EXCLUSIVE DISTRIBUTORSHIP AGREEMENT
EXHIBIT 10.2
EXCLUSIVE DISTRIBUTORSHIP AGREEMENT
This Agreement is made as of the 1st day of November, 2006, by and between RBC Life Sciences USA Inc., a Nevada corporation with offices at 0000 Xxxxx Xxxxx, Xxxxxx, Xxxxx 00000, XXX, (“RBC”), and Merry Key, with offices at Seoul, Korea, (the “Distributor”).
WHEREAS, RBC manufactures the “RBC Life Sciences™” line of top quality health, nutrition, and personal care products (collectively, “Products”), which Products may also be marketed under the “Pure Life™”, “Light Force™” or “Royal Botanica™” trade names, for sale to independent Members;
WHEREAS, the Distributor is a corporation of Korea, with the power to carry on business as contemplated by this Agreement;
WHEREAS, the Distributor will promote and sell the Products exclusively as the authorized Distributor in Korea (“Territory”), subject to the terms and conditions of this Agreement; and
WHEREAS, the parties hereto desire to establish, among other things, the terms and conditions under which orders will be placed by the Distributor and accepted and filled by RBC.
NOW, THEREFORE, in consideration of the premises stated above and subject to the terms and conditions contained herein, the parties agree as follows:
I. PRICES
Prices for all Products available for purchase by the Distributor are set forth in Appendix A and shall be paid in U.S. Dollars, ex factory and export packed at RBC’s facility in Irving, Texas, USA. The Distributor shall be responsible for all land, sea, or airfreight charges, wharfage, and storage charges. The Distributor at its sole expense shall arrange any insurance desired by the Distributor to cover the Products while in shipment. The prices quoted in Appendix A shall remain fixed for a period of twelve (12) months from the date of commencement of this Agreement, and thereafter may be changed by RBC on not less than sixty (60) days prior written notice to the Distributor. RBC shall fill any orders pending at the time any such notice is given at the prices in effect immediately prior to the notification.
II. DELIVERY
RBC shall deliver the Products to the Distributor ex factory and export packed at RBC’s facility in Irving, Texas, USA. Upon delivery, title to the Products and all risk of loss or damage shall pass to the Distributor. The Products shall be ordered in production run quantities allowing eight (8) to twelve (12) weeks lead time prior to the shipment date requested by the Distributor. The lead time for Products ordered in less than production run quantities is subject to availability and ordering requirements for RBC’s own stock. RBC will consider requests from the Distributor for new products and modified formulations or packaging. RBC, at its sole discretion, shall determine whether and under what terms such requests shall be fulfilled. RBC’s obligation to meet the delivery dates quoted in response to the Distributor’s orders is subject to the prompt receipt by RBC of all information reasonably required to permit RBC to proceed with the fulfilment of the Distributor’s order or the production of the ordered Products, as the case may be, immediately and without interruption. RBC shall not be obligated to proceed with the fulfilment of any order for which payment has not been received pursuant to the provisions of Section IV below. The Distributor shall arrange for export and shall pay for all export related fees and expenses directly attributable to each of the Distributor’s orders including, but not limited to, those covering preparation of
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consular or other documents (but excluding fees and expenses related to any application by RBC for any export license that may be required by the U.S. Export Administration Act of 1979, as amended [“the EAA”]), freight, storage, and warehouse-to-warehouse (including war and terrorism risk) insurance. RBC shall at its sole expense apply for and obtain any required export licenses that may be required by the EAA in connection with the transactions contemplated by this Agreement.
III. DELAYS
RBC’s performance of its obligations under this Agreement shall be excused for the duration of any delay arising directly or indirectly from (A) acts of God, unforeseeable circumstances, acts (including delay or failure to act) of any governmental authority, war (declared or undeclared), riot, revolution, fires, strikes, labour disputes, sabotage, or epidemics, (B) inability, due to causes beyond RBC’s reasonable control, to timely obtain instructions or information from the Distributor, necessary and proper labor, materials, components, facilities, and transportation, or (C) any other cause beyond RBC’s reasonable control.
