Contract & Service Termination Policy

1. Policy Overview

MetalCore Manufacturing recognizes that operational needs and business relationships evolve. This policy establishes a transparent, professional, and legally compliant framework for terminating manufacturing contracts, engineering services, or supply chain partnerships. Termination may be initiated by either party strictly under the conditions and procedures defined herein.

2. Standard Notice Periods

Unless explicitly modified in an executed agreement, the following notice periods apply to voluntary terminations:

• Standard Manufacturing Contracts: 60 days written notice
• Prototype & Design Engineering Services: 30 days written notice
• High-Volume Production Agreements: 90 days written notice
• Just-in-Time (JIT) Supply Contracts: 45 days written notice
• Consulting & Quality Assurance Services: 30 days written notice

All termination requests must be submitted in writing to the Contract Administration Department via registered email with read-receipt confirmation or certified postal mail.

3. Conditions for Immediate Termination

Either party reserves the right to terminate the agreement immediately without penalty or notice period in the event of a material breach, including but not limited to:

1. Consistent failure to meet agreed quality thresholds (e.g., PPM defect rate exceeding contractual limits for two consecutive production runs)
2. Unauthorized disclosure of confidential information or intellectual property infringement
3. Non-payment of approved invoices exceeding 45 days past due, after formal demand
4. Insolvency, bankruptcy filing, or cessation of business operations
5. Force majeure or catastrophic events preventing performance for more than 30 consecutive days
6. Violation of OSHA, EPA, ISO, or other mandated regulatory compliance standards

4. Post-Termination Obligations

4.1 Work in Progress (WIP) & Inventory

Upon receipt of a valid termination notice, MetalCore will immediately halt all non-essential production related to the agreement. Completed and partially completed units will be quarantined, inventoried, and made available for client pickup or authorized shipping within 14 business days.

4.2 Tooling, Molds & Proprietary Assets

All custom tooling, injection molds, jigs, fixtures, and client-supplied materials will be returned to the owning party within 21 days of termination. Assets will be returned in good working condition, accounting for normal manufacturing wear and tear. A joint inspection report will be generated prior to return shipment.

4.3 Final Accounting & Settlement

A comprehensive final invoice detailing all completed scopes, applicable shipping costs, storage fees (if applicable), and outstanding balances will be issued within 10 business days. Payment terms follow the original contract agreement. Any pre-paid funds for undelivered scopes will be refunded within 30 days.

5. Dispute Resolution & Mediation

In the event of a disagreement regarding termination validity, financial settlement, or asset return, both parties agree to first engage in good-faith executive negotiations. If unresolved within 15 business days, the dispute shall be submitted to binding arbitration under the American Arbitration Association (AAA) Commercial Rules, conducted in Wayne County, Michigan. The prevailing party may recover reasonable legal fees.

6. Termination Request Contact