Our free Distributor Agreement Form template allows you to streamline the process, ensuring clear terms for both parties. This distributor agreement template lays out the terms for paying commission on the reselling or distribution on a service or product.To properly prepare an effective distribution contract, a thorough understanding of the business mechanics of the client's distribution operation is critical. A distribution service agreement is a contract between a supplying company with products to sell and a separate company that markets and sells them. Guidelines for creating comprehensive distribution agreements. A form of distribution agreement is a contract between a supplier with products to sell and a company who plans to market and sell the products for profit.