Guidelines for creating comprehensive distribution agreements. To properly prepare an effective distribution contract, a thorough understanding of the business mechanics of the client's distribution operation is critical.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. This paper will examine the principal areas of regulation and key contract provisions applicable for distribution of goods in the United States. Upon expiration of the initial term, this Contract may be renewed for two (2) additional one (1) year terms. Specify distribution terms between supplier and distributor and collect all contract data in one place with this template.