DISTRIBUTION AGREEMENT

 

 

This Agreement, made on…... 2006 by and between

 

LA TUA AZIENDA , a corporation duly organized under the laws of the State of Italy and having its principal place of business at Via……..  n………, CAP……….  (Provincia di…..), -Italy, represented by Mr………..  (hereinafter "Supplier"),

 

and

 

IL TUO DISTRIBUTORE, a corporation duly organized under the laws of the Brazilian Republic, Curitiba, State of Paranà and having its principal place of business at ..., represented by Mr…………, resident in Curitiba, Rua do Ferdinand, 967, Paranà, identity card n………….  (hereinafter "Distributor"),

 

 

 

 

 

 

 


 

 

 

 

 

Whereas, Supplier manufactures and markets certain products and desires to increase the sales of such products in the territory as defined hereinafter;

 

IL CONTRATTO È INCOMPLETO, A RICHIESTA SARÀ INVIATA UNA COPIA COMPLETA (artt.17 ss Cod.Deont.)

 

STUDIO

MISURACA, FRANCESCHIN & Associati/Associates

Studio Legale

Law Firm

www.smaf-legal.com

 

Il contratto manca di molte clausole, lo studio legale SMAF invia su gentile richiesta una completa copia a titolo di prestazione professionale a pagamento ex artt.17 ss. Cod. Deont. Forense / The contract has missing clauses; please, consider SMAF law firm allowed to send a you a payable copy according to Italian Forensic Deontology Code.

 

20123 MILANO (MI), Italia

Via Monti, 8

tel.:   +(39) 02 006 15 017  

fax:   +(39) 02 700 50 81 00

e-mail: info@smaf-legal.com

 

00198 ROMA (RM), Italia

Via Savoia, 78

tel.:  +39 06 983 56 983

cell.: +39 06 8928 10 51

e-mail: info@smaf-legal.com

 

40125 BOLOGNA (BO), Italia

Strada Maggiore, 48

tel.:    +(39) 051 64 40 543

fax.:   +(39) 051 09 52 565

2°fax: +(39) 051 33 70 177

e-mail: misuraca@smaf-legal.com

 

35131 PADOVA (PD), Italia

Via Foscolo, 18

tel./fax: +(39) 049 8 364 364

fax:       +(39) 049  8 364 364

e-mail: franceschin@smaf-legal.com

 

 

 

 

 

Whereas, Distributor has represented that it possesses the necessary expertise and marketing organization to promote and sell such products in the territory; and

 

Whereas, Supplier is willing to appoint Distributor and Distributor is willing to accept such appointment as Distributor of Supplier's products as defined hereinafter in the territory;

 

Now, therefore, in consideration of the mutual premises and covenants hereinafter set forth, the parties agree as follows:

 

 

ARTICLE 1

DEFINITIONS

 

For purposes of this Agreement, the following words, terms and phrases, shall have the meanings assigned to them in this Article 1 unless the context otherwise requires:

 

1.1. Products. «Products» shall mean INDICA I TUOI PRODOTTI and their components  manufactured by the Supplier and described in Supplier Products catalogue (indicated in Exhibit 1), delivered to the Distributor and resold by this latter with the logo (trademark) «.» pursuant to this Agreement.

 

1.2. Territory. "Territory" shall mean the territory of  Sud America (including primarily, not exclusively, Brazil and Argentina).

 

1.3 Supplier List Price. "Supplier List Price" shall mean the prices showed on the official current published price-list as described in Exhibit II.

 

1.4 Supplier information. "Supplier Information" shall mean all information, other than information in published form or expressly designated by Supplier as non-confidential, which is directly or indirectly disclosed to Distributor or embodied in Products provided hereinafter, regardless of the form in which it is disclosed, relating in any way to Supplier's markets, customers, products, patents, inventions, procedures, methods, designs, strategies, plans, assets, liabilities, costs, revenues, profits, organization, employees, agents, Distributors or business in general.

