3-Draft Franchisee Agreement for Mfg & Mkt of Milk Products at Tirupathi

8/13/2019 3-Draft Franchisee Agreement for Mfg & Mkt of Milk Products at Tirupathi

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Andhra Pradesh Dairy Development Cooperative

Federation Limited (APDDCFL)

AGREEMENT FOR

SELECTION OF FRANCHISEE FOR

MANUFACTURING AND MARKETING OF

DAIRY PRODUCTS (FRESH)

UNDER VIJAYA BRAND

FOR TIRUPATHI REGION

PART II

DRAFT FRANCHISEE AGREEMENT


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DRAFT FRANCHISE AGREEMENT

This Franchise Agreement (this Agreement) is executed at [] this the [] day of ____, 21!

(Effective Date)"

BY AND BETWEEN

Andhra Pradeh Dair! Deve"#$ment C#%#$erative Federati#n &imited, a federation of coo#erati$e

societies registered under the Andhra %radesh &o'o#erati$e ocieties Act, 1*+, ha$ing its registered

office at [], and re#resented herein y its authorised signatory [] (hereinafter referred to as the

Franchi#r, -hich ex#ression sha.., un.ess re#ugnant to the meaning and context, mean and inc.ude

its successors'in'interest and assigns) of the 'NE PART

AND

[], a/an indi$idua./com#any/#artnershi# firm/so.e #ro#rietary concern (include as applicable), 0ndiancitien /registered under the &om#anies Act, 1*/registered under the 0ndian %artnershi# Act, 1!2

(include as applicable), residing at []/ha$ing its registered office at/carrying on usiness at (inc.ude as

a##.ica.e) [], re#resented through its director/ authoried signatory, ____________, son/-ife of

___________, aged aout ___________ years, (hereinafter referred to as Franchiee, -hich

ex#ression sha.. un.ess re#ugnant to the meaning and context, mean and inc.ude his/her/its successors'

in'interest and #ermitted assigns) of the 'THER PART

The Franchisor and the Franchisee are hereinafter together referred to as the Partie and indi$idua..y

as a Part!3

WHEREAS(

A3 The Franchisor, y an 4x#ression of 0nterest and 5id 6ocument dated 1!311321! (E'I), in$ited

ids from interested #arties for se.ection of franchisees for manufacturing and mar7eting of

8i.7 #roducts under the 90:A;A rand for sa.e in Tiru#athi region of Andhra %radesh

com#rising of &hittoor,


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53 The Franchisee is engaged in the usiness of manufacture and/or mar7eting of dairy #roducts

and has sumitted a id in res#onse to the 4>0, -hich -as successfu. and -as acce#ted y the

Franchisor3 The Franchisor has issued a ?etter of A-ard dated [] earing =umer [] to the

Franchisee in this regard3

&3 The %arties see7 to enter into this Agreement to confirm and record the terms and conditions

under -hich the Franchise (as defined hereunder) sha.. e granted to the Franchisee and

im#.emented y the Franchisee3

N'W THEREF'RE) IN C'NSIDERATI'N 'F THE M*T*A& PR'MISES) M*T*A& C'+ENANTS AND

AGREEMENTS SET F'RTH HEREIN) THE PARTIES HERET' AGREE AND THIS AGREEMENT WITNESSES AS

F'&&'WS(

,- DEFINITI'NS AND INTERPRETATI'NS

131 0n this Agreement, un.ess the context other-ise re@uires, the fo..o-ing ex#ressions sha.. ha$e

the meanings assigned to them e.o-"

(a) A$$"ica."e &a/ means any a##.ica.e 0ndian .a-, statute, ru.e, regu.ation, ordinance,

re@uirement, directions, guide.ines, announcement or other inding action or

re@uirement of any go$ernment de#artment, agency or instrumenta.ity of anygo$ernment thereof de#artments, odies, regu.atory authorities, go$ernment

authorities, any court or aritra. triuna.

() A$$r#va" mean #ermissions, consents, $a.idations, confirmations, .icenses, and other

authoriations re@uired to e otained y the Franchisee from go$ernment and/or

regu.atory authorities in order to (i) manufacture and mar7et the %roducts, (ii) esta.ish or

ex#and or o#erate the 8anufacturing %.ants, (iii) maintain .aour and staff at the

8anufacturing %.ants and for mar7eting of the %roducts and (i$) carry on a.. other

acti$ities necessary or incidenta. to the im#.ementation of the Franchise

(c) C#nfidentia" Inf#rmati#n sha.. ha$e the meaning assigned to the term in &.ause 13!3

(d) Ban0 G1arantee sha.. ha$e the meaning assigned to the term in &.ause 131 ()3

(e) B1ine Da! means any day (other than a aturday or unday) on -hich the an7s at

Byderaad are o#en for transaction of norma. usiness

(f) Dic"#ing Part! sha.. ha$e the meaning assigned to the term in &.ause 1313


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(g) Di$1te sha.. ha$e the meaning assigned to the term in &.ause 1+323

(h) E'I sha.. ha$e the meaning assigned to the term in Cecita. A ao$e

(i) Franchie means the .icense and authorisation gi$en y the Franchisor to the Franchisee

#ermitting the Franchisee to"

(1) manufacture the %roducts

(2) mar7et, se.. and distriute the %roducts -ithin the Territory

(!) use the Trademar7s, so.e.y in re.ation to the manufacture and mar7eting of the

%roducts3

during the Term, suDect to the terms and conditions contained in this Agreement3

(D) Franchie D#c1ment means this Agreement, the 4>0, the id tendered y the

Franchisee in res#onse to the 4>0, the Doint idding agreement dated [] executed

et-een the Franchisee and the .etter of a-ard issued y the Franchisor to the

Franchisee3

(7) Man1fact1ring P"ant means the dairy #roduct manufacturing #.ant or #.ants used y

the Franchisee for the #erformance of its o.igations under this Agreement

(.) Minim1m C#mmitment sha.. mean the minimum amount of re$enue re@uired to e

generated in any gi$en ca.endar month y sa.es of %roducts y the Franchisee, as

s#ecified in Anne21re%33

(m) Minim1m R#!a"t! sha.. mean the Coya.ty #aya.e y the Franchisee to the Franchisor

in a ca.endar month if the 8inimum &ommitment is achie$ed in that month3

(n) N#tice #f Di$1te sha.. ha$e the meaning assigned to the term in &.ause 1+32 (a)3

(o) Perf#rmance Sec1rit! sha.. ha$e the meaning assigned to the term in &.ause 1313

(#) Per#n means any #erson, cor#oration, #artnershi# (genera. or .imited), .imited .iai.ity

com#any, Doint $enture, association, co'o#erati$e federation, Doint stoc7 com#any, trust,

go$ernmenta. or any other statutory authority, or other usiness entity or organisation

