All payments shall be made according to the Illinois State. A distribution service agreement is a contract between a supplying company with products to sell and a separate company that markets and sells them.The advantages of a written agreement may not outweigh the cost of disrupting a smoothly functioning distributor relationship. The Parties to this contract are the State of Illinois acting through the undersigned Agency (collectively the State) and the Vendor. The price the distributor will pay for the product must be clearly spelled out. â–« In a multi-year contract, the timing and method of price. A license and distribution agreement is a legal, written contract between two parties who wish to share the rights to a brand, patent, or trademark. The manufacturer grants the distributor the right to sell its products or services in a specified territory or market.