 

 

ARTICLE 2

APPOINTMENT

 

2.1.Scope. Supplier hereby appoints Distributor, and Distributor hereby accepts appointment, as Supplier's exclusive Distributor during the term of this Agreement with the right to sell the Products specified hereinafter in the Territory, under Supplier's and Distributor's name, logotypes, and trademarks, subject to all the terms and conditions of this Agreement.

 

2.2.Subdistributors. Distributor shall not, without the prior written approval of Supplier, appoint any sub-distributors or agents to promote and/or distribute Products within the Territory. Further, notwithstanding any such appointments,  or Supplier’s approval thereof, Distributor shall at all times remain fully liable for the performance of its distributors and/or agents and Distributor hereby agrees to indemnify and hold harmless Supplier from all damages, losses, costs or expenses arising in any manner from any act or omission on the part of its sub-distributors or agents.

 

ARTICLE 3

GENERAL OBLIGATIONS OF DISTRIBUTOR

 

3.1. Marketing. Distributor shall have the following obligations with respect to the marketing and distribution of Supplier's Products:

 

a) To use its best efforts to further the promotion, marketing, sale of Products in the Territory;

 

b) To promptly respond to all inquiries from customers, including complaints, process all orders, and effect all shipments of Products;

 

c) To diligently investigate all leads with respect to potential customers referred to it by Supplier;

 

d) To not sell or be involved in, either directly or indirectly, also through the taking on of holdings or participation in other firms, in the sale of Products which are in any way in competition with the models supplied by the Supplier without the prior written consent of this latter;

 

e) To observe and give notice to customers of the instructions, information or warnings received by Supplier in relation to the storage, conservation and correct use of the Products;

 

f) To not cancel or remove the trademarks or other distinguishing signs placed upon the Products;

 

g) To timely inform Supplier of each change in the applicable provisions of law with which the Products must comply;

 

h) To not assign the rights or obligations of this Agreement including to its associated or subsidiary companies;

 

i) To provide Supplier within sixty (60) days of the end of the fiscal year with a report of its activities with respect to the Products in the Territory during such year.

 

3.2. Customer Support. Distributor agrees to cooperate with Supplier in dealing with any customer complaints concerning the Products and take any action requested by Supplier to resolve such complaints. In any case Supplier will not assume responsibility other than those forseen in  the present Agreement.

 

3.3. Expenses. Distributor assumes full responsibility for all costs and expenses which it incurs in carrying out its obligations under this Agreement including but not limited to all rentals, salaries, commissions, advertising, demonstration, travel and accommodation expenses without the right to reimbursement for any portion thereof from Supplier.

 

 

ARTICLE 4

SAMPLE PRODUCTS AND CATALOGUES

 

Sample Products. Distributor has requested sample Products  for an amount of ... milions of Italian Lire that will be paid in two times starting 180 days from the date of invoice, by swift to the bank specified by Supplier. This amount will be turned off in half (... milions of I£) if 180 days after  the date of invoice the minimum sales  will be met by the Distributor as in Article 6.1 hereto; the second half (... milions of I£)  will be turned off at the end of the first year if the minimum sales will be met as  in Article 6.1 hereto.

If the minimum sales target will not be met, the amount of ... milions of I£ will be turned off in proportion to the sales target achieved.

 

Catalogues. It is agreed that the Supplier will furnish to the Distributor the catalogues. The parties will agree the contents of the catalogues, all the catalogues will be in English language.

 

 

 

ARTICLE 5

ORDERS AND STOCK OF PRODUCTS

 

5.1. Purchase Orders. Distributor shall submit to Supplier the purchase order for the Products at least 60 days prior the delivery dates requested. All orders shall be sent to Supplier in writing and shall contain all information required for the correct identification of the Products ordered. Conclusion of the order is subject to total or partial availability of the Products and to written confirmation by Supplier to be sent within 15 days of receipt of the order.