(@) Pr#d1ct means the dairy #roducts .isted in Anne21re%4hereto

(r) R#!a"t! means the roya.ty #aya.e y the Franchisee to the Franchisor under this

Agreement in consideration of the grant of the Franchise, as more #articu.ar.y descried

under &.ause E and Anne21re%5


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(s) Term sha.. ha$e the meaning assigned to the term in &.ause 2323

(t) Territ#r! refers to the territory of the cities or regions s#ecified in Anne21re%,

hereto

(u) Trademar0 sha.. ha$e the meaning assigned to the term in &.ause +31 (a)3

132 0n this Agreement, un.ess the context other-ise re@uires, the fo..o-ing ru.es a##.y"

(a) The singu.ar inc.udes the #.ura. and vice versa3

() A gender inc.udes a.. genders3

(c) A reference to a c.ause, annexure or schedu.e is a reference to a c.ause of, or an annexure

or schedu.e to, this Agreement3

(d) The tit.es of the sections and susections of this Agreement are for con$enience of

reference on.y and are not to e considered in construing this Agreement3

4- APP'INTMENT AND TERM

231 The Franchisor herey grants the Franchise to the Franchisee -ith effect from the 4ffecti$e

6ate, suDect to the terms and conditions of this Agreement and other Franchise 6ocuments3

232 n.ess terminated ear.ier y either %arty in accordance -ith the terms of this Agreement, the

Franchise and this Agreement sha.. remain in force ti.. the ex#iry of a #eriod of ten (1) years

from the date of commencement of manufacture of %roducts y the Franchisee (the Term)3

23! The %arties may agree to extend and rene- the Term y mutua. consent ex#ressed in -riting at.east ninety () days #rior to the ex#iry of the Term, on terms and conditions as may e

mutua..y agreed to et-een the %arties3 =othing in this Agreement sha.. e construed as casting

any o.igation on the Franchisor to rene- the Term3

3- 'B&IGATI'NS 'F THE FRANCHISEE

!31 0n the e$ent the Franchisee re@uires to esta.ish a ne- 8anufacturing %.ant for the

#erformance of its o.igations under this Agreement, it sha.."


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(a) #rocure .and ade@uate for the 8anufacturing %.ant, either y outright #urchase or on

.ease for a #eriod of at .east ten (1) years from the 4ffecti$e 6ate, -ithin a #eriod of

three (!) months from the 4ffecti$e 6ate The .ease may e ta7en from time to time to

com#.ete 1 years3

() esta.ish and commission the 8anufacturing %.ant -ithin a #eriod of one (1) year from

the date that it #rocures the .and and

(c) carry out a tria. manufacturing run and commence commercia. #roduction of the %roducts

-ithin a #eriod of three (!) months from the date of commissioning of the 8anufacturing

%.ant3

!32 Genera. >.igations of the Franchisee"

(a) The Franchisee sha.. manufacture/#roduce and mar7et the %roducts strict.y in accordance

-ith the (a) tandard >#erating %rocedures and s#ecifications #ro$ided y the Franchisor

from time to time, and () #roduction and mar7eting schedu.es, set out in %art A and %art

5 res#ecti$e.y of Anne21re%3to this Agreement3

() The Franchisee sha.. use its est efforts to mar7et the %roducts in the Territory at its cost

and ex#ense3 The Franchisee sha.. se.. and mar7et the %roducts on.y -ithin the Territory

and sha.. ensure that the %roducts so.d or distriuted through its distriution net-or7 are#ro$ided on.y to consumers -ithin the Territory3 0n no e$ent sha.. the Franchisee

mar7et/se../transfer or other-ise send %roducts (a) outside the Territory to any

distriutors, -ho.esa.ers, stoc7ists, agents or re#resentati$es, or () -ith the 7no-.edge

that the %roducts -i.. e so.d/reso.d to end consumers outside the Territory3

(c) The Franchisee sha.. esta.ish a ne- 8anufacturing %.ant or dedicate s#are or excess

#roduction .ines in the 8anufacturing %.ants and/or ex#and its existing 8anufacturing

%.ants, as the case may e, in accordance -ith instructions #ro$ided y the Franchisor to

meet the #roduction and mar7eting re@uirements and schedu.es set out in Anne21re%33

The Franchisee sha.. e res#onsi.e for a.. in$estments, costs and ex#enses, inc.uding

o#erating ex#enses, incurred in this regard and sha.. o#erate the 8anufacturing %.ants in

accordance -ith s#ecifications #ro$ided y the Franchisor from time to time3 Any

ex#ansion of the FranchiseeHs existing 8anufacturing %.ant that is re@uired for the

Franchisee to #erform its o.igations under this Agreement sha.. e com#.eted such that

the 8anufacturing %.ant is ready to commence o#erations -ithin a #eriod of six (*)

months from the 4ffecti$e 6ate3

(d) The Franchisee sha.. com#.y -ith and ensure com#.iance -ith a.. A##.ica.e ?a-s in re.ation

to this Franchise3 The Franchisee sha.. e res#onsi.e for otaining and maintaining, at its

cost, a.. necessary A##ro$a.s in this regard3


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(e) The Franchisee sha.. em#.oy an ade@uate numer of em#.oyees and staff to manufacture

and mar7et the %roducts in an efficient manner3 The Franchisee -i.. a.one e res#onsi.e

for #ayment of sa.aries, enefits and incenti$es to its em#.oyees and staff3

(f) The Franchisee sha.. #ay Coya.ty to the Franchisor in accordance -ith this Agreement, and

s#ecifica..y Anne21re%5hereto3

(g) 0n the e$ent the Franchisee is a consortium of entities, each entity forming #art of such

consortium sha.. e Doint.y and se$era..y res#onsi.e and .ia.e to fu.fi.. the o.igations of

the Franchisee under this Agreement3

!3! Jua.ity &ontro."

(a) The Franchisee sha.. ensure that ra- materia.s #rocured y it meet @ua.ity s#ecifications

#ro$ided y Franchisor from time to time3 The Franchisee sha.. a.one e res#onsi.e for

the @ua.ity of such ra- materia.s and ac7no-.edges that the Franchisee -i.. a.one e

.ia.e to consumers under A##.ica.e ?a-s inc.uding #re$ention of food adu.teration .a-s

or ru.es in a.. regions of the Territory3

() The Franchisee sha.. maintain @ua.ity standards of the finished %roducts in accordance

-ith A##.ica.e ?a-s inc.uding the %re$ention of Food Adu.teration Act 1+, the 8i.7 and

8i.7 %roduct >rder 12 issued under the 4ssentia. &ommodities Act, 1, the ?ega.

