Exit Policy (excluding exiting due to successful graduation after two years)
An incubatee will be demanded to leave the incubator under the following circumstances:
- Under performance or non-viability of business proposition as decided by CIED on case-by-case basis
- Irresolvable promoters’ disputes as decided by CIED on a case-by-case basis
- Violation of any CTR, Ludhiana’s policy
- When the company enters in an acquisition, merger or amalgamation deal or reorganization deal resulting in a substantial change in the profile of the company, its promoters, directors, shareholders, products or business plan.
- Change in promoters’/ founders’ team without concurrence of CIED.
- Any change of more than 50% of equity ownership would require a prior approval of CIED.
- Any other reason for which CIED may find it necessary for an incubatee to leave.
- When the annual turnover of the company exceeds Rs. 1 crore or when the Company’s profit before tax exceeds Rs. 50 Lakhs annually.
- Raising substantial investment from angel investor/Venture Capital Fund/any other investor to the tune of Rs 1 Crore or more.
- When the number of employees of the Registered Company exceeds 20.
Notwithstanding anything written elsewhere, CIED’s decision in connection with the exit of an incubate company shall be final and shall not be disputed by any incubatee.
Conflicts of interest
In case of conflict of interest, the decision of CTR shall be final and binding upon the parties.
Disclaimer
CIED does not guarantee to company incubated about success and/or feasibility and warrantee technology transferred from CTR, Ludhiana. CTR, Ludhiana or CIED or any person representing CTR, Ludhiana or CIED shall not be liable for any acts or omissions of the incubate company, however, in case of any such event the incubate company shall do all that is required to hold CTR, Ludhiana or CIED any person representing CTR, Ludhiana or CIED harmless from any loss including damage, penalty.
Agreements
All incubatees shall enter into following agreements with the CIED:
- Incubation Agreement: Containing rules and incubation norms. (Applicable to all)
- Seed-Fund Agreement: Containing rules of disbursement and repayment. (Applicable to incubatees availing seed-fund)
- Technology Commercialization Agreement (Applicable to incubatees using technology or IP developed by CTR, Ludhiana)
Auditing /Accounting & Compliances norms
The Incubatees during the period of Incubation at the Centre will mandatorily get their accounts audited and their books of Account are open for Inspection by the empanelled Chartered Accountants of the Centre. Compliances as per government regulations apply.