The Development and Manufacturing Agreement is essential for businesses engaging in product development and manufacturing activities within the UAE. This document is particularly crucial when a company wishes to formalize arrangements for both the development phase of a product and its subsequent manufacturing, whether through in-house facilities or third-party manufacturers. It addresses key aspects required under UAE law, including intellectual property protection, quality control standards, and compliance with local manufacturing regulations. The agreement is commonly used in UAE free zones and industrial areas, where it must align with both federal laws and specific emirate-level requirements. It serves multiple industries and typically includes detailed technical specifications, development milestones, manufacturing processes, and commercial terms, while ensuring compliance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and other relevant legislation.
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1. Parties: Identification of the contracting parties including full legal names and addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement
4. Scope of Development Services: Detailed description of the development work, including deliverables and milestones
5. Development Process and Timelines: Specific stages of development, approval processes, and associated timeframes
6. Manufacturing Requirements: Manufacturing specifications, quality standards, and production requirements
7. Quality Control and Testing: Quality assurance procedures, testing protocols, and acceptance criteria
8. Intellectual Property Rights: Ownership and licensing of IP created during development and manufacturing
9. Confidentiality: Protection of confidential information and trade secrets
10. Payment Terms: Pricing, payment schedules, and financial terms for both development and manufacturing
11. Production Forecasts and Orders: Process for forecasting and ordering manufactured products
12. Warranties and Representations: Warranties regarding development services and manufactured products
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Term and Termination: Duration of agreement and circumstances for termination
15. Force Majeure: Provisions for unforeseen circumstances affecting performance
16. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms under UAE jurisdiction
1. Environmental Compliance: Include when manufacturing involves environmental considerations or hazardous materials
2. Technology Transfer: Include when specific technology or know-how needs to be transferred between parties
3. Exclusivity Provisions: Include when either party requires exclusive rights for development or manufacturing
4. Packaging and Labeling: Include when specific packaging or labeling requirements are necessary
5. Storage and Transportation: Include when special storage or shipping requirements apply
6. Training and Support: Include when technical training or ongoing support is required
7. Insurance Requirements: Include when specific insurance coverage is necessary beyond standard requirements
8. Change Control Procedures: Include for complex products requiring formal change management processes
9. Regulatory Compliance: Include when products require specific regulatory approvals or compliance
10. Subcontracting Rights: Include when manufacturing may involve third-party subcontractors
1. Technical Specifications: Detailed technical requirements for the product
2. Development Milestones: Specific development phases, deliverables, and timeline
3. Quality Control Procedures: Detailed quality control processes and acceptance criteria
4. Pricing Schedule: Detailed pricing structure for development and manufacturing
5. Manufacturing Process Specifications: Detailed manufacturing procedures and requirements
6. Equipment and Facility Requirements: Specifications for manufacturing equipment and facility standards
7. Key Personnel: List of key personnel involved in development and manufacturing
8. Approved Subcontractors: List of approved third-party subcontractors if applicable
9. Service Level Agreement: Performance metrics and service levels for manufacturing
10. Compliance Certificates: Required regulatory and quality certifications
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