This Long Term Supplier Agreement is designed for use in commercial relationships where parties intend to establish an ongoing supply arrangement under New Zealand law. It is particularly suitable for businesses requiring a stable, long-term supply of goods or services with consistent quality and delivery standards. The agreement incorporates key requirements under New Zealand commercial law while providing flexibility to accommodate specific industry requirements and business needs. It includes comprehensive provisions for managing the supply relationship, from operational procedures to risk allocation, and is structured to support both current requirements and future growth of the business relationship. This type of agreement is essential when businesses need to secure their supply chain, establish clear performance metrics, and create a foundation for a strategic partnership.
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1. Parties: Identification and details of the supplier and customer entities entering into the agreement
2. Background: Context of the agreement, relationship between parties, and purpose of the arrangement
3. Definitions and Interpretation: Defined terms used throughout the agreement and rules for interpretation
4. Term and Renewal: Duration of the agreement, including initial term and renewal provisions
5. Supply Obligations: Core obligations of the supplier, including quality standards, delivery requirements, and performance metrics
6. Ordering Process: Procedures for placing, accepting, and fulfilling orders
7. Pricing and Payment: Price structure, payment terms, invoicing requirements, and price review mechanisms
8. Delivery and Risk: Delivery terms, transfer of risk, acceptance procedures, and rejection rights
9. Quality Requirements: Quality standards, specifications, and quality assurance processes
10. Warranties: Supplier warranties regarding goods/services, compliance with laws, and standard of performance
11. Performance Monitoring: KPIs, reporting requirements, and performance review processes
12. Intellectual Property: IP ownership, licenses, and protection of existing IP rights
13. Confidentiality: Protection and handling of confidential information
14. Liability and Indemnities: Allocation of risks, limitation of liability, and indemnification obligations
15. Insurance: Required insurance coverage and minimum levels
16. Termination: Termination rights, grounds for termination, and consequences of termination
17. Force Majeure: Events excusing performance and related procedures
18. Dispute Resolution: Process for resolving disputes, including escalation procedures
19. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Business Continuity: Required for critical supply relationships where continuous supply is essential
2. Environmental Compliance: Important for supplies involving environmental considerations or sustainability requirements
3. Data Protection: Required when personal data processing is involved in the supply relationship
4. Anti-Bribery and Corruption: Important for international supply relationships or high-risk industries
5. Modern Slavery Compliance: Relevant for supply chains with potential human rights risks
6. Security Requirements: Necessary for supplies involving sensitive information or critical infrastructure
7. Export Control: Required for international supply arrangements or controlled goods
8. Transition and Exit: Important for complex supply arrangements requiring detailed exit planning
9. Parent Company Guarantee: Required when supplier's financial strength needs additional support
10. Subcontracting: Necessary when supplier may need to subcontract certain obligations
1. Products/Services Schedule: Detailed description of goods/services to be supplied
2. Pricing Schedule: Detailed pricing structure, rates, and calculation methodologies
3. Service Levels and KPIs: Detailed performance metrics and measurement criteria
4. Specifications: Technical specifications and requirements for goods/services
5. Sites and Delivery Locations: List of approved delivery locations and site-specific requirements
6. Key Personnel: Details of key personnel from both parties involved in contract management
7. Approved Subcontractors: List of pre-approved subcontractors if applicable
8. Forms and Procedures: Standard forms for ordering, reporting, and other operational procedures
9. Business Continuity Plan: Detailed continuity and disaster recovery procedures
10. Transition Plan: Implementation and transition requirements at commencement
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