Exit Policy

An expectation exists from the beginning that all firms will ultimately leave the incubator after several years. Generally, after a few years, the client is financially and operationally ready to leave and no longer needs the value added services of the incubator. It is understood by the management that not all firms will have a hard and fast timeline for exiting the incubator. Approximately two months prior to the expiration of the lease, the management office will issue a lease extension request form to the tenant. The tenant will use this form to justify his or her reasons for wanting to extend the lease for an additional year. If the manangement office approves the request, an extension will be granted, but shall be conditioned upon terms related to the expressed needs of the client firm.

Upon each renewal, the tenant can expect an increase in the rental rate of about 10% of the previous year's rate. This ratcheting up of the lease rate to amount above the prevailing market rate will encourage clients top graduate. However, the incubator reserves the right to extend a lease at market rates if it is deemed in the best interests of the client and the center. The incubator also reserves the right to cancel a client's tenancy if the client refuses to participate in the incubation process.

Typical occupancy will be a one-year lease with the option to renew for an additional year by mutual consent of the tenant and the TIC. Further renewals are negotiable if it is found to be in the best interest of both parties.

The tenant will exit the facility upon the normal termination of the lease in accordance with the terms of the lease; this TIC Tenant Policies, Procedures and Regulations document; and any written amendments or side agreements concerning ownership, repair, and replacement or refurbishment work. No verbal agreements will be considered or honored.