1. ANTECEDENT

Parallel18 is a top-level, performance-driven international startup program offering entrepreneurs from all over the world access to high-quality business training, grants, mentors, business contacts, and investors to help them scale globally while working to position Puerto Rico as a unique hub for innovative businesses and technology. The program is part of the Puerto Rico Science, Technology, and Research Trust (“Trust” or “PRSTRT”), a private non-profit organization created with the goal of maximizing Puerto Rico’s participation and creation of jobs in the global knowledge economy by promoting investment and financing of science and technology research and development. The organization manages and hosts over a dozen initiatives that range from grants and technical support to meetups and educational resources for researchers, entrepreneurs,
farmers, investors, and other groups.

2. MAIN GOAL

Our P18 Gen. 13 program (“Program”) welcomes companies from around the world to help them scale from Puerto Rico to global markets. Our team works hard to provide high-quality business education, develop business connections, and create investment opportunities for all our startups.

2.1. Specific Goals

a. Sustain the parallel18 program over a long period of time by remaining politically
agnostic and showcasing the value that parallel18 brings to Puerto Rico.
b. Ensure buy-in from both the private sector and all areas of the government by
showcasing success and furthering economic development.
c. Encourage local and global angel, venture capital, and private equity funds,
together with other capital allocators to invest in the best and brightest startups
emerging from Puerto Rico.
d. Assist in overcoming some of the challenges that the Puerto Rican economy is
currently facing while pushing growth in the island’s economic development.
e. Develop a creative and innovative environment within the community that moves
beyond technology and extends to the arts, culture, culinary, tourism, and other
interests.
f. Encourage parallel18 corporate partners to engage in business development with
startups to explore new opportunities for corporate innovation.
g. Further the growth of the local economy.
h. Position Puerto Rico on the map as an active member of the global startup
ecosystem and as a center for innovation and entrepreneurship.

3. EXPECTED RESULTS

a. Companies developed with high global potential, scaling from Puerto Rico.
b. Direct partnerships with local organizations to help integrate the program and its
participants into the local business and startup ecosystem.
c. Increased retention efforts of local university students by presenting them with
opportunities to intern and work for the new companies created through the program.
d. Increase repatriation efforts of the Puerto Rican diaspora by promoting
opportunities for employment with the new companies created through the program.
e. Positive global visibility by positioning Puerto Rico in the global media as an innovation hub.
f. Development towards inclusion in global innovation indexes.

4. PARTICIPANTS

Startups that apply must have less than three (3) years in operation and must be incorporated in Puerto Rico or in the United States with authorization to do business in Puerto Rico. In the case that your company is not incorporated in any of these locations, only founders that own fifty percent (50%) or more of their startup may apply. To participate, a company must have at least two (2) founders. The founders applying to the Program must be over eighteen (18) years of age, and the Program participants may not be more than three (3) people. Parallel18 reserves the right to use its discretionary faculty to accept team members below the age of eighteen (18) as extraordinary situations may arise. The Project’s participation in the Program shall be for five (5) months (the “Program Term”). Program Term commences on the date set for Orientation Day. Selected companies must be physically located in Puerto Rico for the entire Program Term. While it is not required that companies be physically local to apply, once selected, the participating company must relocate to Puerto Rico for the entire Program Term to comply.

The following categories will be considered:

4.1. Project

The startup entity duly specified in the application form as the applicant company and its subsequent participation in and for the duration of the Program and its services as a selected company (“Project” or “Company”). (Only one entity per application.) The entity will be required to be registered in Puerto Rico or in the United States as authorized to do business in Puerto Rico as a corporation or a limited liability company (LLC). If the applicant company does not have this legal structure, parallel18 can provide resources for assistance in this process.

