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velocity1_revenue_share_agreement.md

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Velocity1 Revenue Share Agreement

version = "4.2.0"

PARTIES

BETWEEN:

Hereinafter referred to as "the Incubator".

AND:

Hereinafter referred to as "the Founder".

RECITALS

  1. The Founder wishes to create a product/service and launch it to the market.
  2. The Incubator is willing to provide the Founder with certain support as well as funds in the form of a profit-sharing loan, such support/funds to be invested by the Incubator according to this agreement.
  3. The Incubator provides support and funds to the Founder in the form of a profit-sharing loan. In return, the Founder agrees to share a percentage of all revenue generated by the Project with the Incubator.

PROVISIONS

OBJECT:

The Incubator grants the Founder support valued at $7,000, which is broken down as follows:

  1. Training Resources (Valued $1,000):

    1. Access to comprehensive knowledge base and industry insights ($200)
    2. Participation in intensive training camp programs ($500)
    3. Access to case studies and data from past incubation projects ($200)
    4. Personalized mentorship from industry experts ($100)

  2. Channels and Networking (Valued $2,500):

    1. Strategic product launch support on major platforms ($2,000)
    2. Access to exclusive product launch websites and platforms ($200)
    3. Introduction to the Incubator's network of investors, partners, and potential clients ($200)
    4. Participation in networking events and founder meetups ($100)

  3. Value-Added Services (Valued $2,800):

    1. Comprehensive idea validation and market research ($500)
    2. Professional revision and optimization of product landing pages ($400)
    3. Targeted paid advertising support and strategy ($500)
    4. Assistance in setting up and optimizing payment systems ($200)
    5. Customized marketing strategy development and execution support ($500)
    6. In-depth SEO analysis and optimization ($400)
    7. User experience (UX) review and recommendations ($150)
    8. Legal and compliance guidance ($150)

  4. Technical and Global Market Support (Valued $700):

    1. Access to cutting-edge AI tools and resources ($200)
    2. Technical architecture review and optimization ($150)
    3. Cultural adaptation and localization guidance ($175)
    4. Support in building a global brand presence ($175)

The Founder shall have the opportunity to apply for additional funding or support from the Incubator under the terms outlined in this agreement. The Incubator retains the discretion to approve or deny any such application.

COMPENSATION:

In consideration of the support provided by the Incubator, the Founder agrees to share a percentage of all revenue generated by the Project with the Incubator. The revenue share percentages are as follows:

  • 20% of Monthly Recurring Revenue (MRR) up to and including $10,000
  • 10% of Monthly Recurring Revenue (MRR) exceeding $10,000

For example, if the MRR is $15,000, the revenue share would be calculated as: (20% x $10,000) + (10% x $5,000) = $2,000 + $500 = $2,500

MULTIPLE/CAP:

The revenue share to the Incubator is subject to a multiple/cap of 5 times. This means that the total amount of revenue shared by the Founder to the Incubator will not exceed 5 times the initial support/investment.

Upon reaching the multiple/cap of 5 times, the revenue-sharing agreement between the Founder and the Incubator is considered completed. At this point, the Founder no longer holds any obligation to share further revenue with the Incubator, and the Incubator shall have no additional claims or entitlements under this agreement.

In the event of the sale of the Project within 18 months from the commencement of this agreement, the revenue share multiple/cap will be reduced to 3 times.

If the Project is sold before the revenue share model is fully completed, the Incubator will receive 20% of the sale price. If the calculated share from the sale price exceeds the remaining amount needed to reach the adjusted multiple/cap, the Incubator's share will be limited to the amount needed to fulfill the adjusted multiple/cap.

For example,

  • if the product is sold for $10,000 after 1 year, the Incubator will receive $2,000 (20% of $10,000)
  • if the product is sold for $300,000 after 3 years, the Incubator will receive $35,000 (5 x $7,000, if there is a follow-up investment, the cap will be adjusted accordingly)

INCUBATION:

The Founder shall actively participate in the incubation camp provided by the Incubator. The terms of participation are as follows:

  • Upon joining the incubator, the Founder is required to pay a deposit of $299. This deposit is intended to ensure the Founder's commitment and efforts during the incubation period.
  • The deposit is refundable if the Founder achieves the predefined goals by the end of the incubation period. The specific goals will be mutually determined by the Founder and the Incubator.

COLLATERAL REQUIREMENT:

The Parties acknowledge and agree that no collateral is required as part of this Revenue Share Agreement.

SUPERVISION:

The Founder will apply all necessary resources and will take all necessary actions to defend its interests and those of the Incubator.

INFORMATION OBLIGATIONS:

The Founder shall provide the Incubator with adequate information about the state of the products.

SIGNATURES:

IN WITNESS WHEREOF, the parties hereto have executed this Revenue Share Agreement as of the date first above written.

For the Incubator:

Signature

Name (Printed)

Date

For the Founder:

Signature

Name (Printed)

Date