The functioning of a Kentron sandpit can be tailored in a wide variety of ways to meet the specific needs of a client. These, as well as other terms and conditions, are covered in the contract between Kentron and the client organisation. Content of that contract includes, but is not limited to:

  • If a participant is permitted to work on a Kentron project on company time, what fraction of their time (e.g. hours/week) can be spent working on Kentron projects in the client company sandpit, and, under this scenario, what fraction of the Conversion Notes earned by that person accrue to themselves and what fraction to the company.
  • The cost, if any, for registering a project in a Kentron-managed sandpit. Where such costs are charged, this is typically between $500 and $1,000 per project.
  • The annual fee, if any, to be paid by the client organisation, or the projects running in the sandpit of that client organisation, to Kentron.
  • Any profit share to be paid as a fee to Kentron by the projects running in the sandpit of the client organisation; this is typically 10% or less.
  • Any royalties that will accrue to Kentron after an incubating idea is spun-off into its own company; this is typically a royalty on gross sales of the spin-off company not exceeding 5% and not exceeding 10 years.
  • The conditions under which expenditure in any project requires approval from the sandpit manager, the client organisation, and/or Kentron management.
  • The terms and conditions under which IP generated within a project can be shared with other projects within the same sandpit, and with other Kentron-managed projects in other client organisations (noting that sandpits are kept completely isolated from each other).
  • Once the development of an idea is considered sufficiently mature, the timing, structure, and terms and conditions for spin-off entities.
  • All legal liability associated with any project managed by Kentron in the innovation sandpit transferring to the client company.