Critical — exclusivity-conversion conflict between two distributors
🇳🇵 Nepal
2 signed distribution agreements (Agri Nutrition EXPIRED 30 Mar 2026; Kantipur Vet live with 1-Jan-2025 exclusivity conversion). 15-month overlap window Jan 2025 - Mar 2026 where two distributors held overlapping product rights. Conversion-trigger fact pattern must be verified this week.
Country profile
Nepal — regulatory context
Vet drug authority
DDA Nepal (Department of Drug Administration) — dda.gov.np.
Commercial agency law
Nepal Contract Act 2056 (2000). No statutory ban on multiple distributors; exclusivity is contractual only. No mandatory agency-compensation regime — Nepal does not impose Saudi/UAE/Egypt-style termination indemnity overhang.
Language law: Nepali likely required for state-court evidence (English-only contracts OK for arbitration but face friction in Kathmandu District Court).
Stamp duty: Nepal Stamp Act 2019 applicability on commercial instruments — verify rates with local counsel.
Commercial registry filing: Department of Commerce / Industry registration may apply.
Formalities: Nepal NOT a Hague Apostille member — consular legalization required.
FX rules
Nepal Rastra Bank (NRB) 180-day repatriation undertaking rule for USD outflows — governs distributor payments to Vaksindo. Not addressed in either Nepal contract.
NY Convention
YES Nepal acceded 1998. SIAC awards enforceable through Patan High Court commercial bench. Awards in English; certified Nepali translation if state-court enforcement.
JAPFA recommendation
Strong jurisdiction for distribution agreement. Resolve the Agri vs Kantipur exclusivity-conversion fact pattern (Pak Yusman). At Kantipur renewal (1 Jan 2027), document multi-distributor strategy.
Signed contracts in this country
AGRI NUTRITION AND PHARMA PVT. LTD. — EXPIRED 45 DAYS AGO
Counterparty
AGRI NUTRITION AND PHARMA PVT. LTD. — Kathmandu, Nepal
Counterparty signatory
Suresh Vaidya (Director) — signature undated
Effective
31 March 2023
Initial term end
EXPIRED 30 March 2026 — 45 days ago (LOA expired same day)
Operating status
Operating without paper. 12-month sell-off clock (Art. 24.2) already running.
Score / grade
64 / 100C
Exclusivity
NON-EXCLUSIVE (Art. 5)
Governing law / forum
Indonesia (Art. 34.1) / HYBRID BANI / SIAC defect (Art. 34.2) — same defect as 9 portfolio contracts
EXPIRED 45 days ago — parties may still be shipping without contractual rights. 12-month sell-off clock running.
Dual-track BANI/SIAC dispute clause (Art. 34.2 "BANI or SIAC Rules") — unenforceable as written.
Territorial overlap with Kantipur Vet — Kantipur converted to EXCLUSIVE 1 Jan 2025 if 2024 targets hit, creating latent breach exposure Jan 2025 - Mar 2026.
KANTIPUR VET DISTRIBUTORS PVT. LTD. — LIVE WITH EXCLUSIVITY CONVERSION
Counterparty
KANTIPUR VET DISTRIBUTORS PVT. LTD., Nepal
Counterparty signatory
Anish Badal (Executive Director) — signed 25-03-2024 BS = 17 June 2024 AD
Effective
1 January 2024
Term end
1 January 2027 — ~7.5 months remaining
Exclusivity
CONVERTED TO EXCLUSIVE 1 Jan 2025 — conditional on 2024 Schedule A target achievement (Art. 2.1). Behaviorally confirmed by 16 Jan 2026 LoA listing 10 SKUs. Conversion trigger fact pattern UNVERIFIED.
Score / grade
74 / 100B
Governing law / forum
Indonesia (Art. 35.1) / Clean SIAC Singapore (Art. 35.2) — meaningfully stronger than Agri Nutrition
Renewal status
1-Jan-2027 renewal placeholder draft on file — UNSIGNED. Drafting bug: Initial Period dates still reference 31 Dec 2024.
1 Jan 2025 exclusivity conversion — UNCONFIRMED. If triggered, Vaksindo has 15 months of latent breach exposure from continuing Agri Nutrition supply (Jan 2025 - Mar 2026).
2027 renewal draft has date bug. Initial Period text still says "1 Jan 2024 - 31 Dec 2024" — must be fixed before signing or exclusivity fires day 1.
1-month liability cap + missing KUHPerdata waiver + no MA transfer-back timeline — all bundle-able into renewal v2.
Authorized Products (current LOA) two distributors
AGRI NUTRITION — LOA expired 30 March 2026 (Schedule A products)
Source: Schedule A of Distribution Agreement. LOA dated 27 Mar 2023, valid until 30 Mar 2026, blanket appointment (no enumeration in LOA itself). 20% annual upward revision.
