CONSORTIUM AGREEMENT
BETWEEN:
PARTNER 1 (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
PARTNER 2 (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
PARTNER 3 (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
Partner 1 to Partner 3 individually referred to as “Industrial Partner” and together referred to as
“Industrial Partners”;
AND
PARTNER A (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
PARTNER B (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
PARTNER C (“
”), having its office at ADDRESS, The Netherlands and represented in this matter
by its POSITION, NAME;
Partner A to Partner C individually referred to as “Knowledge Institute” and together hereinafter
referred to as “Knowledge Institutes”;
AND
STICHTING TOPCONSORTIUM VOOR KENNIS EN INNOVATIE AGRI&FOOD (“TKI Agri&Food”)
having its office at ADDRESS, The Netherlands and represented in this matter by its POSITION, NAME
The Industrial Partners and Knowledge Institutes hereinafter jointly referred to as “Parties” and
individually referred to as “Party”.
TKI Agri&Food shall only be a Party to this Consortium Agreement for the purpose of Articles 4.3, 7.3
and 10.
WHEREAS:
 In February 2011 the Dutch government deployed a new innovation policy, which aims at
strengthening the international competitiveness of nine leading industrial sectors (the Topsectors)
through innovation;
 The core principle of the innovation policy is demand-driven research through collaboration between
industry, academia and government, funded by both industry and government;
 This new policy is implemented through the installation of at least one TKI (as defined hereafter)
per Topsector, such TKI having a role in determining the research agenda of the relevant Topsector.
Ultimately, the Minister of Economic Affairs is responsible for the grant of public funding.
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 Parties have expressed their intention to participate in the project entitled “
of which they submitted a proposal to the TKI Agri&Food;
”, for the purpose
 Since EZ (as defined hereafter) has granted the requested subsidy pursuant to the application dated
, Parties hereby wish to set out their mutual rights and obligations within the context of the
Project (as defined hereafter) and involve TKI Agri&Food for the purpose of Articles 4.3, 7.3 and 10;
 The Knowledge Institutes involved are responsible for the negotiation process regarding their
research results, aiming at adequate and effective utilization of these results by the Industrial
Parties involved;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
Article 1: Definitions
1.1
Definitions
“Access Rights” means a license to Foreground or Background.
“Affiliated Entity” means the legal entity that is either the ultimate parent company of a Party or that
is under the direct or indirect control of a Party, or under the same direct or indirect control as the
Party, control taking any in the following forms:
(a) the direct or indirect holding of more than 50% of the nominal value of the issued share capital
in the legal entity concerned, or of a majority of the voting rights of the shareholders or
associates of that entity;
(b) the direct or indirect holding, in fact or in law, of decision-making powers in the legal entity
concerned.
“Background” means information or material which is either held by a Party prior to its accession to
this Consortium Agreement or that has been developed or obtained by a Party after the Effective Date
of this Consortium Agreement independently from the Project, as well as any intellectual property
rights pertaining to such information or material.
“Coordinator” is the Party that is authorised by the other Parties to act as the secretary or “penvoerder”
to the Parties, having the tasks assigned to it under Article 6.3.2.
“Consortium Agreement” means this agreement as well as all annexes and addenda thereto.
“Defaulting Party” a Party in substantial breach of its obligations under this Consortium Agreement –
not caused by force majeure (“overmacht”) - which is irremediable or which is not remedied within
ninety (90) days of written notice from the Coordinator requiring that it be remedied.
“Effective Date” means
.
“EZ” means the Dutch Ministry of Economic Affairs.
“Favourable Terms” means a discount equivalent to the cash or in kind contribution of an Industrial
Partner to the costs of the Knowledge Institute’s activities that resulted in the Foreground concerned.
"Foreground” means the results, including information, know-how and materials, whether or not they
can be protected, which are generated under the Project. Such results include rights related to
copyright, design rights, patent rights, plant variety rights, or similar forms of protection.
“Invention Disclosure Form” means a document used to evaluate the patentability of an invention, see
template in Annex 3.
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“Project” means all activities related to the project entitled: “
accordance with the Project Plan.
”, which shall be carried out in
“Project Budget” means the allocation of all the resources in cash or in kind contributed by EZ,
Industrial Parties and TKI Agri & Food for the Project (including managing costs of the Coordinator) as
specified in the Project Plan.
“Project Committee” is the decision-making body for the Project.
“Project Plan” means the description of research and related budget for the Project, which is attached
to this Consortium Agreement as Annex 1.
“Project Share” means the total in kind or cash contribution of a Party to the Project as set forth in
the Project Plan.
