Checklist:
INTERNATIONAL DISTRIBUTORSHIP AGREEMENT*

1. Parties
     a. Obtain proof that parties to contract are registered as
         corporations or other legal entities;
     b. Use Official name of corporation or legal entity;
     c. Use physical address (P.O.Box number is not sufficient) and
         jurisdiction of registration or incorporation;

2. Appointment of Distributor (or Seller, Reseller or broker)
      a. Specify agreement to be an exclusive or non-exclusive distributor/seller/reseller/broker agreement;
      b. Set forth territory;
           1. Set forth the standard of performance: "best effort"
               and/or other;
           2. Specify if there is a right to bind supplier; and
           3. Permit or prohibit assignments of the contract and/or
               appointment of sub-distributors.

3. Termination of the contract
      a. Length of initial term of the contract;
      b. Automatic renewal or negotiated renewal;
      c. Process and means of notice for termination.

4. Products or Services
      a.  Define products or services
      b. Reserve supplier's rights
           1. in event of discontinued products
           2. to substitute successor products
      c. Set forth distributor's rights to successor generation
          of products or services;
           1. Exclusive or non-exclusive
           2. right of first refusal

 5. Prices
      a. Attach and include by reference the initial price schedule;
      b. Set forth process for increasing prices and notice thereof.
    
 6. Terms of Payment
      a. Letter of credit or other terms;
      b. If Letter of credit:
           1. Confirmed by U.S. bank
           2. Irrevocable;
           3. Specify whether it is assignable;
           4. Specify if whether it permits multiple shipments and/or
               transshipment;
           5. Set forth requirements for a draw, for example, x days   after inspection, specify documents required;            
           6. Specify allocation of responsibility for duties/taxes and
               other expenses;
           7. Consider requiring a Stand-by letter of credit;
           8. Include requirement for L/C for future shipments in the
               event of late payment

7. Performance requirements
      a. Minimum sales targets
           1. Minimum monetary amount
           2. Minimum units sold
           3. Specify process and means of notice for raising or lowering
               performance requirements
      b. Remedial measures: failure to meet performance requirements
           1. Liquidated damages
           2. Loss of exclusivity
           3. Diminution of territory or product line
           4. Termination of Contract

8. Procedures related to Ordering and Shipping
      a. Specify reporting requirements, such as forecasts on production
          requirements
      b. Supplier's discretion to accept, reject, delegate, allocate or
          assign orders
      c. Attach example of purchase form to be utilized and specify
          agreement as to
           1. Risk of loss allocation;
           2. Insurance responsibility;
           3. Impact of 1&2 on price terms.

9. Supplier's Responsibilities
      a. Minimum quantity of products to be supplied;
      b. Commitment to accept every order or only orders below
          a set maximum;
      c. Technical support and training provided;
      d. Advertising support.

10. Distributor's Responsibilities
      a. Maintain inventory and inventory record keeping;
      b. Post-sale service obligations;
      c. Reporting obligations;
      d. Right or obligation to obtain assistance of additional distributors;
      e. Advertising obligations;
      f. Must comply with all applicable governmental laws, regulations
         orders and policies; No bribes or payments to government
         officials;
      g.Education for employees regarding 10.f.;

11. Government filings or approval
      a.  Set forth requirements;
      b. Specify who will have responsibility for pursuing approval
          of application(s);
      c. Specify remedial measures in the event approval is not granted within specified time or with preferred conditions.

12. Warranty
      a. Conforming with supplier's standard warranty;
      b. Indemnification for representations outside of scope of
          supplier's warranty;
      c. Compliance with local commercial/legal standards;
      d. Procedures for claims for defective products.

13. Intellectual Property rights
      a. acknowledge of supplier's rights;
      b. Limitations of distributor's rights to use or license to use
          supplier's intellectual property;
      c. Distributor must cooperation in infringement actions;
      d. Confidentiality
           1. Scope
           2. Duration

14. Termination
      a. Automatic upon expiration of terms, or notice of termination
      b. For cause
           1. Notice procedure
           2. Opportunity to cure
      c. No-cure defaults
      d. Special circumstances
           1. Change of ownership or merger;
           2. Insolvency
      e. Impossibility to perform
           1. Changes in laws or regulations, including duties and taxes
           2. War or warlike conditions
           3. Frozen funds
           4. Other force majeure

15. Non-Circumvention:  

     Manufacturer, Licensor and Sub-Distributor(s) should be prohibited from circumventing the Distributor in consummating any related transaction.

16.  Assignments:
      Only with notice or prior written consent

17. Post-Termination Rights
      a. Accounts receivable/payable
      b. Outstanding orders
      c. Disposition of inventory            
      d. Survival of claims
      e. Survival of intellectual property protection clauses
      f.  Distinctions in Force Majeure terminations.

18. Dispute Resolution
      a. Applicable Jurisdiction and Governing law
      b. Waiver of foreign jurisdiction defenses
      c. Forum selection clause
      d. Arbitration clause
           1. Applicable rules and scope;
           2. Number and language of arbitrators;
           3. Location of arbitration;
           4. Binding;
           5. Specify who will pay costs and attorney's fees.