The Sub Distribution Agreement is a crucial commercial contract used when a primary distributor wishes to expand their distribution network by appointing sub-distributors in specific territories within Canada. This document is essential for businesses operating multi-tiered distribution networks and requires careful consideration of both federal and provincial laws, including competition regulations, consumer protection legislation, and industry-specific requirements. The agreement typically outlines the relationship between the primary distributor and sub-distributor, including rights to distribute products, territorial limitations, pricing structures, performance expectations, and compliance obligations. It's particularly important in industries with complex distribution chains or where specialized handling of products is required. The document should be tailored to address specific provincial requirements while maintaining consistency with federal Canadian laws governing distribution relationships.
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1. Parties: Identification of all contracting parties including primary distributor and sub-distributor
2. Background: Context of the agreement, relationship between parties, and primary distribution rights
3. Definitions: Defined terms used throughout the agreement
4. Appointment and Territory: Scope of sub-distribution rights and defined territory
5. Products: Description of products covered by the agreement
6. Term and Termination: Duration of agreement and termination provisions
7. Orders and Delivery: Process for ordering, delivery terms, and logistics
8. Prices and Payment: Pricing structure, payment terms, and invoicing requirements
9. Obligations of Sub-Distributor: Key responsibilities and performance requirements
10. Marketing and Promotion: Requirements for marketing and promoting the products
11. Intellectual Property: Usage rights for trademarks, brands, and other IP
12. Confidentiality: Protection of confidential information
13. Warranties and Indemnities: Product warranties and mutual indemnification provisions
14. Compliance with Laws: Regulatory compliance requirements
15. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Exclusivity: Terms of exclusive distribution rights if applicable
2. Minimum Purchase Requirements: Minimum order quantities or revenue targets if required
3. Performance Targets: Specific KPIs and consequences of not meeting them
4. Training Requirements: Product training and certification requirements
5. After-Sales Service: Requirements for providing customer support and service
6. Insurance Requirements: Specific insurance coverage requirements
7. Data Protection: Specific provisions for handling personal data if relevant
8. Export Controls: Requirements if products are subject to export regulations
9. Environmental Compliance: Special environmental requirements for certain products
1. Schedule A - Products: Detailed list of products covered by the agreement
2. Schedule B - Territory: Detailed description or map of authorized territory
3. Schedule C - Prices: Price list and discount structure
4. Schedule D - Minimum Requirements: Detailed minimum purchase or performance requirements
5. Schedule E - Marketing Guidelines: Brand guidelines and marketing requirements
6. Schedule F - Service Level Requirements: Detailed service level agreements and metrics
7. Schedule G - Technical Specifications: Product specifications and technical requirements
8. Schedule H - Reporting Templates: Required reporting formats and templates
9. Appendix 1 - Contact Details: Key contacts for both parties
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