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Non-Exclusive Distributor Agreement
This Non-Exclusive Distributorship Agreement (“Agreement”) is made and effective this
______________ (Date), by and between (“Distributor”)
_________________________________________________________________________ (Name and Address) and
(“Manufacturer”) Cleveland Reclaim Industries dba Turtle Plastics Company, located at 7400
Industrial Parkway Drive, Lorain, Ohio 44053. Manufacturer desires to appoint Distributor, and
Distributor desires to accept appointment, as a non-exclusive distributor of Manufacturer’s
products as set forth herein. Therefore, in consideration of the mutual agreements and promises
set forth herein, it is agreed:
1. Rights Granted.
Manufacturer hereby grants to Distributor the non-exclusive right, on the terms and conditions
set forth herein, to purchase, own, inventory, promote and resell “Manufacturer’s Products” (as
defined below) and without a defined territorial area. Nothing herein shall prevent or prohibit
Manufacturer from selling any of Manufacturer’s Products to other distributors or directly to
customers.
2. Products.
The term “Manufacturer’s Products,” in this Agreement, shall mean the products, related service
parts and accessories manufactured and/or sold by Manufacturer in its published catalogs and
literature.
3. Terms of Sale.
All sales of Manufacturer’s Products to Distributor shall be made pursuant to this Agreement at
such prices and on such terms, as Manufacturer shall establish from time to time with at least
thirty (30) days written notice. All prices are FOB Manufacturer’s plant or warehouse location,
unless otherwise stated in this Agreement. Risk of loss due to damage or destruction of
Manufacturer’s Products shall be the responsibility of the Distributor after delivery to the carrier
for shipment. Manufacturer will select the shipper unless Distributor requests a reasonable
alternative. All orders are subject to acceptance by Manufacturer. Except as otherwise expressly
agreed by Manufacturer in advance, this Agreement shall control all aspects of the dealings
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between the parties with respect to the Manufacturer’s Products and any additional or different
terms in any Distributor order are hereby rejected unless the parties specifically agree to them in
advance of shipment and mutually sign another agreement to that effect.
4. Payment.
Unless acknowledged with prior written agreement between Distributor and Manufacturer, the
Distributor shall pay all charges due hereunder within thirty (30) days after the date of
Manufacturer’s invoice. Payment shall be made as shown on the invoice. Manufacturer may
impose a late payment charge of one percent (I.5%) per month on any overdue unpaid balances.
5. Marketing Policies.
Distributor will promote vigorously and effectively the sale of Manufacturer’s Products through
all channels of distribution, in conformity with Manufacturer’s established marketing policies and
programs. Distributor will use its best efforts to sell Manufacturer’s Products to aggressive,
reputable, and financially responsible dealers providing satisfactory consumer service
throughout Distributor’s primary marketing area. Distributor is authorized to enter into written
agreements with its dealers relating to the purchase, resale and service of Manufacturer’s
Products. The risk of collection from dealers, however, is entirely the risk undertaken by the
Distributor. The Distributor may not, under any circumstances, chargeback Manufacturer for
unpaid invoices by a dealer or dealers.
6. Distributor’s General Duties.
A. Distributor shall maintain a legal place of business, registered with local, state or country post
office and have a suitable showroom facility to display Manufacturer’s Products. Manufacturer,
may with written consent waive a showroom.
B. Distributor shall hire sales personnel or appoint representatives to introduce, promote,
market and sell Manufacturer’s Products. Distributor shall adequately train such personnel
and/or representatives. Distributor shall employ sufficient numbers of sales personnel and/or
representatives to market Manufacturer’s Products.
C. Distributor agrees not to engage in the distribution promotion, marketing or sale
of any goods or products that compete or conflict with Manufacturer’s Products. Distributor
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agrees to supply to Manufacturer a list of items handled by Distributor following Manufacturer’s
request to ensure that no conflict exists.
D. Distributor will make reasonable efforts to train, educate and otherwise provide reasonable
knowledge and informational assistance to its customers of the Manufacturers’ products.
7. Sales Policies.
A. Manufacturer may establish sales quotas, giving reasonable regard to past performance and
market potential of the manufacturer’s Products, from time to time. Distributor agrees to
employ sales personnel of demonstrated capacity to attain such quotas and consents to rewards
directly to such personnel by Manufacturer in recognition of superior performance.
B. Manufacturer will provide Distributor with merchandising assistance from time to time in the
form of advertising programs, product and sales training, and field sales assistance.
C. Distributor agrees to use such assistance in carrying out Manufacturer’s merchandising and
sales promotion policies.
8. Advertising Policies.
Manufacturer will cooperate with Distributor and its dealers in providing for continuous and
effective advertising and promotion of Manufacturer’s Products, and Distributor agrees at
Distributor’s expense to participate in, actively promote and faithfully comply with the terms and
conditions of such cooperative advertising and merchandising programs as Manufacturer may
establish and offer to Distributor from time to time.
9. Warranty Policies.
If any of Manufacturer’s Products are proven to Manufacturer’s satisfaction to have been
defective at time of sale to Distributor, Manufacturer will make an appropriate adjustment in the
original sales price of such product or, at Manufacturer’s election, replace the defective
product. Manufacturer shall provide to Distributor information with respect to Manufacturer’s
limited warranty extended to the original consumer of Manufacturer’s
Products. MANUFACTURER MAKES NO WARRANTY TO DISTRIBUTOR, OR ITS CUSTOMERS,
WITH RESPECT TO THE PRODUCTS, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
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10. Indemnification.
A. Manufacturer agrees to protect Distributor and hold Distributor harmless from any loss or
claim arising out of inherent defects in any of Manufacturer’s Products existing at the time such
product is sold by Manufacturer to Distributor, provided that Distributor gives Manufacturer
immediate notice of any such loss or claim and cooperates fully with Manufacturer in the
handling thereof.
