Terma & Syarat
This Distribution Agreement is entered into by and between DR MIYU (M) SDN. BHD. (Company
No.: 202001028152 (1384472-T)) (hereinafter referred to as the “Company”) and the
individual or entity registering as a distributor of the Company on the Company’s Portal (as
defined hereinafter) (hereinafter referred to as the “Distributor”, where the context requires).
The Distributor’s acceptance of this Agreement shall constitute a legally binding agreement
between the Company and the Distributor. This Agreement shall commence on the date of
the Distributor’s acceptance and shall remain in full force and effect until and unless terminated
by either Party in accordance with Clause 10 of this Agreement.
IT IS HEREBY AGREED AS FOLLOWS:
1. DEFINITIONS
In this Agreement, the following expressions shall, unless the context otherwise requires,
have the meanings assigned to them below:
“Business
Day”
means any day (other than a Saturday or Sunday or gazetted public
holiday) on which commercial banks and financial institutions are
open for general banking business in Pulau Pinang, Malaysia;
“Company’s
Portal”
means the Company’s online platform which enables the
Distributors to, among others, submit Purchase Orders for the
Products;
“Confidential
Information”
shall include but is not limited to:
(i) the terms and conditions of this Agreement;
(ii) the existence of all previous and ongoing discussions
between the Parties pertaining to the transaction
contemplated by this Agreement as well as the grant of the
distribution rights to the Distributor, whether verbally or in
writing;
(iii) all information concerning the Products, proposed
products, business and marketing plans, methods of
manufacture, processes, ideas, inventions (whether
patented or not), schematics and other technical, business,
financial, operational and Product development plans,
strategies, and any other information or materials in
whatever form irrespective whether marked as confidential
or not;
(iv) any and all confidential or proprietary information relating to
the customers, clients, or manufacturer of the Parties;
(v) the operations, processes, product information, trade
secrets, know-how, or technical information of the Parties;
(vi) non-public information reasonably designated as being
confidential or which, under the circumstances surrounding
disclosure, ought to be treated as confidential; and(vii) any information designated as “Confidential Information” by
the Parties;
“Governmental
Authority”
means any governmental, semi or quasi-governmental and/or
statutory departments, agencies or bodies, or any municipal
government or statutory or any non-statutory authority or any other
body or corporation, having authority or jurisdiction over the
relevant matter or issue in question or under consideration;
“Intellectual
Property”
shall include but is not limited to:
(i) the copyright, trademark, service marks, trademark rights,
trade names, patents, patent rights, designs, branding
rights, database rights, rights in Confidential Information
and similar rights of any type, including know-how, trade
secrets, moral rights or other similar rights and any other
industrial or intellectual property rights in any country, in
each case whether registered or not; and
(ii) any application or right to apply for the registration of any of
the rights referred to in (i), now existing or in the future;
“Manufacturer” means the manufacturer of the Products of the Company;
“Parties” means collectively, the Company and the Distributor, and “Party”
shall mean any of them;
“Products” means the list of products available for supply by the Company to
the Distributor, as listed on the Company’s Portal and which may
be amended from time to time at the Company’s discretion;
2. GRANT OF DISTRIBUTION RIGHTS
2.1. The Company hereby appoints the Distributor as a distributor of the Products on
a non-exclusive basis, and the Distributor hereby accepts the said appointment.
The Distributor agrees to exclusively distribute the Products and shall not market,
distribute, or sell any products that compete with or are similar to the Products,
except with the prior written consent of the Company. This appointment and the
obligations of the Distributor shall be subject to the terms and conditions set forth
herein, as may be amended from time to time by the Company in accordance with
this Agreement.
3. PRODUCTS
Purchase Orders
3.1. 3.2. The volume of Products so purchased by the Distributor from the Company shall
be determined on the basis of purchase orders placed and completed by the
Distributor with the Company (“Purchase Orders”), which shall be submitted
through the Company’s Portal.
The Distributor acknowledges and agrees that its first Purchase Order shall be
submitted through the Company’s Portal for an amount of not less than ten (10)
boxes of Products a points equivalent of no less than the number of boxes or
points equivalent as prescribed by the Company, which may be adjusted from time
23.3. 3.4. 3.5. to time and announced by the Company as the Company deems fit (“Initial
Purchase Order”).
All Purchase Orders shall be subject to the written acceptance or rejection by the
Company, and accordingly, the terms and conditions contained therein. The
Distributor shall not cancel, vary or postpone the settlement of any Purchase Order
accepted by the Company, except as agreed by the Company in writing.
