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Distributor Reseller Agreement

Distributor Reseller Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Distributor Reseller Agreement

"I need a Distributor Reseller Agreement for my Saudi-based technology company to appoint an exclusive distributor in Riyadh for our software products, with a three-year term starting January 2025 and minimum annual sales targets."

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Document background
The Distributor Reseller Agreement is essential for businesses looking to establish or formalize distribution channels in Saudi Arabia. This document is particularly crucial given Saudi Arabia's unique legal framework, which combines modern commercial law with Islamic Sharia principles. The agreement is typically used when a manufacturer or supplier wishes to appoint a distributor to sell their products in Saudi Arabia, requiring careful consideration of local commercial agency laws, distribution regulations, and market practices. It addresses key aspects such as territory rights, performance targets, compliance requirements, and operational procedures while ensuring adherence to Saudi regulatory requirements. The document serves as a foundation for building successful distribution partnerships while protecting both parties' interests and ensuring legal compliance in the Saudi market.
Suggested Sections

1. Parties: Identification of the supplier/manufacturer and distributor, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the distribution arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Scope of distributor appointment, territory definition, and exclusivity/non-exclusivity terms

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Distribution Rights and Obligations: Detailed rights and responsibilities of the distributor, including sales targets and market development

7. Supplier Obligations: Responsibilities of the supplier including product supply, support, and training

8. Ordering and Delivery: Procedures for ordering products, delivery terms, and logistics arrangements

9. Prices and Payment: Pricing structure, payment terms, and currency specifications

10. Marketing and Promotion: Requirements for marketing, advertising, and promotion of products

11. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, patents, and other IP

12. Confidentiality: Protection of confidential information and trade secrets

13. Warranties and Indemnities: Product warranties, representations, and indemnification provisions

14. Termination: Grounds for termination, notice requirements, and consequences

15. Post-Termination: Obligations and rights of parties after agreement termination

16. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

Optional Sections

1. Non-Competition: Restrictions on distributor's ability to sell competing products - include when exclusivity is important

2. E-commerce Rights: Specific provisions for online sales and digital platforms - include when online distribution is permitted

3. Sub-distributors: Rights and conditions for appointing sub-distributors - include when sub-distribution is allowed

4. Training and Support: Detailed training and technical support provisions - include for complex products

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

6. Compliance with Anti-Corruption Laws: Detailed anti-corruption provisions - include for international distribution

7. Data Protection: Provisions for handling customer data - include when personal data processing is involved

8. Import/Export Compliance: Specific provisions for international trade compliance - include for cross-border distribution

9. Minimum Purchase Requirements: Specific minimum purchase obligations - include when volume commitments are required

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory: Detailed description of the geographic territory, including any excluded areas

3. Schedule 3 - Minimum Performance Targets: Annual sales targets and performance metrics

4. Schedule 4 - Commission Structure: Detailed pricing and commission calculations

5. Schedule 5 - Technical Requirements: Technical specifications and requirements for product handling

6. Schedule 6 - Marketing Guidelines: Detailed marketing requirements and brand guidelines

7. Schedule 7 - Service Level Requirements: Customer service and support standards

8. Appendix A - Reporting Templates: Standard forms for sales reports and performance tracking

9. Appendix B - Operating Procedures: Detailed operational procedures and processes

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 | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Approved Sub-distributors
Business Day
Commencement Date
Confidential Information
Customer
Delivery Point
Effective Date
Force Majeure Event
Intellectual Property Rights
Initial Term
Marketing Materials
Minimum Purchase Requirements
Net Sales
Products
Product Specifications
Purchase Order
Quarter
Renewal Term
Resale Price
SAMA
SAR
Services
Sharia Compliant
Supplier Marks
Target Market
Term
Territory
Trade Marks
VAT
Working Hours
Year
Zakat
Minimum Performance Targets
Operating Procedures
Quality Standards
Reporting Period
Sales Forecast
Technical Documentation
Training Materials
Warranty Period
Clauses
Appointment
Territory Rights
Exclusivity
Term and Duration
Supply Obligations
Ordering Process
Delivery Terms
Pricing and Payment
Performance Requirements
Marketing and Promotion
Training and Support
Product Warranties
Quality Control
Intellectual Property
Confidentiality
Non-Competition
Reporting Requirements
Audit Rights
Compliance
Anti-Corruption
Record Keeping
Insurance
Liability and Indemnification
Force Majeure
Assignment
Sub-Contracting
Termination
Post-Termination
Dispute Resolution
Governing Law
Notices
Entire Agreement
Severability
Amendments
Third Party Rights
Counterparts
Language
Data Protection
Import/Export
Local Content Requirements
Electronic Commerce
Product Returns
Stock Requirements
Customer Service
Technical Support
Brand Protection
Relevant Industries

Technology and Software

Consumer Electronics

Automotive

Healthcare and Medical Devices

Industrial Equipment

FMCG (Fast-Moving Consumer Goods)

Pharmaceuticals

Construction Materials

Telecommunications

Food and Beverage

Retail

Manufacturing

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Supply Chain

Operations

Distribution

Corporate Affairs

Finance

International Trade

Channel Management

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Supply Chain Manager

Channel Manager

Distribution Manager

Operations Director

Chief Commercial Officer

Regional Sales Manager

Contract Manager

General Counsel

Managing Director

Industries
Commercial Agencies Law (Royal Decree No. M/11 of 1962): Regulates commercial agency and distributorship relationships, including registration requirements and protection of Saudi agents/distributors
Anti-Commercial Fraud Law (Royal Decree No. M/19): Ensures protection against counterfeit goods and maintains quality standards in distribution arrangements
Competition Law (Royal Decree No. M/75 of 2019): Governs anti-competitive practices and ensures fair market competition in distribution arrangements
E-Commerce Law (Royal Decree No. M/126): Regulates online sales and electronic transactions if the distribution involves e-commerce activities
Value Added Tax (VAT) Law: Addresses tax implications and compliance requirements for commercial transactions and imports
Commercial Courts Law (Royal Decree No. M/93): Governs commercial dispute resolution and enforcement of contractual obligations
Trademark Law (Royal Decree No. M/21): Protects trademarks and intellectual property rights in distribution relationships
Foreign Investment Law (Royal Decree No. M/1): Regulates foreign business activities and investments in Saudi Arabia
Anti-Money Laundering Law (Royal Decree No. M/20): Ensures compliance with financial regulations and legitimate business transactions
Commercial Registration Law: Mandates registration requirements for businesses operating in Saudi Arabia
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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