The International Strategic Alliance Agreement (www.globalnegotiator.com) governs the relationship between two companies located in different countries that desire to achieve joint benefits through the formation of a Strategic Alliance.

1. 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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2. 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.
1. DEFINITION
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3. Both parties of the Alliance are registered companies. For
each party, the following has to be included:
• Name of company, full address and nationality.
• Company type: public limited company, limited liability
company, etc.
• Name and position of company representative who signs
the agreement.
• Tax ID number of both parties.
2. PARTIES TO THE AGREEMENT
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4. 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. MAIN CLAUSES AND SAMPLE
See sample International Strategic Alliance Agreement
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5. “The Parties confirm their intention to establish and develop the Alliance in accordance
with the principles set in this Contract with a view to achieving the success of the
Alliance in their mutual best interests”.
“Both Parties agree to join resources and endeavours according to the stipulations of the
present contract in order to:
Alternative A. “Develop jointly ..............................................................................................”
Alternative B. “Exploit jointly……………..............................................................................”
Alternative C. “Research jointly…………...............................................................................”
Alternative D. “Commercialize jointly.....................................................................................”
Alternative E. “Produce jointly ……………..........................................................................”
3.1 OBJECTIVES OF THE ALLIANCE
See sample International Strategic Alliance Agreement

6. 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].”
3.2 TERRITORY
See sample International Strategic Alliance Agreement

7. “The Parties shall establish a committee (“Management Committee)
responsible for overall organization, direction and management of the
Alliance.
“The functions of the Management Committee will
include......................................................
“Each Party shall appoint ....... [insert number, usually between 2 and 5]
representatives to be members of the Management Committee and shall
consult with the other Party before any such appointment or any change in
representation.”
3.3 MANAGEMENT COMMITTEE
See sample International Strategic Alliance Agreement

8. “It is intended that each Party shall contribute particular knowledge,
skills or services to assist the establishment and success of the Alliance.
“The general contributions of Company A towards de Alliance shall be
.....................................
“The general contributions of Company B towards the Alliance shall be
....................................
“Each Party shall use all reasonable efforts to provide its contribution to
promote the success of the Alliance. Each Party shall be responsible for
ensuring that it provides its contribution towards the Alliance using all
such diligence and skills as is reasonable in the circumstances.”
3.4 CONTRIBUTION OF THE PARTIES
See sample International Strategic Alliance Agreement

9. “Both Parties establish that the term of Alliance is to be .......... [1, 2,
3, 5] years. Once completed, the Parties shall reach explicit agreement
as to the renewal of the contract and the conditions therein. A trial
period of .......... [1, 2, 3, 6] months shall be established starting from
the commencement of activities by the Alliance, during which either
Party may withdraw without any legal bindings”
“The following shall be causes for termination of the
Alliance..................................................”
3.5 DURATION AND TERMINATION
See sample International Strategic Alliance Agreement

10. 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.
4. LAW APPLICABLE
See sample International Strategic Alliance Agreement

11. In order to obtain the model contract in Word format
and the user guide, click on:
International Strategic Alliance Agreement
5. MODEL CONTRACT
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