Document:

The
shares subscribed for may not be sold, offered for sale, pledged, hypothecated, or otherwise transferred in the absence of (a)
an effective registration statement under the act and any applicable state securities laws, or (b) an opinion of counsel acceptable
to counsel for the issuer that such registration is not required and that the proposed transfer may be made without violation
of the act and any applicable state securities law.

 

THE
ACQUISITION OF THE SECURITIES OFFERED HEREBY INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR
THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT. THE SHARES MAY BE SOLD IN JURISDICTIONS WHERE THEY MAY BE LAWFULLY SOLD. 

 

SUBSCRIPTION
AGREEMENT

 

Life
Clips, Inc.

233
S. Sharon Amity Road, Suite 201

Charlotte,
NC 28211

 

Life
Clips, Inc., a Wyoming corporation (the "Company"), is offering up to Fifteen Million (15,000,000) shares of its
Common Stock, which have been registered in the Company’s S-1 Registration Statement that became effective on _______________
at a price equal to the average of the closing prices of the Company’s common stock for the five trading days prior to purchase,
for total maximum sale proceeds of approximately Seven Million Eight Hundred Dollars ($7,800,000). This Offering shall be on
a best efforts basis and the Company reserves the right to use the funds received immediately upon receipt. There shall be no
minimum purchase amount. The Company desires to sell   shares of the Company’s Common Stock, (the “Shares”),
par value $0.001, to the undersigned for an aggregate purchase price of $________. The undersigned (the "Subscriber")
desires to purchase the Shares for the purchase price, which is set forth on the signature page of this Subscription Agreement
(the "Agreement"). Accordingly, the Company and Subscriber agree as follows:

 

1.
Sale and Purchase. Subject to the terms and conditions set forth in this Agreement, Subscriber hereby tenders the amount
set forth on the signature page of this Agreement for the purchase of the number of Shares set forth on said signature
page.

 

2.
Representations, Warranties, and Agreements of Subscriber. In connection with this subscription, Subscriber hereby makes
the following representations, warranties, and agreements and confirms the following understandings, each of which are made
or confirmed, as the case may be, with respect to the Shares subscribed for herein:

 

(a) Investment
Purpose. Subscriber is acquiring Shares for Subscriber's own account and for investment purposes only and not with a
view to or for sale in connection with any distribution of the shares.

 

(b) Review
and Evaluation of Information Regarding the Company.

 

 (i)
Subscriber is familiar with the Company’s financial condition and proposed operations. Without limiting the foregoing,
the Subscriber acknowledges that the undersigned has reviewed the corporate documents regarding the Company and the terms of
this Offering.

 

 (ii) In
addition to the foregoing, Subscriber acknowledges that Subscriber has conducted, or has been afforded the opportunity to conduct,
an investigation of the Company and has been offered the opportunity to ask representatives of the Company questions about the
Company’s financial condition and proposed business and that Subscriber has obtained the available information as Subscriber
has requested, to the extent Subscriber has deemed necessary, to permit Subscriber to fully evaluate the merits and risks of an
investment in the Company. Representatives of the Company have answered all inquiries that Subscriber has put to them concerning
the Company and its activities, and the offering and issuance of the Shares.

 

    	 

     

    

 

(iii) Subscriber
has reviewed the Subscription Document and SEC Filings for Life Clips, Inc., including the Form S-1 Registration Statement that
became effective on _____________ and Prospectus filed on ________________ on Form 424(b)(3), both of which may be found at www.sec.gov,
or by contacting the Company and requesting a copy, and has been afforded the opportunity to ask any questions, or have addressed
any concerns, that may have arisen from such review. Subscriber acknowledges that he, she, or it is only relying on the information
provided in the Subscription Agreement and SEC Filings, and understands, that he, she, or it shall contact the company’s
President, Kent Rodriguez should he, she, or it be giving information that is contradictory to, or inconsistent with, the information
set forth in this Subscription Agreement. Subscriber further acknowledges that he, she, or it has not relied on any representations
or warranties (written or oral) not contained in this Subscription Agreement.

 

(c) 
Risks. Subscriber recognizes that the purchase of Shares involves a high degree of risk and is suitable only for
persons of adequate financial means who have no need for liquidity in this investment in that (i) Subscriber may not be able
to liquidate the investment in the event of an emergency; (ii) transferability is limited; and (iii) in the event of a
disposition, Subscriber could sustain a complete loss of his or her entire investment. The Subscriber agrees that he or she
acknowledges the risks and has reviewed the section titled “Risk Factors” in the Form S-1 Registration Statement
that became effective on ________________.

 

(d)  Risk of Loss. The Subscriber represents and warrants that the Subscriber: (a) is able to bear the loss of
the Subscriber’s entire investment without any material adverse effect on the Subscriber’s economic stability;
(b) understands that an investment in the Company involves substantial risks; and (c) has such knowledge and experience in
financial and business matters that the Subscriber is capable of evaluating the merits and risks of the investment to be made
by the Subscriber pursuant to this Agreement.

 

(e) Subscriber's
Financial Experience. If Subscriber is not an accredited investor, Subscriber is sufficiently experienced in financial
and business matters to be capable of evaluating the merits and risks of an investment in the Company.

 

(f) Suitability
of Investment. Subscriber has evaluated the merits and risks of Subscriber's proposed investment in the Company, including
those risks particular to Subscriber's situation, and has determined that this investment is suitable for Subscriber. Subscriber
has adequate financial resources for an investment of this character, and at this time Subscriber can bear a complete loss of
Subscriber's investment. Further, Subscriber will continue to have, after making an investment in the Company, adequate means
of providing for Subscriber's current needs, the needs of those dependent on Subscriber, and possible personal contingencies.

 

(g) Absence
of Official Evaluation. Subscriber understands that neither the securities regulatory agencies of any State, nor the United
States Securities and Exchange Commission has made any finding or determination as to the fairness of the terms of an investment
in the Company, or any recommendation for, or endorsement of, the Shares offered hereby.

 

(h) 
Additional Financing. Subscriber further acknowledges that nothing hereunder shall preclude the Company from seeking
and/or procuring additional equity and/or debt financing. Subscriber understands that it may become necessary for the Company
to seek additional financing in the future, which could dilute the Subscriber’s interest in the Company.

 

(i) 
Professional Advice. Subscriber has either secured independent tax advice with respect to an investment in the
Shares, upon which he, she or it is relying, or he, she or it is sufficiently familiar with the income taxation of
corporations and investments that he, she or it deemed such independent advice to be unnecessary. The Subscriber has had the
opportunity to consult with his, her, or its tax, legal, and financial adviser to determine the benefits and risks of
subscribing for the Shares, and is not, in any way, relaying on the Company or its employees or agents, for advice in making
this decision.

 

    	 

     

    

 

(j) Acceptance.
Subscriber acknowledges that the Company shall, in its sole discretion, have the right to accept or reject this subscription,
in whole or in part, for any reason or for no reason. If Subscriber’s subscription is accepted by the Company, Subscriber
shall, and Subscriber hereby elects to, execute any and all further documents necessary in the opinion of the Company to complete
his subscription and become a shareholder of the Company.

 

(k) Authority
to Enter into Agreement. Subscriber has the full right, power, and authority to execute and deliver this Agreement and
perform Subscriber's obligations hereunder.

 

(l) Prohibitions
on Cancellation, Termination, Revocation, Transferability, and Assignment. Subscriber hereby acknowledges and agrees that,
except as may be specifically provided herein or by applicable law, Subscriber is not entitled to cancel, terminate, or revoke
this Agreement, and this Agreement shall survive Subscriber's death or disability or any assignment of Shares. Subscriber further
agrees that Subscriber may not transfer or assign Subscriber's rights under this Agreement, and Subscriber understands that, if
Subscriber's subscription is accepted, the transferability of Shares will be restricted.

