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DABALASH Distribution Agreement For USA 2023
DABALASH Distribution Agreement For USA 2023
DABALASH Distribution Agreement For USA 2023
between
R & G Business, LLC
and
Distributor: ___________________________________________________
Dated: ________________
TABLE OF CONTENTS
2
Section 9.02 Delivery. .............................................................................................. 17
Section 9.03 Late Delivery. ..................................................................................... 17
Section 9.04 Inspection. .......................................................................................... 17
Section 9.05 Limited Right of Return. .................................................................... 17
Section 9.06 Title and Risk of Loss. ....................................................................... 17
ARTICLE X PRICE AND PAYMENT ............................................................................. 18
Section 10.01 Price. ................................................................................................. 18
Section 10.02 Shipping Charges, Insurance, and Taxes. ..................................... 18
Section 10.03 Payment Terms. ............................................................................... 18
Section 10.04 Unsatisfactory Credit Status. .......................................................... 18
Section 10.05 Invoice Disputes. ............................................................................. 19
Section 10.06 Late Payments. ................................................................................ 19
Section 10.07 No Setoff. .......................................................................................... 19
Section 10.08 Security Interest. .............................................................................. 19
ARTICLE XI RESALE OF THE GOODS ....................................................................... 20
Section 11.01 Credit Risk on Resale to Customers. ............................................. 20
Section 11.02 Resale Prices. .................................................................................. 20
ARTICLE XII COMPLIANCE WITH LAWS .................................................................... 20
Section 12.01 General Compliance With Laws Representation and Warranty. .. 20
Section 12.02 General Compliance With Laws Covenant. ................................... 20
ARTICLE XIII INTELLECTUAL PROPERTY RIGHTS .................................................. 20
Section 13.01 Ownership. ....................................................................................... 20
Section 13.02 Seller's Trademark License Grant. ................................................. 21
Section 13.03 License to Translated Marketing Materials and Other
Documentation......................................................................................................... 21
Section 13.04 Use of the Name ............................................................................... 21
Section 13.05 Prohibited Acts. ............................................................................... 22
Section 13.06 Seller's Trademark Notices. ............................................................ 23
Section 13.07 No Continuing Rights. ..................................................................... 23
ARTICLE XIV AUDIT AND INSPECTION RIGHTS ....................................................... 23
Section 14.01 Audit Rights. .................................................................................... 23
Section 14.02 Inspection Rights. ............................................................................ 24
ARTICLE XV TERM; TERMINATION............................................................................ 24
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Section 15.01 Initial Term. ....................................................................................... 24
Section 15.02 Renewal Term. ................................................................................. 24
Section 15.03 Seller's Right to Terminate.............................................................. 24
Section 15.04 Distributor's Right to Terminate. .................................................... 25
Section 15.05 Effect of Expiration or Termination. ............................................... 25
Section 15.06 Post-Term Sale Period..................................................................... 26
Section 15.07 Seller's Buy-Back Right................................................................... 27
Section 15.08 End of Term Purchase Restrictions. .............................................. 27
ARTICLE XVI CONFIDENTIALITY................................................................................ 27
Section 16.01 Protection of Confidential Information. ......................................... 27
ARTICLE XVII REPRESENTATIONS AND WARRANTIES .......................................... 28
Section 17.01 Distributor's Representations and Warranties. ............................. 28
Section 17.02 Limited Product Warranty. .............................................................. 29
Section 17.03 Warranty Limitations. ...................................................................... 29
Section 17.04 Extent of Liability. ............................................................................ 29
Section 17.05 Warranties Disclaimer; Non-Reliance. ........................................... 30
ARTICLE XVIII INDEMNIFICATION.............................................................................. 30
Section 18.01 Distributor General Indemnification. .............................................. 30
Section 18.02 Seller General Indemnification. ...................................................... 31
Section 18.03 Exceptions and Limitations on General Indemnification. ............ 32
Section 18.06 Sole Remedy. ................................................................................... 32
ARTICLE XIX LIMITATION OF LIABILITY .................................................................... 32
Section 19.01 No Liability for Consequential or Indirect Damages. .................... 32
Section 19.02 Maximum Liability for Damages. .................................................... 32
ARTICLE XX INSURANCE ........................................................................................... 33
Section 20.01 Distributor Insurance Obligations. ................................................. 33
ARTICLE XXI MISCELLANEOUS ................................................................................. 33
Section 21.01 Further Assurances. ........................................................................ 33
Section 21.02 Entire Agreement. ............................................................................ 33
Section 21.03 Survival; Limitation of Actions. ...................................................... 33
Section 21.04 Notices. ............................................................................................. 34
Section 21.05 Interpretation. ................................................................................... 34
Section 21.06 Headings. .......................................................................................... 35
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Section 21.07 Severability. ...................................................................................... 35
Section 21.08 Amendment and Modification. ........................................................ 35
Section 21.09 Waiver. .............................................................................................. 35
Section 21.10 Cumulative Remedies...................................................................... 35
Section 21.11 Equitable Remedies. ........................................................................ 36
Section 21.12 Assignment. ..................................................................................... 36
Section 21.13 Successors and Assigns. ............................................................... 36
Section 21.14 No Third-Party Beneficiaries. .......................................................... 36
Section 21.15 Choice of Law................................................................................... 37
Section 21.16 Choice of Forum. ............................................................................. 37
Section 21.17 Waiver of Jury Trial.......................................................................... 37
Section 21.18 Dispute Resolution. ......................................................................... 37
Section 21.19 Counterparts. ................................................................................... 37
Section 21.20 Force Majeure. ................................................................................. 38
Section 21.21 No Public Announcements. ............................................................ 38
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Distribution Agreement
This Distribution Agreement (the "Agreement"), dated as of [DATE], is entered into by and
between R & G Business, LLC, an Arizona limited liability company having its principal place
of business at 6388 N. Pinnacle Ridge Dr., Tucson, AZ 85718 ("Seller"), and [DISTRIBUTOR
NAME], a [STATE OF ORGANIZATION] [TYPE OF ENTITY] having its principal place of
business at [BUSINESS ADDRESS] ("Distributor", and together with Seller, the "Parties", and
each, a "Party").
Recitals
WHEREAS, Seller is in the business of manufacturing and selling the Goods (as defined
below);
WHEREAS, Distributor is in the business of marketing and reselling products that are
similar in kind and quality to the Goods;
WHEREAS, Distributor wishes to purchase the Goods from Seller and resell the Goods
to Customers (as defined below), subject to the terms and conditions of this Agreement; and
WHEREAS, Seller wishes to sell the Goods to Distributor and appoint Distributor as a
non-exclusive distributor under the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set
out herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:
ARTICLE I
DEFINITIONS
Capitalized terms have the meanings set out in this Section, or in the Section in which they
first appear in this Agreement.
"Action" means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry,
audit, notice of violation, proceeding, litigation, citation, summons, subpoena, or investigation of
any nature, civil, criminal, administrative, regulatory, or other, whether at law, in equity or
otherwise.
