The Master Development And Supply Agreement is essential for businesses engaging in custom product development followed by ongoing supply arrangements in Malaysia. It is particularly useful when a customer requires a supplier to first develop or customize a product according to specific requirements, and then supply that product on an ongoing basis. This agreement type combines what would traditionally be separate development and supply agreements into a single, coordinated framework, providing efficiency and ensuring consistency between development and supply phases. The document addresses Malaysian legal requirements and business practices, incorporating necessary provisions from the Contracts Act 1950, intellectual property laws, and relevant industry regulations. It typically includes detailed specifications, development milestones, acceptance criteria, supply terms, quality requirements, and commercial terms for both phases of the relationship.
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1. Parties: Identification of the parties entering into the agreement
2. Background: Context of the agreement, relationship between parties, and high-level objectives
3. Definitions and Interpretation: Defined terms used throughout the agreement and rules of interpretation
4. Scope of Development: Detailed outline of the development project, objectives, and deliverables
5. Development Process: Steps, methodologies, and procedures for the development phase
6. Acceptance Testing: Procedures for testing and accepting developed items
7. Supply Terms: Terms governing the supply phase including ordering, forecasting, and delivery
8. Price and Payment: Pricing for both development and supply phases, payment terms and conditions
9. Quality Requirements: Quality standards, specifications, and quality control procedures
10. Intellectual Property Rights: Ownership and licensing of IP created during development and existing IP
11. Confidentiality: Protection of confidential information exchanged during the relationship
12. Warranties and Indemnities: Warranties regarding development and supplied items, and related indemnities
13. Term and Termination: Duration of agreement and circumstances for termination
14. Force Majeure: Provisions for handling events beyond parties' reasonable control
15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Regulatory Compliance: Specific section for heavily regulated industries requiring detailed compliance obligations
2. International Trade: Additional provisions for cross-border development or supply arrangements
3. Environmental Requirements: Specific environmental obligations and compliance requirements
4. Security Requirements: Additional security measures for sensitive developments or supplies
5. Source Code Escrow: Provisions for software development projects requiring code escrow
6. Disaster Recovery: Business continuity requirements for critical supply arrangements
7. Performance Bonus: Incentive structures for exceeding development or supply targets
8. Technology Transfer: Provisions for transferring technology or knowledge to the customer
1. Development Specifications: Detailed technical specifications for items to be developed
2. Development Timeline: Detailed project schedule with milestones and deadlines
3. Acceptance Criteria: Specific criteria for accepting developed items
4. Pricing Schedule: Detailed pricing information for development and supply phases
5. Quality Standards: Detailed quality requirements and specifications
6. Service Levels: Performance metrics and service levels for supply phase
7. Forecast and Order Procedures: Detailed procedures for forecasting and ordering
8. Key Personnel: List of key personnel from both parties involved in the project
9. Approved Subcontractors: List of approved subcontractors and their roles
10. Form of Purchase Order: Template for purchase orders during supply phase
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