2016.ANA METIN ingilizce.01

Usage and Repurchase of Stocks

Within the ordinary course of business, agencies do not hold

stocks. With regard to stocks that are held by distributors, it is up to the

parties whether they will continue to be used by the distributor or

repurchased by the principal. In the event of repurchase, it is important

to explicitly specify the conditions of the goods that are subject to

repurchase in the termination agreement; i.e. whether or not they are

new, in original packaging, etc. Another item that should be agreed

upon by the parties is the repurchase price subject to the condition of

the goods, provided that the principles for the determination of the

repurchase price have not been regulated under the distribution con-

tract.

Cancellation of Data and Confidentiality

During the period of the agency and distribution relationships, it is

usual that confidential information and documentation of the principal

are shared with the agent or distributor for conduct of the business.

Accordingly, the termination agreement should include provisions reg-

ulating the usage or cancellation of such information, documents and

materials, and the data and documents that are in the possession of the

receiver should be either cancelled or returned to its owner. The parties

may agree to determine the confidentiality period following the termi-

nation, provided that such confidentiality obligation is not restricted

under the applicable competition rules. It is stated under the Turkish

Competition Authority’s Guidelines on Vertical Agreements

that the

usage and disclosure of the non-public know-how may be restricted for

an indefinite period of time. EU Commission Regulation No. 330/2010

NEWSLETTER 2015

Guideline on Vertical Agreements was published on June 3, 2009. The provision regarding con-

fidential information is in Paragraph 40 of the Guideline. To find the English version of this

Guideline see:

Dikey+Anla%C5%9Fmalara+%C4%B0li%C5%9Fkin+K%C4%B1lavuz.pdf (accessed on:

09.07.2015).

EU Commission Regulation No. 330/2010 on the Application of Article 101(3) of the Treaty on

the Functioning of the European Union to Categories of Vertical Agreements and Concerted

Practices was published on April 23, 2010. The provision regarding the confidentiality of know-

how is in Article 5/3 of the Regulation. To find the English version of this Regulation see:

32010R0330&from=EN

(accessed on: 09.07.2015).