 

(m) Obligation.
This Agreement constitutes a valid and legally binding obligation of Subscriber and neither the execution of this Agreement nor
the consummation of the transactions contemplated herein will constitute a violation of or default under, or conflict with, any
judgment, decree, statute or regulation of any governmental authority applicable to Subscriber, or any contract, commitment, agreement,
or restriction of any kind to which Subscriber is a party or by which Subscriber's assets are bound. The execution and delivery
of this Agreement does not, and the consummation of the transactions described herein will not, violate applicable laws, or any
mortgage, lien, agreement, indenture, lease or understanding (whether oral or written) of any kind outstanding relative to Subscriber.

 

(n) Required
Approvals. No approval, authorization, consent, order, or other action of, or filing with, any person, firm or corporation
or any court, administrative agency or other governmental authority is required in connection with the execution and delivery
of this Agreement by Subscriber or the purchase of the Shares.

 

 (o) No
Solicitation. The Subscriber represents and warrants that the Subscriber was not solicited to purchase the Shares by any
means of general solicitation, including but not limited to the following: (a) any advertisement, article, notice or other communication
published in any newspaper, magazine, or similar media, or broadcast over television or radio; or (b) any meeting where attendees
were invited by any general solicitation or general advertising.

 

3. Representations,
Warranties and Agreements of the Company. In connection with this subscription, the Company makes the following representations,
warranties and agreements and confirms the following understandings:

 

(a) Company's
Good Standing. The Company is a corporation organized and validly existing under the laws of the State of Wyoming, and
it has all corporate authority and power to conduct its business and to own its properties.

 

(b) Corporate
Authority. The issuance of the Shares to the Subscriber has been duly authorized by all necessary corporate action on
the part of the Company.

 

(c) Corporate
Records. The corporate records of the Company are complete and accurate and all corporate proceedings and actions reflected
therein have been conducted or taken in compliance with all applicable laws and with the Certificate of Incorporation and Bylaws
of the Company.

 

    	 

     

    

 

(d) Valid
and Binding Obligation. This Agreement and the transactions contemplated herein have been duly and validly authorized
by all requisite corporate action of the Company. The Company has full right, power and capacity to execute, deliver and perform
its obligations under this Agreement. No governmental license, permit or authorization and no registration or filings with any
court, governmental authority or regulatory agency is required in connection with the Company's execution, delivery and/or performance
of this Agreement, other than any filings required by applicable federal and state securities laws. The execution, delivery and
performance of this Agreement, the consummation of the transactions herein contemplated and the compliance with the terms of this
Agreement by the Company will not violate or conflict with any provision of the Articles of Incorporation, as amended or By-laws
of the Company, or any agreement, instrument, law or regulation to which the Company is a party or by which the Company may be
bound. This Agreement, upon execution and delivery by the Company, will represent the valid and binding obligation of the Company
enforceable in accordance with its terms.

 

(e) Taxes.
The Company has paid all taxes which are due and payable within the time required by applicable law, and has paid all assessments
and reassessments it has received with respect to taxes. There are no claims, actions, suits, audits, proceedings, investigations
or other action pending or threatened in writing against the Company with respect to taxes. The Company has filed or caused to
be filed with the appropriate governmental entities, within the times and in the manner prescribed by applicable law, all federal
and local foreign tax returns which are required to be filed by or with respect to it.

 

 (f)
 Resale of Shares. Subscriber acknowledges that the Shares may only be resold pursuant to a Registration Statement
filed under the Act, to which the Shares are subject, or pursuant to an exemption from the Act, and under the terms set forth
herein. Subscribers are advised to consult with their own legal counsel or advisors to determine the resale restrictions that
may be applicable to them.

 

(g) Voting
Trusts and Shareholder Agreements. There are no voting trusts or shareholder agreements between any of the principals,
employees or directors of the Company or among any shareholders representing, in the aggregate, voting control of the Company.

 

(h) Other
Material Agreements. There are no internal or other agreements with third parties that are material in nature to the business
of the Company which have not been disclosed herein.

 

4. Survival
of Representations, Warranties, Agreements and Acknowledgments. The representations, warranties, agreements, and acknowledgments
of the Company and Subscriber shall survive the offering and purchase of Shares.

 

5. Indemnification
of the Company. Subscriber agrees to indemnify and hold harmless the Company against and in respect of any and all loss, liability,
claim, damage, deficiency, and all actions, suits, proceedings, demands, assessments, judgments, costs and expenses whatsoever
(including, but not limited to, attorneys' fees reasonably incurred in investigating, preparing, or defending against any litigation
commenced or threatened or any claim whatsoever through all appeals) arising out of or based upon any false representation or
warranty or breach or failure by Subscriber to comply with any covenant or agreement made by Subscriber herein or in any other
document furnished by Subscriber in connection with this subscription.

 

6. Miscellaneous.

 

(a) Entire
Agreement. This Agreement constitutes all of the understandings and agreements existing between the parties hereto concerning
the specific subject matter hereof and the rights and obligations created hereunder. Moreover, this Agreement supersedes and novates
all prior agreements and communications, whether oral or written, and the parties have relied on no other material.

 

(b) Amendment
and Modification. Subject to applicable law, this Agreement may be amended, modified or supplemented only by a written
agreement signed by the Company and Subscriber.

 

    	 

     

    

 

(c) Notices.
Any notice, demand, or other communication that any party hereto may be required, or may elect, to give to anyone interested hereunder
shall be deemed given on the date initially received if delivered by facsimile transmission followed by registered or certified
mail confirmation; on the date delivered by an overnight courier service; on the third business day after it is mailed if mailed
by registered or certified mail, postage prepaid.

 

(d) Agreement
Binding. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties
hereto.

 

(e) Governing
Law, Arbitration. This Agreement and the rights and obligations of the parties shall be interpreted under and governed
exclusively by the laws of the State of North Carolina, without regard to its conflicts of laws principles. Further, in the event
that any dispute were to arise in connection with this Agreement or with the undersigned’s investment in the Company, the
undersigned agrees, prior to seeking any other relief at law or equity, to submit the matter to binding arbitration in accordance
with the rules of the American Arbitration Association at a place to be designated by the Company.

 

(f)
 Waiver of Compliance; Consents.  Any failure of any party to comply with any obligation, covenant, agreement
or condition herein may be waived by the party entitled to the performance of such obligation, covenant or agreement or who has
the benefit of such condition, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement
or condition will not operate as a waiver of, or estoppel with respect to, any subsequent other failure.

 

Whenever
this Agreement requires or permits consent by or on behalf of any party hereto, such consent will be given in a manner consistent
with the requirements for a waiver of compliance as set forth above.

 

(g) Severability.
The invalidity, illegality, or unenforceability of any provision or provisions of this Agreement will not affect any other provision
of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality, or unenforceability of a portion
of any provision of this Agreement affect the balance of such provision. In the event that any one or more of the provisions contained
in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
this Agreement shall be reformed, construed, and enforced as if such invalid, illegal, or unenforceable provision had never been
contained herein.

 

(h) Attorney
Fees. In the event suit or action is brought by any party under this Agreement to enforce any of its terms, and in any
appeal therefrom, it is agreed that the prevailing party shall be entitled to reasonable attorney fees to be fixed by the trial
court and/or appellate court.

 

(i) Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which together
will constitute one and the same instrument.

 

(j) Tax
Liability. Purchasing Shares under this Subscription Agreement could result in tax liability. All Subscribers are responsible
for any tax liability incurred pursuant to this Agreement, and each Subscriber should discuss any tax liability issues with his
or her own attorney or tax specialist.

