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Key Provisions to Include in Your
Distribution Agreement
Donna H. Hartman
Beverage Alcohol / Corporate Attorney
Why Are Distribution Agreements
Necessary?
ToProtect 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 Americas
Summit, NJ 07901 New York, NY 10036
908.964.2420
dhartman@olenderfeldman.com
Media Partners
Sponsors and Partners
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Key Provisions to Include in Your Distribution Agreement

  • 1. Key Provisions to Include in Your Distribution Agreement Donna H. Hartman Beverage Alcohol / Corporate Attorney
  • 2. Why Are Distribution Agreements Necessary? ToProtect Your Brand!
  • 3. Creating The Distribution Relationship • Identify Distributor • Schedule Meeting • Negotiate Deal Terms • Execute Distribution Agreement
  • 4. 1. Products • Current Products  Brand(s)  Sizes, etc. • Future Products  Line Extensions  New Products • Distributor’s Right of First Refusal
  • 5. 2. Territory • Define Area  Where Distributor May Sell  Where Other Distributors May Sell • Exclusivity • Supplier’s Retention Rights
  • 6. 3. Pricing and Payment Terms • Pricing To Distributor • Frequency Of Price Changes • How / When Payments Are Made
  • 7. 4. Roles and Responsibilities • Marketing Plans And Support • Calling On Accounts • Inventory Levels • Reporting
  • 8. 5. Term • Length Of Agreement • Expiration • Automatic Renewal
  • 9. 6. Termination • Without Cause • For Cause  Performance  Breach  Financial  Change In Control  Loss Of License
  • 10. 7. Intellectual Property • Specify Intellectual Property  Trademarks  Copyrights  Patents • Identify Scope Of Use • License Type • Duration
  • 11. 8. Events Upon Expiration or Termination • Pending Orders • Inventory Repurchase • Marketing And Advertising Materials
  • 12. 9. Franchise State Laws • Creation Of Franchise • Restrictions On Termination  Good Cause  Time To Cure  Liquidated Damages
  • 13. 10. Dispute Resolution • Mediation • Arbitration • Litigation
  • 15. Donna H. Hartman, Esq. OlenderFeldman LLP 422 Morris Avenue 1180 Avenue of the Americas Summit, NJ 07901 New York, NY 10036 908.964.2420 dhartman@olenderfeldman.com