"Affiliate" of a Person means any other Person that directly or indirectly, through one or
more intermediaries, Controls, is Controlled by, or is under common Control with, this Person.
"Business Day" means any day except Saturday, Sunday, or a federal holiday.
"Claim" means any Action made or brought against a Person entitled to indemnification
under ARTICLE XVIII.
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"Confidential Information" has the meaning set out in ARTICLE XVI.
"Control" (and with correlative meanings, the terms "Controlled by" and "under common
Control with") means, regarding any Person, the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of another Person, whether through
the ownership of voting securities, by contract, or otherwise.
"Customer" means a purchaser that is (a) a Reseller located in the Territory who
purchases Goods for resale to End Users or (b) an End User.
"Defective Goods" means goods that are Defective, which for the avoidance of doubt,
includes any Nonconforming Goods accepted by Distributor under Section 9.04.
"Delayed Shipment Date" has the meaning set out in Section 9.03.
"Delivery Point" means the street address specified in the applicable Purchase Order.
"Distributor" has the meaning set out in the preamble of this Agreement.
"Distributor Indemnified Party" has the meaning set out in Section 18.02.
"Distributor Indemnifying Party" has the meaning set out in Section 18.01.
"End User" means the final purchaser that (a) has acquired a Good from Distributor for
(i) its own internal use and not for resale, remarketing, or distribution or (ii) incorporation into its
own products and (b) is an individual or entity located in the Territory.
"Excess Goods" means Goods that, when counted together with all other Goods having
the same SKU and received by Distributor under the same Purchase Order, are in excess of the
quantities of the Goods ordered under that Purchase Order.
"Force Majeure Event" has the meaning set out in Section 21.20.
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"Forecast" means, regarding any three-month period, a good faith forecast of
Distributor's demand for each calendar month during the period, by Goods, which approximates,
as nearly as possible, based on information available at the time to Distributor, the Purchase
Orders the Distributor will place in these future calendar months.
"Goods" means those goods that are identified in Schedule 1, as Seller may amend under
and in accordance with Section 7.02. For the purposes of ARTICLE IX, Goods are deemed to
include Nonconforming Goods.
"Governmental Order" means any order, writ, judgment, injunction, decree, stipulation,
award, or determination entered by or with any Governmental Authority.
"Indemnified Party" means Seller Indemnified Party and Distributor Indemnified Party,
collectively.
"Intellectual Property Rights" means all industrial and other intellectual property rights
comprising or relating to: (a) Patents; (b) Trademarks; (c) internet domain names, whether or not
Trademarks, registered by any authorized private registrar or Governmental Authority, web
addresses, web pages, website, and URLs; (d) works of authorship, expressions, designs, and
design registrations, whether or not copyrightable, including copyrights and copyrightable
works, software, and firmware, [application programming interfaces, architecture, files, records,
schematics,] data, data files, and databases and other specifications and documentation; (e) Trade
Secrets; [(f) semiconductor chips, mask works, and the like;] and [(f)/(g)] all industrial and other
intellectual property rights, and all rights, interests, and protections that are associated with,
equivalent or similar to, or required for the exercise of, any of the foregoing, however arising, in
each case whether registered or unregistered and including all registrations and applications for,
and renewals or extensions of, these rights or forms of protection under the Laws of any
jurisdiction throughout in any part of the world.
"Last-Time Buy Period" has the meaning set out in Section 7.02(a).
"Law" means any statute, law, ordinance, regulation, rule, code, constitution, treaty,
common law, Governmental Order, or other requirement or rule of law of any Governmental
Authority.
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"Limited Warranty" has the meaning set out in Section 17.02.
"Minimum Order Commitment" means the minimum order commitments as set out in
Exhibit A.
"Nonconforming Goods" means any good received by Distributor from Seller under a
Purchase Order that: (a) is not a Good; (b) does not conform to the SKU listed in the applicable
Purchase Order; or (c) on visual inspection, Distributor reasonably determines are otherwise
Defective.
"Party" has the meaning set out in the preamble to this Agreement.
"Person" means any individual, partnership, corporation, trust, limited liability entity,
unincorporated organization, association, Governmental Authority, or any other entity.
"Post-Term Sale Period" has the meaning set out in Section 15.06.
"Purchase Order Transaction Terms" means any one or more of the terms specified by
Distributor in a Purchase Order under Section 8.03. For the avoidance of doubt, the term
Purchase Order Transaction Terms does not include any general terms or conditions of any
Purchase Order.
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"Reseller" means the Distributor's retailers or other resellers who purchase Goods for
resale to End Users.
"Seller" has the meaning set out in the preamble of this Agreement.
"Seller Indemnified Party" has the meaning set out in Section 18.01.
"Seller Indemnifying Party" has the meaning set out in Section 18.02.
"Seller's Intellectual Property Rights" means all Intellectual Property Rights owned by
or licensed to Seller.
"Term" has the meaning set out in Section 15.01 and Section 15.02.
"Trademarks" means all rights in and to US and foreign trademarks, service marks,
trade dress, trade names, brand names, logos, trade dress, corporate names, and domain names
and other similar designations of source, sponsorship, association, or origin, together with the
goodwill symbolized by any of the foregoing, in each case whether registered or unregistered
and including all registrations and applications for, and renewals or extensions of, these rights
and all similar or equivalent rights or forms of protection in any part of the world.
"Trade Secrets" means all inventions, discoveries, trade secrets, business and technical
information and know-how, databases, data collections, patent disclosures, and other confidential
and proprietary information and all rights therein.
"US" means the United States of America, including its territories, possessions, and
military bases.
"Warranty Period" has the meaning set out in the written warranty statement provided
by Seller to Customer as described in Section 17.02.
ARTICLE II
APPOINTMENT AND RELATIONSHIP
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Section 2.02 No Right to Appoint a Sub-distributor. Subject to Section 21.12,
Distributor shall not, without the prior written consent of Seller:
(b) sell the Goods to any person or entity who Distributor knows or has reason
to believe is purchasing Goods for resale other than at retail to End Users.
ARTICLE III
NO FRANCHISE OR BUSINESS OPPORTUNITY AGREEMENT
ARTICLE IV
TERMS OF AGREEMENT PREVAIL OVER DISTRIBUTOR'S PURCHASE ORDER
Section 4.01 Terms of Agreement Prevail Over Distributor's Purchase Order. This
Agreement is expressly limited to the terms of this Agreement and the Purchase Order
Transaction Terms contained in the applicable Purchase Order. The terms of this Agreement
prevail over any terms or conditions contained in any other documentation related to the subject
matter of this Agreement and expressly exclude any of Distributor's general terms and
conditions contained in any Purchase Order or other document issued by Distributor.
