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PLAYBOOK TEMPLATES

Reseller Distribution Agreement

A Reseller or Distribution Agreement governs how products are marketed and sold through intermediaries, defining territories, pricing, and performance expectations. This playbook explains negotiation levers around exclusivity, revenue targets, and brand protection.

Indemnification

Why This Matters: Indemnity clauses can expose a party to significant legal costs. Clarifying the scope reduces the risk of open-ended liability.

Negotiation strategy

If you're the Manufraturer:

Ensure the indemnification clause is not overly broad. Include carve-outs for gross negligence or willful misconduct to limit liability.

If you're the Distributor:

Negotiate for a balanced indemnification clause that includes necessary carve-outs and does not impose undue risk.

Essential elements

1

Scope of Indemnity

Defines the extent of coverage.
2

Carve-Outs

Exclusions for specific liabilities.
3

Jurisdictional Compliance

Adheres to local legal standards.

Action framework

ACCEPT

Propose edits if the clause is overly broad or lacks necessary carve-outs.

EDIT

Reject if the clause imposes unlimited liability without exclusions.

ADD

Add language to ensure jurisdictional compliance and balanced risk allocation.

PRO TIP

Always consult with local counsel to ensure compliance with jurisdiction-specific indemnification requirements.

Example clauses

FAVORABLE

Balanced Indemnification Clause

"Each party agrees to indemnify, defend, and hold harmless the other party from any third-party claims, losses, damages, or liabilities, except to the extent caused by the gross negligence or willful misconduct of the indemnified party."
NEUTRAL

Standard Indemnification Language

"The parties shall indemnify each other against third-party claims, subject to standard exclusions."
UNFAVORABLE

Overly Broad Indemnification

"The Contractor shall indemnify the Company for all claims, without exceptions."

Fallbacks

High-Risk Projects

In high-risk projects, ensure the indemnification clause includes specific carve-outs and limits to manage potential liabilities effectively.

Cross-Border Transactions

For cross-border transactions, ensure the clause complies with international legal standards and addresses multi-jurisdictional risks.

Technology Agreements

In technology agreements, include specific indemnities for intellectual property infringements and data breaches.
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