 

(k) Further
Assurances. The Parties hereto will execute and deliver such further instruments and do such further acts and things as
may be reasonably required to carry out the intent and purposes of this Agreement.

 

The
undersigned Subscriber recognizes that the sale of the Shares to the undersigned will be based upon the representations and warranties
set forth hereinabove, information provided to the Company and the statements made herein, and the undersigned hereby agrees to
indemnify the Company its attorneys, agents, representatives and each of its managers and to hold them harmless from and against
any and all loss, damage, liability or expense, including costs and 

 

    	 

     

    

 

reasonable
attorney’s fees, to which they may be put or which they may incur by reason of, or in connection with, any misrepresentation
made in this Subscription Agreement, any breach by the undersigned of my warranties and/or failure by me to fulfill any of my
covenants or agreements set forth herein or arising out of the sale or distribution of any Shares by me in violation of the Securities
Act of 1933, as amended, or any other applicable securities or “Blue Sky” laws.

 

The
undersigned Subscriber (1) attests he, she or it is a bona fide resident of, or is domiciled in, the state listed as subscriber’s
address below; (2) certifies that the information contained in this Subscription Agreement is complete, true and correct; (3)
affirms that the subscriber’s income is derived in no part from illegal or criminal activities; and (4) states that the
investment will not be used for any type of money laundering or other such activities in violation of any state or Federal regulation.

 

[Signature
Page To Follow]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as of the _________ day of _____________, 2016.
By executing this Subscription Agreement, the Subscriber certifies that the Subscriber and any beneficial subscriber for whom
the Subscriber is acting is a resident of the jurisdiction shown in the “Address” section below.

 

Total
Number of Shares :________________________

 

Total
Purchase Price:     $_________________________

 

	 	 	 
	(Name of Subscriber)	 	(Signature of Subscriber)
	 	 	 
	 	 	 
	(Name of Subscriber)	 	(Signature of Subscriber)
	 	 	 
	 	 	 
	(Address)	 	(Signature of Authorized Representative)
	 	 	 
	 	 	 
	(Address)	 	(Print Name and Title of
	  	 	Authorized Representative)
	 	 	 
	 	 	 
	(Telephone Number)	 	 
	 	 	 
	 	 	 
	(E-mail Address)	 	 
	 	 	 
	 	 	 
	
        (Social Security Number/

        Federal Employer Identification Number)
	 	 

 

 

The
Subscriber hereby tenders to Life Clips, Inc., the amount above indicating the number of Shares subscribed for. Checks
should be made payable to “Life Clips, Inc.”  Wire transfers are also acceptable and upon request, the Company
will provide wiring instructions.

 

    	 

     

    

 

ACCEPTANCE
OF SUBSCRIPTION

 

APPROVED
AND ACCEPTED in accordance with the terms of this Subscription Agreement on this _____ day of ____________,
2015.

 

	 	LIFE
    CLIPS, INC.
	 	A
    Wyoming Corporation
	 	 
	 	By:	 
	 	 	Robert
    Gruder, Chief Executive OfficerMOBEEGO
EXCLUSIVE DISTRIBUTION AGREEMENT

 

This
Distribution Agreement (“Agreement”) is entered into as of the later of the two signature dates set forth below
(“Effective Date”), by and between Batterfly Energy, Ltd., a company organized under the laws of the
State of Israel, with its principal place of business at Meshek 86, Shetulim 79280 Israel (“Company”); and
Instant Power , a company organized under the laws of France with its principal place of business at 12 rue de l’lsly
75008 Paris France (“Distributor”).

 

WHEREAS,
Company is engaged in the development and manufacturing of its proprietary Products (as defined hereunder); and

 

WHEREAS,
Distributor wishes to acquire an exclusive, non-transferable right to promote, market and resell the Products in the Territory
(as defined hereunder); and

 

WHEREAS,
Distributor declares it has the knowledge, experience, ability and financial capability to perform the obligations herein;
and

 

WHEREAS,
Company has agreed, on the basis of Distributor’s representations herein, to grant the Distributor certain reselling
rights, as further described hereunder;

 

NOW,
THEREFORE, in consideration of the foregoing premises and agreements hereinafter contained, the parties mutually agree as
follows:

 

1.
DEFINITIONS. For purposes of this Agreement (including any and all Appendices and amendments made to or incorporated
herein now or in the future), the following capitalized terms shall have the following meanings:

 

	 	1.1.	“Annual” or “Annually” means each 12-month period beginning on the Effective Date. For clarity, it does not refer to the calendar year of January 1 to December 31.
	 	 	 
	 	1.2.	“Balance” shall have the meaning set forth in Section 4.3.
	 	 	 
	 	1.3.	“Business Day” means Monday through Friday, excluding holidays in France, Israel and China.
	 	 	 
	 	1.4.	“Confidential Information” means all information and/or data, in any form whatsoever, tangible or intangible, including information in oral, visual or computer database form, not generally made available by the disclosing party to the general public. By way of illustration and not limitation, such Confidential Information shall include: (1) any and all trade secrets concerning the business or affairs of Company, its product architecture, designs or specifications, data, know-how, compositions, processes, formulas, methods, samples, inventions and ideas, past, current and planned development or experimental work, current and planned distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including object code and source code), any unannounced product(s) and service(s), and any other information, however documented; (2) any and all information concerning the business and affairs of the disclosing party (which includes historical financial statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, personnel training and techniques and materials), however documented; and (3) any and all notes, analyses, compilations, studies, summaries and other material prepared by or for the receiving party containing or based, in whole or in part, on any information included in the foregoing.
	 	 	 
	 	 	Confidential Information excludes information which: (i) at the time of disclosure is or thereafter becomes generally available to the public other than as a result of disclosure by or through the receiving party; (ii) was available to the receiving party on a non-confidential basis prior to disclosure by the disclosing party as evidenced by the receiving party’s documentation; or (iii) becomes available to the receiving party on a non-confidential basis from a third party which is not under any confidentiality obligation.
	 	 	 
	 	1.5. 	“Customer” means a third party who purchases Products from Distributor within the Territory for their own internal use and not be resale, redistribution or further transfer to others, with or without consideration.

 

    	1

    	 

    

 

	 	1.6.	“Delivery Point” shall have the meaning set forth in Section 5.3.
	 	 	 
	 	1.7.	“Documentation” means the technical documentation of Products covered under this Agreement.
	 	 	 
	 	1.8.	“First Renewal Term” shall have the meaning set forth in Section 12.1.
	 	 	 
	 	1.9	“Intellectual Property Rights” or “IP
    Rights” means all designs, patents, patentable inventions, patent applications and patent disclosures, together
    with all reissuances, continuations, continuations-in-part, revisions, extensions and reexaminations thereof, trademarks and
    service marks (registered and unregistered, and applications therefor), domain names, copyrights, know how or trade secrets
    (and the right to limit the use or disclosure thereof), and all other proprietary rights, industrial rights and any other
    similar rights, in each case on a worldwide basis, and all copies and tangible embodiments thereof, or any part thereof,
    in whatever form or medium.
	 	 	 
	 	l.l0.	“Products”
    means Company’s disposable chargers and batteries for mobile phones and all related accessories and Documentation, as
    listed in Appendix A. as such may be amended at a later date during the term of this Agreement.
	 	 	 
	 	1.11.	“Quarter” or “Quarterly” means each 3-month period beginning on the Effective Date. For clarity, it does not refer to the calendar quarters of January 1 to March 31, etc.
	 	 	 
	 	1.12.	“Second Renewal Term” shall have the meaning set forth in Section 12.1.
	 	 	 