#
Product
Pack
CIF USD
Y1 vol
Y2 vol
1
Vaksimune NDLS IB
1000 Ds
2.20
3,500
4,000
2
Vaksimune ILT
1000 Ds
8.50
500
600
3
Vaksimune IBD D
1000 Ds
3.20
2,000
2,400
4
Vaksimune IBD M+
1000 Ds
3.50
2,000
2,400
5
Vaksimune Pox
1000 Ds
4.40
2,000
2,400
6
Vaksimune ND L Inaktif
1000 Ds
14.25
2,000
2,400
7
Vaksimune Coryza LE
1000 Ds
26.50
2,000
2,400
8
Vaksimune ND L IBPlus
1000 Ds
31.00
500
600
Y1 total: 14,500 units · Y2 total: 17,200 units (1000-DS packs).
KANTIPUR VET — current LOA (16 Jan 2026, 10 SKUs)
LOA dated 16 January 2026, replaces earlier LoA. Lists 10 SKUs broadly matching Distribution Agreement Schedule A.
#
Product
Pack
Year 1 qty
Y1 value (USD)
1
Vaksimune ND LS
1000 ds
5,000
19,000
2
Vaksimune ND Clone
1000 ds
5,000
19,000
3
Vaksimune ND B1
1000 ds
4,000
16,000
4
Vaksimune ND CB
1000 ds
5,000
14,500
5
Vaksimune ND Clone IB
1000 ds
7,200
27,000
6
Vaksimune IB
1000 ds
5,000
17,500
7
Vaksimune NDL Multi IBPLUS
1000 ds
6,000
27,000
8
Vaksimune NDL Lasota Inactif
250 ds
1,800
41,400
9
Vaksimune ND IB Lasota
1000 ds
4,200
13,650
10
Vaksimune ND L Inaktif
1000 ds
9,500
95,000
Year 1 total ~USD 290,050. 20% annual upward revision built in. Schedule A covers 2024 / 2025 / 2026.
Country watch items
EXCLUSIVITY-CONVERSION VERIFICATION — CRITICAL
Severity: CRITICAL (verification deadline 25 May 2026).
Kantipur Art. 2.1 converts to EXCLUSIVE on 1 January 2025 conditional on 2024 Schedule A target achievement. If trigger fired, every Vaksindo shipment to Agri Nutrition from 1 Jan 2025 to 30 Mar 2026 (15 months, ~8 overlapping SKUs) is latent breach of Kantipur's exclusivity. Pak Yusman must pull 2024 Kantipur sales actuals vs Schedule A targets immediately.
Brand-reputation risk > legal damages — Kantipur's 1-month liability cap (Art. 21.4) limits monetary exposure but disclosure could damage the Kantipur relationship.
1 Jan 2027 Kantipur renewal — draft has date bug
Severity: HIGH.
Unsigned renewal placeholder uses 1 Jan 2027 effective date but Art. 2.1 Initial Period text still says "1 Jan 2024 - 31 Dec 2024" (copy-paste from original). If signed as-is, exclusivity fires day 1. Inherits all residual gaps of 2024 original.
Agri Nutrition contract expired — 45 days operating without paper
Severity: HIGH.
30 March 2026 expiry came and went. No renewal or termination notice on file. Need a decision: renew / consolidate behind Kantipur / geographic or product split.
Suggested actions ranked by urgency
Day 0-7 (this week) — CRITICAL
Pak Yusman: pull internal 2024 Kantipur sales actuals vs Schedule A targets. Document target achievement in one-page memo.
Email Suresh Vaidya (Agri Nutrition) with cc Dr. Teguh: treat post-30-Mar-2026 shipments as "interim arrangement pending renewal" — preserves position without breaching.
If exclusivity converted: prepare "non-breach" defence file (Agri pre-existed, was non-exclusive, has now expired); do NOT volunteer disclosure to Kantipur.
Day 30-60 — if renewing Agri Nutrition
Send renewal draft with single SIAC Singapore clause (replace Art. 34.2 dual-track entirely).
Add KUHPerdata 1266/1267 waiver.
Add explicit Kantipur carve-out / acknowledgement of multi-distributor structure.
Execute new LOA (reset 12-month sell-off clock).
Before 1 January 2027 — Kantipur renewal v2
Fix Art. 2.1 dates: Initial Period 1 Jan 2027 - 31 Dec 2027; exclusivity review 1 Jan 2028.
Add KUHPerdata 1266/1267 waiver.
Add 30-day MA transfer-back deadline + DDA Nepal-specific assistance obligation.
Specify SIAC language (English) and tribunal size (1 arbitrator).
Lift liability cap to 12 months.
Tighten adverse-event reporting to 5 days.
If renewal not executed by 1 Jan 2027 — send holdover side-letter; do NOT let contract simply expire.
Drafts in progress
Kantipur 1 Jan 2027 renewal — UNSIGNED placeholder
Same template structure as 2024 original. Signature blocks blank. Date bug in Art. 2.1 must be fixed. Negotiation moves listed above before circulating for signature.