8etro.ogy Act, 2 and a##.ica.e ru.es #assed under the tandards of Keights and

8easures Act, 1I*3

(c) The Franchisee sha.. on or efore a #eriod of [] from the 4ffecti$e 6ate, otain

certifications in the form of 0>'1 and 0'1 certificates in res#ect of its usiness

and the 8anufacturing %.ants3 The Franchisee sha.. -ithin such date a.so otain a Baard

Ana.ysis and &ritica. &ontro. %oints certificate from the 5ureau of 0ndian tandards3 The

Franchisee sha.. a.so otain FA0 &ertificate

(d) The Franchisee sha.., in addition, com#.y -ith tandard >#erating %rocedures as set out in

%art A of Anne21re%3, and a.so -ith other o#erating and manufacturing standards as maye intimated to it y the Franchisor from time to time3

(e) The Franchisee sha.. maintain insurance #o.icies as may e directed y the Franchisor, $a.id

throughout the Term, such as -or7menHs com#ensation insurance and com#rehensi$e third

#arty .iai.ity insurance, in such amounts as the Franchisor may direct3


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5- 'B&IGATI'NS 'F THE FRANCHIS'R

+31 The Franchisor sha.. #erform the fo..o-ing o.igations under this Agreement"

(a) The Franchisor herey grants the Franchisee the Franchise, i.e., a .icense to manufacture

and mar7et the %roducts, on.y under the rand name 90:A;A and other rand names as

may e intimated y the Franchisor to the Franchisee from time to time (together the

Trademar0) in the Territory in accordance -ith this Agreement3

() The Franchisor may from time to time #ro$ide the Franchisee -ith o#erationa. and other

guide.ines for the im#.ementation of the Franchise3 The Franchisor may a.so #ro$ide

technica. su##ort and co'o#eration to the Franchisee for customiation, or ex#ansion of

the 8anufacturing %.ants and im#.ementation of the Franchise3

(c) The Franchisor may #ro$ide training to the staff and em#.oyees of the Franchisee in

res#ect of manufacturing #rocesses, @ua.ity contro. and mar7eting of the %roducts3 The

Franchisor may a##oint @ua.ity contro. #ersonne. -ho sha.. #eriodica..y ins#ect and

a##ro$e ra- materia.s used y the Franchisee, e@ui#ment and #rocesses at the

8anufacturing %.ants, @ua.ity of the finished %roducts and #ac7aging of the %roducts3

(d) The Franchisor sha.., at its discretion, carry out regu.ar mar7eting and usiness #romotion

acti$ities for the %roducts and the Trademar7s, in the Territory3

6- WARRANTIES

31 The Franchisee -arrants that"

(a) it o-ns or has a right to use the 8anufacturing %.ants, sha.. continue to o-n or ha$e the

right to use the 8anufacturing %.ans throughout the Term and sha.. not esta.ish

additiona. 8anufacturing %.ants or c.ose do-n any existing 8anufacturing %.ant -ithout

the #rior -ritten consent of the Franchisor and the .and used for its 8anufacturing %.ants

is not suDect to any contractua., statutory or regu.atory conditions that may affect the

FranchiseeHs ai.ity to use such .and for the 8anufacturing %.ants

() it has and -i.. continue to ha$e the financia. and infrastructura. ca#ai.ity to manufacture

%roducts in a numer necessary to achie$e the 8inimum &ommitment for e$ery month

during the Term and sha.. maintain the 8anufacturing %.ants in good condition

throughout the Term

(c) it sha.. #ro$ide the Franchisor -ith detai.s of its distriution net-or7, inc.uding names and

addresses of its distriutors, and sha.. ensure that its distriution net-or7 is acce#ta.e to


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the Franchisor, efore commencement of manufacture of the %roducts and sha.. inform

the Franchisor #rior to a##ointing any ne- distriutors or terminating the ser$ices of any

distriutor

(d) a.. of its re#resentations and -arranties in res#ect of its e.igii.ity criteria made at the

time of its id #ursuant to the 4>0 remain true and in fu.. force and effect

(e) it sha.. carry out its o.igations under this Agreement in accordance -ith good industry

#ractice and in the est interests of the Franchisor and sha.. -or7 di.igent.y to #romote

the %roducts

(f) the execution, de.i$ery and #erformance of this Agreement has een du.y authoried y

a.. re@uisite [cor#orate] action on its #art and -i.. not $io.ate any #ro$ision of anyA##.ica.e ?a-s, or $io.ate any #ro$ision of its constituti$e documents or any indenture,

agreement or instrument to -hich it is a #arty or y -hich it or its #ro#erty may e ound

or affected and this Agreement constitutes the .ega., $a.id and inding o.igations of the

Franchisee, enforcea.e in accordance -ith its terms

(g) exce#t as other-ise disc.osed in -riting to the Franchisor, it is not a #arty to any

agreement, or any .ega., administrati$e or aritra. #roceeding or in$estigation, #ending or

threatened, -hich -ou.d ad$erse.y affect its ai.ity to #erform its o.igations under this

Agreement

(h) it is the ho.der of, or -i.. otain efore commencement of its o.igations hereunder, a..

re@uired A##ro$a.s and -i.. continue to $a.id.y ho.d such A##ro$a.s ti.. the end of the

Term3

32 The Franchisor -arrants that"

(a) it o-ns or has a right to use a.. inte..ectua. #ro#erty rights in the Trade 8ar7s

() the execution, de.i$ery and #erformance of this Agreement has een du.y authoried y

a.. re@uisite action on its #art and -i.. not $io.ate any #ro$ision of any A##.ica.e ?a-s, or

$io.ate any #ro$ision of its constituti$e documents or any indenture, agreement orinstrument to -hich it is a #arty or y -hich it or its #ro#erty may e ound or affected

and this Agreement constitutes the .ega., $a.id and inding o.igations of the Franchisee,

enforcea.e in accordance -ith its terms3

7- PR'D*CTS

*31 The %roducts that are the suDect matter of the Franchise under this Agreement are .isted in

Anne21re%43


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*32 The Franchisor may from time to time add ne- %roducts to Anne21re%4in consu.tation -ith the

Franchisee3

8- PR'D*CTI'N AND MAR9ETING

I31 The Franchisee sha.. im#.ement the Franchise in accordance -ith the mar7eting and #roduction

schedu.es set out in Anne21re%33

I32 The Franchisee sha.. ensure that it achie$es the 8inimum &ommitment in e$ery ca.endar month

during the Term3 The Franchisee sha.. e .ia.e to #ay extra Coya.ty in the e$ent the 8inimum

