The Supplier Distribution Agreement is a crucial commercial contract used when a company wishes to appoint another entity to distribute its products in Belgium or from Belgium to other territories. This agreement type is particularly significant under Belgian law, which provides specific protections for distributors, including mandatory notice periods and potential goodwill compensation upon termination. The document typically includes detailed provisions on territorial rights, performance requirements, pricing structures, and intellectual property rights. Belgian distribution law is known for being more protective of distributors compared to many other jurisdictions, making it essential to carefully structure these agreements to ensure compliance with both Belgian national laws and EU regulations. The agreement serves as the primary framework for the commercial relationship between supplier and distributor, outlining their respective rights, obligations, and operational procedures.
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1. Parties: Identification of the supplier and distributor, including full legal names, registration details, and registered addresses
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the distribution arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Appointment and Territory: Terms of distributor appointment (exclusive/non-exclusive) and definition of the territorial scope
5. Distributor Obligations: Core obligations including sales targets, marketing requirements, reporting obligations, and service standards
6. Supplier Obligations: Supplier's commitments regarding product supply, support, training, and marketing assistance
7. Ordering and Delivery: Process for ordering products, delivery terms, and acceptance procedures
8. Prices and Payment: Pricing structure, payment terms, and mechanisms for price adjustments
9. Intellectual Property Rights: License to use supplier's IP, restrictions, and protection obligations
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration of agreement, renewal provisions, and termination rights (compliance with Belgian law)
12. Post-Termination: Obligations and rights after termination, including inventory handling and compensation requirements
13. General Provisions: Standard legal provisions including governing law, jurisdiction, entire agreement, and amendments
1. Minimum Purchase Requirements: Specific minimum purchase obligations, used when supplier requires volume commitments
2. E-commerce Provisions: Rules for online sales, if distributor is permitted to sell online
3. Non-Compete Obligations: Restrictions on competing activities, subject to EU competition law limitations
4. Product Warranties: Specific warranty terms if different from standard terms
5. Data Protection: GDPR compliance provisions if personal data is processed
6. Import/Export Controls: Specific provisions for cross-border trade if distribution involves multiple countries
7. Marketing and Promotion: Detailed marketing obligations and cost-sharing arrangements if significant marketing activity is required
8. Training Requirements: Specific training obligations if products require technical expertise
9. Service Level Requirements: Detailed service standards if after-sales service is a key component
1. Schedule 1 - Products: List of products covered by the agreement, including specifications and prices
2. Schedule 2 - Territory: Detailed description of the territorial scope, including any excluded areas
3. Schedule 3 - Minimum Purchase Targets: Detailed sales targets and measurement periods
4. Schedule 4 - Commission Structure: Detailed pricing and commission calculations
5. Schedule 5 - Technical Requirements: Technical specifications and standards for product handling and storage
6. Schedule 6 - Trademark Usage Guidelines: Guidelines for use of supplier's trademarks and branding
7. Schedule 7 - Reporting Templates: Standard forms for regular reporting requirements
8. Schedule 8 - Service Level Agreement: Detailed service level requirements and measurements
9. Appendix A - Standard Terms and Conditions: Standard terms applying to all product sales
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