Industrial Research Agreement

 

            THIS AGREEMENT, effective this ___ day of ________, 2003, is made by and between:

 

[          company name              ]

[           street address               ]

 a [ insert state of incorporation]corporation,  (hereinafter referred to as “Sponsor”)     

 

and

 

[     institution name     ]

[     street address    ]

a member of the Tennessee Board of Regents,  (hereinafter jointly referred to as “University”).

 

 

WITNESSETH:

 

            WHEREAS, the research project contemplated by this agreement is of mutual interest and benefit to Sponsor and to University, will further the instructional and research objectives of University in a manner consistent with its status as a non-profit, tax-exempt, public institution of higher education, and may derive benefits for both Sponsor and University through inventions, improvements, and/or discoveries;

 

            NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, the parties hereto agree to the following:

 

 

Article 1 - Definitions

 

As used herein, the following terms shall have the following meanings:

 

            1.1       “Project” shall mean the project described in Appendix A hereof, under the direction of Dr. [                 ], as principal investigator.  The principal investigator is responsible for directing research activity. 

 

            1.2       “Contract Period” is _________________  until  _________________.

 

 

 

Article 2 - Research Work

 

            2.1.      University shall commence the performance of Project promptly after the effective date of this Agreement, and shall use reasonable efforts to perform such Project substantially in accordance with the terms and conditions of this Agreement.  Anything in this Agreement to the contrary notwithstanding, Sponsor and University may at any time amend the scope of the Project by mutual written agreement.

 

 

2.2       In the event that the principal investigator becomes unable or unwilling to continue Project, and a mutually acceptable substitute is not available, University and/or Sponsor shall have the option to terminate said Project.

 

2.3       Sponsor understands that the University’s primary mission is education and advancement of knowledge and the Project will be designed to carry out this mission.  The manner of performance of the Project will be determined solely by the Principal Investigator.  The University will perform the Project on a “best efforts” research basis only and does not guarantee specific results.  The University specifically disclaims all warranties or representations, either express or implied, for implied merchantability or for warranty of fitness for a particular purpose, including, without limitation, that any product does not infringe any patent, copyright or trademark right, as to any work performed under this Agreement, except as expressly set forth herein.

 

2.4       Sponsor understands that the University may be involved in similar research through other researchers on behalf of itself and others.  University shall be free to continue such research provided that, during the term of this Agreement, it is conducted separately and by different investigators from the Project, and Sponsor shall not gain any rights via this Agreement to other research.

 

 

 

Article 3 - Reports and Conferences

 

            3.1       Written program reports shall be provided by University to Sponsor every three (3) months and a final report shall be submitted by University within 60 days of the conclusion of the Contract Period, or early termination of this Agreement.

 

            3.2       During the term of this Agreement, representatives of University will meet with representatives of Sponsor at times and places mutually agreed upon to discuss the progress and results, as well as ongoing plans, or changes therein, of Project to be performed hereunder.

 

 

 

Article 4 - Cost, Billings and Other Support

 

            4.1       As consideration for the University’s performance, Sponsor will pay the University an amount equal to its expenditures and reasonable overhead in conducting the Project.  It is agreed to and understood by the parties hereto that, pursuant to Section 2.1, total costs to Sponsor hereunder shall not exceed the sum of  _________________________ Dollars ($ ______________).  Payment shall be made by Sponsor according to the following schedule:

 

                                    [                insert payment schedule                    ].

 

 

 

 

 

 

 

 

4.2       In the event of early termination of this Agreement by Sponsor for convenience, Sponsor shall pay all costs accrued by the University as of the date of termination, including non-cancelable obligations, which shall include all non-cancelable contracts and fellowships or post-doctoral associates, which shall end no later than the end of the University’s academic year following termination.

 

4.3       University shall retain title to all equipment purchased and/or fabricated by it with funds provided by Sponsor under this Agreement.

 

 

Article 5 - Publicity

 

Sponsor will not use the name of University, or any employee of University, in any publicity, advertising, or news release without the prior written approval of an authorized representative of the University.  Authorized University representatives include but are not limited to:      [insert titles of authorized signatories…]   University will not use the name of Sponsor, or any employee of Sponsor, in any publicity without the prior written approval of Sponsor.

