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Intellectual Property
Preliminaries

Service Agreement

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Introduction
Description
Use
Table of Contents

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Introduction

To be competitive, more and more businesses need to innovate at an accelerated pace. As creating a research and development service within the business is not always the ideal solution for this need, the business may prefer to establish close links with a research center specializing in its field of activities in order to entrust the latter with ad hoc research work. This document establishes the legal and financial framework of a collaboration between a business and a research center.

It should be mentioned that in Canada and in Quebec, research and development activities receive favourable tax treatment to stimulate innovation within our businesses. It is important to be familiar with said tax benefits, as they may have a decisive effect on the willingness and ability of a business to engage in such activities.

Description

The service agreement is the legal instrument by which a person called "the client", retains the services of another person, called the research center, in order to benefit from the expertise and equipment of the latter, in the context of research and development.

Use

We recommend the use of this document to govern the relationship between a client wishing to establish a research program or develop a privileged relationship with a research center.

The element of continuity that governs this kind of collaboration justifies the use of such document, as opposed to the purchase order which is better suited to govern a single request for the performance of a specific task.

A research program generally involves a number of successive phases, each with a set of tasks to be performed to attain the objectives set for this phase. This empirical approach is a characteristic of research and development programs and usually translates into several purchase orders for each of the phases. This document should be used mainly to set the general framework of such a program, but not necessarily to go into the details of specific tasks which can be further described in purchase orders.

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Change in Control
0.01.05 Confidential Information
0.01.06 Conception
0.01.07 Encumber or Encumbrance
0.01.08 Equipment
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Industrial Property
0.01.13 Intellectual Property
0.01.14 Legal Representatives
0.01.15 PARTY
0.01.16 Person
0.01.17 Phase
0.01.18 Pilot
0.01.19 Prime Rate
0.01.20 Process
0.01.21 Product
0.01.22 Program
0.01.23 Prototype
0.01.24 Purchase Order
0.01.25 Related Person
0.01.26 Report
0.01.27 Results
0.01.28 Sample
0.01.29 Schedule
0.01.30 Specifications
0.01.31 Subsidiary
0.01.32 Tasks
0.01.33 Technology
0.01.34 Work
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Legal Transaction
1.02 Conditions
1.02.01 Required by CLIENT
1.02.02 Required by RESEARCH CENTER
1.02.03 Choice
2.00 CONSIDERATION
2.01 Agreed Upon Amount
2.02 Adjustments
3.00 TERMS OF PAYMENT
3.01 Instalments
3.01.01 Initial Instalment
3.01.02 Interim Instalment
3.01.03 Final Instalment
3.02 Suspension of Tasks
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
4.01 In favour of CLIENT
4.02 In favour of RESEARCH CENTER
4.03 Letter of Credit
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Canadian Status
6.05 Insurance
6.06 Nominee
6.07 Fundamental Provisions
6.08 Disclosure
6.09 Industrial Property
6.10 Intellectual Property
6.11 Rights
6.12 Safe and Non-Toxic Nature of the Material
7.00 REPRESENTATIONS AND WARRANTIES OF THE RESEARCH CENTER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Canadian Status
7.05 Insurance
7.06 Nominee
7.07 Fundamental Provisions
7.08 Disclosure
7.09 Resources
7.10 Conflict of Interest
7.11 Licence
7.12 Labour Dispute
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE 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 Staff
9.09 Rules of RESEARCH CENTER
9.10 Equipment and Material
10.00 DUTIES AND OBLIGATIONS OF THE RESEARCH CENTER
10.01 Human Resources
10.01.01 Undertaking
10.01.02 Termination
10.02 Acceptation
10.03 Performance of Purchase Order
10.03.01 Purchase Order
10.03.02 Compliance
10.03.03 Compliance with Laws
10.03.04 Personal Performance
10.03.05 Location of Performance
10.03.06 Program Supervision
10.03.07 Amendment
10.04 Schedule
10.05 Visits
10.05.01 Laboratories
10.05.02 Subcontractors
10.05.03 Responsability
10.06 Responsibility
10.07 Results
10.08 Transfer of Property
10.09 Confidentiality
10.09.01 Undertaking
10.09.02 Unauthorized Disclosure
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 No Liability
11.08 Responsibility and Indemnification
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Without Notice
13.04 Prior Notice
13.05 Change in Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewal
15.04 Survival
15.05 Non-Renewal
16.00 SCOPE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE CLIENT
SCHEDULE B – EXCERPT OF A RESOLUTION OF THE RESEARCH CENTER
SCHEDULE 0.01.24 – PURCHASE ORDER
SCHEDULE 0.01.29 - SCHEDULE
SCHEDULE 4.03 – LETTER OF CREDIT
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Civil Law Version
Updated 14-02-2009
Québec
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