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Comments on some particuars from a proposed contract


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I would appreciate some comments on these elements from a distributor's contract we are looking at. The parts I'm questioning are from the contracts:

1.The distributor wants 100% reimbursement for samples.

2. "Supplier will pay Distributor a termination fee equaling 30% of Gross Sales, as determined by all cases sold the previous 24 months; retroactive from point of termination. The termination fee will always represent the previous 24 months."


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confirm pretty much other responses. 50/50 for samples they elect to use, although some will require 100% for samples you direct them to supply, especially if they are out of state or far from local distribution area. if they are going to require a buyout, ask for a clause that says the buyout fee is waived if they are selling product below your required minimum per year.

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