A distribution service agreement is a contract between a supplying company with products to sell and a separate company that markets and sells them. This distributor agreement template lays out the terms for paying commission on the reselling or distribution on a service or product.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. Guidelines for creating comprehensive distribution agreements. Specify distribution terms between supplier and distributor and collect all contract data in one place with this template.