INTRODUCTION

INVESTOR DEFAULT

ENTREPRENEUR DEFAULT

The clauses below are included as part of our draft multiparty investor agreements designed to safeguard entrepreneurs, suppliers and capital investors against the damaging effects of failing to meet pre-agreed expectations.

They may optionally removed or amended to suit all of the parties in the agreement.

Investors are paid from revenues and exit proceeds so if one or more investors either fail to meet their commitment or are late in delivery the the entrepreneur and remaining investors would suffer a reduction in their rewards.

In the event that this occurred the system would estimate the financial impact of that non delivery or lateness on the entrepreneur and other investors for all of the subsequent pre-exit stages will need to be evaluated followed by the entrepreneur and other investors will be authorised by the defaulting investor to take the following actions.

• To rearrange an alternative investor to fulfill the non or late delivery after a period of two working days or 10% of the delivery duration of the supply whichever was shorter and allocate the replacement investor all of the defaulting investors reward.

• It is envisaged that one or more replacement investors would be lined up to replace investors providing a critical resource or one that is difficult to obtain and that from the outset all of the investors for a stage agree to a reduced  reward to allow the replacement of a percentage of the investor base at an associated higher costs where required.

• To mark the user profile of the defaulting investor with details of the default to include a negative quantative score to be used by the Pie Finance fulfillment matching engine and a link to the project log detailing the default.

• Where the defaulting investor felt that they had been unfairly treated they would be free to appoint an independent moderator to review the record of the default and advise us to get their score and the project log changed if it was found to be incorrect.

To protect  the interests of all of the parties who use this website and in particular those who invest in ventures or projects it is a condition that all parties including ourselves adhere to the following terms and conditions regarding the payment of reverse royalties.

• Where agreements created by users based upon the drafts generated by this website or Pie Finance Limited are accepted and the investees (the party who originally sought the funding and resources and where appropriate earlier stage investors who own the output of the earlier rounds) or venture fail to either perform as per the pre-agreed implementation plan or return investors original investment and projected profit share then the investor will have the right to use the intellectual property rights and know how possessed by the venture or project to operate a similar venture or project as long as they pay a royalty to the investees.

• Royalty payments as a percentage of revenues will be as per the schedule included in the final agreement governing the investment. Where they have not been specified the following stage dependant default rates will apply and royalty payments will be made within 30 days of receipt of the revenue upon which they are due.

The 'royalties to other unpaid investors' will be paid out in proportion to the amount of their original investment and projected profit share outstanding at the time when the royalty payments are made.

Automated valuation, matching and ERP based investment tracking - International Patents Pending