Tri Party Distribution Agreement

upon expiration of this Agreement, whether for its initial term or thereafter, or in the event of early termination, the Trademark has the option of (i) either the Distributor at the initial purchase price less a discount of ____ [percentage, e.g. 20% (20%), or a portion of the Products and Other Products in Good Condition that the Distributor retains at the time of termination; (2) or to allow the distributor to purchase a ______ (e.g. duration of the transfer period.B. 3 months (three months) at the end of which the mark may require, at the distributor`s expense, the destruction of the remaining goods. During the sales period, the distributor must strictly comply with the provisions of the agreement with regard to the distribution of products and the use of the trademark, which will be maintained until the end of the sales period after the expiry of the agreement. Location: ______________Endroit where the agreement is signed] However, cannabis lawyers love complexity. Over the past two years, our California cannabis lawyers have seen a huge increase in three-party supply chain agreements. These contracts are relatively common in licensing agreements. A brand might want to produce cannabis products and have them distributed to retailers across the state. If the brand wishes to use another manufacturer and distributor, it may be cheaper to have one of the three framework contracts than to have a separate agreement with the manufacturer and distributor and to force the manufacturer and distributor to enter into a contract between them. It can also give the brand greater flexibility to have control over how manufacturers and distributors do business with each other.

Each Party shall have the right to terminate this Agreement unilaterally and with immediate effect if the other Party fails to correct a material breach of its obligations under this Agreement and/or its obligations related to the relevant transaction within the limits of ______ [prior notification – z.B. 60 (sixty) days] following written notification by the other Party. by letter with acknowledgment of receipt or by other sufficiently convincing written means indicating the intention to apply this Article. The agreement is written in English and is printed in two original copies [to be confirmed – an original copy will be provided to each party] signed on this page and initialled on any other page, with the provision of an original copy to each party. . . .

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