	 	1.13.	“Territory” means the countries or
jurisdictions (including without limitation and subject to any exclusions thereof) as specified in Appendix B.
	 	 	 
	 	1.14.	“Updated Price List” shall have the meaning set
forth in Section 4.1.

 

2.
APPOINTMENT

 

	 	2.1. 	Exclusive Rights. Subject to the terms and conditions set forth herein, Company hereby grants Distributor an exclusive, non-transferable, non-sublicensable, limited right during the term of this Agreement to market, sell and resell the Products in the Territory solely for use by Customers, and use Company Trademarks in the Territory in connection with marketing, selling and distributing the Products; all in accordance with the terms set forth herein (“Exclusive Rights”). It is hereby clarified and agreed that Company may be entitled to exclude from the Exclusive Rights any jurisdiction and/or entities, as set forth in Appendix B.
	 	 	 
	 	2.2.	Sales Outside Territory. Distributor shall not actively solicit sales of or promote the Products outside the Territory without the prior written consent of Company. Should Distributor be approached by any third party from outside the Territory for the purchase of Products, Distributor shall forthwith notify Company and shall either refer such party to Company or take an order from such party, all as shall be directed by Company in writing and at its sole discretion.
	 	 	 
	 	2.3. 	Responsibility for Employees and Compensation. Each party shall be responsible for the payment of all compensation due to its employees and any related payments, including all local income taxes, social security, unemployment compensation, workers compensation and insurance coverage. Each party may hire its own employees to assist it in the performance of its duties hereunder, but such employees shall be solely the responsibility of the respective party.

 

3.
SAI.ES AND MARKETING PLAN

 

	 	3.1. 	General. Distributor shall create a marketing plan in order to distribute and procure sales for the Products in order to at least meet the Minimum Annual Sales and Minimum Quarterly Sales (both as defined below in Appendix C), to actively promote and create demand for the Products, maintain an adequate sales organization in the Territory, and to assure adequate advisory, installation, maintenance and support services to be provided only by such team trained by the Distributor (“Marketing Plan”). The agreed-upon Marketing Plan, and each Quarterly update (as described in Section 3.3) is hereby, attached in Appendix D. For the avoidance of doubt Marketing Plan and its Quarterly updates (as described in Section 3.3 below) must be approved in advance by Company.

 

    	2

    	 

    

 

	 	3.2.	Cost of Marketing & Distribution. Unless otherwise agreed by the parties, all costs relating to Marketing Plan and distribution of the Products and Documentation shall be borne solely by Distributor.
	 	 	 
	 	3.3.	Quarterly Reports. Distributor shall submit to Company Quarterly sales reports detailing, among other things: (i) orders won or lost; (ii) a list of all Products sold and delivered to Customers during the preceding reporting period and the payment received and/or receivable therefor; and (iii) a list of all Products remaining in Distributor’s inventory. In addition, the Distributor shall update the Marketing Plan each Quarter to include its forecast for sales and other activities for the following 12 months.
	 	 	 
	 	3.4.	Packaging. Labeling & Re-Labeling Prohibition. Distributor shall distribute Products with all original packaging, labeling, warranties, disclaimers and Documentation intact, as provided to it by Company and in accordance with this Agreement. Distributor shall not re-label any Product.
	 	 	 
	 	3.5.	General Marketing Practices. Distributor shall at all times act in furtherance of the best interest of Company and at no time do, cause or permit to be done, publish or say, any information, act, or thing from whatever source, which may be detrimental to the best interest and/or business reputation of Company. Distributor acknowledges and represents that it may not make any commitment, warranty, or binding obligation on behalf of Company and that in performing its activities under this Agreement it shall not make any false or misleading representations with respect to the Products and/or Company.
	 	 	 
	 	3.6.	Compliance with Law. Distributor shall be fully responsible to obtain and provide for itself, at its own cost, with any and all registrations, licenses, permits, certificates and all other documentation and information required for the exportation, importation, storage, marketing and distribution of the Products in the Territory and their sales therein.
	 	 	 
	 	3.7.	Export Compliance. Without derogating from the above, Distributor shall be subject to the laws and regulations of the Territory and any other applicable laws and regulations, as well as other applicable export regulations as shall, from time to time, govern the license and delivery of technology abroad, and any successor legislation. Distributor shall certify that it shall not, directly or indirectly, export, re-export or transship the Products or any parts or copies thereof in such manner as to violate such laws and regulations in effect from time to time. Distributor shall indemnify and hold harmless Company from and against any and all losses, claims and expenses actually incurred by Company as a result of the breach of Distributor’s obligations under this Section 3.7.

 

4.
PRICES. MINIMUM ANNUAL SALES. MINIMUM QUARTERLY SALES AND TERMS OF PAYMENT

 

	 	4.1.	Price List. Minimum Annual Sales and Minimum Quarterly Sales. The current Distributor prices to be paid to Company for Products, minimum Annual sales and minimum Quarterly sales for the Term (as defined below) are specified in Appendix C attached hereto (“Price List, Minimum Annual Sales and Minimum Quarterly Sales”). The Distributor must order from Company at least the Minimum Annual Sales in the Initial Term and each Renewal Term, and the Minimum Quarterly Sales in each Quarter in the Initial Term and each Renewal Term. Company may, once during the Initial Term and once during the First Renewal Term, upon written notice to Distributor, change the prices to be paid to Company for the Products (“Updated Price List”). For the avoidance of doubt, it is hereby clarified that if Company sends an Updated Price List during the Initial Term, it shall apply to Products ordered during the First Renewal Term, and if Company sends an Updated Price List during the First Renewal Term, it shall apply to Products ordered during the Second Renewal Term.
	 	 	 
	 	4.2.	Pricing & Fee Collection from Customers. Distributor shall be entitled to establish the prices and payment terms and conditions at which it resells the Products to its Customers; provided however that Material Deviations from the suggested retail prices for Customers (“Suggested Retail Prices”) set forth in the Price List in Appendix C will be subject to Company’s prior written consent. For the purpose of this Section 4.2, “Material Deviations” shall mean a variation up or down in the Suggested Retail Prices of greater than ten (10) percent. The parties agree that the Suggested Retail Prices will be adjusted for the First Renewal Term and Second Renewal Term by the same percentage, if any, that the Updated Price List changes during the First Renewal Term and Second Renewal Term

 

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	 	4.3.	Payment Terms. Subject to Section 4.4 (Letter of Credit), Distributor will submit written purchase orders to Company for the Products, and Company will issue an invoice to Distributor immediately upon approval of each order. Company will use commercially reasonable efforts to accept orders for up to 200% of the Minimum Quarterly Sales in any Quarter. Distributor will pay in advance fifty percent (50%) (“Advance Payment”) of each accepted order (provided, however, Company may, in its sole discretion and in exceptional circumstances, require a higher percentage to be paid in advance). The remaining amount of fifty percent (50%) of each order (the “Balance”) will be paid immediately by Distributor to Company upon delivery of the Products to Distributor at the Delivery Point (on an F.O.B basis). All payments will be made in U.S. Dollars. The Advance Payment shall be paid within two (2) Business Days of receipt of each invoice and by wire transfer (SWIFT/IBAN) to Company’s designated account. Distributor shall not be permitted to offset any credits or amounts owed to it against any amounts owed to Company, without prior written authorization by Company.
	 	 	 