4.2. Team Leader (only one)

The Team Leader, is a natural person, duly specified during the application form, who is an original founder of the startup and continues to be a C-level member directly involved in the company’s business strategy, commercial activities, and decision making, who must act in name and representation of himself or herself and of the executors as the person responsible before parallel18. The person designated as the team leader must be physically located in Puerto Rico during the entire Program Term and be exclusively dedicated to the development of this Project, the Team Leader will be responsible for submitting detailed reports on expenses and activities materialized by the Company or third parties. If not a U.S. citizen, the Team Leader must have the capacity to apply for a visa to enter the U.S.

In the event that the Team Leader is unable to fulfill their duties, the participating company must notify parallel18 in writing within 10 business days. An interim leader, meeting the original criteria, will be designated and must be approved by parallel18. The interim leader will assume responsibilities for up to 30 days while the company identifies a permanent replacement. The permanent replacement must also meet the original criteria and be approved by parallel18. Both the interim leader and permanent replacement will be responsible for submitting detailed reports on expenses and activities during their tenure.

4.3. Team Members (max two)

Optionally, the participation of up to two additional natural persons who form part of the founding team and continue to be C-level business-oriented decision-makers for the company and who are duly specified during the application process may be considered and welcomed to join the Project. If the team members that are to participate in person are not U.S. citizens, they must have the ability to apply for a visa to enter the U.S. Members are advised to start a visa application process as soon as possible to prevent Project hindrances.

5. ACTIVITIES ELIGIBLE FOR THE PROGRAM

Those activities that enable the launch and scaling of companies with high global growth potential that use Puerto Rico as a platform to grow. Projects may not consist of consulting services, non-profit organizations, traditional import/export companies, or lifestyle businesses, as these are not considered to be highly scalable projects or with high growth potential. Likewise, Projects must have a product in the market, with traction, revenue, and operations capable of scaling, as well as a team dedicated exclusively to the company, in decision-making capacity.

6. PROGRAM ACTIVITIES

The Program will include a variety of activities and/or events, which will be made available to participants of each project, and among which a distinction will be made between mandatory and optional activities.

6.1. Mandatory Activities

The Program Term for a Project is five (5) months. During the Program Term, the Team Leader must be physically located in Puerto Rico and available to participate in the following mandatory activities:

A. Soft-Landing Week – The soft-landing week is mandatory for the team leader only. Nevertheless, all approved team members are welcome to participate. The week’s activities include:

1. Program welcome orientation days.
2. Peer presentation by the company to the incoming cohort.
3. Finalizing the execution of the program Grant Agreement with digital in-person signing.
4.Connecting with local service providers as needed (local bank, company incorporation or authorization to do business, legal, accounting, among others)

5. Initial assessment Meeting: explanation of Program rules, establishment of clear milestones and KPIs of what the company aims to achieve for the next first half of the Program (2.5 months) and the end of the Program (5 months) that will be jointly tracked with the Program, as well as projected use of funds provided by Program.

B. Weekly Follow-Up (KPI) Meeting – You will be required to meet with the Program staff to analyze weekly progress and strategic plans, in order to facilitate the accomplishment of the goals by providing access to the right resources.

C. Midpoint Evaluation- Presentation of the update and progress of the company to the Program, who will use the information gathered from program staff and mentors to analyze in detail the company’s progress during the first 2.5 months (first 10 weeks of the program). If the company does not meet the Program’s standards of acceleration for progress compared with actual performance, the goals that they set at the beginning, or comply with required attendance, participation and engagement, the Program is entitled to put an early end to the project.

D. Demo Day – Key public event to showcase accomplishments in the Program to local and foreign investors as well as the local business community. Participation in this event is pending approval from the Program after successfully complying with Program requirements for the duration of the program as well as proven growth of traction during the Program.

1. Demo Day Pitch Practices – Company must have complied with Program’s standards and participated in mandatory in-person pitch practices in order to
participate in Demo Day.

E. Other Activities- Within the Program that are designated as mandatory, a circumstance
that will be communicated in advance to the team leader, such as, but not limited to, parallel18 Ventures and parallel18 Connect pitch practices before presenting to corporate partners, bootcamps, among other activities. If the Team Leader does not participate in the activities and/ or events specified herein without previous authorization to be excused, the Program may evaluate putting an early end to the Project, depending on the reasons.

