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International Distribution and Sales Representative Agreements
Nicole Snyder
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Important Information
This presentation is similar to any other seminar designed to provide general information on pertinent legal topics. The statements made and any materials distributed as part of this presentation are provided for educational purposes only. They do not constitute legal advice nor do they necessarily reflect the views of Holland & Hart LLP or any of its attorneys other than the speakers. This presentation is not intended to create an attorney-client relationship between you and Holland & Hart LLP. If you have specific questions as to the application of the law to your activities, you should seek the advice of your legal counsel. All Presentations and Other Materials © Holland & Hart LLP 2016
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Int’l Distribution & Sales Representative Agreements
Title to Goods Purchaser Contracts What’s the difference?
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Pros and Cons of Distribution Agreements
Risk on distributor Potential tax advantages Pros Lack of control Inability to control pricing in many jurisdictions Cons
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Pros and Cons of Agency Agreements
More risk on supplier Control – pricing, terms, contract Pros Could be tax disadvantages May need to navigate labor laws Cons
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Five Top Tips for Both Types of Agreements
Consider a term sheet Simplify Appoint local legal counsel if necessary Anticipate most likely disputes Consider termination scenario
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Distribution Agreements – Basic Structure
Appointment of distributor. Intellectual property Product liability and insurance. Distributor’s duties. Supply of products. Duration and termination. Supplier’s undertakings. Confidentiality. Prices and payment. Third party rights. Advertising and promotion. Governing Law. Dispute Resolution. Compliance with laws and regulation.
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Distribution Agreements – Key Issue #1
Exclusivity Clause
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Distribution Agreements – Key Issue #2
Title, Payment, and Insurance
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Distribution Agreements – Key Issue #3
Termination
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Distribution Agreements – Key Issue #4
Authority to Execute
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Distribution Agreements – Key Issue #5
Competition Clauses and Laws
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Agency Agreements – Basic Structure
Products Territory Functions/Authority of the Agent Acceptance of Orders Commission Structure/Timing Exclusivity or Non-exclusivity Term Termination Noncompetition
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Agency Agreements – Key Issue #1
EU Regulation
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Agency Agreements – Key Issue #2
Competition Law
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Agency Agreements – Key Issue #3
Compensation
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Agency Agreements – Key Issue #4
Tax
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Agency Agreements – Key Issue #5
Non-Compete Clauses
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