	 	4.4.	Letter of Credit. Prior to Distributor’s submission of any purchase order, Company may require Distributor to cause an irrevocable, nonrefundable (except in the event of defective, damaged or leaking Products, as specified in Section 5.5 below) standby letter of credit in an amount (up to the Balance of the applicable purchase order(s)) to be issued by a bank acceptable to and approved in writing by Company. Such letter of credit will be payable on sight and will permit Company to draw funds if Distributor fails to pay the Balance, upon delivery of the Products to Distributor at the Delivery Point as set forth in Section 4.3 above. Distributor shall at all times cause the amount of such letter of credit to be maintained at a level no less than the aggregate Balance. In the event that the value of orders placed by Distributor exceeds the then-current amount of the letter of credit, Company may require Distributor to increase the amount of the letter of credit to cover the amount of such excess prior to Company’s fulfillment of any such orders. Distributor will pay all costs of obtaining and maintaining the letter of credit. The parties will work together to establish the letter of credit on further mutually acceptable terms and conditions prior to fulfillment of the applicable order(s). This provision shall survive expiration or termination of this Agreement until such time as Distributor has paid to Company all amounts due to Company with respect to the applicable purchase order(s).
	 	 	 
	 	4.5.	Minimum Quantity Per Order. The Distributor hereby acknowledges and agrees that the minimum order for the Products is ten thousand (10,000) units (“Minimum Quantity Per Order”). Company may, in its sole discretion, accept an order which does not meet the Minimum Quantity Per Order requirement and Distributor hereby acknowledges and agrees that acceptance of said order may include additional costs.
	 	 	 
	 	4.6.	Minimum Sales. The Distributor hereby agrees to purchase a minimum amount of Products from Company so as to meet or exceed the minimum purchase amount of Products required for each Quarter and for each Annual period. If Distributor has purchased Products in a Quarter in excess of the Minimum Quarterly Sales, then Distributor may apply such excess to meet its obligations in the immediately subsequent Quarter (but for clarity, not for any future Quarter.)
	 	 	 
	 	4.7.	Failure to Pay. If payment of any amount as set forth in this Section 4 becomes overdue. Distributor may be asked to pay interest at a rate of 1.5% per month (18% per annum) of such overdue amount prorated to the number of days of delay commencing on the day following the due date until the date of actual payment. Company reserves the right to withhold shipments to Distributor, and/or impose additional credit terms, in the event that any payments to Company are past due. Distributor shall pay all of Company’s costs and expenses (including reasonable attorney’s fees) incurred in connection with the enforcement of The Companies’ rights under this Section 4. In such case the shipment withholding will not be deemed as delayed shipment.
	 	 	 
	 	4.8.	Failure To Meet Minimum Amount. The failure to meet Minimum Quarterly Sales or Minimum Annual Sales shall constitute a material breach of this Agreement.
	 	 	 
	 	4.9.	Taxes. Product prices shall exclude any taxes, import duties, sales tax or similar taxes or duties including, without limitation, withholding, customs, excise, sales, use, value-added and property taxes levied by any country upon Company or the Products, as the result of any manufacturing, sale, delivery or use of any Product sold hereunder. Distributor shall be responsible for the payment of all such taxes or duties which may be so levied and to the extent that Distributor is required to withhold amounts from fees due to Company, Distributor shall gross up any amounts due to Company so that the net amount paid to Company is the amount set forth in the Price List.

 

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	 	4.10.	Expenses.
Except as expressly provided in this Agreement, each party shall bear all its own expenses incurred in rendering performance of
this Agreement.

 

5.
ORDER PROCEDURE AND DELIVERY

 

	 	5.1.	Purchase Orders. Distributor shall initiate orders for Products by sending a purchase order to Company by email or fax, stating the number of Products that Distributor desires to receive. Each purchase order shall include the following: (i) reference to this Agreement; (ii) number of Products ordered; (iii) requested delivery date (on an F.O.B basis) based on Company’s applicable lead times; (iv) Product unit prices and total amount of purchase order price; and (v) all information necessary for shipment. The parties agree that the terms and conditions contained in this Agreement shall prevail over any terms and conditions of any such purchase order, acknowledgment form or other instrument, except that specific commercial terms (prices, delivery terms, etc.) set forth in a purchase order shall, if they are accepted by Company, prevail over any conflicting commercial terms in this Agreement. Distributor’s purchase orders shall constitute binding commitments to accept the number and type of Products stated therein, in accordance with the terms and conditions of this Agreement. Any requested modifications to an accepted purchase order shall be submitted by Distributor to Company in writing and Company shall either accept or reject such requested modifications at Company’s sole discretion.
	 	 	 
	 	5.2.	Purchase Order Acknowledgement & Acceptance. Company shall provide Distributor with an initial acknowledgement of the receipt of a purchase order soon after receipt; formal acceptance or rejection of the terms of a purchase order shall be provided by Company thereafter. A purchase order shall be deemed to be accepted only upon written acceptance thereof by Company.
	 	 	 
	 	5.3. 	Lead Times and Delivery; Title to Products. Unless explicitly set forth otherwise in a written purchase order, Product lead times shall be in accordance with Company’s lead time policy attached hereto as Appendix E. Products shall be delivered F.O.B (Incoterms 2010), at Company’s factory or Company’s designated logistics center, as set forth in the applicable purchase order (“Delivery Point”). Risk of loss with respect to the Products shall pass to Distributor at the Delivery Point, and title to the Products shall pass upon full payment thereof to Company. Delivery dates shall be agreed upon by the parties on a case-by-case basis per purchase order. Company shall devote its reasonable efforts to deliver the Products ordered in accordance with the delivery dates agreed upon. If delivery by Company is not anticipated within the time frame set forth in the applicable purchase order, Company shall notify Distributor of such delay. Company may withhold shipment of Products due to an unpaid balance in Distributor’s account, or dependent on a requirement that Distributor pay prior to Delivery, if it determines that there is a reasonable risk of non-payment.
	 	 	 
	 	5.4. 	Cancellation Policies. Company’s cancellation policy is set forth in Appendix F attached hereto. Orders may be partially or entirely cancelled prior to shipment only in accordance with Company’s cancellation policies.
	 	 	 
	 	5.5. 	Inspection by Distributor. Distributor agrees to receive, inspect and accept shipments made pursuant to each purchase order. Distributor shall inspect the Products upon delivery at the Delivery Point and notify Company of any discrepancies in the list of materials shipped, or of any defective, damaged or leaking Products which would be evident from physical inspection. Products delivered or offered for delivery in a damaged condition shall be rejected and returned to Company with such documentation as may reasonably be required by Company. Distributor’s failure to notify Company, upon delivery at the Delivery Point of any visible deficiencies shall be deemed as an acceptance by Distributor of the Product.

 

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	 	5.6. 	No Contingencies. Distributor’s payment obligations hereunder are not contingent in any way ’ upon receipt of payment by Distributor from Customers or any third party, and Distributor shall be solely responsible for any financial loss suffered as a result of any failure by Distributor to receive payment or reimbursement for Products sold to Customers.
	 	 	 
	 	5.7. 	Product Discontinuance and Changes. Company shall have the right, in its sole discretion, to modify, or improve any or all of the Products, and shall have the right to discontinue specific Products. Company shall use commercially reasonable efforts to provide at least ninety (90] days prior written notice to Distributor prior to discontinuing a Product.

