0001213900-26-068878.txt : 20260615 0001213900-26-068878.hdr.sgml : 20260615 20260615170418 ACCESSION NUMBER: 0001213900-26-068878 CONFORMED SUBMISSION TYPE: 1-A PUBLIC DOCUMENT COUNT: 16 FILED AS OF DATE: 20260615 DATE AS OF CHANGE: 20260615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Agentiq Sports 1 Series LLC CENTRAL INDEX KEY: 0002105654 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] ORGANIZATION NAME: 07 Trade & Services EIN: 413161728 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 1-A SEC ACT: 1933 Act SEC FILE NUMBER: 024-12770 FILM NUMBER: 261091780 BUSINESS ADDRESS: STREET 1: 108 WEST 13TH STREET STREET 2: SUITE 100 CITY: WILMINGTON STATE: DE ZIP: 19801 BUSINESS PHONE: 6109525547 MAIL ADDRESS: STREET 1: 445 BRYANT STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94107 1-A 1 primary_doc.xml 1-A LIVE 0002105654 XXXXXXXX Agentiq Sports 1 Series LLC DE 2025 0002105654 6199 41-3161728 0 0 445 Bryant Street San Francisco CA 94107 201-918-2945 Louis A. Bevilacqua Other 0.00 0.00 0.00 0.00 25000.00 0.00 0.00 0.00 25000.00 25000.00 0.00 0.00 0.00 -1162.00 0.00 0.00 Artesian CPA, LLC N/A 0 000000000 N/A N/A 0 000000000 N/A N/A 0 000000000 N/A true true Tier2 Audited Other(describe) Units of Series Limited Liability Company Membership Interest Y Y N Y N N 12900 0 100.0000 1290000.00 0.00 0.00 0.00 1290000.00 Andes Capital Group, LLC. 12900.00 Artesian CPA, LLC 7500.00 Bevilacqua PLLC 85000.00 Bevilacqua PLLC 15000.00 000283441 1169600.00 The anticipated fees above do not include fees owed to the Manager and other offering costs associated with the Offering, and do not account for offering costs allocated to specific series offerings. true AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC PR A0 A1 A2 A3 A4 A5 A6 A7 A8 A9 B0 Z4 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC PR A0 A1 A2 A3 A4 A5 A6 A7 A8 A9 B0 Z4 true PART II AND III 2 ea0294737-1a_agentiq1.htm PRELIMINARY OFFERING CIRCULAR

 

PART II - INFORMATION REQUIRED IN OFFERING CIRCULAR

 

An Offering Statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”). Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the Offering Statement filed with the SEC is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the Offering Statement in which such Final Offering Circular was filed may be obtained.

 

PRELIMINARY Offering Circular Dated June 15, 2026 SUBJECT TO COMPLETION

 

 

AGENTIQ SPORTS 1 SERIES LLC
(a Delaware Series Limited Liability Company)

 

 

 

Address for Notices and Inquiries:

 

Agentiq Sports 1 Series LLC

445 Bryant Street

San Francisco, CA 94107

(201) 918-2945

www.AgenticSports.com

With a Copy of Notices to:

 

Bevilacqua PLLC

800 Connecticut Ave., NW

Suite 300

Washington, DC 20006

202.869.0888

lou@bevilacquapllc.com

patrick@bevilacquapllc.com

 

 

 

Best Efforts Offering

of Units of Series Limited Liability Company Membership Interest

 

 

 

Agentiq Sports 1 Series LLC (“we,” “us,” “our,” “Agentiq” or, the “Company”) is a newly organized Delaware series limited liability company that has been formed to permit public investment in the future earnings of professional athletes pursuant to brand agency agreements, each to be entered into between a professional athlete and an individual series of the Company. We are offering on a best efforts basis units of limited liability company membership interest in each of the series of the Company (the “Units”), as set forth in the “Series Offering Table” beginning on page viii of this Offering Circular (the “Offering Circular”).

 

All of the series of the Company offered hereunder may collectively be referred to in this Offering Circular as the “series” and each, individually, as a “series.” The Units of all series described above may collectively be referred to in this Offering Circular as the “Units” or “our securities,” and each, individually, as a “Unit,” and the offerings of the Units may collectively be referred to in this Offering Circular as the “offerings” and each, individually, as an “offering.” See “Description of the Securities Being Offered” on page 73 for additional information regarding the Units.

 

Initially, with respect to Agentiq Sports 1 Series Ronny Cruz (“Series RC”), our first series offering, we anticipate offering a maximum of $1,290,000 (the “Series RC Maximum Offering Amount”) of Series RC Units (“Series RC Units”), at an anticipated offering price of $100 per Unit (up to 12,900 Series RC Units) with respect to the Brand Advisory Agreement (as defined below) with Ronny Cruz. The minimum offering amount for any series generally may be referred to in this Offering Circular as the “Minimum Offering Amount” and the maximum offering amount for any Series generally may be referred to in this Offering Circular as the “Maximum Offering Amount.” The Minimum Offering Amount and the Maximum Offering Amount may be different for each series offering.

 

 

 

 

No public trading market currently exists for our Units, and no investor should assume that an active, liquid or sustained secondary market will develop. The Operating Agreement permits, but does not require, the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series. If the Manager approves an ATS for a Series, Units of that Series may be eligible to trade through the approved ATS, subject to applicable law, the rules and procedures of the ATS, the Company’s transfer agent arrangements, and any conditions or procedures established by the Manager from time to time. Even if an ATS is available, investors may be unable to resell their Units when desired, at an acceptable price, or at all, and any resale may be delayed, restricted, suspended or conditioned. As a result, prospective investors should be prepared to hold their Units indefinitely.

 

Regulation A Rule 251(a)(2) limits us to aggregate gross proceeds of $75,000,000 in any rolling twelve-month period. For a series limited liability company structure such as ours, that limit applies to the aggregate amount of securities sold under Regulation A in offerings by the Company, including offerings of Units in one or more series, during the applicable twelve-month period. As a result, the maximum dollar amount of additional Units we may offer under Regulation A will increase over time as prior sales fall outside the applicable twelve-month look back period. Following SEC qualification of the Offering Circular and the offering statement of which it forms a part (the “Offering Statement”), we may file one or more post qualification amendments under Rule 252(f)(2)(ii) to seek qualification of additional Units for sale as additional capacity becomes available. However, we will not sell any such additional Units unless and until the SEC qualifies the applicable post qualification amendment. Prospective investors should also note that we may file offering circular supplements from time to time to increase the offering price of the Units of any series by up to 20% above the most recently qualified price for that series. Any increase above that threshold, or any other fundamental change to the information in a qualified offering circular, would require a post qualification amendment that must be filed with and qualified by the SEC. Notwithstanding the foregoing: (i) we will file a post-qualification amendment at least every 12 months, beginning on the initial qualification of the Offering Statement, to comply with the requirements of Section 252(f)(2)(i) of Regulation A, and (ii) no series offering may remain open beyond the date that is three years after the initial qualification of the Offering Statement, unless a new offering statement or other required filing is made and qualified or otherwise becomes effective in accordance with applicable law.

 

There will be at least one separate closing with respect to each series offering. Where the applicable series offering has a Minimum Offering Amount, the initial closing of a series offering will take place on the later to occur of (i) the date subscriptions for the Minimum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion, and subscription funds will be held in escrow pending achievement of that threshold. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), the initial closing will take place on a date determined by the Manager in its sole discretion, and subscription funds will not be held in escrow pending a minimum offering threshold. Once an initial closing for a particular series offering has occurred, we may conduct additional closings for that series until the earlier to occur of (i) the date subscriptions for the Maximum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion. If an initial closing of a particular series has not occurred, an offering shall be terminated upon (i) the date which is one year from the date the Offering Circular related to such series, or amendment thereof, as applicable, is qualified by the SEC, which period may be extended with respect to that series by an additional six months by our Manager in its sole discretion, or (ii) any date on which our Manager elects to terminate the offering for that series in its sole discretion, such date not to exceed the date which is 18 months from the date such Offering Circular related to that series or amendment thereof, as applicable, is qualified by the SEC. If a series offering is terminated without a closing, all investor funds will be returned promptly without interest or deduction.

 

Investors may participate in a series offering by completing and electronically signing the subscription agreement for the applicable series through the Agentiq Sports online investment platform (the “Platform”), which is owned and operated by Agentiq Sports, Inc., the Company’s Manager and the manager of each series. The Platform is accessible through www.agentiqsports.com and through the Agentiq Sports mobile applications. The subscription agreement, including the investor qualification documents, will be pre-populated based on information provided through the Platform, and the Manager and Andes Capital Group, LLC (“Andes”), as broker of record, will review the completed subscription documentation and may request additional information. Once the completed subscription agreement is signed, an integrated online payment provider will transfer funds equal to the purchase price for the applicable Units. Where the applicable series offering has a Minimum Offering Amount, subscription funds will be transferred into a non-interest-bearing escrow account with North Capital Private Securities Corporation, acting as escrow agent (the “Escrow Agent”), and will not be commingled with the operating account of the applicable series before the Initial Closing. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), subscription funds will be transferred directly to the account of the applicable series upon acceptance of the subscription and closing, without being held in escrow pending a minimum offering threshold. We reserve the right to reject any subscription, in whole or in part, for any or no reason, and to withdraw any offering at any time before a closing. Except as otherwise required by law, subscriptions may not be withdrawn or canceled by subscribers. If your subscription is rejected in whole or in part, or if a series offering is terminated without a closing, the applicable subscription funds will be returned promptly to you without interest or deduction. If all or part of your subscription is approved, the corresponding Units will be issued to you upon the closing, and subscription funds (whether held by the Escrow Agent or transferred directly to the series) will be applied as consideration for such Units. Once issued, your Units will be recorded on the books and records maintained by Colonial Stock Transfer Company, the transfer agent for the series being offered hereby.

 

 

 

 

This offering is continuous and ongoing within the meaning of Rule 251(d)(3) of Regulation A, and closings may occur from time to time throughout the term of a series offering to maximize economic efficiency. Notwithstanding the foregoing, we intend to conduct a closing at least every 2 to 4 weeks following the initial closing of any series. Each series offering is being conducted on a “best efforts” basis pursuant to Regulation A of Section 3(b)(2) of the Securities Act of 1933, as amended, or the Securities Act, for Tier 2 offerings. See “Plan of Distribution and Subscription Procedure” on page 27 for additional information.

 

Series  Price to
Public
   Discounts and
Commissions 1
   Proceeds
to Issuer 2
 
Agentiq Sports 1 Series RC            
Per interest  $100   $1.00   $99.00 
Total Maximum  $1,290,000   $12,900   $1,277,100 

 

(1)Andes Capital Group, LLC will be acting as our broker/dealer of record in connection with each series offering and will be entitled to a Broker Fee equal to 1% of the amount raised through each offering. Notwithstanding the foregoing, Andes will not receive any fee on funds raised from the sale of any Units to the Manager or its affiliates. See “Plan of Distribution and Subscription Procedure.”

 

(2)Because these are best efforts offerings, the actual public offering amounts, broker fees and proceeds to us are not presently determinable and may be substantially less than each total maximum offering set forth above. We will reimburse Agentic Sports, Inc., the Manager, for series offering expenses actually incurred in an amount up to 2% of gross offering proceeds.

 

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, and, as such, may elect to comply with certain reduced reporting requirements for this Offering Circular and future filings after the offerings.

 

The Units offered hereby are highly speculative in nature and involve a high degree of risk. See “Risk Factors” beginning on page 10 of this Offering Circular for a discussion of other material risks of investing in our Units.

 

Generally, no sale may be made to you in any offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or your net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

THE U.S. SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF ANY OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

This Offering Circular is following the Offering Circular format described in Part II (a)(1)(i) of Form 1-A.

 

The date of this Offering Circular is June 15, 2026.

