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Memorandum of Understanding
OF
DISTRIBUTOR,RAWALPINDI
AND
PURE FOODS COMPANY (PVT.) LTD. OF BRAND SIPRUS

Pure Foods Company(Pvt.) Ltd, Old Pindidas Road, Missan Koller,17-Km Sheikhupura Road,
Lahore appoints M/S Distributor, Distributor for Pure Foods Company (Pvt.) Ltd Brand
“SIPRUS” Tetra Pack with following terms & conditions for North Zone as on dated March 04,
2011.

1. Distributor will execute distribution function in all territories where they have direct or
indirect distribution operation. Distributor shall establish warehouse & other
infrastructure at his cost for the company. Distribution is being awarded for Multan
Region.

2. Distributor will be invoiced Pure Foods Company (Pvt.) Ltd. Brands as per price list
attached herewith.

3. Pure Foods Company (Pvt.) Ltd. Will deliver the product at Distributor warehouse which
is situated at Multan.

4. Distributor will maintain stocks of equalivant of fifteen (15) days of Siprus Tetra Pack.

5. Distributor will ensure to fully execute sales & stock plan as agreed with the Pure Foods
Company (Pvt.) Ltd. Thereby meeting targets for all markets and delivering product in a
timely and planned manner & in assigned territory. Distributor should not cross his
territory limits, if he cross the territory limits, his distribution will be cancelled. If
distribution fails to achieve targets continuously for two quarters, company has the right
to change the Distributor by giving one month notice.

6. Distributor will pass Trade Promotions to the retailers as per company policy.

7. Distributor will confirm its order along Demand Draft/Online Payment or after
realization of payment in favor of Pure Foods Company (Pvt.) Ltd with seven days lead
time of delivery.

8. In case of termination of distribution, one month notice given by both parties. Pure Foods
Company (Pvt.) Ltd will lift the stocks from Distributor and will settle the accounts in
due course of time.
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9. Pure Foods Company (Pvt.) Ltd will provide margin of Rs.7/- on Trade Price of Siprus
Tetra Pack which Rs.250/- (1 X 27) 250ml packaging.

10. Market support (ATL/BTL) trade offers, consumer offers and POS supports will be
arrange by Pure Foods Company (Pvt.) Ltd, and will subject to the required availability
level of products in the market.

11. Your Distribution Territory starts from Gujarkhan to whole KPK and Muzaffarabad belt only in
AJK.

12. Distributor shall not make any cash payment to any person on behalf of company unless
it is advised so in written.

13. Distributor shall sell in its name and for its own account, in the territory, the products
which are supplied by the Pure Foods Company (Pvt.) Ltd.

14. Distributor agrees to use its best efforts to promote the sale of the Products in the
Territory in accordance with the Pure Foods Company (Pvt.) Ltd. Policy and shall protect
the Pure Foods Company (Pvt.) Ltd. interests with the diligence of a responsible
businessman in the industry.

15. Distributor shall set up and maintain adequate organization as per agreed terms for sales
with all means and personnel as are reasonably necessary in order to ensure the
fulfillment of its obligations for all Products throughout the territory, reasonable storage
facilities and fleet of delivery vehicles to secure sufficient distribution and proper
handling for the Products. Such means shall be modified and adapted in accordance with
the development of business for the Products within the Territory.

16. Distributor may appoint sub-Distributor or agents to sell the Products in the Territory.

17. Stocks sold will not be taken back if it is expired in the premises of Distributor; however
short expiry stock received from Pure Foods Company (Pvt.) Ltd, will be verified by the
company representative and will be the responsibility of Pure Foods Company (Pvt.) Ltd.
Shelf expiry and all claims regarding products or financial adjustments/product claims
should be submitted to Pure Foods Company (Pvt.) Ltd, within one week after due date.

18. All claims regarding product quality, batch fault, color fault and taste will be verified by
Pure Foods Company (Pvt.) Ltd. Quality assurance department and will be adjusted after
approval of CEO of Pure Foods Company (Pvt.) Ltd. However usual market wastage will
be adjusted on actual but after the approval of concerned authority.
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19. Distributor will be responsible for the display of Siprus Juices Tetra Pack on shelf and in
the freezer of outlet.

20. Pure Foods Company (Pvt.) Ltd, will not take any responsibility of retail credit recovery.

21. This Agreement is made for one year however it will be reviewed every year. Both
companies reserve the right to cancel this appointment at one month notice in advance.

22. All disputes will be settled amicably by both companies management and their decision
will be final however if not resolved will be referred to Lahore Courts only.

As a full understanding of the above terms and conditions this contract is being signed below
by both the parties.

Signature & Stamp

For For

Pure Foods Company (Pvt.) Ltd M/S Distributor,

Name Syed Shahzaman Ali Name

Designation National Sales Manager Designation