Tooling Ownership and Custody Agreement Template

Made on 2026-11-01 between Acme Precision Ltd ("Owner") and Northfield Components Inc ("Custodian") for the tooling described below, located at 42 Foundry Road, Pune, India.

Two-cavity injection mold for housing PN-48213 Rev C, steel P20, with associated gauges and inspection fixtures. Replacement value: USD 68,000. Items are listed by asset number in the schedule below and in any later schedule signed by both parties.

Title to the Tooling is and remains with Owner, whether or not Custodian paid for part of it or amortised its cost in piece prices. Custodian will not sell, lend, pledge, grant any lien over, or allow any other party to claim an interest in the Tooling, and will tell any lender or landlord that the Tooling belongs to Owner.

Custodian will permanently mark each item with Owner's name and asset number, keep it identifiable and separate from its own tooling, and keep a log of location, use, repairs and shot or hit counts. Owner may inspect the Tooling and records on reasonable notice.

Custodian will use the Tooling only to make products for Owner, in line with the agreed process and specification. Use for any other party or purpose requires Owner's prior written consent.

Maintenance responsibility: Custodian (routine), Owner (major repair). Custodian will follow a preventive maintenance plan, report damage or wear promptly, and will not modify the Tooling without written approval. Expected life is 500,000 shots; Custodian tells Owner when wear approaches that level so replacement can be planned.

Custodian bears risk of loss or damage while the Tooling is in its custody, except for normal wear, and will insure it at replacement value naming Owner as loss payee, providing a certificate on request.

On written request, and at any time including on termination or a dispute about price or payment, Custodian will release the Tooling to Owner within 15 days, in good condition apart from normal wear, together with related drawings, maintenance records and setup data. Custodian will not withhold the Tooling as security for any claim. Reasonable packing and freight are for Owner's account unless the release follows Custodian's breach.

If no purchase order has been placed for 24 months, the parties will review the Tooling and agree whether to retain, store, return or scrap it. Scrapping requires Owner's written approval.

If the parties agreed to amortise tooling cost in piece price, record the total, the quantity over which it is recovered and the treatment of any unrecovered balance if volumes fall short or the contract ends early.

This Agreement is governed by the laws of the State of Texas, USA. Custodian agrees Owner may file notices of its ownership interest where local law allows.