ARTICLE V
GENERAL DISTRIBUTOR PERFORMANCE OBLIGATIONS
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Section 5.01 Maintaining Facilities and Inventory. Distributor shall, in good faith
and at its own expense:
(b) purchase and maintain at all times a representative quantity of each Good
sufficient for and consistent with the Distributor's Customers' sales needs.
Section 5.02 Marketing and Selling Goods. Subject to Section 5.06, Distributor shall,
in good faith and at its own expense:
(a) market, advertise, promote, and sell the Goods to Customers located in the
Territory consistent with good business practice, in each case using its best efforts to
maximize the sales volume of the Goods;
(c) only resell or offer to resell the Goods that Distributor currently has in
inventory or that have been ordered from Seller and which order has been accepted by
Seller as available for delivery to Distributor unless Distributor has received prior written
authorization from Seller;
(d) develop and execute a marketing plan sufficient to fulfill its obligations
under this Agreement;
(e) have sufficient knowledge of the industry and products competitive with
each Good (including specifications, features, and benefits) so as to be able to explain in
detail to the Customers:
(i) the differences between the Good and competing products; and
(f) observe all directions and instructions given to it by Seller concerning the
marketing, advertisement, and promotion of the Goods, including Seller's sales,
marketing, and merchandising policies as they currently exist or as they may hereafter be
changed by Seller, to the extent that these marketing materials, advertisements, or
promotions refer to the Goods or otherwise use Seller's Trademarks;
(g) in any and all contact between Distributor and any Customer, Distributor
must identify to the Customer Distributor's full legal name, trade name, or both;
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(h) market, advertise, promote, and resell Goods and conduct business in a
manner that reflects favorably at all times on Goods and the good name, goodwill, and
reputation of Seller; and
(i) promptly Notify Seller of and address and investigate any complaint or
adverse claim about any Good or its use of which Distributor becomes aware; provided,
that nothing in this Agreement requires Distributor to reveal proprietary pricing
information.
Section 5.03 Reporting and Recordkeeping. Distributor shall, at its own expense:
(a) within five (5) Business Days after the end of each shipment month of the
Term, submit to Seller complete and accurate monthly reports of inventory, marketing,
and sales of the Goods; and
(b) maintain books, records, and accounts of all transactions and activities
covered by this Agreement and permit full examination thereof by Seller and its
Representatives in accordance with ARTICLE XIV.
Section 5.04 Authority to Perform Under this Agreement. Distributor shall, at its
own expense, obtain and maintain required certifications, credentials, licenses, and permits
necessary to conduct business in accordance with this Agreement.
Section 5.05 Government Approval. If at any time during the Term or the Post-Term
Sale Period any notification, registration, or approval is required for giving legal effect in any
applicable jurisdiction to this Agreement or the transactions contemplated under this
Agreement, Distributor shall:
(c) keep Seller currently informed of its efforts regarding this Section 5.05.
Seller is not obligated to ship any Goods or other materials to Distributor under this
Agreement until Distributor has provided Seller with satisfactory evidence that this approval,
notification, or registration is not required or that it has been obtained.
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(c) separate any accessories sold, bundled, or packaged with any Good from
the Good;
(d) market or distribute the Goods other than in the form and packaging as
delivered by Seller to Distributor under this Agreement;
(f) sell or offer to sell any of the Goods outside the Territory, except to retail
outlets located outside the Territory that are owned by a retailer with a principal
purchasing headquarters within the Territory, but only if:
(i) the sales are made with the prior written consent of Seller (which
consent may be withheld or withdrawn for any or no reason); or
(h) sell or offer to sell any Goods or other Seller-branded goods other than the
goods purchased from Seller or another distributor authorized by Seller.
ARTICLE VI
SELLER PERFORMANCE OBLIGATIONS
Section 6.01 Seller Performance Obligations. During the Term and the Post-Term
Sale Period Seller shall:
(a) provide any information and support in the Territory that may be
reasonably requested by Distributor regarding the marketing, advertising, promotion, and
sale of Goods sold to Distributor under this Agreement; and
ARTICLE VII
AGREEMENT TO PURCHASE AND SELL THE GOODS
Section 7.01 Terms of the Sale. Seller shall sell Goods to Distributor at the Prices and
on the terms and conditions set out in this Agreement.
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(a) remove Goods from Schedule 1 on 10 Business Days' Notice to
Distributor (the period of time from the delivery of Notice through the end of the notice
period, the "Last-Time Buy Period"), but only if Seller discontinues all sales of these
Goods; and
in each case, without obligation to modify or change any Goods previously delivered or
to supply new Goods meeting earlier specifications, except as may be required under Section
7.03.
Section 7.03 Last-Time Buy. Distributor may make one last-time buy during the Last-
Time Buy Period of enough Goods to fulfill its then-pending commitments to its Customers.
Seller shall use commercially reasonable efforts to supply the last-time buy and is in no event
required to supply any Good if Seller determines that:
(c) the sale would limit Seller's ability to fill orders of its other customers; or
(d) it does not have an adequate inventory of Goods to fill the last-time buy
order.
ARTICLE VIII
ORDER PROCEDURE
Section 8.02 Purchase Order. Distributor shall issue all Purchase Orders to Seller
using the Dabalash App GA, or in written form via email, and shall cause all Purchase Orders to
contain the Purchase Order Transaction Terms. By placing a Purchase Order, Distributor makes
an offer to purchase Goods under the terms and conditions of this Agreement, including the
Purchase Order Transaction Terms, and on no other terms. Except regarding the Purchase Order
Transaction Terms, any variations made to the terms and conditions of this Agreement by
Distributor in any Purchase Order are void and have no effect.
Distributor shall specify the following information (collectively, the "Purchase Order
Transaction Terms") in each Purchase Order:
15
(a) a list of Goods to be purchased;
Section 8.04 Seller's Right to Accept or Reject Purchase Orders. Seller may, in its
sole discretion, accept or reject any Purchase Order. Seller may accept any Purchase Order by
confirming the order (whether by written confirmation, invoice, or otherwise) or by delivering
the Goods, whichever occurs first. No Purchase Order is binding on Seller unless accepted by
Seller as provided in this Agreement.
(a) Seller may without liability or penalty, cancel any Purchase Order placed
by Distributor and accepted by Seller, in whole or in part:
(b) Distributor has no right to cancel or amend any Purchase Order submitted
by it.
Section 8.06 Minimum Order Commitments. Distributor shall meet the Minimum
Order Commitments for each year of this Agreement. If Distributor fails to achieve the
Minimum Order Commitments, Seller may:
ARTICLE IX
SHIPMENT AND DELIVERY
Section 9.01 Shipment. Unless expressly agreed to by the Parties in writing, Seller
shall select the method of shipment of and the carrier for the Goods. Seller may, in its sole
discretion, without liability or penalty, make partial shipments of Goods to Distributor. Each
shipment constitutes a separate sale, and Distributor shall pay for the units shipped, whether the
shipment is in whole or partial fulfillment of a Purchase Order.