All Purchase Orders shall be subject to a cooling-off period of ten (10) Business
Days (“Cooling-Off Period”), during which the Distributor may cancel the
Purchase Orders without any charges. No Products in the Purchase Orders shall
be delivered until the expiry of the Cooling-Off Period, unless the Distributor has
expressly waived their rights to rescind the Purchase Orders in writing to the
Company.
The terms and conditions set forth herein shall apply to every Purchase Order
accepted by the Company. In the event of any conflict or inconsistency between
the Agreement and the provisions of any Purchase Order, the Agreement shall
prevail.
Pricing and Payment
3.6. The Company reserves the right to vary the prices of the Products. Any price
variations shall be effective when updated on the Company’s Portal or
communicated to the Distributor, whichever is earlier. For the avoidance of doubt,
any Purchase Orders placed with the Company following any such price variations
shall be deemed accepted by the Distributor of such price variations.
The Company shall have the sole right to set credit limits and/or additional terms
(including the right to set-off any outstanding payments by the Distributor with any
incentives due and payable by the Company to the Distributor), and/or reject or
delay any acceptance of any Purchase Order and/or delivery of any Products
based on the Distributor’s failure to make payments in accordance with the
payment terms.
The acceptance of payment by the Company of any Purchase Orders shall not
constitute an admission by the Company as to any dispute, an accord and
satisfaction, a remedy of account stated, or otherwise waive or affect the rights of
the Company hereunder and in law.
Pricing Incentives
3.9. The Company may, at any time, at its sole discretion, establish a bonus or
incentive scheme applicable to the distributors of the Company, depending on the
distributors’ performance as well as the overall performance of the Company. For
the avoidance of doubt, all incentives (if any) are only payable on the sale of the
Products and not on the referral of other distributors to the Company.
3.10. The establishment of any such scheme shall be notified to the Distributor through
the Company’s Portal or to the Distributor directly. Any variations to any such
scheme shall be effective when updated on the Company’s Portal or
communicated to the Distributor, whichever is earlier.
3.7. 3.8. 33.11. The Distributor shall be solely liable for all necessary and applicable taxes
associated with any income or incentives generated pursuant to this Agreement.
Shipment
3.12. The Company shall, to the extent reasonably possible, ship the Products in
accordance with the Sales and Fulfilment Terms published on the Company’s
Portal, as amended from time to time by the Company. The Distributor
acknowledges and agrees that such terms are estimates only, and the Company
shall not be held liable for any failure to meet any of the stipulated terms.
3.13. The title to and risk of loss of the Products purchased by the Distributor shall
transfer from the Company to the Distributor upon the Company’s receipt of full
payment for the Products.
Acceptance
3.14. The Distributor shall promptly inspect all Products received and may reject any
Product that fails to materially conform to the Product specifications published by
the Company. The Distributor shall be deemed to have accepted the Products
unless the Company is notified in writing regarding any non-conformance,
defective or missing Products within fourteen (14) Business Days from the date of
receipt of the Products by the Distributor.
3.15. In the event of any non-conformance, defect or missing element with respect to
any Product purchased, the Company’s sole and exclusive liability shall be to
either:
3.15.1. repair or replace the Product; or
3.15.2. credit the Distributor’s account for the net amount paid for any such
Product, if any, provided that:
(a) (b) (c) the Distributor promptly notifies the Company in writing of any
alleged defect or non-conformity to specifications published by the
Company for such Products, no later than fourteen (14) Business
Days of receipt of such Products;
the Distributor returns, at its own cost, such Products in the form
and manner prescribed by the Company; and
the Company has validated and is satisfied that the alleged defects
or non-conformities exist and were not caused by any accident,
misuse, neglect, alteration, unusual physical stress, improper
testing, or any such other causes not at the fault of the Company.
Recalls, Modifications or Discontinuance
3.16. In the event that the Company is required by the Manufacturer or any
Governmental Authority to recall or discontinue any Products, if the Company
voluntarily initiates a recall of any Products, or if the sale or use of the Products is,
as a result, enjoined, the Distributor shall fully cooperate with and assist the
Company in locating and retrieving any recalled Products from customers, or
cease sales of such Products. If the Distributor voluntarily initiates a recall of any
4Products to which the Company agrees, the Company shall fully cooperate with
and assist the Distributor.
3.17. The Distributor acknowledges that the Manufacturer reserves the sole and
exclusive right to withdraw, discontinue, modify, improve, replace, or declare as
obsolete any Product(s), and/or to modify the features of, cease the offering of,
amend the terms and conditions of, or make any other adjustments or
modifications to the Product(s) at any time as deemed necessary.
