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11/8/2016

AgreementBetweenManufacturerAndSoleSellingAgentsWithCanvassingRights

Agreement Between Manufacturer And Sole Selling Agents With Canvassing


Rights

THIS AGREEMENT made on this day of 2000, between XYZ Pharmaceuticals Ltd., a company
incorporated under the Companies Act, 1956 and having its registered office at hereinafter called the
company(whichexpressionshall,unlessitberepugnanttothecontextormeaningthereof,bedeemedtomean
andincludeitssuccessorsandassigns)oftheONEPARTandABCPharmaceuticalsDistributorsLtd.,acompany
incorporated under the Companies Act, 1956 and having its registered office at hereinafter called the
distributor(whichexpressionshall,unlessitberepugnanttothecontextormeaningthereof,bedeemedtomean
andincludeitssuccessorsandassigns)oftheOTHERPART:
WHEREASthecompanyisengagedinthemanufactureofseveralmedicinesandhasdecidedtoappointasale
sellingagentforthewholeofIndiawithcanvassingrightsandthedistributorhasagreedtoworkassuchand
WHEREASthedistributorisbeingappointedatsolesellingagentshaving
exclusiverighttosellthemedicinesmanufacturedbythecompanyinwholeof
Indiaand
WHEREAS the Board of Directors of the company is making this appointment, subject to its approval by the
company in its first annual general meeting held after the date of this appointment and approval by Central
government.
NOWTHISAGREEMENTWITNESSETHASFOLLOWS:
1.Thecompanyappointsthedistributorassolesellingagentsforthesaleofallthemedicinesmanufacturedbyit
inthewholeofIndiaandthedistributoragreestoactassuchsolesellingagentsforthewholeofIndiaonthe
termsandconditionscontainedherein.
2.Theappointmentwillbeforaperiodoffiveyearscommencingfromthedateofthisagreement.However,it
maybeextendedforfurtherperiodsnotexceedingfiveyearsoneachoccasion.
3. The distributor shall canvass for, secure orders and push the sale of the medicines manufactured by the
companytothebestofitsabilityandexperienceinthewholeofIndiaandguaranteestosecureordersforthesale
ofmedicinestotheextentofthevalueofRs..inayearcommencingfromthedateofthisagreement.
4. The distributor will advertise the company products at its own cost and expenses by advertisements in
newspapers,journals,magazines,cinemaslidesorbyanyothermeans.However,thecompanymayadvertiseat
its own costs at its discretion whether in newspapers, journals, cinema slides or by any other means and shall
indicatethenameofthedistributorasitssolesellingagents.
5.Thedistributorshallemploymedicalrepresentativesatitsowncostandexpensesforcanvassingthecompany
productsamongstthedoctors,hospitals,nursinghomes,etc.Thedistributorshallalsoemployservants,staffat
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11/8/2016

