
12.2.4. Upcoming trade shows.
12.2.5. Market research.
12.2.6. Any other market intelligence.
13. Expenses
13.1. InnovationsUK shall set forth a breakdown of expenses that
each party is reponsible for.
14. Trademarks and Brand Names
14.1. InnovationsUK shall set forth it’s restrictions for
the Distributor to use licenced trademarks and brand names.
15. Product Enhancements
15.1. InnovationsUK shall notify the distributor in a timely manner
of any product enhancements.
15.1.1. Routine modifications and enhancements shall not affect
the price of the Products.
15.1.2. The price of substantial modifications and enhancements
shall be determined by mutual agreement of the parties.
16. Covenant Not to Compete
16.1. The Distributor shall not engage, participate or partner in
any business that is a direct competition of the products supplied
by InnovationsUK,
16.1.1. During the term of the agreement;
16.1.2. For a period of one year thereafter.
17. Protection Against "Knock-Offs"
17.1. The Distributor shall inform InnovationsUK immediately, in
writing, of any knock-off product that is being marketed in the
Distributor’s area.
18. Compliance with Law
18.1. The Distributor should assume responsibility for determining
whether products manufactured by Client comply with applicable law,
including:
18.1.1. Country of origin marking requirements.
18.1.2. Product safety standards.
18.1.3. Warnings and labelling.
18.1.4. Registrations and approvals.
18.1.5. Materials
18.2. The Distributor should advise InnovationsUK in what respect
any product fails to so comply.
19. Warranty
19.1. The Inflatable Church shall carry a six month warranty by
the manufacturer against any production defects.
19.2. Any warranties given by the Distributor to its customers shall
comply with local jurisdictional
requirements.
19.3. The Distributor shall also assist InnovationsUK in the preparation
of any point of sale material, instructions or owners manuals that
may be required.
19.4. InnovationsUK will set forth rules for warranty repair and
associated costs and responsibilities.
20. Products Liability Insurance
20.1. The Distributor is responsible for the costs of acquiring
liability insurance.
21. Customs Clearance and Payment
of Customs Duties
21.1. The Distributor shall be responsible for Customs clearance
and payment.
22. Confidential Information and
Trade Secrets
22.1. The Distributor shall maintain a strict code of ethics at
all times and maintain InnovationsUK’s trade secrets or confidential
information.
23. Assignment; Appointment
of Sub-Agents
24.1. The Distributor's has the right to appoint subagents at the
approval of InnovationsUK.
24.2. The Distributor will assume liability for the acts and omissions
of its sub-agents, distributors and brokers.
24.3. The Distributor may not assign this agreement without InnovationsUK’s
express written consent.
24. Term of Agreement
25.1. The terms of this agreement shall be renewed annually
25.2. Both parties reserve the right to terminate this contract
with 28 days prior written notice.
25.3. Obligations by both parties shall stand until the final day
of termination.
25.4. The Distributor requests the right to renew the contract before
other parties are involved.
25.5. A bona fide reason must be given by either party to terminate
this contract.
25.6. Upon termination, purchased product shall be sold back to
InnovationsUK for fair market value or sold to a licensed distributor.
25. Alternative Dispute Resolution
Procedure
26.1. Both parties shall seek an alternate dispute resolution procedure
prior to court proceedings, should there be a need to settle a dispute.
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