“Publication” mean(s) publication(s) for scientific journals, press releases, seminars or any other
public disclosure. Publications as mentioned in this Agreement are not publications for patents and/or
other intellectual property rights’ related issues.
"Subcontractor" means a third party that carries out activities within the scope of the Project on
behalf of a Party.
“TKI” means Topconsortium voor Kennis en Innovatie.
“TKI Conditions” means all conditions imposed by TKI Agri&Food and/or EZ in connection with the
Project, such as, without limitation, Article 2.2.2 of the Community Framework for State Aid (2014/C
198/01), the Kaderbesluit EZ-subsidies (21 November 2008), the Regeling nationale EZ-subsidies (11
July 2014), the Subsidieregeling sterktes in innovatie (3 December 2008, nr. WJZ/8187136), and the
TKI-toeslagregeling (31 August 2012, WJZ/12045145) modified by Regeling van de Minister van
Economische Zaken (1 November 2013, nr. WJZ/13135860).
Article 2: Purpose
The purpose of this Consortium Agreement is to specify with respect to the Project the
relationship among the Parties, in particular concerning the organisation of the work under the Project
between the Parties, the management of the Project and the rights and obligations of the Parties
concerning inter alia finances, liability, Background, Foreground, Access Rights and dispute resolution.
Article 3: Entry into force, duration and termination
3.1
Entry into force
An entity becomes a Party to this Consortium Agreement upon signature of this Consortium Agreement
by its duly authorised representative(s).
This Consortium Agreement shall enter into force as per the Effective Date.
3.2
Duration and termination
This Consortium Agreement shall remain in full force and effect until
[expiry date of Project].
This Consortium Agreement may be terminated prematurely in accordance with the terms of this
Consortium Agreement.
Each party is entitled to request the Project Committee to terminate its participation in the Project and
the Consortium Agreement as stipulated in article 6.2.5.
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Each Party is entitled to forthwith terminate the Consortium Agreement in the event of a final decision
(not open to appeal) of EZ to discontinue funding the Project.
The Coordinator is entitled to terminate the Consortium Agreement with immediate effect by registered
letter towards a Party:
a.
that is declared bankrupt or granted suspension of payments, or for which an application to that
end is filed;
b.
whose business is liquidated or discontinued;
c.
that is in a situation of force majeure as described in Article 5.4, which has continued for a
period longer than ninety (90) days.
3.3
Defaulting Party
The Project Committee may decide to declare a Party to be a Defaulting Party and decide on the
consequences thereof which may include termination of its participation in the Project.
In such event the Defaulting Party shall – up to the Defaulting Party’s Project Share - bear any
reasonable and justifiable additional costs occurring to the other Parties in order to perform its and
their tasks. Any excess amount shall be apportioned to the remaining Parties pro rata to their
share in the total costs of the Project as identified in the Project Budget.
3.4
Survival of rights and obligations
The provisions relating to Access Rights and confidentiality, for the term set forth therein, as well as
for liability, applicable law and settlement of disputes shall survive the expiration or termination
(including termination towards a Defaulting Party) of this Consortium Agreement.
Article 4: Responsibilities of Parties
4.1
General principles
Each Party shall contribute to the efficient implementation of the Project Plan and shall
cooperate, perform and fulfil, promptly and on time, all of its obligations under this Consortium
Agreement as may be reasonably required from it and in a manner of good faith as prescribed by
Dutch law.
In the event the subsidy amount requested has not been fully granted by EZ or TKI, Parties and TKI
Agri&Food agree that it may be necessary to adjust the Project Plan, after mutual consent of Parties, in
order to reflect the activities to be carried out in relation to the actual amount granted.
Each Party undertakes to notify promptly, in accordance with the governance structure of the
Project, any significant information, fact, problem or delay, that is likely to affect the Project.
Each Party shall provide promptly all information reasonably required by the Project Committee or
Coordinator to carry out its tasks.
Each Party shall support the achievement of the goals of the Project and shall strive to only disclose
any of its Background as necessary therefore by listing such Background in Annex 2. However, neither
Party shall have an obligation to disclose any of its Background. Background remains the sole property
of the Party disclosing Background under the Project. Unless expressly agreed otherwise in writing, the
disclosure of any Background does not imply the grant of Access Rights by the disclosing Party.
Each Party shall take reasonable measures to ensure the accuracy of any information (including
Background and Foreground) or material it supplies to the other Parties.