16
Section 9.02 Delivery. Unless expressly agreed to by the Parties, Seller shall deliver the
Goods to the Delivery Point, using Seller's or manufacturer's standard methods for packaging
and shipping the Goods. All Prices are CPT Delivery Point.
Section 9.03 Late Delivery. Any time quoted for delivery is an estimate only;
provided, however, that Seller shall use commercially reasonable efforts to deliver all Goods on
or before the requested delivery date. Subject to Section 21.20, Seller is not liable for or in
respect of any loss or damage arising from any delay in filling any order, failure to deliver, or
delay in delivery. Subject to Distributor's rights under this Section 9.03, no delay in the
shipment or delivery of any Good relieves Distributor of its obligations under this Agreement,
including accepting delivery of any remaining installment or other orders of Goods.
Section 9.04 Inspection. Distributor shall inspect Goods received under this Agreement
within three (3) Business Days of receipt (the "Inspection Period") of the Goods and either
accept or, if any Goods are Nonconforming Goods or Excess Goods, reject these Goods.
Distributor will be deemed to have accepted the Goods unless it Notifies Seller in writing of any
Nonconforming Goods or Excess Goods during the Inspection Period and furnishes written
evidence or other documentation as required by Seller. If Distributor timely Notifies Seller of
any Nonconforming Goods or Excess Goods, Seller shall determine, in its sole discretion,
whether the Goods are Nonconforming Goods or Excess Goods. If Seller determines that the
Goods are Nonconforming Goods or Excess Goods, it shall either, in its sole discretion:
(a) if the Goods are Nonconforming Goods, (i) replace the Nonconforming
Goods with conforming Goods, or (ii) refund the Price for the Nonconforming Goods; or
(b) if the Goods are Excess Goods, refund the Price for the Excess Goods.
Distributor shall ship, at its expense and risk of loss, all Nonconforming Goods and
Excess Goods to Seller's facility designated at the time by Seller. If Seller exercises its option to
replace Nonconforming Goods, Seller shall, after receiving Distributor's shipment of
Nonconforming Goods, ship to Distributor, at Seller's expense and risk of loss, the replaced
Goods to the Delivery Point.
Distributor acknowledges and agrees that the remedies set out in Section 9.04(a) and
Section 9.04(b) are Distributor's exclusive remedy for the delivery of Nonconforming Goods or
Excess Goods, subject to Distributor's rights under Section 17.02 and Section 17.04 regarding
any Nonconforming Goods for which Distributor has accepted delivery under this Section 9.04.
Section 9.05 Limited Right of Return. Except as provided under Section 9.04, Section
17.02, and Section 17.04, all sales of Goods to Distributor under this Agreement are made on a
one-way basis and Distributor has no right to return Goods purchased under this Agreement.
(a) Title to Goods shipped under any Purchase Order passes to Distributor on
Seller's delivery of such Goods to the carrier.
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(b) Risk of loss to Goods shipped under any Purchase Order passes to
Distributor on Seller's delivery of such Goods to the carrier.
ARTICLE X
PRICE AND PAYMENT
Section 10.01 Price. Distributor shall purchase the Goods from Seller at the prices set
out in Seller's distributor price list in effect when the Seller accepts the related Purchase Order
("Prices").
Section 10.02 Shipping Charges, Insurance, and Taxes. Seller or Distributor shall pay
for shipping charges and insurance costs in accordance with the commercial terms selected by
the Parties under ARTICLE IX. All Prices are exclusive of all sales, use, and excise taxes, and
any other similar taxes, duties, and charges of any kind imposed by any Governmental
Authority on any amounts payable by Distributor under this Agreement. Distributor is
responsible for all charges, costs, and taxes.
Section 10.03 Payment Terms. Seller shall issue periodic invoices to Distributor for all
Goods ordered in the previous period. Distributor shall pay all invoiced amounts due to Seller
within 10 Business Days from the date of the invoice, except for any amounts disputed by
Distributor in good faith. Distributor shall make all payments in U.S. Dollars (unless otherwise
agreed by Seller) by check or wire transfer in accordance with the following wire instructions:
(a) on written Notice, modify the payment terms specified in Section 10.03
for outstanding and future purchases, including requiring Distributor to pay cash in
advance or cash on delivery;
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(b) reject any Purchase Order received from Distributor;
(g) accelerate the due date of all amounts owing by Distributor to Seller.
No actions taken by Seller under this Section 10.04 (nor any failure of
Seller to act under this Section 10.04) constitute a waiver by Seller of any of its rights to
enforce Distributor's obligations under this Agreement including the obligation of
Distributor to make payments as required under this Agreement.
Section 10.05 Invoice Disputes. Distributor shall Notify Seller in writing of any dispute
with any invoice (along with substantiating documentation) within 10 Business Days from the
Distributor's receipt of the invoice. Distributor will be deemed to have accepted all invoices for
which Seller does not receive timely Notice of disputes and shall pay all undisputed amounts
due under these invoices within the period set out in Section 10.03. The Parties shall seek to
resolve all disputes expeditiously and in good faith in accordance with the dispute resolution
provisions set out in Section 21.18. Notwithstanding anything to the contrary, Distributor shall
continue performing its obligations under this Agreement during any dispute, including, without
limitation, Distributor's obligation to pay all due and undisputed invoice amounts in accordance
with the terms and conditions of this Agreement.
Section 10.06 Late Payments. Except for invoiced payments that Distributor has
successfully disputed, Distributor shall pay interest on all late payments, calculated daily and
compounded monthly, at the lesser of the rate of 1% per month or the highest rate permissible
under applicable Law. Distributor shall also reimburse Seller for all costs incurred in collecting
any late payments, including, without limitation, attorneys' fees. In addition to all other
remedies available under this Agreement or at Law (which Seller does not waive by the exercise
of any rights under this Agreement), Seller may (a) suspend the delivery of any Goods if
Distributor fails to pay any amounts when due under this Agreement and (b) terminate this
Agreement under the terms of Section 15.03(a).
Section 10.07 No Setoff. Distributor shall perform its obligations under this Agreement
without setoff, deduction, recoupment, or withholding of any kind for amounts owed or payable
by Seller, whether relating to Seller's or Seller's Affiliates' breach, bankruptcy, or otherwise and
whether under this Agreement, any Purchase Order, any other agreement between (a)
Distributor or any of its Affiliates and (b) Seller or any of its Affiliates, or otherwise.
Section 10.08 Security Interest. To secure Distributor's prompt and complete payment
and performance of any and all present and future indebtedness, obligations, and liabilities of
Distributor to Seller under this Agreement, Distributor hereby grants Seller a first-priority
19
security interest, prior to all other liens and encumbrances, in all inventory of products
purchased under this Agreement (including Goods, Nonconforming Goods, and Excess Goods),
wherever located, and whether now existing or hereafter arising or acquired from time to time,
and in all accessions thereto and replacements or modifications thereof, as well as all proceeds
(including insurance proceeds) of the foregoing. Seller may file a financing statement for the
security interest and Distributor shall execute any statements or other documentation necessary
to perfect Seller's security interest in the products. Distributor also authorizes Seller to execute,
on Distributor's behalf, statements or other documentation necessary to perfect Seller's security
interest in the products. Seller is entitled to all applicable rights and remedies of a secured party
under applicable Law.
