Article 2. Period of the Agreement

The appointment as Distributor shall commence on the ________ day of _______ 20__ and shall continue for one year and thereafter from year to year subject as hereinafter provided until terminated by not less than six months' notice in writing given at any time by either party to the other.

Provided that

(a) the Company shall be entitled to terminate this appointment forthwith by immediate notice in any of the following events:

(i) if the Distributor shall commit any breach of any of the provisions of this Agreement or shall fail to perform any of his obligations hereunder.

(ii) if the Distributor is in the opinion of the Company insolvent or otherwise incapable of performing any of his obligations hereunder.

(b) In the event of termination of this Agreement by either party from any cause whatsoever the Distributor shallberesponsible for the disposal of such stocks of the Products as are legally the Distributor's property at the time of the termination of the said Agreement.

Article 3. Delivery

(a) On delivery by the Company of the Products sold by the Company to the Distributor in pursuance of this Agreement the Distributor shall become the Owner of the Products.

(b) The terms of delivery for each order for the Products placed by the Distributor shall be mutually agreed at the time of ordering but in the absence of such agreement delivery for each order shall be deemed to be CIF TANJUNK PRIOK (Djakarta).

Article 4. Prices

The Company shall invoice the Products at the price operating at the date of dispatch from the Company's factory or warehouse in respect of each order made in pursuance of this Agreement and the Distributor shall pay for the Products delivered as invoiced.

Article 5. Payment

The terms (including the amount of credit to be allowed by the Company) and method of payment for the Products purchased by the Distributor shall be from time to time prescribed by the Company.

Article 6. Selling Prices

The Distributor shall not resell the Products at prices in excess of, or subject to, discounts lower than the maximum prices and minimum discounts from time to time recommended or agreed by the Company.

Article 7. Interpretation

This Agreement and all sales of the Products by the Company to the Distributor in pursuance thereof shall be construed and take effect as contracts made in the United Kingdom of Great Britain and Northern Ireland and in accordance with the laws of the United Kingdom.