Grant Award Agreement
Whereas: the Donor Contributor wishes to benefit from an affiliation with ConceptStarter.Net and its business formation model development services that builds and certifies business formation models, in order to attract equity capital when they are completed.
Now, therefore, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:
The Donor Contributor understands that the project owner may choose to raise funds in the formation period of this new business venture without issuing an equity stake in their company. This is done through Crowd Funding Donations and Business Formation Grants. The Donor Contributor further understands that the Business Formation Grant is awarded to the project that needs a Business Formation Model to attract equity and/or venture capital, in their next round of funding. Once, the model is certified for its readiness to receive equity capital funding. The Donor Contributor will receive first option to invest when the owner of the project is ready to accept equity funding. The grant is awarded in exchange for an Investment Participate Level and the exclusive option to buy a stake in the company when the owner is ready to accept equity capital investments. This grant is given to a specific venture in the name that appears in this agreement as the "Business Formation Project".
The Grant Contributor understand that the cost of equity stake will only be established for the business formation model when an accredited investor purchase a stake in the venture and funds offered is received by the owner. Donor contributors will be allowed to collectively buy 3% to 5% of the Business Formation Project they donated to. The percentage allowed by a venture will be grant at the time the market price of the equity stake is established by the first offered accepted by the owner. Each donor will be notified by groups and based on the amount they donated. A participation level will be sent to each donor after the closing date of the business formation project. Each donor will be notified according to their group position that was assigned before the owner is ready to accept equity capital. Each group will be notified, until the allocated percentage is purchased by contributors. This will be a onetime offer and the owner is not obligated to notify the contributors on any future offers.
This Business Formation Grant will be used as seed funds to build a Business Formation Model for the company, product prototype, trade/mark(s) to generate sufficient investor interest for successive financing rounds. The Donor Contributor further understand that the funds may be used for the following: business research, trade/marks, logos, website development, business consulting, business development services, salaries, commissions, selling strategies, direct mail, brochure, marketing, customer evaluations & surveys, target marketing & feasibility studies, trade shows, travels, lodging and other necessary activities that will result in the development of a viable Business Formation Model.