Example of a Maquila Contract

The maquila contract, It is a contract for the provision of services, but directed exclusively to the maquila, and the maquila may refer to clothing, food preparation, or product manufacturing specific.

Example of a maquila contract:

Maquila Contract

Maquiladora contract signed by the company “TAMALESRICOS- OAXAQUEÑOS. S.A. DE C.V. " Represented by Mr. Virgilio Villanueva Obrador who is duly identified with (put the identification generals) and by the another "American Importers Nautilus Inc.," represented by Mr. John Smith Brown, who is duly identified with (put the generals of ID). Hereinafter, the company "TAMALESRICOS-OAXAQUEÑOS" will be identified within the contract as "The Company" and "IMPORTADORES AMERICANOS NAUTILUS INC" as "The Contractor" Who will assume the following declarations and clauses

STATEMENTS:

1.- "THE COMPANY" Manifests:

a) Be a fully and legally constituted company in the State of Oaxaca and in accordance with the laws of the state and the country.
b) Have as physical and fiscal address Av. Revolución Mexicana Number 654 in Manilla neighborhood, Municipality of Agua Blanca Oaxaca.

c) Dedicate themselves to the branch of regional food production (Oaxacan style tamales)

2.- The "CONTRACTOR" declares:

a) Be a company legally incorporated in accordance with the laws of the state of Washington d. C. USA.
b) Have a fiscal address and legally constituted in Av. Washington núm. 652. Washington D.C. USA.

3.- Both Companies state:

a) Have a mutual agreement to carry out this food maquila contract.

CLAUSES:

First.- "The contractor" is obliged to contract exclusively to "The company" so that it carries out the activity of manufacturing and hermetic packaging of Oaxacan tamales.

Second.- In the event that "The company" is not able to carry out the work in a timely manner, may be assisted by employees or alternative companies, previously registered and accepted by both Business.

Third.- "The Contractor" will provide the essential raw material for the elaboration of the desired product.

Quarter.- The finished work will be packed and prepared for due importation into the United States, in accordance with the provisions of this contract and in accordance with the laws of both nations.

Sixth.- "The Contractor" will refrain from being awarded the intellectual property right, regarding the products that are being made, leaving all rights to the contracted Company.

Seventh.- "The company" contracted, will refrain from alienating, selling or disposing of the tools and products owned by the contracting company, without the corresponding authorization.

Eighth.- "The Company" contracted as well as "The contractor" will deliver the samples that the health authorities of both nations require in the corresponding form and provisions.

Ninth.- In the case of commercialization in the country of the producing company, it will be carried out by prior agreement between both companies, which will set the corresponding price.

Tenth.- The contracting company will retain ownership of all equipment and machinery that it provides to the contracted company, who will act as depositary, keeping them in good standing. state, and released from any encumbrance, affectation of a legal nature, and if any, will make an official communication to the contracting company, to carry out the proceedings corresponding.

Eleventh.- The contracting parties have agreed to pay the amount of 19 US Dollars (Nineteen Dollars) per package.

Twelfth.- "The contracting party" undertakes to comply with the laws and regulations existing in Mexico, in order to avoid sanctions and comply with the corresponding taxes and fees, as well as auditing both profits and machinery that are owned by the company contractor.

Thirteenth.- "The contractor" has the power to offer the machinery and equipment as a guarantee of tax or civil credits determined by the country's authorities.

Fourteenth.-  The contracted company will make the qualified personnel available to the Contractor for the following purposes:

a) In order for the obligations assumed in accordance with this contract to be fully complied with.
b) Tools, spare parts and raw materials can be effectively insured.
c) Manage the facilities and direct them by highly trained and technically efficient personnel.

Fifteenth.- Among the assistance points established in the previous paragraph will include:

a) Advice on labor terms in accordance with national laws and rights and obligations that correspond according to law.
b) Advice on the purchase and distribution of raw materials within the national territory.

Sixteenth.- The term of this contract will be 15 years, with the possibility of being automatically renewed the day after the end of this contract. And if the end of the same is required before the end of the term of this, the announcement 60 calendar days in advance, and may be made by either party interested.

Seventeenth.- Any notification made in accordance with the law, must be presented in writing, either personally or by any other means.

To carry out this procedure, a representative for each company will be authorized:

a) for the contracting party, Mr. (Name of authorized person) and
b) for the contracted person, Mr. (Name of the authorized person).

And these notifications will be delivered to the address (put the address authorized by both companies for this purpose).

Eighteenth.- This contract may be terminated for specific reasons with prior notification carried out 60 calendar days prior to the previously established date.

1. The contracted company may terminate this contract without responsibility for it, and without requiring legal or arbitration resolution prior agreement with the contracted company.
2. For not having authorization to carry out the functions that the company should carry out.
3. For not complying with any of the previously agreed obligations.
4. In the event of insolvency or liquidation
5. By judicial resolution.
6. For breaching the contract in any of its phases or paragraphs.
7. For failing to comply with the agreed deliveries in the corresponding times and forms.
8. Due to labor-management and / or union conflicts.

The contract will be dissolved immediately, and without responsibility or prior legal resolution, when the contracted company

1. Breaches the obligations arising from this contract for a period of 40 days, and without any justification.
2. When the products are not delivered in the agreed manner without any justification.

Nineteenth.- For the interpretation, compliance and execution, where appropriate, of this Contract, the parties expressly submit to the jurisdiction of the laws and Courts of Mexico City Distrito Federal, renouncing any other that may correspond to them due to her domicile or any other circumstance.

The parties sign this contract through their duly authorized representatives on June 7, 2012.

Contracting Company Contracting Company
Signature Signature