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Strategic Alliance Agreement

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Prepared for:
[Company A]

Prepared by:
[Company B]

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Strategic Alliance Agreement

This Strategic Alliance Agreement (hereinafter referred to as the "Agreement") is effective as on [Effective Date] (hereinafter referred to as the "Effective Date"), by and between [Company name] (hereinafter referred to as the "Company A") and [Company Name] (hereinafter referred to as the "Company B", and together with Company A, the "Parties"). 

Recitals

WHEREAS, the Parties desire to enter into a regional alliance and aim at expanding into new markets while providing enhanced support services; and

WHEREAS, the Agreement shall allow the Party's market to extend globally, providing them with capabilities and operations in all countries with equal authority as the other Party; and

WHEREAS, the Parties desire to hold a likely equity transaction, without any obligation anywise;

THEREFORE, in consideration of the covenants and mutual representations, and terms contained herein, the Parties agree as follows:

Terms & Conditions

1. Definitions

"Territory" shall mean region and extension of the alliance of the Parties and their subsidiaries in the State of [State].

"Subsidiary" shall mean any corporation, association, well known or limited partnership, limited liability company, trust, joint venture, organization, or other collateral entity, with respect to the Parties.

"Representatives" shall mean a Party's affiliates, directors, officers, employees, agents, funding bankers, attorneys, accountants, consultants, advisors, and such other different representatives.

"Person" shall imply any individual, company, well known or restricted partnership, limited liability company, trust, joint venture, estate, association, organization, or other governmental entity.

"Products and Services" shall mean all the products and services offered by the Parties and its Subsidiaries within the Territory.

"Customers" shall mean any entity or government located in the territory which the Parties may identify as a practicable user of their Products and Services.

2. License Grant

The Parties sanction each other an exclusive, sublicensable, non-transferable, royalty-bearing, global license, to make, have made, use, import, sell, and offer for sale licensed products, including the right for research and development.

3. Objective of Alliance

The primary objective for establishing the Agreement are mentioned as below:
To explore the variant synergy that can be understood while working together in the field of [Specify Field of Expertise]
To consider joint commercialization of new technology or product, developed by pursuing joint research projects.
To make individual Party's expertise available to both the Parties in order to develop the business and enhance the quality of their Products and Services in their Territory.
To explore commercial agreements for the mutual benefit of the Parties.

4. Confidentiality

The Parties shall be aware that they are prone to be aware of information, or documentation, written or oral, that is considered confidential or unpublished in nature. The Parties shall agree to keep all Confidential Information obtained during this term of the Agreement as private without the Party's written consent.

This section shall survive the termination of the Agreement whatsoever.

5. Term and Termination

This Agreement shall commence from the aforementioned date and continue for [Time Period], with regular renewal for additional [Time Period] unless the Agreement is terminated by either Party with a notice given [Days] days before the scheduled termination date. 

Violation of terms and conditions stated in the Agreement, breach of any representation, warranty, covenant, make this Agreement vulnerable to be terminated with a given notice to the Parties provided their written consent.

6. Intellectual Property

All materials and property shall respectively remain the intellectual property of the Parties, and without any written notice provided, the exchange of any intellectual property during the course of the Agreement shall be considered as an exchange of ownership violating the terms of this Agreement.

7. Non-Compete

The Parties shall not engage, trade, or assign any portion of the Agreement to any third party entities without written consent during the term of this Agreement.

8. Miscellaneous

Governing Law: This Agreement shall be governed by and construed in accordance with the jurisdiction laws of the state of [State].
Assignment: As primary points of contact, the Parties shall assign a designated individual, whose details are to be noticed in writing to both the Parties.
Indemnification: In paradigms of loss, damages, injuries, etc., out of cases of willful negligence and misconduct, the Parties must indemnify and hold each other harmless.
Limitation: The Agreement shall not imply any employment, joint venture, partnership, or franchise relationship among the Parties.
Notices: All notices, digital or physical, must be sent to respective Parties either through their certified mailing address or email that they shall provide. 
Amendments and Counterparts: This is to state that the Agreement hereby is not liable to be reformed, amended, or modified without the written consent of both the Parties. Violation of these may result in extreme legal charges. This Agreement may be executed in any number of counterparts, by facsimile or electronic signature or otherwise, each of which shall be authentic but all of which together shall aggregate singly to this Agreement.
Entirety: This Agreement constitutes the final, complete, and exclusive statement of the agreement of the Parties apropos the subject matter hereof, and supersedes any and all other prior and contemporaneous agreements and understandings, both written and phonated, between the Parties.

Acceptance and Signature

In witness whereof, the undersigned Parties have duly executed the terms proposed herein the Agreement as of the aforementioned date.