3.18. The Company shall not have any liability to the Distributor in the events in Clause
3.16 to 3.17 above, provided always that such events shall be conveyed to the
Distributor as soon as practically and reasonably possible.
Buyback Policy
3.19. The Company may buy-back Products sold to the Distributor within a period of six
(6) months from the date of purchase at the reasonable request of the Distributor
(“Buyback Policy”). Subject to the merit of the request of the Distributor, the
Company may refund up to ninety per cent (90%) of the total purchase price;
however, the Company shall be entitled to make a deduction of any applicable
bonuses, and ten per cent (10%) of the total purchase price for any handling and
administrative costs.
3.20. Such Buyback Policy shall not apply to Products modified or damaged by the
Distributor and shall only be processed upon the Distributor’s submission of a
completed claim form in the manner satisfactory to the Company, acting
reasonably, provided always that the Company confirms that the Products remain
marketable, have not expired as per the Product label and remains in satisfactory
or original condition.
4. OBLIGATIONS OF THE PARTIES
Obligations of the Company
4.1. The Company shall:
4.1.1. provide reasonable consultation to the Distributor concerning technical
aspects and use of the Products;
provide the Distributor with all necessary information about the Products
and any changes to the Products, as soon as practically possible, when
they become available; and
maintain the Company’s Portal to provide the Distributor with access to
information and functions on the Company’s Portal.
Obligations of the Distributor
4.2. The Distributor shall:
4.2.1. use its best efforts to promote, market, advertise and sell the Products by
all legitimate means and where applicable, only in accordance with any
guidelines or marketing and promotional plans as may be prescribed by
the Company from time to time;
4.1.2. 4.1.3. 54.2.2. 4.2.3. 4.2.4. 4.2.5. 4.2.6. 4.2.7. 4.2.8. obtain the prior written consent from the Company before selling or
distributing the Products via any online platforms, websites, or digital
marketplaces;
refrain from making false, misleading, exaggerated, or unsubstantiated
claims regarding the effectiveness, quality, or attributes of the Products
in all communications with any other party, and to ensure that all
representations made to customers or prospective customers are
accurate, truthful, and consistent with the product specifications,
descriptions, and any marketing or promotional guidelines provided or
approved by the Company from time to time;
comply with all reporting requirements prescribed by the Company,
including but not limited to providing accurate personal and customer
information, feedback or complaints regarding the Products, and other
relevant data or information as may be required by the Company
(collectively referred to as “Submissions”);
only sell, distribute and promote the Products at the retail price as
determined by the Company;
not remove, modify, disassemble, analyse, reverse assemble, reverse
engineer, or replicate the Products, Product packaging or any Intellectual
Property of the Company without the prior written consent of the
Company;
refrain from selling, distributing and promoting any replica, counterfeit or
unauthorised products in all circumstances, and to immediately notify the
Company if it discovers any replica, counterfeit or unauthorised products
in the market; and
not offer, promise, give, authorise, solicit or accept from, or offer to the
Company and its employees, directors, agents, representatives and
affiliates, or other third parties any undue pecuniary or other improper
business or personal advantage of any kind (or imply that they will or
might do any such thing at any time in the future), or directly or indirectly
take any other illegal or unlawful action, in any way connected to this
Agreement.
5. RIGHT TO USE THE DISTRIBUTOR’S SUBMISSIONS
Pursuant to Clause 4.2.4 and to the extent permitted by the laws of Malaysia, the
Distributor hereby grant the Company the exclusive, royalty-free right to use the
Submissions solely for the Company’s business and marketing purposes in accordance
with this Agreement. The Distributor shall obtain all necessary consents and approvals
from the relevant parties prior to and for the disclosure of the Submissions to the
Company.
6. INTELLECTUAL PROPERTY RIGHTS
6.1. Any and all rights, titles and interest in any Intellectual Property rights and other
rights relating to:
6.1.1. the trademarks and trade names that the Company may adopt from time
to time in connection with the Products (“Marks”);
66.2. 6.3. 6.4. 6.1.2. the Products and the product lines that include the Products;
6.1.3. the Submissions and any business and/or marketing proposals or
publications in connection therewith; and
6.1.4. any and all concepts, techniques, processes, inventions, software or
works of authorship or other proprietary information developed, embodied
in or practised in connection with the Products, including all modifications,
enhancements, derivative works, configurations, translations, upgrades
and interfaces thereto,
shall at all times remain the respective sole property of the Company, free and
clear of any liens, claims and encumbrances, and shall not be used without the
prior written approval of the Company.
The Company does not warrant the validity or enforceability of the Intellectual
Property rights relating to the Products, nor does it warrant that the Products do
not infringe any intellectual property rights of any third parties.
