When negotiating their agency or distribution contract, the producer (P) and the agent/distributor (A/D) might want to recognise that they will part company at some time, and the desirability of having an orderly termination when they do.
It might be along these lines:
- full period of notice to be given. P to compensate A/D if shorter notice required by P, and vice versa
- agreement as to what commissions, if any, A/D will receive in respect of orders completed after termination
- P to buy back A/D's stock, or mutual stock options (i.e. P to have option to require A/D to sell him his stock, A/D to have option to require P to purchase his stock), on agreed terms
- P to pay A/D compensation representing a fair share of any goodwill generated during the relationship
- A/D to accept restrictive covenants in return and ....
The Knowledge Bank is for members only
Please contact us
if you would like further information
Please do not hesitate to contact us if you have a specific query.
Site contents published subject to this disclaimer and these conditions of use