Terms and Conditions Fact Sheet

Common Topics in Reaching an Agreement for a Sponsored Project
with the University of Arizona, a Public University

Contracting Party: The contracting party for the University is the Arizona Board of Regents on behalf of The University of Arizona.

Payment: The payment schedule must provide a consistently positive cash flow. This necessitates a payment prior to initiation of the project. This payment typically is made when the agreement is fully executed. Subsequent payments can be as fixed amounts or on a cost reimbursement basis depending on the agreement. The final payment will be adjusted for the advance payment. A refund will be made if the prepayment exceeds the final amount due.

Intellectual Property: Intellectual Property: Intellectual property developed by the University, regardless of the source of funding, is the property of the University. Agreement language providing the sponsor with an option to negotiate a license can be incorporated in to the research agreement.   The financial terms of such license can only be negotiated after the disclosure of the intellectual property to the University Office of Technology Transfer.  If joint intellectual property is a possibility, equitable provisions can be negotiated.

Confidentiality: The University can agree to hold material provided by sponsor confidential for a reasonable period of time, subject to certain provisos. The confidential material must be in writing and marked as confidential.

Publications: Publication of results is a major objective of the University, and University employees must be able to publish the results of their work. Reasonable delays can be negotiated to allow for review by sponsor and deletion of sponsor’s confidential or proprietary information, if inadvertently included, or to allow time to protect intellectual property.

Governing Law: Contracts will be governed by the laws of Arizona. As a state agency, the University cannot agree to be governed by the laws of another state or country.

Indemnification: As a state agency, the University cannot agree to indemnify or hold harmless (Arizona Attorney General’s Opinion No. 67-36-L).

Warranty: As a state agency, the University cannot agree to warrant or to guarantee (Arizona Attorney General’s Opinion No. 67-36-L). The word represents or affirms can be substituted for warrants or guarantees.

Insurance: As a State Agency, the University participates in a statutory program of liability coverage as provided under ARS Section 41-621 et. seq.

Termination: In addition to the termination clauses commonly included in contracts, the University may terminate research contracts upon thirty (30) days written notice to the sponsor if funding for the project is fully expended in accordance with the budget and the scope of work, or if performance of the project scope of work is substantially completed.

Nondiscrimination (must be included in all contracts): The Parties agree to comply with the provisions of applicable State and Federal laws and regulations governing Equal Employment Opportunity and Non-discrimination.

Arbitration (must be included in all contracts):  The parties agree that should a dispute arise between them, in any manner concerning this Agreement, and said dispute involves the sum of Thirty Thousand Dollars ($30,000) or less in money damages only, exclusive of interest, cost or attorneys' fees, the parties will submit the matter to Binding Arbitration pursuant to the Arizona Supreme Court Rules for Compulsory Arbitration except that the decision of the arbitrator(s) shall be final and binding upon the parties. The matter will be heard by an arbitrator selected by the parties.

State Obligation (must be included in all contracts):  The parties recognize that the performance by the Arizona Board of Regents for and on behalf of the University of Arizona may be dependent upon the appropriation of funds by the State Legislature of Arizona. Should the Legislature fail to appropriate the necessary funds, or if the University's appropriation is reduced during the fiscal year, the Board of Regents may reduce the scope of this Agreement, if appropriate, or cancel this Agreement without further duty or obligation. The University agrees to notify other party(ies) as soon as reasonably possible after the unavailability of said funds comes to the University's attention.

Conflict of Interest (must be included in all contracts):  This Agreement is subject to the provisions of A.R.S. § 38-511 regarding Conflict of Interest. The State of Arizona may cancel this Agreement if any person significantly involved in negotiating, drafting, securing, or obtaining this Agreement, for or on behalf of the Arizona Board of Regents, becomes an employee in any capacity of the other party or a consultant to the other party with reference to the subject matter of this Agreement while the Agreement or any extension thereof is in effect.

Addresses for Notices Via U.S. Postal Service: Via Fed Ex, UPS or other expedited delivery:

SPONSORED PROJECTS SERVICES SPONSORED PROJECTS SERVICES

PO BOX 3308 888 N EUCLID AVE RM 510

TUCSON AZ 85722-3308 TUCSON AZ 85719-4824

Phone (520) 626-6000

Payment Address

Payments via U.S. Postal Service SPONSORED PROJECTS SERVICES FRS #TBD

PO BOX 44390

TUCSON AZ 85733-4390