When two technology businesses wish to pool their resources to develop a joint product, they need to enter into an agreement that sets out their respective rights and obligations, both prior to and after such project. The framework for this collaboration is provided by a "co-development agreement."

The type of agreement identifies the resources that each party contributes to the project, and defines the ownership rights of the research results and how any resulting benefits will be shared. Without such an agreement, any resulting confusion may jeopardize all the efforts invested in the collaborative project. This template provides the legal, financial and technical framework of such agreement.

This template can be used to govern the collaboration between two technology R&D companies that wish to combine their respective technologies to possibly produce a patentable technology, and to create a company to manage the intellectual property resulting from this collaboration. This contract is primarily used to clarify matters with regard to protecting the intellectual property and managing the product of the research.

0.00 INTERPRETATION

0.01 Definitions

0.01.01 Agreement

0.01.02 Breach

0.01.03 Claim

0.01.04 Committee

0.01.05 Confidential Information

0.01.06 Costs

0.01.07 Discovery

0.01.08 Dispute

0.01.09 Force Majeure

0.01.10 Intellectual Property

0.01.11 Law

0.01.12 Legal Representatives

0.01.13 Loss

0.01.14 PARTY

0.01.15 Person

0.01.16 Prime Rate

0.01.17 Project

0.01.18 Report

0.01.19 Results

0.01.20 Schedule

0.01.21 Specifications

0.01.22 Subcontracting

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

0.05.08 Approval

1.00 PURPOSE

1.01 Business Collaboration

1.02 Goals

2.00 ORGANIZATION OF THE COOPERATION

2.01 Science Committee

2.01.01 Creation

2.01.02 Composition

2.01.03 Quorum

2.01.04 Meetings

2.01.05 Powers

2.01.06 Minutes

2.02 Work Groups

2.02.01 Creation

2.02.02 Project Lead

2.03 Work Group Meetings

2.03.01 Weekly Basis

2.03.02 Minutes

3.00 MUTUAL REPRESENTATIONS AND WARRANTIES                                                  

3.01 Status

3.02 Authority

3.03 Binding Agreement

3.04 Canadian Resident

3.05 Canadian Status

3.06 Commission

3.07 Insurance

3.08 Nominee

3.09 Independent Legal Advice

3.10 Fundamental Provisions

3.11 Disclosure

3.12 Legal Proceedings

3.13 Permits and Authorizations

3.14 Resources

3.15 Conflict of Interest

3.16 Labour Dispute

4.00 REPRESENTATIONS AND WARRANTIES OF COLLABORATOR 1

5.00 REPRESENTATIONS AND WARRANTIES OF COLLABORATOR 2

6.00 MUTUAL DUTIES AND OBLIGATIONS

6.01 Confidential Information

6.01.01 Undertaking

6.01.02 Duration of Undertaking

6.01.03 End of Agreement

a) Request for Return

b) Destruction

6.01.04 Penalty

6.02 Insurance

6.02.01 Insured Risks

6.02.02 Amount of Coverage

6.02.03 Insurer

6.02.04 Prior Notice

6.02.05 Additional Named Insured

6.02.06 Certificates of Insurance

6.02.07 Notice of Modification or Cancellation

6.03 Continuation of Representations and Warranties

6.04 Indemnification

6.04.01 Scope

6.04.02 Procedure

6.04.03 Third-Party Claim

6.04.04 Duration of Representations and Warranties

6.05 Disclosure of Agreement

6.05.01 Undertaking

6.05.02 Public Announcement

6.05.03 Exception

6.05.04 Default

6.06 Periodic Meetings

6.07 Further Assurances

6.08 Shared Costs

6.08.01 Calculation

6.08.02 Committee

6.09 Bank Account for Project

6.10 Personal Contributions

6.10.01 Financial

6.10.02 Other Resources

6.11 Obtaining Financing

6.12 Tax Credits

6.12.01 Project Management

6.12.02 Allocation

6.13 Subsidies and Grants

6.14 Exclusivity

6.15 Intellectual Property

6.15.01 Sharing Information

6.15.02 Assignment and Waiver

6.15.03 Notice

6.15.04 Ownership

6.16 Samples and Prototypes

6.16.01 Ownership

6.16.02 Inventory

6.16.03 Disposal

6.16.04 Costs

6.17 Disclosure of Project

6.17.01 Publications

6.17.02 Press Releases

6.18 Accounting Records and Reports

6.18.01 Maintaining Records

6.18.02 Access

6.19 Infringement

6.20 Subcontractor

7.00 DUTIES AND OBLIGATIONS OF COLLABORATOR 1

8.00 DUTIES AND OBLIGATIONS OF COLLABORATOR 2

9.00 WITHDRAWAL FROM PROJECT

9.01 Voluntary Withdrawal

9.01.01 Right of First Refusal

9.01.02 Offer to Third Parties

9.02 Forced Withdrawal

9.02.01 Default

9.02.02 Purchase by a PARTY

9.02.03 Purchase by a Third Party

10.00 SPECIAL PROVISIONS

10.01 Assignment

10.01.01 Prohibition

10.01.02 Reasonable Cause

10.01.03 Effect of Breach

10.01.04 Exception

10.02 Force Majeure

10.02.01 Limitation on Liability

10.02.02 Duty

10.02.03 Right of Other PARTY

10.03 Relationship Between the PARTIES

10.04 Remedies

10.04.01 Choice

10.04.02 No Limitations

11.00 GENERAL PROVISIONS

11.01 Notice

11.02 Dispute Resolution

11.02.01 Good Faith Negotiations

a) Written Notice

b) Meeting

c) Legal Proceedings

d) Protective Measures

11.02.02 Mediation

a) Process

b) Settlement

c) Arbitration

11.02.03   Arbitration

a) Notice

b) Reply

c) Appointment of a Third Arbitrator

d) Subcontracts

e) Confidentiality

f)  Hearing

g) Ruling

h) Costs

i)  Supplementary Rules

11.03 Choice of Forum

11.04 Counterparts

11.05 Amendment

11.06 No Waiver of Rights

11.07 Electronic Transmission and Signature

11.08 Language

12.00 TERMINATION

12.01 Expiry of Term

12.02 Unilateral Termination

12.03 End of Agreement and Project

13.00 EFFECTIVE DATE

14.00 DURATION

15.00 SCOPE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF COLLABORATOR 1
SCHEDULE B – EXCERPT FROM A RESOLUTION OF COLLABORATOR 2
SCHEDULE 0.01.18 – REPORT
SCHEDULE 0.01.20 – SCHEDULE
SCHEDULE 0.01.21 – SPECIFICATIONS