Form of Foreign Collaboration Agreement [CD1]
An Agreement executed this
……………. day of…………………. Between ………………a foreign company incorporated in the
United Kingdom and having its registered office at…………………….(hereinafter called
the “U.K. Company”) of the one part AND a company incorporated in India and
having its registered office at………………..(hereinafter called the Indian company)
of the other part.
Whereas the Indian Company
has been incorporated having for its object the manufacture and production
of………………….;
And Whereas the Indian
Company has already constructed factory buildings, installed plant and
machinery and commenced manufacture and production of.…………….; Whereas the Indian
company with a view to improve still further the quality of the commodities
manufactured and to increase production are desirous of procuring the latest
technique and know-how related to the manufacture of the above-said commodities
; Whereas the Indian Company thereof approached the U.K. Company who have
considerable experience in the line of manufacture engaged in by the Indian
Company and requested them to extend to them necessary technical assistance in
that behalf, and whereas the U.K. Company has agreed to extend technical
assistance and to furnish to the Indian Company for improvement of their
business to requisite know-how in the form of designs , plans, engineering
drawings, technical advice and also to supply technicians to advise for
improvement of the existing factories, machinery, and plant and also provide to
the Indian personnel necessary technical training to enable them to
successfully handle and exploit the technical know-how to be imparted to the
Indian Company subject to the terms and conditions set out hereunder :
Now This Agreement Witnesses
as follows :
1. In consideration of the
remuneration paid by the Indian Company to the U.K. Company as described
hereinafter the U.K. Company shall supply to the Indian Company-
2.
a.
technical advice and know-how for the purpose
of improving or adding to the existing factories and installing additional
plant and machinery if necessary for the manufacturer of…………………….
b.
further the necessary plans, factory-designs
and layouts, charts and drawings, documentation and other forms of technical
know-how for the said purpose ;
c.
render advice in the matter of purchase of
the further plant and machinery suitable and necessary for the factory ;
d.
lend the services of their technicians to
assist the Indian Company in carrying out the improvement to the factories and
for installing additional plant and machinery:
e.
provide technicians from their own staff to
attend at the Indian Company’s factory in India, whenever necessary ;
f.
impart technical training to selected Indian
personnel at their works in England or in their associated companies, to enable
them to operate the machinery and plant to be installed and to exploit the
imported technical know-how to the best advantage.
g.
Advice the Indian Company promptly and to the
best of their ability, in connection with any technical or manufacturing
problems or difficulties which may be referred to it by the Indian Company
during the continuance of this agreement.
3.
For technical know-how and data supplied by
the U.K. Company to the Indian Company as above the Indian Company shall make a
lump sum payment of Rs……………..to the U.K. Company phased as follows :
a.
One-third on approval of the agreement by the
Central Government;
b.
One-third, on the U.K. Company supplying the
Indian company necessary charts, plans, engineering drawings, documentation and
other technical date as know-how which shall be done within 15 days from the
date of approval of this agreement by the Central Government.
c.
The balance 1/3 in three equal annual
installments thereafter commencement of production.
4.
This agreement shall be in force for a period
of 5 years at the first instance, subject to extension for a further period of
3 years by mutual agreement and subject to approval by the Central Government.
5.
The Indian Company may put not bound to use
foreign brand names on their products for internal sale or on products to be
exported.
6.
There shall be no restriction on the Indian Company
exporting their products to foreign countries.
7.
The Indian Company shall not have the right
to pledge, mortgage or assign to sub-licensee the technical know-how, data,
engineering designs, lay-out, etc. to other parties, without the consent in
writing of the U.K. Company.
8.
There shall be no restraint on the Indian
Company having their own arrangements for procurement of raw materials,
purchase of spares and components and for pricing their products and the sale
thereof.
9.
Technicians who may be deputed by the U.K.
Company to the Indian Company to advice and assist the Indian Company under
this agreement shall be paid their salary, travelling expenses and boarding and
lodging by the Indian Company.
10. The
Indian Company shall likewise bear all the expenses of the persons sent by them
to the U.K. Company for training in their works under CI. 1(f) (supra).
11. The
parties hereto mutually agree that they will each inform the other of any new
development in design or methods of manufacture which they respectively may
discover during the continuance of this agreement in so far as such new
developments are applicable to the products manufactured by the Indian Company.
12. The
Indian Company shall maintain the utmost secrecy in connection with any
technical data supplied by the U.K. Company under this agreement, and in
particular shall keep all data connected with the manufacturing processes under
lock any key.
13. It
is agreed that the payment made to the U.K. Company shall include the
compensation to use of the patent rights for the period of its duration and
that the Indian Company shall have the rights to manufacture their products
even after the expiry of this agreement.
14. The
Indian Company shall not during the continuance of the agreement refer any
technical or manufacturing problems or difficulties to any one other than the
U.K. Company as its sole technical consultant.
15. On
the expiry of the period prescribed herein or of extended period provided in
CI. 3 (supra) or upon the termination of this agreement for any reason the
Indian Company shall return to the U.K. Company all copies of information, data
or material sent to it by the U.K. Company under this agreement and then in its
possession and shall expressly refrain from communicating any such information,
technical data or material received by it hereunder to any person, firm or
company whatsoever.
In Witness Whereof, the
parties hereto have signed this agreement this……………day of……………,2000 in the
presence of the following :
WITNESSES
1.
2.
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