To remain competitive, companies must innovate at a rapid pace and for many companies, conducting their own research and development is not always an ideal solution. As such, a business may prefer to entrust its R&D project to an established research center. This template sets out the legal and financial framework for this type of R&D collaboration.

It should be noted that in Quebec and the rest of Canada, research and development activities are eligible for tax incentives that seek to stimulate innovation. Ensure that you find out which tax benefits you may be entitled to, as this may determine whether your business will have the capacity to pursue R&D activities.

We recommend using this document to govern the relationship between a client who wishes to establish a research program or develop a privileged relationship with a research center. This template is drafted to reflect the continuous relationship between the parties, as opposed to a purchase order, which is better suited for a single transaction involving a specific task.

A research program generally involves a number of consecutive phases, each with a set of tasks to be performed to attain the set objectives. This empirical approach is typical of the research and development process and usually requires several purchase orders for each phase. This template should be used to establish the general framework of such a research program, but without necessarily specifying each task, which can be addressed more precisely in the purchase orders.

RECITALS
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Best Efforts
0.01.03 Breach
0.01.04 Dispute
0.01.05 Equipment
0.01.06 Force Majeure
0.01.07 Industrial Property
0.01.08 Intellectual Property
0.01.09 Law
0.01.10 Legal Representatives
0.01.11 PARTY
0.01.12 Patent
0.01.13 Person
0.01.14 Phase
0.01.15 Pilot Plant
0.01.16 Prime Rate
0.01.17 Process
0.01.18 Product
0.01.19 Program
0.01.20 Prototype
0.01.21 Purchase Order
0.01.22 Report
0.01.23 Results
0.01.24 Sample
0.01.25 Statement of Work
0.01.26 Technology
0.01.27 Timeline
0.01.28 Work
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
1.00 PURPOSE
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
3.01 Terms in Purchase Order
3.02 No Terms in Purchase Order
3.02.01 Initial Instalment
3.02.02 Interim Instalment
3.02.03 Final Instalment
3.03 Suspension of Work
3.04 Interest
3.05 Forfeiture of Term
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
6.00 REPRESENTATIONS AND WARRANTIES OF CLIENT
6.01 Nominee
6.02 Industrial Property
6.03 Intellectual Property
6.04 Rights
6.05 Disclosure
7.00 REPRESENTATIONS AND WARRANTIES OF RESEARCH CENTRE
7.01 Resources
7.02 Conflict of Interest
7.03 Licence
7.04 Labour Dispute
7.05 Disclosure
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF CLIENT
9.01 Cooperation
9.02 Transportation
9.03 Amendment
9.04 Report
9.05 Results
9.06 Waiver
9.07 Confidentiality
9.08 Non-solicitation of Personnel
9.08.01 Scope of Undertaking
9.08.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.00 DUTIES AND OBLIGATIONS OF RESEARCH CENTRE
10.01 Purchase Orders
10.01.01 Time Limit for Acceptance
10.01.02 Tacit Acceptance
10.02 Performance of Purchase Order
10.02.01 Compliance with Terms
10.02.02 Detailed Reports
10.02.03 Best Practices
10.02.04 Compliance with Laws
10.02.05 Subcontracting
a) Authorization to Subcontract
b) Liability
10.02.06 Location Where Tasks Performed
10.02.07 Program Supervision
10.02.08 Safety
10.02.09 Amendment
10.03 Timeline
10.04 Best Efforts
10.05 Visits
10.05.01 Laboratories
10.05.02 Subcontractors
10.05.03 Liability
10.06 Loss or Damage
10.07 Undertakings
10.07.01 Results
10.07.02 Industrial Property
10.08 Transfer of Ownership
10.09 Samples
10.09.01 Exclusive Property
10.09.02 Liability
10.10 Confidentiality
10.10.01 Undertaking
10.10.02 Unauthorized Disclosure
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Exception
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right of Other PARTY
11.03 Relationship Between the PARTIES
12.00 GENERAL PROVISIONS
12.01 Notices
12.02 Dispute Resolution
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.01 Mediation
a) Process
b) Settlement
c) Arbitration [OR Legal Proceeding]
12.02.02 Arbitration Procedure (if V1 of 12.02.02 c) applies)
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontractors
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
12.03 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Language
13.00 TERMINATION
13.01 Expiry of Term
13.02 By Mutual Consent
13.03 Without Notice
13.04 With Prior Notice
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Initial Term
15.02 Renewal
15.03 Non-Renewal
15.04 Survival
16.00 SCOPE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF CLIENT
SCHEDULE B – EXCERPT OF A RESOLUTION OF RESEARCH CENTRE
SCHEDULE 0.01.12 – PATENT
SCHEDULE 0.01.20 – PURCHASE ORDER
SCHEDULE 0.01.26 – TIMELINE