IV. PAYMENT
Payment for the Products shall be made in two instalments or as otherwise agreed by the parties in writing. First payment is due at the time the Distributor places its order with RBC. Payment will be sent via wire transfer to RBC, in the amount of fifty percent (50%) of the value of the order. The balance payment of fifty percent (50%) will be sent via wire transfer to RBC, upon notification by RBC that the order is ready for shipment. In the case of certain Products, full payment may be required at the time an order is placed with RBC. RBC will notify Distributor which Products require full payment with the order.
V. GOVERNMENTAL AUTHORIZATION
A. All sales hereunder shall be subject to the export control laws and regulations of the United States Government, including but not limited to the EAA.
B. The Distributor shall be responsible for the timely obtaining of any required authorizations such as import licenses, exchange permits, or any other specific governmental authorization within the Territory for the importation and/or sale of the Products. The Distributor shall use its commercially reasonable efforts and, if needed, engage an expert at its own reasonable expense to obtain governmental approval for the sale of RBC Products within the Territory. RBC shall in good faith use its best efforts as may reasonably be required to provide Certificate of Analysis, Certificate of Origin, Certificate of Free Sale, or other documentation that may be requested by the Territory’s government as proof that the Products comply with any applicable standards, requirements, tests, or procedures within the Territory (collectively, the “Standards”). The Distributor shall, if the Distributor has requested such information, reimburse RBC at cost for any fees directly related to obtaining these documents or authorizations. RBC shall not be liable if any such approval/authorization is delayed, denied, revoked, restricted, or not renewed, and the Distributor shall not be relieved thereby of its obligations to pay RBC for any Products already shipped to the Distributor at its request. Notwithstanding the preceding, nothing in this Agreement shall be construed to obligate RBC (i) to pay for the inspection of its facilities or the facilities of any supplier to satisfy governmental agencies or authorities in the Territory, or (ii) to otherwise incur any costs or expenses to qualify its facilities or the facilities of any supplier pursuant to the governmental regulations of the Territory. RBC shall manufacture the Products in accordance with the product specifications, in conformity with all applicable standards known to RBC at the time of manufacture. Products not in conformity with such standards, or which may be otherwise defective, may, at RBC’s option, be destroyed or returned by the Distributor to RBC at RBC’s expense upon written authorization from RBC. The Distributor agrees that it shall not make any disposition, by way of trans-shipment, re-export, diversion or otherwise, of the Products, other than in and to the Territory.
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VI. EXCLUSIVITY
A. RBC agrees that it will not sell or deliver the Products to any person or entity within the Territory without obtaining the prior written consent of the Distributor. RBC shall further use its best efforts to preclude any other person or entity from selling or delivering the Products within the Territory. Exporting or selling the Products by the Distributor outside the Territory is prohibited without the prior written consent of RBC.
B. In consideration of obtaining this Exclusivity, the Distributor agrees to meet the minimum performance requirements as described in Section XVI.
VII. SALES ACTIVITIES & DISTRIBUTOR RESPONSIBILITIES/OBLIGATIONS
A. Except as otherwise provided herein, the Distributor is not the agent of RBC for any purpose and is not granted any express or implied right to assume or create any obligation in the name of RBC or to bind RBC in any manner. The Distributor shall refer to RBC all inquiries or requests for Products received from areas outside the Territory. The Distributor shall use its best efforts to operate under the professional and ethical guidelines as set forth by the Direct Selling Association of the United States as published on the internet at xxx.xxx.xxx/xxxxxx/.
