In this article, a Silicon Valley business litigation attorney will discuss how distributors can protect themselves with strong distribution agreements. Expand your market reach effectively with our free distribution agreement template.1. Clearly identify the parties to the contract. a. A template that outlines the contractual relationship between a distributor and a supplier. This legal document ensures that both parties are protected. I. Methods of Distribution; Scope of Checklist. There are many ways for a supplier to bring its products or services to market. This distributor agreement template lays out the terms for paying commission on the reselling or distribution on a service or product. It grants the distributor exclusive rights to purchase, promote, and resell the supplier's products in a specified territory. Distributor may not solicit or sell Products to any customer that Licensor identifies as an "exclusive customer" of another Authorized Distributor.