Common use of Funding Recognition Clause in Contracts

Funding Recognition. The Employee hereby acknowledges and understands that the Company has yet to secure adequate funding and until such time as such funding is received has no obligation to pay the salary or provide any other benefit under this contract. Salaries shall begin to accrue as of October 1, 2020 until such time as funding is secured to pay them. Additionally, as a result of the fluid funding situation, compensation may be paid and reported on 1099 forms as opposed to W2; until no later than June 1, 2021.