Terms and Conditions of Distributorship

The right to sell the company brand of palm oil (Amacotech akwa palm oil) is granted to the distributor by the company. The latter reserves every right to revoke this right from the distributor, if the below terms and conditions are not met.
1. The distributor would be given an area or region where he or she is the sole distributor of the brand for a period of six months. Within this period, he or she must ensure, at least, a minimum coverage of 70% of the area or region. That is, ensuring 70% penetration of the brand in the given area.
2. The recruitment of sales agents or other marketers of the brand for the location must be a joint decision of both the company and the distributor. Meaning, the distributor must duly inform the company about this activity.
3. The pricing policies of the distributor in his or her area must align with the company's pricing guidelines. That is, the pricing policies of the distributor's location would be jointly determined by both parties.
4. Every exclusive/sole distributor must ensure proper management of sales such that his or her pricing does not compete with or affect retailers' prices in such areas negatively. Failure to adhere to this, may lead to withdrawal of status as a sole/exclusive distributor.
5. To retain this status of a sole distributor, the distributor must meet about 80% of his/her annual sales quotas. He or she must be able to add value to the brand in terms of goodwill, integrity, honesty and transparency. Consequently, every sole/exclusive distributor is a potential partner or stakeholder in the business. This status would be converted to a limited partner, which empowers him or her with some rights of business ownership, given his or her performance after a year of assuming this status.
6. The distributor has a benefit of 2% of his/her annual sales, which can either be in cash or in kind as shall be determined by the management.
7. 1.5 million naira minimum start-up capital.
8. Mode of payment: teller, draft, cheque, others.

If you

agree with the above terms and conditions, which are legally bidding on all parties, kindly indicate below with a yes or no. Thanks.

YES
NO

FOR OFFICE USE

Recommended

YES
NO