If any Product infringes a third party’s Intellectual Property rights or other rights ,
or if the sale or use of any Product is enjoined, the Company may, at its discretion:
6.3.1. attempt to procure for the Distributor the right under such Intellectual
Property rights or any other rights to sell or use the Product, as
appropriate;
6.3.2. replace the Product with non-infringing, functionally equivalent products;
or
6.3.3. request that the Distributor discontinue the sales of the Product.
If any unauthorised use of the Intellectual Property rights relating to the Company
by a third party is found to be directly or indirectly attributed to any act, omission
and/or default on the Distributor’s part, then the Company shall be entitled to claim
back a portion or all of the costs of any and/or all appropriate actions taken against
the infringing third party from the Distributor.
7. REPRESENTATIONS AND WARRANTIES
7.1. The Distributor hereby represent and warrant that:
7.1.1. it is duly organised, validly existing and in good standing under the laws
of Malaysia (applicable only if the Distributor is a corporation);
7.1.2. it is a citizen of Malaysia, with a valid local and/or residential mailing
address and is capable of entering into a legally binding contract
(applicable only if the Distributor is an individual);
7.1.3. it is solvent and not a bankrupt/wound up, nor are there any bankruptcy
proceedings/winding up petition pending against it;
77.2. 7.3. 7.1.4. it has the full power, authority and legal capacity to enter into this
Agreement, grant (or procure to grant) and be granted all permits,
licences and approvals required to fully perform its obligations hereunder;
7.1.5. the execution, delivery and performance of this Agreement has been
authorised by all necessary corporate or regulatory action, that it has the
requisite right, power and authority to perform hereunder and that it is not
a party to, or governed by, any contract, agreement (whether oral or
written) or other instrument, any legal action, suit or proceedings which
would restrict such party’s ability to enter into this Agreement or
consummate any of the transactions contemplated hereby (applicable
only if the Distributor is a corporation);
7.1.6. it shall use all reasonable efforts to take, or cause to be taken, all actions
and to do, or cause to be done, all things necessary or desirable under
applicable law to consummate the transactions contemplated by this
Agreement, including but not limited to, compliance with personal data
protection, marketing and direct selling laws and regulations of Malaysia;
7.1.7. it will carry out all obligations under this Agreement in a competent and
professional manner and with all reasonable care and skill;
7.1.8. it shall, at all times, ensure that the distribution and use of Products are
in accordance with any guidelines issued from time to time by the
Company and will not knowingly do any act or omission which is
prejudicial to the name, reputation, goodwill or image of the Company;
7.1.9. no representation or warranty in this Agreement, nor any statement,
document or certificate furnished or to be furnished to the Company
pursuant to or in connection with this Agreement contains or will contain
any untrue statement of material fact, or omits or will omit to state a
material fact necessary to make statements contained herein or therein
not misleading.
The Company hereby represents and warrants that the Products purchased by the
Distributor shall substantially conform to the respective specifications published by
the Company and shall be substantially free from defects arising from its
distribution or shipment processes from the Company to the Distributor. This
limited warranty is contingent upon the proper use of Products in the application
for which they were intended as indicated on the Product label, and the Company
makes no warranty (express, implied, or statutory) for Products that are modified
(except as expressly contemplated herein) or subjected to unusual physical stress
or any other events not within the knowledge and control of the Company. This
limited warranty is in lieu of all other warranties, express or implied, including but
not limited to any warranty of merchantability or fitness for a particular purpose,
and all such warranties are hereby disclaimed.
Notwithstanding Clause 7.2 above, the Company assumes no liability for:
7.3.1. use of Products in an application other than applications indicated in the
Product labels;
7.3.2. the modification of any Product unless such modification was made by
the Company, where such liability would not have occurred but for such
modifications;
88. 7.3.3. any claim arising out of or relating to any material misstatement or
omission made by the Distributor or any statement or representation by
the Distributor regarding the Products which are inconsistent with the
Company’s warranties expressly granted under this Agreement or label
claims;
7.3.4. any claim or losses arising out of or relating to any system failures, errors,
interruptions, delays, or computer virus or otherwise howsoever,
notwithstanding the adoption of reasonable precautions; or
7.3.5. any claim arising out of or relating to the use or access to third-party
websites or webpages linked to the Company’s Portal.
7.4. The Distributor acknowledges and agrees that:
7.4.1. the Company’s sole and exclusive liability under the limited warranty
provided in Clause 7.2 above shall be as specified in Clause 3.14 above;
7.4.2. the Distributor shall pass on to its customers the Company’s limited
warranty in Clause 7.2 above, to the extent permitted by laws of Malaysia;
7.4.3. the Distributor shall not extend or increase the Company’s limited
warranty provided in Clause 7.2 above or assume or agree on behalf of
the Company any other obligation or liability in connection with the
Products.
