The Tooling Agreement is essential for manufacturing operations in India where specialized tools and equipment are required for production processes. This document is typically used when a company needs to procure custom-made or specialized tools from a manufacturer or supplier. The agreement covers crucial aspects such as tool specifications, ownership rights, payment terms, quality requirements, and maintenance obligations, all while ensuring compliance with Indian contract law and industrial regulations. It protects both parties' interests by clearly defining responsibilities, establishing quality standards, and addressing intellectual property rights. The document is particularly important in industries where tool costs are significant and production quality depends heavily on tool performance.
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1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the tooling arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms specific to tooling
4. Scope of Agreement: Detailed description of the tools covered and their intended use
5. Ownership and Title: Clear statement of tool ownership, transfer of title if applicable, and intellectual property rights
6. Payment Terms: Payment schedule, amounts, and conditions for tooling costs
7. Delivery and Acceptance: Terms for tool delivery, inspection, and acceptance criteria
8. Quality Requirements: Quality standards, specifications, and testing procedures
9. Maintenance and Storage: Responsibilities for tool maintenance, storage conditions, and preservation
10. Term and Termination: Duration of agreement and conditions for termination
11. Confidentiality: Protection of confidential information and trade secrets
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Force Majeure: Provisions for unforeseen circumstances affecting performance
14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Insurance: Requirements for insurance coverage when tools are of high value or present significant risks
2. Export Control: Compliance requirements when tools involve international shipping or technology transfer
3. Environmental Compliance: Special provisions for tools involving environmental risks or regulations
4. Tool Life Management: Provisions for end-of-life handling, disposal, or replacement of tools
5. Security Interest: Creation of security interest in tools when payment is made in installments
6. Capacity Requirements: Specific provisions regarding production capacity and tool availability
7. Training and Support: Terms for technical training and support in tool usage
8. Audit Rights: Rights to audit tool usage, maintenance records, and related documentation
1. Schedule A - Tool Specifications: Detailed technical specifications, drawings, and requirements for each tool
2. Schedule B - Pricing and Payment Schedule: Detailed breakdown of costs, payment milestones, and payment terms
3. Schedule C - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria
4. Schedule D - Maintenance Requirements: Detailed maintenance procedures, schedules, and responsibilities
5. Schedule E - Delivery Schedule: Timeline for tool development, testing, and delivery milestones
6. Appendix 1 - Technical Drawings: Detailed technical drawings and design specifications
7. Appendix 2 - Safety Procedures: Safety guidelines and procedures for tool operation and maintenance
8. Appendix 3 - Warranty Terms: Detailed warranty terms, conditions, and claim procedures
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