Toll Manufacturing Agreement for the Netherlands

Toll Manufacturing Agreement Template for Netherlands

A comprehensive legal agreement governed by Dutch law that establishes the terms and conditions under which a toll manufacturer will process, manufacture, or package products on behalf of a customer using raw materials or semi-finished goods provided by the customer. The agreement addresses key aspects including manufacturing specifications, quality standards, regulatory compliance, intellectual property protection, and risk allocation, while ensuring compliance with Dutch and EU manufacturing regulations. It details the responsibilities of both parties, pricing structures, quality control procedures, and operational requirements specific to the Dutch manufacturing sector.

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What is a Toll Manufacturing Agreement?

The Toll Manufacturing Agreement is essential for businesses seeking to outsource their manufacturing processes while maintaining control over their product specifications and raw materials in the Netherlands. This contract type is particularly relevant in industries where specialized manufacturing capabilities or cost efficiencies are sought through third-party manufacturers. The agreement, governed by Dutch law and compliant with EU regulations, establishes a framework for the manufacturing relationship, covering crucial aspects such as quality control, regulatory compliance, intellectual property protection, and risk allocation. It's commonly used when companies want to leverage external manufacturing expertise without investing in their own production facilities, while ensuring their proprietary information and product quality standards are maintained. The document includes detailed specifications for manufacturing processes, quality standards, material handling, and operational requirements, all aligned with Dutch manufacturing regulations and industry best practices.

What sections should be included in a Toll Manufacturing Agreement?

1. Parties: Identification of the toll manufacturer and the customer, including full legal names and registered addresses

2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the toll manufacturing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including technical manufacturing terms

4. Scope of Services: Detailed description of the manufacturing services to be provided, including production processes and capacity commitments

5. Supply of Materials: Obligations regarding the supply, quality, and timing of raw materials, including ownership and risk of loss

6. Quality Requirements: Quality standards, testing procedures, and acceptance criteria for manufactured products

7. Manufacturing Process and Standards: Specific requirements for the manufacturing process, including compliance with GMP if applicable

8. Delivery and Logistics: Terms for delivery, packaging, and transportation of finished products

9. Pricing and Payment: Manufacturing fees, payment terms, and any volume-based pricing arrangements

10. Title and Risk: Transfer of title and risk in materials and finished products

11. Intellectual Property: Ownership and protection of IP rights, including manufacturing processes and improvements

12. Confidentiality: Protection of confidential information and trade secrets

13. Warranties and Indemnities: Product warranties, service level guarantees, and related indemnification provisions

14. Term and Termination: Duration of agreement, renewal provisions, and termination rights

15. Force Majeure: Events excusing performance and related procedures

16. Governing Law and Jurisdiction: Choice of Dutch law and jurisdiction for dispute resolution

What sections are optional to include in a Toll Manufacturing Agreement?

1. Regulatory Compliance: Specific section for highly regulated industries (e.g., pharmaceuticals, food) detailing compliance requirements

2. Environmental Compliance: Required when manufacturing involves significant environmental impacts or hazardous materials

3. Equipment Provision: Include when specific manufacturing equipment is provided by either party

4. Insurance Requirements: Detailed insurance obligations beyond standard coverage

5. Exclusivity: Required when parties agree to exclusive manufacturing arrangements

6. Technology Transfer: Include when significant technical knowledge transfer is required

7. Capacity Reservation: Include when customer requires guaranteed manufacturing capacity

8. Disaster Recovery: Required for critical manufacturing relationships needing business continuity provisions

9. Personnel Requirements: Include when specific staffing or training requirements apply

10. Change Control: Required when formal change management procedures are needed for process modifications

What schedules should be included in a Toll Manufacturing Agreement?

1. Product Specifications: Detailed technical specifications for the products to be manufactured

2. Quality Control Procedures: Specific testing and quality control requirements

3. Pricing Schedule: Detailed breakdown of manufacturing costs, fees, and payment terms

4. Service Levels: Specific performance metrics and standards

5. Manufacturing Process Description: Detailed description of the manufacturing process and requirements

6. Material Specifications: Specifications for raw materials and components

7. Equipment List: Inventory of equipment used or provided for manufacturing

8. Key Personnel: List of key contacts and responsible personnel from both parties

9. Compliance Requirements: Detailed regulatory and quality compliance requirements

10. Storage and Handling Procedures: Requirements for material and product storage and handling

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Pharmaceuticals

Chemical Manufacturing

Food and Beverage

Electronics

Automotive

Consumer Goods

Textiles

Industrial Equipment

Medical Devices

Cosmetics

Relevant Teams

Legal

Operations

Manufacturing

Supply Chain

Quality Control

Procurement

Regulatory Affairs

Production

Technical Operations

Commercial

Risk Management

Compliance

Relevant Roles

Manufacturing Director

Supply Chain Manager

Quality Control Manager

Operations Director

Procurement Manager

Legal Counsel

Regulatory Compliance Officer

Production Manager

Contract Manager

Chief Operating Officer

Technical Director

Quality Assurance Director

Manufacturing Engineer

Supply Chain Director

Commercial Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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