7.4.4. the Distributor shall be liable for and indemnify the Company from any
and all claims, costs and damages arising out of or in connection with any
unauthorised variation of the Company’s limited warranty hereunder.
INDEMNITIES AND LIMITATION OF LIABILITIES
8.1. The Distributor shall defend, fully indemnify and hold the Company, its assigns, its
respective employees, directors, agents, representatives and affiliates, harmless
from and against any and all liens, damages, losses, liabilities, obligations,
penalties, claims, litigation, demands, defences, judgements, suits, proceedings,
costs, disbursements or expenses of any kind or any nature whatsoever (including
third party claims, reasonable attorney’s fees, consultants’ fees, experts’ fees and
other costs of litigation) arising out of or in connection with:
8.1.1. the Distributor’s breach or non-performance of any of its obligations under
this Agreement;
8.1.2. the Distributor’s breach of any applicable statutory laws, by-laws or
regulations, including but not limited to the Personal Data Protection Act
2010, within Malaysia;
8.1.3. the Distributor’s breach of any representation, warranty or covenant set
out in this Agreement including any negligent or reckless act, omission or
default by the Distributor, its employees, directors, agents,
representatives and affiliates;
98.1.4. any gross negligence, misrepresentation or wilful misconduct by the
Distributor, its employees, directors, agents, representatives and affiliates
in carrying out its obligations under this Agreement;
8.1.5. infringement or alleged infringements of Intellectual Property rights or any
other rights of any party (including the events in Clause 6 above) arising
out of or in connection with the marketing and distribution of the Products
by the Distributor, its employees, directors, agents, representatives and
affiliates.
8.2. In the event of any claims or actions referred to in Clause 6 above and this Clause
8, the Distributor shall promptly notify the Company in writing. The Distributor shall:
8.2.1. assist the Company in directing the defence or negotiations of the claim,
and regularly update and notify the Company of any material
developments or events in relation to such defence or negotiations;
8.2.2. diligently conduct any litigation or negotiations in a manner that does not
adversely affect the name or reputation of the Company; and
8.2.3. not make any form of admission of liability or take any action to settle or
compromise to any such claim in respect to any claims for which the
Distributor are or might be liable to indemnify the Company hereunder,
without the prior written approval of the Company.
8.3. EXCEPT FOR THE LIMITED WARRANTY PROVIDED BY THE COMPANY
HEREUNDER AND TO THE EXTENT PERMITTED BY LAW, THE COMPANY
GRANTS NO OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED,
BY STATUTE, IN ANY COMMUNICATION WITH THE DISTRIBUTOR, OR
CUSTOMERS, OR OTHERWISE, REGARDING THE PRODUCTS, THEIR
FITNESS FOR ANY PURPOSE, THEIR QUALITY, OR THEIR
MERCHANTABILITY. THE COMPANY DOES NOT WARRANT THAT
OPERATION OF THE PRODUCTS WILL BE ERROR-FREE. THE COMPANY
NEITHER ASSUMES NOR AUTHORISES ANY OTHER PERSON TO ASSUME
ANY OTHER LIABILITIES ARISING OUT OF OR IN CONNECTION WITH THE
SALE OR USE OF ANY COMPANY PRODUCTS. TO THE EXTENT PERMITTED
BY LAW, THE LIMITED WARRANTY OF THE COMPANY AND THE REMEDIES
OF THE DISTRIBUTOR HEREUNDER CONSTITUTE THE SOLE AND
EXCLUSIVE OBLIGATION OF THE COMPANY AND ANY PARENT OR
AFFILIATED COMPANY OF THE COMPANY AND CONTAIN THE
DISTRIBUTOR’S SOLE AND EXCLUSIVE REMEDIES WITH RESPECT TO
DEFECTIVE OR NON-CONFORMING PRODUCTS. THE SAID LIMITED
WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES AND REMEDIES,
EXPRESS, IMPLIED OR STATUTORY. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED HEREIN, AND EVEN TO THE EXTENT NOT
SPECIFICALLY LIMITED OR EXCLUDED IN THE LIMITED WARRANTY OF
THE COMPANY IN EFFECT FROM TIME TO TIME, IN NO EVENT SHALL THE
COMPANY OR ANY PARENT OR AFFILIATED COMPANY OF THE COMPANY
BE LIABLE UNDER ANY CONTRACT, TORT (INCLUDING NEGLIGENCE),
STRICT LIABILITY OR ANY OTHER LEGAL OR EQUITABLE THEORY FOR
ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL, EXEMPLARY, OR
CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO LOSS OF
PROFITS OR ANTICIPATED PROFITS, OR OTHER ECONOMIC LOSS OF THE
DISTRIBUTOR’S AFFILIATES, SUCCESSORS, OR ASSIGNS, OR THE
CUSTOMERS OR USERS OF THE PRODUCTS.
