Exclusive Territorial Agreement

Exclusive Territorial Agreement Template for Austria

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Key Requirements PROMPT example:

Exclusive Territorial Agreements

"I need an Exclusive Territorial Agreement for my Austrian manufacturing company to appoint an exclusive distributor for our industrial equipment in Germany and Switzerland, with minimum purchase requirements and performance targets starting from March 2025."

Document background

Exclusive Territorial Agreements are essential legal instruments used to establish and regulate exclusive distribution relationships within specific geographic territories. This document is particularly relevant when a supplier wishes to grant exclusive distribution rights to a single distributor in a defined Austrian or European territory. The agreement must carefully balance commercial objectives with legal compliance, especially regarding EU competition law and the Austrian legal framework. When drafting Exclusive Territorial Agreements under Austrian jurisdiction, special attention must be paid to the EU Vertical Block Exemption Regulation (VBER) and Austrian competition laws. The document typically includes detailed provisions on territorial scope, exclusivity terms, performance obligations, and compliance requirements, making it suitable for businesses seeking to establish structured distribution networks while maintaining legal compliance.

Suggested Sections

1. Parties: Identification of the contracting parties - typically the supplier/manufacturer and the distributor

2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the arrangement

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

4. Grant of Rights: Specific territorial rights granted, scope of exclusivity, and any reserved rights

5. Territory Definition: Precise geographical definition of the exclusive territory

6. Term and Renewal: Duration of the agreement and conditions for renewal

7. Obligations of Supplier: Supplier's commitments regarding product supply, support, and territorial protection

8. Obligations of Distributor: Distributor's commitments including marketing, minimum purchase requirements, and territory development

9. Prices and Payment Terms: Product pricing structure, payment conditions, and any price adjustment mechanisms

10. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP in the territory

11. Competition Law Compliance: Provisions ensuring compliance with EU and Austrian competition laws

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. Post-Termination Obligations: Parties' obligations after agreement ends, including handling of remaining stock

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

15. General Provisions: Standard boilerplate clauses including force majeure, notices, and entire agreement

Optional Sections

1. Performance Targets: Specific sales targets and performance metrics - include when supplier wants to ensure minimum performance levels

2. Marketing and Promotion: Detailed marketing obligations and cost sharing - include for agreements requiring specific marketing commitments

3. Training and Support: Technical training and support provisions - include for technical or complex products

4. Non-Compete Obligations: Restrictions on competing activities - include when permitted under competition law and commercially necessary

5. Product Development: Future product development and territory-specific modifications - include for evolving product lines

6. Data Protection: GDPR compliance provisions - include when personal data processing is involved

7. Insurance Requirements: Specific insurance coverage obligations - include for high-value or high-risk products

8. Bank Guarantee: Financial security requirements - include for new or high-risk business relationships

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory Map: Detailed map and/or description of the exclusive territory boundaries

3. Schedule 3 - Performance Targets: Specific sales targets, quotas, and measurement criteria

4. Schedule 4 - Trademark Usage Guidelines: Rules and specifications for use of supplier's trademarks

5. Schedule 5 - Technical Requirements: Technical specifications and compliance requirements for product handling

6. Appendix A - Approved Sub-distributors: List of pre-approved sub-distributors if permitted

7. Appendix B - Service Level Agreement: Detailed service levels and response times for support services

8. Appendix C - Compliance Checklist: Competition law compliance requirements and checklist

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 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

Industrial Equipment

Automotive

Technology

Pharmaceuticals

Medical Devices

Food and Beverage

Luxury Goods

Electronics

Chemical Products

Machinery and Equipment

Software and IT

Retail

Fashion and Apparel

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Supply Chain

Distribution

Contract Management

International Trade

Corporate Affairs

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Distribution Manager

Territory Manager

Contract Manager

Operations Director

Supply Chain Manager

Regional Sales Manager

General Counsel

Managing Director

Chief Commercial Officer

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Austrian law-governed agreement establishing exclusive distribution rights within a defined territory, compliant with EU and Austrian regulations.

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Authors

Alex Denne

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