 

 

 

 

TABLE OF CONTENTS

 

  Page
Important Notices ii
Certain Defined Terms iii
Cautionary Statement Regarding Forward-Looking Statements vii
Series Offering Table viii
Summary 1
Summary Risk Factors 6
Offering Summary 7
Risk Factors 10
Dilution 26
Plan of Distribution 27
Description of Business 31
Use of Proceeds 53
Description of the Series and Their Assets 54
Management’s Discussion and Analysis of Financial Condition and Results of Operations 63
Management 65
Security Ownership of Management and Certain Securityholders 71
Certain Relationships and Related Party Transactions 72
Description of the Securities Being Offered 73
U.S. Federal Income Tax Considerations 79
Legal Matters and Auditors 82
Where You Can Find More Information 82
Audited Financial Statements F-1

 

i

 

 

Important Notices

 

This Offering Circular includes market and other industry data and estimates that are based on our management’s knowledge and experience in the markets in which we operate. The sources of such data generally state that the information they provide has been obtained from sources they believe to be reliable, but we have not investigated or verified the accuracy and completeness of such information. Our own estimates are based on information obtained from our and our affiliates’ experience in the markets in which we operate and from other contacts in these markets. We are responsible for all of the disclosure in this Offering Circular, and we believe our estimates to be accurate as of the date of this Offering Circular or such other date stated in this Offering Circular. However, this information may prove to be inaccurate because of the method by which we obtained some of the data for the estimates or because this information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. As a result, you should be aware that market and other industry data included in this Offering Circular, and estimates and beliefs based on that data, may not be reliable.

 

Our Units are being offered and sold only to “qualified purchasers” (as defined in Regulation A under the Securities Act). As a Tier 2 offering pursuant to Regulation A under the Securities Act, this offering will be exempt from state law “Blue Sky” review, subject to meeting certain state filing requirements and complying with certain anti-fraud provisions, to the extent that our Units offered hereby are offered and sold only to “qualified purchasers” or at a time when our Units are listed on a national securities exchange. “Qualified purchasers” include: (i) “accredited investors” under Rule 501(a) of Regulation D and (ii) all other investors so long as their investment in our Units does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons). Accordingly, we reserve the right to reject any investor’s subscription in whole or in part for any reason, including if we determine in our sole and absolute discretion that such investor is not a “qualified purchaser” for purposes of Regulation A.

 

For purposes of determining whether a potential investor is a “qualified purchaser,” annual income and net worth should be calculated as provided in the “accredited investor” definition under Rule 501 of Regulation D. In particular, net worth in all cases should be calculated excluding the value of an investor’s home, home furnishings and automobiles.

 

We have not authorized anyone to provide you with information other than as set forth in this Offering Circular. Except as otherwise indicated, all information contained in this Offering Circular is given as of the date of this Offering Circular. Neither the delivery of this Offering Circular nor any sale made hereunder shall under any circumstances create any implication that there has been no change in our affairs since the date hereof.

 

From time to time, we may provide an “Offering Circular Supplement” that may add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent Offering Circular Supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any Offering Circular Supplement, together with additional information contained in our annual reports, semi-annual reports and other reports and information statements that we will file periodically with the SEC.

 

The offering statement and all amendments, supplements and reports that we have filed or will file in the future can be read on the SEC’s website at www.sec.gov or on the Agentiq Sports platform. The contents of the Agentiq Sports platform (other than the offering statement and the Appendices and Exhibits thereto and this Offering Circular) are not incorporated by reference in or otherwise a part of this Offering Circular.

 

ii

 

 

CERTAIN DEFINED TERMS

 

The following definitions apply throughout this Offering Circular unless the context otherwise requires. Capitalized terms used but not defined herein have the meanings set forth in the applicable exhibit or agreement, as described below and as qualified by the full text of such documents filed as exhibits to this Offering Circular. Terms defined in the singular include the plural and vice versa, and terms defined in one tense include all other tenses, unless the context otherwise requires.

 

“Account Control Agreement” means a three-party deposit account control agreement among the series (acting through the Manager), the Client, and the Designated Bank providing for springing control over the Participation Account, as further described in the applicable BAA.

 

“Adjusted Brand Percentage” means the Brand Percentage as adjusted on a pro rata basis to reflect the ratio of the Funded Amount to the originally contemplated Initial Advisory Payment, as further described in the applicable BAA.

 

“Advisory Services” means the strategic brand enhancement and promotional advisory services to be provided by a series, acting through the Manager and its affiliates, agents and service providers, to the applicable Client pursuant to the terms of the applicable Brand Advisory Agreement.

 

“Allocation Policy” means the policy pursuant to which the Manager allocates shared costs, expenses and revenues among series in accordance with the Operating Agreement.

 

“Applicable Federal Rate” means the applicable federal rate as defined in Section 1274(d) of the Internal Revenue Code of 1986, as amended.

 

“Andes” means Andes Capital Group, LLC, a broker-dealer registered with the SEC and a member of FINRA and SIPC, acting as the soliciting agent and executing broker in connection with the series offerings.

 

“ATS” means an alternative trading system on which the series’ membership interests may be traded in secondary transactions, subject to applicable law and platform rules.

 

“BAA” or “Brand Advisory Agreement” means, with respect to a series, the brand advisory agreement entered into between such series and the applicable Client, pursuant to which the series provides the Client with the Initial Advisory Payment and Advisory Services in exchange for the right to receive the Brand Amount.

 

“Brand Amount” means, with respect to a series, the amount payable by the applicable Client to such series, equal to the applicable Brand Percentage of the Client’s Brand Income during the Term, as further described in the applicable BAA.

 

“Brand Income” means, with respect to a Client, the gross monies, compensation or other consideration earned by or payable to the Client solely as a result of the Client’s direct participation, performance or employment as a professional athlete in the Client’s Principal Business, subject to the permitted deductions and exclusions set forth in the applicable BAA. Brand Income excludes Excluded Income.

 

“Brand Percentage” means the fixed percentage of Brand Income that the applicable Client is obligated to pay to the series as the Brand Amount under the applicable BAA, as specified in the applicable Series Designation and BAA, and subject to adjustment as provided therein.

 

“Broker Fee” means the fee payable by each series to Andes in connection with the applicable series offering, equal to 1% of the gross proceeds of such offering.

 

iii

 

 

“Client” means the professional athlete or other talent who is a party to a Brand Advisory Agreement with a series of the Company.

 

“Collateral” means, collectively, (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income, (b) the Participation Account and any successor accounts, and all funds credited therein, (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement, and (d) all proceeds of the foregoing.

 

“Collection Failure” means any failure to establish, maintain or give effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer of the Brand Amount to the Company Account, or the Account Control Agreement, including any revocation, modification, redirection, termination, obstruction, suspension, or failure to renew any such direct deposit, automatic transfer, or Account Control Agreement.

 

“Commencement Date” means the date on which the applicable series or the Manager first pays any portion of the Initial Advisory Payment to the Client, at which time the Client’s obligation to pay the Brand Amount and the series’ obligation to provide Advisory Services commence. Where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the Initial Closing, the Commencement Date will be the date of such Manager advance. Where no Manager advance is used and the Initial Advisory Payment is payable in full upon the Initial Closing, the Commencement Date will be the date of the Initial Closing, which will occur when the series raises the Minimum Offering Amount necessary to make the payment under the applicable BAA.

 

“Company” means Agentiq Sports 1 Series LLC, a Delaware series limited liability company.

 

“Company Account” means the account designated by the series to receive the Brand Amount through automatic bi-weekly transfers from the Participation Account.

 

Designated Bank” means the bank or financial institution designated by the Client and reasonably acceptable to the series at which the Participation Account is maintained and which is a party to the Account Control Agreement.

 

“Effective Date” means the effective date of the applicable Brand Advisory Agreement, as specified therein.

 

“Escrow Agent” means North Capital Private Securities Corporation, acting as escrow agent for the series offerings.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Excluded Income” means all compensation, fees, royalties or other consideration for endorsements, sponsorships, personal appearances, speaking engagements, licensing of name, image or likeness, merchandising or other off-field commercial activities, and such other categories of income excluded from the definition of Brand Income under the applicable BAA.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

“Form 1-A” means the form of offering statement prescribed by the SEC for offerings under Regulation A.

 

iv

 

 

“Free Cash Flow” means, for any period, the net cash generated by a series from its operations, less any accrued and unpaid Operating Expenses of the series for such period, less any Operating Expense Reimbursement Obligations, and less such reserves as the Manager may deem appropriate for the series’ working capital and future expenses or liabilities, as further described in the Operating Agreement.

 

“Funded Amount” means, with respect to a series, the aggregate amount of the Initial Advisory Payment actually paid to the Client on or prior to the Outside Date.

 

“Good Reason” means, with respect to a Client’s voluntary cessation of participation in the Principal Business, a significant, documented injury, illness, or medical condition (including a documented mental-health condition) that renders the Client physically or mentally unable to continue performing in the Principal Business or that would pose a substantial risk of permanent harm to the Client’s physical or mental health beyond the ordinary risks of the profession.

 

“Initial Advisory Payment” means the cash payment made by a series to the applicable Client under the Brand Advisory Agreement, a portion of which may be funded from the proceeds of the applicable series offering, as further described herein and in the applicable BAA.

 

“Initial Closing” means, with respect to a series offering, the initial closing of such offering. Where the applicable series offering has a Minimum Offering Amount, the Initial Closing will take place on the later to occur of (i) the date subscriptions for the Minimum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the Initial Closing), the Initial Closing will take place on a date determined by the Manager in its sole discretion.

 

“LLC Act” means the Delaware Limited Liability Company Act, 6 Del. C. § 18-101 et seq., as amended.

 

“Maintenance Fee” means the annual fee payable by each series to the Manager for ongoing management and administration of the series, its business, its assets and the related Brand Advisory Agreement, as specified in the applicable Series Designation. The Maintenance Fee shall not accrue or become payable unless and until the series is generating revenues.

 

“Manager” means Agentiq Sports, Inc., a Delaware corporation, serving as the sole managing member of the Company and, unless otherwise specified in a Series Designation, the manager of each series.

 

“Manager Promissory Note” means a convertible promissory note issued by a series to the Manager in exchange for amounts advanced by the Manager to the series to fund series purposes, including funding all or a portion of the Initial Advisory Payment, Offering Expenses or Operating Expenses.

 

“Maximum Offering Amount” means, with respect to a series, the maximum aggregate dollar amount of Units that may be sold in such series’ offering, as set forth in the Series Offering Table.

 

“Minimum Offering Amount” means, with respect to a series, the minimum aggregate dollar amount of Units that must be sold in order for the initial closing of such series’ offering to occur, if any, as set forth in the Series Offering Table. Where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing, the applicable series offering may have no Minimum Offering Amount, in which case the initial closing may occur on a date determined by the Manager in its sole discretion without regard to any minimum subscription threshold.

 

“Negotiation Fee” means the one-time fee payable by each series to the Manager for services related to identifying, sourcing, structuring, negotiating, documenting and closing the applicable Brand Advisory Agreement, as specified in the applicable Series Designation.

 

“NIL” means name, image, or likeness.

 

“Offering Circular” means this offering circular, including all amendments and supplements hereto.

 

“Offering Expenses” means the costs and expenses incurred in connection with a series offering, including legal, accounting, escrow, filing, compliance and marketing costs, for which the Manager may be reimbursed by the applicable series in an amount not to exceed 2% of the gross offering proceeds of such series offering.

 

“Offering Statement” means the offering statement on Form 1-A filed by the Company with the SEC under Regulation A, of which this Offering Circular forms a part.

 

“Operating Agreement” or “operating agreement” means the Limited Liability Company Operating Agreement of Agentiq Sports 1 Series LLC, as amended, supplemented or restated from time to time.

 

v

 

 

“Operating Expenses” means the costs and expenses attributable to the activities of the Company related to a series, as further described in the Operating Agreement and herein.

 

“Operating Expense Reimbursement Obligation” means an agreement pursuant to which the Manager loans to a series an amount equal to excess Operating Expenses, on which the Manager may impose a reasonable rate of interest at a rate no less than the Applicable Federal Rate.

 

“Outside Date” means, with respect to a BAA, the earlier of (i) the date that is five (5) months following the Qualification Date and (ii) the date that is twelve (12) months following the Effective Date (or, with respect to an amended and restated BAA, the Restatement Date), as specified in the applicable BAA.