ARTICLE XI
RESALE OF THE GOODS
Section 11.01 Credit Risk on Resale to Customers. Distributor is responsible for all
credit risks regarding, and for collecting payment for, all products (including Goods) sold to
third parties (including Customers), whether or not Distributor has made full payment to Seller
for the products. The inability of Distributor to collect the purchase price for any product does
not affect Distributor's obligation to pay Seller for any Good.
Section 11.02 Resale Prices. Distributor will sell the Goods at or above the minimum
prices promulgated by Seller from time to time.
ARTICLE XII
COMPLIANCE WITH LAWS
Section 12.02 General Compliance With Laws Covenant. Distributor shall at all
times comply with all Laws. Without limiting the generality of the foregoing, each party shall at
all times, at its own expense, obtain and maintain all certifications, credentials, authorizations,
licenses, and permits necessary to conduct its business relating to the exercise of its rights and
the performance of its obligations under this Agreement.
ARTICLE XIII
INTELLECTUAL PROPERTY RIGHTS
Section 13.01 Ownership. Subject to the express rights and licenses granted by Seller in
this Agreement, Distributor acknowledges and agrees that:
(a) any and all Seller's Intellectual Property Rights are the sole and exclusive
property of Seller or its licensors;
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(b) Distributor shall not acquire any ownership interest in any of Seller's
Intellectual Property Rights under this Agreement;
(c) any goodwill derived from the use by Distributor of Seller's Intellectual
Property Rights inures to the benefit of Seller or its licensors, as the case may be;
(e) Distributor shall use Seller's Intellectual Property Rights solely for the
purposes of performing its obligations under this Agreement and only in accordance with
this Agreement and the instructions of Seller.
Section 13.02 Seller's Trademark License Grant. This Agreement does not grant
either Party the right to use the other Party's or their Affiliates' Trademarks except as set out
under this Section 13.02. Subject to Seller's trademark policies, which may be amended from
time to time in Seller's sole discretion, and the terms and conditions of this Agreement, Seller
hereby grants to Distributor a non-exclusive, non-transferable, and non-sublicensable license to
use Seller's Trademarks in the Territory during the Term and the Post-Term Sale Period solely
on or in connection with the promotion, advertising, and resale of the Goods in accordance with
the terms and conditions of this Agreement. Distributor will promptly discontinue the display or
use of any Trademark or change how a Trademark is displayed or used with regard to the Goods
when requested by Seller. Other than the express licenses granted by this Agreement, Seller
grants no right or license to Distributor, by implication, estoppel, or otherwise, to the Goods or
any Intellectual Property Rights of Seller.
(b) Distributor shall not use the name "Dabalash" or any Trademark:
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(i) on, directly, or indirectly in connection with, any place of business
or other facility that is not used for, or directly related to, the marketing of the
Goods;
(iv) in, or directly or indirectly as a part of, the trade, corporate, or firm
name or style of Distributor or any division, subsidiary, or affiliate thereof.
(c) Notwithstanding the foregoing, Distributor shall submit to Seller for prior
approval any proposed publication, advertising, or other printed material identifying itself
as an authorized Goods distributor in the Territory, including references to itself as an
authorized Goods distributor in the Territory in any telephone, internet, or other directory
listings; provided, however, this Section 13.04(c) does not apply to those materials that
were provided and approved by Seller for Distributor's intended use.
(a) take any action that interferes with any of Seller's rights in or to Seller's
Intellectual Property Rights, including Seller's ownership or exercise thereof;
(c) make any claim or take any action adverse to Seller's ownership of Seller's
Intellectual Property Rights;
(d) register or apply for registrations, anywhere in the world, for Seller's
Trademarks or any other Trademark that is similar to Seller's Trademarks or that
incorporates Seller's Trademarks in whole or in confusingly similar part;
(f) engage in any action that tends to disparage, dilute the value of, or reflect
negatively on the products purchased under this Agreement (including Goods) or any
Seller Trademark;
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(h) alter, obscure, or remove any of Seller's Trademarks or trademark or
copyright notices or any other proprietary rights notices placed on the products purchased
under this Agreement (including Goods), marketing materials, or other materials that
Seller may provide; and
(i) subject to Section 13.02 and Section 13.04, place Seller's name or any of
Seller's Trademarks:
(iv) in, or directly or indirectly as part of, the trade, corporate, or firm
name or style of Distributor or any division, subsidiary, or affiliate thereof.
Section 13.06 Seller's Trademark Notices. Distributor shall ensure that all Goods sold
by Distributor and all related quotations, specifications, and descriptive literature, and all other
materials carrying Seller's Trademark, are marked with the appropriate trademark notices in
accordance with Seller's instructions.
(a) Distributor's rights under Section 13.02 and Section 13.04 cease
immediately; and
ARTICLE XIV
AUDIT AND INSPECTION RIGHTS
Section 14.01 Audit Rights. On 2 days’ Notice, during the Term and within one year
after the expiration or earlier termination of this Agreement or the Post-Term Sale Period,
whichever is later, Seller may audit Distributor's files relating to its sales, marketing, and
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inventory of Goods regarding transactions that took place in the immediately preceding 12
months.
Section 14.02 Inspection Rights. During the Term and the Post-Term Sale Period
Distributor shall, on request, make available for physical inspection by Seller at any time during
regular business hours:
ARTICLE XV
TERM; TERMINATION
Section 15.01 Initial Term. The term of this Agreement commences on the Effective
Date and continues for a period of 1 year, unless and until earlier terminated as provided under
this Agreement or applicable Law (the "Initial Term").
Section 15.02 Renewal Term. On expiration of the Initial Term, this Agreement
automatically renews for additional successive 1-year terms unless and until either Party
provides Notice of nonrenewal at least 30 Business Days before the end of the then-current
term, or unless and until earlier terminated as provided under this Agreement or applicable Law
(each a "Renewal Term" and together with the Initial Term, the "Term"). If the Term is
renewed for any Renewal Term(s) pursuant to this Section, the terms and conditions of this
Agreement during each such Renewal Term are the same as the terms in effect immediately
before such renewal, subject to any change in Prices payable for the Goods and payment terms
during the applicable Renewal Term as set out in ARTICLE X or changes to or in the
availability of the Goods as set out in Section 7.02. If either Party provides timely Notice of
their intent not to renew this Agreement, then, subject to Section 15.01, unless earlier
terminated in accordance with its terms, this Agreement terminates on the expiration of the
then-current Term.
