Non-Stocking Distributors and Subdistributors Clause Samples
The Non-Stocking Distributors and Subdistributors clause defines the rights and obligations of distributors and subdistributors who do not maintain inventory of the supplier’s products. Typically, this clause outlines the conditions under which such parties may sell or promote products, such as requiring them to place orders only after receiving customer commitments or prohibiting them from holding stock for resale. Its core function is to clarify the distribution model, ensuring that all parties understand the limitations and responsibilities associated with non-stocking arrangements, thereby reducing confusion and managing supply chain expectations.
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Non-Stocking Distributors and Subdistributors. During the term of this Agreement Coherent may, at any time and without the consent of DUSA, but after giving DUSA notice, appoint any non-stocking sales agents or sales representatives (collectively, "Sales Agents") or stocking subdistributors ("Subdistributors") to promote, distribute and sell the Products. Any such appointment shall terminate automatically upon the termination of this Agreement. If Coherent so appoints any Subdistributors, the Subdistributors must agree in writing to be bound by the terms and conditions of this Agreement. No appointment of any Sales Agents or Subdistributors shall relieve Coherent of any obligation it has under this Agreement and Coherent hereby guarantees the full and complete performance by all Sales Agents and Subdistributors of all duties and obligations arising in connection with their activities and obligations relating to the Products.