109. FORCE MAJEURE
9.1. Neither Party shall be deemed to be in breach of its obligations under this
Agreement (or any part of them) if it is unable to perform its obligations due to an
event of Force Majeure.
9.2. For the purposes of this Clause 9, an “event of Force Majeure” shall mean, and
shall include but is not limited to, war, civil war or acts of terrorism, acts of God
and natural catastrophes, strikes, riots, labour unrest or other industrial
disturbances (affecting the performance of this Agreement), government actions
or inactions including but not limited to change of government, change of policies,
regulations and/or rules (affecting the performance of this Agreement), pandemics
or epidemics in any nature, government-imposed lockdown or any form of orders
pertaining to restrictions in movement, and/or any other similar act or condition
beyond its reasonable control.
9.3. If either Party considers the event of Force Majeure to be of such severity or to be
continuing for such period of time that it effectively frustrates the original intention
of this Agreement, then the Parties may mutually agree that this Agreement may
be terminated.
9.4. Should this Agreement be terminated pursuant to Clause 9.3 above, all rights and
obligations of the Parties under this Agreement shall forthwith terminate and
neither Party shall have any claim against or be liable to the other Party save for
any rights and liabilities accruing prior to such termination.
9.5. Neither Party shall be entitled to rely upon the provisions above if it is reasonably
determined that an event of Force Majeure has not occurred.
10. TERMINATION
10.1. A Party may terminate this Agreement by giving not less than thirty (30) days
written notice to the other Party, without assigning any reasons thereof.
10.2. Without limiting its other rights or remedies, this Agreement may be terminated
with immediate effect by either Party, if the other Party (“the Defaulting Party”):
10.2.1. commits a material breach incapable of being remedied which may
include, but is not necessarily limited to, a breach of any representation,
warranties, or undertakings made under this Agreement;
10.2.2. commits a breach of any applicable statutory laws, by-laws or regulations
within Malaysia;
10.2.3. fails to adhere, comply, perform and/or fulfil any of its obligations and/or
the terms and conditions of this Agreement and that such failure has
subsisted for a period of seven (7) days following receipt of a written
notice by the non-Defaulting Party specifying such default to be rectified
(in the case of a default that is capable of being rectified);
10.2.4. becomes insolvent, or takes the benefit of any present or future
insolvency statute, or makes a general assignment for the benefit of
creditors, or files a voluntary petition in bankruptcy or a petition or answer
seeking an arrangement or its reorganisation or the readjustment of its
1110.2.5. 10.2.6. 10.2.7. indebtedness under the applicable bankruptcy laws or any other
applicable laws, or consents to the appointment of a receiver, trustee, or
liquidator of all or substantially all of its property;
by order or decree of the court such Party is adjudged bankrupt, insolvent,
or an order is made approving a petition filed by any of its creditors or by
any of its stockholders or partners, seeking its reorganisation or the
readjustment of its indebtedness under the applicable bankruptcy laws or
under any other applicable law;
a petition under any part of the applicable winding up laws or an action
under any present or future insolvency law or statute is filed against such
Party and is not dismissed or stayed within sixty (60) days after the filing
thereof;
has reasonable belief that the Defaulting Party whether with or without
the Defaulting Party’s knowledge, engages in corrupt practice in
connection with this Agreement.
10.3. The Distributor acknowledges and agrees that the Company shall have the right,
at its sole discretion, to suspend or terminate this Agreement with immediate effect
and withhold or forfeit any outstanding bonuses, incentives, or other payments due
to the Distributor in the event the Distributor breaches, fails to comply with, or is
found to have contravened any of the terms, conditions, or obligations set forth in
this Agreement.
10.4. If either Party is precluded by any applicable laws, regulations or order of any
Governmental Authority from providing or receiving any Products or fulfilling its
obligations under this Agreement, such Party may suspend its obligations or
terminate this Agreement upon providing thirty (30) days prior written notice to the
other Party or within the timeframe required by such applicable laws, regulations,
or order of any Governmental Authority. In the event of a suspension, there shall
be no further liabilities incurred by either the Company or the Distributor until such
suspension is ended and the affected Products can continue to be provided again.
