International Strategic Alliance Agreement
International Strategic Alliance Agreement
International Strategic Alliance Agreement
1. Definition 2. Parties to the Agreement 3. Main clauses and sample 3.1 Objectives of the Alliance 3.2 Territory 3.3 Management committee 3.4 Contribution of the parties 3.5 Duration and termination 4. Law applicable 5. Model Agreement
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1. DEFINITION
This agreement governs the relationship between two companies located in different countries that desire to achieve joint benefits through the formation of a Strategic Alliance that may have distinct objectives. Some of these may include carrying out a research project, designing and manufacturing new products, providing complementary services, exchanging clients and commercial networks, etc. The Agreement outlines the objectives of the Alliance, forms a Management Committee to carry out these objectives, establishes the contributions each party will pay for the financing expenses (preferably 50-50) and establishes the profit sharing.
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3. MAIN CLAUSES AND SAMPLE Some of the most important clauses in the International Strategic Alliance Agreement are as follows: Objectives of the Alliance Territory Management Committee Contribution of the parties Duration and termination
3.2 TERRITORY
Alternative A. The territory in which the Alliance is concerned shall be the whole of .................... [mention country or countries]. Alternative B. The territory in which the Alliance is concerned shall be initially the whole of .................... [mention country or countries], and at a later stage the territory that includes .................... [mention country or countries].
4. LAW APPLICABLE
International Law standards are not applied to this type of Agreement. The parties are free to submit any conflicts regarding the agreement to International Arbitration or to the Laws of the country of one of the parties. They will normally be subject to the Laws of the country where the Alliance is established.
5. MODEL CONTRACT
In order to obtain the model contract in Word format and the user guide, click on: International Strategic Alliance Agreement
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