1.2 For the purposes of this Agreement, "subsidiary undertaking" and "parent undertaking" shall have the meaning ascribed thereto in section 1162 of the Companies Act 2006.
1.3 Unless the context otherwise requires, references in this Agreement (including the Schedules) to:
1.3.1 any of the masculine, feminine and neuter genders shall include other genders;
1.3.2 the singular shall include the plural and vice versa;
1.3.3 a "person" shall be construed as a reference to any individual, firm, company (including, without limitation, a limited liability company), corporation, government, state or agency of a state or any association or partnership (whether or not having separate legal personality) of two or more of the foregoing;
1.3.4 a "company" shall include a reference to any body corporate;
1.3.5 a "Party" shall mean either Finlays or Mitsui and "Parties" shall be construed accordingly; and
1.3.6 any time or date shall be construed as a reference to the time or date prevailing in Kenya.
1.4 The headings in this Agreement are for convenience only and shall not affect its meaning.
1.5 References to a clause, Schedule or paragraph are (unless otherwise stated) to a clause of or Schedule to this Agreement or to a paragraph of the relevant Schedule. The Schedules form part of this Agreement and shall have the same force and effect as if expressly set out in the body of this Agreement.
2. APPOINTMENT
2.1 Finlays appoints Mitsui as its exclusive distributor of the Products for the Term.
2.2 Mitsui agrees to purchase the Minimum Purchase Volumes of the Products from Finlays in each Year, as set out in clause 5.
2.3 Finlays agrees to supply the Minimum Supply Volumes to Mitsui, as set out in clause 5.
3. ORDERS AND DELIVERY
Orders
3.1 Finlays shall supply the Existing Products from the Commencement Date and the New Products from the New Products Commencement Date, in each case as ordered by Mitsui from time to time in accordance with this Agreement. On or before 1 June of each preceding Year of the Term Mitsui shall provide Finlays with written forecast volumes (“the Forecasts”) of the Products it will require during the Year of the Term following the provision of the Forecasts, such Forecasts will be treated as Orders, except for the Price in respect of Orders for Existing Products after the First Year which will be determined pursuant to clause 6 hereof.
3.2 Each Order shall be deemed to be a separate offer to purchase Products in accordance with this Agreement.
3.3 Subject to clause 3.1 all Orders shall:
3.3.1 be made in writing no later than three (3) months prior to production of Products; and
3.3.2 shall specify the type and quantity of Products ordered.
3.4 An Order shall be deemed accepted upon the sending by Finlays of a written order acknowledgement which shall confirm the commercial terms of the Order (a "Confirmation"). The Parties acknowledge and agree that the terms of this Agreement shall apply to the exclusion of any other terms and conditions contained in or with any Order.
3.5 Once an Order has been accepted by Finlays, it cannot be cancelled, varied or suspended by Mitsui without the written agreement of Finlays.
Samples
3.6 Prior to Delivery, Finlays shall provide to Mitsui a Sample of the Products in each Confirmation for inspection and testing.
3.7 As soon as reasonably practicable following receipt of the Sample by Mitsui and in any event prior to shipment of the Products from Mombasa Port, Mitsui will undertake an appropriate inspection and testing of the Sample (in accordance with the methods set out in Schedule 2) in order to ensure that the Sample conforms to the Specification. Mitsui shall keep records of these inspections and tests and submit to Finlays at any time upon reasonable request by Finlays, records or data relating to the same.
3.8 Mitsui shall immediately inform Finlays if, as a result of any inspection or testing in accordance with clause 3.7, a Sample is not in accordance with the Specification. Following such notification, Finlays shall be given the opportunity to verify the inspection and testing undertaken by Mitsui and if, following such verification, Finlays agrees that the Sample is not in accordance with the Specification, Mitsui may reject the relevant Products prior to shipment of the Products from Mombasa Port upon notice in writing to Finlays (together with full records and data relating to such analysis).