The Tooling Agreement is essential for manufacturing relationships where specialized tools, dies, molds, or equipment are required for production processes. This document, governed by Hong Kong law, is typically used when a company needs to commission, purchase, or use specific tooling for manufacturing products, establishing clear ownership rights, maintenance responsibilities, and usage terms. It becomes particularly important in scenarios involving significant investment in custom tooling, where intellectual property protection is crucial, or where the tooling will be housed at a supplier's facility. The agreement addresses key commercial and legal considerations under Hong Kong's legal framework, including quality standards, technical specifications, and risk allocation between parties.
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1. Parties: Identification of the parties entering into the agreement
2. Background: Context of the agreement and business relationship
3. Definitions: Defined terms used throughout the agreement
4. Scope of Agreement: Overview of the tooling to be manufactured/supplied and its intended use
5. Ordering Process: Procedures for ordering tooling and related services
6. Price and Payment: Pricing structure, payment terms, and invoicing requirements
7. Delivery and Acceptance: Delivery terms, inspection procedures, and acceptance criteria
8. Title and Risk: Transfer of ownership and risk in the tooling
9. Intellectual Property Rights: Ownership and usage rights of designs, specifications, and related IP
10. Quality Requirements: Quality standards, testing procedures, and warranty provisions
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of agreement and termination rights
13. Liability and Indemnification: Allocation of risks and responsibilities
14. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Storage and Maintenance: Terms for storage and maintenance of tooling at supplier's premises - include when supplier will store the tooling
2. Insurance: Insurance requirements for tooling - include when high-value tooling is involved
3. Production Capacity: Guaranteed production capacity and output - include for high-volume manufacturing
4. Multiple Location Rights: Rights to use tooling at different production locations - include when multiple manufacturing sites are involved
5. Quality Certifications: Specific quality certification requirements - include for regulated industries
6. Spare Parts: Requirements for spare parts and replacement components - include for complex tooling
7. Training: Training requirements for tooling operation - include when specialized training is needed
8. End of Life: Procedures for tooling retirement and disposal - include for regulated industries or hazardous materials
1. Technical Specifications: Detailed technical specifications of the tooling
2. Pricing Schedule: Detailed pricing breakdown and payment milestones
3. Quality Standards: Specific quality requirements and testing procedures
4. Maintenance Schedule: Detailed maintenance requirements and schedules
5. Production Requirements: Specific production capacity and output requirements
6. Approved Locations: List of approved manufacturing locations
7. Service Level Agreement: Performance metrics and service levels for tooling maintenance
8. Form of Purchase Order: Standard form for ordering tooling and services
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