EXCLUSIVE DISTRIBUTION AGREEMENTDistribution Agreement |
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EXHIBIT 10.35
EXCLUSIVE DISTRIBUTION AGREEMENT
THIS
AGREEMENT made this 7 day of December 2006 by and between
Make-It
Manufacturing, Inc., with its principal place of business located
at 500 Linne
Road, Unit B, Paso Robles, California 93446 hereinafter referred to
as
"Supplier", and Smart World Organics, Inc., having its main office
at 18744
Titus Road Hudson, Florida 34667, hereinafter referred to as
"Distributor".
WHEREAS, Supplier is the inventor (patent #6,612,073 B1) and
manufacturer of a
plastics molded product known as the Agro Tower used in the Green
Industry which
is defined as the horticulture, turf and agriculture segments both
retail and
wholesale and;
WHEREAS, Distributor is in the business of manufacturing and
distributing
products related to those manufactured by Supplier;
WHEREAS, Supplier desires to grant and Distributor desires to
acquire, exclusive
rights to market Supplier's product used in the Green Industry that
consists of
horticulture, turf and agriculture segments both retail and
wholesale;
NOW, THEREFORE, in consideration of the mutual promises contained
herein, the
parties hereto agree as follows:
1. DISTRIBUTORSHIP
1.1 Distribution Rights
Subject to the terms and conditions set forth in this Agreement,
Supplier
hereby grants to Distributor the exclusive right to market and
distribute within
the Territory as set forth in Schedule "A" attached hereto (the
"Territory"),
certain products manufactured or formulated by Supplier and listed
in Schedule
"B" attached hereto (the "Products").
1.2 Term
The
term of this Agreement shall commence as of the date set forth
above
(the "Effective Date") and continue for the life of the patent,
whereupon the
Agreement shall expire unless both parties agree to an extension of
the term
hereof, which extension may be subject to additional terms and
conditions.
<PAGE>
1.3 Trademarks and Trade Names
During the term of this Agreement, Supplier grants to Distributor
if it so
desires the right to use the trademarks and trade names of Supplier
as necessary
for the sole purpose of allowing Distributor to fully promote and
market the
Products pursuant to the terms of this Agreement. The Distributor
is also
allowed to establish its own trademarks and trade names for the
product. If,
during the term of this Agreement, a trademark registration is to
take place in
the Territory by the Distributor, all rights shall belong to the
Distributor,
who shall also bear the costs for such registration. Whenever
Distributor
employs any trademark of Supplier to be used in any form of printed
material,
Distributor shall place an asterisk immediately after and slightly
above the
first use of the trademark referring to a footnote reading
"Trademark of
Supplier." Distributor shall deliver to Supplier all Distributor's
promotion and
advertising material for Supplier's review, prior to such promotion
or
advertising utilizing any of Supplier's trademarks or trade names.
Distributor
agrees not to use any promotion or advertising that Supplier finds
unsuitable in
its reasonable discretion.
1.4 Authority
Distributor is an independent legal entity, and the relationship
between
Distributor and Supplier is entirely based on Distributor's
purchasing and
selling Supplier's products for Distributor's own account.
Distributor shall
have no authority whatsoever to bind or represent Supplier in any
respect.
Nothing contained herein shall be deemed to create a partnership
between the
parties or the relationship of principal and agent.
2. DISTRIBUTOR OBLIGATIONS
2.1 Marketing Efforts
Distributor agrees to use its best endeavors to promote the sale of
the
Products in the Territory on the maximum possible scale by all
usual means and
to act loyally to Supplier in all matters involved in this
Agreement.
(a)
inform Supplier immediately of any changes in Distributor's
organization or method of doing business which might affect the
performance of
Distributor's duties hereunder; and
(b)
keep Supplier informed at all times of the market conditions,
competitive products and prices, and other facts material to the
marketing of
the Products in the Territory.
2.2 Non-Competition
During the term of this Agreement, Distributor shall not, directly
or
indirectly, distribute in the Territory, products similar to
Suppliers'
purchased from any person other than Supplier. In addition,
Distributor shall
not, directly or indirectly, manufacture or distribute in the
Territory,
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<PAGE>
products which compete with the Products under this Agreement,
unless otherwise
agreed by the parties hereto, nor shall Distributor seek customers
for the
Products outside the Territory nor establish or maintain any branch
or
distribution depot outside the Territory for the sale of the
Products without
the prior written permission of the Supplier.