4.2
Involvement of third parties
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A Party is only allowed to involve third parties in the execution of its work under the Project upon prior
approval thereof by the other Parties. A Party that involves third parties (including, but not limited to,
Affiliated Entities) in the Project shall at all times remain responsible for the execution of its relevant
part of the Project and for such third party’s compliance with the provisions of this Consortium
Agreement. It has to ensure that the involvement of third parties does not affect the rights and
obligations of the other Parties under this Consortium Agreement.
4.3
Financial and scientific reporting
In connection with reporting requirements of TKI Agri&Food, Parties shall provide the Coordinator with
financial and scientific reports with regard to the Project. Parties agree that Knowledge Institute
’s/Knowledge Institutes
’s financial reporting requirements are complied with through
submission of financial reports based on the existing reporting instruments for EZ funding granted to
such Knowledge Institute/Knowledge Institutes.
In addition, as Knowledge Institute
/Knowledge Institutes
is also accountable to EZ
directly for the execution of its part of the Project, Parties acknowledge that Knowledge Institute
/Knowledge Institutes
provides EZ with financial reports as well as outline scientific
reports (which may include an abstract of the Project Plan) on the Project.
Article 5: Liability
5.1
No warranties
In respect of information or materials (including Background and Foreground) supplied by one Party to
another under the Project, no warranty or representation of any kind is made, given or implied as to
the sufficiency, accuracy or fitness for purpose of such information, nor as to the absence of any
infringement of any proprietary rights of third parties.
The receiving Party shall be entirely and solely liable for the use to which it puts such information and
materials.
No Party granting Access Rights shall be liable in case of infringement of proprietary rights of a third party
resulting from any other Party exercising its Access Rights.
5.2
Limitations of contractual liability
No Party shall be responsible to any other Party for punitive damages, indirect or consequential
loss or similar damage such as, but not limited to, loss of profit, loss of revenue or loss of contracts.
A Party’s aggregate liability under or in connection with this Consortium Agreement towards the other
Parties collectively shall be limited to once its Project Share.
The exclusions and limitations of liability stated above shall not apply in the event such damage was
caused by a wilful act or gross negligence.
5.3
Damage caused to third parties
Each Party shall be solely liable for any loss, damage or injury to third parties resulting from the
performance of the said Party’s obligations under this Consortium Agreement or from its use of
Foreground or Background.
5.4
Force Majeure
No Party shall be considered to be in breach of this Consortium Agreement if such breach is caused by
force majeure. Each Party will notify the Coordinator of any force majeure as soon as possible. If the
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consequences of force majeure for the Project are not overcome within 6 weeks after such notification,
the Project Committee may decide on transfer of tasks of the Party concerned, if any.
Article 6: Governance structure
6.1
Project Committee
The Project Committee shall consist of one representative from each Party (hereinafter referred to as
“Member”).
Each Member shall be deemed to be duly authorised to deliberate, negotiate and decide on all matters
listed in Article 6.2.5 of this Consortium Agreement.
The Coordinator shall chair all meetings of the Project Committee, unless decided otherwise by the
Project Committee.
The Parties agree to abide by all decisions of the Project Committee. This does not prevent the Parties
from submitting a dispute for resolution in accordance with the provisions of settlement of disputes in
Article 11.5 of this Consortium Agreement.
{OPTIONAL}
In respect of EZ’s special position in societal and political issues, Parties hereby cordially invite EZ to
delegate a governmental observer to attend meetings of the Project Committee (“EZ Delegate”). EZ
may at all times invoke the applicable provisions of this Article 6 for its own benefit as third-party
beneficiary of this Article. The EZ Delegate shall have no voting rights or other rights granted to the
Members hereunder. The EZ Delegate shall sign a non-disclosure agreement on terms no less stringent
than those contained in this Consortium Agreement before attending a meeting of the Project
Committee.
6.2
Operational procedures for the Project Committee
6.2.1 Representation in meetings
Any Member:
shall use its best efforts to be present or represented at any meeting;
may appoint a substitute to attend and vote at any meeting and
shall participate in a cooperative manner in the meetings.
6.2.2 Preparation and organisation of meetings
6.2.2.1 Convening meetings:
The chairperson shall convene ordinary meetings of the Project Committee at least once every six
months and shall also convene extraordinary meetings at any time upon written request of any
Member.
6.2.2.2 Notice of a meeting:
The chairperson shall give notice in writing of a meeting to each Member as soon as possible and no
later than 14 calendar days preceding an ordinary meeting and 7 calendar days preceding an
extraordinary meeting.
6.2.2.3 Sending the agenda:
The chairperson shall send each Member an agenda by post or by e-mail no later than 14 calendar
days preceding the meeting, or 7 calendar days before an extraordinary meeting.
