Distribution agreement

A standard document primarily designed for appointing an exclusive distributor in the UK in respect of a particular territory or a particular customer group. The agreement is intended to satisfy the requirements of the EU vertical agreements block exemption (Regulation 330/2010/EU) and, in particular, is drafted on the assumption that the supplier's share of the market on which it supplies the relevant goods or services does not exceed 30 per cent; the purchaser's share of the market on which it buys those goods or services does not exceed 30 per cent; and the distributor does not compete with the supplier at the level of the production or manufacture of the products covered by the distribution agreement. The agreement may also be adapted for situations where the distributor is sole or non-exclusive, but is not intended for use as a selective distribution arrangement.

Alex Nourry, Dan Harrison and Jamie Andrew, Clifford Chance LLP

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