INDUSTRY RESEARCH AGREEMENT

THIS AGREEMENT effective this _______ day of ______________ , 20___ , by and between ___________________________________________ (hereinafter referred to as "Sponsor") and the UNIVERSITY OF MAINE SYSTEM acting through the University of Maine, a non profit educational institution of the State of Maine, (hereinafter referred to as "University").

WITNESSETH:

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

NOW THEREFORE, in consideration of the premises 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 description of the project as described in Appendix A hereof, under the direction of  ________________________ as Principal Investigator.

1.2 "Contract Period" is ____________________, 20___ through ___________ _____, 20___ .

1.3 "Subsidiary" shall mean a corporation, company, university campus, or other entity more than fifty percent (50%) of whose outstanding shares, securities or other ownership instruments (representing the right, other than as affected by events of default, to vote for the election of directors or other managing authority) are, now or here after, owned or controlled, directly or indirectly, by a party hereto, but such corporations, company or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.

1.4 "University Intellectual Property" shall mean individually and collectively all inventions, improvements and/or discoveries which are conceived and/or made by one or more employees of University, or jointly by one or more employees of University and by one or more employees of Sponsor in performance of Project.

ARTICLE 2. RESEARCH WORK

2.1 University shall commence the performance of Project promptly after the effective date of this Agreement, and shall use its best efforts to perform such Project substantially in accordance with the terms and conditions of this Agreement.

2.2 In the event that the Principal Investigator becomes unable or is not available, University and/or Sponsor shall have the option to terminate said Project in accordance with Article 10 of this Agreement.

ARTICLE 3 - SPONSOR PROPRIETARY DATA

The free dissemination of information is an essential and long standing policy of the University. However, under exceptional circumstances, the University recognizes that it may properly hold in confidence data supplied by a sponsor which the University considers essential for the conduct of a research program. Accordingly, the University's acceptance and use of any proprietary data which may be supplied by the Sponsor in the course of this research project shall be subject to the following:

(a) The data must be marked or designated in writing as proprietary to the Sponsor.

(b) The University retains the right to refuse to accept any such data which it does not consider to be essential to the completion of the project or which it believes to be improperly designated, or for any other reason.

(c) Where the University does accept such data as proprietary, it agrees to exercise all reasonable efforts not to publish or otherwise reveal the data to others outside the University without the permission of the Sponsor, unless the data has already been published or disclosed publicly by third parties or is required to be disclosed by order of a court of law. It is agreed that such reasonable efforts by University will be in lieu of all other obligations or liabilities of University relative to proprietary information.

ARTICLE 4. REPORTS AND CONFERENCES

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

4.2 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 5 - COSTS, BILLINGS, AND OTHER SUPPORT

5.1 It is agreed and understood by the parties hereto that, subject to Article 2, total costs to Sponsor hereunder shall not exceed the sum of (________________________________) dollars ($_________) unless this amount is increased by written authorization from Sponsor. However, within the total cost, the University must reserve the right to shift funds between budget categories at the discretion of the Principal Investigator.

5.2 Payment shall be made to University by Sponsor in advance according to the following schedule: ($________) plus 1/4 of remainder up front, quarterly payments thereafter, retaining small amount (approx. 5%) for payment after receipt of final report. All such payments shall be made by check payable to the University of Maine, and mailed to:

Accountant

5717 Corbett Hall

University of Maine

Orono, Maine 04469

5.3 University shall maintain complete and accurate accounting records in accordance with accepted accounting practices for institutions of higher education. These records shall be available for inspection, review, and audit at reasonable times by the Sponsor, or its duly authorized representatives, at Sponsor's expense, for two (2) years following the end of the University's fiscal year (July 1 June 30) in which such costs are incurred.

5.4 The funds provided by the Sponsor shall be applied to the direct and indirect costs of this investigation. Indirect costs, otherwise called overhead, shall be assessed at the applicable rate(s) in effect at the University at the time direct costs are incurred.