 

6.USE
OF NAME AND TRADE MARKS

 

	 	6.1.	Company Trademarks. Subject to the terms and conditions of this Agreement, Company hereby grants to Distributor a limited, royalty-free, exclusive, non-transferable, right and license within the Territory to use and display the trademarks, trade names, service marks and logos owned or licensed by Company (collectively, the “Company Trademarks”), solely for purposes of marketing and promoting the Products to Customers in the Territory and solely in connection with marketing materials approved by Company. Distributor shall comply with Company’s trademark usage practice or any trademark usage guidelines or instructions that Company may provide Distributor from time to time and Distributor shall afford Company reasonable opportunities to inspect and monitor the activities of Distributor in order to ensure that Distributor’s use of Company Trademarks meets such guidelines. Distributor hereby acknowledges the existence and validity of Company Trademarks, and agrees that all goodwill associated with Distributor’s use of Company Trademarks shall inure solely to the benefit of Company. Distributor shall not remove, alter or obscure the TM, ®, (SM), CE or any other markings from the Products, Documentation or any marketing literature. Distributor may identify itself as an exclusive Distributor of Company, but shall not use Company Trademarks in its corporate name or in any way state, represent or otherwise imply that its relationship to Company is anything other than an independent authorized and exclusive Distributor of Company.
	 	 	 
	 	6.2.	No Transfer of Title. Company shall retain sole ownership of Company Trademarks and all goodwill associated with Distributor’s use of such Company Trademarks and the Products.

 

7.INTELLECTUAL
PROPERTY RIGHTS

 

	 	7.1. 	Ownership Rights. All Intellectual Property Rights evidenced by or embodied in or related to the Products, Company’s Confidential Information, the Documentation and Company Trademarks shall be owned solely by Company. Distributor acknowledges that except as expressly provided hereunder in connection with the distribution of the Products, Company does not license any of its Intellectual Property Rights to Distributor hereunder, and that Distributor has not, does not, and shall not under any circumstances acquire any rights with respect to the above. To the extent that Distributor or its employees, contractors or subcontractors participate in enhancements, derivatives, new versions, or improvements to the Products or Documentation (“Modifications”), Distributor, on behalf of itself and its employees, contractors and subcontractors, shall and hereby does assign to Company all right, title and interest, including all Intellectual Property Rights, in and to the Modifications.
	 	 	 
	 	7.2. 	Patent Notice. If required, and in order to protect Company’s IP Rights, Distributor agrees, where applicable, that a valid patent notice for the Products will appear on any: (i) media for the Products and any Customer packaging materials associated therein; and (ii) Documentation and promotional material for the Products.
	 	 	 
	 	7.3. 	Distributor’s Obligations. Distributor shall, (i) refrain from copying, reverse engineering, disassembling, de-compiling, translating or modifying the Products or any part thereof or granting any other person the right to do so, (ii) not represent that it possesses any proprietary interest in the Products; (iii) not directly or indirectly, take any action to contest Company’s IP Rights or infringe them in any way; (iv) not register, nor have registered or attempt to register, Company Trademarks (or which are similar to Company Trademarks); (v) not register or attempt to register any domain name using any of Company Trademarks without Company’s prior written consent; and (vi) save for the specific purpose contained in this Agreement, it shall not use Company Trademarks in any manner whatsoever.

 

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	 	7.4.	Notification. Distributor shall promptly notify Company of: (i) any claims, allegations or notification that its marketing, licensing, support or service of the Products may or will infringe the Intellectual Property Rights of any other person; and (ii) any determination, discovery or notification that any person is or may be infringing the Intellectual Property Rights of Company. Distributor shall not take any legal action relating to the protection or defense of any Intellectual Property Rights of Company without the prior written approval of Company. Distributor shall assist in the protection and defense of such Intellectual Property Rights.
	 	 	 
	 	8.	CONFIDENTIAL INFORMATION. During the term of this Agreement and thereafter, the receiving party shall not use Confidential Information received from the disclosing party, other than in accordance with this Agreement and in fulfillment of the purpose of this Agreement The receiving party shall maintain Confidential Information in the strictest confidence unless or until it shall have been made public. The receiving party shall not disclose Confidential Information to any third party and shall use all reasonable precautions to ensure that all such Confidential Information is properly protected and kept from unauthorized persons or disclosure. The receiving party may, however, disclose Confidential Information to its own personnel on a “need to know” basis, and to the extent necessary for the purpose of this Agreement, provided that it shall be responsible for compliance of its personnel with the provisions of this section and shall remain liable for any acts and omissions by its personnel in connection with the protection and use of the Confidential Information.

 

 9. LIMITED WARRANTY & DISCLAIMER

 

	 	9.1. 	Distributor Representations. Distributor represents and warrants that: (i) it has full right, power and authority necessary to enter into and perform this Agreement; (ii) this Agreement has been duly executed and delivered and is the valid and binding obligation of Distributor, enforceable in accordance with its terms; and (iii) the performance of its obligations hereunder will not violate any applicable laws or regulations, or cause a breach of any agreements with or infringe the rights of any third parties.
	 	 	 
	 	9.2. 	Limited Warranty. EXCEPT FOR THE LIMITED WARRANTY PROVIDED HEREIN AND TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, COMPANY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES OR CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE PRODUCTS, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OR CONDITIONS OF SATISFACTORY QUALITY, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND THOSE ARISING OUT OF STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF DEALING OR USAGE OF TRADE. Without derogating from the above. Company will replace defective, damaged or leaking Products, provided however that: (a) any such defective, damaged or leaking Products must be provided to Company in its original packaging as proof of claim; (b) said defect, damage or leakage are not caused by noncompliance with the Instructions for Use” of the Products, specified in Appendix G attached hereto; (c) Products were sold to Customers prior to the expiration date of the Products, as evidenced Distributor’s written records; and (d) Distributor will receive an RMA (Returned Merchandise Authorization) from Company prior to returning it; and (e) Distributor will bear all costs associated with, or derived from, such replacement.

 

10.
LIMITATION OF LIABILITY

 

	 	10.1. 	Exclusion of Indirect Damages. IN NO EVENT SHALL COMPANY OR ITS AFFILIATES BE LIABLE OR RESPONSIBLE TO DISTRIBUTOR OR ANY THIRD PARTY FOR ANY TYPE OF INCIDENTAL, PUNITIVE, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO LOST REVENUE OR LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.
	 	 	 
	 	10.2. 	Limitation Of Liability: EXCEPT IN THE EVENT OF DEATH OR PERSONAL INJURY, COMPANY’S ENTIRE LIABILITY TO DISTRIBUTOR OR ANY THIRD PARTY ARISING FROM OR RELATED TO THIS AGREEMENT AND/OR THE PRODUCTS SHALL BE LIMITED TO THE AMOUNTS ACTUALLY. RECEIVED BY COMPANY FROM DISTRIBUTOR PURSUANT TO THE PURCHASE ORDER THAT GAVE RISE TO THE CLAIM, AND IF NO SPECIFIC PURCHASE ORDER IS APPLICABLE THEN COMPANY’S ENTIRE LIABILITY SHALL NOT EXCEED THE AMOUNTS ACTUALLY RECEIVED BY COMPANY FROM DISTRIBUTOR DURING THE THREE (3) MONTH PERIOD PRIOR TO THE EVENT GIVING RISE TO THE CLAIM.

 

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11.
INDEMNIFICATION

 

	 	11.1. 	Indemnification by Distributor. Distributor shall indemnify and defend Company and its officers, directors and employees, from and against any losses, costs, damages, fees or expenses (including reasonable attorneys fees) arising out of any third party claim to the extent relating: (i) any breach by the Distributor of any of its obligations, representations and warranties under this Agreement; (ii) the negligence, recklessness, or willful misconduct of the Distributor or its officers, employees or agents; (iii) any act or omission of the Distributor in relation to the storage or distribution of the Products.
	 	 	 
