> **DRAFT — a suggestion, not signed off.** Not for signature.

## Supply agreement
Between Pinewood Street Pharma AG (the Supplier) and Pinewood Street Pharma Cyprus Ltd (the Distributor).
_Source: Transaction record_

## 1. Supply
The Supplier sells finished goods to the Distributor, which resells them in its territory.
_Source: Transaction record_

## 2. Prices
Prices are set each year so that the Distributor earns an operating margin of 2.00% of its sales, with a year-end true-up.
_Source: Group transfer pricing policy §4_

## 3. Payment
Invoices are payable within 60 days.
_Source: Group transfer pricing policy_

## 4. Risks
Inventory risk is borne by the Supplier. Market risk is borne by the Supplier.
_Source: Functional analysis, risks_

## 5. Arm's length
The parties intend the terms to be at arm's length and will adjust them if a review shows they are not.
_Source: OECD Guidelines 1.6; Income Tax Law s.33(6)_

## 6. Term and law
Effective from 1 January of the year; [term, termination and governing law to be agreed by the parties].
_Source: Not in the file_