Common use of Stocking Distributor Clause in Contracts

Stocking Distributor. A stocking distributor buys 2 or more complete units at a time and keeps at least one demo unit in stock at all times. Furthermore, the stocking distributor has an authorized service center. Distributor agrees not to sell outside their serviceable area. o Receive 40% off MSRP with approved credit. Freight is FOB Elkhart, IN (USA). Order will be sent freight prepaid and add by the most economical carrier. o Drop shipments will only be authorized within serviceable area. o Invoices must be paid within terms. Failure to do so could result in loss of credit privileges. Accounts past due will be charged $250 per invoice/month. o Initial purchase must be paid for using a credit card in order for credit terms to be established. A non-stocking distributor buys one or more complete units at a time, and is not required to keep a demo unit. The non-stocking distributor utilizes the Sales Representative to conduct unit demonstrations. Distributor agrees not to sell outside their serviceable area. o Receive 25% off MSRP with approved credit. Freight is FOB Elkhart, IN (USA). Order will be sent freight prepaid and add by the most economical carrier. o Drop shipments will only be authorized within serviceable area. o Invoices must be paid within terms. Failure to do so could result in loss of credit privileges. Accounts past due will be charged $250 per invoice/month. o Initial purchase must be paid for using a credit card in order for credit terms to be established. To use a credit card all information such as card number, expiration date, and three digit security code on the back of the card must be included with the order and will be submitted after shipment. Authorization documents must be submitted with authorized signature.