Value Added Reseller Agreement Template for Malaysia

This document establishes a legal framework under Malaysian law for a value-added reseller relationship, defining the terms and conditions under which a reseller can market, sell, and support the supplier's products or services with added value components. The agreement complies with Malaysian commercial law, including the Contracts Act 1950 and the Sale of Goods Act 1957, while addressing modern business requirements such as data protection under PDPA 2010 and electronic commerce regulations. It covers crucial aspects such as territory rights, pricing structures, intellectual property protection, and service level commitments.

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What is a Value Added Reseller Agreement?

The Value Added Reseller Agreement is essential for businesses operating in Malaysia that wish to expand their market reach through specialized distribution partners who add value to the original products or services. This agreement type is commonly used when a supplier wants to authorize a reseller to not only distribute their products but also to enhance them with additional features, services, or integration capabilities. The document, governed by Malaysian law, includes comprehensive provisions for pricing, territory rights, performance expectations, and support obligations. It's particularly relevant in technology and industrial sectors where products often require customization, integration, or additional services to meet end-user needs. The agreement ensures compliance with Malaysian regulations while protecting both parties' interests in the value-added distribution relationship.

What sections should be included in a Value Added Reseller Agreement?

1. Parties: Identifies and provides full legal details of the supplier and reseller

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Details the appointment of the reseller and the scope of their rights

5. Territory and Exclusivity: Defines the geographical area and any exclusivity rights granted to the reseller

6. Reseller Obligations: Lists the key responsibilities and commitments of the reseller

7. Supplier Obligations: Details the supplier's commitments and support provisions

8. Ordering and Delivery: Specifies the process for ordering products and delivery terms

9. Prices and Payment: Sets out pricing structure, payment terms, and related financial conditions

10. Intellectual Property Rights: Addresses ownership and usage rights of intellectual property

11. Confidentiality: Defines confidential information and protection requirements

12. Term and Termination: Specifies agreement duration and termination conditions

13. Post-Termination: Outlines obligations and rights after agreement termination

14. Limitation of Liability: Sets boundaries for parties' legal liabilities

15. General Provisions: Includes standard legal clauses like notices, assignment, and governing law

What sections are optional to include in a Value Added Reseller Agreement?

1. Marketing and Promotion: Detailed marketing requirements and promotional activities - include when specific marketing obligations are required

2. Performance Targets: Specific sales targets and performance metrics - include when minimum performance requirements are needed

3. Training Requirements: Mandatory training and certification requirements - include for technical or complex products

4. Support Services: Technical support and customer service obligations - include when reseller provides direct support

5. Insurance Requirements: Specific insurance coverage requirements - include for high-value or high-risk products

6. Data Protection: Detailed data protection obligations - include when personal data processing is involved

7. Anti-Corruption: Anti-bribery and corruption provisions - include for international business or government sales

8. Import/Export Controls: Import/export compliance requirements - include for international trade

9. Source Code Escrow: Software source code escrow arrangements - include for software resale agreements

What schedules should be included in a Value Added Reseller Agreement?

1. Products and Services: Detailed list of products and services covered by the agreement

2. Price List: Current pricing structure and reseller discounts

3. Service Level Agreement: Detailed service levels and support requirements

4. Technical Requirements: Technical specifications and integration requirements

5. Territory Description: Detailed description of authorized sales territory

6. Trademark Usage Guidelines: Rules for using supplier's trademarks and branding

7. Commission Structure: Detailed commission calculations and payment terms

8. Reporting Templates: Standard formats for required business reports

9. Support Procedures: Detailed support and escalation procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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