The Co-Manufacturing Agreement is essential for businesses seeking to outsource their production processes in Malaysia while maintaining control over product quality and specifications. This document is typically used when a company wants to leverage external manufacturing capabilities without investing in their own production facilities. The agreement, governed by Malaysian law, comprehensively addresses manufacturing specifications, quality control, intellectual property protection, material sourcing, pricing, and regulatory compliance. It's particularly important in Malaysia's manufacturing sector, which is subject to specific regulations including the Industrial Co-ordination Act 1975 and various quality and safety standards. The document serves as a crucial framework for protecting both parties' interests while ensuring smooth operational execution.
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1. Parties: Identification of the manufacturer and the client company, including full legal names and registered addresses
2. Background: Context of the agreement, including the client's product requirements and manufacturer's capabilities
3. Definitions: Key terms used throughout the agreement including Products, Specifications, Quality Standards, etc.
4. Scope of Services: Detailed description of manufacturing services to be provided
5. Manufacturing Process and Standards: Requirements for production processes, quality standards, and compliance
6. Quality Control: Quality assurance procedures, testing requirements, and acceptance criteria
7. Supply of Materials: Responsibilities for raw materials procurement and management
8. Forecasting and Orders: Process for production forecasting and placing manufacturing orders
9. Pricing and Payment: Manufacturing costs, payment terms, and invoicing procedures
10. Intellectual Property Rights: Ownership and protection of IP related to products and processes
11. Confidentiality: Protection of trade secrets and proprietary information
12. Term and Termination: Duration of agreement and conditions for termination
13. Warranties and Indemnities: Product warranties and mutual indemnification provisions
14. Force Majeure: Provisions for unforeseen circumstances affecting manufacturing
15. Governing Law and Dispute Resolution: Application of Malaysian law and dispute resolution procedures
1. Environmental Compliance: Specific environmental requirements and certifications, needed if manufacturing involves environmental risks
2. Storage and Warehousing: Terms for storage of materials and finished products, if manufacturer provides warehousing services
3. Equipment Provision: Terms regarding specialized equipment provision and maintenance, if client provides specific manufacturing equipment
4. Training Requirements: Provisions for training manufacturer's personnel, if specialized product knowledge is required
5. Export Controls: Compliance with export regulations, if products are intended for international markets
6. Insurance Requirements: Specific insurance coverage requirements beyond standard provisions
7. Technology Transfer: Terms for technology or know-how transfer, if applicable
8. Customs and Trade: Specific provisions for import/export if international shipping is involved
1. Schedule 1 - Product Specifications: Detailed technical specifications for products to be manufactured
2. Schedule 2 - Quality Standards and Testing Procedures: Specific quality control requirements and testing methodologies
3. Schedule 3 - Pricing Schedule: Detailed breakdown of manufacturing costs and pricing structure
4. Schedule 4 - Production Capacity and Timeline: Manufacturing capacity commitments and production schedules
5. Schedule 5 - Material Specifications: Specifications for raw materials and components
6. Schedule 6 - Key Performance Indicators: Metrics for measuring manufacturing performance
7. Appendix A - Manufacturing Process Flow: Detailed documentation of the manufacturing process
8. Appendix B - Quality Control Documentation: Forms and procedures for quality control reporting
9. Appendix C - Compliance Certificates: Copies of relevant manufacturing and quality certifications
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