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Glossary - Pg. 246

246 Glossary Accredited investor Individual meeting the SEC criteria for investors who do not need as much protection by virtue of certain qualifications. Advance Amount paid, generally to fund production, and recouped from royalties. Agent 1. An employee or partner having the authority to act on behalf of the company or partnership; 2. Party hired to sell the goods and services of another. Ancillary products Often denotes merchandise but not entertainment related to a game, such as hint books, T- shirts, and figurines. Angel investor An individual, usually affluent, who provides capital to one or more start-up companies. Assignment of invention Document transferring rights in intellectual property. At will Form of employment where either party may terminate at any time for any reason. Back-end Compensation received after a product has earned a profit. Basis Purchase price used to determine tax liabilities. Blue Sky laws State regulations governing the sale of securities designed to protect investors from fraud. Board Corporation's board of directors. Boilerplate Standardized or form contract language. Break-even Point at which a game's publisher recoups its total costs. Bylaws Set of rules establishing. C-corporation A business which is a separate legal entity from its owners. Chapter 7 Chapter of the U.S. Bankruptcy code governing liquidation after bankruptcy. Cliff vesting Vesting plan in which most of the ownership accrues in a lump toward the end of the vesting schedule.