Co Manufacturing Agreement Template for Saudi Arabia

The Co-Manufacturing Agreement is essential for businesses seeking to outsource their production processes in Saudi Arabia while maintaining control over product quality and specifications. This document is particularly relevant in the context of Saudi Arabia's industrial development initiatives and Vision 2030 objectives, which encourage manufacturing partnerships and industrial growth. The agreement covers crucial aspects such as production specifications, quality control measures, intellectual property protection, and compliance with Saudi regulations including SASO standards and Sharia law principles. It's commonly used when companies want to leverage external manufacturing capabilities without investing in their own production facilities, or when expanding production capacity through strategic partnerships. The Co-Manufacturing Agreement must carefully balance the interests of both the product owner and the manufacturing partner while ensuring compliance with Saudi Arabian legal requirements and industry-specific regulations.

1. Parties: Identification of the manufacturing partner and the product owner, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of each party's business, and the purpose of the co-manufacturing arrangement

3. Definitions: Detailed definitions of technical terms, industry-specific terminology, and key concepts used throughout the agreement

4. Scope of Manufacturing Services: Detailed description of manufacturing services, production requirements, and specifications

5. Quality Standards and Control: Quality requirements, testing procedures, acceptance criteria, and compliance with SASO standards

6. Production Planning and Forecasting: Process for production scheduling, forecast submissions, and capacity planning

7. Pricing and Payment Terms: Pricing structure, payment schedule, and terms compliant with Sharia law

8. Raw Materials and Components: Responsibilities for sourcing, storing, and managing raw materials and components

9. Intellectual Property Rights: Protection and usage rights of patents, trademarks, and manufacturing processes

10. Confidentiality: Protection of trade secrets, proprietary information, and confidential manufacturing processes

11. Term and Termination: Duration of the agreement, renewal terms, and termination conditions

12. Warranties and Indemnifications: Product warranties, manufacturing quality guarantees, and indemnification provisions

13. Compliance with Laws: Obligations to comply with Saudi regulations, including labor and environmental laws

14. Force Majeure: Provisions for unforeseen circumstances affecting manufacturing capabilities

15. Dispute Resolution: Procedures for resolving disputes under Saudi law and jurisdiction