5.5 Anything herein to the contrary notwithstanding, in the event of early termination of this Agreement by Sponsor pursuant to Article 10 hereof, Sponsor shall pay all costs accrued by University as of the date of termination, including non cancelable obligations, which shall include all non cancelable contracts and fellowships or postdoctoral associate appointments called for in Appendix A, incurred prior to the effective date of termination. After termination, any obligation of Sponsor for fellowships or University's academic year following termination.

5.6. Sponsor shall loan/donate the following equipment to University under the following conditions: (_______________________________________), except as specified in Appendix A. University shall retain title to any equipment purchased with funds provided by Sponsor under this Agreement, except as specified in Appendix A.

ARTICLE 6 - PUBLICITY

6.1 Sponsor will not use the name of University, nor of any member of University's Project staff, in any publicity, advertising, or news release without the prior written approval of an authorized representative of University. University will not use the name of Sponsor, nor any employee of Sponsor, in any publicity without prior written approval of Sponsor. However, this does not preclude Sponsor or University from publicly announcing the award of this Project.

 

ARTICLE 7 – PUBLICATIONS

 

7.1 Sponsor recognizes that under University policy, the results of University 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 or dissertations, or otherwise of their own choosing, methods and results of Project, provided, however, that Sponsor shall have been furnished copies of any proposed publication or presentation at least thirty five (35) days in advance of the submission of such proposed publication or presentation to a journal, editor, or other third party. Sponsor shall have thirty (30) days, after receipt of said copies, to object to such proposed presentation or proposed publication because there is patentable subject matter which needs protection. In the event that Sponsor makes such objection, such Researcher(s) shall refrain from making such publication or presentation for a maximum of one year from date of receipt of such objection in order for University to file patent application(s) with the United States Patent and Trademark Office and/or foreign patent office(s) directed to the patentable subject matter contained in the proposed publication or presentation.

ARTICLE 8 - INTELLECTUAL PROPERTY

8.1 All rights and title to University Intellectual Property under Project shall belong to University and shall be subject to the terms and conditions of this Agreement.

8.2 Rights to inventions, improvements and/or discoveries, whether patentable or copyrightable or not, relating to Project made solely by employees of Sponsor shall belong to Sponsor. Such inventions, improvements, and/or discoveries shall not be subject to the terms and conditions of this Agreement.

8.3 University will promptly notify Sponsor of any University Intellectual Property conceived and/or made during the Contract Period under Project. If Sponsor directs that a patent application or application for other intellectual property protection be filed, University shall promptly prepare, file, and prosecute such U.S. and foreign application in University's name. Sponsor shall bear all costs incurred in connection with such preparation, filing, prosecution, and maintenance of U.S. and foreign application(s) directed to said University Intellectual Property. Sponsor shall cooperate with University to assure that such application(s) will cover, to the best of Sponsor's knowledge, all items of commercial interest and importance. While University shall be responsible for making decisions regarding scope and content of application(s) to be filed and prosecution thereof, Sponsor shall be given an opportunity to review and provide input thereto. University shall keep Sponsor advised as to all developments with respect to such application(s) and shall promptly supply to Sponsor copies of all papers received and filed in connection with the prosecution thereof in sufficient time for Sponsor to comment thereon.

8.4 If Sponsor elects not to exercise its option under Article 8.3 or decides to discontinue the financial support of the prosecution or maintenance of the protection, University shall be free to file or continue prosecution or maintain any such application(s), and to maintain any protection issuing thereon in the U.S. and in any foreign country at University's sole expense.

ARTICLE 9 - GRANT OF RIGHTS

9.1 Pursuant to Article 8.3, University grants Sponsor the first option, at Sponsor's sole selection, for either a non exclusive, royalty free license or, for consideration, an exclusive license with a right to sublicense on terms and conditions to be mutually agreed upon. The option shall extend for a time period of one year from the date of termination of the Agreement.

ARTICLE 10 - TERM AND TERMINATION

10.1 This Agreement shall become effective upon the date first hereinabove 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 which the parties reduce to writing and sign. Either party may terminate this Agreement with or without cause upon ninety (90) days prior written notice to the other.

