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Between:
(1)
____________________________organized and existing
under the laws of China, whose
registered offices are
at_______________________ taxpayer nr___________,
having an equity
capital of USD
XXXXXXXXX, (hereinafter calle
d
“Company”).
(2)
___________________,
organized
and
existing
under
the
laws
of
_______________,
whose
registered
offices
are
at
___________________________,
taxpayer
nr
________________,
Company
Registration
number
__________
,
(hereinafter
called
the
“Distributor”),
whereby
is
it
agreed as follows:
1 Appointment
1.1 The Company hereby appoints the
Distributor and the Distributor agrees to act as
the distributor
of the Products
specified in the Schedule 1 here (hereinafter
called “the Product” or “the
Products”) in
the
territory/client of
______
(hereinafter called “the territory”)
and the Distributor agrees to act in
that capacity subject to the terms and
conditions of this Agreement.
1.2
Subject
as
provided
in
Schedule
4.4,
the
Company
shall
not
appoint
any
other
person,
firm
or
company in the Territory/client as a
distributor or agent for the Products in the
Territory/client.
1.3 The
Distributor shall buy and sell Products in its own
name and for its own account and it acts as
an
independent
contra
ctor
in
respect
to
both
the
Company
and
to
the
Distributor’s
customers.
The
Distributor
shall
be
entitled
to
describe
itself
as
the
Company’s
“Authorized
Distributor”
for
the
Products,
but
shall
not
hold
itself
out
as
the
Company’s
agent
for
sales
of
the
P
roducts
or
as
being
entitled
to bind the Company in any way. The Distributor
shall not sell any of the Products through a
sales agent or to a sub-distributor
without the express written permission of the
Company.
1.4 Nothing in
this Agreement shall entitle the Distributor to:
1.4.1
Any
priority
of
supply
in
relation
to
the
Products
as
against
the
Company’s
other
distributors or customers; or
1.4.2 Any right or remedy
against the Company if any of the Products are
sold in the Territory
by any person,
firm or company outside the Territory other than
the Company; or
1.4.3
Solicit
customers
for
the
Products
outside
the
Territory
either
directly
or
through
an
agent;
or
1.4.4 Establish or
maintain any branch, office or other sales outlet
or storage deposit outside
the
Territory for the purposes of the sale or
distribution of the Products.
1.5 The Distributor shall not:
1.5.1 Obtain the Products
(or any goods which compete with the Products) for
resale from any
person, firm or company
other than the Company; or
1.5.2
Be
concerned
or
interested,
either
directly
or
indirectly,
in
the
manufacture,
sale
or
distribution in the Territory of any
product which are in the reasonable opinion of the
Company
deemed to be competitive to the
Products;
1.5.3 Promote the
selling of the Products to any customer in any
country which is outside the
territory;
1.5.4 Sell the Products
within the Territory if to the knowledge of the
distributor that customer
intends to
resell the Products in any country which is
outside the Territory.
2
Delivery
2.1 Orders for the
Products which do not conform to the standard
estimated delivery times specified
by
the
Company
in
writing
are
subject
to
approval
and
acceptance
by
the
Company.
The
Company
shall use every
reasonable effort to supply the Products to the
Distributor promptly in accordance with
the delivery times referred to in the
Distributor’s orders.
Distributors Agreement
2.2 Company
shall not be obliged to continue the manufacture
of all or any of the Products, and shall
be entitled to make such modifications
to the specifications of the Products as it deems
fit and each
order for the Products
shall constitute a separate contract, and any
default by the Company in relation
to
any one order shall not entitle the Distributor to
treat this Agreement as terminated.
2.3 The Distributor shall, in respect
of each order for the Products be responsible for:
2.3.1
Ensuring
the
accuracy
of
the
order
and
providing
the
Company
with
any
information
necessary to
enable the Company to fulfil the order and to
comply with all labelling, marketing
and other applicable legal requirements
in the Territory; and
2.3.2
Obtaining
any
necessary
import
licenses,
certificates
of
origin
or
requisite
documents,
and
paying
all
applicable
customs,
duties
and
taxes
in
respect
of
the
importation
of
the
Products
into the Territory and their resale in the
Territory.
2.4 Upon receipt
and confirmation of each order, the Company shall
as soon as is practicable inform
the
Distributor
of
its
estimated
delivery
date.
The
Company
shall
use
all
reasonable
endeavours
to
meet the delivery date.
2.5 The Distributor may
reschedule the delivery dates for the Products by
up to four (4) weeks after
the date
specified in the order provided notice of such
revised delivery date is given to the Company
as promptly as possible. In such case
the Company may invoice the Distributor for its
costs of storing
the Products from the
date four (4) weeks after the notification that
the Products concerned are ready
for
dispatch against the revised date referred to
above.
2.6 The title to the
Products shall not pass to the Distributor until
the Company has received payment
in
full for all Products, equipment and parts
supplied and all services rendered by the Company
at any
time to the Distributor.
2.7
The
company
shall
deliver
the
Products
Ex-works
HaiLing
Industrial
Park,
Taizhou
City,
packed
ready
for
shipment
unless
otherwise
agreed
in
writing
and
risk
of
loss
of
or
damage
to
any
consignment
of
the
products
shall
pass
to
the
Distributor
from
the
time
the
company
notifies
the
Distributor that the Products are
available for collection or from the time of
delivery to the carrier at
the
Company’s premises, whichever is
earlier.
