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Toll Processing Agreement

Toll Processing Agreement Template for Malaysia

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Key Requirements PROMPT example:

Toll Processing Agreement

"I need a Toll Processing Agreement for pharmaceutical product manufacturing in Malaysia, with strict GMP compliance requirements and quality control protocols, starting from March 2025 with an initial term of 3 years."

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Document background
The Toll Processing Agreement serves as a critical legal framework for manufacturing arrangements where a company (toll processor) processes or manufactures products using materials owned by another company (customer) in Malaysia. This document is essential when companies wish to outsource their manufacturing processes while retaining ownership of their materials and finished products. The agreement must comply with Malaysian legislation, including the Contracts Act 1950, Industrial Co-ordination Act 1975, and relevant environmental and safety regulations. It typically includes detailed specifications for processing requirements, quality standards, material handling procedures, risk allocation, and operational responsibilities. The agreement is particularly important for businesses looking to optimize their manufacturing capabilities without investing in their own facilities.
Suggested Sections

1. Parties: Identification of the toll processor and the customer

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

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

5. Supply of Materials: Terms regarding the provision of raw materials by the customer

6. Processing Requirements: Standards, specifications, and requirements for the processing services

7. Quality Control: Quality assurance procedures and acceptance criteria

8. Delivery and Storage: Terms for delivery of materials and storage of finished products

9. Pricing and Payment: Processing fees, payment terms, and related financial matters

10. Title and Risk: Ownership of materials and finished products, risk allocation

11. Warranties: Warranties regarding services, materials, and finished products

12. Confidentiality: Protection of confidential information and trade secrets

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

14. General Provisions: Standard boilerplate clauses including governing law and dispute resolution

Optional Sections

1. Intellectual Property: IP rights and licenses when processing involves proprietary technology

2. Equipment Provision: Terms for customer-provided equipment or specialized machinery

3. Capacity Commitment: Minimum processing capacity commitments, if applicable

4. Environmental Compliance: Specific environmental obligations beyond standard requirements

5. Insurance Requirements: Additional insurance obligations beyond standard coverage

6. Safety Procedures: Specific safety protocols for hazardous materials or processes

7. Training Requirements: Special training needs for handling specific processes or materials

8. Customs and Export: Special provisions for cross-border processing arrangements

Suggested Schedules

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

2. Schedule 2 - Quality Standards: Specific quality requirements and testing procedures

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

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

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

6. Schedule 6 - Operating Procedures: Detailed operational procedures and protocols

7. Appendix A - Health and Safety Requirements: Specific health and safety procedures

8. Appendix B - Equipment Specifications: Details of processing equipment to be used

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

Manufacturing

Chemical Processing

Pharmaceutical

Food and Beverage

Textile

Electronics

Automotive

Consumer Goods

Industrial Processing

Agricultural Products

Relevant Teams

Legal

Operations

Manufacturing

Quality Control

Supply Chain

Procurement

Compliance

Commercial

Production

Technical

Risk Management

Relevant Roles

Manufacturing Director

Operations Manager

Quality Control Manager

Supply Chain Manager

Procurement Director

Legal Counsel

Contract Manager

Production Manager

Compliance Officer

Technical Director

Chief Operations Officer

Plant Manager

Commercial Director

Risk Manager

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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