Exclusive Distribution Agreement
Exclusive Distribution Agreement
Exclusive Distribution Agreement
AGREEMENT
THIS EXCLUSIVE DISTRIBUTION AGREEMENT (this Agreement or this Exclusive
Distribution Agreement) is entered into effective as of [EFFECTIVE DATE] (the Effective Date)
by and between [SUPPLIER.Company] (Supplier)
and [DISTRIBUTOR.Company] (Distributor).
The parties agree as follows:
1. APPOINTMENT.
1. Subject to the terms and conditions of this Exclusive Distribution Agreement, Supplier
appoints Distributor, and Distributor accepts such appointment and agrees to act as
Suppliers exclusive distributor of the Supplier Products (defined below) within the
geographical territory defined as follows (the Territory):
2. Distributor agrees to exercise its best efforts to (a) promote the sale of and obtain orders for
the Supplier Products in the Territory; (b) abide by Suppliers policies and procedures with
regard to the purchase, sale and support of Supplier Products; and (c) conduct its business
in a manner that reflects favorably at all times on the Supplier Products and the good name,
goodwill and reputation of Supplier or its affiliates. Distributor acknowledges and agrees
that it has no rights or claims of any type to the Supplier Products, or any aspect thereof,
except such rights as are created by this Exclusive Distribution Agreement. Distributor
agrees that it shall not and is not authorized to promote, resell, deliver, install, service or
otherwise support the Supplier Products outside of the Territory.
3. APPROVALS.
Distributor shall obtain, at its own expense, such approvals, consents, certifications, permits and
other authorizations, including all approvals as are required to qualify the Supplier Products for
sale and use in the Territory for all purposes, both governmental and non-governmental
(collectively, the Approvals), as soon as is reasonably practicable; provided, however, that
Supplier shall not be obligated to deliver any Supplier Products unless and until Distributor
provides Supplier with satisfactory evidence that such Approvals have been obtained. Supplier
agrees to cooperate with Distributor to obtain such Approvals.
4. EXCLUSIVITY.
Suppliers appointment of Distributor in Section 1 of this Agreement is an exclusive appointment
to distribute the Products in the Territory. Supplier shall not independently advertise, solicit and
make sales of Supplier Products, support Supplier Products or appoint additional distributors for
Supplier Products in the Territory.
5. SALES TARGETS.
Distributor shall use reasonable commercial efforts to purchase and sell during each calendar
year at least the dollar value of Supplier Products listed in this Section below (the Annual
Target). If Distributor does not purchase and sell the Annual Target during a given calendar
year, Supplier may terminate this Agreement effective immediately upon notice to Distributor
(but Supplier may not require Distributor to purchase or sell any additional Supplier Products in
order to meet the Annual Target Amount).
8. ORDERS.
All orders will be transmitted by Distributor to Supplier and shall be subject to acceptance in
writing by Supplier. Supplier may (in its sole discretion) refuse acceptance of any order. Each
order submitted shall constitute an offer by Distributor to purchase or license the Supplier
Products described in such order and, upon acceptance by Supplier, shall give rise to a
contractual obligation of Distributor to purchase or license the said products on the terms and
conditions set forth in this Agreement. Conflicting, inconsistent or additional terms or conditions
contained in any order submitted by Distributor shall not be binding unless Supplier specifically
accepts such terms or conditions in writing. All expenses arising out of the change or
cancellation of an order after acceptance by Supplier, including the cost of diversion,
cancellation or reconsignment of shipments, and any reasonable restocking charge, shall be
paid by Distributor to Supplier, on demand.
Products delivered until amounts for which Distributor is responsible under this Agreement have
been received by Supplier. Supplier shall have all rights of a secured party, including the right to
file a financing statement under the Uniform Commercial Code or a comparable law within the
Territory to protect Suppliers security interest. In the event Distributor defaults in its payment
obligations, Supplier will have the right to enter the premises of Distributor to recover
possession of all Supplier Products on said premises, to recover all Supplier Products supplied
by Distributor to its customers and associated supplies or software, and to pursue any other
remedy existing at law or equity. Distributor, for itself and on behalf of its customers, hereby
waives a prior hearing and demand for Suppliers exercise of such rights.
literature, signage or other representations in the name of Supplier (or any of its affiliates) or to
represent itself as Supplier (or any of its affiliates) or make commitments on behalf of Supplier
(or any of its affiliates) without the express, written permission of Supplier. Distributor expressly
agrees that no license to use Supplier (or any of its affiliates trademarks, trade names, service
marks or logos (collectively, the Supplier Trademarks) is granted by this Agreement.
Distributor may, however, indicate in its advertising and marketing materials that it is a
distributor for Supplier Products and may, as necessary, incidentally use the Supplier
Trademarks in its sales/marketing efforts. Upon request by Supplier, Distributor will place proper
trademark, copyright and patent notices in its advertisements, promotional brochures and other
marketing materials for Supplier Products. Supplier reserves the right to review Distributors
marketing and sales materials prior to their publication or use. No rights shall inure to Distributor
as a result of any such use or reference, and all such rights, including goodwill shall inure to the
benefit of and be vested in Supplier.