 

“Participation Account” means the dedicated deposit account maintained by the Client at the Designated Bank into which 100% of the Client’s Brand Income is to be deposited, subject to the Account Control Agreement.

 

“Platform” means the Agentiq Sports online investment platform located at [www.agentiqsports.com](http://www.agentiqsports.com), which is owned and operated by the Manager, through which the series offerings are conducted and investors manage their holdings.

 

“Prime Rate” means the prime rate as published in The Wall Street Journal or, if not so published, the prime rate as reasonably determined by the Manager.

 

Principal Business” means the Client’s primary professional occupation as a professional athlete in the applicable leagues specified in the BAA.

 

“Qualification Date” means the date on which the SEC issues a notice of qualification for the applicable series offering under Regulation A.

 

“Regulation A” means Regulation A promulgated under Section 3(b)(2) of the Securities Act of 1933, as amended.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Restatement Date” means the effective date of an amended and restated Brand Advisory Agreement, as specified therein.

 

“Revenue Share Trust” means a trust established for the benefit of the former members of the applicable series to receive Brand Percentage payments if the Client resumes active participation in the Principal Business after the end of the termination tolling period and the BAA has terminated.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Series Designation” means, with respect to a series, the written series designation executed by the Manager and appended to the Operating Agreement setting forth the specific terms of such series.

 

“Series Offering Table” means the table set forth on page viii of this Offering Circular summarizing key information related to the offering of each series.

 

“Term” means, with respect to a BAA, the period commencing on the Effective Date and continuing until the earlier of (i) two years after the Client’s official retirement or permanent cessation from actively engaging in the Client’s Principal Business (subject to automatic continuation if the Client resumes the Principal Business during such period) and (ii) the 25th anniversary of the Effective Date, unless earlier terminated in accordance with the BAA.

 

“Units” means the units of limited liability company membership interest in a series of the Company offered pursuant to this Offering Circular, representing denominations of the limited liability company interests in such series.

 

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The discussions and information in this Offering Circular may contain both historical and forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. Some of the statements under “Summary,” “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Description of Business” and elsewhere in this Offering Circular constitute forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms, or other comparable terminology. To the extent that the Offering Circular contains forward-looking statements regarding our business, please be advised that our actual financial condition, operating results, and business performance may differ materially from that projected or estimated by us in forward-looking statements.

 

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Offering Circular, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating the Company’s forward-looking statements. These factors include, among other things, the following considerations:

 

The Company has no operating history and an unproven business model, making it difficult to evaluate prospects and increasing the risk of loss.

 

Each series is economically tied to a single athlete, resulting in no diversification and a heightened risk that underperformance or early career termination leads to a total loss.

 

Future “Brand Income” is inherently unpredictable and excludes all off-field/endorsement income, limiting upside and potentially leading to materially lower than expected Brand Amount payments and resulting returns.

 

  Distributions may be delayed or withheld at the Manager’s discretion and there is no public market for Units, resulting in significant illiquidity.

 

Enforcing and collecting the agreed Brand Amount payment can be difficult due to assignment restrictions, counterparty failures, and potential costly disputes or litigation.

 

Changes in league rules, collective bargaining agreements, economic conditions, regulations, or tax laws could reduce athlete earnings and after-tax investor returns.

 

The Company faces competition for both athletes and investors, which could pressure deal terms and impair growth and returns.

 

Reliance on an online platform and third-party technology creates cybersecurity, data privacy, and operational risks that could disrupt offerings or harm reputation.

 

The series LLC structure is novel and may not be respected by all courts, and shared or unallocable expenses may be charged across series, diluting returns.

 

Investors have limited control and may find it difficult or impossible to remove the Manager, whose fees and affiliated transactions create inherent conflicts of interest.

 

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions, and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as may be required by law, to re-issue this Offering Circular or otherwise make public statements updating our forward-looking statements.

 

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SERIES OFFERING TABLE

 

The table below shows key information related to the offering of each series. Please also refer to “Use of Proceeds to Issuer” for further details.

 

Series Name  Series Asset  Offering Price per Unit   Minimum Offering Amount   Minimum Units   Maximum Offering Amount   Maximum Units   Opening Date   Closing Date   Status
Agentiq Sports 1 Series Ronny Cruz  Amended and Restated Brand Advisory Agreement with Ronny Cruz, dated as of June 11, 2026 (amending and restating the Brand Advisory Agreement originally dated May 12, 2026)  $100           $1,290,000    12,900                   Not Yet Open

 

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SUMMARY

 

This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Units. You should carefully read the entire Offering Circular, including the risks associated with an investment in a series discussed in the “Risk Factors” section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section above entitled “Cautionary Statement Regarding Forward-Looking Statements.

 

Overview

 

Agentiq Sports 1 Series LLC is a newly organized Delaware series limited liability company formed in November 2025 to enable public investment in a portion of professional athletes’ future on-field earnings through individual series that each acquire a single Brand Advisory Agreement (each, a “BAA” or the “Series Asset”). Each Brand Advisory Agreement entitles its series to a contractually defined share of the athlete’s future professional sports income (salary, bonuses, prize money), expressly excluding any off-field or endorsement income, and investors purchase non-voting Units of a specific series only. The debts and liabilities of each series are segregated under Delaware law, and Units represent an investment solely in the BAA owned by that series rather than in the company as a whole.

 

Under this model, each series provides the athlete with upfront capital (the “Initial Advisory Payment”) and ongoing brand advisory services in exchange for a fixed “Brand Percentage” of the athlete’s future on-field compensation, thereby aligning the athlete’s long-term career incentives with investor returns. Pursuant to the applicable Brand Advisory Agreement, the series, acting through the Manager and its affiliates, agents and service providers, will provide individualized advisory services designed to support the athlete’s personal brand development and enhance the athlete’s visibility, marketability and commercial opportunities. These services may include strategic brand positioning and image development, fan engagement strategies, social media growth initiatives, preparation for endorsements and sponsorship opportunities, marketing campaign development, content creation and broader public relations and reputation-building support. The scope and extent of these advisory services are commensurate with the full Initial Advisory Payment. In the event that, following the initial closing, the applicable series does not pay the full Initial Advisory Payment to the athlete — whether because the series’ offering does not raise the full amount or for any other reason — the series’ obligation to provide advisory services shall be reduced on a pro rata basis in proportion to the amount of the Initial Advisory Payment actually received by the athlete (the “Funded Amount”) relative to the full Initial Advisory Payment. By way of illustration, if the Funded Amount equals fifty percent (50%) of the full Initial Advisory Payment, the series would be obligated to provide advisory services at a level of effort, resource commitment and funding of brand-enhancement initiatives proportionate to fifty percent (50%) of the advisory services originally contemplated. The Manager will determine, in its reasonable discretion and in consultation with the athlete, the manner in which the scope of the advisory services will be adjusted to reflect any such proportional reduction, including the frequency of planning meetings, the budget for brand-enhancement initiatives and the breadth of services provided. For the avoidance of doubt, any such reduction in advisory services does not relieve the athlete of the obligation to pay the applicable Brand Percentage (or any adjusted Brand Percentage, as set forth in the Brand Advisory Agreement) on all qualifying on-field compensation earned during the term of the agreement.

 

Although the applicable series does not participate in any endorsement or other off-field income, the Company believes that strengthening an athlete’s personal brand may indirectly contribute to increased on-field earnings by enhancing the athlete’s profile, leverage and long-term career opportunities. The Manager expects to engage a combination of third-party marketing and public relations firms, together with in-house personnel, to deliver these services. The costs of providing such advisory services will be borne by the applicable series as operating expenses. There can be no assurance, however, that the provision of advisory services will have any material effect on the athlete’s earnings, performance or career trajectory, and any proportional reduction in the scope of services resulting from a partial funding of the Initial Advisory Payment may further limit the potential impact of such services.

 

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Offerings are conducted on a best-efforts basis under Tier 2 of Regulation A and facilitated on the Agentiq Sports online platform, with subscriptions processed electronically, funds held in escrow by North Capital until closing, and Andes Capital Group, LLC acting as registered broker-dealer of record for administrative and compliance functions.

 

The company is at an early stage with an unproven business model and proposed highly speculative, illiquid investments, and it qualifies as an “emerging growth company” under the JOBS Act. There is currently no public trading market for Units, and although the operating agreement permits the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series, investors should not assume that any ATS will be approved or available, that any Units will be listed or eligible for secondary trading, or that an active, liquid or sustained secondary market for the Units will develop. Series operations and revenues depend on signing suitable athletes to BAAs and the athletes’ future performance, and the Manager anticipates launching multiple series over the next 12–24 months, subject to market conditions and regulatory compliance.

 

The Company’s principal executive officers are located at 445 Bryant Street, San Francisco, CA 94107, and the Company’s phone number is (202) 918-2945. The Company’s website address is www.AgentiqSports.com. The information contained therein or accessible thereby shall not be deemed to be incorporated into this Offering Circular.

 

Our Series LLC Structure

 

Each series of our Company will enter into a Brand Advisory Agreement with an identified professional athlete.

 

As a Delaware series limited liability company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series are segregated and enforceable only against the assets of such series, as provided under Delaware law. 

 

We are offering units of limited liability company membership interest in each of the series of the Company (the “Units”), which represent denominations of the limited liability company interests in such series. All of the series of the Company offered hereunder may collectively be referred to herein as the “series” and each, individually, as a “series.” The Units of all series described above may collectively be referred to herein as the “Units” or “our securities” and each, individually, as a “Unit,” and the offerings of the Units may collectively be referred to herein as the “offerings” and each, individually, as an “offering.” See “Description of the Securities Being Offered” for additional information regarding the Units.

 

The Units represent an investment solely in a particular series and, thus, indirectly in the Brand Advisory Agreement owned by that series. The Units do not represent an investment in the Company or the Manager. We do not anticipate that any series will own anything other than the Brand Advisory Agreement associated with such series. We currently anticipate that the operations of the Company will benefit investors by allowing investors to build a diversified portfolio of investments.

 

A purchaser of the Units may be referred to herein as an “investor” or “Unit holder.” There will be one or more separate closings, each referred to as a closing, with respect to each offering. Where the applicable series offering has a Minimum Offering Amount, the initial closing of an offering will take place on the later to occur of (i) the date subscriptions for the Minimum Offering Amount for a series have been accepted and (ii) a date determined by Agentiq Sports, Inc. (the “Manager”) in its sole discretion, and subscription funds will be held in escrow pending achievement of that threshold. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), the initial closing will take place on a date determined by the Manager in its sole discretion, and subscription funds will not be held in escrow pending a minimum offering threshold. Once an initial closing for a particular series offering has occurred, we may conduct additional closings for that series until the earlier to occur of (i) the date subscriptions for the Maximum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion. If an initial closing has not occurred, an offering shall be terminated upon (i) the date which is one year from the date such Offering Circular or amendment thereof, as applicable, is qualified by the SEC, which period may be extended with respect to a particular series by an additional six months by our Manager in its sole discretion, or (ii) any date on which our Manager elects to terminate the offering for a particular series in its sole discretion, such date not to exceed the date which is 18 months from the date such Offering Circular or amendment thereof, as applicable, is qualified by the SEC. If a series offering is terminated without a closing, all investor funds will be returned promptly without interest or deduction. No securities are being offered by existing security-holders.

 

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Each offering is being conducted under Tier 2 Regulation A and the information contained herein is being presented in Offering Circular format. The Company is not offering, and does not anticipate selling, Units in any of the offerings in any state where Andes, its soliciting agent and executing broker, is not registered as a broker-dealer. Where the applicable series offering has a Minimum Offering Amount, the subscription funds advanced by prospective investors as part of the subscription process will be held in a non-interest-bearing escrow account with North Capital acting as escrow agent, and will not be commingled with the operating account of the series, until, if and when there is a closing with respect to that series. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), subscription funds will be transferred directly to the account of the applicable series upon acceptance of the subscription and closing, without being held in escrow pending a minimum offering threshold. See “Plan of Distribution and Subscription Procedure” and “Description of the Securities Being Offered” for additional information.

