The Agency And Distribution Agreement is a crucial commercial contract used when a business wishes to expand its market presence in Belgium or internationally through agents or distributors. This document is particularly significant under Belgian law, which provides some of the strongest protections for agents and distributors in Europe. The agreement must comply with mandatory provisions of Belgian legislation, including the Law of 1995 for agency relationships and the Law of 1961 for distribution agreements, which regulate notice periods, termination indemnities, and other key aspects of the relationship. The document typically includes detailed provisions on territory, exclusivity, performance requirements, commission structures, and both parties' obligations, while ensuring compliance with both Belgian and EU competition law requirements. It's essential for businesses establishing or formalizing their distribution networks in Belgium or using Belgian law as their governing law.
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1. Parties: Identification of the principal/supplier and agent/distributor, including full legal names, registration details, and addresses
2. Background: Context of the agreement, relationship between parties, and general business objectives
3. Definitions: Definitions of key terms used throughout the agreement, including Territory, Products, and Commission/Margins
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and territorial scope
5. Duration and Term: Initial term, renewal provisions, and termination notice periods as per Belgian law
6. Rights and Obligations of the Agent/Distributor: Detailed responsibilities, performance standards, and reporting requirements
7. Rights and Obligations of the Principal/Supplier: Support, product supply, and information provision obligations
8. Financial Terms: Commission/margin structure, payment terms, currency, and accounting obligations
9. Intellectual Property Rights: Usage rights for trademarks, brands, and other IP during the agreement
10. Confidentiality: Protection of confidential information and trade secrets
11. Termination: Grounds for termination, notice requirements, and consequences including mandatory indemnities under Belgian law
12. Post-Termination: Obligations after termination, including return of materials and ongoing confidentiality
13. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments
1. Non-Compete Obligations: Used when parties want to restrict competitive activities during and after the agreement, subject to Belgian and EU competition law
2. Minimum Performance Requirements: Include when setting specific sales targets or performance metrics
3. Product Training and Support: Required for technical products or where specific product knowledge is essential
4. Marketing and Promotion: Include when specific marketing obligations or cooperative advertising are required
5. Insurance Requirements: Used when specific insurance coverage is required for high-value or high-risk products
6. Data Protection: Required when personal data processing is involved, ensuring GDPR compliance
7. Stock Requirements: Include for distribution agreements where minimum stock levels are required
8. Customer Service Standards: Used when specific customer service levels need to be maintained
9. Compliance with Laws: Include detailed compliance obligations for regulated industries or products
1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices
2. Schedule 2 - Territory: Detailed definition of geographical territory and any excluded areas
3. Schedule 3 - Commission Structure/Price Lists: Detailed commission calculations or pricing structures, including any variations by product or customer type
4. Schedule 4 - Performance Targets: Specific sales targets or other performance metrics
5. Schedule 5 - Technical Requirements: Technical specifications, quality standards, and compliance requirements
6. Schedule 6 - Reporting Templates: Standard forms for regular reporting and performance monitoring
7. Schedule 7 - Marketing Guidelines: Brand guidelines and marketing requirements
8. Appendix A - Standard Operating Procedures: Detailed procedures for order processing, returns, and customer service
9. Appendix B - Service Level Agreements: Specific service standards and response times
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