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Subdistribution Agreement

Subdistribution Agreement Template for Denmark

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Subdistribution Agreement

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Document background
A Subdistribution Agreement is essential when a main distributor wishes to expand their distribution network by appointing secondary distributors while maintaining control over the distribution chain. This document, governed by Danish law, is particularly relevant for businesses operating in Denmark or choosing Danish jurisdiction for their commercial relationships. The agreement typically includes detailed provisions on territorial rights, pricing structures, performance targets, and compliance requirements with both Danish and EU regulations. It's commonly used in situations where the main distributor has exclusive rights from a manufacturer and needs to establish a formal, compliant framework for subdistributors to operate within their authorized territory. The agreement ensures proper management of intellectual property rights, maintains quality standards, and addresses key commercial and legal risks in the distribution chain.
Suggested Sections

1. Parties: Identification of the main distributor and subdistributor, including full legal names and addresses

2. Background: Context of the agreement, including main distributor's authority to appoint subdistributors

3. Definitions and Interpretation: Key terms used throughout the agreement, including Products, Territory, and Intellectual Property Rights

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and territorial scope

5. Term and Termination: Duration of agreement, renewal provisions, and termination grounds

6. Subdistributor Obligations: Core duties including sales targets, marketing, reporting, and compliance requirements

7. Main Distributor Obligations: Support, supply terms, training, and other distributor commitments

8. Ordering and Supply Terms: Process for ordering, delivery, pricing, and payment terms

9. Intellectual Property Rights: License to use trademarks, restrictions, and protection obligations

10. Confidentiality: Protection of confidential information and trade secrets

11. Competition Compliance: Compliance with Danish and EU competition laws

12. Warranties and Indemnities: Product warranties, mutual indemnities, and liability limitations

13. Data Protection: GDPR compliance and data handling requirements

14. Force Majeure: Events excusing performance and consequences

15. Governing Law and Jurisdiction: Danish law application and dispute resolution provisions

Optional Sections

1. Minimum Purchase Requirements: Include when specific purchase quotas are required

2. Digital Platform Terms: Required for online distribution platforms

3. Customer Support Requirements: Include for technical products requiring specialized support

4. Stock Requirements: Include when minimum stock levels must be maintained

5. Marketing Contribution: Include when parties share marketing costs

6. Non-Compete Obligations: Include when restricting subdistributor from competing activities

7. Import/Export Controls: Required for international distribution

8. Quality Control Measures: Include for luxury or specialized products

9. Training Requirements: Include for technical or complex products

Suggested Schedules

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

2. Schedule 2 - Territory: Detailed definition of geographical territory and any restrictions

3. Schedule 3 - Pricing and Payment Terms: Price lists, discounts, and payment conditions

4. Schedule 4 - Performance Targets: Sales targets and performance metrics

5. Schedule 5 - Technical Requirements: Product specifications and technical standards

6. Schedule 6 - Service Level Agreement: Support and service standards

7. Schedule 7 - Approved Customer List: If distribution is limited to specific customers

8. Schedule 8 - Marketing Guidelines: Brand guidelines and marketing requirements

9. Appendix A - Reporting Templates: Standard forms for required reports

10. Appendix B - Return Procedures: Process for handling product returns

Authors

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Relevant legal definitions
Agreement
Affiliated Company
Applicable Laws
Business Day
Confidential Information
Commencement Date
Competing Products
Customer
Delivery Point
End User
Force Majeure Event
Intellectual Property Rights
Main Distributor
Manufacturer
Minimum Purchase Requirements
Net Sales
Order
Products
Performance Targets
Price List
Purchase Price
Quarter
Regulatory Approvals
Reports
Sales Forecast
Subdistributor
Subdistribution Rights
Supplier
Supply Terms
Technical Documentation
Territory
Term
Trademarks
Training Materials
VAT
Working Hours
Year
Marketing Materials
Quality Standards
Warranty Period
Service Level Requirements
Recall
Related Parties
Reporting Period
Stock Requirements
Trade Control Laws
Data Protection Laws
Commercial Information
Effective Date
Clauses
Appointment
Territory
Exclusivity
Term
Termination
Product Supply
Pricing
Payment
Ordering
Delivery
Performance Requirements
Minimum Purchase
Stock Requirements
Marketing
Training
Technical Support
Quality Control
Warranties
Product Liability
Intellectual Property
Trademarks
Confidentiality
Data Protection
Non-Compete
Force Majeure
Regulatory Compliance
Competition Law
Audit Rights
Reporting
Insurance
Indemnification
Limitation of Liability
Assignment
Subcontracting
Notice
Amendments
Severability
Entire Agreement
Governing Law
Dispute Resolution
Anti-Corruption
Export Control
Post-Termination Obligations
Customer Support
Product Returns
Records Maintenance
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing contract formation, validity, and enforcement in Denmark. Essential for the basic framework of the distribution agreement.
Danish Sale of Goods Act (Købeloven): Regulates the sale of goods between parties, including provisions on delivery, defects, and remedies.
Danish Competition Act (Konkurrenceloven): Ensures compliance with competition regulations, particularly regarding territorial restrictions and exclusive arrangements in distribution agreements.
EU Competition Law (Article 101 TFEU): European competition rules affecting vertical agreements, including the Block Exemption Regulation for vertical agreements.
Danish Commercial Agents Act (Handelsagentloven): While primarily for commercial agents, its principles may be relevant for certain aspects of distribution relationships.
Danish Product Liability Act (Produktansvarsloven): Regulates liability for defective products in the distribution chain.
Danish Marketing Practices Act (Markedsføringsloven): Governs marketing activities and fair trading practices in the distribution relationship.
GDPR (General Data Protection Regulation): Regulates the processing of personal data, relevant for customer data handling in the distribution chain.
Danish Intermediary Liability Act (Formidleransvarslov): May be relevant for online distribution and digital platforms.
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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