Key Provisions to Include in Your Distribution Agreement

Key Provisions to Include in Your Distribution

Agreement Donna H. Hartman

Beverage Alcohol / Corporate Attorney

Why Are Distribution Agreements Necessary?

To Protect Your Brand!

Creating The Distribution Relationship

• Identify Distributor • Schedule Meeting• Negotiate Deal Terms • Execute Distribution Agreement

1. Products

• Current Products Brand(s) Sizes, etc.

• Future Products Line Extensions New Products

• Distributor’s Right of First Refusal

2. Territory

• Define Area Where Distributor May Sell Where Other Distributors May Sell

• Exclusivity• Supplier’s Retention Rights

3. Pricing and Payment Terms

• Pricing To Distributor• Frequency Of Price Changes• How / When Payments Are Made

4. Roles and Responsibilities• Marketing Plans And Support• Calling On Accounts• Inventory Levels• Reporting

5. Term

• Length Of Agreement• Expiration• Automatic Renewal

6. Termination

• Without Cause• For Cause

Performance Breach Financial Change In Control Loss Of License

7. Intellectual Property

• Specify Intellectual Property Trademarks Copyrights Patents

• Identify Scope Of Use • License Type• Duration

8. Events Upon Expiration or Termination

• Pending Orders• Inventory Repurchase• Marketing And Advertising Materials

9. Franchise State Laws

• Creation Of Franchise• Restrictions On Termination

Good Cause Time To Cure Liquidated Damages

10. Dispute Resolution

• Mediation• Arbitration• Litigation

Thank You!

Donna H. Hartman, Esq.OlenderFeldman LLP

422 Morris Avenue 1180 Avenue of the AmericasSummit, NJ 07901 New York, NY 10036

908.964.2420

dhartman@olenderfeldman.com

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