Distribution Agreement

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This Distribution Agreement is to be used where one party is to act as a Distributor in order to sell the products or goods of the other party (the Principal) in a specified territory or territories.

The agreement allows for either an exclusive or non-exclusive distribution arrangement. The products to be distributed are purchased from the Principal and can only be sold within the specified territory or territories.

The distribution agreement also provides for the modification of the goods by the Principal only, at any time during the agreement. Furthermore the Principal can specify the minimum amount of stock that must be held by the Distributor.

Clauses in this distribution agreement include:

• Definitions
• Terms Of Distribution
• Contract Period
• Responsibilities
• Intellectual Property
• Confidentiality
• Anti-Bribery Compliance
• Force Majeure
• Termination
• Notices
• General
• Jurisdiction
• Schedule I - Products
• Schedule 2 - Territory
• Schedule 3 - Sales Targets
• Schedule 4 - Trade Marks
• Schedule 5 - Buy-Back of Products on Termination

This distribution agreement template clearly defines the responsibilities of both the Principal and the Distributor and so helps to ensure that both parties adhere to the terms of the agreement. A comprehensive Distribution Agreement is essential to ensure a well run distribution network that creates profits for both parties.

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