6.2. Optional Activities

Optionally, the team leader or team member may participate in and/or carry out the
following activities, unless these have been categorized as mandatory, as set out in the
previous subsection:

1. Presentations, office hours, workshops, classes, or other events organized by other
program participants.
2. Other activities related to the project and/or program that were not described as
mandatory.

7. CONTENTS OF THE PROJECT

7.1 The applications must contain at least the following in English:

1. Background documentation for each of the team members named in the project
application, stating each person’s nationality, education, technical experience and
work history. The achievements of each one of the participants must be evidenced.
*Note that we reserve the right to conduct, and participants must facilitate, a
background check on each team member and the entity prior, during and/or after
their participation in the program.
2. Legal entity documentation: if you applied to the program with a company that has
already been created, you will be required to submit documentation in case you are
Selected.
3. The following identification documentation will be required for selected companies
and members:

● For Puerto Rican participants: Images of both sides of a valid
government-issued identification card or driver’s license, and/or an
image of the page indicating the name, photo, identification number,
and dates of granting and expiration of a valid national passport.
Documents must not be expired or otherwise canceled.
● Foreign participants: Image of the page indicating the name,
identification number, and dates of granting and expiration of a valid
national passport. In the case where these documents listed above are
in the process of validation, a copy of the document that proves this
condition must be attached. Participation in the Program is contingent
upon furnishing evidence of a valid passport status.
● Dedication (time and resources) to the project from the participants to
this project.
● Description of leadership history of who apply as a Team Leader.

● The product and/or service to accelerate and/or commercialize.
● Description of the competition and the project’s differentiation.
● Stage or phase in which the project is at the moment of application.
● Explain the reason why you think Puerto Rico would help accomplish
the milestones that you are aiming to achieve.
● Readiness to have presence in Puerto Rico and expand into a new
market.
● Short video explaining company, level of commercial traction, reason
for applying to parallel18, and why Puerto Rico makes sense for their
strategy.
● Motivation to develop the project from Puerto Rico with a tangible
positive impact in the Island in terms of economic development.
● Progress to date and plan during participants’ stay in Puerto Rico.
● Target market and its size.

7.2. Additionally, the applications may contain the following:

A. Concerning the participants:

● Participation in organizations related to entrepreneurship and
innovation.
● Relationship with international networks to position Puerto Rico as an
innovation hub.
● Activities to promote interaction, networking, and the transfer of
knowledge skills, and best practices to local entrepreneurs and their
environment.

B. Concerning the project:

● Commercialization and scalability strategy.
● Entry and exit barriers.
● Market position.
● Letters of recommendation (optional).

C. Incomplete applications as well as applications not written in English will be deemed not submitted.

8. DEADLINES
The Program duration is 20 weeks and will be understood to have begun on the date established by parallel18 as Orientation Day. This date will be notified once the companies are selected.

9. THE FUNDS

The Puerto Rico Science, Technology, and Research Trust will provide a grant, in other words, a transfer of money to the company’s local commercial bank account for $40,000.00 (forty thousand dollars (USD)) delivered in scheduled sets throughout the program, or as deemed appropriate by the program, subject to the participant’s compliance with the terms and conditions set forth herein. All disbursed and used funds need to be properly declared by showing corporate bank statements, and in certain cases an invoice of the service or
product acquired, or a contract in the case of apartment rental or an individual hired or contracted, per the Program rules.

10. APPLICATION
10.1 Procedure

This program will be made available to interested parties in the form of an application. Communication about the opening of a call for applications will be conducted by means of
a notice published on the program’s website and social media platforms. Potential participants must complete and submit the designated forms to be considered for
the Program. Selection of participants is at the sole discretion of the Program administrators. Selected participants will be eligible to participate in Program activities. Participation in the Program is a privilege, not a right. The Program reserves the right to remove any participant from the Program at any time, for any reason deemed necessary. Participants will be asked to complete and submit two (2) different forms. The first form will validate whether the company meets the program’s basic requirements. Those who qualify, will be sent a second form, which includes specific questions that will be evaluated using the criteria explained below.

