The Toll Manufacturing Contract is essential for businesses seeking to outsource their manufacturing processes while maintaining ownership of their products and intellectual property. This contract type is particularly relevant in Belgium, where strong manufacturing capabilities meet strict EU and local regulations. The agreement comprehensively addresses the relationship between a principal (who provides materials and specifications) and a toll manufacturer (who processes these materials into finished products). It covers crucial aspects such as quality control, regulatory compliance, liability allocation, and intellectual property protection, all within the framework of Belgian law. The document is structured to ensure compliance with Belgian manufacturing regulations, environmental standards, and safety requirements while providing clear operational guidelines and risk management provisions.
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1. Parties: Identification of the contract parties - typically the principal (product owner) and the toll manufacturer
2. Background: Context of the agreement and brief description of parties' business activities
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of manufacturing services to be provided
5. Supply of Materials: Terms regarding the supply, delivery, and handling of raw materials
6. Manufacturing Process: Requirements and specifications for the manufacturing process
7. Quality Control: Quality standards, testing procedures, and acceptance criteria
8. Delivery and Logistics: Terms for product delivery, packaging, and transportation
9. Price and Payment: Pricing structure, payment terms, and invoicing procedures
10. Title and Risk: Transfer of title and risk in materials and finished products
11. Intellectual Property: Protection and usage rights of IP involved in the manufacturing process
12. Confidentiality: Protection of confidential information and trade secrets
13. Term and Termination: Duration of agreement and termination provisions
14. Warranties and Indemnities: Warranties regarding manufacturing services and related indemnification obligations
15. Force Majeure: Provisions for handling events beyond parties' reasonable control
16. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes
1. Regulatory Compliance: Specific regulatory requirements for particular industries (e.g., pharmaceuticals, food)
2. Environmental Compliance: Environmental standards and obligations, particularly relevant for chemical manufacturing
3. Equipment and Facility Requirements: Specific requirements for manufacturing equipment and facilities, if needed
4. Exclusivity: Exclusive manufacturing arrangements, if applicable
5. Insurance: Specific insurance requirements beyond standard coverage
6. Training and Technical Support: Provisions for technical training and support if complex processes are involved
7. Capacity Commitments: Minimum or maximum manufacturing capacity commitments
8. Change Control: Procedures for implementing changes to specifications or processes
9. Audit Rights: Enhanced audit rights for highly regulated industries
10. Business Continuity: Disaster recovery and business continuity requirements for critical manufacturing
1. Product Specifications: Detailed technical specifications of products to be manufactured
2. Quality Requirements: Detailed quality control procedures and acceptance criteria
3. Pricing Schedule: Detailed pricing structure, including volume-based pricing if applicable
4. Manufacturing Process Description: Step-by-step manufacturing process requirements and parameters
5. Material Specifications: Specifications for raw materials and components
6. Service Levels: Specific service level requirements and KPIs
7. Testing Procedures: Detailed procedures for product testing and quality assurance
8. Packaging Specifications: Requirements for product packaging and labeling
9. Health and Safety Requirements: Specific health and safety procedures for the manufacturing process
10. Contact Details: Key contact persons and escalation procedures
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