Sub Agency Agreement Template for Denmark

The Sub Agency Agreement is essential when a principal agent wishes to extend their distribution network by appointing sub-agents while maintaining control over the distribution chain. This document is particularly relevant in scenarios where geographical expansion, market penetration, or specialized expertise is needed but direct agent-principal relationships are not practical or desired. The agreement, governed by Danish law, must comply with the Danish Commercial Agents Act and related legislation, including EU directives. It typically includes detailed provisions on territory restrictions, commission structures, reporting requirements, and performance standards. The document is crucial for businesses operating in Denmark or choosing Danish law as their governing law, as it provides a clear framework for delegated agency relationships while protecting the interests of all parties involved.

1. Parties: Identification of the principal agent and sub-agent, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including reference to the main agency agreement and basis for sub-agency appointment

3. Definitions: Definitions of key terms used throughout the agreement, including Territory, Products, Principal, Main Agency Agreement, etc.

4. Appointment and Scope: Terms of sub-agent appointment, scope of authority, and territorial restrictions

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

6. Sub-Agent's Rights and Obligations: Detailed responsibilities, reporting requirements, and performance standards

7. Principal Agent's Rights and Obligations: Support to be provided, information sharing, and oversight responsibilities

8. Commission and Payment Terms: Commission structure, calculation method, payment terms, and any minimum performance requirements

9. Intellectual Property Rights: Usage rights for trademarks, logos, and other IP during the sub-agency

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term

12. Indemnification and Liability: Mutual indemnification provisions and limitation of liability

13. General Provisions: Standard clauses including notices, amendments, assignment, severability, and entire agreement

14. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes