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Toll Processing Agreement

Toll Processing Agreement Template for Switzerland

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Key Requirements PROMPT example:

Toll Processing Agreement

"I need a Toll Processing Agreement for our Swiss pharmaceutical company to engage a local manufacturer to process our active ingredients into final tablet form, with special attention to GMP requirements and quality control procedures, starting from March 2025."

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Document background
A Toll Processing Agreement is essential when a company needs to outsource manufacturing or processing operations while maintaining ownership of the materials and final products. This document, governed by Swiss law, establishes a contractual framework where one party (the principal) provides materials to another party (the processor) for processing under specific conditions. The agreement covers crucial aspects such as material handling, quality standards, processing specifications, pricing, and risk allocation. It's particularly valuable for companies lacking specialized manufacturing capabilities or seeking to optimize their production costs without significant capital investment. The document ensures compliance with Swiss regulations, including the Swiss Code of Obligations, product safety laws, and environmental requirements, while protecting both parties' interests through clear allocation of responsibilities and risks.
Suggested Sections

1. Parties: Identification of the contract parties - typically the principal (who owns the materials/products) and the processor (who performs the manufacturing)

2. Background: Context of the agreement, including the principal's business, processor's capabilities, and purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the processing services to be performed

5. Supply of Materials: Terms regarding the provision of raw materials, including delivery, timing, and quality requirements

6. Processing Standards: Quality standards, GMP requirements, and processing specifications to be followed

7. Quality Control: Quality control procedures, testing requirements, and acceptance criteria

8. Title and Risk: Ownership of materials and products, risk allocation during processing

9. Delivery and Acceptance: Terms for delivery of finished products and acceptance procedures

10. Pricing and Payment: Processing fees, payment terms, and any additional costs

11. Warranties: Warranties regarding processing capabilities, product quality, and compliance with specifications

12. Liability and Indemnification: Allocation of liability and indemnification obligations

13. Confidentiality: Protection of confidential information and trade secrets

14. Term and Termination: Duration of agreement and termination provisions

15. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

Optional Sections

1. Intellectual Property Rights: Required when the processing involves patented processes or results in new IP

2. Equipment and Facility Requirements: Needed when specific equipment or facility specifications are critical to the processing

3. Environmental Compliance: Required when processing involves environmental risks or specific environmental regulations

4. Storage and Warehousing: Include when the processor will store materials or finished products

5. Insurance Requirements: Detailed insurance obligations beyond standard coverage

6. Regulatory Compliance: Specific when processing is subject to particular regulatory requirements

7. Performance Metrics: Include when specific KPIs or performance standards need to be met

8. Subcontracting: Required if processor may need to subcontract certain activities

9. Force Majeure: Detailed force majeure provisions if standard clause insufficient

10. Import/Export Compliance: Required for cross-border movement of materials or products

Suggested Schedules

1. Schedule 1 - Processing Specifications: Detailed technical specifications for the processing services

2. Schedule 2 - Quality Requirements: Specific quality standards, testing procedures, and acceptance criteria

3. Schedule 3 - Pricing Schedule: Detailed breakdown of processing fees and cost calculations

4. Schedule 4 - Material Specifications: Specifications for raw materials to be provided by principal

5. Schedule 5 - Service Levels: Specific performance metrics and service level requirements

6. Schedule 6 - Equipment Specifications: Details of required equipment and maintenance standards

7. Appendix A - Contact Details: Key contact persons and communication protocols

8. Appendix B - Form of Quality Certificate: Template for quality certification of processed products

9. Appendix C - Operating Procedures: Standard operating procedures for processing activities

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions







































Clauses



































Relevant Industries

Pharmaceuticals

Chemicals

Food and Beverage

Cosmetics

Industrial Manufacturing

Biotechnology

Agricultural Products

Consumer Goods

Electronics

Textiles

Relevant Teams

Legal

Operations

Supply Chain

Quality Control

Procurement

Regulatory Affairs

Manufacturing

Production

Compliance

Technical Operations

Risk Management

Commercial

Relevant Roles

Supply Chain Manager

Operations Director

Quality Control Manager

Manufacturing Manager

Procurement Director

Legal Counsel

Regulatory Compliance Officer

Production Manager

Contract Manager

Chief Operations Officer

Quality Assurance Director

Technical Operations Manager

Facilities Manager

Risk Manager

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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