NOW, THEREFORE, the Parties hereby agree as follows:
1. DEFINITIONS
In this Agreement the following terms shall, except where the context otherwise requires, have the following meanings:
"Agreement" shall mean this distribution agreement including the appendix hereto as the same may from time to time be amended.
"Products" shall mean and be limited to all beauty products and treatments developed by B.R. including, without limitation (a) the Remodeling Face Machine, Micro-Puncture Lab machine and Skin Instant Lab machine and related facial and body treatments and all mixes, creams, emulsions, oils, lotions, masks and other related products; (b) the methods, techniques, and trainings on the application of such beauty products and machines (c) the education of the consumer with respect to the benefits of the Products.
"Professional Customers" shall mean and be limited to those beauty salons, spas, physicians, medical clinics and other entities which intend to have the right to provide treatments and/or resell the Products to customers in the Territory have received training with respect to the Products and have entered into a written sublicense agreement satisfactory in form and substance to B.R.
"Territory" Shall mean --------------.
2. PURPOSE OF THE AGREEMENT
The purpose of this Agreement is to define the terms and conditions under which:
- BR grants to the Distributor, who accepts, an exclusive right to distribute, advertise the Products to Professional Customers and a non exclusive right to use the Trademark on the Territory.
- The Distributor shall import, distribute and advertise the Product in the Territory.
3. BR OBLIGATIONS
3.1 B.R. hereby grants the Distributor and the Distributor accepts during the Term of this Agreement, the exclusive right to promote, advertise, merchandise and sell the Products throughout the Territory to the general public for consumption and for resale.
3.2 B.R. hereby grants the Distributor a limited license during the Term of this Agreement, to use the Trademarks only in the Territory and only with respect to the Products subject to the terms and provisions hereof.
3.3 Each year, B.R. agrees to provide at least three days training to the Distributor's employees in the Territory under the responsibility of a qualified and highly familiarized person with Products and techniques knowledge of B.R. B.R. will take care of B.R. Staff's airfares. The Distributor shall pay for all fees the B.R. Staff's since their arrival to their departure (accommodation, meals, internal transport …). Each trip shall be planned 3 months in advance. In this case the Distributor shall propose which hotels and types of air fares shall be bought, as well as the local accommodation, transportation and foods expenses.
4. DISTRIBUTORS OBLIGATIONS
4.1 General obligations
4.1.1. The Distributor accepts to import, distribute and advertise the methodology and the Products in the Territory such that their intrinsic qualities and the image of the Trademark cannot be altered by it.
4.1.2 The Distributor warrants that it will devote sufficient attention and financial resources and shall hire employees with sufficient time and expertise for its business and operations hereunder and shall use its best efforts in selling and advertising Products.
4.1.3 The Distributor shall use reasonable efforts to promote the Products and to assure that the reputation of high quality, the standards of the Products and good will associated with the Trademarks are at all times maintained and safeguarded.
4.1.4. Consequently, the Distributor shall not run any sales, promotions or otherwise offer discounts on any of Products or related treatments without B.R.'s prior written consent, which shall not be unreasonably withheld.
4.1.5 The Distributor shall import, distribute and advertise the methodology and Products at its sole risk.
4.1.6 The sale of the Products is exclusively limited to sales to Professional Customers by the Distributor, which has been trained by the Distributor.
4.1.7 The Distributor shall not directly or indirectly sell any Product to any person or entity outside the Territory or who intends to resell or redistribute any Product outside of the Territory.
4.1.8 The Distributor and its professional customers shall not sell any Product on the Internet or by TV whether inside or outside the Territory. In addition, the Distributor will make sure all his professional customers will respect BIOLOGIQUE RECHERCHE Internet policy.
4.1.9 The Distributor shall have a sufficient quantity of all Products in stock to enable himself to serve his professional customers in best terms.
4.1.10 The Distributor shall ensure that retail Products are never sold at a price inferior to French retail prices, taxes included.