	 	11.2. 	Indemnification Procedures. As a condition to the defense and indemnity set forth above, the indemnified party shall: (i) give the indemnifying party a prompt written notice of any such claim made against it; provided, however, that the failure to give such notification shall not affect the indemnification provided hereunder except to the extent that the indemnifying party shall have been actually prejudiced as a result of such failure; (ii) grant the indemnifying party sole control of the defense of any such claim, suit or proceeding, including appeals, negotiations and any settlement or compromise thereof; provided that the indemnifying party shall not acquiesce to any judgment or enter into any settlement, either of which imposes any obligation or liability on an indemnified party without its prior written consent; and (iii) at the indemnifying party’s request and expense, provide such information and assistance in the defense of such claims, as reasonably requested by the indemnifying party.

 

12.
TERM AND TERMINATION

 

	 	12.1. 	Term. This Agreement shall continue in force for one (1) year as of the Effective Date (“Initial Term”). At the end of the Initial Term, this Agreement will be automatically renewed for an additional one (1) year (the “First Renewal Term”) and will be automatically renewed for an additional one (1) year at the end of the First Renewal Term (the “Second Renewal Term”) (each, a “Renewal Term”) (the Initial Term and all Renewal Terms, if any, are collectively referred to as the “Term”), provided that (a) Distributor has performed all of its commitments and obligations under this Agreement to Company’s full satisfaction, (b) the parties agree in writing on the Updated Price List and Minimum Quarterly Sales and Minimum Annual Sales for each Renewal Term, and (c) Distributor has not notified Company in writing of its desire not to renew this Agreement, no later than two (2) months prior to the termination or expiration of the Initial Term or the then-current Renewal Term.
	 	 	 
	 	12.2. 	Termination for Convenience. Following the Initial Term, this Agreement may be terminated by Company at any time for any reason with ninety (90) days written notice. Said termination shall become effective at the end of the ninety (90) day period; provided however that if Distributor is, at any time during the Initial Term or any Renewal Term, in material breach of any of Distributor’s commitments and obligations under this Agreement, Company may, at its sole discretion, and upon thirty (30) days written notice to Distributor, either terminate this Agreement or revoke the Exclusive Rights set forth in Section 2.1 above. It is further clarified that in the event Company chooses to terminate this Agreement due to said material breach by Distributor Company will be entitled, in addition to any other compensation or remedies which it may have at law or equity or under this Agreement, to monetary compensation in an amount equal to 10% of the unpurchased Minimum Annual Sales for the remainder of the current Term. The parties agree that this amount is fair compensation for Company’s damage in light of the actual harm which Company is likely to incur and the difficulties of proving actual damage, and that this is a material term of this Agreement.
	 	 	 
	 	12.3.	 Termination. This Agreement may be terminated: (i)
    by either party in the event that the other party has committed a material breach of any of its obligations hereunder that
    has not been cured within thirty (30) days after the breaching party has received notice thereof; or (ii) by Company at its
    sole and absolute discretion (and with immediate effect as of the date Company informs Distributor of its decision), case of
    a change in the ownership of the Distributor

 

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	 	12.4.	Termination Upon Bankruptcy. Either party may, at its option, terminate this Agreement and/or suspend its performance upon provision of written notice in the event that: (i) the other party files a petition in bankruptcy, files a petition seeking any reorganization, arrangement, composition or similar relief under any law regarding insolvency or relief for debtors, or makes an assignment for the benefit of creditors; (ii) a receiver, trustee or similar officer is appointed for the business or property of such party; (iii) any involuntary petition or proceeding under bankruptcy or insolvency laws is instituted against such party and not stayed, enjoined or discharged within sixty (60) days; or (iv) the other party adopts a resolution for discontinuance of its business or for dissolution.
	 	 	 
	 	12.5.	Consequences. Upon termination of this Agreement, Distributor shall immediately discontinue all further promotion, marketing and support of the Products. Without limiting the generality of the foregoing. Distributor shall cease all display, advertising and use of all of Company’s Trademarks and will not thereafter use, advertise or display any Company Trademarks. Upon termination of this Agreement: (i) the due date of all outstanding payments shall automatically be accelerated and all such payments shall become immediately due and payable; (ii) all purchase orders or portions thereof remaining un-shipped as of the effective date of termination may be canceled by Company, at its option; (iii) Distributor shall promptly return to Company all Confidential Information and/or any such tangible property representing the disclosed Confidential Information and/or Intellectual Property Rights divulged by Company to Distributor pursuant to this Agreement and all copies thereof; and (iv) Distributor shall erase/delete any such Confidential Information held by it in electronic form.
	 	 	 
	 	12.6.	Compensation Claims. The parties hereby acknowledge and agree that the Initial Term was deliberately set by the parties in order to allow for adequate compensation to Distributor in consideration for its efforts and investments with respect to the distribution of the Product in the Territory. In light of the foregoing, the parties explicitly agree that upon termination of this Agreement, Distributor shall not be entitled to make any compensation claims, including any claim for indemnification with regard to the loss of its customer base or any investments made in connection with this Agreement. The foregoing shall be limited to the extent that mandatory legal provisions do not provide for such compensation.
	 	 	 
	 	12.7.	Survival. Notwithstanding any termination of this Agreement, Sections 1, 4.5, 4.7, 4.8, 6.2, 7, 8, 10, 11, 12, 13, 14 and 15 shall survive and continue to be in effect in accordance with their terms.

 

13.
FORCE MAJEURE

 

	 	13.1. 	Force Majeure Event. Neither party shall be liable to the other party for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is caused by riots, civil commotions, wars, strikes, hostilities between nations, governmental laws, orders or regulations, embargoes, actions by a government or any agency thereof, acts of God, storms, fires, accidents, sabotages, explosions or any other conditions beyond the reasonable control of the respective parties (“Force Majeure Event”). In such events, the performance of obligations hereunder shall be suspended during, but not longer than, the period of existence of such cause and the period reasonably required to perform the obligations in such cases.
	 	 	 
	 	13.2. 	Cancellation. The party, in respect of which this Agreement cannot be performed because of a Force Majeure Event affecting the other party, is entitled to terminate this Agreement or part thereof where the Force Majeure Event continues for a period of sixty (60) days In any event before exercising its right of cancellation under this Section, the party requesting cancellation shall negotiate in good faith with the other party to reach an agreement not requiring termination.

 

14.
NON-COMPETlTION

 

	 	14.1. 	Prohibited Activities. During the Term and for a period of six (6) months thereafter Distributor shall not, whether directly or indirectly, whether by itself or through others, promote offer sell or provide products or services which compete with Company’s Products or services unless Company provides its advance express written consent. Distributor hereby acknowledges that the restrictions contained in this Section 15.1 are fair and reasonably required to protect the interest of Company. Company shall be entitled to obtain an injunction restraining any violation, further violation or threatened violation of the covenant set forth in this Section l5.l, in addition to any other remedies.

 

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	 	14.2.	NON-SOLICITATION Company shall not directly or indirectly try to hire, hire or solicit Distributor’s Customer during the term of this Agreement without Distributor’s written consent. Distributor’s Customers are those who were or have been in contractual relations (regardless of the actual term of such relations) with Distributor and/or its affiliated persons during the term of the present Agreement. This article is valid for the territory of France only and emphasizing that if a Customer works within the agreed territory and out of it, this article does not apply for them.
	 	 	 
	 	14.3.	Blue-Pencil. Notwithstanding anything contained in Section 15.1 to the contrary, if the scope or period of time specified herein shall be determined to be unreasonable in any judicial proceeding, then the scope and/or period of time of the restriction shall be reduced so that Section 15.1 may be enforced as shall be determined to be reasonable by such judicial proceeding

 

15.
MISCELLANEOUS

 

	 	15.1.	No Conflict. Each party represents and warrants, on a present and ongoing basis, to the other party that its commitments and the rights and privileges granted herein do not conflict with any other agreement or legal obligation.
	 	 	 
