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Sub Distribution Agreement

Sub Distribution Agreement Template for Germany

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Key Requirements PROMPT example:

Sub Distribution Agreement

"I need a Sub Distribution Agreement governed by German law for my automotive parts distribution business, where I'll appoint an exclusive sub-distributor for Bavaria and Baden-Württemberg, with minimum purchase requirements of €500,000 per quarter starting March 2025."

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Document background
The Sub Distribution Agreement is essential when a main distributor, having rights from a manufacturer or supplier, wishes to appoint additional distributors to expand market reach in Germany or other specified territories. This document type is crucial in complex distribution networks where multiple layers of distribution are required for effective market penetration. The agreement must comply with German commercial law, particularly the German Commercial Code (HGB) and competition laws. It typically includes detailed provisions on territory rights, product handling, pricing structures, and reporting requirements. The document is particularly important in industries where controlled distribution channels are necessary for maintaining product quality, brand reputation, and service standards. Sub Distribution Agreements under German law require careful attention to competition law compliance, especially regarding territorial restrictions and pricing mechanisms.
Suggested Sections

1. Parties: Identification of the main distributor and sub-distributor with full legal details

2. Background: Context of the agreement, including reference to the main distribution agreement and authorization to sub-distribute

3. Definitions: Key terms used throughout the agreement, including Products, Territory, Principal Agreement, etc.

4. Appointment and Territory: Scope of appointment, exclusivity/non-exclusivity, and defined territory for sub-distribution

5. Rights and Obligations: Detailed responsibilities of both parties, including sales targets, marketing efforts, and reporting requirements

6. Product Orders and Delivery: Process for ordering, delivery terms, acceptance procedures, and related logistics

7. Prices and Payment Terms: Pricing structure, payment conditions, currency, and invoice requirements

8. Intellectual Property Rights: Usage rights for trademarks, branding guidelines, and IP protection measures

9. Confidentiality: Protection of confidential information and trade secrets

10. Term and Termination: Duration of agreement, renewal terms, and termination conditions

11. Post-Termination Obligations: Obligations and restrictions after agreement termination

12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

Optional Sections

1. Minimum Purchase Requirements: Used when specific purchase quotas or targets are required

2. Training and Support: Include when technical products require specific training or ongoing support

3. Quality Control: Important for products requiring specific storage, handling, or quality standards

4. Insurance Requirements: Detailed insurance obligations when dealing with high-value or regulated products

5. Data Protection: Required when personal data processing is involved in the distribution process

6. Export Control: Necessary for products subject to export restrictions or international trade regulations

7. Non-Competition: Used when restricting sub-distributor from competing activities

8. Warranty and Service Requirements: Include for products requiring after-sales service or warranty support

Suggested Schedules

1. Products Schedule: Detailed list of products covered by the agreement

2. Price List: Current pricing structure and conditions

3. Territory Definition: Detailed description or map of the authorized territory

4. Service Level Requirements: Specific performance metrics and service standards

5. Marketing Guidelines: Branding and marketing requirements

6. Minimum Stock Requirements: Required inventory levels and storage conditions

7. Reporting Templates: Standard forms for regular reporting requirements

8. Technical Specifications: Product technical details and handling requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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








































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Relevant Industries

Consumer Goods

Electronics

Automotive

Industrial Equipment

Medical Devices

Software and Technology

Pharmaceutical

Food and Beverage

Luxury Goods

Construction Materials

Telecommunications

Chemical Products

Relevant Teams

Legal

Sales

Commercial Operations

Distribution

Supply Chain

Compliance

Business Development

Partner Management

Operations

Contract Administration

Relevant Roles

Commercial Director

Sales Director

Distribution Manager

Channel Manager

Legal Counsel

Contracts Manager

Business Development Manager

Operations Director

Supply Chain Manager

Compliance Officer

Territory Manager

Partner Relations Manager

Commercial Operations Manager

Chief Commercial Officer

Regional Sales Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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