2.8
The
Company’s
standard
terms
and
conditions
of
sale
as
set
out
in
Schedule
2
here
to
or
any
modification
thereof
from
time
to
time
shall
apply
to
all
sales
of
the
Products
to
the
Distributor
pursuant to this
Agreement, except to the extent that if any of the
same are inconsistent with any of
the
provisions of this Agreement, the latter shall
prevail.
3
Prices and payment
3.1 All
Products to be supplied by the Company pursuant to
this Agreement shall be sold on an
Ex-
works basis, and accordingly the
Distributor shall, in addition to the price, be
liable for arranging and
paying all
costs of transport and insurance.
3.2 Where the Company agrees to arrange
for the transportation and insurance it does so as
agent for
the
Distributor
and
the
Distributor
shall
reimburse
the
Company
the
full
costs
thereof
and
all
the
applicable
provisions
of
this
Agreement
shall
apply
to
the
payment
of
such
costs
as
they
apply
to
payment of the price of the Products.
3.3 The prices for all
Products and spare parts relating thereto to be
supplied hereunder shall be the
Companies Ex-works list prices from
time to time (inclusive of packaging costs) less a
percentage to
be agreed between the
parties in writing from time to time and
accordingly the Company shall:
3.3.1 Supply to the Distributor up to
date copies of all price lists for the Products
from time to
time; and
3.3.2 Give the Distributor not less
than three (3) months notice in writing of any
alteration in
such list prices, and the
prices as so lettered shall apply to all Products
delivered on and after
the applicable
date of the increase, other than outstanding
orders unless delivery of any such
order has been delayed at the request
of the Distributor.
3.4 The
terms of Payment for the Products and Spare Parts
are by 30% deposit with Order & Balance
on sight of shipping document.
3.5
The
agreed
payment
term
is
60
days
from
the
date
of
delivery
of
the
Product.
The
Distributors
credit is
limited to 10000?.
3.6
If
the
Distributor
fails
to
pay
the
price
for
any
Products
or
spare
parts
the
Company
shall
be
entitled
(without prejudice to any other right or remedy it
may have) to:
3.6.1 Cancel
or suspend any further delivery to the Distributor
under any order; and
3.6.2
Sell
or
otherwise
dispose
of
any
Products
which
are
the
subjects
of
any
order
by
the
Distributor, whether or not
appropriated thereto, and the proceeds of sale
set-off against the
overdue payment.
3.7
All prices for the Products are exclusive of any
applicable value or any other sales tax, for which
the Distributor shall be additionally
liable and all
payments
shall be made by the Distributor in Euros by
transfer to such bank account as the Company
may from time notify in writing.
4 Marketing of the
products
4.1 The
Distributor shall use its best endeavours to
promote the sale of the Products throughout the
Territory.
Expenses
due
to
trade
fairs,
exhibition,
marketing
and
other
sales
promoting
measures,
which the Distributor undertakes on
this initiative, shall be paid for by the Company
unless otherwise
agreed in writing.
4.2 The Company will supply
the Distributor with sales material for use in the
Territory in such format
as agreed
between the parties.
4.3 In
connection with the promotion and marketing of the
Products the Distributor shall:
4.3.1 Make clear, in all dealings with
customers and prospective customers, that it is
acting as
distributor of the Products
and not as agent of the Company; and
4.3.2 Comply with all legal
requirements from time to time in force relating
to the storage and
sale of the
Products; and
4.3.3 Provide
to the Company copies of its up to date price
list; and
4.3.4 Use in
relation to the Products only such advertising,
promotional and selling materials
as
are approved in writing by the Company.
4.4 The marketing plan for
the Products in the Territory shall be agreed in
writing within six months of
the date
of this Agreement in respect of Russia and for
subsequent periods of 12 months.
4.5 The Distributor shall provide an
after sales service for customers in relation to
the servicing of the
Products
to
the
Company’s
reasonable
satisfaction
and
shall
en
sure
that
it
maintains
an
adequate
competent
engineering service staff to enable the efficient
servicing of the Products to take place.
5 Inspection and
acceptance
5.1 Testing and
inspection shall be carried out by the Company at
its manufacturing location before
the
Products are shipped. The Distributor may
conduct
at
its
own
expense
an
acceptance
test
in
order
to
establish
that
the
Products
fully
meet
specifications. The Distributor will
assist the Company to obtain all material
concerning the standards,
norms
and
approvals
for
the
Products
in
respect
of
the
Territory
and
shall
assist
and
help
the
Company
by reasonable means in order to ensure that the
products are acceptable for use under the
laws of the Territory.
5.2
The
Distributor
shall
require
that
its
customer
has
the
period
of
14
days
after
the
Product
has
passed
the
Distributor’s
acceptance
test
referred
to
in
Schedule
5.1
above
an
d
after
the
installation
and commission
of the Product within which to notify the
Distributor of any claim in the event that the
Product does not meet the terms of
order in respect of its technical features and
functions associated
with the fitness
of purpose for which the Product was ordered.
5.3
In
the
event
that
any
of
the
Products
shall
fail
to
pass
the
Distrib
utor’s
acceptance
test,
the
Distributor
shall
promptly
notify
the
Company
of
the
defect
within
seven
(7)
working
days
of
completion of such acceptance test and
the Company undertakes to replace, with the
assistance of the
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