Sales Rep Agreement

Sales Rep Agreement Template for Denmark

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Document background

This Sales Rep Agreement template is designed for use under Danish jurisdiction when a company wishes to engage an external sales representative to promote and sell its products or services. The document complies with the Danish Commercial Agents Act (Handelsagentloven) and related EU directives, making it suitable for both domestic and cross-border arrangements within the EU. It should be used when a company needs to formalize a relationship with an independent sales representative, defining crucial elements such as territory rights, commission structures, performance expectations, and termination provisions. The agreement includes comprehensive protections for both parties and addresses key aspects of the commercial relationship, including confidentiality, intellectual property rights, and post-termination obligations.

Suggested Sections

1. Parties: Identification of the Principal company and the Sales Representative, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the Principal's business, and purpose of engaging the Sales Representative

3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Customers', 'Commission', etc.

4. Appointment and Territory: Formal appointment of the Sales Representative and definition of the geographical territory or market segment

5. Rights and Obligations of the Sales Representative: Core responsibilities, reporting requirements, and performance standards

6. Principal's Obligations: Support, information, and resources to be provided by the Principal

7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission

8. Intellectual Property Rights: Usage rights for Principal's trademarks, logos, and other IP during the agreement

9. Confidentiality: Protection of business secrets and confidential information

10. Term and Termination: Duration of agreement, notice periods, and grounds for termination

11. Post-Termination Obligations: Obligations after agreement ends, including return of materials and final commission payments

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

Optional Sections

1. Non-Compete Clause: Restrictions on competing activities during and after the agreement, used when protecting market position is crucial

2. Data Protection: GDPR compliance measures, needed when personal data processing is involved

3. Insurance Requirements: Specific insurance coverage requirements, relevant for high-value products or regulated industries

4. Performance Targets: Specific sales targets and consequences of meeting/missing them, used for performance-based relationships

5. Training and Support: Detailed provisions for training and ongoing support, important for technical or complex products

6. Expenses and Reimbursement: Rules for expense claims and reimbursement, relevant when significant travel or promotional expenses are expected

7. Sub-Agents: Rights and conditions for appointing sub-agents, used when allowing delegation of duties

Suggested Schedules

1. Schedule 1 - Product List: Detailed list of products/services the Sales Representative is authorized to sell

2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product or customer type

3. Schedule 3 - Territory Description: Detailed description of geographical territory or customer segments

4. Schedule 4 - Reporting Templates: Standard forms for sales reports and activity reporting

5. Schedule 5 - Sales Targets: Specific sales targets and measurement periods

6. Appendix A - Principal's Branding Guidelines: Guidelines for use of Principal's branding and marketing materials

7. Appendix B - Code of Conduct: Principal's ethical guidelines and business conduct requirements

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