&ommitment is not fu.fi..ed in any month and sha.. e entit.ed to incenti$es u#on attaining

s#ecified target .e$e.s of sa.es, as more #articu.ar.y descried in Anne21re%33 The 8inimum

&ommitment may e amended y agreement of the %arties3

I3! The Franchisor sha.. e entit.ed to direct the Franchisee to ma7e changes to its infrastructure or

the .ayout, #rocesses or e@ui#ment of any 8anufacturing %.ant or to its distriution and

mar7eting system and the Franchisee sha.. com#.y -ith such directions3

:- R'YA&TY

E31 0n consideration of the Franchise granted to it, the Franchisee sha.. #ay the Franchisor, Coya.ty

as fo..o-s"

(a) The Franchisee sha.., during the Term, #ay the Franchisor the Coya.ty, ca.cu.ated on the

asis of the formu.a set out in Anne21re%33 The Coya.ty sha.. e #aya.e on a month.y

asis for each ca.endar month during the Term, and sha.. e #aid on or efore the []

5usiness 6ay of the next ca.endar month3

() An amount of one #ercent (1L) of the re$enue generated from the 8inimum

&ommitment M sha.. e deducted from the month.y Coya.ty #ayments made y the

Franchisee and sha.. e de#osited y the Franchisee in a se#arate an7 account to eo#ened Doint.y y the #arties -ithin se$en (I) days of the 4ffecti$e 6ate3 The amounts

de#osited in such account sha.. e uti.ied y the Franchisee so.e.y for mar7eting and

usiness #romotion acti$ities as may e mutua..y agreed et-een the #arties3 5oth

#arties may incur ex#enses to-ards mar7eting and usiness #romotion acti$ities -hich

sha.. e #re'agreed annua..y under annua. mar7eting udget3 4ach #arty sha.. e entit.ed

to -ithdra- amounts from the ao$e mentioned an7 account as reimursement of such

ex#enses, e$ery (#eriod) after sumission of #roof of monies s#ent under a##ro$ed

udget heads to the other %arty3


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;- TRADEMAR9S) AD+ERTISING) PAC9AGING AND &ABE&&ING 'F PR'D*CTS

31 Good-i.. and >-nershi# in Trademar7s

(a) The Franchisee herey agrees that it sha.. use the Trademar7s on.y for the #ur#ose of

manufacture and mar7eting of the %roducts under this Agreement and strict.y in

accordance -ith the s#ecifications and instructions of the Franchisor3

() Any unauthoried use of the Trademar7s y the Franchisee or any #erson acting on its

eha.f sha.. constitute a reach of this Agreement and an infringement of the Trademar7s3

(c) The Franchisee herey ac7no-.edges and agrees that a.. use of the Trademar7s and any

good-i.. esta.ished y its use of the Trademar7s -i.. inure to the exc.usi$e enefit of theFranchisor, and that this Agreement does not confer any good-i.. or other interests in the

Trademar7s u#on either the Franchisee or any of its em#.oyees, re#resentati$es or any

#erson acting on its eha.f3

32 ?imitations on se of Trademar7s

(a) The Franchisee agrees and underta7es to use the Trademar7s as the so.e identification

mar7 on the %roducts and sha.. ensure that a.. %roducts carry the Trademar7s assigned to

them y the Franchisor3 The Franchisee sha.. at a.. times identify itse.f as an inde#endent

manufacturer and mar7eter of the %roduct under .icense from the Franchisor3

() The Franchisee agrees and underta7es not to use the Trademar7s as #art of any cor#orate

or trade name or -ith any #refix, suffix or other modifying -ords, terms, designs or

symo.s (other than .ogos and additiona. ser$ice mar7s that may e authoried y the

Franchisor), or in any modified form3 The Franchisee sha.. use the Trademar7s on.y in

re.ation to the %roducts and sha.. not use any Trademar7 in connection -ith the

#erformance or sa.e of any ser$ices or #roducts that are outside the sco#e of this

Agreement or in any manner -hich fa..ing outside the amit of the rights granted under

this Agreement3

(c) The Franchisee sha.. not e #ermitted to use the Trademar7s in its contracts or

a##.ications for any A##ro$a.s or any other documentation (other than on the #ac7aging

or ad$ertisements of the %roducts), or in any manner that may im#.y that the Franchisor is

res#onsi.e for any of o.igations under such contracts or a##.ications or other

documents3

(d) The Franchisee sha.. ensure that its use of the Trademar7s is accom#anied y such notices

of trade and ser$ice mar7 registrations as the Franchisor may s#ecify3 The Franchisee sha..

adhere to a.. guide.ines or instructions of the Franchisor in re.ation to the use of the

Trademar7s3


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(e) The Franchisee sha.. not #ermit any other %erson to use the Trademar7s or su'.icense the

use of the Trademar7s in any manner3

3! =otification of 0nfringement of Trademar7s

(a) The Franchisee agrees that it sha.. not commit or #ermit the commission of any

infringement of any Trademar73 The Franchisee sha.. notify the Franchisor immediate.y

u#on coming to 7no- of any use of the Trademar7s y any other %erson or of any

a##arent infringement of or cha..enge to the use of a Trademar7, or any c.aim y any

%erson of any rights in any Trademar73

() The Franchisor sha.. ta7e such action as it deems fit and at its discretion in connection

-ith any infringement, cha..enge or c.aim, of or to a Trademar7 and sha.. a.one ha$e theright to #roceed -ith such action and sha.. exc.usi$e.y contro. any .itigation, com#romise

or sett.ement arising out of any a..eged infringement, cha..enge or c.aim of or to a

Trademar7 or other-ise re.ating to any Trademar73

(c) The Franchisee sha.. co'o#erate -ith the Franchisor to arrest and mitigate any damage or

.oss that may e caused to the Franchisor as a resu.t of any infringement, cha..enge or

c.aim of or to a Trademar73

3+ 6iscontinuance of se of Trademar7s

(a) 0n the e$ent the Franchisor is of the o#inion, at its so.e discretion, that it -ou.d e

ad$isa.e to re$ise, modify or discontinue use of any Trademar7 and/or for the %roduct to

e randed -ith any a.ternate, additiona. or sustitute trade or ser$ice mar7s, the

Franchisee sha.. com#.y -ith the FranchisorHs directions to re$ise, modify or other-ise

discontinue the use of such Trademar7 and/or use any a.ternate, additiona. or sustitute

trade or ser$ice mar7s3

3 Ad$ertising

(a) The Franchisee sha.. ad$ertise the sa.e of the %roducts at its cost, inde#endent of theFranchisor3 The Franchisee sha.. at its o-n cost, com#.y -ith reasona.e directions gi$en

y the Franchisor -ith regard to ad$ertisements of the %roducts y the Franchisee from

time to time3 The Franchisee sha.. a.so co'o#erate -ith Franchisor and #artici#ate in

ad$ertising cam#aigns instituted y the Franchisor3 For the sa7e of c.arity, it is herey

confirmed that the Franchisor sha.. e the o-ner of a.. good-i.. generated in res#ect of

the Trademar7s #ursuant to such ad$ertisements3

() The Franchisee sha.. e res#onsi.e for com#.ying -ith A##.ica.e ?a-s and otaining a..

necessary A##ro$a.s -ith regard to ad$ertisement of %roducts3


13/26

1!

