Incubator Participation Agreement

This is an agreement between________________________________________________, doing business as ____________________ ____________(Hereafter referred to as Participant and City of Parsons, Tennessee (Hereafter referred to as The City) entered into for the purpose of admitting the Participant into the City of Parsons' Center for Business Opportunity Small Business Incubator Program and securing the benefits of such admittance for the Participant.  The Participant is being offered this admittance to the incubator program after being selected by the Small Business Incubator Selection Committee based on the program selection criteria shown in Appendix I to this agreement.   

In accepting admittance to the Small Business Incubator Program the Participant understands and agrees to all provisions and stipulations of the program as set forth in this document and all its appendices.  The Participants agrees to duly and faithfully adhere to these said provisions while participating in the program in order to receive and the benefits of the Program.  Failure to do so will result in removal from the program and the requiring of full or partial reimbursement to the City for any grants or special expenditures. 

1.  The normal incubator period will be for Three (3) Years from the opening of the Participant for business. At the end of this period the participant will be expected to "graduate" from the incubator and move out on his or her own into an unsubsidized facility for their business.
 
2.  The City will provide an adjusted rent schedule to the participant during the incubator period.  This schedule will be as follows:

· First six (6) months will be rent-free.
· Next succeeding twelve (12) months will be at 60% of the to market rate as determined by the City based on past rental experience with the building and surveys of local realtors involved in leasing.
· Next succeeding twelve (12) months rent will be at 75% of the above determined rental rate.
· Next succeeding six (6) months will be at the market rate.

4. The Participant will enter into a lease agreement with the City for the three (3) years of the incubator program under the rental schedule specified in Paragraph 3.  Actual rental payments are specified in the lease agreement.  Said lease agreement is attached hereunto at Appendix II and is incorporated into this agreement in whole.

5. The provisions of the "GRANT APPLICATION AND AGREEMMENT" shown at Appendix III of this Agreement will govern receipt of any Grant monies received by the Participant.  The availability of any Grant monies is subject to funds available and budget constraints.

6. The Participant has furnished to the City as part of the application process such financial and business plan information, both in corporate capacity, if applicable, and individually, as was required by the City for determination of eligibility for participation in the City's Center for Business Opportunity's Small Business Incubator Program.  The Participant, having been determined eligible for participation in this program based on the good faith accuracy of these declarations hereby represents and warrants that all the information contained therein is complete, true, and correct. Participant understands that City is relying upon the accuracy of the information and good faith estimates contained therein. Should there be found to exist any inaccuracy or lack of good faith in estimates furnished for preparation business plans or in the application, which adversely affects Participants financial standing, or should Participant's financial circumstances materially change, the City may elect to terminate the Participant's participation in the program and terminate the associated lease agreement.  The City may hold the Participant personally and individually liable hereunder.

7. Extension to Incubator Period:  Upon approval of the Incubator Selection Committee the three year incubator time period may be extended, one time only, for a maximum of twelve (12) months on the request of the participant if it is determined that the participant needs addition time to achieve the goals in their business plan necessary to sustain the business outside the incubator.   If the Committee determines that the additional time will not enhance the ability of the participant's business to operate independent of the incubator program the request will not be granted.

8. Since the City feels that it is important for new business owners to associate with and receive mentoring from successful business owners and managers, the Participant is required to be a member of the Decatur County Chamber of Commerce and the Parsons' Business Association.  As such the Participant will seek to avail themselves of and participate in seminars, information meetings and other such activities sponsored by these organizations related to improving their business marketing and management skills.  Furthermore, the City has available various local business leaders and operators who have volunteered to provide mentoring to Incubator Participants on their own request.  If the City determines that a Participant is in need selective mentoring services, the Participant is expected to cooperate with the effort and work with the assigned mentor.   

9. Participant may be required to attend from time to time various training classes or seminars determined by the City and recommended by the Incubator Selection Committee as being advantageous to the Participant in improving their business skills. 

10. In that Federal Grant funds are used to partially fund this program the Participant makes the declarations and assurances shown at Appendix IV of this agreement.

11. Complaints and issues concerning the provisions of this agreement, not otherwise covered under the provisions the lease, the grant agreement, or related laws and regulations prescribing complaint procedures for matters relevant to this endeavor, shall be submitted to the Mayor of the City of Parson for resolution.  The Mayor will look into the fact and circumstances of the matter and advise the complainant of the decision in a timely manner.  Said decision will be considered the final position of the City on the matter. 


By affixing of our signatures to this document on the date indicated the Participant and the City   enter freely into this agreement under the aforementioned conditions and stipulations: 

____________________Date: __________    _____________________Date: __________
Participant                 Mayor, City of Parsons