B. Distributor agrees to protect Manufacturer and hold Manufacturer harmless from any loss or
claim arising out of the negligence of Distributor, Distributor’s agents, employees or
representatives in the installation, use, sale or servicing of Manufacturer’s Products or arising out
of any representation or warranty made by Distributor, its agents, employees or representations
with respect to Manufacturer’s Products that exceeds Manufacturer’s limited warranty. Further,
in the event that any of Distributor’s dealers shall, with respect to any of Manufacturer’s
Products purchased from Distributor, fail to discharge the dealer’s obligations to the original
consumer pursuant to the terms and conditions of Manufacturer’s product warranty and
consumer service policies, Distributor agrees to discharge promptly such unfulfilled obligations.
11. Order Processing and Returns.
A. Manufacturer will employ its best efforts to fill Distributor’s orders promptly on acceptance,
but reserves the right to allot available inventories among distributors and end user customers
at its discretion.
B. Except for Manufacturer’s products that are defective at the time of sale to Distributor,
Manufacturer shall not be obligated to accept any of Manufacturer’s Products that are
returned. In the event such returns are accepted, Manufacturer may impose a reasonable
restocking charge.
12. Financial Policies.
Distributor acknowledges the importance to Manufacturer of Distributor’s sound financial
operation and Distributor expressly agrees that it will:
A. Maintain and employ in connection with Distributor’s business and operations under this
Agreement such working capital and net worth as may be required to enable Distributor
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properly carry out and perform all of Distributor’s duties, obligations and responsibilities under
this Agreement;
B. Pay promptly all amounts due Manufacturer in accordance with terms of sale extended by
Manufacturer from time to time;
C. Furnish Manufacturer with financial statements in such form as Manufacturer may reasonably
require from time to time for credit purposes; and
D. Furnish, at Manufacturer’s request, a detailed reconciliation of Manufacturer’s statements of
account with Distributor’s records, listing all differences, and showing net amount Distributor
acknowledges to be due Manufacturer.
In addition to any other right or remedy to which Manufacturer may be entitled, shipments may
be suspended at Manufacturer’s discretion in the event that Distributor fails to promptly and
faithfully discharge each and every obligation in this Section.
13. Use of Manufacturer’s Name.
Distributor will not alter any identification of manufacturers’ trademarks and tradename label on
its products, use, authorize or permit the use of, the name or any other trademarks or trade
names owned by Manufacturer as part of its firm, corporate or business name in any
way. Distributor shall not contest the right of Manufacturer to exclusive use of any trademarks
or trade names used or claimed by Manufacturer. Distributor may, subject to Manufacturer’s
policies regarding reproduction of same, utilize Manufacturer’s name, trademarks and logos in
advertising, on stationery and business cards, or on its website.
14. Relationship of the Parties.
The relationship between Manufacturer and Distributor is that of vendor and
vendee. Distributor, its agents and employees shall, under no circumstances, be deemed
employees, agents or representatives of Manufacturer. Distributor will not modify any of
Manufacturer’s Products without written permission from Manufacturer. Neither Distributor nor
Manufacturer shall have any right to enter into any contract or commitment in the name of, or
on behalf of the other, or to bind the other in any respect whatsoever.
15. Term and Termination.
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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
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Manufacturer shall elect to repurchase, at a mutually agree price, but not in excess of
Manufacturer’s current price to distributors for such products and materials, provided that
Manufacturer shall not be obligated to pay Distributor for any item originally provided free of
charge;
C. Neither party shall be liable to the other because of such termination for compensation,
reimbursement or damages on account of the loss of prospective profits or anticipated sales, or
on account of expenditures, investments, lease or commitments in connection with the business
or goodwill of Manufacturer or Distributor or for any other reason whatsoever growing out of
such termination.
D. In sum, both parties acknowledge that termination of this Agreement at some point is highly
probable and should be treated in the ordinary course of business with both parties exerting
their best efforts to end the relationship amicably.
17. Notices.
Any notice required by this Agreement or given in connection with it, shall be in writing and
shall be given to the appropriate party by personal delivery or recognized overnight services
such as Federal Express.
If to Manufacturer:
Cleveland Reclaim Industries
7400 Industrial Parkway
Lorain, Ohio 44053
T: 440-282-8008
F: 440-282-8822
If to Distributor: (please provide address and contact numbers)
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18. No Waiver.
The waiver or failure of either party to exercise in any respect any right provided in this
agreement shall not be deemed a waiver of any other right or remedy to which the party may be
entitled.
19. Entirety of Agreement.
The terms and conditions set forth herein constitute the entire agreement between the parties
and supersede any communications or previous agreements with respect to the subject matter
of this Agreement. There are no written or oral understandings directly or indirectly related to
this Agreement that are not set forth herein. No change can be made to this Agreement other
than in writing and signed by both parties.
20. Governing Law.
This Agreement shall be construed and enforced according to the laws of the State of Ohio and
any dispute under this Agreement must be brought in this venue and no other.
21. Headings in this Agreement
The headings in this Agreement are for convenience only, confirm no rights or obligations in
either party, and do not alter any terms of this Agreement.
22. Severability.
If any term of this Agreement is held by a court of competent jurisdiction to be invalid or
unenforceable, then this Agreement, including all of the remaining terms, will remain in full force
and effect as if such invalid or unenforceable term had never been included.
In Witness whereof, the parties have executed this Agreement as of the date first written above.
______________________________ ______________________________
Authorized Signature Name: Authorized Signature Name:
Title: Title:
Date: Date:
Manufacturer Distributor