B. The general responsibilities and obligations of the Distributor include, but are not limited to, the following:
1. The Distributor will develop at its own expense all training, promotional and business sales aids, including any translation and printing costs. RBC will make available examples of its US-based training, promotional, and business sales aid materials for the Distributor’s use. RBC reserves the right to review and approve such materials and procedures developed by the Distributor for use in the Territory. Such approvals shall not be unreasonably delayed or withheld.
2. The Distributor will develop labels for Products and such promotional materials as may be reasonably required for conduct of business by the Distributor. RBC reserves the right to review and approve such labels and materials prior to their use in the Territory. Such approval shall not be unreasonably withheld or delayed. All Products supplied to Distributor shall bear English-language RBC labels. Distributor shall have the right to develop its own labels at its own cost and expense. Such labels shall be affixed by RBC only if production run quantities or greater are ordered.
3. RBC and its affiliates shall remit to the Distributor commissions, overrides, and payments due to its upline Members located within the Territory. The Distributor shall disburse these payments to such upline Members.
4. The Distributor will promptly submit to RBC written reports concerning sales and marketing information including, but not limited to, customer lists, downline genealogies, sales demands, Member requests for products and services, Member complaints, inventories, backorders, and activities of Members, in such form and at such intervals as specified by RBC.
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5. The Distributor will provide pricing information to its downline Members and/or consumers. RBC reserves the right to review and recommend to the Distributor suggested wholesale/retail pricing in the Territory as well as commission values. The Distributor agrees to set the qualification value of each of its products equal to qualification value used by RBC for its independent distributors in the USA.
6. The Distributor will not engage in the sale, distribution, or promotion of products obtained from sources other than RBC, without written consent from RBC.
7. The Distributor will receive orders for Products, receive payments from its Members, promptly input the orders into the Distributor’s data processing equipment, and distribute all ordered Products in accordance with customary commercial standards.
8. The Distributor agrees to permit international sponsorship, including but not limited to recruiting, ordering, and payment of commissions and bonuses. The parties agree that all commissions and bonuses paid pursuant to International sponsorship will be calculated utilizing the compensation plan in effect in the country where the products are purchased.
VIII. COMPETING PRODUCTS AND CONFIDENTIALITY
A. During the period of this Agreement, and for a period of two (2) years after its termination or expiration, the Distributor will not, directly or indirectly, become associated with, or engage in, or render service to any other business directly competitive with the business of RBC as it was conducted on the date of the termination or expiration of this Agreement.
B. As used in this Section, “Confidential Information” means information disclosed to the Distributor by RBC or information disclosed to RBC by Distributor, or known by the Distributor and RBC as a consequence of, or through, the affiliation with each other, not generally known in the industry in which RBC and Distributor are active or may become engaged. Distributor shall not disclose any not publicly known information about RBC’s customer lists, products, processes, and services, including information relating to research, development, inventions, manufacture, purchasing, accounting, engineering, marketing, merchandising, selling, pricing, internal policies, and any lawsuits, legal work, or communications with RBC’s attorneys without the consent of RBC, which shall not be unreasonably withheld, or unless legally required. Likewise, RBC shall not disclose any information not publicly known about Distributor, including but not limited to business methods, software systems, bank accounts, names, phone numbers, suppliers, ownership, downline positions, budgets, results and other information received as a consequence of the affiliation with Distributor without the consent of Distributor, which shall not be unreasonably withheld, or unless legally required. The parties shall not, at any time, either during the term of this Agreement or thereafter, divulge to any person, firm, or corporation any of the Confidential Information received by it during the term of this Agreement, and all such information shall be kept confidential and shall not, in any manner, be revealed to anyone except as may be required by legal process or the order of any court of competent jurisdiction.
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IX. TAXES
A. All United States taxes, whether federal or state, are included in the prices, except sales, use, excise, and similar taxes, which have been excluded on the basis that the transaction is presumed to involve export and resale by the Distributor. The Distributor shall furnish evidence of export or other appropriate tax exemption evidence acceptable to the taxing authorities if requested by RBC.
