A Distributor Agreement is a contract between manufacturers or suppliers and channel partners that specifies the roles and responsibilities of each of the parties. The Distributor Agreement grants the channel partner exclusivity to distribute a product or service in a geographical area. The exclusive rights from the distributor agreement give the holder an advantage over competitors to appropriate all the economic benefits associated with the marketing or service delivery within the assigned geographical area. In business valuation, a distributor agreement falls under intangible assets because they can be identified and the potential economic benefits accurately measured separately from tangible assets. Intangible assets are a class of assets without physical form (such as a building) yet can generate economic benefits to the owners. Business valuators apply techniques under the market, asset and income valuation methods to estimate the fair market value of distributor agreement.