4.2 Trademarks
4.2.1 The Products will be sold only under the Trademarks and/or commercial names owned or used by B.R.
4.2.2 The Trademarks will be used exclusively for the Products and not for any other beauty products distributed or sold by anyone other than B.R.
4.2.3 The Distributor shall explicitly refrain from any act or step whatsoever that has or that may have the result of conferring upon itself private rights over the Trademarks, and/or any commercial name owned or used by BR and/or on the Products (including formula and machines) and/or BR's methodology and know how, in any country whatsoever. The Distributor further undertakes to do nothing that may do any harm, either directly or indirectly, to the good name of the Trademark and/or of BR and/or to the rights of the Licensor over the Trademarks and/or the Products.
4.2.4 No other name, symbol or designation shall be used with any of the Trademarks.
4.2.5 The Distributor undertakes to keep watch over the Territory and immediately to inform BR in writing of any Trademarks infringement and/or imitation or counterfeit of the Products, whether actual or potential, and of any complaint or legal action concerning the Trademarks and/or the Products, by sending it all the relevant factors and all information that is useful for conserving their respective interests.
4.2.6 The distributor will check permanently the web to secure that no online transactions with BR Products are made and that the reputation of BR is protected.
4.2.7 By explicit agreement between the Parties, BR may, if it deems it necessary, solely bring suit for any infringement, it being specified that it will, as necessary, alone incur the cost, will reap the entire benefit of any legal interest or other monetary sanctions that may be obtained in such connection, notwithstanding the possibility of reaching any settlement that it shall deem appropriate.
4.2.8 The Distributor shall, however, be entitled to bring suit against any third party on any legal grounds, to the extent of its interest and solely at its own costs, risks and profits, as long as it notifies BR thereof in writing in advance. The Parties may also agree on any other means of pursuing such third parties and, in particular, on bringing joint suit.
4.3 Non competition
The Distributor shall not, directly or indirectly, in the Territory, manufacture, sell, distribute, market or advertise any beauty methodology and Products, treatments that are similar to or are competitive with the BR.
4.4 Compliance with law
4.4.1 The Distributor will obtain, at its sole costs, all governmental or administrative approval, if any, that may be required in the Territory.
4.4.2 The Distributor is liable for the importation of the Products in the Territory. All costs needed to comply with any regulation or law shall be born and paid by the Distributor including without limitation administrative costs or packaging modifications costs.
4.4.3 The Distributor shall sell and promote the Methodology and Products and provide advice to B.R. as to the manufacturing and labeling of the Products in accordance with all applicable laws and regulation in the Territory including, without limitation, health, drugs and sanitation laws and regulations.
4.4.4 The Distributor shall bear the whole liability regarding the compliance with the applicable laws of the Territory required for the promotion, advertisement and sale of the Methodology and Products.
4.5 Trainings
4.5.1 The Distributor will insure that Professional Customers’ staff will receive a training with respect to the BR Methodology and Products and will always propose to the final client a skin's diagnosis prior to any sale or use of any Products.
4.5.2 Employees of the Distributor who have been trained by the B.R. staff and who have been validated by the B.R staff shall train all other Distributor's employees involved in the sales of the Products. The Distributor will insure he has at least one local employee devoted to training in the Territory.
4.5.3 The Distributor shall attend the Regional Seminar and the Distributors Conventions.
4.6 Advertising
4.6.1 Distributor shall develop a variety of packages of Products and the related treatments for the initial launching of the Products in the Territory and for other promotional ventures. The Distributor shall not sell or create any packages of Products or related treatments without B.R.'s prior consent.
4.6.2 The Distributor shall submit in writing to B.R. all advertising and promotional materials and all printed materials for all Products during conceptual stages before the same is used, circulated, or displayed and shall make any changes therein or modification thereto which may be suggested by B.R. The Distributor shall not use any advertising or promotional material not so approved by B.R.
4.6.3 B.R. shall have seven (7) days from the date of receipt of any samples provided to it under this Agreement within which to review such samples. If B.R. does not send its written disapproval within such seven (7) days period, B.R. shall automatically be deemed to have approved such sample. Any approval or deemed given shall not apply t