(c) A.. ad$ertising cam#aigns or #rocesses instituted y the Franchisee sha.. e suDect to the

#rior -ritten a##ro$a. of the Franchisor3 The Franchisor may y -ritten notice to the

Franchisee instruct the Franchisee to cease any s#ecific ad$ertisement or mode of

ad$ertisement or ma7e changes to ad$ertisements issued y the Franchisee, a.. at the

FranchiseeHs cost3

3* %ac7aging and ?ae..ing

(a) The Franchisor sha.. #ro$ide directions and instructions to the Franchisee in res#ect of

.ae.ing, #ac7aging and #resentation of a.. %roducts3 The Franchisee sha.. ensure that

.ae.ing, #ac7aging and #resentation of a.. %roducts manufactured and distriuted,

inc.uding de#ictions of the Trademar7s, sha.. e strict.y in accordance -ith the

FranchisorHs instructions in this regard3 0n the e$ent the Franchisee -ishes to use any

different #ac7aging or .ae.ing or #resentation, it sha.. #ro$ide detai.s of such .ae.s and

#ac7ages or containers and #resentations to the Franchisor and use such .ae.s, #ac7ages

and containers and #resentations on.y after otaining the FranchisorHs consent in -riting3

() The Franchisee sha.. instruct a.. memers of its distriution and su##.y chain that the

#ac7aging and .ae.ing of the %roducts sha.. not e a.tered in any manner -hatsoe$er, in

res#ect of a##earance or #resentation, materia.s or manner of use3 The Franchisee sha..

e .ia.e for any actions of its distriutors, -ho.esa.ers, stoc7ists, agents or

re#resentati$es that resu.t in any a.teration to the a##earance, materia.s or use of .ae.s

or #ac7ages a##ro$ed y the Franchisor for use -ith the %roducts and such actions y the

Franchisee or its distriutors, -ho.esa.ers, stoc7ists, agents or re#resentati$es sha..

amount to a reach of this Agreement3

,


14/26

1+

#er the .atest annua. re#ort of the an73 The 5an7 Guarantee sha.. remain $a.id from the

date of sumission ti.. the end of a #eriod of at .east t-o (2) months after the ex#iry of the

Term3

(c) 0f the %erformance ecurity is to e #aid in stages as descried in &.ause 13+ () or &.ause

13+ (c), su'c.auses (a) and () of this &.ause 131 sha.. a##.y to each stage of the

%erformance ecurity3

132 The Franchisor may encash the 5an7 Guarantee in -ho.e or in #art in the e$ent of a reach y

the Franchisee of its -arranties or o.igations under this Agreement or in the e$ent any amount

#aya.e y the Franchisee to the Franchisor remains o$er due for more than [] days3 0n the

e$ent of #artia. encashment of the 5an7 Guarantee, the Franchisee sha.. re#.enish the 5an7

Guarantee to the origina. amount of Cu#ees [] (Cs3 _________/')3

13! The format of the 5an7 Guarantee is #ro$ided in Anne21re%6hereto3

13+ The %erformance ecurity amount sha.. e ca.cu.ated in the fo..o-ing manner"

(a) 0f the Franchisee has one or more 8anufacturing %.ants in o#eration as on the 4ffecti$e

6ate that do not re@uire ex#ansion or augmentation, the %erformance ecurity amount

sha.. e e@ua. to three (!) times the 8inimum Coya.ty3 The %erformance ecurity sha.. e

#aid on or -ithin one (1) 5usiness 6ay of the 4ffecti$e 6ate3

() 0f the Franchisee re@uires to augment or ex#and its 8anufacturing %.ant to commence

o#erations under the Franchise, the %erformance ecurity amount sha.. e e@ua. to nine

() times the 8inimum Coya.ty3 T-o'thirds of the %erformance ecurity sha.. e #aid on or

-ithin one (1) 5usiness 6ay of the 4ffecti$e 6ate and the a.ance one'third amount sha..

e #aid on the date that the 8anufacturing %.ant commences commercia. o#eration3

(c) 0f the Franchisee re@uires to esta.ish a ne- 8anufacturing %.ant to commence

o#erations under the Franchise, the %erformance ecurity amount sha.. e e@ua. to

eighteen (1E) times the 8inimum Coya.ty3 >ne'ha.f of the %erformance ecurity sha.. e

#aid on or -ithin one (1) 5usiness 6ay of the 4ffecti$e 6ate3 >ne'third of the %erformance

ecurity sha.. e #aid on or efore the day that the Franchisee confirms in -riting to theFranchisor that it has #urchased or .eased .and for the esta.ishment of a 8anufacturing

%.ant3 The a.ance one'sixth of the %erformance ecurity sha.. e #aid on or efore the

date that the 8anufacturing %.ant commences commercia. o#eration3

,,- INDEMNITY

1131 The Franchisee sha.. indemnify, defend and ho.d harm.ess the Franchisor and the FranchisorHs

officers, em#.oyees and re#resentati$es from and against a.. .iai.ities, .osses, damages, costs

and ex#enses in re.ation to or arising out of"


15/26

1

(a) any c.aims or actions rought in res#ect of the %roducts manufactured and/or mar7eted

y the Franchisee, on any ground inc.uding on the asis of adu.teration of the %roducts

() any c.aims or actions or #roceedings instituted y any go$ernmenta. or regu.atory or

Dudicia. ody as a resu.t of the FranchiseeHs fai.ure to com#.y -ith A##.ica.e ?a-s

inc.uding the fai.ure to otain or com#.y -ith the terms of, any A##ro$a.s

(c) any use of the Trademar7s that is not in accordance -ith this Agreement, inc.uding c.aims

of inte..ectua. #ro#erty rights infringement instituted y a third #arty as a resu.t of such

use

(d) any use of #ac7ages, .ae.s or containers that ha$e not een a##ro$ed or #ermitted y

the Franchisor, inc.uding c.aims of inte..ectua. #ro#erty rights infringement instituted y athird #arty as a resu.t of such use