B. Any taxes (including income, stamp, and turnover taxes), duties, fees, charges, or assessments of any nature levied by any governmental authority, other than that of the United States, or any jurisdiction in connection with this Agreement, whether levied against the Distributor, against RBC, or its employees, or against any of RBC’s subcontractors or their employees, or otherwise, shall be for the Distributor’s account and shall be paid directly by the Distributor to the applicable governmental authority or jurisdiction. If RBC is required by law or otherwise to pay any such levy and/or fines, penalties, or assessments as a result of the Distributor’s failure to comply with any applicable laws or regulations governing the payment of such levies by the Distributor, the amount of any such payments so made by RBC shall be reimbursed by the Distributor to RBC upon submission of RBC’s receipts or other evidence of payment of such levies, less any tax savings by RBC. The Distributor reserves the right to dispute in good faith any or all such taxes, duties, fees, charges, assessments, or penalties that may be levied against the Distributor or others in connection with this Agreement or its activities hereunder.
X. WARRANTIES
A. RBC hereby warrants that the Products shall be manufactured in accordance with the product specifications and in conformity with all applicable standards as described in Section V.B., above. The Distributor understands that RBC will develop and introduce from time to time product changes and/or modifications. The Distributor agrees that these product changes and/or modifications will be introduced into its line, if approved by governmental authority. The Distributor agrees to introduce into its line the new or modified product as soon as commercially reasonable.
B. Except as otherwise provided herein, RBC makes no warranty of merchantability or fitness for a particular purpose or any other warranty either expressed or implied, or any affirmation of fact or representation. RBC shall not be liable to the Distributor for any liability, claim, loss, damage, or expense of any kind or for any direct, consequential, collateral, or incidental damages relative to or arising from or caused directly or indirectly by the Products or the use thereof, unless expressly set forth in or contemplated by this Agreement. Except as otherwise provided herein, the Distributor’s exclusive remedy for any cause of action relating to breach of this warranty shall be limited to the prompt replacement by RBC of the defective Product, and RBC’s liability to the consumer for any and all losses or damages resulting from any breach of any Product warranty, including negligence, shall in no event exceed the purchase price of the Product in accordance with Section I hereto or, at the election of RBC, the replacement of the Product.
C. Product Liability Insurance. The Distributor will undertake to obtain its own product liability insurance to cover potential claims within the Territory. RBC hereby agrees to, at its expense, during the term of this Agreement, cause to be maintained product liability insurance covering claims brought within the United States with the named insured thereon being RBC. The insured amounts shall be no less than $1,000,000 per occurrence and $2,000,000 in the aggregate. This product liability insurance shall cover all Products sold by RBC to the Distributor.
XI. PATENTS
If the Distributor receives a claim that any Products or part thereof manufactured or distributed by RBC infringes any patent, the Distributor shall notify RBC promptly in writing and give RBC information, assistance, and exclusive authority to evaluate, defend, and settle such claim. RBC shall then at its own expense and option (1) settle such claims, (2) procure for the Distributor the right to use and sell such Products in the Territory, (3) replace or modify the Products to avoid infringement, (4) remove the Products
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and refund the Distributor’s purchase price, or (5) defend against such claim. Provided such timely notice has been given by the Distributor, should any court of competent jurisdiction hold such Product to constitute infringement, RBC shall indemnify Distributor of all costs and damages finally awarded on account of such infringement and, if the use of such Products is enjoined, RBC shall, at its option and sole expense, take one or more of the actions under (2), (3), (4), or (5) above.
