# KSA Distribution Term Sheet — NBP / INOV Pharma

**Status:** DRAFT FOR DISCUSSION · **Date:** ____________ · **Parties:** INOV Pharma (Canada) and [Saudi importer]

This is a non-binding term sheet. It becomes binding only in a signed distribution agreement.

## 1. Territory and products
- **Territory:** Kingdom of Saudi Arabia only.
- **Products:** Creatine 400 g; ProWhey 5 lb; Extreme Mass Gainer 5 lb and 10 lb; Pre-Workout 480 g. Additional SKUs by written addendum.
- **Channels:** Amazon.sa, gyms/specialty, pharmacies, hypermarkets, own e-commerce.
- **Exclusivity:** exclusive for 24 months, conditional on minimum purchases (Section 3). No exclusivity for SKUs not registered within 9 months.

## 2. Pricing and terms
- **Price basis:** CAD ex-works, per SKU, at 1,000 / 3,000 / 5,000 units.
- **Price validity:** 12 months from signature; whey-cost adjustment only with 60 days' notice and supporting index.
- **Incoterms:** CIF Jeddah/Dammam (Incoterms 2020).
- **Payment:** 30% deposit on PO; 70% against copy of B/L, or irrevocable LC at buyer's option.
- **MOQ:** [__] units per SKU; flavours may be mixed up to [__] per PO.
- **Lead time:** [__] weeks from PO to dispatch.
- **Shelf life:** ≥80% remaining at arrival; minimum 18 months at dispatch.

## 3. Minimum purchase and performance
| Year | Minimum purchase (CAD) | Consequence of shortfall |
|---|---:|---|
| 1 | [__] | Exclusivity becomes non-exclusive |
| 2 | [__] | Exclusivity terminates |

## 4. Regulatory
- **Brand owner provides:** free sale certificate, GMP/HACCP/ISO 22000, CoA (ISO 17025), stability data, halal certificate, labels, TDS, allergen statement, NPN reconciliation.
- **Importer provides:** Saudi CR, Ghad registration, Fasah clearance, licensed warehouse, SFDA product registration, Arabic label review.
- **Registration ownership:** importer holds the SFDA registration during the term; on termination, the parties will cooperate on transfer or cancellation.
- **Claims:** brand owner will not require the importer to use non-permitted claims; final Arabic claims are subject to SFDA review.

## 5. Quality and recall
- Batch traceability from manufacturer to consumer.
- Retention samples for the shelf life + 6 months.
- Recall decision by the importer in coordination with SFDA; brand owner supports within 24 hours.
- Adverse-event reporting within 48 hours.
- Product liability insurance: [amount] per occurrence; certificates provided.

## 6. Marketing
- Launch support: [__]% of first-order value in samples/POS.
- Annual marketing contribution: [__]% of purchases.
- Brand assets, Arabic content and influencer guidelines provided by the brand.
- No claim may be published without prior written approval.

## 7. Term and termination
- **Term:** 24 months, renewable by written agreement.
- **Termination for cause:** 30-day cure period for material breach; immediate for insolvency or regulatory prohibition.
- **Termination without cause:** 90 days' notice; buyer may sell remaining compliant stock for 6 months.
- **Post-termination:** return of brand assets; no use of NBP marks after stock depletion.

## 8. Governing law and language
- **Governing law:** [Saudi law / English law / arbitration seat].
- **Language:** Arabic and English; Arabic prevails for Saudi regulatory documents.
- **Dispute resolution:** [SCCA arbitration in Riyadh / courts].

## 9. Conditions precedent
1. Written NPN/formula reconciliation satisfactory to the importer.
2. Three launch SKUs pass independent ISO 17025 testing.
3. Arabic labels and claims approved by the Saudi regulatory consultant.
4. Halal certificate provided where required.
5. SAIP trademark search satisfactory to the importer.

**Signatures (non-binding):**

INOV Pharma: ______________________  Date: __________

[Saudi importer]: ____________________  Date: __________