 

The Manager

 

The Company is managed by Agentiq Sports, Inc., a Delaware corporation and managing member of the Company, which we refer to herein as the Manager. Pursuant to the terms of the Company’s limited liability company operating agreement, which we refer to as the “operating agreement,” the Manager will provide certain management and advisory services to the Company and to each of its series and their subsidiaries, if any, as well as a management team and appropriate support personnel. 

 

Unless otherwise set forth herein with respect to a Series of the Company, during its operational phase, the Manager will receive from a series an annual maintenance fee equal to 0.5%-2.5% of the assets of that series. The Maintenance Fee shall not accrue or become payable unless and until the series is generating revenue from the Client. With respect to the Series RC offering described in this Offering Circular, the Maintenance Fee is two and one-half percent (2.5%) of all distributions to investors. this fee structure applies to this offering only and may differ for other series offerings. Additionally, pursuant to the operating agreement, the Manager will receive reimbursements for out-of-pocket expenses in connection with (i) our organization and offering (up to a maximum of 2% of the gross offering proceeds per series offering), (ii) our operations and (iii) third parties providing services to us. The series will also pay the Manager a Negotiation Fee consisting of (i) a percentage of the total capital that the series advances to the Client under the Brand Advisory Agreement, and (ii) reimbursement of any reasonable out-of-pocket expenses incurred by the Manager or series in negotiating and closing that Brand Advisory Agreement. The Manager reserves the right to waive any fees or reimbursements it is due in its sole discretion.

 

The Manager

 

The Company is managed by Agentiq Sports, Inc., a Delaware corporation and managing member of the Company, which we refer to herein as the Manager. Pursuant to the terms of the Company’s limited liability company operating agreement, which we refer to as the “operating agreement,” the Manager will provide certain management and advisory services to the Company and to each of its series and their subsidiaries, if any, as well as a management team and appropriate support personnel. 

 

Unless otherwise set forth herein with respect to a Series of the Company, during its operational phase, the Manager will receive from a series an annual maintenance fee equal to 0.5%-2.5% of the assets of that series. The Maintenance Fee shall not accrue or become payable unless and until the series is generating revenue from the Client. For the avoidance of doubt, with respect to the Series RC offering described in this Offering Circular, the Maintenance Fee is two and one-half percent (2.5%) of all distributions to investors, and this fee structure applies to this offering only and may differ for other series offerings. Additionally, pursuant to the operating agreement, the Manager will receive reimbursements for out-of-pocket expenses in connection with (i) our organization and offering (up to a maximum of 2% of the gross offering proceeds per series offering), (ii) our operations and (iii) third parties providing services to us. The series will also pay the Manager a Negotiation Fee consisting of (i) a percentage of the total capital that the series advances to the Client under the Brand Advisory Agreement, and (ii) reimbursement of any reasonable out-of-pocket expenses incurred by the Manager or series in negotiating and closing that Brand Advisory Agreement. The Manager reserves the right to waive any fees or reimbursements it is due in its sole discretion. The items of compensation are summarized in the table on page 67. See “Management-Management Compensation.”

 

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Operating Expenses

 

Each series of the Company will be responsible for the costs and expenses attributable to the activities of the Company related to such series (the “Operating Expenses”) including, but not limited to:

 

any and all fees, costs and expenses incurred in connection with the management of a Series Asset and preparing any reports and accounts of each series, including, but not limited to, audits of a series annual financial statements, tax filings and the circulation of reports to investors;

 

any and all insurance premiums or expenses;

 

any withholding or transfer taxes imposed on the Company or a series or any of the members;

 

any governmental fees imposed on the capital of the Company or a series;

 

any legal fees and costs (including settlement costs) arising in connection with any litigation or regulatory investigation instituted against the Company, a series, or relating to legal advice directly relating to the Company’s or a series’ legal affairs;

 

any fees, costs and expenses of a third-party registrar and transfer agent appointed by the Managing Member in connection with a series;

 

any indemnification payments;

 

any costs, fees, or payments related to interest or financing expenses for a given series;

 

the costs of any third parties engaged by the Managing Member in connection with the operations of the Company or a series; and

 

any similar expenses that may be determined to be Operating Expenses, as determined by the Managing Member in its reasonable discretion.

 

The Manager will bear its own overhead and operating expenses.

 

Transferability

 

The Manager may refuse a transfer by a Unit holder of its Units in a series if such transfer would result in (a) there being more than 2,000 beneficial owners in such series or more than 500 beneficial owners that are not “accredited investors,” (b) the assets of a series being deemed plan assets for purposes of ERISA, (c) a change of U.S. federal income tax treatment of the Company and/or a series, or (d) the Company, any series, the Manager, or its affiliates being subject to additional regulatory requirements. Furthermore, as the Units are not registered under the Securities Act, transfers of Units may only be effected pursuant to exemptions under the Securities Act and permitted by applicable state securities laws. The operating agreement permits, but does not require, the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series, and an ATS Transfer effected through an ATS approved by the Manager is not subject to certain otherwise applicable transfer restrictions under the operating agreement, including the Manager’s consent requirement, prior notice requirements, and any right of first refusal, lock-up or similar restriction that may be included in a Series Designation. Any ATS Transfer remains subject to applicable securities laws, the rules and procedures of the ATS, the Company’s transfer agent arrangements, and any eligibility, documentation, settlement, trading, transfer agent, anti-money laundering, sanctions, investor suitability, tax, regulatory, or other conditions or procedures that the Manager may establish. See “Description of the Securities Being Offered — Restrictions on Ownership and Transfer” and “Description of the Securities Being Offered — Secondary Trading; Alternative Trading System” for more information.

 

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Distribution Rights

 

The Manager has sole discretion in determining what distributions, if any, are made to Unit holders except as otherwise limited by law or the operating agreement. The Manager will determine the timing and amount of distributions for each series in accordance with the operating agreement and the applicable Series Designation, which will set forth the periodic basis on which Free Cash Flow is determined and distributed for that series. The Manager may change the timing of distributions or determine that no distributions shall be made, in its sole discretion. See “Description of the Securities Being Offered — Distribution rights.”

 

Mandatory Arbitration and Class Action Waiver

 

The Operating Agreement requires, to the fullest extent permitted by law, that disputes arising out of or relating to the Operating Agreement, the formation, governance, management, operations, capitalization or dissolution of the Company or any series, or the rights, duties or relationships among the Company, any series, the Manager, any member or their respective affiliates in such capacities, be resolved exclusively by binding arbitration administered by the American Arbitration Association under the Federal Arbitration Act and the AAA Commercial Arbitration Rules. Arbitration will generally be conducted before a single neutral arbitrator, unless all parties to the dispute agree in writing to a three-arbitrator panel, and the seat and venue of arbitration will be Wilmington, Delaware, although hearings may be conducted remotely at the election of the arbitrator after conferring with the parties. By acquiring interests, investors waive the right to a jury trial and to litigate covered disputes in court, except for limited provisional remedies in Delaware courts and any claim or remedy that applicable law does not permit to be subject to mandatory arbitration. The Operating Agreement also requires disputes to proceed on an individual basis only and prohibits class, collective, private attorney general, derivative on behalf of other members and other representative proceedings, subject to limited exceptions required by non-waivable law. These provisions are not intended to waive compliance with the U.S. federal securities laws or any substantive rights or remedies available under those laws. See “Risk Factors — Risks Related to This Offering and Ownership of Our Units — The Operating Agreement requires mandatory arbitration of disputes and includes a waiver of jury trial, which may limit your ability to pursue claims in court and could affect the outcome, cost and remedies available to you,” “Risk Factors — Risks Related to This Offering and Ownership of Our Units — The class action waiver in the Operating Agreement may prevent investors from pursuing claims on a class, collective or representative basis, which could make small or diffuse claims more difficult or costly to pursue,” and “Risk Factors — Risks Related to This Offering and Ownership of Our Units — The Operating Agreement includes mass arbitration procedures and confidentiality requirements that may affect the timing, cost and transparency of dispute resolution” for more information.

 

Exclusive Forum

 

For legal actions or proceedings that are not subject to mandatory arbitration, and for court proceedings related to or in support of arbitration, the Operating Agreement generally requires proceedings to be brought in Delaware courts, subject to applicable federal securities laws and any written consent by the Manager to an alternative forum. The Operating Agreement also provides that Delaware law governs the Operating Agreement and the rights of the parties, subject to applicable federal law and any non-waivable requirements of the Delaware Limited Liability Company Act. These provisions may limit investors’ ability to select a judicial forum or procedural posture that they view as favorable. See “Risk Factors — Risks Related to This Offering and Ownership of Our Units — Delaware governing law and exclusive forum provisions may limit where investors can bring non-arbitrable claims and related court proceedings” for more information.

 

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SUMMARY RISK FACTORS

 

We are subject to a number of risks and uncertainties, which are described more fully in the section titled “Risk Factors.” These risks include, among others, the following:

 

Risks Related to Our Business and Industry

 

We are an early-stage company with no operating history and an untested model, which makes this a highly speculative investment.

 

Our pipeline, pricing, and timing depend on our ability to sign athletes to BAAs on acceptable terms, which may not be achievable.

 

Each series is tied to the career outcomes of a single athlete, creating concentrated exposure to unpredictable events.

 

Investors will not share in any of the Client’s off-field income or endorsements, which limits the upside of your investment and may misalign incentives.

 

Payment mechanics and security interests may not perform as intended under league, union, or state-level constraints.

 

Risks Related to Government Regulation

 

Regulatory and stakeholder scrutiny could limit or prohibit income-sharing structures, payment mechanics, or marketing channels.

 

The tax treatment of the Units is complex and distributions may be subject to corporate-level taxation that reduces amounts available for distribution.

 

Risks Related to Conflicts of Interest

 

Our Manager earns fees and expense reimbursements from each series regardless of performance, creating conflicts of interest with investors.

 

The Manager’s Negotiation Fee, which is tied to the Initial Advisory Payment made to a Client, may incentivize the Manager to agree to less favorable deal terms for the series.

 

Our Manager may act in its own interests and has eliminated fiduciary duties to the fullest extent permitted by law, which may result in decisions that are adverse to us, a series or holders of Units.

 

Risks Related to this Offering and Ownership of Our Units

 

Series LLC liability shields are not guaranteed to be upheld in all jurisdictions or in bankruptcy.

 

There is no public market for our Units, the Manager is not required to approve or maintain any ATS for secondary trading, and you may not be able to sell or transfer your investment for an indefinite period of time.

 

Distributions, if any, will vary and may be delayed, reduced, or suspended.

 

The Operating Agreement requires mandatory arbitration of disputes and includes a waiver of jury trial, which may limit your ability to pursue claims in court and could affect the outcome, cost and remedies available to you.

 

It may be difficult or impossible for the investors to remove the Manager, even if you are dissatisfied with its performance.

 

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OFFERING SUMMARY

 

Securities Being Offered:  

We are offering the maximum number of Units of each series at a price per Unit set forth in the “Series Offering Table” above.

 

The offering is being conducted on a “best efforts,” basis. Each series is intended to be a separate series of the Company for purposes of accounting for assets and liabilities. See “Description of the Securities Being Offered” for further details. The Units will be non-voting except with respect to certain matters set forth in our operating agreement. The purchase of Units in a particular series is an investment only in that series and not an investment in the Company as a whole.

     
Offering Price per Unit:   As stated in the Series Offering Table above.
     
Minimum Offering Amount per Series:   As stated in the Series Offering Table above, if any.
     
Maximum Offering Amount per Series:   As stated in the Series Offering Table above.
     
Minimum Subscription:   The minimum subscription by an investor in any series is one (1) Unit, for $100.
     
Broker:   We have entered into an agreement with Andes Capital Group, LLC, which is acting as our soliciting agent and executing broker in connection with our series offerings. Andes is a broker-dealer registered with the SEC and which will be registered in each state where our series offerings will be made prior to the launch of each such offering and with such other regulators as may be required to execute the sale transactions and provide related services in connection with our series offerings. Andes is a member of the Financial Industry Regulatory Authority, Inc., or FINRA, and the Securities Investor Protection Corporation, or SIPC. 
     