6.2.2.4 Adding agenda items:
Any agenda item requiring a decision by the Members must be identified as such on the agenda.
Any Member may add an item to the original agenda by written notification to all of the other
Members no later than 7 calendar days preceding the meeting.
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6.2.2.5 During a meeting of the Project Committee the Members can unanimously agree to add a
new item to the original agenda, provided that all Members are present or represented.
6.2.2.6 Any decision may also be taken without a meeting if the chairperson circulates to all
Members a written document which is then signed by the unanimity or the defined majority of
Members (see Article 6.2.3 of this Consortium Agreement).
6.2.2.7 Meetings of the Project Committee may also be held by teleconference or other
telecommunication means.
6.2.2.8 Decisions will only be binding once the relevant part of the minutes has been accepted
according to Article 6.3.4 of this Consortium Agreement.
6.2.3 Voting rules and quorum
6.2.3.1 Decisions shall be taken unanimously by the Members of the Project Committee in meetings
where all Members are present or represented. Where the Project Committee is unable to reach
consensus, decisions shall be taken in a subsequent meeting by a majority of at least two-thirds of
the votes validly cast at a meeting where at least three-quarters of the Members are present or
represented.
6.2.3.2 Each Member or its representative shall have one vote.
6.2.3.3 Defaulting Parties have no vote.
6.2.4 Minutes of meetings
6.2.4.1 The chairperson shall produce written minutes of each meeting which shall be the formal
record of all decisions taken. He shall send draft minutes to all Members within 14 calendar days of
the meeting.
6.2.4.2 The minutes shall be considered as accepted if, within 14 calendar days from sending, no
Member has objected in writing to the chairperson with respect to the accuracy of the draft of the
minutes.
6.2.4.3 The chairperson shall send the accepted minutes to all the Members of the Project
Committee and to the Coordinator, who shall safeguard them. If requested, the Coordinator shall
provide authenticated duplicates to Parties.
6.2.5 Decisions of the Project Committee
The Project Committee shall be free to act on its own initiative to formulate proposals and take
decisions in accordance with the procedures set out herein.
The following decisions shall be taken by the Project Committee:
Content, finances and intellectual property rights
Changes the Project Plan (excluding the Project Budget), all within the limits of TKI Conditions;
Withdrawals from Annex 2 (Background included).
Evolution of the Project
Entry of a new Party to the Project and approval of the settlement on the conditions of the
accession of such a new Party;
Withdrawal of a Party from the Project and the approval of the settlement on the conditions of
the withdrawal;
Declaration of a Party to be a Defaulting Party;
Remedies to be performed by a Defaulting Party;
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6.3
Termination of a Defaulting Party’s participation in the Project and measures relating thereto;
Change of the Coordinator;
Suspension of all or part of the Project;
Termination of the Project and the Consortium Agreement;
Coordinator
6.3.1 Parties appoint
Article 6.3.2.
as Coordinator and authorize
to carry out the tasks set forth under
6.3.2 In particular, the Coordinator shall be responsible for:
-
Preparing the meetings, proposing decisions and preparing the agenda of Project Committee
chairing the meetings, preparing the minutes of the meetings and monitoring the
implementation of decisions taken at meetings;
Monitoring compliance by the Parties with their obligations;
Keeping the address list of Members and other contact persons updated and available;
Collecting and reviewing information on the progress of the Project and submitting outline
scientific reports and other deliverables (including financial statements and related certification),
if required, to the TKI Agri&Food and other Parties;
Transmitting promptly documents and information connected with the Project;
Administration of the financial contributions and fulfilling the financial tasks, all as described in
Article 7;
Providing, upon request, the Parties with official copies or originals of documents which are in
the sole possession of the Coordinator when such copies or originals are necessary for the
Parties to present claims.
6.3.3 If the Coordinator fails in its coordination tasks and the Project Committee has decided to replace
the Coordinator in accordance with Article 6.2.5, the Project Committee shall inform TKI Agri&Food of
the change of the Coordinator.
6.3.4 The Coordinator shall not be entitled to act or to make legally binding declarations on behalf of
any other Party.
Article 7: Contributions and Financial provisions
7.1
In-cash contribution
The financial contribution of EZ to the Project, as outlined in the Project Budget, shall be distributed by
EZ directly to the Knowledge Institute.
The in-cash contribution of the Industrial Partners shall be payable to the Knowledge Institute
according to the schedule included in the Project Budget, or once per year in the first quarter if no
such schedule is available. The Knowledge Institute shall send an invoice to each Industrial Partner
separately for the amount due by such Industrial Partner according to the Project Budget for such
year. An Industrial Partner will pay such invoice within 30 days of receipt thereof. Each Industrial
Partner shall be solely responsible for the payment of its own invoices.
