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The narrator outlines key elements to include in a distribution agreement, emphasizing the importance of clarity regarding the products involved. The agreement should explicitly state which products the distributor is permitted to distribute, particularly if exclusive rights are granted, such as exclusive rights in a specific region like Australia. Clear specifications help to prevent future disputes by ensuring all parties have a mutual understanding of the rights and goods agreed upon. The checklist serves as a guide to confirm these critical details before finalizing the distribution agreement.