6.0 Model Contract — Technology and Skills Cooperation

• 6.1.  In order to qualify as a technology and skills cooperation IRB Transaction, the activity shall meet the following criteria:
• 6.1.1.  technology shall be in a form that is sufficiently complete to allow the Canadian recipient to apply the knowledge to existing or new products or processes;
• 6.1.2.  technology shall be proprietary, current and equivalent to or better than that used on the Project;
• 6.1.3.  all required licenses or permits to facilitate the sale of products/services domestically or for export shall be included;
• 6.1.4.  the transferor shall make available all engineering and technical advice and assistance required to exploit and keep current the transferred technology and all related information (drawings, methods of application, etc.);
• 6.1.5.  the Canadian company shall have access to domestic and foreign markets and have the resources to exploit the technology in these markets;
• 6.1.6.  the technology shall be exploitable in terms of the capability (financial and technical) of the Canadian company to use and keep it current; and
• 6.1.7.  the Contractor shall make available, upon request by the IRB Authority, the licensing agreement with the Canadian recipient. Failure to do so will result in the technology and skills cooperation IRB Transaction being rejected.
• 6.2.  The technology and skills cooperation shall be measured in Canadian Content Value of the future sales, export sales or import replacement, of goods or services by the Canadian company as a result of the technology and skills cooperation. In addition, the Contractor may be credited for reasonable costs incurred as a result of the technology and skills cooperation once the achievement in future sales surpasses the cost of the technology and skills cooperation. Reasonable costs incurred include:
• 6.2.1.  training costs;
• 6.2.2.  set-up of infrastructure needed to exploit the technology; and
• 6.2.3.  any others as deemed reasonable by the IRB Authority.
• 6.3.  IRB in the form of technology and skills cooperation with Canadian companies may include activities such as:
• 6.3.1.  participation in the design, development and manufacture of new or improved systems;
• 6.3.2.  the provision of new process technologies that will enhance Canadian industry by improving their capabilities in present product lines and enhance their export potential; and
• 6.3.3.  the provision of licenses which will allow Canadian companies to manufacture new or existing components of major systems for export sale and import replacement.
• 6.4.  All costs to develop the technology shall be ineligible for IRB credit.