7.2
In-kind contribution
Each Party’s in-kind contributions for the implementation of the Project will be provided in accordance
with the tasks, lists of items and the timetables set forth in the Project Plan in order to enable the
Parties to meet the work schedule for the Project. The legal title to the equipment and the materials
contributed in kind will remain with the Party who provided the equipment, unless agreed otherwise in
the Project Plan. The Parties in kind contributions are provided for exclusive use within the Project by
the Parties for the term of this Agreement.
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7.3
Justifying Costs
In accordance with its own usual accounting and management principles and practices - which may be
verified by TKI Agri&Food or EZ - each Party shall be solely responsible for justifying its costs incurred
with respect to the Project. Where an audit certificate is required, Parties shall provide such certificate
at their own costs.
7.4
Funding Principles
A Party that spends less than its allocated share of the Project Budget will be funded in accordance
with its actual duly justified eligible costs only. A Party that spends more than its allocated share of the
Project Budget will be funded only in respect of duly justified eligible costs up to an amount not
exceeding that share unless decided otherwise by the Project Committee.
Article 8: Foreground
8.1
Ownership
Foreground shall be the property of the Party carrying out the work generating that Foreground (“Own
Foreground”).
If the work generating particular Foreground is carried out by more than one Party and if their
intellectual contributions to such Foreground form an indivisible part thereof, these Parties shall have
joint ownership of such Foreground (“Joint Foreground”). The share of ownership of each of the joint
owners shall be determined in good faith, taking into account each owner’s relative intellectual
contribution to the joint Foreground.
8.2
Transfer and Licensing of Foreground
The Party owning Foreground – or in the event of Joint Foreground: the joint owners collectively - shall
have the exclusive right to file patent applications for such Foreground in their own name(s) and at
their own expense.
Each Party may transfer ownership of its Own Foreground or license its Own Foreground following the
procedures specified below. In the event of Joint Ownership, the joint owners shall appoint a lead
owner that is authorised to make legally binding decisions regarding transfer or licensing of the Joint
Foreground on their behalf.
The Knowledge Institute that receives from an Industrial Partner, a substantial financial (cash or inkind) contribution in respect of the Knowledge Institute’s research activities under the Project, hereby
grants to that Industrial Partner a right of first negotiation for a license agreement or transfer
agreement with regard to the Knowledge Institute’s Own Foreground or Joint Foreground for the
intended field of application of the Project Plan (“Right of First Negotiation”) on the terms set forth
hereunder. A financial (cash or in-kind) contribution covering at least five per cent (5%) of the
Knowledge Institute’s research activities under the Project, shall be considered substantial.
Where the Foreground is owned jointly by a) the Knowledge Institute receiving a substantial
contribution and b) an Industrial Partner and/or c) a Knowledge Institute not receiving a substantial
contribution, the Right of First Negotiation shall apply to the first mentioned Knowledge Institute’s
share in such Joint Foreground only.
Each Knowledge Institute shall without undue delay notify the Coordinator of all details of potentially
patentable Foreground generated by it. The Coordinator shall promptly instruct the Knowledge
Institute to fill in the Invention Disclosure Form and shall notify the Industrial Partners that have a
Right of First Negotiation thereof by means of this Invention Disclosure Form.
If an Industrial Partner elects to exercise a Right of First Negotiation, he shall inform the owning
Knowledge Institute(s) in writing within one (1) month after the date an Invention Disclosure Form has
been distributed by the Coordinator whether he is interested in acquiring ownership or a license to the
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Foreground. The right to exercise a Right of First Negotiation shall be deemed to have lapsed if the
Industrial Partner has not exercised this right within the aforesaid term and manner.
If two or more Industrial Partners have elected to exercise the Right of First Negotiation, the Industrial
Partners involved and the owning Party shall decide among themselves on appropriate terms and
conditions (e.g. joint ownership or split license). However, where Foreground constitutes
improvements on existing proprietary technology which an Industrial Partner has contributed to the
Project as Background, such Industrial Partner shall have a preferential right to exercise the Right of
First Negotiation over the other Industrial Partners.
If the Right of First Negotiation is exercised, the Industrial Partner(s) and Knowledge Institute(s) shall
negotiate in good faith on a license or transfer agreement.
Any transfer or license agreement shall contain the following minimal conditions:
a.
The Industrial Partner pays a market price and shall be entitled to Favourable Terms in the event
of a transfer of Foreground;
b.
