The Co-Manufacturing Agreement is essential for businesses operating in Indonesia's manufacturing sector, providing a legal framework for manufacturing partnerships. It is particularly relevant when a company seeks to outsource production while maintaining quality control and protecting intellectual property rights. The agreement must comply with Indonesian regulations, including Law No. 3 of 2014 on Industry, investment laws, and relevant sector-specific regulations. This document is typically used when companies want to leverage local manufacturing capabilities, reduce production costs, or expand manufacturing capacity without significant capital investment. The agreement covers crucial aspects such as production specifications, quality standards, material sourcing, pricing, and regulatory compliance, while ensuring alignment with Indonesian business practices and legal requirements.
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1. Parties: Identification of the manufacturer and the client company, including their legal status and registered addresses
2. Background: Context of the agreement, including the business purpose and general intent of the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Manufacturing Services: Detailed description of the manufacturing services to be provided
5. Quality Standards and Control: Required quality standards, testing procedures, and acceptance criteria
6. Production Requirements: Specifications for production volumes, timelines, and capacity commitments
7. Supply of Materials: Responsibilities for sourcing and supplying raw materials and components
8. Pricing and Payment Terms: Manufacturing costs, payment schedules, and related financial terms
9. Intellectual Property Rights: Ownership and protection of IP, including manufacturing processes and product designs
10. Confidentiality: Protection of confidential information and trade secrets
11. Warranties and Representations: Warranties regarding manufacturing capabilities, product quality, and compliance
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Term and Termination: Duration of agreement and conditions for termination
14. Force Majeure: Provisions for unforeseen circumstances affecting manufacturing
15. Governing Law and Dispute Resolution: Applicable law and mechanisms for resolving disputes
1. Exclusivity: Terms of exclusive manufacturing arrangements, if applicable
2. Export Compliance: Required for products intended for international markets
3. Environmental Compliance: Specific environmental requirements beyond standard regulations
4. Technology Transfer: Terms for sharing manufacturing technology and know-how
5. Training and Support: Provisions for technical training and ongoing support
6. Insurance Requirements: Specific insurance coverage requirements beyond standard provisions
7. Audit Rights: Rights to audit manufacturing facilities and processes
8. Subcontracting: Terms for allowing or restricting subcontracting of manufacturing
9. Change Management: Procedures for handling changes to specifications or processes
1. Schedule 1 - Product Specifications: Detailed technical specifications of products to be manufactured
2. Schedule 2 - Quality Control Procedures: Detailed quality control processes and acceptance criteria
3. Schedule 3 - Pricing Schedule: Detailed breakdown of manufacturing costs and pricing structure
4. Schedule 4 - Production Timeline: Manufacturing schedules, lead times, and delivery commitments
5. Schedule 5 - Material Specifications: Specifications for raw materials and components
6. Schedule 6 - Technical Requirements: Manufacturing facility and equipment requirements
7. Schedule 7 - Key Performance Indicators: Performance metrics and reporting requirements
8. Appendix A - Standard Operating Procedures: Detailed manufacturing and handling procedures
9. Appendix B - Compliance Certificates: Required regulatory and quality certifications
10. Appendix C - Contact Details: Key personnel and escalation contacts for both parties
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