The Non-Exclusive Distribution Agreement is essential for businesses looking to expand their market reach while maintaining flexibility in their distribution strategy. This document is commonly used when a supplier wants to establish a distribution network in Canada without granting territorial exclusivity, allowing for multiple distributors to operate in the same region. The agreement covers crucial aspects such as product ordering, delivery terms, pricing structures, intellectual property rights, and compliance with Canadian regulations. It's particularly valuable for suppliers entering new markets or expanding their distribution networks, and for distributors seeking to add new product lines to their portfolio. The non-exclusive nature provides suppliers with the flexibility to work with multiple distributors while still offering distributors sufficient protection and defined rights to make the business relationship commercially viable.
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1. Parties: Identification and details of the supplier/manufacturer and distributor
2. Background: Context of the agreement and brief description of the parties' businesses
3. Definitions: Defined terms used throughout the agreement
4. Appointment and Territory: Scope of distributor appointment and defined geographic territory
5. Non-Exclusivity: Clear statement of non-exclusive nature of the appointment
6. Term and Termination: Duration of agreement and termination provisions
7. Orders and Delivery: Process for placing orders and delivery terms
8. Prices and Payment: Pricing structure, payment terms, and currency
9. Obligations of Distributor: Key responsibilities and commitments of the distributor
10. Obligations of Supplier: Key responsibilities and commitments of the supplier
11. Intellectual Property: Usage rights and restrictions regarding trademarks and other IP
12. Confidentiality: Protection of confidential information
13. Warranties and Indemnities: Product warranties and mutual indemnification provisions
14. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Minimum Purchase Requirements: Include when supplier requires minimum order quantities or values
2. Marketing and Promotion: Include when specific marketing obligations are required
3. Training Requirements: Include when product complexity requires specific training
4. After-Sales Service: Include when distributor must provide maintenance or support services
5. Insurance Requirements: Include when specific insurance coverage is required
6. Data Protection: Include when personal data processing is involved
7. Export Controls: Include for international distribution or restricted products
8. Non-Compete: Include when competitive restrictions are desired
9. Sub-Distributors: Include when appointment of sub-distributors is permitted
1. Schedule A - Products: Detailed list of products covered by the agreement
2. Schedule B - Territory: Detailed description or map of the distribution territory
3. Schedule C - Prices: Price list and discount structure
4. Schedule D - Minimum Purchase Requirements: Specific targets and requirements if applicable
5. Schedule E - Technical Specifications: Product specifications and technical requirements
6. Schedule F - Service Level Requirements: Detailed service standards and metrics
7. Schedule G - Trademark Usage Guidelines: Specific rules for using supplier's trademarks
8. Schedule H - Reporting Requirements: Templates and requirements for periodic reports
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