Broker Fees:   We will be paying Andes a Broker Fee equal to 1% of the amount raised through each series offering. Notwithstanding the foregoing, Andes will not receive any fee on funds raised from the sale of any Units to the Manager, its affiliates or the sellers of any of the Units. See “Plan of Distribution” for other fees to be paid to the Broker.
     
Investment Qualifications:  

Each investor must be a “qualified purchaser.” See “Plan of Distribution and Subscription Procedure — Investor Suitability Standards” for further details. The Manager may, in its sole discretion, decline to admit any prospective investor, or accept only a portion of such investor’s subscription, regardless of whether such person is a “qualified purchaser.”  Furthermore, the Manager anticipates only accepting subscriptions from prospective investors located in states where Andes is registered.

 

Generally, no sale may be made to you in any of our series offerings if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

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Escrow account:  

Where the applicable series offering has a Minimum Offering Amount, the subscription funds advanced by prospective investors as part of the subscription process will be held in a non-interest-bearing escrow account with North Capital, acting as the Escrow Agent, and will not be commingled with the operating account of any series, until if and when at least the applicable Minimum Offering Amount has been raised and there is an initial closing with respect to that series. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), subscription funds will be transferred directly to the account of the applicable series upon acceptance of the subscription and closing, without being held in escrow pending a minimum offering threshold.

 

When the Escrow Agent has received instructions from the Manager that an offering will close and the investor’s subscription is to be accepted (either in whole or part), the Escrow Agent will disburse such investor’s subscription proceeds in its possession to the account of the applicable series.

 

If any offering is terminated without a closing, or if a prospective investor’s subscription is not accepted or is cut back due to oversubscription or otherwise, such amounts placed into escrow by prospective investors will be returned promptly to them without interest or deduction.  Any costs and expenses associated with a terminated offering will be borne by our Manager.

     
Offering period; Closings:   There will be at least one separate closing with respect to each series offering. Where the applicable series offering has a Minimum Offering Amount, the initial closing of a series offering will take place on the later to occur of (i) the date subscriptions for the Minimum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion, and subscription funds will be held in escrow pending achievement of that threshold. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), the initial closing will take place on a date determined by the Manager in its sole discretion, and subscription funds will not be held in escrow pending a minimum offering threshold. Once an initial closing for a particular series offering has occurred, we may conduct additional closings for that series until the earlier to occur of (i) the date subscriptions for the Maximum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion. If an initial closing of a particular series has not occurred, an offering shall be terminated upon (i) the date which is one year from the date the Offering Circular related to such series, or amendment thereof, as applicable, is qualified by the SEC, which period may be extended with respect to that series by an additional six months by our Manager in its sole discretion, or (ii) any date on which our Manager elects to terminate the offering for that series in its sole discretion, such date not to exceed the date which is 18 months from the date such Offering Circular related to that series or amendment thereof, as applicable, is qualified by the SEC. If a series offering is terminated without a closing, all investor funds will be returned promptly without interest or deduction.

 

Fees and Expenses   Each series is expected to pay, either from the offering proceeds of its series offering or from its revenues, the following fees and expenses:

 

Broker Fee: A Broker Fee equal to 1% of the amount raised through an offering. Notwithstanding the foregoing, Andes will not receive any fee on funds raised from the sale of Units to the Manager or its affiliates;

 

Initial Advisory Payment: A cash payment to the Client under the applicable Brand Advisory Agreement, a portion of which may be funded from the proceeds of the applicable series offering. Under the form BAA, the Initial Advisory Payment may be funded in one or more tranches, with an initial amount paid within thirty (30) days following the Effective Date and the remaining balance guaranteed by the series and payable by the Outside Date. The “Outside Date” under the form BAA means the earlier of (i) the date that is five (5) months following the date on which the SEC issues a notice of qualification for the series offering under Regulation A (the “Qualification Date”) and (ii) the date that is twelve (12) months following the Effective Date. The remaining balance may be funded from the proceeds of the series offering; to the extent the series offering does not generate sufficient proceeds to pay the remaining balance in full by the Outside Date, the series is obligated to pay any shortfall from its own funds. The Commencement Date occurs when the applicable series or the Manager first pays any portion of the Initial Advisory Payment to the Client, and the Client’s obligation to pay the Brand Amount and the series’ obligation to provide Advisory Services commence at that time. If the full Initial Advisory Payment has not been paid by the Outside Date, the form BAA automatically fixes the Initial Advisory Payment at the amount actually paid to the Client on or before the Outside Date and adjusts the Brand Percentage on a pro rata basis to reflect the ratio of the amount actually paid (the Funded Amount) to the originally contemplated Initial Advisory Payment. Neither party has any right to terminate the BAA solely on account of the failure of the Initial Closing or the Qualification Date to occur by the Outside Date;

 

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Negotiation Fee: Each series will pay the Manager a one-time Negotiation Fee for services related to identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement with the designated Client for that series. The Negotiation Fee is expected to be between 4% and 8% of each series’ Initial Advisory Payment, and covers the Manager’s associated out-of-pocket costs incurred to consummate the transaction. Without limiting the foregoing, the Negotiation Fee includes (i) sourcing activities, including outreach to Clients and their representatives and evaluation of potential opportunities; (ii) fees and expenses payable to a Client’s agent or intermediary that are incurred in connection with sourcing, negotiating or closing the Brand Advisory Agreement; and (iii) customary deal expenses reasonably incurred by the Manager in connection with negotiation and closing of the Brand Advisory Agreement, including travel and lodging, diligence and background checks, third-party research, legal and documentation costs, and closing-related technology or data-room charges. For clarity, amounts treated as Offering Expenses, such as broker-dealer fees, marketing, escrow, EDGAR/filing and blue-sky/compliance costs, are not included in the Negotiation Fee and remain subject to the separate cap applicable to Offering Expenses. The Negotiation Fee will be determined as (i) a percentage of the Initial Advisory Payment, and (ii) reimbursement of any reasonable out-of-pocket expenses incurred by the Manager or series in negotiating and closing that BAA. The exact percentage and amount of the Negotiation Fee for each series will be specified in the Series Designation. This fee will typically be paid out of the proceeds of the series’ offering at closing as part of the use of funds, reducing the net proceeds available for the Client’s Initial Advisory Payment and other purposes.

 

Offering Expenses: Each series may reimburse the Manager for Offering Expenses (defined below) actually incurred in connection with a series offering in an amount up to 2% of gross offering proceeds. In general, these costs include legal, accounting, escrow, underwriting, filing, compliance and marketing costs, as applicable, related to a specific offering; and

 

  Maintenance Fee: The Maintenance Fee will be an annual fee payable by each Series to the Manager as specified in the Series Designation for ongoing management and administration of the Series and the related Brand Advisory Agreement, which fee shall be paid in such intervals as specified in the Series Designation. For planning purposes, the Maintenance Fee is expected to be a fixed amount or a percentage of the series’ assets , expected to range from 0.5% to 2.5% of series assets,, designed to reasonably reimburse the Manager for the time and resources devoted to that series. The Maintenance Fee shall not accrue or become payable unless and until the series is generating revenue from the Client.

 

    The Manager will be responsible for all offering expenses on behalf of each series and may be reimbursed by the series (except with respect to commission-based broker fees which will be paid directly by the series) through the proceeds of the series offering for offering expenses actually incurred in an amount up to 2% of gross offering proceeds. Each series will be responsible for its Acquisition Expenses which it will pay out of the proceeds of its offering and will reimburse the Manager for such costs as well as for certain other costs. See “Use of Proceeds,” “Management — Reimbursement of Expenses” and “Plan of Distribution and Subscription Procedure” for further details.

 

Risk Factors:   Investing in the Units of a particular series involves risks. See the section entitled “Risk Factors” in this Offering Circular and other information included in this Offering Circular for a discussion of factors you should carefully consider before deciding to invest in our Units.

 

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RISK FACTORS

 

An investment in our Units involves a high degree of risk. The SEC requires that we identify risks that are specific to our business and our financial condition. You should carefully consider the following risk factors and the other information in this Offering Circular before investing in our securities. Our business and results of operations could be seriously harmed by any of the following risks. The risks set out below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. If any of the following risks actually occur, our business, reputation, financial condition, results of operations, revenue and future prospects could be materially adversely affected and you could lose all or part of your investment in the Units. In such case, the value of our securities could decline, and you may lose all or part of your investment.

 

Risks Related to Our Business and Industry

 

We are an early-stage company with no operating history and an untested model, which makes this a highly speculative investment.

 

We are a newly formed company with no operating history, and our business model is unproven. As of the date of this offering, we have not closed any series or executed any Brand Advisory Agreements, and our ability to identify Clients, raise capital, collect Brand Amount payments, and make distributions is highly uncertain. Our concept depends on sustained investor interest under Regulation A, continued access to service providers (such as escrow, broker-dealer, and payment rails), and market acceptance by athletes and their representatives, any of which may not materialize or could take longer than expected. If we fail to launch initial series or demonstrate the viability of our model, we may be unable to achieve scale, cover fixed costs, or continue operations. An investment in any series is speculative and you should be prepared to lose your entire investment.

 

Our pipeline, pricing, and timing depend on our ability to sign athletes to BAAs on acceptable terms, which may not be achievable.

 

Our strategy depends on identifying and contracting with suitable athletes; if we cannot execute Brand Advisory Agreements on attractive terms, we may never commence revenue-generating operations. Competition from traditional financing, agencies, competitors with similar products, or athlete preferences may limit our pipeline, delay launches, or force us to offer unfavorable terms that impair returns. Even when athletes are interested, each series depends on sufficient investor subscriptions and successful closings; failed or delayed raises could nullify term sheets, damage relationships, and waste sourcing costs borne at the Manager level. Shifted labor markets, agent priorities, or league policy changes may also dampen athlete appetite for our structure, requiring us to spend more on sourcing and accept thinner economics. In certain leagues, BAAs or payment directions may require approvals, acknowledgements, or compliance with collective bargaining or agent regulations; failure to obtain or maintain such approvals could delay or prevent execution or enforcement.

 

Each series is tied to the career outcomes of a single athlete, creating concentrated exposure to unpredictable events.

 

The success of each series depends heavily on the uncertain future performance, health, career duration and compensation of a single Client. Injuries, contract disputes, performance declines, early retirement, league suspensions, or changes in depth chart status can materially reduce Client Brand Income and adversely affect returns to investors in the related series. League labor disruptions, changes to salary caps or rookie wage scales, demotions, or periods without a team contract can cause Brand Income to decline sharply or cease altogether. You will not share in any off-field or endorsement earnings, limiting upside and potentially misaligning incentives if the Client focuses on non-Brand Income opportunities. Clauses in player contracts, including morality, injury and conduct provisions, may eliminate salary guarantees or reduce incentive eligibility, compounding the adverse effect on Brand Income.

 

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Professional baseball careers are often short and unpredictable, which may limit the period during which a Client can generate Brand Income and may materially reduce the likelihood that investors recover their investment.

 

Our business model depends on the ability of Clients to generate Brand Income over time. In the case of professional baseball Clients, Brand Income generally includes salary, signing bonuses, performance bonuses, prize or award money and other covered on-field compensation earned in the Client’s Principal Business, to the extent included in the applicable Brand Advisory Agreement, and excludes endorsement, sponsorship, appearance, licensing, merchandising and other off-field commercial income. The period during which a professional baseball Client may generate meaningful Brand Income may be short and unpredictable. Professional baseball careers are subject to significant attrition, including failure to advance through the minor-league system, failure to reach the major leagues, injuries, performance decline, roster constraints, changes in organizational priorities, competition from other players and other factors outside the control of the Client, the Company, the Manager or any series.

 

Published analyses of Major League Baseball career length have estimated that the average major-league career is approximately 4.8 to 5.6 years, depending on the population and methodology used. One study reported an average career expectancy of approximately 5.6 years for players who reach the major leagues, while a separate SABR analysis reported an average career length of approximately 4.8 years for players who have appeared in the major leagues. In addition, a player generally must accrue six years of Major League service time to become eligible for free agency, and one year of Major League service time generally requires 172 days on a Major League roster or Major League injured list during a championship season. As a result, many professional baseball players may never reach free agency, may not remain employed long enough to earn arbitration-level or free-agent-level compensation, and may generate materially less Brand Income than the Manager anticipates.