Section 15.03 Seller's Right to Terminate. Seller may terminate this Agreement by
providing Notice to Distributor:
(a) if Distributor fails to pay any amount when due under this Agreement
("Payment Failure") and the failure continues for 10 days after Distributor's receipt of
Notice of nonpayment;
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(d) under and in accordance with Section 3.01, Section 8.06 and Section
10.04; or
(e) if Distributor becomes insolvent or files, or has filed against it, a petition
for voluntary or involuntary bankruptcy or under any other insolvency Law, makes or
seeks to make a general assignment for the benefit of its creditors, or applies for, or
consents to, the appointment of a trustee, receiver, or custodian for a substantial part of its
property, or is generally unable to pay its debts as they become due;
(f) if Distributor:
(ii) merges or consolidates with or into any other Person, unless the
surviving entity has a net worth greater than or equal to its net worth immediately
before the merger or consolidation; or
Any termination under this Section 15.03 is effective on Distributor's receipt of Seller's
Notice of termination or any later date set out in the Notice.
(a) if Seller materially breaches any material provision of this Agreement and
either the breach cannot be cured or, if the breach can be cured, it is not cured by Seller
within 15 Business Days after Seller's receipt of Notice of such breach;
(b) if Seller becomes insolvent or files, or has filed against it, a petition for
voluntary or involuntary bankruptcy or under any other insolvency Law, makes or seeks
to make a general assignment for the benefit of its creditors or applies for, or consents to,
the appointment of a trustee, receiver, or custodian for a substantial part of its property, or
is generally unable to pay its debts as they become due; or
(c) in the event of a Force Majeure Event affecting Seller's performance under
this Agreement for more than 30 days.
Any termination under this Section 15.04 is effective on Seller's receipt of Distributor's
Notice of termination or any later date set out in the Notice.
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(a) The Term's expiration or earlier termination does not affect any rights or
obligations that:
(ii) return to Seller all documents and tangible materials (and any
copies) containing, reflecting, incorporating, or based on Seller's Confidential
Information;
Section 15.06 Post-Term Sale Period. Subject to Section 15.07, on the expiration or
earlier termination of this Agreement, except for termination by Seller under Section 15.03(a),
Section 15.03(b), or Section 15.03(c), Distributor may, in accordance with the applicable terms
and conditions of this Agreement, sell off its existing inventories of Goods for a period of 2
months following the last day of the Term (the "Post-Term Sale Period").
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Section 15.07 Seller's Buy-Back Right. Within 10 Business Days following the Term's
expiration or earlier termination, Distributor shall Notify Seller in writing of the description and
quantity of all Goods in Distributor's remaining inventory. In the Notice, the Distributor shall
separately identify which of those Goods Distributor is then contractually obligated to sell to
one or more Customers ("Committed Goods"). On or before the 10th Business Day after Seller
receives the Notice, Seller may, in its sole discretion, offer to purchase all or a portion of any
remaining inventory free of all liens, claims, or encumbrances, at a price equal to the lesser of
Distributor's cost therefor and Seller's then-prevailing distributor price. Distributor must accept
Seller's offer and promptly deliver, at Seller’s expense, the ordered Goods to Seller's designated
carrier for delivery to Seller. Repurchased Goods must be returned in their original packaging,
unopened and undamaged. Seller shall pay the repurchase price to Distributor either by:
(b) if the repurchase price exceeds the indebtedness, by payment of the excess
to Distributor within 20 Business Days after delivery to Seller.
Section 15.08 End of Term Purchase Restrictions. During the Term's last three
months, Distributor shall purchase Goods in quantities that are no greater than an amount that
Distributor reasonably determines is necessary to meet Customer demand in that period.
ARTICLE XVI
CONFIDENTIALITY
(a) is or becomes generally available to and known by the public other than as
a result of, directly or indirectly, any breach of this ARTICLE XVI by Receiving Party or
any of its Representatives;
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(d) was or is independently developed by Receiving Party without reference
to or use of, in whole or in part, any of Disclosing Party's Confidential Information; or
Receiving Party shall, for three years from receipt of such Confidential
Information:
Receiving Party shall be responsible for any breach of this ARTICLE XVI caused by any
of its Representatives. The provisions of this Article XVI shall survive termination or expiration
of this Agreement for any reason for a period of 2 years after such termination or expiration. At
any time during or after the Term, at Disclosing Party's written request, Receiving Party and its
Representatives shall, under Section 15.05, promptly return or destroy all Confidential
Information including copies that it has received under this Agreement.
In the event of any conflict between the terms and provisions of this Article XVI and
those of any other provision in this Agreement, the terms and provisions of this Article XVI will
prevail.
ARTICLE XVII
REPRESENTATIONS AND WARRANTIES
(c) it has the full right, power and authority to enter into this Agreement, to
grant the rights and licenses granted under this Agreement, and to perform its obligations
under this Agreement;
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(d) the execution of this Agreement by its Representative whose signature is
set out at the end hereof has been duly authorized by all necessary action of Distributor;
and
(e) when executed and delivered by each of Seller and Distributor, this
Agreement will constitute the legal, valid, and binding obligation of Distributor,
enforceable against Distributor in accordance with its terms.
Section 17.02 Limited Product Warranty. Subject to the provisions of Section 17.03,
Section 17.04, and Section 17.05, Seller makes certain limited warranties regarding the Goods
("Limited Warranties") solely to and for the Customer's benefit, which will either be:
(b) Seller's standard limited warranty in force when the Good is delivered by
Distributor to Customer.
Section 17.03 Warranty Limitations. Limited Warranties do not apply where the
Good:
(b) has been reconstructed, repaired, or altered by Persons other than Seller or
its authorized Representative; or
(c) has been used with any product that has not been previously approved in
writing by Seller.
Section 17.04 Extent of Liability. During the Warranty Period, regarding any Defective
Goods:
(ii) crediting or refunding the Price of the Defective Goods, less any
applicable discounts, rebates, or credits.
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(b) Distributor or Customer is responsible for all costs and risk of loss
associated with the delivery of Defective Goods to Seller for warranty repair or
replacement.
(c) Seller is responsible for all costs and risk of loss associated with the
delivery of repaired or replaced Goods to the Delivery Point; and
(d) Distributor is responsible for all costs and risk of loss associated with the
delivery and return of the repaired or replaced Goods to Customer.
All claims for breach of a Limited Warranty must be received by Seller no later than 5
Business Days after the expiration of the limited warranty period of the Good.
Distributor has no right to return for repair, replacement, credit, or refund any Good
except as set out in this Section 17.04 (or if otherwise applicable, Section 9.04, Section 17.02,
Section 17.04 and ARTICLE XVIII). Distributor shall not reconstruct, repair, alter, or replace
any Good, in whole or in part, either itself or by or through any third party.