10.2 Means of Application

Companies, along with the requested technical and economic documentation, may be entered solely through parallel18 website (www.parallel18.com) or any other channel
previously notified. The accompanying documents must be text documents, spreadsheets or other files compatible with the system (such as doc, xls, jpg, pdf).

10.3 Limit of Applications
Each applicant, even if not designated as Team Lead, may only apply once with one project per application period. Therefore, every team member must be working on only one project per cohort. If a team member is part of various applications for different projects, the Program may consider the Project and/or applicant invalid.

11. EVALUATION PROCESS AND CRITERIA
There will be 5 Phases of the evaluation process:
Screening Round
Judging Round

Internal Review
Selection Committee
Interviews
11.1 Screening Round (Analysis of Pertinence or Relevance)
All applications will be reviewed to determine if they comply with the basic requirements for the program (i.e., traction, years of operation). Those who pass this Screening Round will be sent a second application form.

11.2 Judging Round
A group of carefully selected judges will be given, anonymously and randomly, a set of companies to evaluate the applications. The judges will rank the companies accordingly to a
given set of points, evaluating the criteria mentioned below. These judges will evaluate the applications, giving them a score of 1 to 5 (with 1 being the minimum score and 5 the
maximum score) on the following evaluation criteria:

Product or Service (20%)
Traction (20%)
Market and Competitive Positioning (20%)
Team Mix, Qualification & Experience (20%)
Engagement with Puerto Rico (20%)

11.3 Product or Service (20%)
A critical aspect of evaluating the project is how differentiated and innovative their product or service is.

1. How creative, interesting and engaging do you find their pitch?
2. Is the business opportunity unique and innovative? Is it tackling a real need?
3. What’s new/revolutionary about what they are doing? How will they add value?
4. What is their competitive advantage?
5. Is the product and technology presented feasible?

11.4 Traction (20%)
For this program, we are seeking companies that have gained some level of initial traction and that are ready to grow and scale with Parallel18.
1. Has this startup built and tested an MVP? Do they have a functional prototype? Is the product already working?
2. Do they demonstrate some initial commercial traction in their market?
3. Do they have an initial user base and show an understanding of their target market based on this initial traction?
4. Does the team have the ability to undertake tangible business activities related to expanding into a new market?
11.5 Market and Competitive Positioning (20%)

All submissions should target a global market and also be clearly differentiated from competitors. Projects may be rejected if they are only considering one sole market.
1. Is this startup’s market share likely to be large? Can this venture achieve a
leadership position in its market?
2. Does the team have a clear understanding of who their ideal customers are?
3. Does this team understand who the present and future competitors are?
4. Has the team articulated a clear competitive advantage – exclusive intellectual
property, first mover advantage, network effect, etc.?
5. Would their customers choose to work with them rather than with their
competitors?

11.6 Team Mix, Qualification & Experience (20%)

The entrepreneurs and teams that we are seeking should be both accomplished and respected individuals, along with having a strong and cohesive team.
1. Does the team demonstrate dedication, focu,s and resilience?
2. Do they have valuable and transferable skills? Notable life experiences? Impressive accomplishments?
3. What is the quality of the recommendation? And does it come from a person who is familiar with the entrepreneur’s educational background or business model?
4. How coherent is the team? Do they demonstrate complementary skill sets and dedication to each other and the Project?
5. Is this the right team for this project?

11.7 Engagement with Puerto Rico (20%)

We want to ensure that the startups in parallel18 are impactful members of the Puerto Rican entrepreneurship ecosystem. This means that startups have a clear strategy around how
they plan to take advantage of the unique opportunities and resources available in Puerto Rico and generate impact in the region. Cultural affinity and understanding of the Puerto
Rican reality are critical to ensuring startups can sustain longer-term and meaningfully contribute to the local ecosystem.

1. Does the team demonstrate a genuine interest in becoming part of an active Puerto Rican entrepreneurship community?
2. Will this team clearly benefit from and contribute to the Puerto Rican economy as a jumping-off point to scale globally?
3. Does the team have the ability to undertake tangible business activities in Puerto Rico?
4. Has the team identified a specific strategy it plans to implement during the program to take advantage of the opportunities Puerto Rico has to offer?
5. Will this team be an active and valuable member of the Puerto Rican startup ecosystem, donating their skills and startup spirit productively?

11.8 Internal Review:

The Program will examine the extent of convergence of the project’s objective with the guidelines and objectives of the Program, verifying the consideration of Puerto Rico as a
platform in order to access global markets, and the scalability of the project, among other factors. Likewise, compliance with the following requirements will be verified:

1. The team’s possibility of residency in Puerto Rico during the entire execution period of the Project and exclusive dedication to said project, this being a legal entity in the US.
2. That the project does not consist of a consulting firm, export, and import company, lifestyle company, or is otherwise ineligible.
3. Commercialization of the project of less than three years.
4. The application contains the identification documentation for participants as stated in section 7.1. As a result of this analysis, parallel18 will classify, on a justified basis, the relevance or irrelevance of the projects. If a declaration of “Not Relevant” is declared, the project will not continue in the evaluation process, with this decision communicated to the applicant within a period not exceeding 30 days, counted from the closing of the application period.

11.9 Final Selection:

A local selection committee composed of experienced members will make the decision to select up to 20 final companies for the Program.

11.10 Interview Round:
During the evaluation period, an interview through a phone call, a video conference, or in person, if feasible, will be requested to clarify questions from the evaluators.

12. DECISION
Once the evaluation is concluded, the program will have 10 business days to inform the applicants about the final decision and extend an offer to join the Program.

13. COMPANY ACCEPTANCE
Upon the company’s acceptance of the offer to join Program, which includes acknowledgement and full acceptance of Grant Agreement including its supporting documents and program terms and conditions, the process of soft landing begins, which requires the execution of tasks by both the team leader of the company and by Program. This acceptance must be done 3 business days after the Project is informed of this acceptance.

14. RIGHT TO INVEST
By accepting participation in the Program, the participating company hereby grants the Trust the right to invest in the company during any active, subsequent, or follow-up financing round of any kind that occurs after the company’s entry into the Program. This right shall be exercisable at the Trust’s discretion and under terms and conditions mutually agreed upon by the Trust and the participating company.

15. DELIVERY OF GRANT

15.1 Mode of Delivery
After the execution of the contract between the U.S. entity and the Trust, the total amount of the funds will be delivered in various sets throughout the program, the first set being at the beginning of the program for $20,000.00. The grant can only be deposited in a Puerto Rico
based corporate bank account. Of the total amount delivered, the company can spend, optional and if needed, up to $5,000 in indirect costs and miscellaneous expenses and up to $5,000 in housing expenses. The requirements of expenses are specified in section 15.4.

15.2 Conditions for Delivery of the Funds

The conditions for Parallel18 to deliver the funds shall be as follows:
1. Compliance with subsection 7.1 on identification and legal documentation of
participants and companiesa.
2. Full execution ofthe parallel18 Grant Agreement..
3. Successfully comply with the required criteria for the midpoint evaluation (second
installment).
4. Maintain good standing status,as qualified by the Program, throughout the
Program duration.
5. Parallel18 reserves the right to verify the compliance with all requirements
contained herein these terms and conditions and, in the event that any serious
unconformity is found, in addition to suspending the delivery of the grant or early
termination of the project,

15.3 Suspension of Payments
Continuity in the delivery of funds shall be subject to the evaluation made by parallel18 of the project’s progress and to budgetary availability of funds. Parallel18, at its sole discretion, may suspend delivery of funds and dismiss a company from the Program during the soft landing period or at the beginning of the program if the startup makes significant changes in the project, business model and/or founding team from those stated in the application, specifically if it fundamentally changes the company’s ability to scale and/or use Puerto Rico as a platform to grow, so that it is no longer aligned with Program’s acceleration experience.

Parallel18 may suspend payments temporarily or permanently if it finds that the project is not being carried out in a satisfactory manner or that the Team Leader has failed to fulfill his or her obligations in whole or in part. In these cases, Parallel18 shall impose the measures it deems appropriate to correct the deficiencies detected, or to terminate the project early. Prior to finalizing the process of putting an early end to the project, parallel18 may order the team to refrain from making further expenditures from the delivered grant. In this case, it may accept expenses associated with activities undertaken up to the date of communication of said order.

Parallel18 shall provide due notice to the project once suspension of payments and of expenses has been chosen as the course of action.

15.4 Accounts and Expenses Eligible for Financing

Costs associated with development of the project may be included in the following accounts:

a. Human Resources:
Includes the salaries or fees of technical and/or professional personnel directly
associated with project activities who are legally authorized to work in the United
States of America, including the entrepreneurial salary that participants may receive
in accordance with what is specified in the legislation in force.
b. Operating Expenses:
Direct spending associated with project execution, such as: administrative support
staff, material office lease costs, national and international fares, medical insurance
for participants, issuance of guarantees, product development, visits to potential
clients and / or providers, activities relating to the promotion and publicizing of the
product / service, processing of visas for participants, and internet services.
c. Capital Expenses:
Refers to the purchase of durable goods (property, plant and equipment assets)
necessary for the strategic implementation and achievement of the expected results
of the project after a written notice has been given to Program and formerly
approved.

15.5 Expenses Not Eligible for Financing

With the funds provided by Parallel18 for the project, the following items are not eligible for financing:

1. Salaries for personnel that is not legally authorized to work in the United States of America
2. Investments in capital markets, such as buying shares, time deposits in domestic or foreign currency, mutual funds, debts (principal plus interest) or dividends.
3. Taxes recoverable by the Team Leader, taking into account its legal status and applicable tax rules.

4. Acquisition of properties not related to the execution of the Project.
5. Airfare for people not directly involved in the Project.
6. Alcohol purchases
7. Leisure expenses.
8. Any other expenses not directly related to the Project.

15.6 Account Reporting
For purposes of account reporting, a pecuniary or cash contribution will be defined as the expenditure of funds due to project execution. In other words, the use of pre-existing facilities, infrastructure, or human resources of the contributor does not correspond to this concept.

Expenditures charged to Parallel18’s grant must be reported in detail, on a biweekly basis or as otherwise notified by the Program, based on actual costs, at the price actually paid, duly supported with reliable documents that detail and verify the amount in USA (United States of America) currency at the time of the expense. Participants can be required to provide additional documentation or clarification if needed. Failure to submit expenditure reports or submission of inaccurate reports may result in removal from the Program and/or reimbursement of funds to the Program.

Notwithstanding the latter, Parallel18 will verify that the amount claimed as a contribution to the project is consistent with the objectives and activities reported.

Expenses incurred in the name of the Team Leader and executors (other participants) that are designated in the application will be accepted. Costs of a Limited Liability Company or a Corporation whose owner is the Team Leader, or of a company in which the Team Leader has a shareholding of at least 30% (thirty percent), will be accepted, as long as said company:
1. Is legally incorporated in Puerto Rico, and
2. Does not present initiation of activities related to the project for a period exceeding 5 months prior to the date of application to the Program.
These circumstances will be verified by Parallel18, for which purpose the Team Leader must submit, within 10 days prior to the first expenditure expected to be paid by the company or partnership, the following documents:

1. Simple photocopy of the articles of incorporation and amendments thereto.
2. Certificate of good standing issued by the competent authority, which must be no
more than 90 days old on the date of filing.

15.7 Prepaid Expenses
Expenses incurred in the execution of the project from the date of communication of the approval decision, like flights related to the participation of the program, accommodation in Puerto Rico – related to the participation of the program, legal expenses directly related to the participating company and any item that the Program, in its discretion, deems justified in its refund, may be accepted at the discretion of the Program, as applicable, at the risk of the Team Leader, and contingent to successful midpoint evaluation, good standing, and the signature of the Grant Agreement. Therefore, the lack of formalization of the Grant Agreement will not result in either compensation or reimbursement.

15.8 Monitoring and Reporting
Parallel18 holds the authority to track the activities of the Team Leader, of the other participants and of third parties hired, without any prior notice. To this end, in the case of hiring activities with third parties, the power of monitoring and control shall be recorded in the contracts entered into by the Company with such entities, with the Company and Team Leader being responsible for breach of its obligations in the event of omission, and if difficulties arise from it for conducting the monitoring duties detailed above. Nevertheless, Parallel18 does not assume co-management or co-execution of the project, with project execution remaining the sole responsibility of the Team Leader. The Team Leader must comply with the calendar of monitoring meetings provided by his or her startup executive, and with the delivery of reports in accordance with Program requirements.

These reports shall contain at least the identification of the activities implemented and results obtained.

As per the Grant Agreement, the Team Leader is responsible for the delivery of a final use of funds and expenses report made within 2 weeks after the expiration date of the term for project execution. This term may be extended at the request of the Team Leader and subject to the approval of the Program. If the expense report is not submitted within the stipulated time; a re-payment process may be initiated.

Notwithstanding the latter and in accordance with the nature of the project, the Grant Agreement may provide for the delivery of progress reports, the number and timing of which will be determined by the Program taking into account the characteristics of the project, the activities of the latter, the results and Parallel18’s own budget availability. The number and timing of progress reports may be modified by the Program, upon a substantiated request by the Team Leader, or on the Program’s own accord, before the deadline has passed for said delivery.Parallel18 may request extraordinary progress reports for the periods determined in light of monitoring of project activities, with no amendment of the Grant Agreement being necessary in this case.

Parallel18 shall approve or provide comments to the progress reports and extraordinary reports within a term of 14 days after material reception of these, or from the date of the on-site review, as applicable. In response to a request by Parallel18 for documentation, modification or supplementation of reports, the Team Leader must comply with such a request within the 3 days of the request. Reports that do not contain all the information requested or do not attach all supporting records that are required for both technical and financial analysis, or that do not attach a legible copy of these, shall be construed as not filed. Parallel18 shall notify the Team Leader within a period of 5 days from receipt of the report, establishing a term not exceeding 5 days from receipt of the notification to complete the submission of the report.

16. EARLY TERMINATION
Without prejudice to the other grounds for early termination set forth in these requirements, parallel18 may adopt such a decision in the following cases, applying the sanctions detailed below:

16.1 Early termination of the project for reasons not attributable to the Team Leader Parallel18 may impose an early end to the project on its own initiative or at the request of the team leader in the following situations:
1. Failure to achieve critical results or continuity milestones established by Parallel18 and/or the Team Leader, for reasons not attributable to the lack of diligence of the Team Leader, duly qualified by Parallel18.
2. Having become convinced that the project will not achieve the expected results,
that it cannot be executed within reasonable parameters, for reasons not attributable to the lack of diligence of the Team Leader, duly qualified by Parallel18.
3. Other causes not attributable to the team leader’s lack of diligence in carrying out the activities related to the project and/or to the team leader’s participation in the Program, duly qualified by Parallel18. If requested by the Team Leader and accepted by Parallel18, it shall be understood that the project has been finished early, from the date of the request.

16.2 Early termination of the project by deed or act attributable to the Team Leader Parallel18 may put an early end to the project if the Team Leader fails to comply through negligence or lacks due diligence of his or her obligations. The following situations may constitute breach of the contract:

1. Denial or hindrance of project monitoring.

2. Negligence in performing financial and technical control activities.

3. Failure to notify Parallel18 in a timely manner about the impossibility of paying the contributions for which they and/ or the other participants are responsible.