10.2 In the event that either party hereto shall commit any breach of or default in any of the terms or conditions of this Agreement, and also shall fail to remedy such default or breach within ninety (90) days after receipt of written notice thereof from the other party hereto, the party giving notice may, at its option and in addition to any other remedies which it may have at law or in equity, terminate this Agreement by sending notice of termination in writing to the other party to such effect, and such termination shall be effective as of the date of the receipt of such notice.

10.3 In the event of an unavoidable delay University may withdraw from further performance of this Agreement, upon giving Sponsor thirty (30) days advance written notice. The following reasons shall be considered unavoidable delays:

A. The University's state-provided funds have been substantially curtailed or diminished; or

B. The University loses one of the key personnel on this project and is unable to find a replacement suitable to Sponsor.

It is further agreed that neither party shall be liable for unavoidable delays caused by fire, flood, accident, war, act of government (state and federal) or any other cause reasonably beyond its control, but shall use all reasonable efforts to minimize the extent of the delay.

10.4 Termination of this Agreement by either party for any reason shall not affect the rights and obligations of the parties accrued prior to the effective date of termination of this Agreement. No termination of this Agreement, however, effectuated, shall affect the university's rights and duties under Article 7 and Article 8 hereof, or release the parties hereto from their rights and obligations under Articles 5, 6, 7, 8, and 13.

ARTICLE 11 - ARBITRATION

Any dispute arising out of or relating to this Agreement, or any breach thereof, shall be settled by arbitration conducted in the State of Maine in accordance with the rules of the American Arbitration Association. The award rendered by the arbitrators shall be final, and judgment may be entered upon in any court having jurisdiction thereof.

ARTICLE 12 - INDEMNIFICATION

Sponsor hereby waives any claim against and agrees to indemnify and hold harmless the University, its officers, employees and agents from and against any and all claims, damages, losses, and expenses including attorney's fees arising out of or resulting from performance under this agreement, except to the extent that such claims, damages, losses, and expenses arise from the willful or negligent act or omission of the University. Sponsor hereby expressly waives all employer immunity under Maine's Workers’ Compensation Act, 39 M.R.S.A. Section 4.

ARTICLE 13 - INDEPENDENT CONTRACTOR

13.1 In the performance of all services hereunder:

(a) University shall be deemed to be and shall be an independent contractor and, as such, University shall not be entitled to any benefits applicable to employees of Sponsor.

(b) 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, or representation as to any matter. Neither shall be bound by the acts or conduct of the other.

(c) Sponsor and any of sponsor's employees or agents acting under this Agreement shall not be entitled to any benefits applicable to the employees of the University.

ARTICLE 14 - INSURANCE

14.1 University warrants and represents that University has comprehensive general liability insurance, for its officers, employees and agents acting within the scope of their employment by the University.

14.2 Each party hereby assumes any and all risks of personal injury and property damage attributable to the willful or negligent act or omission of its own officers, employees and agents.

ARTICLE 15 - GOVERNING LAW

15.1 This Agreement shall be governed and construed in accordance with the laws of the State of Maine.

ARTICLE 16 - ASSIGNMENT

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

ARTICLE 17 - AGREEMENT MODIFICATION

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

ARTICLE 18 - NOTICES

18.1 Notices, invoices, communications, and payments hereunder shall be deemed made if given by registered or certified envelope, 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:
                        SPONSOR
                        ADDRESS
                        CITY 
                        STATE
                        ZIP CODE

 

 

If to University:

                        James S. Ward, IV

                        Authorized Institutional Representative

                        5717 Corbett Hall

                        University of Maine

                        Orono, Maine  04469-5717

 

 

If Technical Matter:

                        ______________________________

                        ______________________________

                        ______________________________

                        University of Maine

                        Orono, Maine  04469

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

 
 
SPONSOR                                UNIVERSITY OF MAINE SYSTEM
                                 Acting through the University of Maine                       
 
_______________________________       __________________________________
 
By:____________________________       By:    James S. Ward, IV
                                             
Title:_________________________       Title: Authorized Institutional Representative
                                               
 
Date: _________________________       Date:____________________________
 
 
 
 

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