The Manufacturing And Distribution Agreement is a crucial document for businesses operating in Malaysia that wish to establish a formal relationship for the production and distribution of products. This agreement is particularly relevant when a company wants to outsource manufacturing operations while maintaining control over distribution, or when establishing a manufacturing presence in Malaysia with local or regional distribution networks. The document addresses key aspects required under Malaysian law, including manufacturing licenses under the Industrial Co-ordination Act, quality control requirements, distribution rights, territorial restrictions, and compliance with local regulations. It's commonly used in scenarios involving both domestic and international trade, incorporating necessary provisions for export/import considerations, technology transfer, and intellectual property protection.
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1. Parties: Identification and details of the contracting parties including the manufacturer and distributor
2. Background: Context of the agreement, including business objectives and relationship between parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Appointment of manufacturer and distributor, territory coverage, and exclusivity terms
5. Manufacturing Obligations: Core manufacturing requirements, standards, and specifications
6. Distribution Rights and Obligations: Distribution terms, territories, and responsibilities
7. Quality Control: Quality standards, testing procedures, and compliance requirements
8. Ordering and Delivery: Process for placing orders, delivery terms, and logistics arrangements
9. Prices and Payment: Pricing structure, payment terms, and invoicing procedures
10. Intellectual Property Rights: Ownership and usage rights of IP, trademarks, and patents
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of agreement and termination provisions
13. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution
1. Minimum Purchase Requirements: Used when the distributor needs to commit to minimum purchase volumes
2. Marketing and Promotion: Include when parties share marketing responsibilities
3. Non-Competition: Used when restricting parties from engaging with competitors
4. Technology Transfer: Include when manufacturing involves technology or know-how transfer
5. Training and Support: Used when manufacturer provides training to distributor
6. Insurance Requirements: Include when specific insurance coverage is required
7. Environmental Compliance: Used when manufacturing involves significant environmental considerations
8. Export Control: Include when products are subject to export control regulations
1. Product Specifications: Detailed technical specifications of products to be manufactured
2. Manufacturing Standards: Specific manufacturing processes, standards, and quality requirements
3. Price List: Detailed pricing structure including volume discounts and price adjustment mechanisms
4. Territory Definition: Detailed description of geographical territories for distribution
5. Quality Control Procedures: Detailed quality control processes and acceptance criteria
6. Service Level Agreement: Specific performance metrics and service levels
7. Approved Subcontractors: List of approved subcontractors if applicable
8. Intellectual Property Register: List of relevant trademarks, patents, and other IP
9. Form of Purchase Order: Standard form for placing orders
10. Reporting Requirements: Ƶ and specifications for required reports
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