	 	15.2.	Relationship of the Parties. In performing their respective services hereunder, Distributor and Company shall operate as and have the status of independent contractors and shall not act as or be an agent, partner or employee of the other. Neither party shall have any right or authority or assume or create any obligations or make any representations or warranties on behalf of the other party, whether expressed or implied, or to bind the other party in any respect whatsoever. Distributor shall be responsible for the payment of all compensation due to its employees and any related payments, including all local income taxes, social security, unemployment compensation, workers compensation and insurance coverage. Distributor may hire its own employees to assist it in the performance of its duties hereunder, but such employees shall be solely the responsibility of Distributor.
	 	 	 
	 	15.3.	Assignment. The rights of Distributor under this Agreement are restricted solely to Distributor and shall not be assigned, transferred, subleased, sublicensed, encumbered or subject to any security interest without the written authorization of Company. Any attempted assignment will be void and of no effect. Company shall be entitled to assign this Agreement, in whole or in part to any third party at its discretion.
	 	 	 
	 	15.4.	Amendment. This Agreement may only be amended by an instrument in writing signed by each of the parties hereto.
	 	 	 
	 	15.5.	Waiver. Any waiver of any right or default hereunder shall be effective only if made in writing and in the instance given and shall not operate as or imply a waiver of any similar right or default on any subsequent occasion. No waiver by either party of any breach or series of breaches or defaults in performance by the other party, and no failure, refusal or neglect of either party to exercise any right, power or option given to it hereunder or to insist upon strict compliance with or performance of either party’s obligations under this Agreement, shall constitute a waiver of the provisions of this Agreement with respect to any subsequent breach thereof or a waiver by either party of its right at any time thereafter to require exact and strict compliance with the provisions thereof.
	 	 	 
	 	15.6. 	Severability. Any clause, provision or portion of this Agreement found or ruled invalid, void, illegal or otherwise unenforceable under any law or by any court, arbitrator or other proceeding, shall be amended to the extent required to render it valid, legal and enforceable, or deleted if no such amendment is feasible, and such amendment or deletion shall not affect the enforceability of the other provisions hereof.
	 	 	 
	 	15.7. 	Governing Law. jurisdiction. This Agreement shall be governed by the laws of the State of Israel and excluding the Convention on Contracts for the International Sale of Goods and that body of law known as conflicts of laws. The courts of competent jurisdiction in Tel Aviv, Israel shall have the exclusive jurisdiction with respect to any dispute arising under or in connection with this Agreement.

 

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	 	15.8.	Appendices. All Appendices hereto are hereby incorporated by reference and made a part of this Agreement.
	 	 	 
	 	15.9.	Headings. The headings and sub-headings contained in this Agreement are for convenience and reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
	 	 	 
	 	15.10.	Entire Agreement. The parties agree that this Agreement is the complete and exclusive statement of the agreement between the parties, which supersedes all prior agreements, oral or written, and all other communications between the parties relating to the subject matter of this Agreement.
	 	 	 
	 	15.11. 	Automatic Renew An automatic renew of the Agreement for a second year, will be done automatically only if the Distributor agrees with a written consent, handed to the Company before the termination of the agreement, to a 30% increase of the minimum quantities of the first year.
	 	 	 
	 	15.12.	 Notices. All notices or other communications hereunder shall be in writing and shall be given in person, by courier, by registered mail addressed as set forth in the heading of this Agreement or such other address as any party may designate to the other in accordance with this procedure. All communications delivered in person or by courier service shall be deemed to have been received upon delivery, and all notices and other communications sent by registered mail shall be deemed to have been received within three (3) Business Days after posting.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective authorized representatives.

 

 

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Appendix
B: Territory

 

Appendix
C: Price List, Minimum Annual Sales and Minimum Quarterly Sales

 

Appendix
D: Marketing Plan

 

Appendix
E: Lead Time Policy

 

Appendix
F: Cancellation Policy

 

Appendix
G: Instructions for Use

 

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Appendix
A: Products

 

Products

 

	 	1.	mobeegoTM
    charger-

 

	 	a.	a
    package of X1 connector (lighting/30 pins/micro usb) + X1 can (figure A)
	 	 	 
	 	b.	packed
    and shipped in a ‘display carton’ of 10 pieces (figure B)

 

*the
package language will follow the distributor requirements’

 

	 	2.	mobeegoTM
    can-

 

	 	a.	a
    single can without a package_(figure C)
	 	 	 
	 	b.	packed
    and shipped in a ‘display carton’ of 15 pieces (figure D)

 

*the
package language will follow the distributor requirements’

 

	 	3.	mobeegoTM
    stand with recycling box-

 

	 	a.
    	a
    extra carton stand , wil1 be supplied for free as required ,and up to a maximum of one stand per 200 mobeegoTM charger
    units ordered (figure E)

 

 

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Appendix
B: Territory

 

Territory:
[France]

 

With
respect to the Exclusivity Rights set forth in Section 2.1 to the Agreement, Territory shall exclude the following jurisdictions
and/or entities, which list may be amended by Company by notice to the Distributor:

 

	1.	On-line
	 	 
	2.	If
    and only if the distributor can not provide a chain because of the cost of the order, the company will be allowed, only for
    this order, to provide the customer. The customer will remain the distributor’s client for all the next order.

 

    	15

    	 

    

 

Appendix
C: Price List. Minimum Annual Sales and Minimum Quarterly Sales 

 

Price
List for Initial Term:

 

	Price
                                         per unit 
 [USD]
	 	 	mobeego
                                         can
 [in
                                         thousands]
	 	Price
                                         per unit
 [USD]
	 	 	mobeego
                                         charger
 [in
                                         thousands]

	 	.135	 	 	10-50	 	 	2.65	 	 	10-50
	 	1.3	 	 	50-200	 	 	2.6	 	 	51-200
	 	.127	 	 	200-1000	 	 	2.5	 	 	200-1000
	 	1.2	 	 	Above
    1000	 	 	2.45	 	 	Above
    1000

 

Suggested
Retail Prices for Initial Term: [6.99, 2.99 Euro]

 

The
Minimum Annual Sales for the Initial Term is as follows: [600K] units

 

It
is hereby clarified and agreed that the Minimum Annual Sales for any Renewal Term must be agreed upon in writing by both parties.

 

The
Minimum Quarterly Sales in each Quarter of the Initial Term is as follow:

 

Q1:
[45K] units [i.e. XX% of Minimum Annual Sales].

Q2:
[110K] units [i.e. XX% of Minimum Annual Sales].

Q3:
[190K] units [i.e. XX% of Minimum Annual Sales].

Q4:
[255K] units [i.e. XX% of Minimum Annual Sales].

 

    	16

    	 

    

 

Appendix
D: Marketing Plan

 

[Please
insert agreed upon marketing plan]

 

    	17

    	 

    

 

Appendix
E: Lead Time Policy

 

Standard
lead time for deliveries is [45] days from the later of order acceptance, or receipt of Advance Payment for such order.

 

The
above terms apply to orders of up to [10K] Product units each. Lead times for orders of more than [200K] Product units will be
agreed upon separately.

 

    	18

    	 

    

 

Appendix
F: Cancellation Policy

 

Company
may cancel an accepted order without penalty:

 

	 	●	If
    the manufacturer of the Products declares bankruptcy or is unable to deliver the Products in a timely manner, or if the agreement
    with the manufacturer of the Products is, for any reason, terminated.
	 	 	 
	 	●	If
    either party has given a notice to terminate the Agreement.
	 	 	 
	 	●	If
    Distributor does not comply the payment terms for such order.

 

    	19

    	 

    

 

Appendix
G: Instructions for Use

 

    	20

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