Memorandum of Understanding (MOU) for Perennial Distributor

TheMemorandum of Understanding (MOU)for the Perennial Distributor formalizes the operational relationship betweenLISSOME O2 LIMITEDand the Perennial Distributor. This document serves as a legally binding agreement to ensure mutual understanding and accountability in the distribution of City Vouchers, including Data Vouchers, Airtime Vouchers, and Bill Vouchers.

It specifically outlines the terms and conditions under which the Perennial Distributor operates, particularly when utilizing company funds or stock loans for their business. Below are the key elements included in the MOU:

• Purpose and Scope:Establishes the Perennial Distributor's role in distributing City Vouchers and maintaining a robust distribution chain within their designated territory.
• Investment Requirement:Requires an initial testing investment of ₦5,000 by the distributor, ensuring their readiness to proceed with larger-scale operations.
• Business Plan Submission:Mandates the submission of a business plan within four weeks, demonstrating the distributor's capability and alignment with company policies.
• Stock Loan Provision (Optional):Describes the terms for granting an ultimate account, which allows access to stock valued up to ₦5,000,000 as a no-interest loan. This stock must be repaid daily based on distribution activations.
• Default and Legal Remedies:Details the consequences of payment defaults, including legal actions, the deactivation of distributor accounts, and the requirement to refund retailers for any resulting issues.
• Compliance with Nigerian Law:Emphasizes adherence to the laws of the Federal Republic of Nigeria, particularly those concerning fraud and debt recovery.
• Verification Documentation:Specifies the required documentation for identity verification, such as a valid national ID, driver’s license, or utility bill.
• Termination Clause:Includes a clear termination procedure in cases of breaches, with provisions for written notice, resolution timelines, and enforcement of repayment for outstanding amounts.
• Signature and Notarization:Ensures the document is legally binding by requiring signatures from both parties, witnessed endorsements, and notarization or stamping by a Magistrate.

Purpose of the MOU:

This MOU is critical for safeguarding the Company's assets and ensuring a structured, accountable approach to managing the distribution chain. It provides a clear framework for using the Company's resources to support business operations, emphasizing compliance, transparency, and legal enforceability. By signing this agreement, the Perennial Distributor agrees to uphold the outlined terms and to act in good faith within the scope of their responsibilities.

This document reflects the trust and expectations placed on Perennial Distributors while providing a legal mechanism to address potential disputes or breaches.