XII. TRADEMARKS
A. The Products shall be delivered with the trademark “RBC Life Sciences” or “RBC” affixed thereto. The Distributor acknowledges that RBC, a corporation incorporated under the laws of the State of Nevada, USA, is to its knowledge the owner of certain trademarks and trade names, including, but not limited to, “RBC Life Sciences”, “Pure Life”, and “Royal Botanica”. RBC will promptly register, or authorize the Distributor to register, under RBC’s name, the “RBC Life Sciences” trademark and trade name in the Territory at RBC’s sole cost and expense. In addition, at RBC’s sole discretion, RBC agrees to register, or authorize the Distributor to register, under RBC’s name, such other RBC trademarks and trade names in the Territory at RBC’s sole cost and expense as Distributor may reasonably request. RBC shall promptly reimburse any registration expenses incurred by the Distributor on RBC’s behalf to the Distributor upon submission of the Distributor’s receipts or other evidence of payment of such expenses. The Distributor further acknowledges that its only right with respect to the trademark and trade name “RBC Life Sciences”, or any other RBC trademark and/or trade name, is to sell and promote the Products bearing such trademark(s) and trade name(s) in the Territory. The Distributor shall not register any RBC trademarks and/or trade names in its own name. The Distributor is authorized to use the name “RBC Life Sciences” or “RBC” as the Distributor sees fit, as a corporate name or trade name. Distributor’s right to use RBC trademarks and trade names shall terminate upon the termination or expiration of this Agreement.
B. Notwithstanding the provisions of the preceding paragraph, the Distributor agrees to transfer, or cause to be transferred, the ownership of any RBC trademark and/or trade name that is owned in the Territory by any party other than RBC as of the date of this Agreement.
XIII. LIMITATION OF LIABILITY
A. Except as set forth in the preceding and following Sections, the total liability of RBC to the Distributor on any claim, whether in contract, tort, or otherwise, arising out of, connected with, or resulting from the manufacture, sale, delivery, resale, replacement or use of any Products shall not exceed the price allocable to the Products or part thereof which gives rise to the claim.
B. In no event shall RBC be liable to the Distributor for any special or consequential damages including, but not limited to, damages for loss of revenue, cost of capital, claims of customers for supply interruptions or failure of supply, and costs and expenses incurred in connection with transportation or substitute facilities or supply sources. The foregoing not withstanding, each party may be liable for damages caused to the other party by means of fraud, transmission of false information, or violations of law. Such damages will be limited to cost of goods, freight and actual damages.
XIV. INDEMNIFICATION
A. The Distributor agrees to indemnify and hold harmless RBC from and against any and all claims for losses, liability, or damage, pecuniary or physical, and reasonable attorneys’ fees and expenses, arising out of, or in connection with any acts or omissions of the Distributor in the distribution of the Products in the Territory pursuant to this Agreement. Such acts or omissions include, but are not limited to, any breach or alleged breach of this Agreement or any of its provisions or warranties, or any violation or failure to comply with all applicable laws, regulations, or codes of the Territory which pertain to the importation, distribution, and sale of the Products to or in the Territory.
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B. RBC agrees to indemnify and hold harmless the Distributor and its employees, agents, and downline or sub-distributors, from and against, any and all claims for losses, liability, or damage, pecuniary or physical, and reasonable attorneys’ fees and expenses, arising out of, or in connection with any acts or omissions of RBC. Such acts or omissions include, but are not limited to, any breach or alleged breach of this Agreement or any of its provisions or warranties, any manufacture, sale, or distribution by RBC of any Product allegedly or actually defective by design or otherwise, any breach of any duty of RBC to give any adequate pre-sale, post-sale, or continuing warning of any alleged or actual defect or non-obvious risks or dangers of any Product to consumers, any alleged or actual infringement by RBC of any patent, copyright, trademark, service xxxx, trade secret, or other intellectual property right of another, or any violation or failure by RBC to substantially comply with all applicable laws, regulations, or codes that pertain to the export, distribution, and sale of the Products in the USA.