The Industrial Partner undertakes to use its best endeavours to effectively commercialise or
apply the Foreground and to report on those endeavours;
c.
The Foreground for which a patent application is filed can be used by the owning Knowledge
Institute(s) for the purposes of non-commercial research and teaching; in the event of a nonexclusive license or limited exclusive license such Foreground can also be used for commercial
research and valorisation purposes;
d.
The Industrial Partner indemnifies the owning Knowledge Institute against any third party claims
for damages resulting from the use of the Foreground;
e.
The Industrial Partner respects the Access Rights of the other Parties granted under this
Consortium Agreement with respect to the Foreground, and ensures that these will not be
affected by a subsequent transfer or license, if any.
If the Industrial Partner/Partners and Knowledge Institute are unable to agree on the terms of a
license or transfer agreement within three (3) months after exercising the Right of First Negotiation,
the matter shall upon request of either Party involved be referred to and finally determined in
accordance with the Arbitration Rules of the Netherlands Arbitration Institute. The arbitral tribunal shall
be composed of one arbitrator, who shall be an expert in economics with business knowledge in the
relevant industrial field of the Project. The arbitral procedure will take place in Wageningen and shall
be conducted in the English language, unless the Parties decide otherwise. The Parties involved shall
use their best efforts to finalize the arbitral proceedings within three (3) months.
Costs of the arbitral proceedings (excluding each Party’s own advisors) shall be equally shared
between the Parties involved in such proceedings.
In the event a) the Right of First Negotiation is not exercised in respect of certain Foreground, or b)
the Industrial Partner withdraws from the negotiation process regarding such Foreground, or c) the
arbitral proceedings are not finalized within five (5) months after commencement thereof, the Party
owning Foreground shall have the right to license or transfer it to any third party. Where it concerns
Joint Foreground, this right shall be subject to Article 8.3.
8.3
Joint Ownership agreement
Joint owners may establish a written joint ownership agreement regarding the allocation of ownership
and – subject to the Right of First Negotiation or the terms of the contract made pursuant to Article
8.2, if any - terms of exercising, protecting and exploiting their jointly owned Foreground.
As long as no joint ownership agreement has been agreed upon, nor the default option set forth in the
next paragraph has come into effect, each joint owner shall be entitled to use the Joint Foreground for
their own internal research purposes only.
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If no joint ownership agreement is concluded within three (3) months after 1) lapse of the Right of
First Negotiation period or 2) withdrawal from the negotiations pursuant to the Right of First
Negotiation, the following default option shall apply:
Own use
Each of the joint owners shall be entitled to use the Joint Foreground for research activities and
education purposes, such as academic research (including use in national and European publicly
funded research), third party research, as well as training and teaching activities, on a royaltyfree basis, and without requiring the prior consent of the other joint owner(s), and
Each of the joint owners shall be entitled to use the Joint Foreground for commercial application
and/or exploitation upon prior information and on payment of a fair and reasonable fee to the
joint owner(s).
Use by third parties
Each of the joint owners shall be entitled to grant non-exclusive licenses to third parties on market
conditions, without any right to sub-license, subject to sharing the net revenues with the joint
owner(s) according to the ownership shares.
8.4
Publication
The Knowledge Institutes shall have the right to Publish their Own or Joint Foreground. A Party that
intends to Publish its Own or Joint Foreground shall provide the other Parties with the draft Publication
before submission of the Publication. Any objection to the planned Publication shall be made in writing
to the Coordinator and to any Party concerned within 30 days after receipt of the notice. If no
objection is made within the time limit stated above, the Publication is permitted.
An objection is justified if:
a.
the proposed Publication includes another Party’s Background, Foreground; or
b.
the objecting Party’s legitimate academic or commercial interests are harmed by the
Publication;
c.
the proposed Publication includes patentable Foreground and the objecting Party anticipates
that it wishes to exercise the Right of First Negotiation.
The objection has to include a precise request for necessary modifications. If an objection has been
raised, the Parties involved shall discuss how to overcome the justified grounds for the objection on a
timely basis (for example by amendment to the planned publication and/or by protecting information
before publication), provided that the scientific integrity is preserved. The objecting Party shall not
unreasonably continue the opposition, where appropriate actions are performed following the
discussion.
If the objection is based on (b) or (c), the intended Publication can be delayed for up to six (6) months
to allow a patent application to be filed. As from the expiration of this term, such Party will be entitled
to publish the proposed Publication.
The provisions contained in this Article 8.4 shall not apply to communication with TKI Agri&Food and
EZ, including the submission of outline scientific reports to EZ as meant in Article 4.3.
