Commercial Letters - Offering terms of agency

Dear Sirs,
      We thank you for your letter of 18th May and shall be glad to appoint you as our sole-agent for Maharashtra State on the following terms and conditions.

1. That the sole agency will mean sole distributorship of our coloured Tv and no other product manufactured by us.
2. That the sole-agency will be for the state of Maharashtra only.
3. That you will deposit with us a cash security of RS. 5 lakhs by a bank draft.
4. That your will give us an annual sale of Rs. 60 lakhs and a commission of 12.5% will be paid on this amount. The amount of commission will be settled annually or in case the minimum sale of Rs.60 lakhs is completed earlier, the commission will become payable. 2.5% extra commission will be allowed on your increase in sales to 75lakhs and 5% if the turnover exceeds Rs.1 crore.
5.That payment of bills will be made within 30days and credit at no time will go beyond Rs 20 lakhs including your cash security of Rs. 5 lakhs. Therefore in case where this limit of Rs. 20 lakhs is reached, further documents will be sent through bank for immediate payment.
6. That so long as you sell our coloured Tv, you will not sell any other coloured TV - not even of those firms for whom you are working as a sole distributor for their TV's.
7. That all publicity material, leaflets etc. price list etc, will be supplied at our expense.
8. That all goods will be supplied F.O.R. anywhere in Maharashtra State.
9. That all goods will be properly packed in wooden cases each TV to be packed separately, and no responsibility for any damage whatsoever, will be borne by us, once the goods leave our place. This however excludes any mechanical or technical defect which will be got removed at our cost.
10. That you will not pledge or mortgage our goods to any one at any time for any reason whatsoever.
11. That all special offers will entitle you to your usual commission apart from additional benefits of special offers.
12. That dispute if any will be subject to Delhi Courts only.

We hope you will find the above acceptable.
Please return us two copies of the agreement duly signed and stamped together with a draft for Rs. 5 lakhs.

Thanking you,

Yours faithfully,

Encl.:--Agreement in triplicate.