C. In case any claim, demand, or action shall be brought by any third party including, but not limited to, any governmental authority, against a party entitled to indemnity under Section XIV.A. or XIV.B., above, such party shall promptly notify the other party or parties, as the case may be, from whom indemnity is or may validly be sought, in writing, and the indemnifying party or parties shall assume the defense thereof, including the employment of counsel. In addition, in case a party hereto shall become aware of any facts which might result in any such claim, demand, or action, such party shall promptly notify the other party or parties who would be obligated to provide indemnity hereunder with respect to such claim, demand, or action, and such other party or parties shall have the right to take such action as it or they may deem appropriate to resolve such matter. The indemnified party or parties shall have the right to employ separate counsel in such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties, unless the employment of such counsel has been specifically authorized by the indemnifying party or parties. Any settlement of any action subject to indemnity hereunder shall require the consent of the indemnified and the indemnifying party, which consent shall not be unreasonably withheld and which shall be given within five (5) days following the giving of notice of such proposed settlement. The indemnifying party or parties shall not be liable for any settlement of any action affected without its or their consent, but if settled with the consent of the indemnifying party or parties, or if there be a final judgement for the plaintiff in any such action, the indemnifying party or parties shall indemnify and hold harmless the indemnified party from and against any loss or liability by reason of such settlement or judgement. If requested by the indemnifying party, the indemnified party shall cooperate with the indemnifying party and its counsel and use its best efforts in contesting any such claim or, if appropriate, in making any counter-claim or cross-complaint against the party asserting the claim, provided that the indemnifying party will reimburse the indemnified party for reasonable expenses incurred in so co-operating upon presentation of receipts or other evidence of such expenses. The indemnifying party and its representatives shall have full and complete access during reasonable hours to all books, records, and files of the indemnified party expressly related to the defense of any claim for indemnification undertaken by the indemnifying party pursuant to this Section, or for any other purpose in connection therewith, provided that the indemnifying party shall safeguard and maintain the confidentiality of all such books, records, and files.
XV. TERM AND TERMINATION
A. This Agreement will be effective as of the date first written above and shall continue for five (5) years thereafter, unless terminated by mutual agreement of the parties or otherwise in accordance with the terms hereof.
B. In addition to the provisions of Section XV.A., above, this Agreement may be terminated with immediate effect upon the occurrence of any of the following events:
1. The insolvency of either party; its suffering or committing any act of insolvency, or the inability of either party to pay its debts when due or within 180 days of due date;
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2. Either party’s bankruptcy or liquidation, whether voluntary or involuntary, or the appointment for it of a receiver or liquidator;
3. An attempted assignment of this Agreement, except as provided in Section XVII.A, below;
4. Any non-payment by the Distributor to RBC of any indebtedness under this Agreement, provided the Distributor has received written notice of such default and has had thirty (30) days to cure such default but failed to do so;
5. The failure of a breaching party to remedy a breach of this Agreement within thirty (30) days after written notice of breach has been served on the breaching party by the non-breaching party indicating the nature of the breach or purported breach.
C. In the event of termination or expiration of this Agreement:
1. The Distributor’s personal commission rights and downline position as a RBC Distributor shall not be affected;
2. All downline Members’ Agreements within the Territory become the property of RBC;
3. Distributor agrees to co-operate with RBC, to surrender all records to RBC, and to do whatever is reasonably required by RBC in order to continue a viable business with RBC Members in the Territory; and
D. Upon termination of this Agreement, the Distributor will immediately cease any and all use of any and all RBC trademarks and/or tradenames including, but not limited to, “RBC Life Sciences” and “RBC”, and will not sell any goods under such trademarks or tradenames or any similar names or marks.
XVI. MINIMUM PERFORMANCE STANDARDS
In order to induce RBC to grant the Distributor the rights granted hereunder, the Distributor agrees to meet the following minimum annual wholesale quotas.
A. For the one (1) year period beginning as of the date hereof, the Distributor agrees to purchase an aggregate minimum of three hundred thousand Dollars (U.S. $300,000) of Products based on the Export Price List, referenced hereto as Appendix A.
