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Intercompany Distribution Agreement

Intercompany Distribution Agreement Template for Denmark

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Intercompany Distribution Agreement

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Document background
The Intercompany Distribution Agreement is essential for corporate groups operating in Denmark that need to formalize their internal distribution arrangements. This document is particularly relevant when a group company manufactures or sources products and requires a structured framework for distribution through other group entities. The agreement ensures compliance with Danish legal requirements, including commercial, corporate, and competition laws, while addressing transfer pricing and group governance requirements. It typically includes detailed provisions on product supply, territorial rights, pricing mechanisms, and operational procedures, tailored to meet both local regulatory requirements and group-wide policies. The agreement is crucial for establishing clear lines of responsibility, maintaining proper corporate governance, and ensuring tax compliance in intercompany trading relationships.
Suggested Sections

1. Parties: Identification of the group companies entering into the agreement as supplier and distributor

2. Background: Context of the distribution arrangement within the group structure and business objectives

3. Definitions: Key terms used throughout the agreement, including Products, Territory, and group-specific terminology

4. Appointment and Territory: Scope of distributor appointment and territorial rights, including any exclusivity provisions

5. Supplier Obligations: Core obligations of the supplier including product supply, support, and training

6. Distributor Obligations: Core obligations of the distributor including marketing, sales efforts, and reporting

7. Ordering and Supply: Process for ordering products, forecasting, and supply chain management

8. Prices and Payment: Pricing mechanism, payment terms, and transfer pricing considerations

9. Intellectual Property: Rights and restrictions regarding use of group IP and branding

10. Confidentiality: Protection of confidential information, aligned with group policies

11. Term and Termination: Duration of the agreement and termination provisions

12. Post-Termination: Obligations and rights after agreement termination

13. General Provisions: Standard boilerplate clauses adapted for intra-group context

Optional Sections

1. Minimum Purchase Requirements: Include when specific volume commitments are required for business planning or tax purposes

2. Quality Control: Include for regulated products or when specific quality standards must be maintained

3. Technical Support: Include for technical products requiring ongoing support and maintenance

4. Local Regulatory Compliance: Include when products require specific regulatory compliance in the territory

5. Sub-distributors: Include if the distributor may appoint sub-distributors

6. Group Services: Include when shared services are provided through group arrangements

7. Data Protection: Include when personal data processing is involved in the distribution activities

8. Insurance: Include when separate insurance coverage is required despite group policies

9. Anti-corruption: Include for territories with high corruption risk or specific compliance requirements

Suggested Schedules

1. Products Schedule: Detailed list of products covered by the agreement

2. Territory Schedule: Detailed definition of territorial scope and any restrictions

3. Price List: Current prices and transfer pricing methodology

4. Service Levels: Specific performance metrics and service standards

5. Group IP Guidelines: Guidelines for use of group intellectual property

6. Reporting Templates: Standard forms for required business reporting

7. Technical Specifications: Product technical details and requirements

8. Compliance Requirements: Group and local compliance requirements

9. Operating Procedures: Standard operating procedures for distribution activities

Authors

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Relevant legal definitions
Agreement
Affiliate
Approved Sub-distributor
Business Day
Commencement Date
Competing Products
Confidential Information
Customer
Distributor
Effective Date
Force Majeure Event
Group
Group IP
Initial Term
Intellectual Property Rights
Minimum Purchase Requirements
Net Sales
Order
Parent Company
Products
Product Specifications
Quarter
Renewal Term
Representatives
Supplier
Supply Terms
Territory
Trademarks
Transfer Prices
Working Hours
Technical Documentation
Quality Standards
Regulatory Approvals
Report
Group Policies
Compliance Requirements
Service Levels
Marketing Materials
Operating Procedures
Forecast
Delivery Terms
Payment Terms
Subsidiary
Commercial Year
Group Standards
Intercompany Procedures
Distribution Channel
Sales Targets
Clauses
Appointment and Territory
Exclusivity
Supply Obligations
Distribution Rights
Product Orders
Delivery Terms
Transfer Pricing
Payment Terms
Minimum Purchase Requirements
Performance Standards
Marketing and Promotion
Intellectual Property
Trademark Usage
Quality Control
Compliance
Regulatory Requirements
Reporting Obligations
Audit Rights
Confidentiality
Data Protection
Non-Competition
Force Majeure
Term and Duration
Termination Rights
Post-Termination Obligations
Group Governance
Assignment
Sub-Distribution
Warranties
Indemnification
Insurance
Notice Requirements
Dispute Resolution
Governing Law
Entire Agreement
Amendments
Severability
Third Party Rights
Anti-Corruption
Export Control
Group Policies Compliance
Product Liability
Training and Support
Stock Requirements
Business Planning
Records Maintenance
Tax Compliance
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing contract formation, validity, and enforcement in Denmark. Essential for establishing the basic contractual framework of the distribution agreement.
Danish Sale of Goods Act (Købeloven): Regulates the sale of goods between parties, including provisions on delivery, risk transfer, and remedies for breach of contract.
Danish Commercial Agents Act (Handelsagentloven): While not directly applicable to all distribution agreements, its principles may be relevant for certain aspects of the distribution relationship.
EU Competition Law (Article 101 TFEU): Regulates vertical agreements including distribution agreements, particularly regarding territorial restrictions and pricing practices.
EU Vertical Block Exemption Regulation: Provides safe harbor for certain vertical agreements, including distribution agreements, that meet specific criteria.
Danish Competition Act (Konkurrenceloven): National competition law implementing EU competition principles and providing additional local requirements.
Danish Companies Act (Selskabsloven): Relevant for intercompany relationships and corporate governance aspects of the agreement.
Danish Marketing Practices Act (Markedsføringsloven): Regulates marketing activities and fair business practices, which are often relevant in distribution relationships.
General Data Protection Regulation (GDPR): Relevant if personal data is processed as part of the distribution relationship.
Danish Bookkeeping Act (Bogføringsloven): Governs accounting requirements for business transactions between related companies.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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