A Toll Processing Agreement is essential when a company needs to outsource the processing of its materials to a specialized processor. This contract type, governed by English and Welsh law, provides a comprehensive framework for the processing relationship, including quality requirements, operational specifications, risk allocation, and compliance obligations. The agreement is particularly important in industries where precise processing specifications and quality standards are crucial, such as chemical manufacturing, pharmaceuticals, or food processing. It protects both parties by clearly defining responsibilities, establishing liability limitations, and ensuring compliance with relevant UK regulations and industry standards.
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1. Parties: Identification and details of the processor and the client
2. Background: Context of the agreement and brief description of the processing services
3. Definitions: Key terms used throughout the agreement including relevant legislative references
4. Services: Detailed description of processing services to be provided and compliance with relevant manufacturing regulations
5. Quality Standards: Required quality standards, specifications, and compliance with relevant quality regulations
6. Delivery and Collection: Terms regarding delivery of raw materials and collection of processed goods
7. Price and Payment: Processing fees, payment terms and invoicing
8. Title and Risk: Ownership of materials and risk allocation during processing
9. Warranties: Representations and warranties from both parties regarding processing capabilities and compliance
10. Liability and Indemnification: Liability limitations and indemnification provisions
11. Term and Termination: Duration of agreement and termination provisions
1. Environmental Compliance: Environmental obligations under Environmental Protection Act 1990 and related regulations
2. Intellectual Property: Protection of IP rights under Patents Act 1977 and related IP legislation
3. Confidentiality: Protection of confidential information and compliance with UK GDPR and Data Protection Act 2018
4. Insurance: Insurance requirements and coverage specifications
5. Force Majeure: Provisions for unforeseen circumstances affecting processing operations
1. Schedule 1 - Processing Specifications: Detailed technical specifications for processing operations
2. Schedule 2 - Quality Standards: Specific quality requirements, testing procedures, and applicable ISO standards
3. Schedule 3 - Pricing Schedule: Detailed pricing structure and calculations for processing services
4. Schedule 4 - Service Levels: Performance metrics and service level requirements
5. Schedule 5 - Health and Safety Requirements: Specific health and safety procedures under Health and Safety at Work Act 1974
6. Schedule 6 - Equipment Schedule: List of equipment to be used in processing operations
7. Schedule 7 - Key Personnel: List of key personnel involved in processing operations
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