This exclusivity agreement (the “agreement”) is entered into by and between British Cambridge Organics (BRICO) Inc., a Philippine-based company based at Unit 402 Galleria Corporate Centre, EDSA Cor. Ortigas Avenue, Quezon City, Philippines 1110 (“BRICO” below) and within the European Union, there is legislation to provide some protection to agents, including the right to compensation in certain circumstances when an agency is dismissed. The same is true in other parts of the world, and in some countries it is necessary for a foreign manufacturer to designate as an agent a person or company that is a national of the country in which the Agency will operate. A representative should be distinguished from a merchant – in commercial language, a trader buys shares from the supplier or customer, then resells them to his customers for a bonus, while an agent finds customers for the customer, who then sells directly to customers and pays commissions to the agent. It is important that your distribution contract has conditions to meet your business needs, including: if a customer and/or territory has been assigned to the sales agent, this is exclusive, unless it has been expressly agreed that this was not the case (Article 7:431, paragraph 1, point c) of the Dutch Civil Code). Therefore, it is important (from the client`s point of view) to explicitly declare in an agency agreement that there is no exclusivity. This non-exclusive agency agreement (“agreement”) is concluded on May 12, 2006 (“Date of Effect”) between THE AMERICAN ENERGY GROUP, LTD., a Nevada company (the “Company”) and HYCARBEX-AMERICAN ENERGY, INC., a Nevis, West Indies company and its associated companies (individually and collectively “Agent”). As a general rule, there are two parties involved in an agency agreement. First, is the officer entitled to represent another person, the client, to make acts and decisions on behalf of that person? There is a legal link between these two parties when the adjudicator`s authority assigns representation to the agent. In addition, Europe has a directive (Directive 86/653/EEC) which aims to harmonize the individual laws of Member States with regard to trade agency contracts. This directive is of great importance for all agency contracts within the European Union. The directive contains binding provisions for all activities taking place on European territory.
The application of US law to an agreement between a European agent and an American client would destroy the European Commission`s protection structure. To avoid this, the Court of Justice decided to give effect to the directive. A European agent can therefore invoke European law at any time if the Agency`s treaty has adopted a non-European law. Another definition of an agency agreement is the “relationship between the Authority or a person`s ability to create or influence legal relationships between another person and a third party.” It sounds more professional, but it means the same thing.