 

This risk is heightened for our series that depend on the career outcomes of a single professional baseball player. A Client may spend several years in the minor leagues before reaching the major leagues, if the Client reaches the major leagues at all. Although covered minor-league compensation may constitute Brand Income under the applicable Brand Advisory Agreement, minor-league compensation is generally expected to be substantially lower than major-league compensation. Accordingly, if a Client remains in the minor leagues for an extended period, has only a brief major-league career, does not become arbitration eligible, does not reach free agency, or experiences injury, performance decline or other adverse career developments, the related series may receive only limited Brand Amounts.

 

Because investors’ ability to recover their investment depends on the applicable series’ receipt of Brand Amounts, the payment of series expenses and the availability of Free Cash Flow for distribution, a short or lower-earning professional baseball career may materially delay, reduce or eliminate investor distributions. Even if a Client reaches the major leagues, the Client may not remain employed at the major-league level for a period sufficient to generate Brand Income necessary for investors to recover their initial investment. If the Client’s professional baseball career is shorter than expected or earnings are materially lower than projected, investors in the applicable series may lose all or a substantial portion of their investment.

 

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Investors will not share in any of the Client’s off-field income or endorsements, which limits the upside of your investment and may misalign incentives.

 

Under each Brand Advisory Agreement, our series only receives a share of the athlete’s Brand Income, which is strictly limited to compensation earned from playing or participating in the sport (such as team salaries, game winnings, or performance bonuses). Importantly, this means that any money the Client earns outside of their on-field activities – including endorsement deals, sponsorships, appearances, licensing of their name/image, or other business ventures – is entirely excluded from the series’ income. As a result, even if a Client achieves substantial fame or commercial success off the field, investors in the series will not benefit from those earnings. This cap on the income stream limits the potential returns on your investment. It is possible that a Client’s off-field earnings could far exceed their on-field earnings (for example, through lucrative endorsements), yet the series would have no claim to that revenue. In addition, the Client’s interests are not fully aligned with investors in this respect: the athlete retains 100% of their off-field income, which could reduce their motivation to maximize on-field earnings or continue a sports career solely for financial reasons. While the Brand Percentage arrangement is designed to align with on-field performance, the exclusion of other income streams creates a risk that the athlete’s financial incentives diverge from the series’ interests.

 

Third-party infrastructure failures could interrupt core operations and investor communications.

 

Our reliance on third-party technology and cloud providers introduces availability and security risks. Software defects, vendor outages, integration failures, or cloud interruptions could disrupt offerings, reporting, or distributions and could damage our reputation and financial condition. As a lean organization, we may have limited redundancies and in-house IT depth to mitigate prolonged incidents.

 

Cybersecurity incidents could compromise data, invite regulatory scrutiny, and depress investor demand across series.

 

A cybersecurity breach could expose sensitive investor data or financial information, trigger mandatory notifications, and lead to regulatory investigations, litigation, and reputational harm. Security incidents at us or our vendors could reduce investor trust and participation in current or future series. Incident response and remediation can be costly and divert management attention from sourcing and operating series. 

 

Insurance coverage may be unavailable or insufficient for key risks.

 

Insurance for cyber incidents, IP claims, D&O, E&O, employment, or event-related losses may have exclusions, sub-limits, or high deductibles and may not fully cover losses, defense costs, or adverse judgments, increasing volatility in series outcomes. 

 

We may experience constraints on liquidity, access to capital, and sensitivity to interest rates.

 

Our ability to finance operations, launch new series, or bridge timing differences between Brand Amount payment receipts and distributions may depend on capital availability. Tighter credit markets, rising rates, or covenant restrictions could limit growth or require us to delay offerings, reduce reserves, or curtail operations. 

 

Adverse macroeconomic or public health events could depress demand, delay offerings, and impair operations.

 

Macroeconomic conditions, market disruptions, and public health events may reduce investor demand, complicate offering execution, and increase operating friction. Periods of market stress or pandemic-related disruptions may slow capital formation, delay closings, or increase costs to operate, manage vendors, or communicate with investors. Volatility in financial markets can also increase our cost of capital or reduce availability of critical vendors, affecting our ability to source and launch series. 

 

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Disputes with Clients or third parties may be protracted, expensive, and reduce cash available for distribution.

 

We may be involved in disputes or enforcement actions that are costly and uncertain. Contract enforcement with Clients, disputes regarding Brand Amount payment calculations, or third-party claims could require significant time and expense and could result in delays, settlements, or losses not fully recoverable from counterparties. Arbitration or litigation may require specialized counsel and expert analysis of compensation records, increasing costs and uncertainty. 

 

Payment mechanics and security interests may not perform as intended under league, union, or state-level constraints.

 

Even with direct-pay instructions and UCC filings, practical enforcement may be limited. Team payroll systems, league or union rules, and state law limitations on assignment or garnishment can hinder or delay payment flows. The priority, scope, and enforceability of security interests in Brand Income may vary and may not fully protect a series. In contested scenarios, we may face competing claims or need court intervention to perfect or realize on collateral. 

 

Inconsistent or incomplete public data can impede reconciliation and increase reliance on Client cooperation.

 

Documentation asymmetry and reliance on public sources may create verification gaps. Publicly reported compensation may omit bonuses, incentives, or non-standard payments; reconciling public data with actual receipts may require cooperation and documentation from the Client that may not be promptly available. Where deductions are permitted by the BAA, additional documentation may be necessary to validate net Brand Income amounts.

 

Cancellations, postponements, or format changes to games and events can diminish Brand Income and marketing value.

 

Force majeure events, public health concerns, safety incidents, travel restrictions, or venue issues may cancel or modify seasons, games, or appearances that affect player compensation triggers and the efficacy of brand campaigns, reducing expected cash flows. 

 

Labor actions, strikes, or lockouts can reduce or postpone athlete compensation and disrupt campaigns.

 

Collective bargaining negotiations or labor disputes in professional leagues and player associations can lead to work stoppages, schedule changes, or rules that reduce or defer compensation, directly reducing Brand Income and limiting marketing opportunities. 

 

Technology and vendor dependencies introduce operational and cybersecurity risks that could disrupt offerings and harm investors.

 

We rely on an online platform and third-party vendors; operational failures or cybersecurity incidents could disrupt offerings, compromise investor data, or delay distributions. Platform outages, payment processing failures, vendor downtime, or cyberattacks could cause reputational damage, regulatory exposure, and financial losses, and could materially impair our operations and investor confidence. Mandatory breach notifications, remediation costs, and potential regulatory inquiries could further strain resources, and mere perception of security weaknesses could reduce demand for our offerings.

 

Reputational harm, brand safety incidents, or public controversies involving us or a Client could materially damage our business.

 

Our platform, brand partners, and investor demand are sensitive to reputation. Athlete or Company controversies, social media incidents, allegations of misconduct, political speech, or brand-safety concerns can trigger sponsor pullbacks, platform restrictions, or consumer backlash that reduce demand, constrain new Client sourcing, or force us to terminate campaigns. Third parties may amplify negative narratives online, and content-moderation or platform policy changes can limit the reach of campaigns and our marketing channels.

 

Our small team depends on a limited number of key personnel with specialized industry relationships.

 

We rely on a lean management team and a few employees and advisors with athlete, agent, and league relationships. Loss of any such personnel, difficulty in recruiting or retaining experienced sports/entertainment, compliance, or technology staff, or constraints imposed by non-compete and non-solicitation obligations could impair sourcing, negotiations, compliance, and operations for extended periods.

 

Failure to achieve scale could leave per-series costs elevated and erode investor returns for an extended period.

 

We may lack the scale necessary to realize operating efficiencies, resulting in higher per-series costs for an extended period. If we are unable to launch a sufficient number of series, we may not achieve the economies of scale required to reduce unit costs of technology, compliance, and operations, which could depress returns. Persistent fixed costs (including platform, audit, legal and compliance) could consume a disproportionate share of Brand Amount payments in early series, delaying or eliminating distributions.

 

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We face intense competition from established agencies, lenders, collectives, and new market entrants for athlete relationships and sponsor dollars.

 

Larger, well-capitalized competitors may offer athletes more favorable economics, bundled services, advances, or cross-promotional benefits. They may also leverage long-standing relationships with teams, leagues, and sponsors to steer opportunities away from us. Competitive pressure can increase our sourcing costs, compress margins, delay closings, and reduce available Brand Amount payments.

 

Assumptions regarding a Client’s potential to generate Brand Income may prove inaccurate, and investors should not rely on any expectation regarding the timing or likelihood of advancement to, or participation in, any qualifying professional league or competition.

 

In connection with any series, the Manager may consider assumptions and judgments concerning a Client’s athletic development, professional opportunities and potential to earn qualifying compensation in a qualifying professional league or competition. Any such assumptions are inherently subjective and speculative, may be based on incomplete or rapidly changing information, and could prove to be materially incorrect. There can be no assurance that any Client will be promoted, signed, retained, remain healthy, continue to perform at a level necessary to earn qualifying compensation, or generate any Brand Income within any expected period or at all. Because compensation earned in certain leagues, levels, assignments or activities may be excluded from Brand Income under the applicable Brand Advisory Agreement, investors may not receive any return unless and until the Client earns compensation that constitutes Brand Income under that agreement. As a result, if assumptions regarding a Client’s career trajectory or earning potential are wrong, investors could lose all or a substantial portion of their investment.

 

Even robust payment and enforcement provisions may not prevent shortfalls, delays, or losses.

 

Contractual mechanisms may not fully assure timely or complete payment. Although the BAA includes payment instructions, reporting obligations, audit rights, and a security interest in Brand Income, practical or legal constraints could limit enforcement, and delays or underpayments may occur that we cannot fully prevent or recover. Enforcement may require costly and uncertain litigation or arbitration against the Client or third-party payors, and insolvency or bankruptcy of a Client could further impair recoveries. Payment instructions may be subordinated or delayed by league, union, or team payroll constraints, and security interests may require court intervention to perfect or enforce. In addition, setoff rights, counterclaims, or anti-assignment provisions in underlying agreements, and the automatic stay in bankruptcy, may delay or prevent collection despite contractual remedies; perfection and priority of security interests under the UCC can vary by jurisdiction and may necessitate additional filings or court relief.

 

Remedies tied to termination, suspension, or reinstatement may be delayed, disputed, or uncollectible.

 

Termination, suspension, or reinstatement provisions may not adequately protect a series. While BAAs may include clawbacks and reinstatement rights if a Client voluntarily ceases and then resumes their career, the timing, collectability, and enforceability of such remedies are uncertain and may vary by jurisdiction or fact pattern, leading to losses even where remedies exist on paper. Insurance, where available, may not fully offset losses from death or disability, and the costs of pursuing remedies may exceed potential recovery.

 

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If a Client voluntarily ceases participation in the Client’s Principal Business, Brand Income may stop and contractual remedies may not be sufficient for investors to recover their investment.

 

Under the form BAA, if a Client voluntarily ceases to engage in the Client’s Principal Business before the fifth anniversary of the Effective Date, other than for Good Reason, the Client must repay to the applicable series, as liquidated damages, an amount equal to the aggregate Initial Advisory Payment actually received by the Client, plus interest, minus Brand Amount payments actually made by the Client to the series before the early cessation. This remedy is intended to protect the series if a Client voluntarily stops participating in the Client’s Principal Business during the early years of the BAA. However, the remedy may be disputed, delayed, difficult to collect or unavailable in full, and there can be no assurance that any repayment would be sufficient for investors to recover their investment after payment of expenses, reserves and other series-level obligations.