2.3 Prohibited Practices
Distributor agrees not to pledge, in any manner, the credit of
Supplier nor
to receive any money on behalf of Supplier nor to make any
contracts or
commitments on behalf of Supplier nor to make any warranties or
other
representations regarding the Products other than those authorized
by Supplier
in writing.
2.4 Insurance
Distributor represents that it maintains and will continue to
maintain
sufficient insurance under Worker's Compensation, comprehensive
general
liability insurance, including errors and omissions insurance and
property
damage insurance, in amounts sufficient to cover potential claims
against
Distributor.
3. SALES
3.1 Distributor Prices
Supplier shall, in its sole discretion, establish the prices to be
charged
to Distributor for each Product (the "Distributor Prices"). The
current
Distributor Prices are set forth in Schedule "B" attached hereto.
Supplier shall
have the right, in its sole discretion, to increase or decrease the
Distributor
Prices upon sixty days (60) written notice to Distributor.
Distributor Price
increases will not affect orders already accepted by Supplier.
Price decreases
shall apply to all products not delivered. Prices shall be subject
to amendment
by Supplier from time to time, but only if Supplier experiences a
material
change in the cost of raw materials, or other supplies used in the
manufacturing
of the Product.
3.2 Distributor Orders
Distributor shall place written orders with Supplier on or before
the 15th
of each calendar month. The quantity ordered for delivery for the
first month
shall be firm.
3.2 During the term of this Agreement Supplier shall forward all
orders received
for the products to Distributor and shall prominently display the
exclusivity
with Distributor on its website.
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<PAGE>
3.4 Security Interest
Supplier reserves a purchase money security interest in the
Products to
secure Distributor's payment obligations. Such security interest is
retained
until Distributor's payment obligations are satisfied in full.
3.4 Financing
Distributor, and not Supplier, shall be solely responsible for all
risk of
nonpayment for Products distributed on credit.
3.5 Taxes and Licensing
Distributor shall:
(a)
pay all customs,
import, excise, sales, and other similar duties and
taxes payable in respect of the Products shipped to
Distributor.
(b)
obtain any licenses,
authorizations, permissions, and other documents,
and comply with all formalities in a state for the import,
export,
distribution, sale and/or other disposal of the Products in and
from
each state.
4. DELIVERY AND RISK OF LOSS
4.1 Delivery
Supplier shall ship the Products ordered by Distributor within the
normal
shipping schedule established by Supplier from time to time, but
cannot
guarantee a specific shipment date. Accordingly, Supplier's sole
obligation to
Distributor shall be to ship Products as promptly as reasonably
practicable.
4.2 Risk of Loss
Delivery shall be made F.O.B. Supplier's plant. Possession of and
title to
all Products ordered hereunder, excepting Supplier's security
interest therein,
shall be deemed to pass to Distributor upon delivery to the common
carrier at
the point of shipment. Distributor shall thereupon assume all risk
of loss or
damage, except for any loss resulting from the negligence of
Supplier.
Transportation charges and cost of insurance, which may be incurred
shall be
added to the Distributor Price for each Product and shall be paid
by
Distributor.
4.3 Inspection
Distributor shall inspect all Products immediately upon arrival and
shall,
within seven calendar days of arrival, give written notice to the
common carrier
and Supplier of any claim for damages or shortages. Distributor
shall give
written notice to Supplier within ten (10) calendar days of arrival
that any
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<PAGE>
Product does not conform with the terms of this Agreement. If
Distributor fails
to give any such notice, the Products shall be deemed accepted for
all purposes
of this Agreement.
5. WARRANTY AND LIMITATION OF LIABILITY
5.1 Warranty Disclaimer
Supplier's sole warranty with respect to Products sold is set forth
in
Supplier's Standard Conditions of Sale. However, such warranty
shall in any
event expire twelve (12) months from delivery to Distributor.
SUPPLIER MAKES NO
OTHER WARRANTIES TO DISTRIBUTOR OR ANY CUSTOMER OR OTHER THIRD
PARTY, EXPRESS OR
IMPLIED,






