1.APPOINTMENT
1.1 Appointment. PSI hereby appoints AL-MERRI as the exclusive distributor in the Territory for the products described in Schedule A attached hereto (the "Products"), upon the terms and conditions specified in this Agreement. Subject to the explanation of “exclusivity” in Section 1.2 below, PSI represents and warrants that it has not appointed any distributor for the Territory and during the term of this Agreement will not appoint a distributor for any portion of the Territory with respect to which AL-MERRI holds exclusive distribution rights under this Agreement.
1.2Exclusivity. PSI shall not sell, market or distribute any products or formulations similar to any Products, nor grant any license or rights to nor authorize any third party to sell, market or distribute Products or formulations similar to any Products, whether directly or indirectly, to or in the Territory during the term of this Agreement or its renewal. PSI will exert reasonable efforts to discourage other distributors and agents from selling the Products into the Territory, but it is recognized that PSI may be unable to prevent all instances of such sales, and PSI shall have no responsibility or obligation to AL-MERRI for such sales. AL-MERRI shall not directly or indirectly sell, market or distribute any Products outside the Territory during the term of this Agreement, including any extension or renewal hereof. PSI shall be the sole and exclusive supplier of all of AL-MERRI's need for the Products.
1.3 Independent Relationship; No Agency. Each Party hereto shall act as independent contractor. This Agreement does not make either Party the employee, agent, or representative of the other for any purpose. AL-MERRI is granted no right or authority to assume, or to create any obligation or responsibility, express or implied, in the name of or on behalf of PSI, except as may be specifically authorized in writing signed by an authorized officer of PSI. AL-MERRI shall have the sole responsibility for the satisfaction of any and all claims made by third parties on account of AL-MERRI’s conduct or that of its employees or agents in the performance of this Agreement.
1.4Compensation. The Parties agree that AL-MERRI’s entire compensation for its actions and obligations under this Agreement is the gross profit of AL-MERRI from buying the Products from PSI and re-selling the Products to AL-MERRI’s customers, less AL-MERRI’s related costs as required by this Agreement or by AL-MERRI’s business, and that in no case is PSI to provide AL-MERRI with a commission on sales or with direct or indirect damages, compensation, or indemnity of any sort for termination or non-renewal of this Agreement due to any reason other than PSI’s breach. Except where such damages or indemnity arise from PSI’s breach of this Agreement, AL-MERRI hereby waives any rights to such damages or indemnity that might otherwise apply. It is agreed and recognized that the prices of the Products reflect full compensation to AL-MERRI and are established with the foregoing waiver in mind.