RFT 0.00% 0.8¢ rectifier technologies ltd

Ann: Unipower exclusive distribution contract-RFT.AX, page-64

  1. 2,467 Posts.
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    The important words in the agreement are "and commits to growing sales figures in that region".
    Hopefully the agreement quantified the growth numbers - and as another poster said, hopefully there are guaranteed payments to be made in exchange for this agreement.

    "Exclusive agreement" would indicate that Unipower held the upper hand in negotiations, and RFT needs their market links and reach.
    Unipower would have multiple reasons to request Exclusivity - including locking out potential competition, justifying the skills their sales teams would need to develop for the product, and also to control a market player.

    Having held Senetas shares in the past - their exclusive distribution agreements with a US encryption player stopped serving their needs after a relatively short time, and they had to renegotiate the agreement and establish multiple routes to market to be treated seriously. They also learned of the need to negotiate sufficiently specific terms for their distributor to be given measurable goals, penalties, and performance guarantees
 
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