Proposal

CLAI Collaboration Proposal for Hardip

Parties

This collaboration is between:

Phil Bowen ("Phil"), supplier of WelshClay.

and

Phoenix Products ('Phoenix'), manufacturer and supplier of ingredients, packaging, testing, and fulfilment services.

Purpose

The purpose of this agreement is to create CLAI Cosmetics (clai is the Welsh word for clay).

Contributions

Phil Bowen

  • Supplies WelshClay for use in CLAI products.
  • Branding support and marketing assistance where required.
  • Joint brand owner of CLAI.

Phoenix Products

  • Provides product development input,
    purchases and supplies all additional ingredients required for manufacture.
  • Pays for all product testing, compliance, and certification requirements.
  • Purchases all packaging and labelling materials.
  • Manufactures, stores, and dispatches products.
  • Manages customer payments and financial administration.
  • Joint brand owner of CLAI.

Order Transparency

  • Both Phil and Phoenix shall receive copies of all orders received through any sales channel.
Sales records shall be made available to both parties upon request. Both parties shall have visibility of product sales and revenue.

Profit Sharing

Cost Recovery

The following costs shall be deducted from sales revenue before profit is calculated:

  • Ingredients
  • Packaging
  • Product testing and compliance costs
  • Manufacturing costs
  • Shipping and fulfilment costs
  • Any agreed marketing costs

This amount shall be referred to as the Product Cost.

Profit Distribution

  • Net profit shall be calculated as:

Sales Revenue – Product Cost = Net Profit

  • Net profit shall be divided equally:
    • 50% to Phoenix Products
    • 50% to Phil Bowen

Payments

  • Phoenix Products shall receive all customer payments.
  • Phoenix Products shall provide a monthly sales and profit statement.
Phil Bowen shall receive 50% of the net profit.
Payment to Phil Bowen shall be made on or before the 15th day of the month following the sales month.

Example:

  • Products sold during June.
  • Profit calculated at month end.
  • Phil receives his 50% profit share by 15th July.

Intellectual Property

  • The CLAI brand shall be jointly owned by Phil Bowen and Phoenix Products unless otherwise agreed in writing.
Product formulations developed jointly shall be considered joint intellectual property.

Termination

Either party may terminate the collaboration by providing 30 days written notice.

Upon termination:

  • Outstanding profits owed shall be paid.
  • Existing stock arrangements shall be agreed upon between both parties.
  • Ownership and future use of the CLAI brand shall be resolved by mutual agreement.

Agreement Principle

Both parties agree to work in good faith, maintain transparency, and operate CLAI as a mutually beneficial partnership with an equal 50/50 share of profits after product costs have been deducted.

Signed:

Phil Bowen _______________________ Date __________

Phoenix Products ___________________________ Date __________