Agreement

AGREEMENT.

Kiev «__ «_________199.

______________________, hereinafter called «the Principal » ,.

on the one part, and ______________________________, hereinafter.

called «the Agent », on the other, have herein agreed as follows:

I.

The Principal grants the Agent an exclusive right to sell,.

on the territory _________ hereinafter called «the agreed.

territory ", the following equipmenf and mashinery bought from the.

principal, hereinafter called «the equipment » :______________.

Any sale by the Agent of the equipment on any territory.

other than the agreed territory may take place only with the.

written consent of the Principal.

The Principal will have the right to sell the equipment on.

the agreed territory directly to the third parties, if:

1. The transaction is concluded on the basis o (an offer.

made by the Principal prior to the conclusion of this Agreement;

2. The Agent has refused to buy the equipment offered by the.

Principal;

3. The equipment is part of a barter transaction;

4. The equipment is a component part of equipment supplied.

by the Principal to another customer;

5. This Agreement has terminated under Articles VI and IX;

6. The equipment is supplied to governmental bodies or.

organizations situated on the agreed territory.

Such sales will not constitute an infringement of the terms.

and conditions of this Agreement, and the Agent will have no.

right to commission.

Exept for the cases mentioned above, when the Principal.

sells the equipment on the agreed territory directly to the third.

parties the Agent will have the right to receive commission the.

amount of which will be fixed in each case by special.

arrangements between the Principal and the Agent depending on the.

volume of the sale.

II.

In pursuance of this Agreement the parties will conclude.

contracts between themselves for the delivery of the equipment.

and spare parts.

III.

The equipment bought from the Principal will be sold by the.

Agent to third parties in this own name, but factory marks and.

signs on the equipment must be left intact.

IV.

Prices to be paid by the Agent for the equipment bought from.

the Principal will be fixed in contracts concluded between the.

parties under Article II of this Agreement.

The difference between the price, at which the Agent buys.

the equipmenf from the Principal, and the price, at which he.

sells the equipment, will constitute the Agent «s commission and.

will cover all overhead expenses connected with advertising and.

selling the equipment.

The Agent undertakes to sell the equipment, bought from the.

Principal, at prices not detrimental to the sales of the.

equipment due to the prices being too high.

V.

Within the period of operation of this Agreement and.

contracts concluded between the parties the Agent undertakes;

1. To guard, bona fide, the interests of the Principal,.

constantly increasing the purchases of the equipment.

2. Each quarter, not later than the 15th day of the.

following month, to submit to the Principal reports on his.

activities in the marketing of the equipment sold under this.

Agreement, attaching copies of the bills drawn on his purchasers,.

and, within the same period of time, to send the Principal.

informatiom on market conditions and on the activities of the.

Principal «s competitors, in particular on price, terms and.

conditions, in their sales of similar equipment.

3. Not to represent, either directly or indirectly, on the.

agreed territory, without the Principal «s consent, any firm.

competing with the Principal.

4. To systematically organize, at his own expense, the.

advertising of the equipment in such form and to such extent that.

successful marketing of the equipment on the agreed territory.

should be ensured, using for this purpose the press, radio,.

cinema, catalogues and other means of advertising on the basis of.

printed material provided by the Principal: to return to the.

Principal, after the expiration of this Agreement, advertisement.

samples and materials, should these be in the possession of the.

Agent, or to deal with them according to the Principal «s.

instructions.

5. To provide consultation and technical service for and.

have supervision of proper exploitation of the equipment sold,.

organizing for this purpose, at this own expense, necessary.

workshops and service stations.

6. With the view of ensuring proper exploitation of the.

equipment, to buy (rom the Principal the necessary quantity of.

spare parts, to keep warehouses and shops at his own expense, as.

well as to organize uninterrupted supplies of spare parts to.

purchasers of the equipment.

7. In case the Principal participates in international fairs.

and exhibitions on the agreed territory, to render the Principal.

every assistance in the marketing of the equipment.

8. To inform the Principal of governmental purchases.

announced on the agreed territory, to participate in them, and to.

advise the Principal of their results.

Should need arise, the Principal will, at the Agent «s.

request and under a separate contract, give technical advice to.

purchasers in the installation of the equipment sold by the Agent.

and in its exploitation by means of deputing the Principal «s.

specialists.

VI.

The Principal has the right to cancel this Agreement before.

the expiration of the period of its duration without prejudice to.

his rights and without the Agent «s right to claim any.

compensation, if:

1. The Agent, despite the Principal «s notice, does not.

comply with an important condition of this Agreement, especially.

as to payment;

2. On the expiration of eight months from the day of signing.

this Agreement the value of the equipment sold by Agent will be.

less than _____________.

3. The financial position of the Agent considerably.

deteriorates or procedure in bankruptcy is initiated;

4. The Agent «s acts contradict the Principal «s interest on.

agreed territory.

VII.

The Principal and the Agent will take all measures to settle.

amicably any disputes which may arise from this Agreement or from.

contracts made hereunder.

In case of the parties being unable to arrive at an amicable.

settlement, all disputes without application to legal courts are.

to be submitted for the settlement by _________ in accordance.

with the Rules of Procedure of the said Commission.

The Arbitration Award will be final and binding for both.

parties.

VIII.

1. All negotiations and correspondence between the parties.

that have taken place prior to the signing of this Agreement.

shall be considered null and void as from the day of its signing.

2. Any amendments and/or supplements to this Agreement shall.

be valid only if they are made in writting and signed by duly.

authorized representatives of both parties.

IX.

This Agreement is operative as from the day of its signing.

by both parties and will be valid for ___________________________.

If, one month before the expiration of the above period of.

time, neither party notifies in writing of its desire to.

terminate this Agreement or to alter its terms and conditions,.

the Agreement is automatically extended for _____________________.

months.

Irrespective of the expiration of this Agreement or its.

cancellation the parties are to fulfill their C obligations under.

contracts made prior thereto.

Legal addresses of the parties.

The Principal:

The Agent:

For and on behalf _____________________________.

For and on behalf _____________________________.