 

5.2. Delivery Terms. All deliveries of the Products shall be Ex Works at Supplier's manufacturing facility. Supplier shall have no further responsibility for the Products, and all risk of damage to or loss or delay of the Products shall pass to Distributor upon their delivery at Ex Works delivery point to a common carrier or an agent or any other person specified by Distributor acting on behalf of Distributor.

 

5.3. Product Changes. Supplier reserves the right, in its sole discretion and without incurring any liability to Distributor to alter the specifications for any Product or discontinue the manufacture of any Product or to add any new product.

 

 

ARTICLE 6

MINIMUM SALES

 

6.1. Distributor agrees upon a minimum sales commitment for the term of this Agreement with Supplier. The minimum sales amount for the first year agreed is ... ( ... )  milions of I£ or ... Euro.

For the following years the parties will agree for each year a minimum sales that will be not lower than those of  the last year. The parties agree  on Article 11.1 hereto.

 

6.2. For the purposes of article 6.1. hereof, the price charged by Distributor net of discounts and rebates shall be used in making the calculation.

 

6.3. If the minimum sales commitment is not met, Supplier may , at his discretion, eliminate the exclusive appointment to the Distributor, or may terminate the Agreement on giving 3 (three) months' written notice, without any liability for damages to Supplier.

 

 

ARTICLE 7

PRICES AND PAYMENTS

 

7.1. Prices. The prices to be paid by Distributor for Products purchased pursuant to this Agreement are the ones listed in the current Supplier's price list less ... % and less ...% on the first amount (e.g.: 1000-...%= ...- ...%=...) discount (Exhibit II). Those prices are Ex Works Supplier's warehouse facility and include standard packing in accordance with Supplier's standard commercial export practices in effect at the time of shipment. Special packing may be required as option and are subject to extra-charges.

 

7.2. Price Increases. Supplier may, at any time during the term of this Agreement, increase its prices for the Products by providing Distributor with at least sixty (60) days prior written notice. Increased prices for all Products shall not apply to purchase orders accepted.

 

7.3. Payment Terms. All payments hereunder shall be due net sixty (60) days from the date of invoice payable by transfer, swift, to the bank specified by Supplier from time to time. The above term is subject to bank references and may be changed in any time into stricter terms. All payments hereunder shall be made in Lire or Euro.

 

7.4. Resale Prices. Distributor may resell Products at such price as Distributor, in its sole discretion, shall determine. Distributor shall, for information, provide Supplier with a list of its initial sales prices for the Products to be charged to its customers and shall keep Supplier fully informed of any change in such list prices.

 

7.5. Overdue Payments. If and for so long as any payment from Distributor to Supplier under this Agreement shall be overdue:

 

a) Interest at the rate as prime Rate ABI plus 2% (two percent) as published in the Sole 24 Ore; and

b) Supplier shall have the right to require payment for additional shipments of Products either by cash in advance or by an irrevocable confirmed letter of credit instead by open account as provided above.

 

7.6. Passing of Property. The Products, components and spare parth both as whole and individually shall remain the property of Supplier until the entire price of the Products has been paid. Notwithstanding the terms of the first paragraph of this Article, the risk in the Products shall pass in the Distributor from the Products are delivered.

The warranty clause will apply only if no payments for the Products are overdue by the

Distributor.

ARTICLE 8

ACCEPTANCE AND WARRANTY

 

8.1. Acceptance of Products. In the event of any shortage, damage or discrepancy of Products, Distributor shall promptly report the same to Supplier and furnish such written evidence or other documentation as Supplier may deem appropriate. Supplier shall not be liable for any such shortage, damage or discrepancy, unless Supplier has received notice and substantiating evidence thereof from Distributor within 15 (fifteen) days of arrival of the Products at Distributor's shipping address in the Territory. If the substantiating evidence delivered by Distributor demonstrates to Supplier's satisfaction that Supplier is responsible for such shortage, damage or discrepancy, Supplier shall promptly deliver additional or substitute Products to Distributor in accordance with the delivery procedures set forth herein; provided that in no event shall Supplier be liable for any additional costs, expenses or damages incurred by Distributor directly or indirectly as a result of such shortage, damage or discrepancy.