This Article 8.4 shall survive expiration or termination of the Agreement for the term of the
negotiations under Article 8.2.
8.4.1
Publication of another Party’s Foreground or Background
For the avoidance of doubt, a Party shall not Publish Foreground or Background of another Party, even
if such Foreground or Background is amalgamated with the Party’s own Foreground, without the other
Party’s prior written approval.
8.4.2
Cooperation obligations
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The Parties undertake to cooperate to allow the timely submission, examination, publication and
defence of any dissertation or thesis for a degree which includes their Foreground or Background
subject to the confidentiality and publication provisions agreed in this Consortium Agreement.
8.4.3
Use of Names, Logos or Trademarks
Nothing in this Consortium Agreement shall be construed as conferring rights to use in
advertising, publicity or otherwise the name of the Parties or any of their logos or trademarks
without their prior written approval.
Article 9: Access Rights
9.1
Background identification
The Parties shall identify in Annex 2 Background to which they are ready to grant Access Rights.
Parties may add further Background to Annex 2 during the Project by written notice to the Coordinator.
However, only the Project Committee can permit a Party to withdraw any of its Background from
Annex 2.
The Parties agree that all Background not listed in Annex 2 shall be explicitly excluded from Access
Rights. The Parties agree, however, to negotiate in good faith additions to Annex 2 if a Party asks
them to do so and those are Needed. For the avoidance of doubt, the owner is under no obligation to
agree to additions of his Background to Annex 2.
9.2
General Principles
Parties shall inform the Project Committee as soon as possible of any limitation to the granting of
Access Rights to Background or of any other restriction which might substantially affect the granting of
Access Rights.
A request for Access Rights shall be made in writing ultimately within six (6) months after expiration or
termination of this Consortium Agreement. The requesting Party must show that the Access Rights are
Needed. The granting of Access Rights will be at a Party’s own discretion and may be made conditional
on the acceptance of specific conditions aiming at ensuring that these rights will be used only for the
intended purpose and that appropriate confidentiality obligations are in place.
Any Access Rights granted are on a non-exclusive basis and exclude any rights to sub-licence, unless
expressly agreed otherwise in writing. Foreground and Background shall be used only for the purposes
for which Access Rights to it have been granted. Access Rights shall be free of any administrative
transfer costs.
9.3
Access Rights for execution of the Project
Each Party hereby grants to all Parties a non-exclusive, royalty-free, non-transferable right to use
the Background listed in Annex 2 and to use the Foreground solely for purpose of carrying out the
Project.
9.4
Access Rights for use of Foreground outside the Project
Access Rights to Background or Foreground shall be granted on fair and reasonable conditions, if
needed for use of a Party's own Foreground including for third-party research. Access Rights are
needed if, without the grant of such Access Rights, the use of own Foreground would be technically or
legally impossible.
9.5
Access Rights for Parties entering or leaving the Consortium Agreement
9.5.1
New Parties entering the Consortium Agreement
Consortium Agreement, version ***, DATE
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All Foreground developed before the accession of the new Party shall be considered as
Background with regard to such new Party.
9.5.2
Parties leaving the Consortium Agreement
Access Rights granted to a Defaulting Party and such Party's right to request Access Rights shall cease
immediately upon receipt by the Defaulting Party of the formal notice of the decision of the Project
Committee to terminate its participation in the Project.
A non-Defaulting Party leaving voluntarily and with the other Parties' consent shall have Access Rights
to the Foreground developed until the date of the termination of its participation.
Any Party leaving the Project shall continue the Access Rights it has granted to its Background and
Foreground under this Consortium Agreement as if it had remained a Party for the whole duration of
the Project.
Article 10: Confidentiality
10.1
Confidentiality and restricted use
Each Party hereby undertakes for a period of five (5) years after the end of the Project:
not to use Background disclosed under this Consortium Agreement by the other Party otherwise
than for the purpose for which it was disclosed;
not to disclose Background disclosed under this Consortium Agreement by the other Party to any
third party without the prior written consent by the Disclosing Party and
to ensure that internal distribution of Background disclosed under this Consortium Agreement by
the other Party only takes place on a strict need-to-know basis;
These obligations apply mutatis mutandis to information that a person in a like position and under like
circumstances would reasonably treat as confidential, such as financial, legal and business information.
Furthermore, each Party hereby undertakes for a period of five (5) years after the end of the Project:
to use the Foreground generated by another Party solely in accordance with the Access Rights
granted to such Party in this Consortium Agreement; and
not to disclose the Foreground generated by another Party to any third party without the prior
written consent of that Party.
