WHEREAS the Client is a machining parts manufacturer who is willing to create more business opportunities in the international aerospace market and other related markets,
WHEREAS the Agent is fully trusted by the Client for its well-known marketing expertise and professionalism in international business, as well as aerospace industries; therefore, the Client contact the Agent to develop international business opportunities in the international aerospace market (excluding Taiwan).
THEREFORE, THE PARTIES HAVE AGREED AS FOLLOWS:
Article 1 – Purpose
The Client, having full confidence in the Agent’s international business expertise and professionalism, appoints the Agent to obtain orders/contracts whatsoever in the aerospace industry and other precision machining products, parts and components, in Europe and North America (USA, Canada), and also any other country not expressly excluded by the Client (except Taiwan), through direct or indirect referrals to the Client, and hence to build up long-term supply contracts with respect to those potential customers for the Client to achieve operational objectives. As such, the Client fully appoints the Agent as Authorized Agent of the Client in the designated markets.
The Agent shall be entitled to engage into any relevant marketing policy/strategy in the designated markets on behalf of the Client.
Article 2 – Promotion
2.1 The Client hereby authorizes the Agent to promote the Client and develop sales under this Agreement starting from the Effective Date of this Agreement for the Products or Services proposed by the Client and agreed upon to be promoted abroad (out of Taiwan).
2.2 The Agent commits to promoting the Client’s Products and Services hereunder within the agreed Area as defined in Article 3 below, during the effective period of this Agreement as defined in Article 5 below, and not to impeding or interfering with the Client’s own initiatives.
2.3 The Client shall provide its customers’ list information to the Agent and the Agent shall no longer approach or deal with existing customers of the Client. However, other branches or departments under the same name of the enterprise group, but not included into that list, shall be authorized to be approached by the Agent.
2.4 The Agent shall be able to develop its own flow of business opportunities independently from the Client, and from the Client’s personnel based in Taiwan or elsewhere. The Agent shall not expect the Client to provide any assistance of any kind from Taiwan for the performance of this Agreement.
Article 3 – Exclusivity
The Client gives geographical exclusivity to the Agent for the promotion, in Europe and also North America, of the Client’s Products and Services. Therefore, the Client shall not appoint any other Agent or partner of any kind for the same agency relationship. The Agent is also authorized to generate business opportunities in other countries, without exclusivity, provided the Client has not expressly excluded them in writing. It is hereby agreed that the Agent shall not do any prospection or generate business opportunities in Taiwan.
In case the Agent has introduced potential customers to the Client, the Client shall respect the following:
- before a contract is signed, the Client shall not have any direct communication or contact with the customer without the agreement of the Agent;
- during the performance of a signed contract: the Client and the Agent shall copy all communication with the customer;
- the Client shall not have any side business development with the customer without the agreement of the Agent.
Article 4 – Remuneration and Expenses
Agency Commissions
4.1 During the term hereof, both parties have agreed to the payment terms as follows:
3% of each order amount is warranted by the Client to the Agent, as included, or expected to be included, into the agreed deal and shall be based on the whole contract amount, at one or several times, if successfully delivering & acceptable by customers. The successful deal shall have a defined, or foreseeable, duration with regard to timing, or stages, or steps, etc.
4.2 The Client shall have a right of refusal to perform, in part or in full, orders and/or contracts obtained by the Agent if without the consent of the Client, in which case the Agent shall not have any right to claim for remuneration for the non-performed part.
Payments
4.3 Once the customer is about to pay the Client for a delivery that has been received, the Agent will send related invoice accordingly. The invoice will be paid to the Agent within 10 working days after the Client receives payment from the customer.
4.4 If the Client does not pay a bill sent by the Agent within 20 days from the date the invoice is sent or the request is made, the Agent reserves the right to immediately stop enforcing this Agreement.
4.5 Should the Client, directly or indirectly, receive NDA (Non-disclosure Agreement) or LOI (Letter of Intent) or RFQ (Request for Quote) or RFQ packages or solicitation packages received or downloaded from web system, from customers referred by the Agent, the Client shall disclose complete messages to the Agent, including but not limited to coordinating contents and related information including drawings and contractual terms. In addition, the Client shall notify the Agent of its intention to quote response, as well as provide overhead data of relative manufacturing after cost analysis. The Agent shall endeavor to assist the Client to make bidding policy in order to win business orders.
4.6 After the Client fulfills each order or contract, or after the delivery of order/contract goods, a copy of the shipping items list and of invoices shall be mailed to the Agent for record and payment credentials for paying remuneration. When the customer completed the payment transaction, the Client shall notify the Agent. At the nearest closing date of accounting period, the remuneration with respect to the order/contract shall be remitted to the Agent or by check payable to the Agent, at the Agent’s discretion.
4.7 The Agent shall not receive any money from the customers without the Client’s prior consent. 4
Article 5 – Agreement Duration
This Agreement will start producing effect as from (the “Effective Date”), and will remain in force for a period of three (3) years, automatically renewable for the same period of time, except for the termination clause set forth in Article 9.
Notwithstanding, when this Agreement or any renewed Agreement has been terminated, such event shall not affect the subsisting covenant between Party A and Party B as specified in Article 4.1 regarding the right for the Agent to agency commissions.
Article 6 – Confidentiality
The aforesaid customers list information of Article 2.3 above provided by the Client should be completely held confidential by the Agent, and not to be disclosed to the Client’s competitors and any of third party/parties.
Any referral of any new customer made by the Agent to the Client shall also be held confidential by the Client.
The Agent may need to invite supporting partners of the Client to participate in business activities, the relevant affiliates should act in good faith and as a prudent administrator to perform business works hereunder, provided that the affiliate agrees to be bound by the same obligations of confidentiality that apply to the Agent. Unless otherwise provided by statute of laws or directed by the Client, the Agent and supporting personnel shall not construe to act on the Client’s behalf.
During the term of this Agreement, the Agent may receive confidential information pursuant to the Client’s business operations and other individual circumstances, in which case the Agent shall hold the information in confidence and shall not disclose to any third party (parties).
Without consent of the other Party, no Party shall disclose any information pursuant to this Agreement and the other Party’s business development matters to any third party (parties). Any unauthorized disclosure would be deemed to be a breach hereof and the disclosing party shall indemnify the other Party against any economic losses and loss of business reputation. 5
Article 7 – Liability and Risks
The parties will keep each other harmless against and from any claim, action, demand, suit, damage, cost and loss resulting from any failure from a Party to comply with this Agreement, any applicable law or infringement of any intellectual property right of any third party. A party shall however be liable for any direct, indirect, consequential, liquidated, or punitive damage, etc. in case that party is in violation of this Agreement without serious and acceptable reason.
The Client has thoroughly read the contents of this Agreement before execution, and understands and agrees to engage in any of the possible risks and benefit losses it may arise that self-assessment shall be done and noted by the Client. The Agent does not guarantee any profits and is not liable for any losses.
Article 8 – Taxation
Each party will do their own affairs of any taxation derived from their respective revenues.
The Client warrants that as long as the Agent does not perform services in Taiwan, but only in the authorized geographical area, in which case any remuneration paid to the Agent is not a Taiwan-source income, the Client will pay to the Agent full amount as invoiced, without applying any withholding tax.
Should the Client consider that any withholding tax shall apply to the remuneration paid to the Agent, the Client hereby agrees to bear the financial cost of such withholding tax, which shall not be borne by the Agent.