(e) any reach of any #ro$ision of any Franchise 6ocument (inc.uding reach of any

re#resentation or -arranty) y the Franchisee3

(f) Any c.aim or action of any third #arty inc.uding on account of any reach committed y

the Franchisee or any misre#resentation y the Franchisee to any third #arty or

(g) Anything done or omitted to e done through the neg.igence, defau.t or misconduct of

the Franchisee or of its officers, directors, em#.oyees or agents3

1132 The Franchisee sha.. not com#romise or sett.e any c.aim or ma7e any admission fixing .iai.ity

on the Franchisor -ithout the consent of the Franchisor3

113! The Franchisee herey agrees that in res#ect of a.. matters for -hich it has agreed to #ro$ide

indemnity to the Franchisor under this Agreement, in case any actions, #roceedings,

#rosecutions or c.aims arise or are made against the Franchisor, the Franchisee sha.., forth-ith

u#on notification thereof, im#.ead itse.f in such action, #roceeding, #rosecution or c.aim as the

case may e, and if such action, #roceeding, #rosecution or c.aim resu.ts in any .iai.ity,

damage, demand, ex#ense or attachment, the Franchisee sha.. direct.y and so.e.y e .ia.e forthe same in the same manner as the Franchisor -ou.d ha$e een .ia.e in the asence of the

indemnities set out hereunder3

4- A*DIT

1231 The Franchisee sha.. #ro$ide month.y re#orts to the Franchisor e$ery ca.endar month in

res#ect of the manufacturing and mar7eting of the %roducts carried on y it3 uch re#ort sha..

e in a form #rescried y the Franchisor and sha.. contain at the .east, the fo..o-ing

information"


16/26

1*

(a) 6etai.s of the numer of %roducts (in a##ro#riate units) in each category manufactured

during the month

() 6etai.s of the numer of %roducts (in a##ro#riate units) in each category so.d or

distriuted during the month

(c) 6etai.s of the numer of %roducts (in a##ro#riate units) so.d or distriuted in each

region of the Territory during the month inc.uding in such su'di$isions of each region

as the Franchisor may re@uest information on

(d) =ames and addresses of a.. distriutors, -ho.esa.ers, stoc7ists, agents, re#resentati$es

and entities used y the Franchisee to se.., distriute, mar7et or ad$ertise the %roducts,

in each region com#rising the Territory3

1232 The Franchisor sha.. e entit.ed to audit a.. records and oo7s of account of the Franchisee for

the #ur#ose of ensuring its com#.iance -ith the terms of this Agreement and to reconci.e the

records -ith the month.y re#orts referred to ao$e3 The Franchisor may a.so audit or ins#ect

the o#erations of the 8anufacturing %.ants3 0n addition, the Franchisor sha.. e entit.ed to

conducting #eriodic re$ie-s of the im#.ementation of the Franchise and recommend usiness

#romotion #.ans and mar7eting strategies to the Franchisee3

123! The Franchisor may carry out such audit y itse.f or through an inde#endent auditor once

e$ery six (*) months from the 4ffecti$e 6ate3 uch audits sha.. occur -ith reasona.e notice

and during norma. usiness hours3 uch audits sha.. e at the ex#ense of the Franchisee,

un.ess such audit determines a discre#ancy of [] #ercent (''L) or more in the re#orted

manufacture and sa.es figures of the Franchisee, resu.ting in an under#ayment to the

Franchisor, in -hich case the Franchisee sha.. ear a.. costs of the audit, inc.uding the fees of

third #arty auditors, and immediate.y #ay to the Franchisor the sum of the discre#ancy

identified y the audit3

123+ The Franchisor sha.. e entit.ed to set off any sums o-ed y it to the Franchisee against any

sums #aya.e y it to the Franchisee3

,3- TERMINATI'N 'F THE FRANCHISE

1!31 4ither %arty may terminate this Agreement y -ritten notice immediate.y u#on the occurrence

of the fo..o-ing e$ents"

(a) 0n the e$ent of an e$ent of force maDeure (as descried under &.ause 1E) -hich #re$ents a

%arty from #erforming is o.igations under this Agreement for a continuous #eriod of

ninety () 5usiness 6ays or more, or


17/26

1I

() 0f the other %arty undergoes any manner of recei$ershi# or .i@uidation other than as a

resu.t of a bona fide restructuring of its usiness that does not cast any significant

.iai.ities on that %arty, ecomes inso.$ent or enters into any com#romise or sett.ement

-ith its creditors or ceases or threatens to cease to carry on its usiness3

1!32 The Franchisor may terminate this Agreement y -ritten notice immediate.y u#on the

occurrence of any of the fo..o-ing e$ents"

(a) 0f the Franchisee is in reach of its o.igations, re#resentations or -arranties under any

Franchise 6ocument and fai.s to remedy such reach -ithin thirty (!) days of its recei#t

of notice in this eha.f from the Franchisor

() 0n the e$ent of change in contro. or o-nershi# of the Franchisee -ithout the #rior -ritten

consent of the Franchisor

(c) 0f the Franchisee is in$o.$ed in any conduct or #erforms any act -hich may, in the so.e

o#inion of the Franchisor, ad$erse.y affect the re#utation or good-i.. of the Franchisor, its

distriution net-or7, or of any of its affi.iates or usiness associates or may ex#ose the

Franchisor to any form of #ena. action or .itigation or simi.ar #roceedings

(d) 0f the Franchisee assigns or su'.icenses or transfers or attem#ts to assign, su'.icense or

transfer any of its rights and/or o.igations under this Agreement -ithout the #rior

-ritten consent of the Franchisor or commits any other reach of this Agreement that is

not ca#a.e of cure -ithin a #eriod of thirty (!) days

(e) 0f the Franchisee fai.s to achie$e the 8inimum &ommitment for a #eriod of more than []

months during the Term

(f) 0f the Franchisee fai.s to commence manufacture of the %roducts -ithin the #eriods set

out in &.auses !31 (c) or !32 (c) as a##.ica.e, and in the e$ent the 8anufacturing %.ant is

a.ready in existence as on the 4ffecti$e 6ate and does not need augmentation or

ex#ansion, -ithin a #eriod of not more than ninety () days from the 4ffecti$e 6ate3

1!3! 4x#.anation" 0n the e$ent the Franchisee is a consortium of entities, any e$ent as descried

ao$e under &.auses 1!31 and 1!32 affecting any entity forming #art of such consortium sha..

gi$e a right of termination to the Franchisor under &.ause 1!31 or &.ause 1!32 as the case may

e3

1!3+ The Franchisee may terminate this Agreement y gi$ing at .east ninety () days notice to the

Franchisor in the e$ent the Franchisor commits a materia. reach of this Agreement and fai.s to

cure such reach -ithin a #eriod of sixty (*) days from the date of recei#t of a notice from the

Franchisee re@uesting such cure3


18/26

1E

1!3 &onse@uences of Termination"

(a) #on ex#iry of the Term or termination of this Agreement for any reason, the Franchisee

sha.."

