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The narrator outlines essential elements for a distribution agreement in a concise checklist format. First, it's crucial to have a clear understanding of the products involved, specifying which products can be distributed to avoid future disputes. If the distributor has exclusive rights, such as for a specific region like Australia, the agreement must explicitly state which products these exclusive rights apply to. This clarity helps ensure that both parties have a mutual understanding and reduces the likelihood of disagreements later on regarding distribution rights.