Distribution Agreement

WHEN TO USE: This Distribution Agreement is another approach for the distribution of software. It is similar in that a distributor is selected to market software to dealers. There is no exclusivity provided under this agreement. A territory is established for the distributor to stay within. The Distribution Agreement requires the distributor to only deal with authorized dealers, to maintain minimum inventory, purchase monthly minimum quotas, to produce an annual marketing plan, maintain a level of sales and technical personnel, provide marketing reports, etc. Both parties, through this Distribution Agreement, can have flexibility in the pricing of the software. Also, either party can terminate the arrangement at any time.

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