A distribution service agreement is a contract between a supplying company with products to sell and a separate company that markets and sells them. A standard distribution agreement is a contract between a supplying company and a company who wishes to market and sell the supplied goods.This distributor agreement template lays out the terms for paying commission on the reselling or distribution on a service or product. This Agreement will then be filed as part of. Written By Stephen T. Sigler, Esq. San Diego, CA 92123-1530. In a distribution agreement, "products" can mean either products or services.