The Toll Manufacturing Agreement is essential for businesses looking to outsource their manufacturing operations while maintaining control over their product specifications and intellectual property. This document is commonly used when a company wants to leverage external manufacturing capabilities without investing in production facilities, particularly in scenarios involving specialized manufacturing processes or when scaling production capacity. The agreement, governed by New Zealand law, includes detailed provisions for quality control, regulatory compliance, risk management, and commercial terms. It's particularly relevant in industries requiring specialized manufacturing capabilities or those dealing with proprietary formulations. The document ensures clear delineation of responsibilities between the principal and the toll manufacturer while protecting both parties' interests through carefully structured terms and conditions.
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1. Parties: Identification and details of the principal and the manufacturer
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Appointment of manufacturer and scope of manufacturing services
5. Supply of Materials: Terms regarding the supply, quality, and handling of raw materials
6. Manufacturing Process: Requirements and standards for the manufacturing process
7. Quality Control: Quality assurance procedures, testing requirements, and acceptance criteria
8. Delivery and Logistics: Terms for packaging, delivery, and transfer of manufactured goods
9. Pricing and Payment: Manufacturing fees, payment terms, and cost adjustments
10. Intellectual Property: Protection and usage rights of IP, including manufacturing processes and product designs
11. Confidentiality: Protection of confidential information and trade secrets
12. Warranties and Indemnities: Warranties regarding manufacturing quality and related indemnifications
13. Term and Termination: Duration of agreement and termination provisions
14. Force Majeure: Provisions for unforeseen circumstances affecting performance
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Regulatory Compliance: Specific section for heavily regulated industries requiring additional compliance measures
2. Environmental Requirements: Additional environmental obligations beyond standard requirements
3. Insurance: Detailed insurance requirements beyond standard coverage
4. Exclusivity: Terms for exclusive manufacturing arrangements
5. Technology Transfer: Provisions for transfer of manufacturing technology or know-how
6. Capacity Commitment: Specific commitments regarding manufacturing capacity and minimum volumes
7. International Trade: Additional provisions for cross-border manufacturing arrangements
8. Change Control: Formal process for managing changes to specifications or processes
1. Product Specifications: Detailed technical specifications for the products to be manufactured
2. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria
3. Pricing Schedule: Detailed breakdown of manufacturing costs, fees, and payment terms
4. Manufacturing Process Requirements: Step-by-step manufacturing procedures and requirements
5. Equipment and Facility Requirements: Specifications for manufacturing equipment and facility standards
6. Key Performance Indicators: Metrics for measuring manufacturing performance
7. Raw Material Specifications: Detailed specifications for raw materials and components
8. Service Level Agreement: Performance standards and metrics for the manufacturing service
9. Compliance Certificates: Required regulatory and quality certifications
10. Contact Details: Key personnel and emergency contact information
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