 

The form BAA does not provide the same liquidated damages repayment right if a Client voluntarily ceases to engage in the Client’s Principal Business on or after the fifth anniversary of the Effective Date, although the series retains rights to Brand Income earned during the Term and any rights that survive expiration or termination. If a Client voluntarily ceases participation after that five-year period, or if the Client ceases participation for Good Reason, the series may receive little or no additional Brand Income unless and until the Client resumes participation in the Client’s Principal Business or otherwise earns covered compensation. The BAA term generally continues until the earlier of two years after the Client’s official retirement or permanent cessation from actively engaging in the Principal Business, subject to automatic continuation if the Client resumes the Principal Business during that two-year termination tolling period, and the 25th anniversary of the Effective Date. If the Client resumes active participation in the Principal Business after the end of the termination tolling period and the BAA has terminated, the BAA may require Brand Percentage payments to a Revenue Share Trust for the former members of the applicable series, but those rights may be difficult to administer, enforce or collect.

 

As a result, a Client’s voluntary retirement, resignation, career change or other cessation of participation in the Client’s Principal Business may materially reduce or eliminate Brand Amount payments to the related series. This risk is particularly significant if the Client has not yet generated substantial Brand Income, if the Client’s career is short, if the Client does not reach a compensation level sufficient to produce meaningful Brand Amounts, or if any repayment, trust or other post-cessation remedy is delayed, disputed or uncollectible. In those circumstances, the related series may not generate sufficient Free Cash Flow to make distributions, and investors may lose all or a substantial portion of their investment.

 

Limited transparency into non-public compensation and deductions can create verification gaps and disputes.

 

We depend on accurate, timely reporting from Clients, and on our right to review underlying records. Even with semi-annual reporting and audit rights, we may have limited visibility into non-public compensation or timing differences, which can cause disputes, delays, or shortfalls in Brand Income and could increase costs to verify or enforce compliance. Public sources may omit bonuses, deferred comp, or non-standard payments, and deductions permitted in the BAA may be difficult to substantiate without cooperative documentation from the Client.

 

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Risks Related to Government Regulation

 

Regulatory and stakeholder scrutiny could limit or prohibit income-sharing structures, payment mechanics, or marketing channels.

 

Our model may face negative public perception or regulatory scrutiny in the sports ecosystem. Leagues, players’ associations, or regulators could view income-sharing arrangements unfavorably and impose restrictions that limit our ability to structure BAAs, receive payments, or market our offerings, which could reduce or eliminate expected cash flows to a series. Rule changes or guidance regarding assignment of income, wage garnishment limits, collective bargaining outcomes, or name, image or likeness (NIL) restrictions could require us to modify or unwind arrangements or increase compliance costs. Negative media attention or advocacy by athlete groups could also impair our ability to source Clients or complete offerings. 

 

Compliance with state athlete agent, talent agency, and marketing regulations may constrain our activities and increase costs.

 

Many jurisdictions require registration, licensing, bonding, or other compliance for those engaging in athlete representation, endorsements, or marketing. Missteps or differing interpretations could result in fines, restrictions on activity, or voidability of certain agreements, and adapting to multi-jurisdictional requirements will increase costs.

 

We could face claims of interference, non-compete violations, or breach arising from existing agent or endorsement agreements.

 

In pursuing Clients and brand campaigns, we may encounter preexisting agency, endorsement, or management contracts. Counterparties could assert tortious interference, non-compete or exclusivity violations, or other claims that disrupt BAAs, delay campaigns, or result in damages or injunctions.

 

We may encounter disputes over rights of publicity, trademarks, and content usage.

 

Campaigns and promotional content rely on proper clearance of name, image, and likeness, logos, footage, and music. Errors or disputes can lead to takedowns, claims for statutory damages, loss of campaign revenue, and reputational harm; insurance may not cover all such claims.

 

The tax treatment of the Units is complex and distributions may be subject to corporate-level taxation that reduces amounts available for distribution.

 

We intend that the Company and each series be treated as a corporation for U.S. federal income tax purposes. As a result, each series will be subject to U.S. federal corporate income tax on its taxable income. Distributions to investors will generally be taxable as dividends to the extent of the series’ current and accumulated earnings and profits, and will not be deductible by the series, resulting in two levels of taxation (at the corporate level and again at the investor level). Future changes in federal, state, or local tax laws could increase the corporate tax rate or modify the taxation of dividends, adversely affecting investor after-tax returns. Additionally, state and local income taxes may apply to the series and to investors receiving distributions.

 

The series will be subject to corporate income tax, and distributions will be taxed as dividends.

 

Because each series intends to be taxed as a corporation, it will pay U.S. federal corporate income tax on its taxable income (currently 21%). Distributions to investors will then be taxable as dividends to the extent of earnings and profits, resulting in two levels of taxation. Dividends may qualify for reduced rates as “qualified dividend income” if holding period requirements are met, but there is no assurance. Additionally, Congress may change the corporate tax rate or dividend tax treatment, which could adversely affect investor after-tax returns.

 

The series may be subject to additional penalty taxes.

 

Corporations that accumulate earnings beyond reasonable business needs may be subject to an accumulated earnings tax. Additionally, if (i) more than 50% of a series’ Units are owned by five or fewer individuals and (ii) at least 60% of its income is passive income, the series could be classified as a personal holding company, potentially subjecting it to an additional 20% tax on undistributed income. While the Manager intends to manage distributions to minimize these risks, no assurance can be given that these taxes will not apply.

 

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Legal and policy changes may reduce Brand Income or increase costs in ways we cannot predict or control.

 

Changes in law, league rules, collective bargaining agreements, or tax policy could adversely affect Brand Income and series economics. Legislative or policy shifts concerning assignment of income, wage garnishment limits, personal services contracts, privacy, or data security could reduce cash flows or increase costs. Multi-jurisdictional tax or privacy regimes could also complicate reporting and enforcement across states or countries.

 

We are exposed to evolving advertising, consumer protection, and data privacy rules that govern digital marketing.

 

Endorsement disclosure rules, advertising standards, and privacy laws (including consent, targeting, and data minimization requirements) may limit targeting capabilities, increase compliance costs, and reduce campaign performance. Platform policy changes can restrict content types or paid reach.

 

International operations, sanctions, anti-corruption, and trade controls present additional compliance and business risks.

 

If we or our Clients participate in international campaigns or contracts, we may be subject to sanctions, export controls, anti-bribery/anti-corruption, and localization rules. Violations can lead to severe penalties, while compliance costs, currency controls, or geopolitical tensions may limit opportunities and delay payments.

 

Risks Related to Conflicts of Interest

 

Our Manager earns fees and expense reimbursements from each series regardless of performance, creating conflicts of interest with investors.

 

The Manager and its affiliates will receive compensation from each series in the form of fees and reimbursed expenses, which are paid before any distributions to investors. In particular, the Manager charges each series a one-time Negotiation Fee (for sourcing and executing the Brand Advisory Agreement) and an ongoing, annual Maintenance Fee for managing the series and providing services. These fees are due to the Manager irrespective of how well the series’ investment performs. For example, the Manager will collect its Maintenance Fee at regular intervals even if the series has not yet earned significant Brand Income. However, the Maintenance Fee shall not accrue or become payable unless and until the series is generating revenue from the Client. Additionally, the Manager is entitled to reimbursement of Operating Expenses it incurs on behalf of the series, such as insurance, legal, accounting, and other costs, which means the Manager can recover its expenditures from series funds. The priority of these payments to the Manager may incentivize the Manager to conduct series business in a way that secures its fees and repayments, potentially at the expense of maximizing returns for investors. Because these costs are deducted from series cash flows (often in advance of distributions), they reduce the Brand Amount payments that ultimately reach investors and could even strain a series that is not yet profitable. In extreme cases, if a series has very low income, the requirement to pay fees and expenses could consume most or all of its cash, delaying or preventing any investor distributions. Investors should be aware that the Manager’s financial interest (to receive steady fees) may not always align with their own interest (to receive net profits), and this misalignment is an inherent conflict in our structure.

 

The Manager’s Negotiation Fee, which is tied to the Initial Advisory Payment made to a Client, may incentivize the Manager to agree to less favorable deal terms for the series.

 

When the Manager signs a Brand Advisory Agreement with a Client, it earns a Negotiation Fee that is calculated as a percentage of the Initial Advisory Payment plus certain related costs. This structure creates a potential conflict of interest, because a larger Initial Advisory Payment to the Client results in a higher Negotiation Fee to the Manager. The Manager could thus have a financial incentive to increase the size of the Initial Advisory Payment or to accept terms that are more generous to the Client, in order to generate a greater immediate fee for itself. A higher payment to the Client means that the series is paying more for the same Brand Percentage, which could reduce the potential return for investors. Investors would generally prefer that the series negotiate the lowest Initial Advisory Payment reasonably achievable for a given share of future income, but the Manager’s fee arrangement may create an incentive to the contrary. There is also a risk that the Manager may be incentivized to close transactions in order to collect fees and demonstrate business progress, even if such transactions have narrow margins or weaker prospects for investors. While the Manager is obligated to act in good faith, this structural incentive could lead to conflicts in negotiation strategy. Investors rely on the Manager to balance these interests appropriately, but they should recognize that the Manager’s compensation structure is not directly based on long-term series performance and may at times diverge from investors’ interests.

 

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The Manager has discretion to allocate opportunities and resources among different series and business activities, which could lead to conflicts of interest.

 

As the sponsor of multiple series, the Manager will decide how to allocate its time, attention, and resources across the series and any future offerings. There is a risk that the Manager may favor certain series or Clients over others. For example, if the Manager identifies multiple potential athlete deals but has limited capital or bandwidth, it will choose which series to pursue first or most aggressively. The Manager might be incentivized to channel the best opportunities to new series that it is launching (to attract investors), possibly to the detriment of existing series which also rely on its efforts. Additionally, expenses that benefit multiple series or the Platform as a whole, such as marketing campaigns or technology improvements, might be allocated in a way that does not perfectly reflect the benefit to each series, affecting their financial results. Because the Manager also effectively controls the Allocation Policy for expenses and the overall strategy of the business, it could make decisions that advance the growth of the Platform or the Manager’s own expansion goals while imposing costs or constraints on a given series. These conflicts are inherent in a structure where one Manager oversees many separate series. Although the Manager has a duty to allocate opportunities in good faith, it is not bound by any exclusive duty to any single series or investor. Investors in each series must depend on the Manager to balance these competing interests fairly, but there is a possibility that certain series (or the Manager’s own interests) could be prioritized in a way that negatively impacts other series.

 

Our Manager and its affiliates are engaged in other business activities, potentially including ones that compete with our Company, and they have no exclusive duty to us.

 

The Manager is not required to devote its full time or effort to our series and is free to pursue other ventures. the Operating Agreement explicitly permits the Manager and its officers or affiliates to have business interests and engage in activities in addition to those relating to the Company or any series, including business activities that may be in direct competition with us. Accordingly, the principals of the Manager could manage another fund or platform that finances athletes, or advise or invest in athletes outside of our series structure, without any obligation to share those opportunities with us. The Manager is under no obligation to offer every potential athlete deal to our Company, and it could allocate attractive opportunities elsewhere for its own benefit. Additionally, since the Manager’s fiduciary duties have been significantly limited or waived by our Operating Agreement, investors cannot rely on traditional fiduciary principles to prevent self-dealing or appropriation of corporate opportunities by the Manager. As a result, the Manager may make decisions based on its broader business interests rather than solely on the interests of any particular series. If a conflict arises between the interests of our series and the interests of the Manager or another business activity, the Manager might resolve it in favor of those other interests. Investors will not have recourse if the Manager chooses to engage in outside enterprises or if those activities negatively impact the time and attention the Manager can devote to our series.

 

Our Manager may act in its own interests and has eliminated fiduciary duties to the fullest extent permitted by law, which may result in decisions that are adverse to us, a series or holders of Units.

