The Termination of Agency Agreement is a crucial document used when parties wish to formally end their commercial agency relationship in Malta. It is particularly important as it must comply with both Maltese Commercial Code requirements and EU Directive 86/653/EEC, which provides specific protections for commercial agents. This document is typically used when either the principal or agent wishes to end their relationship, whether by mutual consent or unilateral decision, and requires careful consideration of mandatory compensation or indemnity provisions under Maltese law. The agreement should address all aspects of the termination, including commission settlements, customer transitions, and post-termination obligations, while ensuring compliance with both local and EU regulatory requirements. Given Malta's position as an EU member state and its significance as a commercial hub, this document often has international business implications.
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1. Parties: Identification of the Principal and Agent, including full legal names, registration details, and addresses
2. Background: Brief recital of the original agency agreement details and the circumstances leading to termination
3. Definitions: Definitions of key terms used throughout the agreement, including references to the original agency agreement
4. Termination Date: Clear specification of when the agency agreement will terminate or confirmation of past termination date
5. Acknowledgment of Termination: Mutual acknowledgment of the termination and its basis (e.g., mutual agreement, notice period, breach)
6. Final Commissions and Payments: Details of final commission calculations, payment terms, and settlement of outstanding amounts
7. Handover of Business: Requirements for the transfer of customers, ongoing business, and business materials
8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
9. Return of Property: Requirements for returning company property, documents, and materials
10. Post-Termination Restrictions: Non-compete and non-solicitation provisions that survive termination
11. Release and Waiver: Mutual release of claims and obligations, subject to the terms of the termination agreement
12. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction for disputes
1. Compensation or Indemnity: Required when the agent is entitled to compensation or indemnity under Maltese law, based on EU Directive requirements
2. Transition Services: Include when the agent needs to provide transition support after termination
3. Customer Communications: Include when specific arrangements are needed for communicating the termination to customers
4. Dispute Resolution: Alternative dispute resolution procedures if parties wish to include mediation or arbitration options
5. Tax Provisions: Include when there are specific tax implications that need to be addressed
6. Intellectual Property Rights: Include when there are specific IP rights that need to be addressed post-termination
7. Force Majeure: Include if termination is related to force majeure events
8. Surviving Representatives: Include when certain representative arrangements need to continue post-termination
1. Schedule 1 - Original Agency Agreement: Copy or details of the original agency agreement being terminated
2. Schedule 2 - Final Commission Calculations: Detailed breakdown of final commission calculations and payment terms
3. Schedule 3 - Customer List: List of customers and ongoing transactions affected by the termination
4. Schedule 4 - Handover Checklist: Detailed list of items, documents, and materials to be returned or transferred
5. Schedule 5 - Post-Termination Obligations: Detailed list of ongoing obligations and restrictions after termination
6. Appendix A - Communication Template: Template for customer communications regarding the termination
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Distribution
Import/Export
Financial Services
Insurance
Real Estate
Technology
Pharmaceuticals
Consumer Goods
Industrial Equipment
Automotive
Marine
Tourism
Professional Services
Relevant Teams
Legal
Commercial
Sales
Business Development
Operations
Compliance
Contract Administration
Corporate Secretariat
Risk Management
International Business
Relevant Roles
Commercial Director
Sales Director
Business Development Manager
Legal Counsel
Contracts Manager
Chief Executive Officer
Managing Director
Operations Director
Sales Manager
Agency Manager
Compliance Officer
General Counsel
Commercial Manager
Distribution Manager
Regional Manager
Country Manager
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