FREE 13+ OEM Distribution and License Agreement Samples & Templates in PDF | MS Word

OEM stands for Original Equipment Manufacturer. They are companies who manufacture the entire equipment, which means they do make the parts and they assemble the parts into the items or products that are sold in the market. Most of these products could be sold under a different brand depending on the terms and conditions of the OEM agreement.

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OEM agreements are important documents that are used in a number of business industries, especially those related to the supply of certain parts in an equipment like in vehicles and computers. We have included 14 OEM distribution and license agreement samples and templates to aid you visually in understanding what this document is all about. If you need to, you may easily download and use them as your own.

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What Is an OEM Agreement?

General agreements take place between two or more parties that come to agree to the same terms and conditions of the transaction that they are in. The same thing applies to OEM agreements. The agreement is made between two parties, usually two companies who are competing with each other in the same market.

Original equipment manufacturers sells or supplies equipment parts to different companies who need those parts to build and mass produce their products. Original equipment manufacturers may also be buying parts from other original equipment manufacturers for their products and use them under their product name or brand. That being said, an OEM agreement pertains to the specific details of how the parts can be distributed as well as how it is licensed to be used under a different brand name. You may also see sample payment agreements.

However, OEM agreements have evolved over the years and it has come to a point that it means a lot of things. To avoid confusion and getting into a troublesome agreement, all entities should have a common definition of what an OEM agreement is aside from focusing on the specific terms and conditions of the agreement. If you wish to know more about distribution and licensing agreements, you may find related topics like patent license agreement, trademark license agreements, and application for a license to display trademarks interesting.

Why Are Agreements Important?

Legal documents such as an agreement protects both parties against each other in the event that any of them plans on violating the terms and conditions stated in the agreement.

1. Agreements bind the parties involved in it to ensure that they oblige to the terms and conditions as well as execute their share of responsibilities in the said transaction. These responsibilities could be making the right amount of payment on time or keeping the trade secrets of the entities confidential. You may also see professional services agreement templates.

2. With an agreement in place, the parties involved can guarantee that the business transaction they are getting into is legitimate and reliable.

3. It tells and reminds each party of what they have to do, as well as what they can and cannot do while still bound to the agreement.

4. It provides certain advantages to businesses in terms of legally becoming exclusive distributors of such products or services, or perhaps getting permission to display trademarks of a known product. You may also like sample project development agreements.

5. An agreement ensures that all parties agree to the stated terms and conditions, and a document that has their signature on it is proof of their approval.

6. Dealing with problems or issues that may come up along the way is also one of the contents provided in an agreement. The parties involved can easily fix problems using the directives stated in the agreement.

Are you finding agreements interesting? If you do, then you may want to check out related topics like terms of service agreements, enterprise agreements, and info about franchise contracts and agreements.

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What Is an ODM?

Aside from OEMs or original equipment manufacturers, another noteworthy term in the manufacturing industry is an ODM. It stands for original design manufacturer. Both OEM and ODM are very similar in terms of how they do business, which makes it confusing for a lot of people. This is because both OEM and ODM manufacture equipment parts and supply or sell them to companies or businesses that need those parts. The only difference is how these parts are made. You may also see sample memorandum of agreement templates.

OEM parts are created using the specifications or details that the manufacturing company has designed for the said parts. ODM parts are created based on the requirements or preferences of the company who has requested for them. This means that the company in need of the parts can customize or decide for the specifications of the parts they want to order or purchase. This is the factor that best tells them apart. Other related topics you may find useful are offered on our website. To name a few are partnership agreement short forms, shareholders agreement, and asset purchase agreements.

What Makes Up an Agreement?

Agreements come in a variety of formats, contents, and uses. Because of this, a lot of different agreement samples and templates are created and made available to different entities. Although their contents may vary depending on their use, they are still made up with components that are common to all agreements. Below is a list of the common components that make up an agreement.

1. Heading or title

This makes it easy to identify what the document is for.

2. Parties

It refers to the names of all the parties who are involved in the agreement, as well as any authorized representative involved.

3. Dates

There are a lot of dates written in an agreement. The dates that you would normally see would be the date when the agreement was created, when it was signed, and the date when it will come to an end. You may also see sample business referral agreements.