For Joint Foreground, Articles 8.3 and 8.4 apply between the joint owners.
10.2
Exceptions to confidentiality
The obligations laid down in Article 10.2 shall not apply for disclosure or use of Background or
Foreground:
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that was already in the public domain prior to the Effective Date or becomes publicly available
thereafter by means other than any unlawful act or negligence of the Party relying on this
exception;
of which the Party intending to disclose or use such Background or Foreground will be able to
demonstrate that such Background respectively Foreground was received from a third party
who – as far as reasonably known to the Party - is in lawful possession thereof and under no
obligation of confidence to the disclosing Party respectively the other Parties;
of which the Party intending to disclose or use such Background or Foreground will be able to
demonstrate that such Background was independently developed by such Party, without
recourse to or use of the Background respectively disclosed by a Party within the scope of the
Project, respectively the Foreground generated within the scope of the Project, or
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of which the Party intending to disclose or use such Background or Foreground will be able to
demonstrate that such Background respectively Foreground was already known to the
Recipient prior to the Effective Date.
10.3
Permissible disclosure
If any Party is required to disclose another Party’s Background or Foreground in order to comply with
applicable laws or regulations or with a court or administrative order, nothing herein shall restrict the
Party from disclosing such information, but only to the extent of such order, law or regulation and it
shall, to the extent it is lawfully able to do so, prior to any such disclosure
notify the disclosing Party, and
comply with the disclosing Party’s reasonable instructions to maximally protect the confidentiality
of the information.
10.4
Other obligations in respect of Background and Foreground received
Each Party shall apply the same degree of care with regard to the Background and Foreground
disclosed to it under this Consortium Agreement as with its own confidential and/or proprietary
information, but in no case less than reasonable care.
Each Party shall be responsible for the fulfilment of the above obligations on the part of its
own managers, employees, as well as for third parties it involves.
Each Party shall promptly advise the other Party in writing of any unauthorized disclosure,
misappropriation or misuse by any person of Background or Foreground as soon as practicable after it
becomes aware of such unauthorized disclosure, misappropriation or misuse.
Parties will have the right to disclose another Party’s Background or Foreground to any of its Affiliated
Entities, provided that prior consent of the disclosing Party is obtained and such Affiliated Entities are
bound by confidentiality obligations not less stringent than the ones of the Consortium Agreement.
10.5
TKI Agri&Food and EZ
The confidentiality obligations under this Consortium Agreement shall have no obstructing effect with
regard to the communication with the TKI Agrif&Food and EZ. The Party communicating with the TKI
Agrif&Food and EZ shall nevertheless use its reasonable efforts to limit disclosure of confidential
information.
Article 11: Miscellaneous
11.1
Inconsistencies and severability
If conflicts appear between the TKI Conditions and the Consortium Agreement, the TKI Conditions shall
take precedence. In the event of a conflict between the Annexes and the body text of the Consortium
Agreement on the other hand, the latter shall prevail.
Should any provision of this Consortium Agreement become invalid, illegal or unenforceable, it
shall not affect the validity of the remaining provisions of this Consortium Agreement. In such a
case, the Parties concerned shall be entitled to request that a valid and practicable provision be
negotiated which fulfils the purpose of the original provision.
11.2
No representation, partnership or agency
The Parties shall not be entitled to act or to make legally binding declarations on behalf of any
other Party. Nothing in this Consortium Agreement shall be deemed to constitute a joint venture,
Consortium Agreement, version ***, DATE
14/15
agency, partnership, an offer by, or creating any obligation of either Party to enter into any form of
agreement other than stated in this Consortium Agreement or interest grouping or any other kind of
formal business grouping or entity between the Parties.
11.3
Assignment and amendments
No rights (except for licences to / transfer of Foreground after lapse of the Right of First Negotiation)
or obligations of the Parties arising from this Consortium Agreement may be assigned or transferred, in
whole or in part, to any third party without the other Parties’ prior formal approval.
Amendments and modifications to the text of this Consortium Agreement require a separate
agreement between all Parties.
11.4
Applicable law
This Consortium Agreement affecting the rights and obligations between the Parties shall be construed
in accordance with and governed by Dutch Law.
11.5
Settlement of Disputes
Any dispute that may arise from this Consortium Agreement, with the exception of Article 8.2, will
be submitted to the competent court in Arnhem, The Netherlands.
Annex 1 – Project Plan and Budget
Annex 2 – Background included
Annex 3 – Invention Disclosure Form
Consortium Agreement, version ***, DATE
15/15