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This Distribution Service Agreement template is designed for use in establishing formal distribution relationships within Saudi Arabia, complying with local laws and regulations including Sharia principles. It is particularly useful when a supplier (either local or international) wishes to appoint a distributor to sell and distribute their products in specified Saudi Arabian territories. The agreement includes comprehensive provisions covering appointment, territory definitions, performance requirements, product ordering and delivery, pricing, marketing obligations, and compliance with Saudi regulations. It addresses key considerations under Saudi Arabian Commercial Agencies Law and related regulations, making it suitable for both domestic and international distribution arrangements. The document is structured to protect both parties' interests while ensuring compliance with local legal requirements and commercial practices.

1. Parties: Identification of all contracting parties including full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of each party's business

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Appointment and Territory: Scope of distributor appointment and defined territorial boundaries

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Distributor Rights and Obligations: Comprehensive list of distributor's rights, responsibilities, and performance requirements

7. Supplier Rights and Obligations: Detailed obligations of the supplier including product supply and support

8. Product Orders and Delivery: Procedures for ordering, minimum purchase requirements, and delivery terms

9. Prices and Payment Terms: Pricing structure, payment conditions, and currency specifications

10. Marketing and Promotion: Requirements for marketing, advertising, and promotion of products

11. Intellectual Property Rights: Protection and usage rights of trademarks, patents, and other IP

12. Compliance with Laws: Obligations to comply with Saudi laws, including Sharia principles

13. Confidentiality: Protection of confidential information and trade secrets

14. Warranties and Indemnities: Product warranties and mutual indemnification provisions

15. Termination: Grounds for termination and post-termination procedures

16. Dispute Resolution: Process for resolving disputes under Saudi law

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment