| (a) The Institute shall share in the financial benefit
received by the Grant Recipient resulting from the patents, royalties,
assignments, sales, conveyances, licenses and/or other benefits associated
with the Project Results, including interest or proceeds resulting
from securities and equity ownership. Such payment may include royalties,
income, milestone payments, or other financial interest in an existing
company or other entity.
(b) The Institute's election as to form of payment
and the calculation of such payment shall be specified in the Grant
Contract.
(c) Unless otherwise provided by the Grant Contract
between the Institute and the Grant Recipient, payments to the Institute
required by this section shall be made no less than annually pursuant
to a schedule set forth in the Grant Contract and shall be accompanied
by an appropriate financial statement supporting the calculation of
the payment.
(d) Nothing herein shall affect or otherwise impair
the application of federal laws for projects receiving some portion
of funding from the U.S. Government.
(e) Unless the Grant Contract specifically states otherwise,
the obligation to share revenues with the Institute is continuous
so long as the product resulting from the Institute supported project
enjoys government exclusivity.
(f) If the Institute elects to take equity ownership
in a Grant Recipient, the Grant Contract shall specify:
(1) Any additional requirements associated with the
equity ownership, including a specified schedule for the Grant Recipient
to certify and verify the Grant Recipient's Matching Funds obligation.
(2) The Grant Contract shall also specify the Institute's
recourse in the event that the Grant Recipient fails to fulfill reporting
requirement deadlines.
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| Source Note: The provisions of this §703.17 adopted to be effective August 1, 2010, 35 TexReg 6656; amended to be effective March 2, 2014, 39 TexReg 1386; amended to be effective December 7, 2016, 41 TexReg 9527; amended to be effective June 9, 2022, 47 TexReg 3266 |
