Intercompany Distribution Agreement for Denmark

Intercompany Distribution Agreement Template for Denmark

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Intercompany Distribution Agreement

I need an Intercompany Distribution Agreement for our Danish parent company to appoint our German subsidiary as the exclusive distributor of our industrial machinery products in Germany, Austria, and Switzerland, with the agreement to commence from March 1, 2025.

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What is a Intercompany Distribution Agreement?

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.

What sections should be included in a Intercompany Distribution Agreement?

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

What sections are optional to include in a Intercompany Distribution Agreement?

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

What schedules should be included in a Intercompany Distribution Agreement?

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

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Consumer Goods

Pharmaceuticals

Technology

Automotive

Industrial Equipment

Electronics

Food and Beverage

Chemical Products

Medical Devices

Retail

Software and Digital Products

Machinery and Equipment

Relevant Teams

Legal

Commercial

Supply Chain

Finance

Operations

Compliance

Tax

Sales

Business Development

Distribution

International Trade

Corporate Governance

Risk Management

Relevant Roles

Legal Counsel

Commercial Director

Supply Chain Manager

Chief Financial Officer

Head of Distribution

Compliance Officer

Tax Director

Operations Manager

Sales Director

General Manager

Group Commercial Manager

Transfer Pricing Manager

Business Development Director

Regional Manager

Managing Director

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