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The narrator outlines key elements to consider when drafting a distribution agreement. First, it's crucial to have a clear understanding of the products involved, specifying which items are included for distribution. This clarity ensures there are no future disputes regarding the distribution rights. It is particularly important for agreements granting exclusive rights, such as in specific regions like Australia. The agreement must specify the exact goods covered under these exclusive rights to prevent misunderstandings later. Overall, the checklist is designed to ensure both parties are clear on the terms agreed upon.