The Sole Distributor Agreement is essential for businesses seeking to establish exclusive distribution channels in Belgium or under Belgian law. This document is particularly significant due to Belgium's specific legislative framework protecting distributors, including the Law of 27 July 1961 on unilateral termination of exclusive distribution agreements. The agreement covers crucial aspects such as territory definition, exclusivity rights, performance requirements, and termination provisions, while ensuring compliance with both Belgian and EU competition laws. It's typically used when a supplier wants to grant exclusive rights to a distributor in a specific territory, requiring careful consideration of mandatory notice periods and potential termination compensation under Belgian law. The agreement must balance commercial flexibility with the strict requirements of Belgian distribution law, making it a critical document for establishing and managing exclusive distribution relationships.
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1. Parties: Identification of the supplier and distributor with full legal details
2. Background: Context of the agreement including supplier's business, products, and desire to appoint distributor
3. Definitions: Defined terms including Products, Territory, Intellectual Property Rights, and other key terms
4. Appointment and Scope: Grant of exclusive distribution rights and territorial scope
5. Term and Termination: Duration, renewal provisions, and termination rights compliant with Belgian law requirements
6. Supplier Obligations: Obligations including product supply, technical support, and marketing assistance
7. Distributor Obligations: Core obligations including promotion, minimum purchase requirements, and territory development
8. Prices and Payment Terms: Pricing structure, payment terms, and price modification procedures
9. Intellectual Property Rights: License to use trademarks and protection of IP rights
10. Confidentiality: Protection of confidential information and trade secrets
11. Competition Law Compliance: Provisions ensuring compliance with EU and Belgian competition laws
12. Post-Termination: Rights and obligations after termination, including compensation under Belgian law
13. General Provisions: Standard clauses including notices, assignment, and entire agreement
1. Marketing and Promotion Requirements: Detailed marketing obligations when specific promotional activities are required
2. Training Requirements: Include when technical products require specific training programs
3. After-Sales Service: Required for technical products needing maintenance or repair services
4. Performance Targets: Include when specific sales targets or KPIs are part of the agreement
5. Sub-distributors: Include when the distributor may appoint sub-distributors
6. Data Protection: Required when personal data processing is involved
7. Insurance Requirements: Include when specific insurance coverage is required
8. Anti-Corruption Compliance: Include for international distribution arrangements
1. Products Schedule: Detailed list and specifications of products covered by the agreement
2. Territory Schedule: Detailed definition of the exclusive territory, including any excluded accounts
3. Price List: Current prices and discounts structure
4. Minimum Purchase Requirements: Annual or periodic minimum purchase quantities or values
5. Technical Requirements: Technical specifications and quality standards
6. Trademark Usage Guidelines: Rules for using supplier's trademarks and branding
7. Service Level Requirements: Required service levels and response times
8. Reporting Templates: Standard formats for required periodic reports
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