B. For Years two (2) through five (5) of this Agreement, the Distributor agrees to purchase the following aggregate minimum amounts of Products based on the Export Price List, referenced hereto as Appendix A:
| Year |
Amount | ||
| 2 |
US $ | 600,000 | |
| 3 |
US $ | 750,000 | |
| 4 |
US $ | 900,000 | |
| 5 |
US $ | 1,100,000 | |
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Distributor’s performance of its obligations under paragraphs A. and B. of this Section shall be excused for the duration of any delay arising directly or indirectly from acts of God, unforeseeable circumstances, acts (including delay or failure to act) of any governmental authority, war (declared or undeclared), riot, revolution, fires, strikes, labor disputes, sabotage, or epidemics. Further, if at the end of any year in the first four years of this Agreement, inclusive, the Distributor has failed to purchase the aggregate minimum amount required for such year, the Distributor shall have a grace period of thirty (30) days from the end of such year to cure this deficiency.
C. In case the Distributor in any one year, including the applicable thirty (30) day grace period, does not purchase from RBC the respective aggregate minimum amount set forth in this Section, RBC may, at its option, convert the exclusive rights granted to the Distributor hereunder into non-exclusive rights.
D. At least ninety (90) days prior to the expiration of the initial five (5) year term of this Agreement (Initial Term), the parties shall meet to discuss the terms under which the Agreement shall be renewed. If the parties fail to enter into a renewal agreement prior to the expiration of the Initial Term, this Agreement will expire at the end of such Initial Term.
XVII. FIRST RIGHT OF REFUSAL
RBC agrees to provide a first right of refusal to MK as set out in the following paragraphs:
A. The first right of refusal will apply to the regions of Japan, Taiwan, Hong Kong, China, and the Philippines.
B. For each region a license fee to be determined based on the region and market will be paid by MK as an integral component of the license agreement but such fee will not be less then US$ 50,000
C. For each region an initial order will be placed by MK based on the Export Price List, referenced hereto as Appendix A. The amount of such initial order will be based on the region and market but such order will not be less then US$ 100,000.
XVIII. MISCELLANEOUS
A. Entire Agreement. This Agreement, together with all Appendices, Exhibits, and attachments hereto, constitutes the entire agreement between the parties and there are no agreements or commitments except as set forth herein. This Agreement supercedes all prior agreements, whether written or oral, that exist or may have existed between the parties prior to the effective date of this Agreement. This Agreement may be amended, modified in whole or in part, or supplemented by an agreement in writing that makes reference to this Agreement and is executed by authorized officers of the parties. No party hereto shall assign its rights or obligations under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. The parties can assign this Agreement without the necessity of obtaining prior written consent of the other party where such assignment is to a subsidiary or other entity controlled by their respective companies, provided that as a condition to any such assignment, the assignee shall assume and become liable for any and all of the assignor’s obligations under this Agreement. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.
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B. Notices. Any notices required or permitted to be given under this Agreement shall be in writing and shall be given by addressing the same to such other party(ies) at the address set forth below. Such notices shall be given to all parties by (1) overnight or highest priority expedited delivery by an internationally recognized air freight courier service (e.g., UPS, Federal Express, DHL) (herein referred to as “Courier Delivery”), (2) delivery of the same personally to such other party(ies), or (3) transmitting by facsimile and mailing the original. Any such notice shall be deemed to have been given three (3) days after timely delivery to an internationally recognized air freight courier service; if by personal delivery, upon such delivery; or if by facsimile, the day of transmission if made within customary business hours, or if not transmitted within customary business hours, the following business day.
