3. This agreement gives the distributor an exclusive right to market the products in the territory defined by the parties. This means that other traders are not in the territory. Make sure that an exclusive agreement is what both parties have negotiated and can tolerate, especially the manufacturer. The Distributor undertakes to provide and support the products contained in this agreement, pursuant to Schedule A of Schedule A, in accordance with sea Tow Internationals and the current Sea Tow 2 membership agreement, which use products included in this contract and are provided by customers who are an affordable member of Sea Tow Services International, Inc. (Sea Tow International) and who are referred to in Schedule A. Manufacturers should think long and hard about whether they can achieve the same result or almost the same result with a non-exclusive agreement. Non-exclusive agreements give the distributor less influence over the manufacturer in situations where the distributor is not doing well. These agreements are now more common than exclusive agreements.
If the manufacturer opts for an exclusive agreement, it must be particularly careful in considering the financial and marketing power and commitment of the distributor. Simply put, the back door or starting position is much weaker, and distributors who want to enter into exclusive deals and don`t easily withdraw from demand are usually willing to fight hard to keep their exclusive deals, no matter how bad they are. The above conditions form the whole agreement between the parties and reject any prior communication or agreement regarding the purpose of this agreement. There are no written or oral agreements directly or indirectly related to this agreement that are not set out here. This agreement can only be amended in writing and signed by both parties. d. Sub-agents. The distributor may designate sub-agents, negotiators, sub-representatives or others who act on behalf of the distributor or otherwise fulfill the distributor`s obligations under this agreement within the territory; provided that (i) any compensation for these sub-agents, sub-agents, sub-representatives or other persons, to act on behalf of the distributor or to discharge any other of the distributor`s obligations, is exclusively the responsibility of the distributor, and (ii) that appointment does not deprive the entity of the essential rights to which it is entitled under this Agreement. An agreement with this sub-agent, negotiator, deputy representative or any other person does not exceed the duration of this agreement. Approval of the allocation amount is a precondition for concluding such an OEM relationship.
In addition, all water vessel service agreements are negotiated on a case-by-case basis between RK/Distributor and the OEM on the other. 1. The manufacturer should be alert to the risks associated with establishing an exclusive long-term relationship with a distributor. Most of these relationships benefit the distributor, not the manufacturer. Notable cases are Coke, Pepsi, McDonald`s and others who have had to buy back their rights to these parts at considerable cost.