Leases are for one-year terms, renewable for two additional terms or more depending upon the progress of the business. Rental rates are escalated 10% each renewal year. The typical lease term at EnterpriseWorks is one year and is generally renewable for two additional terms or more depending upon the progress of the business; however, there is no provision for automatic renewal. Rental rates are escalated 10% each renewal year. Ninety (90) days in advance of lease termination, a review meeting is scheduled with the tenant to discuss the general progress of the business towards accomplishing the milestones set out in the business plan. The decision to renew the lease of the tenant for another year is based on the following evaluation: Is the company current on its rent payments? Is a current insurance certificate on file? Is the company in default of any provisions of the lease agreement? Has the company made reasonable progress towards milestones? Are the principals making a good-faith effort to build a business? Does the company have the working capital to achieve its goals? Has the company supplied a current Balance Sheet? Has the company supplied a current Income Statement? Has the company reached any of the graduation exit triggers?
Identifying the appropriate time for startup companies to graduate from EnterpriseWorks is handled on a case-by-case basis with each tenant. It is fair to say that different types of companies require different lengths of development time to achieve financial sustainability depending upon the technology involved. As a general rule of thumb, it will be time for a company to graduate when one or more the following conditions has been reached: The company is not actively using its rented space at EW. The company has no continuing need for incubator services. The company has sufficient capitalization to afford space on its own outside EW.
If accepted into EnterpriseWorks, a company must secure General Liability Insurance and provide a Certificate of Insurance as described in the excerpt below taken from the standard lease agreement:Tenant must maintain throughout the term of the lease public liability insurance with limits of not less than (i) $1,000,000.00 for all damages arising out of bodily injuries to or death of one person and (ii) a total of $2,000,000.00 for all damages arising out of bodily injuries to or death to two or more persons in any one accident, and (iii) a total of $1,000,000.00 for all damage to or destruction of property in any one accident. The Board of Trustees of the University of Illinois is to be named as the additional insured on the policy.
For and in consideration of receiving consultation services from EnterpriseWorks, I consent to and hereby discharge, release, and hold harmless the Board of Trustees of the University of Illinois and the Board of Managers of the University of Illinois Research Park LLC, sponsors and their affiliates, agents, volunteers, servants, employees, successors and distributors and waives, releases and relinquishes any and all claims for liability and causes of action, including for personal injury, property damage, wrongful death, errors, and omissions arising out of consultation services from EnterpriseWorks, and/or any activities incidental thereto, whenever or however they occur and for such period said activities may continue, and by this agreement any such claims, rights and causes of action that the Client may have are hereby waived, released and relinquished. As the Client, I have read the Liability Release and understand that I have freely given up rights by agreeing to these terms without any inducement or assurance of any nature and intend to be a complete and unconditional release of all liability to the greatest extent allowed by law.