Notices to RBC shall be addressed and delivered to:
0000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 00000 XXX
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attn.: Xxxxx Xxxxxxxx, President
Notices to the Distributor shall be addressed and delivered to:
Merry Key
15th Floor Sung Xxx Xxxxxxxx
000-00, Xxx Xxxx Xxxx, Xxxx Name Gu
Seoul, Korea. 135-090
Telephone: 000-00-00-0000-0000
Facsimile: 011-82-26-207-8836
Attn: Xxxx Xxxx
C. Separability of Provisions. A judicial or administrative declaration by any court of competent jurisdiction of the invalidity of any one or more of the provisions hereof shall not invalidate the remaining provisions of this Agreement in any jurisdiction, nor shall such declaration have any effect on the validity or interpretation of this Agreement outside of that jurisdiction. The parties undertake, however, to negotiate in good faith to find a substitute provision as close as possible to the invalid provision, taking into consideration each party’s intentions with respect to this Agreement.
D. Waiver of Compliance. Any failure by any party hereto to enforce at any time any term or condition under this Agreement shall not be construed as a waiver of that party’s right to enforce each and every term of this Agreement.
E. Disputes. Any controversy or claim arising out of or in relation to this Agreement, or the breach or alleged breach thereof, which cannot be settled amicably, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the International Arbitration Association and the provisions of this Section. Any party may initiate arbitration by giving written notice to the other party of an intention to arbitrate and by filing with the Centre for International Commercial Arbitration located in Honolulu, Hawaii (or such other Centre location as the parties may agree) three (3) copies of such notice
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and three (3) copies of this Agreement together with the appropriate filing fee. The arbitration shall be conducted before three (3) arbitrators who shall be appointed in accordance with the said rules. The arbitration proceedings shall be held at the Centre location agreed to by the parties and shall be subject to the above arbitration rules. The arbitrators may grant any legal and/or equitable relief to which a party may be entitled under the law or legal theory under which the party seeks relief, provided, however, that no claim may be made for any special, indirect, consequential, or punitive damages arising out of or related to this Agreement, or any act, omission, or event occurring in connection therewith, except that punitive damages may be awarded for wilful or wanton misconduct. The arbitration award shall be given within six (6) months from appointment of the third arbitrator. The award given by the three arbitrators or the majority thereof, shall be final and binding on the parties and shall be subject to no appeal. The award shall not serve as precedent or authority in any subsequent proceeding, provided, however, that if the losing party should fail to comply with the award, the prevailing party may apply to any court having jurisdiction for an order confirming the award in accordance with applicable law. The award can be enforced in any court having jurisdiction. Unless otherwise required by law or court orders, the substance of any arbitration proceedings shall be kept confidential by all parties and by the arbitrators; however, the fact that such a proceeding exists, or that an award has been rendered, need not be kept confidential. The costs of the proceeding, including the fees and costs of attorneys, accountants, and witnesses, and the compensation of the arbitrators, shall be assessed by the arbitrators against the parties according to the arbitrators’ determination of fault.
F. Governing Law. The rights and obligations of the parties under this Agreement shall not be governed by the provisions of the 1980 U.N. Convention on Contracts for the International Sale of Goods; rather these rights and obligations shall be governed by the law of the State of Texas, USA, including its provisions of the Uniform Commercial Code.
G. Captions; Counterparts. The captions in this Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation of any provision of this Agreement. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
H. Further Instruments. The parties hereto agree to execute and deliver such instruments and take such other action as shall be reasonably necessary, or as shall be reasonably requested by any other party, in order to carry out the transactions and agreements contemplated by this Agreement.
I. Territory Visits. All transportation, lodging, and meal costs and other incidental expenses in connection with any travel by RBC officers, directors, employees, or other personnel at the request or invitation of the Distributor, to or in the Territory, shall be borne by the Distributor.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate as of the date first written above, by their duly authorized representatives.
| RBC | Life Sciences, Inc., a Nevada Corporation |
| By: | Xxxxx Xxxxxxxx |
By: | /s/ Jong Xxx Xxxx | |||||
| Xxxxx Xxxxxxxx, President | Jong Xxx Xxxx | |||||||
| Date: | October 31, 2006 | Date: | October 31, 2006 | |||||
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