THIS MEMORANDUM OF UNDERSTANDING (MOU) executed on this____day of June

2019 at Vijayawada between Mr. U.Gandhi son of V.Gandhi, aged 71,Sole - proprietor of

M/s.Vijaya Distributors bearing GST No.___ engaged as the distributor for M/s.Patanjali Food,

Patanjali FMCG, Gowdarbar and AyurPhala products and residing at Suryaraopeta Vijayawada-

10 hereinafter referred to as the First party

AND

Mr.J.Budharaj, son of P.Jawaharlal, aged 50, Sole Proprietor of M/s.Pratap& Co residing at Flat

No.234, 4th floor, Lotus Towers , Vijayawada-10,hereinafter referred to as the Second party

WITNESSETH as follows :

1. The first party desirous of disassociating himself from the business operations and

activities of M/s.Vijaya Distributors has offered to convey the distributorship of Patanjali

Food and AyurPhalaproducts, the entire business of M/s.Vijaya Distributors, its stock in

trade, assets, goodwill and all effects thereof as a going concern and the Second Party

has accepted to and assumes ownership, charge and control over the same effective from

this date.

2. The first party hereby transfers the entire stock in trade to the second party pursuant to

his receipt of a sum of Rupees Five Lacs(Rs.5,00,000/- only) by way of a Cheque

bearing No._________ dated ____________ drawn on _____________ as also on the

promise made by the Second party to tender post dated cheques payable by way of five
 equal monthly installments towards discharge of the remaining stock value amount to be

arrived at mutually on evaluation of the cost of products.

3. Notwithstanding the continuance of the distributorship rights of Patanjali with the First

party, he expressly consents, agrees and permits the second party to conduct the business

of M/s.Vijaya Distributors either in its name or under the name of M/s.Pratap& Co., to

deal with the companies above named , to place orders, to sell, to operate bank accounts

to take distribution of any other companies and to deal with and dispose of their such

products.  

4. The first party having transferred all his rights over the distribution of the products of the

above mentioned companies, the Second party is vested with all rights, power and

authority to sell the same either in the name of M/s.Vijaya Distributors or M/s.Pratap&

Co., in the area specified as per the terms and conditions of the distributorship agreement

of the first Party with the above mentioned companies.

5. The first party represents, assures and states that his legal representatives or heirs i.e.,

wife, daughters, son-in-laws and grand children shall have no manner of right, interest,

claim or demand whatever over the business, assets, stocks in trade, trade name,goodwill

and effects of M/s.Vijaya Distributors in Vijayawada as it stood lawfully assigned on this

date to the Second party for lawful consideration setout above.

6. The second party shall pay a monthly rent of Rs.60000 for his occupation of the

business premises of the First party comprising of the ground floor, the first floor,

portico, veranda and all other appurtenants thereto as is more fully setout and described

in a separate registered  rental  agreement entered into by the parties hereto.

7. The first party agrees to confer upon the second party all rights, power and authority to

operate the bank accounts of M/s.Vijaya Distributors and to make him its authorised

signatory for ensuring ease of business as also the banking transactions.

8. The first party agrees and assures that no claim or demand of any nature would be made

hereinafter at any stage in relation to the business, profits or rights of M/s.Vijaya

Distributors arising from this date.

9. The second party is at liberty to apply and obtain another new GST number in his name

to conduct his new line of business activities in addition to that of M/s.Patanjali,

Gowdarbar and AyurPhala Herbal Products.

10. The first party represents and assures that there are no liabilities of any kind, monetary

or stock wise in the name of M/s.Vijaya Distributors and agrees to clear the dues, claims

or demands if there be any in the name of his concern as on this date.

11. The parties hereto agree to register this MOU if they be so advised as also the rental

agreement entered by them separately by contributing in equal moieties the costs, charges

and expenses that may be incurred towards it.

12. The first party agrees to execute all or any legal documents, deeds, papers as may be

required of and from him to be submitted before banks, government departments or any

other authorities for the smooth conduct and operation of the above businessby the

second party.

13. The second party agrees to file GST returns of M/s.VijayaDistributors and pay taxes

accordingly. The parties hereto agree to pay their respective income taxes individually.

14. Any rights, liabilities and outstanding arising out of M/s.Vijaya Distributors from the

effective date i.e.___________ will be the whole and sole responsibility of the second
 party and no liabilities in future should arise as against the First party after the effective

date mentioned above.

15. The first party agrees to nominate, appoint and constitute the second party as the lawful

attorney / power agent of M/s.Vijaya Distributors pursuant to his execution of an

Irrevocable General power of attorney to facilitate smooth and effective running of its

business.

THE PARTIES HERETO HAVE IN PRESENCE OF THE WITNESSES HEREUNDER

SET THEIR HANDS/SUBCRIBED THEIR SIGNATURES AND SEAL ON THIS ON

THE DAY,MONTH AND YEAR MENTIONED ABOVE.

WITNESSES

1.

2.