The Value Added Reseller Agreement is essential for businesses seeking to expand their distribution network in the Philippines through partners who enhance or add value to their products or services. This document is particularly relevant when the principal company wants to maintain control over their product's distribution while leveraging local expertise and additional services. The agreement must comply with Philippine laws, including the Retail Trade Liberalization Act and Consumer Act, while establishing clear guidelines for product modification, service delivery, and customer support. It's commonly used in technology and manufacturing sectors where products may require customization, integration, or additional services before reaching end users. The agreement includes specific provisions for pricing structures, territory rights, service level requirements, and intellectual property protection, making it more comprehensive than standard distribution agreements.
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1. Parties: Identifies and provides details of the principal company and the reseller
2. Background: Sets out the context of the agreement, including the principal's business and the reseller's intended role
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Territory: Defines the nature of appointment (exclusive/non-exclusive) and geographical territory
5. Rights and Obligations of Reseller: Details the reseller's key responsibilities, including sales targets, marketing, and customer service
6. Rights and Obligations of Principal: Outlines the principal's commitments regarding product supply, support, and training
7. Ordering and Delivery: Procedures for ordering products, delivery terms, and logistics
8. Prices and Payment Terms: Pricing structure, payment terms, and invoicing procedures
9. Intellectual Property Rights: Protection and usage of principal's IP, including trademarks and marketing materials
10. Confidentiality: Protection of confidential information exchanged between parties
11. Term and Termination: Duration of agreement and circumstances for termination
12. Post-Termination: Obligations and procedures following agreement termination
13. General Provisions: Standard legal clauses including notices, assignment, and governing law
1. Minimum Purchase Requirements: Used when the principal requires minimum purchase volumes or revenue targets
2. Marketing and Promotion: Detailed when specific marketing obligations or cooperative advertising are required
3. Training Requirements: Include when technical training or certification is necessary for reselling products
4. Product Customization: Required when reseller is permitted to customize or modify products
5. End User Support: Include when reseller has specific customer support obligations
6. Data Protection: Required when personal data processing is involved in the business relationship
7. Non-Competition: Used when restricting reseller from selling competing products
8. Insurance Requirements: Include when specific insurance coverage is required
9. Source Code Escrow: Used for software products where source code protection is needed
1. Schedule 1 - Products and Services: Detailed list of products and services authorized for resale
2. Schedule 2 - Price List: Current pricing structure and reseller discounts
3. Schedule 3 - Territory: Detailed description of geographical territory and any exclusions
4. Schedule 4 - Service Level Requirements: Specific performance metrics and service standards
5. Schedule 5 - Technical Requirements: Technical specifications and integration requirements
6. Schedule 6 - Marketing Guidelines: Branding requirements and approved marketing practices
7. Appendix A - Report Templates: Standard formats for sales and performance reporting
8. Appendix B - Operating Procedures: Detailed procedures for order processing and support
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software and SaaS
Telecommunications
Electronics and Hardware
Manufacturing
Industrial Equipment
Medical Devices
Automotive
Consumer Electronics
Professional Services
Relevant Teams
Legal
Sales
Channel Partner Management
Business Development
Operations
Compliance
Commercial
Partner Success
Sales Operations
Marketing
Relevant Roles
Chief Commercial Officer
Sales Director
Channel Manager
Business Development Manager
Legal Counsel
Contracts Manager
Commercial Director
Partner Manager
Operations Director
Compliance Officer
Chief Executive Officer
Sales Operations Manager
Channel Marketing Manager
Partner Success Manager
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