(* * *) Certain information contained in this agreement was omitted and submitted separately to the Securities and Exchange Commission. Confidential treatment of the omitted documents was requested. A distribution agreement, also known as a distribution agreement, is a contract between the channel`s partners that defines the responsibilities of both parties. The agreement is usually between a manufacturer or seller and a distributor, but may, in some cases, involve two distributors or a distributor and another pipeline unit. A distribution contract may be international. The largest distributors of electronics and computing, including Arrow Electronics, Avnet, Ingram Micro and Tech Data, operate subsidiaries in a number of countries for wide geographic coverage. Essential elements of a distribution agreement include the duration (period during which the contract is in effect), delivery conditions and distribution areas covered by the agreement (regions located in the United States and/or international markets). Distributors, such as retailers or value-added resellers (VARs), purchase products from merchants who then sell them to their end customers. In the merchant-distributor relationship, the distributor acts as an intermediary between a supplier and a distributor.
This relationship therefore requires a contractual agreement different from the one described above. In addition, the manufacturer or lender must define a distribution strategy if it takes into account the nature of the agreements to be concluded. A selective strategy requires a small group of distribution points to cover the channel`s target markets. An intensive strategy aims to place the product through a wide distribution in front of as many potential buyers as possible. This last point generally applies to consumer products rather than commercial markets. The manufacturer or seller must also determine whether the distribution contract is exclusive or not exclusive. In an exclusivity agreement, the specified distributor is the only distributor with the right to sell the product in a geographic region or in several regions.