 

 

Article 6 - Publications

 

Sponsor recognizes that under University policy, the results of Project must be publishable and agrees that Researchers engaged in Project shall be permitted to present at symposia, national or regional professional meetings, and to publish in journals, theses, dissertations, or otherwise of their own choosing, the methods and results of Project; provided, however, that Sponsor shall have been furnished copies of any proposed publication or presentation at least thirty days in advance of the submission of such proposed publication or presentation to a journal, editor, or other third party to permit Sponsor to object  to such proposed presentation or proposed publication because there is patentable subject matter or proprietary information which needs protection.  Sponsor shall provide the University with such objection in writing within thirty days of receiving a proposed publication or forever waive its rights in this regard. 

 

In the event that Sponsor makes objection, University shall refrain from making such publication or presentation for a maximum of three months from date of receipt of such objection in order for patent application(s) to be filed by the appropriate party and/or for the proprietary information to be removed or redacted.

 

 

 

 

Article 7 - Intellectual Property

 

It is understood that during the course of the Sponsored Research valuable intellectual property may be generated by Univesity personnel alone or jointly with Sponsor personnel.  The following terms concerning intellectual property and inventions shall apply to this Agreement:

 

 

7.1       All rights and title to inventions and intellectual property, including but not limited to US and foreign patent applications and patents resulting therefrom, which are invented solely by University personnel, will belong to University.  All rights and title on inventions and intellectual property, including but not limited to US and foreign patent applications and patents resulting therefrom, which are invented jointly by University and Sponsor personnel shall belong jointly to Sponsor and University.

 

7.2       At Sponsor’s option, University and Sponsor agree to negotiate in good faith for the transfer of rights to inventions or other intellectual property held by the University that may have arisen from Project.  University agrees to offer Sponsor the grant of an exclusive or non-exclusive, worldwide or geographically-restricted, full or field-of-use license, to any inventions or other intellectual property in exchange for mutually agreeable compensation.

 

7.3       Sponsor shall have three (3) months from disclosure of any invention or discovery to notify University that it wants to enter into such a license agreement.  The parties shall negotiate in good faith for a period not to exceed six (6) months from Sponsor’s notification or a longer period of time if the parties mutually agree to extend negotiations.  If Sponsor and University fail to enter into such an agreement, the rights to such inventions or other intellectual property shall be disposed of in accordance with University policies, with no obligation to Sponsor.  Until an invention or other intellectual property has been presented as set forth above, University shall not offer rights to that invention or property to any third party.  In the event that Sponsor elects to obtain said license, Sponsor shall bear the expense of the prosecution of any related patent applications, including without limitation, patentability investigation expenses, on behalf of University and University personnel.

           

7.4       In the event that University declines to file patent applications in the US or in any foreign countries on any patentable inventions, the rights to file will, with prior agreement of all persons who will be engaged in the Project, be transferred by University and those persons to Sponsor, if Sponsor so requests.  Under these circumstances, patent applications filed by Sponsor will be made with the understanding that a share in royalties equivalent to that provided to the inventor(s) under the current University patent policy will be provided to the inventor(s) by Sponsor. 

 

 

 

 

 

Article 8 - Term and Termination

 

8.1       This agreement shall become effective upon the date first herein above written and shall continue in effect for the full duration of the Contract Period unless sooner terminated in accordance with the provisions of this Article.  The parties hereto may, however, extend the term of this Agreement for additional periods as desired under mutually agreeable terms and conditions that the parties reduce to writing and sign.

 

8.2       Either party may terminate this Agreement for convenience upon sixty (60) days prior written notice to the other, subject to Section 4.2 hereof.

 

8.3       Any provisions of this Agreement which by their nature extend beyond termination, e.g., without limitation, Articles 4-7, 10-11, shall survive such termination.

 

 

Article 9 - Independent Contractor

 

In the performance of services hereunder:

 

9.1       University shall be deemed to be and shall be an independent contractor and, as such, neither University or its employees shall be entitled to any benefits applicable to employees of Sponsor, nor shall Sponsor or its employees be entitled to any benefits applicable to employees of University;

 

9.2       Neither party is authorized or empowered to act as agent for the other for any purpose and shall not on behalf of the other enter into any contract, warranty, statement, commitment or representation as to any matter.  Neither shall be bound by the acts or conduct of the other.