Signature

Assign signer 1

Name

Assign signer 1

Date

Assign signer 1

Signature

Assign signer 2

Name

Assign signer 2

Date

Assign signer 2

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DISCLAIMER: Revvsales, Inc is not a law firm. The content provided herein is for general information purposes only, and does not constitute legal advice. Revvsales, Inc and its partners make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information mentioned hereunder. The use or reliance of any information contained herein is for your personal use and solely at your own risk. You agree to fully release and indemnify Revvsales, Inc from any liability associated with the use of this content. You are advised to obtain independent legal advice before taking or refraining from any action on the basis of the content provided here.

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Corporate and Commercial

Financial Planning

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Partnership

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What is a Strategic Alliance Agreement?

A strategic alliance agreement is an agreement between two different independent companies who come together to share their resources, core competencies, and capabilities for their mutually beneficial project.

What are the key components of a Strategic Alliance Agreement?

The components of a strategic alliance agreement depend on the terms and conditions of both companies. However, there are a few essentials that need to be included:

Cover page

This section provides the details about the parties for whom this strategic alliance agreement is drafted - partner 1 company, partner 2 company, and their strategic alliance details.

Scope

Mention the necessary steps taken to perform the services by both partners. You can also mention what are the services that will be included in the strategic alliance agreement so that both companies involved will be on the same page. For instance - you can specify the services listed below:

The parties agree to perform the following services when they enter into a strategic alliance agreement:

Partners 1 company - services to be performed
Partners 2 company - services to be performed

Management

In this section, both parties have to provide the details regarding the appointment of the individual; who will be taking care of the management, corporate strategy, and delivering the services. For instance - you can mention the appointment listed below:

The following individuals are hereby appointed as representative managers for each of their employers:

Partner 1 company - Individual name
Partner 2 company - Individual name

Partnership

This section explains that both parties have agreed to enter into a partnership agreement and have formed strategic alliances. You can also state the following conditions for the partnership:

Both companies involved in the agreement will remain independent firms in this business alliance
In case of any negligence, damages, or loss, the parties agree to hold the other party harmless

Assignment

In this section, both parties agree to not trade and delegate the strategic alliance or business strategy to any of the third parties.

Confidentiality

Mention the confidentiality clause which states that both parties agree to keep all the information, documents, etc., related to this strategic alliance agreement strictly confidential. Any information that has to be conveyed to the other partner must be in the form of a written notice to avoid any legal consequences.

Term

Specify the time period for which this strategic alliance agreement will commence, and also the termination date.

Terms and Conditions

Mention the necessary agreement terms - severability, arbitration, etc., that are required for this strategic alliance agreement to avoid any future conflicts between the involved parties.

Signatures

This is the final section where both parties agree to the above terms and conditions. The parties acknowledge the strategic alliance agreement by signing and making this agreement legal.

Tips to draft a successful Strategic Alliance Agreement

1. Be concise

Make sure the strategic alliance agreement is drafted in a crisp manner, and write shorter sentences.

2. Define the important terms

The business alliance agreement should include necessary clauses that both parties agree to. This provides clarity to both companies before signing the agreement.

3. Avoid ambiguity

Ambiguous language creates confusion and misinterpretation. A sentence that creates willful misconduct from the legal perspective can lead to unexpected consequences. Make sure to draft the legal documents carefully.

Revv, your partner to create the perfect agreements

Revv is an all-in-one document automation system and an eSignature platform. Its product features help in drafting legally vetted agreements as per the requirements of the company.

Ready to use template

Revv’s carefully drafted templates work for every business's need. You can now draft your agreement and customize it in a manner that fits your company. These templates avoid the hassle of drafting the agreement from scratch.

Drag-and-drop editor

With Revv’s drag-and-drop editor feature, you can easily edit the text or add new text, and add images, page breaks, etc., to create an effective agreement.

Collaboration

Worry less about the follow-up over emails in order to close the agreement. Revv’s seamless collaboration feature helps you to comment, tag, and add notes within the document.

Real-time tracking

Revv’s activity tracker helps in quickly monitoring the whole agreement. The sender gets insights into who has viewed, edited, accepted, or rejected the contract.

eSignature

Revv’s eSignature feature helps you to accelerate the agreement process. It lets you electronically sign the strategic alliance agreement with a few clicks and turn it into a legal contract.

Frequently asked questions

What is a strategic alliance agreement?

What are the three types of strategic alliance agreements?

The three types of strategic alliance agreements are - Joint Venture, Equity strategic alliance, and Non-Equity strategic alliance. Check out Revv’s strategic alliance agreement template to know more.

Is strategic alliances a legal entity?

A strategic alliance is not a separate business entity. It is a form of contract between two or more companies that work together on a specific project to increase its business, improve product lines, and for further industry expansion.

Is strategic alliance better than merger?

Since neither firm commits any money, alliances are often less risky than mergers. It is simple to end the alliance if any company decides they no longer want to be a part of it. However, because both businesses must contribute money and resources to a merger, they are significantly riskier.