AgreementBetweenManufacturerAndSoleSellingAgentsWithCanvassingRights

itsowncostandexpensesfordoingthebusinessofsolesellingagency.
6.ThedistributorwillbeentitledtoappointsubagentsforanyState/Districtoranyparticularareainthecountry
andonsuchtermsandconditionsasthedistributormaythinkfit.Howeverthecompanyshallnotbeliableforany
dealingbetweenthedistributoranditssubagents.
7.Thedistributorshallsubmittothecompanyweeklyreturnofthebusinesssecured,thedoctorsandhospitals
approachedandcanvassedduringthepreviousweek.
8.Thedistributorshallforwardtothecompanytheordersbookedandenquiriesreceivedbyitnotlaterthantwo
daysfromitsbooking.Thedistributorshallremitthemoneyreceivedbyitinadvancefromthecustomerstothe
companyandanaccountthereofshallbesubmittedtothecompanyeveryFriday.
9. The distributor shall not make any representation on behalf of the company except in conformity with the
instructionsissuedbythecompany.
10.Thedistributorshallbookordersofthecompanysproductsonthetermsandconditionsmentionedinthe
Scheduleattachedhereto.Thetermsandconditionsshallbesubjecttochangebycircularsorinstructionsbythe
companyfromtimetotimeandthedistributorwillbeboundtofollowtheinstructionsissuedbythecompany
fromtimetotime.
11.Thecompanyshallpayacommissionof%onallordersreceiveddirectlyorindirectlyfromthecustomers
through the distributor, which have been executed by the company. The company shall make payment of the
commissiontothedistributorattheendofeverymonth.
12.Duringthetermofthiscontract,thedistributorshallnotsellorattempttosellthemedicinesforanyother
Indianorforeigncompany.
13.Theagencymaybeterminatedbythecompany,atanytimeduringtheagencyperiodoffiveyears,aftergiving
onemonthsnoticethereof,incasethedistributorfailstocomplywiththeinstructionsissuedbyitorifitomitsto
complywithitsobligationimposeduponitunderthisagreementorifthedistributorfailstoobtainorprocure
ordersfortheminimumguaranteedamountorifthecompanyfeelsthatthedistributorisguiltyofanyconduct,
whichisprejudicialtotheinterestofthecompanyandinthismatterthedecisionoftheBoardofDirectorsofthe
companywillbefinal.Thedistributormayalsoterminatethisagreementatanytimeduringtheagencyperiod,
aftergivingonemonthsnoticethereof,ifthecompanyfailstoexecutetheordersbookedbythedistributororif
themedicinessuppliedbyitaresubstandardorifthecompanywithoutjustcausewithholdthepaymentofthe
commissionduetothedistributorundertheagreementforaperiodofthreemonths.
14.Thedistributorshallberesponsibletomakethepaymentofthemedicinessuppliedbythecompanyonthe
ordersreceivedbythedistributor,iftheconstituenttowhommedicinesweresuppliedbythecompanyrefusesto
payforthesamewithintwomonthsofthereceiptofmedicines.Thedistributorshallbeliableasthesuretyforthe
paymentofordersbookedbyit.
15.ThedistributorshalldepositasumofRs.withthecompanytoensuretheobligationsimposeduponit
underthisagreement.Thesaidsumshallnotcarryanyinterest.Thesaidsumwillberepayabletothedistributor
afteronemonthoftheterminationoftheagreementafteradjustmentofaccountsbetweentheparties.
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AgreementBetweenManufacturerAndSoleSellingAgentsWithCanvassingRights

16.Anyandalldisputes,controversies,differencesarisingbetweenthepartiesheretooutoforinrelationtothis
agreementoranybreachthereofshallbefinallysettledbyarbitrationbytwoarbitrators,onetobeappointedby
eachpartytothedisputeandthearbitratorsshall,beforetakinguponthemselvestheburdenofreferenceappoint
anumpire.Theawardgivenbythearbitratorsorumpireasthecasemaybe,shallbe,finalandbindingonthe
parties.
17.Attheterminationofthisagreementwhetherbyeffluxoftimeorotherwise,thecompanyshallnotbeliableto
payanycommissiontothedistributorfortheordersreceivedaftertheexpiryofagencyperiod.
18.Thisagreementshallbeexecutedinduplicate.Thecompanyshallretaintheoriginalandthedistributorthe
duplicate.Eachpartyshallbearthestampdutypayableinrespectofitscopy.
19.Unlessotherwiseagreedupon,therespectiveaddressesforcommunicationinrespectofanymatterrelatingto
thisagreementshallbeasunder:
FortheCompany:..
FortheDistributor:
IN WITNESS WHEREOF the parties have caused their common seal to be affixed to these presents and a
duplicatethereof,theday,monthandyearfirsthereinabovementioned.
Schedule
ThecommonsealofXYZPharmaceuticalsLtd.
washereuntoaffixedpursuanttotheResolutionofits
BoardofDirectorspassedon.dayof.2000,
inthepresenceofS/Shri.and..directors
oftheCompany,whohavesignedintokenthereof
ThecommonsealofABCPharmaceuticalsDistributorsLtd.,
washereuntoaffixedpursuanttotheResolutionofits
BoardofDirectorspassedondayof.2000,
inthepresenceofS/Shriand..directors
ofthecompanywhohavesignedintokenthereof.
WITNESSES
1.
2.

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