Exhibit 10.7
STOREBRO MACHINE AB
TRANSLATION
Between the companies MWD-Vertriebs GmbH, Xxxxxxxxxxx 00, X-00000
Xxxxxxxxx-Xxxxxxxxx (hereafter referred to as MWD) and Storebro Machine AB, X.X.
Xxx 00. S-590 83 Storebro (hereafter referred to as STM) the following agreement
has been made:
AGENCY AGREEMENT
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Clause 1 - Object of the Agency
CNC-lathe-program in standard and special design as well as the conventional
lathe-model "SB-N".
Clause 2 - District of the Agency
Post code areas 6-7-8 as well as 90, 91, 92, 93, 94, 95, 96, 97 and 98.
Additional districts on inquiry and after approval. (by STM)
Clause 3 - Competitors/competing manufacture
Beyond the existing agency programmes "Xxxxxxxx" and "Xxxxxxxx", no additional
CNC-Machine products may be included, offered or sold under the programme.
Clause 4 - Sales budget
The sales budget for the following calendar year shall be established two to
three months before the end of the current calendar year.
Clause 5 - Firm orders
An order consisting of at least 12 CNC machines with delivery dates shall be
guaranteed for each calandar year.
Clause 6 - Purchase prices
The purchase prices shall be agreed upon before the placing of the firm, annual
order.
Clause 7 - Sales prices
The sales price shall be determined by agreement between MWD and STM.
STOREBRO MACHINE AB
Clause 8 - Terms of delivery
The terms of delivery are free customer's address inclusive of packaging.
Clause 9 - Terms of payment
By bank comfirmation on proof of preparedness to deliver.
Clause 10 - Guarantees
The guarantee period is twelve months or 3000 working hours counting from the
date of putting into service. For demonstration machines or machines in stock
the guarantee period is based on the date of delivery from Storebro.
Repairs to Storebro machines may be performed only by MWD during the gaurantee
period.
Clause 11 - Provisions concerning putting into service
The putting into service must be performed by STM according to the record
(protocol) of putting into service. A copy of the record shall after completion
be sent to STM without delay.
Clause 12 - Performance of work during the guarantee period
Work during the guarantee period relating to control system, electricity,
electronics as well as mechanics may only be performed after approval by STM and
under an assignment number. STM will refuse to pay for work performed without an
assignment number.
Clause 13 - Exhibitions and advertisement
Exhibitions, advertisement and similar activities where STM participates
financially or in some other form, must be approved in writing by STM. Amounts
that are invoiced without this approval will not be accepted.
Clause 14 - Special terms and conditions
All special terms and conditions must be confirmed in writing.
STOREBRO MACHINE AB
Clause 15 - Period of validity
This agreement shall be valid for one calendar year. If neither of the
contracting parties cancels the agreement three months before the end of the
calendar year, the period of validity will be extended by one calendar year.
Clause 16 - Immediate termination
If one of the contracting parties is fundamentally in breach of any part of this
agreement and does not immediately remedy this breach at the request of the
other party, this agreement shall be terminated with immediate effect. The
agreement shall also be terminated forthwith in case of suspension of payments
or bankruptcy.
Clause 17 - Return of documentation
If this agreement is terminated for any reason, all technical documentation
shall be returned (to STM)
Clause 18 - Discharge/Termination
STM agrees to invoice all business made within the area of the agency through
MWD.
Notice of termination shall be given by registered letter.
This agreement has been drawn up in duplicate.
Storebro, 23 September 1995 Illerberg, 4 October 1995
STOREBRO MACHINE AB MWD Vertriebs GmbH