10.5. Consequences of Termination
10.5.1. Upon termination of the Services (or any part thereof):
10.5.1.1. All amounts then due and owing by the Distributor to the
Company shall become immediately due and payable. The
Company shall have the option to complete the supply of all
Products pursuant to any accepted Purchase Orders which
are scheduled for delivery prior to the effective date of
termination;
The Distributor shall return to the Company, or destroy copies
of any Confidential Information or Intellectual Property of the
Company in its possession or under its control, together with
a statement signed by the Distributor (in the case of an
individual) or an officer or duly authorised representative of
the Distributor (in the case of a corporation) to the effect that
all of the Confidential Information and Intellectual Property
has been returned to the Company or destroyed;
10.5.1.2. 1210.5.1.3. The Distributor shall cease to describe itself as a distributor
of the Company and cease to use any of the Intellectual
Property of the Products and/or the Company, and return to
the Company all materials supplied to the Distributor by the
Company which contain any of such Intellectual Property.
Furthermore, upon receipt of written notice from the Company,
the Distributor shall dispose of all packaging, labels,
brochures, lists, and other similar materials containing any of
the Intellectual Property of the Products and/or Company in
accordance with the Company’s instructions;
10.5.1.4. Notwithstanding the foregoing, and as may be instructed by
the Company, the Distributor shall, or shall not, continue to
supply the Products needed to satisfy any contractual
obligations existing as of the effective date of termination of
this Agreement for any reason; and
10.5.1.5. The Distributor shall, to the extent permitted under applicable
laws, use best endeavours to solicit, persuade, or
recommend the customers who have purchased any
Products through the Distributor to transfer any existing
customer contracts with the Distributor (“Customer
Contracts“) to the Company. In the event that such
customers have agreed to such transfer, the Distributor shall
use its best efforts to provide any and all assistance
necessary to facilitate such transfer. The terms and
conditions for the transfer of Customer Contracts shall be
further agreed by the Parties in writing.
10.5.2. Where this Agreement is terminated in accordance with Clause 10.2 or
10.3 above, the non-Defaulting Party shall be entitled to the following:
10.5.2.1. to immediately suspend its performance under this
Agreement;
10.5.2.2. to undertake legal action for damages against the Defaulting
Party, and in addition, to seek specific performance,
injunction, and/or any other equitable remedies as may be
made available to the non-Defaulting Party at such time this
Agreement is being terminated; and/or
10.5.2.3. the Distributor shall not be entitled to any compensation or
damages in the event that the Company decides to exercise
its rights to terminate this Agreement.
10.5.3. Where this Agreement is terminated in accordance with Clause 10.4
above, both Parties shall be entitled to immediately suspend their
performance under this Agreement without prejudice to any rights or
remedies the Parties may have against each other for any antecedent
breach.
11. NOTICES
11.1. Unless otherwise agreed by the Company, all notices, demands, requests or other
communications to be given or made under this Agreement (“Notices”) shall be in
13writing and may be transmitted by the Distributor to the Company through
electronic mail below, any designated messaging platform as adopted by the
Company or the Company’s Portal in the manner as specified on the Company’s
Portal. Notices to the Distributor shall be sent to the Distributor’s contact details
provided to the Company. Notices to the Company are deemed effective and
received when given:
EMEL
Address
: drmiyu.info@gmail.com
11.2. Notices shall be deemed to have been duly served upon and received by the
addressee at the time when it is sent on the condition that it is sent during normal
working days and hours between 9 a.m. to 6 p.m. from Monday to Friday
(excluding public holidays in Malaysia), failing which the receipt would be deemed
to have been received on the next working day (unless the representative of the
receiving Party is notified prior to sending and receipt shall then be deemed to
have been received on the date the electronic mail is sent).
12. OBLIGATIONS OF CONFIDENTIALITY
12.1. The Parties hereby agree to strictly comply with the obligations of confidentiality
pertaining to the Confidential Information, and shall not disclose or attempt to
disclose, exploit, and/or reproduce any part or the whole of the Confidential
Information directly or indirectly for any purposes other than for the purposes of
implementing the arrangements agreed upon under this Agreement, unless prior
written approval of the other Party is obtained.
12.2. The obligations of confidentiality shall not apply to the following information:
12.2.1. which is in the public domain at the time of disclosure or comes into the
public domain through no act of unauthorised disclosure by the receiving
Party; or
12.2.2. which after such disclosure, through no fault of the receiving Party,
becomes generally available to third parties by publication or otherwise;
or
12.2.3. which was lawfully in the possession of the receiving Party from a third
party under no obligations of confidentiality;
12.2.4. which constitute Confidential Information disclosed with the prior written
approval of the disclosing Party; or
12.2.5. disclosed by the disclosing Party to the receiving Party on a non-
confidential basis and which was expressly identified as such; or
12.2.6. which is required to be disclosed by any applicable laws or by an order of
the Court or by any Governmental Authority.