Upon termination of this Agreement for any reason, Distributor will immediately cease using the
Supplier Trademarks as allowed in this Section and shall immediately take all appropriate and
necessary steps to (a) remove and cancel any listings in public records, telephone books, other
directories, remove any visual displays or literature at Distributors location, the Internet and
elsewhere that would indicate or would lead the public to believe that Distributor is the
representative of Supplier (or any of its affiliates) or Suppliers (or any of its affiliates) products
or services; and (b) cancel, abandon or transfer (as requested by Supplier) any product
licenses, trade name filings, trademark applications or registrations or other filings with the
governments of the Territory (whether or not such filings were authorized by Supplier) that may
incorporate the Supplier Trademarks or any marks or names confusingly similar to the Supplier
Trademarks. Upon Distributors failure to comply with this paragraph, Supplier may make
application for such removals, cancellations, abandonments or transfers in Distributors name.
Distributor shall render assistance to and reimburse Supplier for expenses incurred in enforcing
this paragraph.
18. REPORTING.
Every month Distributor shall e-mail to Supplier a rolling 3 month, nonbinding sales forecast of
the expected sales of Supplier Products in the Territory. In addition, Distributor shall furnish
such other information in a timely manner in response to Supplier requests for information
pertaining to Distributors activities in the Territory. Such requests may include, prospect lists
and status of prospect sales activity, information applicable to specific sales activities, data
regarding competition in the Territory, product operational data and other information required
by Supplier to effectively coordinate its international sales and marketing efforts.
AFTER NUMBER OF YEARS] years following the Effective Date. Either party may terminate
this Agreement as follows: (a) Immediately upon [NUMBER DAYS PRIOR NOTICE] days prior
notice with or without cause; (b) Immediately, for any breach or default of this Agreement by the
other party which has not been cured within [NUMBER DAYS AFTER DELIVERY] days after
the delivery of notice thereof to the party alleged to be in breach, specifying with particularity the
condition, act, omission or course of conduct asserted to constitute such breach or default; (c)
Immediately, upon the dissolution, insolvency or any adjudication in bankruptcy of, or any
assignment for the benefit of creditors by, the other party or if the other party ceases to conduct
business in the ordinary or normal course; (d) Immediately, if required by law or by any rule,
regulation, order, decree, judgment or other governmental act of any governmental authority; or
(e) Immediately by Supplier if Supplier reasonably suspects that Distributor breached any of its
obligations of confidentiality or protection of Suppliers proprietary rights.
Supplier shall have no liability to Distributor by reason of any termination by Supplier. Distributor
shall indemnify and hold harmless Supplier from and against any and all liability, loss, damages
and costs (including reasonable attorneys fees) arising out of any claim by Distributor or any
third party standing in the right of Distributor to any right of entitlement contrary to the express
terms of this Section.
22. INDEMNIFICATION.
Distributor agrees to indemnify and hold Supplier harmless from any and all actions, awards,
claims, losses, damages, costs and expenses (including reasonable attorneys fees) attributable
to Distributors breach of this Agreement or to any negligent, grossly negligent, willful or
unlawful acts or omissions of Distributor, its employees, officers, agents, subcontractors,
dealers or representatives.
event that the performance of a party is delayed for more than 6 months, the other party shall
have the right, which shall be exercisable for so long as the cause of such delay shall continue
to exist, to terminate this Agreement without liability for such termination.
28. SEVERABILITY.
In the event that any provision of this Agreement shall be unenforceable or invalid under any
applicable law or be so held by applicable court or arbitration decision, such unenforceability or
invalidity shall not render this Agreement unenforceable or invalid as a whole, and, in such
event, such provisions shall be changed and interpreted so as to best accomplish the objectives
of such unenforceable or invalid provision within the limits of applicable law or applicable court
or arbitration decision.
29. CONSTRUCTION.
The headings or titles preceding the text of the Sections and Subsections are inserted solely for
convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect
the meaning, construction or effect of this Agreement. Both parties have participated in the
negotiation and drafting of this Agreement. This Agreement is executed in the English language
and may be translated into another language for informational purposes only. In the event an
ambiguity or question of intent or interpretation arises, the English version of this Agreement
shall prevail and this Agreement shall be construed as if drafted by both of the parties and no
presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the
authorship of any of the provisions of this Agreement.
30. NOTICE.
Any notice, consent or other communication required or permitted under this Agreement shall
be written in English and shall be deemed given when (a) delivered personally; (b) sent by
confirmed facsimile transmission; or (c) sent by commercial courier with written verification of
receipt returned to the sender. Notice, consent or other communications (but not service of
process) may also be given by e-mail. Rejection or other refusal to accept or the inability to
deliver because of changed address or facsimile number of which no notice was given shall be
deemed to constitute receipt of the notice, consent or communication sent. Names, addresses
and facsimile numbers for notices (unless and until written notice of other names, addresses
and facsimile numbers are provided by either or both parties) are provided below.
________________________________
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[DISTRIBUTOR.FirstName] [DISTRIBUTOR.LastName]
[DISTRIBUTOR TITLE]
[SUPPLIER.Company]
________________________________
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[SUPPLIER.FirstName] [SUPPLIER.LastName]
[SUPPLIER TITLE]