(a) immediate.y cease manufacture and sa.e of the %roducts and cease re#resenting or

ho.ding itse.f out as a franchisee in res#ect of the %roducts in any manner

() immediate.y discontinue use of a.. Trademar7s and of any materia.s, #ac7ages or

.ae.s earing a Trademar7 or other-ise indicati$e of any association -ith the

Franchisor

(c) return immediate.y to the Franchisor, at the FranchiseeHs ex#ense, a.. signs, dis#.ay

or ad$ertising or #romotiona. items and any training materia.s or other materia.s

used in connection -ith the o#eration of the Franchise #ro$ided to it y the

Franchisor

(d) #ay to the Franchisor forth-ith (-ithout any deduction or right of set'off) a.. Coya.ty

or other sums of money -hich may e o-ed to the Franchisor (-hether or not then

due)3

() A.. o.igations and .iai.ities of a %arty that accrue or arise #rior to the ex#iry of the Term

or the date of termination of this Agreement sha.. continue unaffected3

(c) The Franchisor sha.. ha$e the o#tion, ut not the o.igation, u#on ex#iry of the Term or

termination of the Agreement, to #urchase a.. %roducts in stoc7 -ith the Franchisee

inc.uding .ae.s, #ac7ages and containers, at a #rice that is to e mutua..y agreed u#on

et-een the %arties3 0n the e$ent the Franchisor does not exercise this o#tion, the

Franchisee may continue sa.e of %roducts ti.. its stoc7 of %roducts existing as on the

effecti$e date of termination is dis#osed off and the terms of this Agreement sha.. a##.y

to such sa.es3

,5- G'+ERNING &AW AND ARBITRATI'N

1+31 This Agreement sha.. e go$erned y the .a-s of 0ndia3

1+32 0n the e$ent of any dis#ute, contro$ersy or c.aim arising out of or re.ating to this Agreement, or

the reach, termination or $a.idity thereof (Di$1te), the fo..o-ing actions sha.. e ta7en"

(a) A 6is#ute -i.. e deemed to ha$e arisen -hen one %arty ser$es on the other %arty a

notice stating the nature of the 6is#ute (a N#tice #f Di$1te)


19/26

1

() #on ser$ice of a =otice of 6is#ute u#on a %arty, the %arties -i.. use reasona.e efforts to

reso.$e the 6is#ute through negotiations

(c) 0n the e$ent the %arties are una.e to reso.$e a 6is#ute through negotiations -ithin thirty

(!) 5usiness 6ays of ser$ice of a =otice of 6is#ute, the %arties sha.. refer the 6is#ute to

aritration

(d) The aritration #roceedings sha.. e conducted in the 4ng.ish .anguage and in accordance

-ith the #ro$isions of the Aritration and &onci.iation Act, 1*, as may e amended from

time to time3 The $enue of aritration sha.. e Byderaad, 0ndia3 The aritra. triuna. sha..

consist of a sing.e aritrator -ho sha.. e mutua..y agreed u#on y the %arties3 0n the

e$ent the %arties fai. to agree u#on a sing.e aritrator, the aritra. triuna. sha.. consist of

three aritrators3 4ach %arty sha.. nominate an aritrator and the t-o aritrators so

nominated sha.. a##oint a third aritrator, -ho sha.. e the chair#erson of the triuna.

and

(e) The decision of the aritra. triuna. sha.. e inding u#on the %arties and may e enforced

in any court of com#etent Durisdiction3

1+3! uDect to &.ause 1+32 ao$e, the courts at Byderaad sha.. ha$e exc.usi$e Durisdiction in res#ect

of a.. 6is#utes3

,6- N'N%C'MPETE AND N'N%S'&ICITATI'N

131 6uring the Term, the Franchisee sha.. not manufacture, se.., mar7et or distriute #roducts that

are the same as any of the %roducts that are or ecome the suDect of the Franchise on its o-n

eha.f or on eha.f of anyone other than the Franchisor or as a franchisee for any entity other

than the Franchisor3

132 =othing in this Agreement sha.. e construed as restricting or .imiting the FranchisorHs right to

a##oint other franchisees, distriutors, sucontractors or agents in res#ect of the manufacture,

sa.e and distriution of the %roducts or #roducts simi.ar to the %roducts, in the Territory or

outside the Territory3

13! The Franchisee ac7no-.edges that the FranchisorHs em#.oyees and agents are $a.ua.e

resources of the Franchisor and that the Franchisor has in$ested sustantia. time and ex#ense in

training its em#.oyees and agents3 6uring the Term, inc.uding any extensions thereof and for a

#eriod of t-o years thereafter, the Franchisee sha.. not contact or so.icit any em#.oyee or agent

of the Franchisor in any manner -ith a $ie- to encouraging that em#.oyee or agent to

terminate his em#.oyment or agency -ith the Franchisor or to reach that em#.oyeeHs or

agentHs agreement -ith or o.igations to the Franchisor and sha.. not offer em#.oyment to any

em#.oyees or agents of the Franchisor3


20/26

2

,7- &IMITATI'N 'F &IABI&ITY

1*31 0n no e$ent (inc.uding as a resu.t of ex#iry of the Term, termination of the Agreement orrefusa. y the Franchisor to rene- the Term) sha.. the Franchisor e .ia.e to the Franchisee

for any indirect, conse@uentia. or s#ecia. damages under this Agreement or for any .oss of

usiness or #rofits, .oss of re$enue, .oss of o##ortunity or .oss of good-i..3 The FranchisorHs

aggregate .iai.ity to the Franchisee under this Agreement sha.. not exceed an amount e@ua. to

three times the 8inimum Coya.ty3

1*32 The Franchisor sha.. e entit.ed to encash, in #art or fu.., any of the 5an7 Guarantees gi$en as

#art of the %erformance ecurity, in the e$ent of any materia. reach of this Agreement y the

Franchisee or in order to reco$er any sums due from the Franchisee3

,8- N'TICES

1I31 Any notice re@uired to e gi$en under this Agreement sha.. e in -riting and addressed in the

case of each %arty, to the addresses set out e.o-"

Franchisor" []

Franchisee" []

1I32 =otices and communications sha.. e considered gi$en or made"

(a) -here sent y hand or courier, u#on recei#t

() -here sent y registered #ost, on the fifth 5usiness 6ay fo..o-ing the date of #osting

(c) -here gi$en y fax, t-enty'four (2+) hours after the time of successfu. transmission