ARTICLE XVIII
INDEMNIFICATION
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successors, and permitted assigns (collectively, "Seller Indemnified Party") against any and all
losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest,
awards, penalties, fines, costs, or expenses of whatever kind, including attorneys' fees, fees, and
the costs of enforcing any right to indemnification under this Agreement and the cost of
pursuing any insurance providers, incurred by Seller Indemnified Party (collectively, "Losses"),
arising out of or relating to any Claim of a third party:
(c) alleging or relating to any bodily injury, death of any Person or damage to
real or tangible personal property caused by the negligent acts or omissions of Distributor
Indemnifying Party or its Personnel;
Section 18.02 Seller General Indemnification. Subject to the terms and conditions set
out in Section 18.03, Seller (as "Seller Indemnifying Party") shall indemnify, hold harmless,
and defend Distributor and its officers, directors, employees, agents, affiliates, successors, and
permitted assigns (collectively, "Distributor Indemnified Party") against any and all Losses
incurred by Distributor Indemnified Party, arising out of or resulting from any Claim of a third
party alleging or relating to:
(c) any bodily injury, death of any Person, or damage to real or tangible
personal property caused by the negligent acts or omissions of Seller Indemnifying Party
or its Personnel; or
(d) any failure by Seller Indemnifying Party or its Personnel to comply with
any applicable Laws.
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Notwithstanding anything to the contrary in this Agreement, this Section 18.02 does not
apply to any claim (whether direct or indirect) covered under Error! Reference source not
found. or any claim (whether direct or indirect) for which a sole or exclusive remedy is provided
for under another section of this Agreement, including Section 9.04 and Section 17.04.
(b) bad faith failure to comply with any of its obligations set out in this
Agreement; or
(c) use of the products purchased under this Agreement (including Goods) in
any manner not otherwise authorized under this Agreement.
Section 18.04 Sole Remedy. ARTICLE XVIII SETS FORTH THE ENTIRE
LIABILITY AND OBLIGATION OF EACH INDEMNIFYING PARTY AND THE SOLE
AND EXCLUSIVE REMEDY FOR EACH INDEMNIFIED PARTY FOR ANY LOSSES
COVERED BY ARTICLE XVIII.
ARTICLE XIX
LIMITATION OF LIABILITY
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NEGLIGENCE) OR OTHERWISE, EXCEED TWO TIMES THE TOTAL OF THE
AMOUNTS PAID AND AMOUNTS ACCRUED BUT NOT YET PAID TO SELLER
UNDER THIS AGREEMENT IN THE 2-YEAR PERIOD PRECEDING THE EVENT
GIVING RISE TO THE CLAIM OR $100,000, WHICHEVER IS LESS. THE FOREGOING
LIMITATIONS APPLY EVEN IF THE NON-BREACHING PARTY’S REMEDIES UNDER
THIS AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE.
ARTICLE XX
INSURANCE
Section 20.01 Distributor Insurance Obligations. During the Term and for a period of
12 months thereafter, Distributor shall, at its own expense, maintain and carry in full force and
effect commercial general liability (including product liability) in a sum no less than $1 Million
with financially sound and reputable insurers. Distributor shall provide Seller with a certificate
of insurance from Distributor's insurer evidencing the insurance coverage specified in this
Section. The certificate of insurance shall name Seller as an additional insured. Distributorshall
provide Seller with 30 Business Days' advance Notice in the event of a cancellation or material
change in its insurance policy. Except where prohibited by Law, Distributor shall require its
insurer to waive all rights of subrogation against Seller and its insurers.
ARTICLE XXI
MISCELLANEOUS
Section 21.01 Further Assurances. On Seller's request, Distributor shall, at its sole cost
and expense, execute and deliver all such further documents and instruments, and take all such
further acts, necessary to give full effect to this Agreement.
(a) Subject to ARTICLE IV, this Agreement, including and together with any
related exhibits, schedules, attachments, and appendices, together with the Purchase
Order Transaction Terms, constitutes the sole and entire agreement of the Parties with
respect to the subject matter contained herein and therein and supersedes all prior and
contemporaneous understandings, agreements, representations and warranties, both
written and oral, regarding such subject matter.
Section 21.03 Survival; Limitation of Actions. Subject to the limitations and other
provisions of this Agreement: (a) the representations and warranties of the Parties contained
herein and related exceptions, limitations, or qualifiers survive the expiration or earlier
termination of this Agreement for a period of 12 months after the expiration or termination; and
(b) Articles I, XVI-XXI, and Sections 13.05, 13.07, 14.01, 14.02, 15.05, 15.06, and 15.07 of this
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Agreement, as well as any other provision that, to give proper effect to its intent, should survive
such expiration or termination, survive the expiration or earlier termination of this Agreement
for the period specified therein, or if nothing is specified for a period of 12 months after
expiration or termination. Notwithstanding any right under any applicable statute of limitations
to bring a claim, no lawsuit or other action based on or arising in any way out of this Agreement
may be brought by either Party after the applicable survival period's expiration; provided,
however, that the foregoing limitation does not apply to the collection of any amounts due to
Seller under the Agreement; and provided, further, that any claims asserted in good faith with
reasonable specificity and in writing by Notice before the applicable survival period's expiration
is not thereafter barred by the relevant period's expiration, and these claims survive until finally
resolved.
Section 21.04 Notices. All notices, requests, consents, claims, demands, waivers, and
other communications under this Agreement (each, a "Notice" and with the correlative
meaning, "Notify") must be in writing and addressed to the other Party at its address set out
below (or to any other address that the receiving Party may designate from time to time in
accordance with this Section). Unless otherwise agreed herein, all Notices must be delivered by
personal delivery, nationally recognized overnight courier, or certified or registered mail (in
each case, return receipt requested, postage prepaid). Notwithstanding the foregoing, Notice
given by email (with confirmation of transmission) satisfies the requirements of this Section
21.04. Except as otherwise provided in this Agreement, a Notice is effective only (a) on receipt
by the receiving Party and (b) if the Party giving the Notice has complied with the requirements
of this Section.
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agreement, instrument, or other document means the agreement, instrument, or other document
as amended, supplemented, and modified from time to time to the extent permitted by the
provisions thereof; and (z) to a statute means the statute as amended from time to time and
includes any successor legislation thereto and any regulations promulgated thereunder. The
Parties drafted this Agreement without regard to any presumption or rule requiring construction
or interpretation against the Party drafting an instrument or causing any instrument to be
drafted. The exhibits, schedules, attachments, and appendices referred to herein are an integral
part of this Agreement to the same extent as if they were set out verbatim herein.
Section 21.06 Headings. The headings in this Agreement are for reference only and do
not affect the interpretation of this Agreement.
(b) Any waiver authorized on one occasion is effective only in that instance
and only for the purpose stated, and does not operate as a waiver on any future occasion.
Section 21.10 Cumulative Remedies. All rights and remedies provided in this
Agreement are cumulative and not exclusive, and the exercise by either Party of any right or
remedy does not preclude the exercise of any other rights or remedies that may now or later be
available at law, in equity, by statute, in any other agreement between the Parties or otherwise.