4. Length of agreement

Provides the specific number of days or the span of time to which the agreement is effective.

5. Reason

States the very reason why the agreement is created and formed in the first place. It also provides the the purpose or for what the agreement is going to be used on. You may also like settlement agreement samples.

6. Terms and conditions

May be seen as different sets of paragraph in the document bearing varied contents. This makes up the largest part of the agreement and may be two or more pages long. The specifics of the agreement can be found here. You may also check out sample commission agreements.

7. License and distribution

The statement that allows or denies the accepting party the right to get a license and distribute the product or products included in the agreement.

8. Legal obligations

This states that if any problems arise between the two parties, they are willing to go to court to have it settled.

9. Applicable clauses

They are clauses, like termination clause, indemnification clause, merger clause, statute of limitations clause, and many others. The clauses included in any agreement largely depends on the parties who are in transaction with each other. You might be interested in sample business management agreements.

10. Terms of payment

This includes the mode of payment, the amount needed to be settled, the frequency of payment, the credit terms, and many more. Terms of payment are only applicable when the agreement is about the sale and purchase of something.

11. Restrictions

A separate paragraph is intended for any restrictions to the agreement or it may be incorporated in each of the paragraph in the terms and conditions.

12. Signatures

The full name of the parties involved and their representatives’ names written with their signatures affixed on top of their names. This shows proof that they all agreed to the entire agreement.

Agreements have similarities to contracts. Some of the essential elements of a valid contract can also be found and applied in most agreements. The list above may also be the same parts that you see in agreements. To know more about agreements and contracts, you may check out articles like Business Sale Agreement Samples and Templates, Contract Agreement Formats, and Sponsorship Agreement Samples and Templates.

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How to Make an OEM Agreement

1. Gather the necessary information that you would need for your OEM agreement, like the name or names of the parties you are in transaction with, the specific product or products to include in the agreement, the required dates, etc. You may also see sample investment agreements.

2. Search online for an OEM agreement template of your choice or one which you prefer to use and that has the specific terms and conditions that you want to include.

3. Download the template that you have chosen and then open the file. When selecting the template that you want to use, make sure that it is a file type supported by the application you have on your computer or laptop. You may also like sample blanket purchase agreements.

4. Read the contents of the agreement carefully. Make the necessary changes or revisions as you see fit or that you think should be changed or removed.

5. Also fill in the blanks with the required information to have your agreement completed. Do this as you go along reading the entire content of the agreement.

6. Save your work when you are done making the changes and then review the entire document one more time. This time check for any spelling or grammar errors that you might have done while doing some changes. Also check if you have entirely changed the meaning of some things in the document and have it corrected if you must. You may also check out sample free consulting agreement templates.

7. Print the number of copies of the agreement that you need. Put it in an envelope or folder where it cannot be damaged or read by any outsiders.

The only thing that is left for you to do is have it presented to the parties you are working with and have them affix their signatures on the agreement if they agree to it. If not, then you will need to talk it out and make the necessary document revisions again. You can use agreement samples and templates as your guide or reference as you make your own. A few titles you may find useful are Sample Advertising Contract Agreements, Dealership Agreement Templates, and Acquisition Agreement Samples and Templates.

Why Is It Good to Use Agreement Templates?

1. A lot of entities have turned to using agreement templates available to them because they find it convenient and very easy to use. They don’t have to go through the trouble of preparing the contents of the document. They just have to read it and make changes. You may also see sample master service agreement templates.

2. It is easy to edit agreement templates as they are created in easy to edit file types like Word and PDF.

3. Using agreement templates saves one so much time and energy.

4. There are different agreement templates for different purposes that are being offered online for free. You are free to download as many samples and templates you like and be able to choose the appropriate template for your needs. You may also like business associate agreement templates.

5. Agreement templates provide a complete document that contains accurate information so you can never go wrong when using one.

Because of its usefulness, templates for a variety of stuff has been created. This has helped make our lives better and even more convenient than how it used to. To know about agreements, you may visit our website and check out the free samples and templates that we offer. A few examples are service agreements samples and templates, commercial loan agreement templates, and real estate consulting agreement templates.