4. Finding out during the soft landing period or at the beginning of the program that company has made significant changes in the business model and/or founding team from those stated in the application that fundamentally change the company’s ability to scale and/or use Puerto Rico as a platform to grow, so that it is no longer aligned with Program’s acceleration experience.

5. Serious discrepancy between the declared technical and / or legal information and real information.

6. Non-compliance with critical results or continuity milestones established in the project, for reasons attributable to the lack of diligence by the Team Leader, duly qualified by Parallel18.

7. Having become convinced that the project will not achieve the expected results, that it cannot be executed within reasonable parameters, or that the Team Leader will not be able to pay the contribution that is his or her responsibility, for reasons attributable to a lack of diligence by the Team Leader, duly qualified by Parallel18.

8. In the reports of financial accountability.

9. Duplication in the reporting of proof of expenditures.

10. Simulation of acts or contracts.

11. Valuation of costs above the market value.

12. False or altered accounting documents (such as invoices, bills, credit or debit
notes)

13. Failure to maintain good standing status throughout the program duration.

14. Other reasons attributable to the Team Leader lack of diligence in carrying out their activities related to the project and/ or to the Team Leader participation in the Program, duly qualified by Parallel18.

17. WARRANTIES

The participants warrant and represent to Parallel18 as follows:

1. The participants shall not violate any intellectual property rights, confidentiality, right of privacy or other right of any person or entity whomsoever.
2. The participants represent that the information provided by them to Parallel18 during the application and contracting phases is accurate and complete.
3. Each participant understands that in the event he or she has failed to disclose any relevant information which may have impacted Parallel18’s decision to select and award the grant Contract to their project, or has provided false information, Parallel18 will be entitled to rescind the contract with immediate effect, in addition to any other remedies which Parallel18 and the Puerto Rico Science Technology and Research Trust may have by contract or by law.

18. LEGAL STATUS

The participants shall be considered as having the legal status of an independent partner vis-à-vis parallel18, and nothing contained in or relating to their grant shall be construed as establishing or creating an employer/employee relationship with parallel18.

Parallel18 shall not be responsible for any expense, loss, accident, damage or injury suffered by the participants, arising during or as a result of its participation in P18 and its related activities, whether sustained on parallel18’s premises or not.

19. NO WAIVER

The waiver by either parallel18 or any participant of any provision or breach of these terms and conditions and, if selected, contract shall not prevent subsequent enforcement of such provision or excuse further breaches.

20. LIABILITY

The participants hereby indemnify and hold the PRSTRT harmless from and against the full amount of any and all claims and liabilities, including legal fees and costs, which are or may be made, filed, or assessed against Parallel18 at any time and based on, or arising out of, breach by the participants of any of its representations or warranties under these terms and conditions, regardless of whether such representations and warranties are explicitly incorporated herein or are referred to in any attached Appendices.

21. VIOLATIONS OF LAW

Participants must comply with all applicable local, state, and federal laws while participating in the Program. Any participant found to be in violation of any law will be reported to the appropriate authorities. Participants found to be in violation of any law may be immediately removed from the Program. The Program administrators reserve the right to take any additional actions deemed necessary, including but not limited to, legal action.

22. QUESTIONS OR CONSULTATIONS
Questions may be addressed in English or Spanish to the following e-mail address:
[email protected].

i The TRUST reserves the right to unilaterally amend these terms and conditions in future publications. Participants will receive
electronic notification in such an event. Continuing participation in P18 will be understood as providing consent to the new
version of this document.
ii Notwithstanding anything to the contrary contained herein, the terms and conditions of this Program are subject to and shall be superseded by the terms and conditions of the Grant Agreement that Participants will be required to sign if selected for further under these terms for participation in the Program. In the event of any conflict or inconsistency between the terms and conditions of this Program and the Grant Agreement, the terms and conditions of the Grant Agreement shall prevail. Participants acknowledge and agree that their participation in the Program is contingent upon their acceptance of the terms and conditions of the Grant Agreement.