13. NON-SOLICITATION AND NON-CIRCUMVENTION
13.1. The Distributor agrees not to:
13.1.1. during the Term and for a period of one (1) year from the date of
termination of this Agreement, solicit, entice away or recruit for any
14employment or engagement with any other entity carrying on a similar
business (whether directly or indirectly, or whether similar or competing
businesses) of any person, member, distributor, agent, employee or
consultant of Company or its affiliates thereof with whom the Distributor
had contact or who became known to it through the distribution of the
Company’s Products as contemplated under this Agreement;
13.1.2. during the Term and for a period of one (1) year from the date of
termination of this Agreement, engage or purchase Products directly from
the Manufacturer of the Products without the express prior written
consent of the Company.
13.2. Any breach of Clause 13.1 above shall constitute a material breach of this
Agreement and in such events, the Company reserves the right to immediately
terminate this Agreement without any liability to the Distributor. In such an event,
the Company shall be entitled to recover any costs or damages resulting from such
breach, including but not limited to any losses, expenses, or damages incurred by
the Company.
14. REMEDIES
The Parties hereby acknowledge and agree that where damages shall not be an
adequate remedy for any breach of this Agreement by the Defaulting Party, the non-
Defaulting Party shall be entitled to seek specific performance, injunction or other
equitable relief as remedies in addition to damages for such breach.
15. GOVERNING LAW AND DISPUTE RESOLUTION
15.1 This Agreement shall be governed by and construed in all respects in accordance
with the laws of Malaysia.
15.2 In the event of any dispute, difference, controversy, claim or question arising under,
out of, in connection with or in relation to this Agreement, including its existence,
validity, interpretation, performance, breach, or termination (“Dispute“), both
Parties shall attempt in good faith to resolve the Dispute through negotiations
between an authorised representative of each Party having the authority to resolve
the Dispute (“Negotiations”) within thirty (30) days of notification thereof.
15.3 In the event the Parties are unable to resolve the Dispute through the Negotiations,
either Party may serve written notice to the other Party that such Disputes shall be
referred to the courts of Malaysia.
16. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement and understanding between the
Parties with respect to the matters dealt with in this Agreement and supersedes any
other agreement, letters, or correspondence (oral or written or express or implied)
entered into prior to this Agreement in respect of the matters dealt with in this Agreement.
17. AMENDMENT AND/OR VARIATION
The Company reserves the right to amend, modify and/or update the terms of this
Agreement from time to time at its discretion. Any changes made shall be published and
posted on the Company’s Portal and, where appropriate, notified to the Distributor by
15email, whereupon the Distributor’s continued access to the Company’s Portal and/or
engagement with the Company shall constitute the Distributor’s understanding,
acknowledgment, acceptance, and agreement to the changes made to this Agreement.
18. SEVERABILITY
If any part of any provision of this Agreement is declared invalid or unenforceable under
applicable laws, such part shall only be ineffective to the extent of such invalidity or
unenforceability, without in any way affecting the remaining provisions of this Agreement.
19. WAIVER
Failure by either Party to enforce at any time any provision of this Agreement shall not
be construed as a waiver of its right to enforce the breach of such provision or any other
provision of this Agreement or as a waiver of any continuing succeeding or subsequent
breach of any provision or other provision of this Agreement. For the avoidance of doubt,
any waiver shall be expressly made in writing by the waiving Party to the other Party
and shall be limited to the extent therein provided.
20. SUCCESSORS BOUND
This Agreement binds the heirs, executors, administrators, successors-in-title and
permitted assigns of the respective Parties with respect to all covenants herein and shall
supersede all previous negotiations, and representations made by both Parties whether
orally or in written form.
21. ASSIGNMENTS
The Distributor hereby agrees that this Agreement and the Distributor’s rights hereunder
are non-transferable and may not be assigned by the Distributor to any other party
without the express written consent of the Company.
22. NO PARTNERSHIP NOR AGENCY
Nothing in this Agreement shall be deemed to constitute any partnership between the
Parties, to create any relationship of agency between them, or to create any relationship
of employee-employer, and neither of the Parties has authority to bind the other Party
unless expressly stated in this Agreement or otherwise required by the lawful execution
of the subject matter of this Agreement.
23. TIME
Time whenever mentioned in this Agreement shall be of the essence.