 

 

Article 10 - Indemnification

 

Sponsor shall indemnify and hold harmless University against any and all actions, claims, costs, or liabilities, including attorneys’ fees and court costs at both trial and appellate levels, for any loss, damage, injury, or loss of life caused by (a) the actions of Sponsor, its officers, servants, agents or of any third party acting under authorization from Sponsor, or (b) for products developed or made by or as a result of information or materials received from the University.  Article 10 shall apply with the proviso that (a) University promptly notifies Sponsor in writing after University receives notice of any claim, (b) Sponsor is given the opportunity, at its option, to participate and associate with University in control, defense, and trial of any claim and any related settlement negotiations, and (c) University fully cooperates with Sponsor in the defense of any such claim.  The defense and indemnity provisions of Sponsor shall survive the termination or natural expiration of this Agreement.

 

 

 

Article 11 - Insurance

 

Sponsor shall procure and maintain the following insurance coverage:

 

11.1          Workers compensation and employers liability insurance at statutory limits for workers compensation and no less than $1,000,000 for employers liability.

 

11.2          Commercial general liability insurance, including contractual liability coverage and products and completed operations liability coverage, and, if necessary, commercial umbrella insurance, with a limit of not less than $1,000,000 each occurrence.  If such insurance includes a general aggregate limit, it shall apply separately to this Project.  The University shall be included as an additional insured under the CGL policy.

 

 

Article 12 - Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee, without resort to its choice or conflict of laws principles.  Sponsor hereby submits to the jurisdiction of the State of Tennessee. 

 

 

Article 13 - Assignment

 

This Agreement shall not be assigned by either party without the prior written consent of the other.

 

 

Article 14 - Agreement Modification

 

Any agreement to change the terms of this Agreement in any way shall be valid only if the change is made in writing and executed by authorized representatives of the parties hereto.

 

 

Article 15 - Notices

 

Notices, invoices, communications, and payments hereunder shall be deemed made if given by United States registered or certified mail, postage prepaid, and addressed to the party to receive such notice, invoice, or communication at the address given below, or such other address as may hereafter be designated by notice in writing:

 

If to Sponsor:               [  insert information       ]

 

 

If to University: [   insert information   ]

 

 

 

Article 16 -  Non Discrimination

 

            The parties agree to comply with Titles VI and VII of the Civil Rights Act of l964, Title IX of the Education Amendments of l972, Section 504 of the Rehabilitation Act of 1973, Executive Order 11,246, the Americans with Disabilities Act of 1990 and the related regulations to each.  Each party assures that it will not discriminate against any individual including, but not limited to, employees or applicants for employment and/or students because of race, religion, creed, color, sex, age, disability, veteran status or national origin.

The parties also agree to take affirmative action to ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, religion, creed, color, sex, disability, or national origin.  Such action shall include, but not be limited to, the following:  employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection available to employees and applicants for employment.

 

 

Article 17 – Conflict of Interest

            The Sponsor warrants that no part of the total contract amount provided herein shall be paid directly or indirectly to any officer or employee of the State of Tennessee as wages, compensation, or gifts in exchange for acting as officer, agent, employee, subcontractor, or consultant to the Sponsor in connection with any work contemplated or performed relative to this contract.  

 

 

 

Article 18 – Entire Agreement

 

            This written Agreement constitutes the entire and only agreement between the parties relating to the Project and supersedes all prior negotiations, representations, agreements and understandings.  The parties expressly disclaim reliance on any such prior negotiations, representations, agreements or understandings.

 

 

 

 

 

            IN WITNESS WHEREOF, the parties have caused these presents to be executed in duplicate as of the day and year first above written.

 

 

AGREED TO AND ACCEPTED BY:

 

[                Sponsor ]                                           [   University     ]

 

 

By: _________________________                By: ___________________________

 

 

Name: ______________________                 Name: _________________________

 

                                                           

Title:    ______________________                 Title: __________________________

 

 

Date:    ______________________                Date: __________________________