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Unless earlier terminated as provided below, the term of this Agreement shall commence on
once the Agreement is executed and shall continue for one (1) year. At the end of the term, the
Agreement shall continue until terminated by either party on at least 30 days prior notice.
A. Manufacturer may terminate at any time by written notice given to Distributor not less than
thirty (30) days prior to the effective date of such notice in the event Manufacturer decides to
terminate all outstanding distributor agreements for Manufacturer’s Products and to offer a new
or amended form of distributor agreement.
B. Manufacturer may terminate this Agreement upon notice to Distributor on any of the
following events: (1) failure of Distributor to fulfill or perform any one of the duties, obligations
or responsibilities of Distributor in this Agreement, which failure not cured within thirty (30) day
notice from Manufacturer; (2) any assignment by Distributor of any interest in this agreement or
delegation of Distributor’s obligations without Manufacturer’s written consent; (3) any sale,
transfer or relinquishment, voluntary or involuntary, by operation of law or otherwise, of a
material interest in the direct or indirect ownership or any change in the managers of
Distributor; (4) failure of Distributor for any reason to function in the ordinary course of
business; (5) conviction in a court of competent jurisdiction of Distributor, or of a significant
partner, principal officer or major stockholder of Distributor for any violation of law that, in
Manufacturer’s opinion, to affect adversely the operation or business of Distributor or the good
name, goodwill, or reputation of Manufacturer, products of Manufacturer, or Distributor; or (6)
submission by Distributor to Manufacturer of fraudulent reports or statements, including,
without limitation, claims for any refund, credit, rebate, incentive, allowance, discount,
reimbursement or other payment by Manufacturer.
16. Obligations on Termination.
On termination of this Agreement, Distributor shall cease to be an authorized distributor.
All amounts owing by Distributor to Manufacturer shall, notwithstanding prior terms of sale,
become immediately due and payable;
A. All unshipped orders shall be cancelled without liability of either party to the other;
B. Distributor will resell and deliver to Manufacturer on demand, free and clear of liens and
encumbrances, such of Manufacturer’s Products and materials bearing Manufacturer’s name as