 

8.2. Product Warranty. Supplier warrants for a period of twelve (12) months after the date of delivery that the Products shall be free from defects in material and workmanship, moreover Supplier agrees to warrant for a period of ... (...) years the coat of paint  of Products, and the sliding accessories of Products for ... (...) working cycles.

Supplier's sole obligation in the event of a breach of such warranty and recognized by Supplier, (after checking defects on the returned parts), shall be to provide at no charge to Distributor replacement parts for all defective parts. In no event shall Supplier have any responsibility or bear any liability for the cost of labor for the repair of any defective Products or parts, the removal of defective parts or the installation of replacement parts. All costs of shipment of the replacement parts to Distributor shall be borne by Supplier. Distributor shall ship back to the Supplier, at his expenses, the defected parts for being checked and all such replaced parts shall become the property of Supplier upon their replacement.

Warranty claims hereunder must be made promptly and in writing;  must recite the nature and details of the claim, the date and the cause of the claim was first observed and must be received by Supplier no later than 7 (seven) days after the expiration of the warranty period.

 

8.3. Excluded Claims. Supplier shall have no obligation in the event that:

 

a) Repair or replacement of Products or parts shall have been required through normal wear and tear or necessitated in whole or in part by force major as defined in Article 12 or by the fault or negligence of Distributor or its customers; or

 

b) The Products or parts have not been properly used, maintained, or repaired in accordance with Supplier's then applicable operating and/or maintenance manuals, whether by Distributor or its customers, or shall have been modified in any manner without prior written consent of Supplier or they have not been enough protected in the shipment by the carrier.

 

8.4. Limited Warranty. The warranties set forth in this Article are intended solely for the benefit of Distributor. All claims hereunder shall be made by Distributor and may not be made by Distributor's customers. The warranties set forth above are in lieu of all other warranties, express or implied, which are hereby disclaimed and excluded by Supplier, including without limitation any warranty of merchantability or fitness for a particular purpose or use and all obligations or liabilities on the part of Supplier for damages arising out of or in connection with the use, repair of performance of the Products. It is expressly agreed that the warranties set forth in this Article are excluded if the entire price of the Products has not been paid.

 

 

ARTICLE 9

CONFIDENTIALITY

 

Distributor acknowledges and agrees that all Supplier information including know-how is confidential and proprietary to Supplier. Distributor agrees not to use any of such Supplier information during the term of this Agreement and for a period of two (2) years thereafter for any purpose other than as permitted or required for performance by Distributor hereunder. Distributor further agrees not to disclose or provide any of such Supplier information to any third party and to take all necessary measures to prevent any such disclosure by its employees, agents, contractors or consultants during the term hereof and for a period of 2 (two) years thereafter. Nothing herein shall prevent Distributor from using, disclosing or authorizing the disclosure of any Supplier information which is, or hereafter becomes, part of the public domain.

 

 

 

 

 

____________________________

 

Distributor

 

 

____________________________

Supplier

 

 

 

 


 

 

 

 

 

 

EXHIBIT I

 

Products

 


 

EXHIBIT II

 

Seller List Price

 


 

 

EXHIBIT III

 

Trademarks

 

 

 

 

 

 

 

 

In Witness whereof, the parties and the authorized representatives have caused this Agreement to be executed on the date first above written.

 

 

 

_____________                                                      _____________

 

Supplier                                                                 Distributor

 

 

 

ONEROUS CLAUSES

 

The following Articles have been read and are hereby specifically approved in writing:

 

Art.3  : General obligations of Distributor,

Art.6  : Minimum sales target,

Art.7  : Prices and payments,

Art.8  : Acceptance and warranty,

Art10 : Logo,

 

 

 

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Distributor

 

 

 

 


 

 

 

 

 

 

EXHIBIT I

 

Products

 


 

EXHIBIT II

 

Seller List Price

 


 

 

EXHIBIT III

 

Trademarks