Distribution Agreement Template

Created April 6, 2026

This Distribution Agreement (“Agreement”) is entered into as of [Effective Date] (“Effective Date”) by and between [Supplier Name], a company organized and existing under the laws of [Jurisdiction], with its principal place of business at [Supplier Address] (“Supplier”), and [Distributor Name], a company organized and existing under the laws of [Jurisdiction], with its principal place of business at [Distributor Address] (“Distributor”).

WHEREAS, Supplier is engaged in the manufacture and sale of certain products as described herein;

WHEREAS, Distributor desires to obtain from Supplier the right to distribute the Products in the Territory, and Supplier is willing to grant such rights to Distributor under the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and intending to be legally bound, the parties agree as follows:

  1. Definitions and Interpretation

    1. For the purposes of this Agreement, the following terms shall have the meanings set forth below:

    2. “Products” means the goods manufactured or supplied by Supplier as mutually agreed upon in writing by the parties from time to time.

    3. “Territory” means the geographic area described as [Territory Description].

    4. “Intellectual Property Rights” means all patents, trademarks, trade names, service marks, copyrights, trade secrets, know-how, and other proprietary rights owned or licensed by Supplier.

    5. Unless the context otherwise requires, words importing the singular include the plural and vice versa, and words importing a gender include every gender.

    6. Headings are inserted for convenience only and do not affect the interpretation of this Agreement.

    7. References to “including” shall mean “including, without limitation”.

    8. Each reference to a party includes its permitted successors and assigns.

    9. If a provision of this Agreement is or becomes invalid or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid and enforceable, and the remainder of this Agreement shall not be affected.

  2. Appointment of Distributor

    1. Supplier hereby appoints Distributor as its [exclusive/non-exclusive] distributor for the Products within the Territory, subject to the terms and conditions of this Agreement.

    2. Distributor accepts such appointment and undertakes to use commercially reasonable efforts to market, promote, and sell the Products in the Territory.

    3. Nothing in this Agreement shall prevent Supplier from directly or indirectly marketing or supplying the Products outside the Territory.

    4. Distributor shall not represent itself as having any rights to act on behalf of Supplier except as expressly authorized in this Agreement.

    5. Distributor acknowledges that it has no right to sub-distribute or appoint any sub-distributors without the prior written consent of Supplier.

    6. Supplier reserves the right to appoint other distributors or agents as may be necessary for the Territory, unless expressly prohibited by this Agreement.

    7. The appointment of Distributor is personal and non-transferable, and any attempted assignment without Supplier’s written consent shall be null and void.

    8. Distributor shall not engage in any conduct which may adversely affect the reputation or goodwill of Supplier or the Products.

    9. Supplier may review Distributor’s performance at regular intervals and reserves the right to adjust the appointment accordingly based on Distributor’s performance.

  3. Territory and Exclusivity

    1. The Territory for the purposes of this Agreement shall be limited to the area specified as [Territory Description].

    2. Supplier grants Distributor [exclusive/non-exclusive] rights to distribute the Products solely within the Territory.

    3. Distributor shall not actively solicit orders or promote the Products outside the Territory, nor shall it fulfill orders for customers located outside the Territory without Supplier’s prior written consent.

    4. Supplier reserves the right to revise the definition of the Territory upon [number] days’ prior written notice to Distributor, subject to mutual agreement.

    5. Nothing herein shall prevent Supplier from selling Products to customers outside the Territory, nor restrict Supplier’s rights in any other markets.

    6. Distributor shall promptly notify Supplier of any known or suspected unauthorized sales or parallel imports of the Products into or out of the Territory.

    7. Any breach by Distributor of the territorial exclusivity provisions shall be considered a material breach of this Agreement.

    8. The parties may, by mutual written agreement, alter the scope of the Territory from time to time.

    9. Distributor shall immediately cease all promotional activities outside the Territory upon Supplier’s request.

  4. Term and Renewal

    1. This Agreement shall commence on the Effective Date and shall remain in force for an initial term of [Initial Term] years.

    2. Upon expiration of the initial term, this Agreement shall automatically renew for successive periods of [Renewal Term] years each, unless either party provides written notice of non-renewal at least [Notice Period for Non-Renewal] days prior to the expiration of the then-current term.

    3. Either party may terminate this Agreement prior to the expiration of its term as provided herein.

    4. Any continuation or renewal of this Agreement shall be subject to the terms and conditions then in effect, unless otherwise agreed in writing.

    5. Upon renewal, the parties may negotiate in good faith any necessary amendments to the commercial terms applicable to the renewed period.

    6. Termination or expiration of this Agreement shall not affect any accrued rights or obligations of the parties.

    7. Distributor shall have no right to any compensation or damages from Supplier arising from the expiration or non-renewal of this Agreement.

    8. The parties shall meet at least [Review Frequency] months prior to the expiration of the initial term or any renewal term to review performance and discuss renewal.

    9. Nothing in this Agreement shall obligate Supplier to renew or extend this Agreement beyond the stated terms.

  5. Distributor’s Obligations

    1. Distributor shall maintain adequate facilities, personnel, and resources necessary to diligently market, sell, and support the Products in the Territory.

    2. Distributor shall purchase Products only from Supplier and shall not, without Supplier’s prior written consent, manufacture, distribute, or sell competing products within the Territory.

    3. Distributor shall comply with all instructions, specifications, and guidelines provided by Supplier regarding the storage, handling, marketing, and sale of the Products.

    4. Distributor shall promptly inform Supplier of any customer complaints, adverse events, or regulatory inquiries related to the Products.

    5. Distributor shall maintain accurate and complete records of all sales, inventory, and customer information for a minimum of [Record Retention Period] years, and shall provide such records to Supplier upon request.

    6. Distributor shall obtain and maintain all licenses, permits, and approvals required to perform its obligations under this Agreement within the Territory.

    7. Distributor shall not make any representations or warranties regarding the Products other than those expressly authorized by Supplier.

    8. Distributor shall provide periodic sales and inventory reports to Supplier as requested, but not less than [Reporting Frequency].

    9. Distributor shall ensure that its employees and agents are adequately trained regarding the Products.

    10. Distributor shall promptly pay all amounts due under this Agreement in accordance with the prescribed payment terms.

  6. Supplier’s Obligations

    1. Supplier shall provide Distributor with the Products in accordance with the order and delivery procedures set forth herein.

    2. Supplier shall use commercially reasonable efforts to meet Distributor’s requirements for Products, subject to availability and lead times.

    3. Supplier shall provide Distributor with relevant marketing materials, technical documentation, and any updates thereto, as reasonably necessary for the promotion and support of the Products.

    4. Supplier shall notify Distributor of any material changes to the Products, including discontinuation, modifications, or improvements, as soon as practicable.

    5. Supplier shall provide training and product support to Distributor’s personnel as reasonably necessary for the proper marketing, sale, and support of the Products.

    6. Supplier shall comply with all applicable laws and regulations regarding the manufacturing, labeling, and packaging of the Products.

    7. Supplier shall be responsible for obtaining and maintaining all necessary approvals for the Products to be sold in the Territory, unless otherwise agreed in writing.

    8. Supplier shall ensure that all Products delivered to Distributor conform to Supplier’s published specifications and standards in effect at the time of delivery.

    9. Supplier shall provide reasonable advance notice to Distributor of anticipated shortages or delays in Product availability.

    10. Supplier shall address any warranty claims or Product defects in a timely manner in accordance with the terms of this Agreement.