Exclusive Sales Contract
An exclusive sales contract has been entered into June 25, 20 between the Korea Exporting Co., C.P.O. Box 1234, Seoul, Korea(hereafter to be referred as Party A) and the American Importing Inc., New York(hereafter to be referred as Party B), agreeing on the following terms and conditions.
1. Party A grants to Party B the right of sole distributorship for the sale of A's Products in the territory of the United States.
2. Party B will work to the best of the ability in order to introduce and establish the largest possible sales in the territory and the sales target should be three million dollars or more a year.
3. Party A will quote to Party B the most reasonable prices at all times. All the prices Party A quotes to Party B shall be in U.S. dollars on the basis of CIF net American ports, and whatever price Party B receives from their customers over and above the net price is for the account of Party B.
4. Party A shall not offer A's products to the above mentioned territory either through their branch or any other organization, and like-wise Party B shall not import the same article from any other Korean exporter of such item.
5. Draft(s) shall be drawn at 90 days after sight (or B/L date) for the full invoice amount under an irrevocable letter of credit which shall be established within 15 days after the conclusion of the contract. Business against D/A draft without L/C should be subject to Party A's previous consent in each case. In case of D/A deal, interest will be Party A's account and delay charge, if any, will be paid by Party B.
6. Party A shall effect marine insurance on all shipments on W.A. for 110% of the invoice amount. War risk or any other additional insurance, if required, shall be covered by Party A for the account of Party B. Insurance Policies shall be made out in U.S. currency, and claims if any payable in New York.
7. Except in cases where firm offers are accepted, no orders shall be binding until acceptance is cabled by Party A. All orders shall be confirmed in writing, and orders thus confirmed shall not be cancelled unless by mutual consent.
8. Party B's claims, if any, shall not be entertained before the relative payments are completely made or the export draft is duly honored, and shall be made within 15 days after arrival of the goods at destination. Certificates by recognized surveyors shall be sent by airmail without delay. All claims which can not be amicably settled between Party A and Party B shall be settled by arbitration in Seoul, in pursuance of the rules of The Korean Commercial Arbitration Board, whose award shall be final and binding upon Party A and Party B.
9. This contract shall be valid until the end of 20 and can be renewed on an yearly basis if such intention is conveyed to the other party at least three months before the expiry of the contract.
10. This contract is made and typed in two copies, given to each party.
Party A Party B
Korea Exporting Co., Ltd. American Importing Inc.