Island Aromas Distributor Agreement
This Distributor Agreement (“Agreement”) is entered into between Island Aromas (“Company”) and the approved distributor (“Distributor”).
1. Appointment
Island Aromas appoints the Distributor on a non-exclusive basis to sell Island Aromas products within their approved area or sales channel.
2. Stock Types
Island Aromas may issue stock to the Distributor under either of the following arrangements:
a) Wholesale Stock – Stock purchased upfront by the Distributor. Ownership transfers to the Distributor once payment is made in full.
b) Consignment Stock – Stock provided without upfront payment. Ownership of consignment stock remains with Island Aromas until payment is made.
3. Pricing Policy
a) Wholesale Distributors
Wholesale distributors are free to set their own resale prices once stock has been paid for in full.
b) Consignment Distributors
Consignment distributors must adhere to Island Aromas’ recommended selling prices unless written approval is provided by the Company.
4. Payment Terms
Payment for all sold consignment stock is due once per month on the 1st day of each month.
Failure to settle payments on time may result in:
- Suspension of further stock issuance
- Termination of this Agreement
Island Aromas reserves the right to refuse additional stock until outstanding balances are cleared.
5. Record Keeping
Distributors must maintain accurate records of:
- Inventory received
- Items sold
- Payments due and made
These records must be made available to Island Aromas upon request.
6. Unsold, Lost, or Damaged Stock
Unsold consignment stock may only be returned with prior approval from Island Aromas.
The Distributor is responsible for any stock that is:
- Lost
- Stolen
- Damaged
Such items may be charged to the Distributor.
7. Brand Use
Distributors may use Island Aromas branding, logos, and promotional materials only for approved marketing purposes.
Distributors must not:
- Alter logos or branding
- Misrepresent products
- Use the brand in a misleading or unprofessional manner
8. Conduct & Representation
Distributors must conduct business ethically and professionally and must not make false or exaggerated claims about Island Aromas products.
9. Termination
Island Aromas reserves the right to terminate this Agreement at any time due to:
- Non-payment
- Breach of agreement terms
- Misuse of brand or products
Upon termination, all outstanding balances become immediately due.
10. Liability
Island Aromas shall not be held liable for any losses, damages, or expenses incurred by the Distributor during resale activities.
11. Agreement Acknowledgement
By submitting a distributor application and/or accepting stock, the Distributor confirms that they have read, understood, and agreed to the terms of this Agreement.