Notwithstanding the previous sentence, the Parties intend that Distributor's rights under Section
9.03, Section 9.04, Section 17.04, and ARTICLE XVIII are the Party's exclusive remedies for
the events specified therein.
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Section 21.11 Equitable Remedies. ach Party] acknowledges and agrees that (a) a
breach or threatened breach by such Party of any of its obligations under ARTICLE XVI would
give rise to irreparable harm to the other Party for which monetary damages would not be an
adequate remedy and (b) in the event of a breach or a threatened breach by such Party of any of
these obligations, the other Party shall, in addition to any and all other rights and remedies that
may be available to such Party at law, at equity, or otherwise in respect of this breach, be
entitled to equitable relief, including a temporary restraining order, an injunction, specific
performance, and any other relief that may be available from a court of competent jurisdiction,
without any requirement to post a bond or other security, and without any requirement to prove
actual damages or that monetary damages do not afford an adequate remedy. Each Party agrees
that it will not oppose or otherwise challenge the appropriateness of equitable relief, or the entry
by a court of competent jurisdiction of an order granting equitable relief, in either case,
consistent with the terms of this Section 21.11.
Section 21.12 Assignment. Distributor may not assign any of its rights or delegate any
of its obligations under this Agreement without the prior written consent of Seller.
In addition, the Distributor may distribute all or a major portion of the Goods through any
third-party sub-distributor that distributes all or a major portion of the general product line(s) of
the Business in the Territory, provided that Distributor:
(a) obtains the prior written consent of Seller, which consent shall not be
unreasonably withheld; and
(b) prior to the commencement of any work by the sub-distributor, enters into
a written agreement with such sub-distributor that binds the sub-distributor to terms that
are at least as protective of the rights and information of Seller under this Agreement.
In all cases, Distributor is responsible for any acts or omissions of any of its subsidiaries
or subdistributors regarding the distribution of the Goods and, notwithstanding any delegation to
subsidiaries or use of subdistributors, Distributor shall continue to be responsible for its
obligations and responsibilities under this Agreement.Any purported assignment or delegation in
violation of this Section is null and void. No assignment or delegation relieves the assigning or
delegating Party of any of its obligations under this Agreement. Seller may assign any of its
rights or delegate any of its obligations to any Affiliate or any Person acquiring all or
substantially all of Seller's assets without the consent of Distributor.
Section 21.13 Successors and Assigns. This Agreement is binding on and inures to the
benefit of the Parties and their respective permitted successors and permitted assigns.
(a) This Agreement benefits solely the Parties to this Agreement and their
respective permitted successors and permitted assigns and nothing in this Agreement,
express or implied, confers on any other Person any legal or equitable right, benefit, or
remedy of any nature whatsoever under or by reason of this Agreement.
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Section 21.15 Choice of Law. This Agreement, including all exhibits, schedules,
attachments, and appendices attached hereto and thereto, and all matters arising out of or
relating to this Agreement, are governed by, and construed in accordance with, the Laws of the
State of Arizona, US, without regard to the conflict of laws provisions thereof to the extent
these principles or rules would require or permit the application of the Laws of any jurisdiction
other than those of the State of Arizona. The Parties agree that the United Nations Convention
on Contracts for the International Sale of Goods does not apply to this Agreement.
Section 21.16 Choice of Forum. Each Party irrevocably and unconditionally agrees that
it will not commence any action, litigation, or proceeding of any kind whatsoever against the
other Party in any way arising from or relating to this Agreement, including all exhibits,
schedules, attachments, and appendices attached hereto and thereto, and all contemplated
transactions, including contract, equity, tort, fraud, and statutory claims, in any forum other than
United States District Court for the District of Arizona or, if this court does not have subject
matter jurisdiction, the courts of the State of Arizona sitting in Maricopa County, and any
appellate court from any thereof. Each Party irrevocably and unconditionally submits to the
exclusive jurisdiction of these courts and agrees to bring any action, litigation, or proceeding
only in the United States District Court for the District of Arizona or, if this court does not have
subject matter jurisdiction, the courts of the State of Arizona sitting in Maricopa County,
Arizona. Each Party agrees that a final judgment in any action, litigation, or proceeding is
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by Law.
Section 21.17 Waiver of Jury Trial. Each Party acknowledges and agrees that any
controversy that may arise under this Agreement, including any exhibits, schedules,
attachments, and appendices attached to this Agreement, is likely to involve complicated and
difficult issues and, therefore, each Party irrevocably and unconditionally waives any right it
may have to a trial by jury in respect of any legal action arising out of or relating to this
Agreement, including any exhibits, schedules, attachments, and appendices attached to this
Agreement, or the transactions contemplated hereby.
The Parties shall negotiate in good faith to resolve the Dispute. If the Parties are unable to
resolve any Dispute within five (5) Business Days after the applicable Dispute Notice's delivery,
either Party may file suit in a court of competent jurisdiction in accordance with the provisions of
Section 21.16.
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agreement. Notwithstanding anything to the contrary in Section 21.04, a signed copy of this
Agreement delivered by facsimile, email, or other means of electronic transmission is deemed
to have the same legal effect as delivery of an original signed copy of this Agreement.
Section 21.20 Force Majeure. No Party shall be liable or responsible to the other Party,
nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in
fulfilling or performing any term of this Agreement (except for any obligations to make
payments to the other Party under this Agreement), when and to the extent the failure or delay is
caused by or results from acts beyond the impacted Party's ("Impacted Party") control,
including the following force majeure events ("Force Majeure Events"): (a) acts of God; (b)
flood, fire, earthquake, or explosion; (c) war, invasion, hostilities (whether war is declared or
not), terrorist threats or acts, riot, or other civil unrest; (d) requirements of Law; (e) actions,
embargoes, or blockades in effect on or after the date of this Agreement; (f) action by any
Governmental Authority; (g) national or regional emergency; (h) strikes, labor stoppages, or
slowdowns or other industrial disturbances; and (i) shortage of adequate power or transportation
facilities. The Impacted Party shall give Notice within ten (10) Business Days of the Force
Majeure Event to the other Party, stating the period of time the occurrence is expected to
continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the
effects of the Force Majeure Event are minimized. The Impacted Party shall resume the
performance of its obligations as soon as reasonably practicable after the removal of the cause.
In the event that the Impacted Party's failure or delay remains uncured for a period of 30
Business Days following Notice given by it under this Section 21.20, either Party may thereafter
terminate this Agreement on five (5) Business Days' Notice.
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective
Date.
R&G Business, LLC
By_____________________
Name: Reginaldo Torres
Title: President
[DISTRIBUTOR NAME]_________________
By_____________________
Name:
Title:
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SCHEDULE 1
GOODS
DABALASH
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SCHEDULE 2
TRADEMARK LIST
DABALASH
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SCHEDULE 3
TERRITORY
Unless otherwise limited herein, Distributor may sell on Distributor’s private website or
other social networks or marketplaces, such as E-Bay
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EXHIBIT A
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