The key points of our standard Grant Agreement are summarized below.
Our grant agreement can only be executed with a Delaware C corp. Conversion may occur after the proposal has been accepted, but must occur before funds are distributed.
After the initial payment, funds are released based on successful completion of milestones which are mutually agreed upon at the start of the grant period.
Return on Investment
When the grantee completes its next round of preferred financing (e.g. Series A), the grantee shall issue Breakout Labs an amount of these preferred equity shares as calculated by dividing the dollar amount of the grant by the applicable price per share or unit, discounted by 20%, so long as the final ownership of Breakout Labs shall not be below a minimum or above a maximum on a post-money basis as set out in the grant agreement.
Companies submit quarterly progress reports detailing their business, technical and scientific accomplishments, as well as financial reports detailing the use of grant funds. Breakout Labs has board observer and audit/ inspection rights.
Research funded by Breakout Labs must be submitted to a journal for open-access publication, allowing for appropriate intellectual property protection.
Companies own all inventions, discoveries and associated intellectual property rights created using the grant funds.