The Food Contract Manufacturing Agreement is essential for businesses seeking to outsource food production in Austria. This document is typically used when a food brand owner wants to engage a third-party manufacturer to produce food products according to specific recipes and standards. The agreement must comply with Austrian law, including the LMSVG and EU food safety regulations, while addressing manufacturing specifications, quality control, raw material sourcing, pricing, intellectual property protection, and regulatory compliance. It's particularly important for businesses expanding production capacity, entering new markets, or focusing on core competencies while outsourcing manufacturing operations.
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1. Parties: Identification of the contract manufacturer and the client company, including full legal names and registered addresses
2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the manufacturing arrangement
3. Definitions: Defined terms used throughout the agreement, including technical terms specific to food manufacturing
4. Scope of Services: Detailed description of manufacturing services to be provided, including production volumes and capacity commitments
5. Manufacturing Process and Standards: Requirements for manufacturing processes, including compliance with food safety standards and quality control procedures
6. Quality Control and Testing: Quality assurance procedures, testing requirements, and acceptance criteria for manufactured products
7. Supply of Materials: Responsibilities for sourcing and supplying raw materials, packaging materials, and other inputs
8. Pricing and Payment Terms: Pricing structure, payment terms, invoicing procedures, and any volume-based pricing arrangements
9. Intellectual Property: Ownership and usage rights of recipes, formulations, manufacturing processes, and other IP
10. Confidentiality: Protection of trade secrets, proprietary information, and other confidential information
11. Warranties and Quality Guarantees: Product quality warranties, compliance with standards, and remedies for non-conforming products
12. Liability and Indemnification: Allocation of risks, liability limitations, and indemnification obligations
13. Term and Termination: Duration of agreement, renewal terms, and termination rights
14. Force Majeure: Provisions for handling circumstances beyond parties' control
15. Governing Law and Dispute Resolution: Choice of Austrian law and dispute resolution procedures
16. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment rights
1. Exclusivity: Used when manufacturer is restricted from producing similar products for competitors
2. Equipment Provisions: Include when specific manufacturing equipment is provided by the client
3. Storage and Warehousing: Required when manufacturer provides storage services for finished products
4. Distribution Services: Include if manufacturer handles product distribution
5. Marketing Approval: Used when manufacturer needs rights to use client's branding for manufacturing purposes
6. Environmental Compliance: Detailed environmental obligations when manufacturing process has significant environmental impact
7. Personnel Requirements: Include when specific staffing or training requirements are necessary
8. Insurance Requirements: Detailed insurance obligations beyond standard coverage
9. Change Control Procedures: Include for complex manufacturing processes requiring formal change management
10. Audit Rights: Detailed audit provisions when regular facility inspections are required
1. Product Specifications: Detailed technical specifications for each product to be manufactured
2. Quality Control Procedures: Specific testing protocols and quality control processes
3. Pricing Schedule: Detailed pricing information, including volume-based pricing tiers
4. Manufacturing Process Documentation: Step-by-step manufacturing procedures and requirements
5. Equipment Specifications: Technical specifications for manufacturing equipment
6. Compliance Certificates: Required certifications and compliance documentation
7. Key Performance Indicators: Specific metrics for measuring manufacturing performance
8. Contact Details: Key personnel and emergency contact information
9. Raw Material Specifications: Detailed specifications for accepted raw materials and suppliers
10. Packaging Specifications: Requirements for product packaging and labeling
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