(d) -here sent y e'mai., -ithin t-enty'four (2+) hours after the message has een sent to

the intended reci#ient #ro$ided that the sender doesnHt recei$e an automatic out of

office re#.y and/or a message notifying the sender of de.ays -ith the de.i$ery of the

emai. in @uestion3

,:- F'RCE MA=E*RE

1E31 =either %arty sha.. e .ia.e to the other in res#ect of anything -hich may constitute reach of

this Agreement arising y reason of force majeure, name.y circumstances eyond the

reasona.e contro. of such %arty such as acts of God, terrorism, #eri.s of the sea or air, fire,

f.ood, drought, ex#.osion, emargo, riots, ci$i. commotion, #ro$ided that if any force maDeure

e$ent continues for more than six months, either %arty may terminate this Agreement

immediate.y3


21/26

21

,;- C'NFIDENTIA&ITY

131 The %arties sha.. ensure that a.. &onfidentia. 0nformation disc.osed y one %arty (the

Dic"#ing Part!) to the other in accordance -ith this Agreement or -hich may at any time

unti. ex#iry or termination of this Agreement come into the other %artyNs 7no-.edge,

#ossession or contro. sha.. not e used for any #ur#oses other than those re@uired or

#ermitted y this Agreement, and sha.. remain confidentia. and sha.. not e disc.osed to any

third #arty3

132 The #ro$isions of &.ause 131 sha.. not a##.y to any &onfidentia. 0nformation"

(a) #re$ious.y authorised in -riting y the 6isc.osing %arty as ca#a.e of eing disc.osed to

a third #arty under a##ro#riate confidentia.ity #ro$isions a##ro$ed y the 6isc.osing%arty

() -hich has ecome #art of the #u.ic domain other than y reason of reach of this

c.ause

(c) -hich is re@uired y any go$ernmenta. entity, or any a##.ica.e .a- or regu.ation, or the

order of any court or com#etent authority, to e disc.osed3

13! For the #ur#ose of this Agreement C#nfidentia" Inf#rmati#n sha.. mean a.. information

e.onging to a %arty disc.osed y that %arty to the other, -hether con$eyed ora..y, in -riting,in machine reada.e form or other-ise, inc.uding any and a.. #ro#rietary, technica. or usiness

information (inc.uding -ithout .imitation, usiness, #roduct, ser$ice or mar7eting #.ans,

#rocedures or strategies, information re.ating to finances and information re.ating to

customers or #ersonne.) or information of a %arty to -hich the other %arty may gain access

during the #erformance of this Agreement3

4


22/26

22

23+ 4ach %arty ac7no-.edges that it is acting on its o-n eha.f, as an inde#endent contractor and

not as an agent, re#resentati$e, or em#.oyee of the other3 =othing in this Agreement and no

action ta7en y the %arties under this Agreement sha.. constitute, or e deemed to constitute,

an agency, association or Doint $enture.

23 This Agreement (inc.uding the schedu.es to this Agreement) may on.y e $aried y a document

in -riting signed y each of the %arties3

23* The Franchise 6ocuments and any instructions #ro$ided y the Franchisor to the Franchisee

under this Agreement a.one constitute the entire agreement et-een the %arties -ith res#ect

to the suDect matter of this Agreement3 0n the case of any conf.ict et-een any of the

Franchise 6ocuments, the fo..o-ing order of #riority sha.. a##.y"

(a) 0nstructions gi$en y the Franchisor to the Franchisee #ursuant to this Agreement

() This Agreement

(c) The ?etter of A-ard

(d) The id tendered y the Franchisee in res#onse to the 4>0, exce#t for such #ortions of

the id as ha$e een s#ecifica..y reDected y the Franchisor in -riting3

(e) The 4>0

IN WITNESS WHERE'F, as of the 4ffecti$e 6ate, an authoried re#resentati$e of each %arty has du.y

executed this Agreement3

SIGNED for and on behalf of SIGNED for and on behalf of

igned" OOOOOOOOOOOOOO3 igned" OOOOOOOOOOOOOO3

=ame" OOOOOOOOOOOOOO3 =ame"

OOOOOOOOOOOOOO

3

Tit.e" OOOOOOOOOOOOOO3 Tit.e"OOOOOOOOOOOOOO

3


23/26

2!

ANNE>*RE%I

TERRRIT'RY

TIR*PATHI REGI'N(

C'MPRISING 'F CHITT''R) 9ADAPA ? NE&&'RE DISTRICTS 'F ANDHRA

PRADESH


24/26

2+

ANNE>*RE %II

S- N# Pr#d1ct MRP a $er m1t1a" C#nent

13 F8 (in ott.es / Tetra %ac7)23 5utter 8i.7, (G.asses / sachets)!3 ?assi, ( g.asses)+3 &urd, (&u#s / achets / 5u.7 #ac7s)3 0ce &ream, (?itres)


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2

ANNE>*RE @ III

%roduction and 8ar7eting chedu.e for committed Juantity

The idder sha.. meet the minimum commitment as fo..o-s"

S- Mi"0 *nit 1antit! 1antit!N#- Pr#d1ct t# .e $r#$#ed t# $r#$#ed t#

man1fact1red .e .e

man1fact1red man1fact1redin *nit in *nitM#nth M#nth in

/#rd

13 F8 (in ott.es / Tetra %ac7) 5ott.es / sachets

23 5utter 8i.7, 2 m. G.asses / sachets

!3 ?assi, 2 m. g.asses

+3 &urd &u#s / achets / u.7 #ac7s

3 0ce &ream ?itres

The Franchisor agrees that the ao$e @uantities #ut together of minimum L of the targeted @uantityto e manufactured e$ery month sha.. e re$ie-ed y the #arties after ex#iry of t-o years i3e, from the

eginning of third year of effecti$e date3


26/26

2*

ANNE>*RE @ I+

ROYALTY FEES

The Franchisee shall pay the Franchisor Royalty Fee on revenue derived from sale of the Products agreed

upon in Annexure-II and also on any other product that are agreed to be manufactured and sold by the

Franchisee under this Franchise Agreement with Franchisor. The Royalty Fee percentage payable by the

Franchisee shall be as below.

Products Royalty Fee Percentage

SFM, Butter Milk, Lassi, Curd, Ice

Cream

As quoted in the commercial offer

The Franchisee agrees that the above Royalty Fee percentage shall be reviewed by the Parties after the

expiry of two years i.e, from the beginning of third year of effective date3

The MRP of the Products shall vary from time to time depending upon market conditions and other

factors. The MRP of Products shall be mutually agreed and fixed by Franchisor, from time to time.

Documents

3-Draft Franchisee Agreement for Mfg & Mkt of Milk Products at Tirupathi