Last Updated: January 3, 2014
General Policy: Each Incubation Program Lessee Company is required to provide the program with a notice period before departure. Typically that notice period is 60 days. This rent will not be waived, except in the case of extenuating circumstances that are based on issues caused by the University. If a Lessee Company is leaving before the end of its agreed (lease) term, the Office of the Counsel General will be notified so that appropriate legal steps can be taken if required.
The following procedure applies when a Lessee Company is at least thirty days delinquent on its rent payments.
- Incubation Program Director/ designate meets with the Lessee Company to review its finances and determine the reason for the delinquency. The Incubation Program Director or designate may request a review of specific financial documents of the Company in order to facilitate this review. These documents would be limited to the type usually provided in the Review Meetings mandated in the Company’s lease and signed lease Term Sheet.
- The Incubation Program Director/designate and the Lessee Company will seek to develop a mutually-acceptable payment plan. If a plan is developed, the Incubation Program Director/designate will work with the Office of General Counsel (OGC) to put this plan in writing and it will be treated as a contract between the Incubation Program and the Company.
- If the Lessee Company does not agree to a payment plan, the Incubation Program Director/designate, in consultation with the university’s Office of the Counsel General, may send the Company a written Notice to Quit.
- If the Lessee Company does not meet its obligations under the payment plan or has not otherwise paid its rent obligations in full, the Incubation Program, in consultation with the university’s Office of the Counsel General, may send the Lessee Company a written notice requiring that either the Lessee Company meets its rent obligations or the Lessee Company will be served with a Notice to Quit.
- If the Lessee Company does not cure the default by paying all amounts due and meeting all other obligations under the plan, the Incubation Program, in consultation with the university’s Office of the Counsel General, may elect to lock-out the principals and employees of the Lessee Company. The Incubation Program may then also bill the Lessee Company for the lock-out charges.
- If the Incubation Program locks the Lessee Company out of the premises, the Incubation Program will implement its standard procedures for Company departures and terminations.
- The Incubation Program Director/designate will also be obliged to notify the university’s Office of the Counsel General, Purchasing and other Departments, advising that the Lessee Company has defaulted on its lease obligations to the the Incubation Program.