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Licence Option Agreement
"Need a Licence Option Agreement for our new AI software technology, giving the potential licensee 6 months to evaluate the technology before committing to a full licence, with an option fee of £50,000 payable on signing."
1. Parties: Identification and details of all contracting parties
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Defined terms used throughout the agreement
4. Grant of Option: Terms of the option, including duration and conditions for exercise
5. Exercise of Option: Process and requirements for exercising the option
6. Option Fee: Payment terms for the option
7. Warranties and Representations: Standard warranties regarding ownership and right to grant licence
8. Confidentiality: Obligations regarding confidential information
9. Term and Termination: Duration of agreement and termination provisions
10. Governing Law and Jurisdiction: Specification of applicable law and courts
1. Due Diligence Rights: Rights to investigate IP/technology during option period - include when detailed technical evaluation is required
2. Development Obligations: Obligations regarding development during option period - include when development work continues during option period
3. Territory Restrictions: Geographical limitations on option/licence - include when rights are territory-specific
4. Competition Law Compliance: Specific provisions ensuring compliance - include when agreement might affect market competition
1. Schedule 1 - Licensed IP: Detailed description of intellectual property covered
2. Schedule 2 - Form of Licence: Template of licence agreement to be entered into upon exercise
3. Schedule 3 - Option Fee Structure: Detailed payment terms and calculations
4. Schedule 4 - Due Diligence Information: List of information to be provided during option period
5. Appendix A - Technical Specifications: Technical details of licensed technology/IP
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