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5. DUTIES OF DISTRIBUTOR 5.1 Registration of Products in the Territory; Registration of AL-MERRI; Transfer. AL-MERRI shall, at its own expense, register the Products as may be required by any regulatory authorities in the Territory. If necessary, PSI shall make reasonable efforts to supply AL-MERRI promptly with non-proprietary know-how, technical data, and clinical data in order to assist AL-MERRI with registration of the Products with regulatory authorities in the Territory. Upon written request by PSI following termination or expiration of this Agreement for any reason, AL-MERRI shall promptly transfer registrations of the Products, any and all websites with names incorporating or referring to PSI or any of its products, and any registration of AL-MERRI as importer or distributor of the Products, to PSI or PSI’s designee, at a price to PSI not to exceed the actual, documented and publicly documentable cost for such registration, adjusted as PSI may reasonably calculate with respect to the term of registration remaining, as compared to the term originally authorized by the relevant authorities, but with due attention to the alternative cost of acquiring a new registration. AL-MERRI agrees not to hinder, delay or obstruct the smooth transition to a new distributor or the transfer of registrations as described herein. This provision shall survive any expiration or termination of this Agreement. 5.2 Adaptation to Territory. PSI will provide the Products to AL-MERRI in a condition ready for the market in the United States with respect to packaging, labeling, and any applicable United States government approvals. AL-MERRI shall be responsible for determining the requirements of law and market conditions in the Territory, for informing PSI thereof and for any adaptations that are required under local law or are reasonably necessary to meet local market conditions. AL-MERRI will provide all necessary stickers, labels, and packaging required for the market(s) in the Territory and will affix, alter, or repackage as needed, but only as needed, and only after presenting proposed stickers, labels, packaging, and the like to PSI for PSI’s approval or rejection of appearance, company name, and similar matters, thirty (30) or more days prior to using the stickers, labels, packaging and the like. Rejected items cannot be used, and approval of items does not create for PSI any liability for use of items that are illegal, misleading, or otherwise inappropriate in the Territory. AL-MERRI agrees to indemnify PSI and hold PSI harmless with respect to labeling, packaging, presentation, and registration of Products in the Territory. AL-MERRI will ensure that all labeling and packaging properly reflects the name of PSI and of the respective products. 5.3 Product Liability Insurance. AL-MERRI shall, within thirty (30) days of the Effective Date of this Agreement, provide PSI with evidence, such as a valid certificate of insurance, demonstrating that AL-MERRI is fully insured against any liability that may arise from AL-MERRI’s performance under this Agreement, and shall maintain such insurance throughout the term of this Agreement, and shall supply evidence of insurance from time to time as PSI may reasonablyد request. AL-MERRI shall maintain at least one hundred thousand (100,000) US dollars’ product liability insurance throughout the term of this Agreement and shall provide evidence thereof to PSI from time to time upon the latter’s written request, though no more often than twice per calendar year. 5.4 Advertising and Promotional Claims. AL-MERRI may develop and use product literature and promotional materials, provided that such materials are consistent with the highest professional standards to protect the reputation of both Parties. AL-MERRI shall provide PSI with pre-publication drafts of all promotional literature, advertising text and related documents for review and consent and shall not use them without PSI’s consent, which PSI shall not unreasonably withhold or delay. Maintaining always the highest standards of quality and image, AL-MERRI shall at its cost advertise Products to such an extent and in such media as is reasonably necessary to encourage the sale of Products in the Territory. 5.5 Maintenance and training of Sales Force. AL-MERRI shall at all times, and at its own expense, maintain an adequate staff of sales personnel necessary to carry out AL-MERRI’s obligations under this Agreement and shall fully train said sales personnel with respect to all pertinent aspects of the Products. AL-MERRI represents that at the time of signing this Agreement AL-MERRI already has sufficient personnel to perform its obligations under this Agreement and will not hire any personnel specifically or primarily to perform such obligations. 5.6 Minimum Annual Purchases. AL-MERRI agrees to purchase from PSI the volumes of Products having an aggregate price of at least the amounts specified in the attached Schedule A for each period specified therein. Increases in minimum annual purchases are as shown in Schedule A hereof, but at the time of renewal or at any other time the Parties may agree on a higher or lower minimum requirement, provided that they do so explicitly, in a written document signed by both Parties. Other provisions of this Agreement notwithstanding, and without limiting the rights provided for in Article 15 of this Agreement, and further without regard to any renewal of this Agreement that would otherwise occur or has occurred, PSI shall have the right to terminate this Agreement upon notice within two weeks after the end of any year hereof in the event that AL-MERRI has failed to make the minimum annual purchases described in Schedule A, and such termination shall be considered to be for cause and without creating any liability whatsoever to AL-MERRI by PSI for such termination. Alternatively, and in PSI’s sole discretion, PSI may remove part of the assigned geographical area from the Territory as provided in Section 1.3 or may convert AL-MERRI's status to nonexclusive distributor in any or all of the Territory, as determined by PRI. Conversion to nonexclusive status means that PRI may market and sell directly or indirectly into the specified parts of the Territory and may appoint one or more other representatives or distributors in or for such parts of the Territory. PSI will consider these alternatives to termination if AL-MERRI so requests and if AL-MERRI presents evidence to suggest that its shortfall is due in large part to difficulties in only one part of the geographical area then included in Schedule A, such that removal of such region(s) or country (countries) would be a more appropriate remedy than termination of this Agreement. 5.7 Other Duties of AL-MERRI. (a) AL-MERRI shall promptly handle all sales inquiries with respect to Products in the Territory, including sales leads furnished from time to time to AL-MERRI by PSI, (b) AL-MERRI shall at all times maintain sales data on the Products, including price lists, catalogs and technical bulletins, (c) AL-MERRI shall not in any way, directly or indirectly, disparage PSI or any of its subsidiaries, or any of PSI's products, including but not limited to the Products, and (d) AL-MERRI shall maintain the highest degree of business integrity at all times, including but not limited to compliance required by Section 13 below. 5.8 Nondisclosure; Noncompetition. 5.8.1AL-MERRI shall not disclose to any third party any information relating to PSI’s business or methods of carrying on business or any other information it receives from PSI that PSI considers to be confidential. AL-MERRI shall return all such information to PSI upon termination or expiration of the Agreement. Except as indicated in Section 5.8.2, information that PSI considers to be confidential is all information concerning the Products, unpublished product tests and specifications, formulas, future product plans, marketing and sales information, technical dossiers, ingredient lists, unpublished advertising drawings, customer names, customer addresses, customer order history, and other customer data and PSI information that AL-MERRI should reasonably understand to be confidential. It is explicitly agreed that this Section 5.8 applies to information disclosed to AL-MERRI on or after October 1, 2013.
5.8.2Information is not considered confidential if: it becomes public through no fault of AL-MERRI; AL-MERRI develops the information independently of receiving it from PSI; AL-MERRI already possessed the information at the time of receiving it from PSI; or AL-MERRI receives the information from a third party without restriction and without breach of any confidentiality agreement. However, filing information with governmental authorities by or on behalf of PSI is not considered to be publication (unless the government publishes it), and information so filed is not thereby removed from the protection of Section 5.8.1.
5.8.3. AL-MERRI shall not modify, duplicate, re-engineer, reverse engineer or develop any similar or insubstantially different Products or otherwise expropriate PSI's products or their characteristics, or assist a third party to do the same.
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