 

Our Operating Agreement provides that, in exercising its rights as managing member, the Manager may consider only such interests and factors as it determines in its sole discretion, including its own interests, and has no duty or obligation, fiduciary or otherwise, to consider the interests of the Company, any series or any holders of Units. The Operating Agreement further provides that the Manager will not be subject to duties or standards that might otherwise apply under the Operating Agreement, the Delaware Limited Liability Company Act, other law, rule or regulation, or principles of equity, to the fullest extent permitted by law. The Operating Agreement does not, however, eliminate the implied contractual covenant of good faith and fair dealing owed by the Manager under applicable law. As a result, the Manager may make decisions that benefit itself or its affiliates but adversely affect the Company, one or more series or holders of Units. For example, the Manager may cause the Company or a series to enter into transactions with affiliates, allocate time and resources among different series or business opportunities in a manner that favors the Manager’s own interests, or decline to take actions that holders of Units believe would maximize value. Because holders of Units will have limited ability to challenge these decisions, and because the Manager has expressly disclaimed fiduciary duties to the fullest extent permitted by law, holders of Units may have fewer protections than investors in entities whose governing documents impose traditional fiduciary obligations. This could materially and adversely affect the value of your Units and your ability to obtain a remedy for actions you believe are contrary to your interests.

 

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Shared expenses and overhead allocations may burden some series disproportionately.

 

Some costs may be difficult to allocate precisely among series, creating a risk of disproportionate expense burdens. Even with an allocation policy, shared services, platform costs, and other overhead items may be apportioned in a manner that benefits certain series more than others, adversely affecting the net returns of particular investors. Costs not clearly attributable to a specific series may be spread across all active series, which reduces cash available for distribution in the affected series.

 

The Manager’s role as both the operator of the Platform and the representative for each series creates potential conflicts, including in transactions with affiliates.

 

The Manager makes all decisions for each series and also controls the Platform through which series offerings are conducted and managed. The Manager or its affiliates may provide services to the Company in addition to management services. For example, an affiliate of the Manager could act as a technology provider for the Platform or as a broker-dealer or marketing agent in our offerings. When the Manager uses an affiliated service provider, that affiliate might receive fees or other benefits from the arrangement, which may not be on arm’s-length terms. Even if disclosed, such transactions create a conflict of interest because the Manager might favor its affiliate with Company business, potentially at a higher cost than an independent third party might charge. Additionally, the Manager oversees the provision of brand advisory and marketing services to Clients , some of which may be outsourced to affiliates or related parties of the Manager. The Manager might have an incentive to steer contracts or assignments to those affiliates to benefit its broader corporate family, even if another provider might be more qualified or cost-effective. Because the Manager acts on both sides of any affiliated transaction , as the party engaging services on behalf of the series and as the economic beneficiary of the affiliate providing such services, there is a risk that such arrangements may not be as favorable to the series as arm’s-length arrangements with independent third parties. While our policy is to disclose material affiliated transactions and for the Manager to ensure terms are fair, investors should be aware that conflicts can arise in these situations. The Manager’s judgment may be influenced by the interests of its corporate group, and that could impact operating expenses, quality of service, or other aspects of the series’ performance.

 

The Manager may hold Units or other financial interests that could diverge from the interests of other investors.

 

The Operating Agreement does not prohibit the Manager or its affiliates from investing in Units, and the Manager has the right under the Operating Agreement to purchase units in a series. If the Manager or its principals hold Units in a series, it might gain access to information or opportunities not available to other investors, and it could have incentives to influence series decisions for its own benefit as an owner. For example, if the Manager holds Units and there arises a chance to sell the series’ assets or the athlete’s contract interest, the Manager might weigh its dual role when deciding whether to approve such a transaction. Conversely, if the Manager or its affiliates do not hold Units in a series, they may lack a direct economic interest in the series’ performance, which could affect their risk appetite or commitment to maximizing investor returns. It is also possible that the Manager could sell its Units , if it holds any, at a time or in a manner that is not communicated to other investors, or that it could vote any units it holds in its own interest on matters where investors are entitled to vote. While the Manager’s ownership in a series could align interests up to a point , because the Manager would share in distributions pro rata on its Units,, it also creates a potential conflict because the Manager’s liquidity needs or strategic objectives might not match those of passive investors. Furthermore, the Manager, by virtue of its control, could influence the timing of distributions or the series’ exit in a way that benefits its own position , including deferring distributions if it has a longer investment horizon or accelerating distributions if it seeks earlier returns. All of these scenarios present conflicts of interest between the Manager and the investors. Investors must rely on the Manager to act fairly and in accordance with its contractual duties, but they should recognize that the Manager’s financial interests in the series or the absence of such interests, may affect its decisions. 

 

If a series’ Operating Expenses exceed its revenues, investors may experience reduced distributions or dilution.

 

Operating Expenses related to a particular series incurred post-closing shall be the responsibility of the series. However, if a series lacks sufficient cash reserves or revenues to meet its Operating Expenses, the Operating Agreement provides that the Manager may, in its sole discretion: (a) cause additional Units to be issued in such series; (b) pay such excess Operating Expenses and not seek reimbursement; or (c) enter into an agreement pursuant to which the Manager loans to the series an amount equal to the excess Operating Expenses (an “Operating Expense Reimbursement Obligation”), on which the Manager may, in its sole discretion, impose a reasonable rate of interest at a rate no less than the Applicable Federal Rate (as defined in the Code). Operating Expense Reimbursement Obligations become repayable when cash becomes available for that purpose and the Operating Agreement expressly nets Operating Expense Reimbursement Obligations from the Free Cash Flow available for distribution. If there is an Operating Expense Reimbursement Obligation, the reimbursable amount would be repaid from the Free Cash Flow generated by the applicable series and could reduce the amount of any future distributions payable to investors in that series. If additional Units are issued in a particular series, this would dilute the current value of the Units of that series held by existing investors and the amount of any future distributions payable to such existing investors.

 

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If there is an Operating Expense Reimbursement Obligation, this reimbursable amount between related parties would be repaid from the Free Cash Flow generated by the applicable series and could reduce the amount of any future distributions payable to investors in that series. If additional Units are issued in a particular series, this would dilute the current value of the Units of that series held by existing investors and the amount of any future distributions payable to such existing investors. Further, any additional issuance of Units of a series could result in dilution of the holders of that series.

 

Risks Related to This Offering and Ownership of Our Units

 

Your investment is limited to a single series and may not be insulated from cross-series claims in all scenarios.

 

Investing in a series is not an investment in the Company as a whole, and you will not benefit from the assets of other series. Each series is intended to be legally separate; however, there is residual risk that liabilities could be alleged to extend beyond a single series, particularly in insolvency or where separateness formalities are not perfectly observed. Bankruptcy courts or non-Delaware courts may not fully respect series separateness, exposing one series to another series’ liabilities in extreme cases.

 

Series LLC liability shields are not guaranteed to be upheld in all jurisdictions or in bankruptcy.

 

Our series limited liability structure is novel and may not be respected by courts, potentially exposing investors to liabilities of other series or the Company. We have organized the Company as a Delaware series limited liability company, which allows assets and liabilities to be segregated by series under Delaware law. In theory, this means that the creditors of one series should have no claim against the assets of another series or the Company as a whole, so long as certain conditions are met. However, the series structure remains relatively untested in many jurisdictions. There is no assurance that the internal liability shields of a Delaware series LLC will be respected in all circumstances. While Delaware law provides for series separateness, there is limited bankruptcy precedent, and a court could determine that cross-series or company-level assets should satisfy liabilities, which could materially harm investors in otherwise unrelated series. Observing strict separateness with respect to books, accounts, legends and operations is essential but may not eliminate risk. Administrative convenience, including centralized cash management, shared vendors or pooled reserves, if not carefully documented and allocated, could be viewed as commingling and increase the risk of veil-piercing or substantive consolidation.

 

Our Tier 2 Regulation A structure provides reduced reporting and evolving compliance obligations that may deter investors.

 

We are conducting offerings under Tier 2 of Regulation A, which subjects investors to reduced reporting compared to Exchange Act issuers and introduces regulatory uncertainty. Scaled disclosure, semi-annual reporting, and evolving state notice practices may reduce investor transparency or appetite, impairing capital formation and our growth prospects. Regulatory interpretations of Reg A continue to evolve and could impose new requirements on our offerings or ongoing reports, increasing costs or limiting access to certain states. 

 

Our reliance on Investment Company Act and Advisers Act exclusions could be challenged, forcing costly restructuring or registration.

 

We are not registered under the Investment Company Act or the Investment Advisers Act and we rely on exclusions and interpretive positions that could be challenged. Any requirement to register the Company as an investment company or the Manager as an investment adviser could materially increase costs, restrict operations, or force us to restructure or wind down affected series, causing losses. In addition, we do not provide personalized investment advice to investors; any change in interpretations around online platforms, solicitation, or advice could require changes to our practices, add compliance burdens, or limit communications.

 

Securities law anti-fraud standards apply to all of our communications, creating rescission and enforcement risks if disclosures are inaccurate.

 

We are subject to rigorous anti-fraud obligations and must ensure all communications are accurate and not misleading. Any material misstatement or omission in our offering materials or ongoing updates could lead to rescission claims, regulatory enforcement, or litigation, imposing financial and reputational harm on the Company and affected series. We must also promptly update investors about material developments; failure to do so could compound liability and undermine investor trust. Claims under Section 12(a)(2) of the Securities Act or Rule 10b-5 under the Exchange Act, among others, could result in damages, rescission, or penalties and divert significant management time.

 

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There is no public market for our Units, the Manager is not required to approve or maintain any ATS for secondary trading, and you may not be able to sell or transfer your investment for an indefinite period of time.

 

Each series of the Company is a unique, privately offered security. The Units are not listed on any stock exchange or recognized trading market, and no investor should assume that an active, liquid or sustained secondary market for the Units will develop. The operating agreement permits, but does not require, the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series. If the Manager approves an ATS for a Series, Units of that Series may be eligible to trade through the approved ATS, subject to applicable law, the rules and procedures of the ATS, the Company’s transfer agent arrangements, and any conditions or procedures established by the Manager from time to time. Under the operating agreement, a transfer of Units effected through an ATS approved by the Manager is an “ATS Transfer.” An ATS Transfer is not subject to certain otherwise applicable transfer restrictions under the operating agreement, including the Manager’s consent requirement, prior notice requirements, and any right of first refusal, lock-up or similar restriction that may be included in a Series Designation. Notwithstanding this exception, ATS Transfers remain subject to compliance with applicable securities laws and any eligibility, documentation, settlement, trading, transfer agent, anti-money laundering, sanctions, investor suitability, tax, regulatory, or other conditions or procedures that the Manager may establish. A purchaser in an ATS Transfer will be admitted as a Substitute Economic Member, become the Record Holder of the transferred Units, and be deemed to agree to the operating agreement only when the transfer is recognized in accordance with the procedures established by the Manager and reflected in the Company’s books and records. The Manager may suspend, limit or condition transfers through an approved ATS if the Manager determines that doing so is necessary or appropriate to comply with applicable law, protect the Company or any Series, preserve the status of the Company or any Series for tax, regulatory or other purposes, or administer the books and records of the Company or any Series. As a result, if you need liquidity or want to exit your investment, you may be unable to find any buyers, and even if an ATS is available for a Series, you may be unable to resell your Units when desired, at an acceptable price, or at all. Any resale may be delayed, restricted, suspended or conditioned by securities law requirements, ATS or transfer agent procedures, investor eligibility requirements, settlement procedures, tax or regulatory considerations, or actions taken by the Manager under the operating agreement. You should consider the Units as a long-term, illiquid investment and invest only funds that you can afford to have tied up for an extended period or potentially lost entirely.

 

Any approved ATS may not provide liquidity and trading prices may be volatile or below the offering price.

 

Even if the Manager approves an ATS for a Series and Units of that Series become eligible for secondary trading, there may be little or no trading volume, few or no willing buyers, wide bid-ask spreads, significant price volatility or no reliable market price for the Units. Any trading price may be affected by factors unrelated to the underlying performance of the applicable Series, including limited public information, investor sentiment, trading volume, platform rules, transfer restrictions, transaction costs, tax considerations and the financial circumstances of individual sellers. Units may trade at prices below the offering price, below an investor’s purchase price or below any value the investor believes reflects the Series’ assets or prospects. The availability of an ATS, if any, should not be viewed as an assurance that investors will be able to resell Units at any particular time, price or volume.

 

Transfers through an approved ATS would depend on third-party systems and compliance procedures, and operational or regulatory issues could delay, restrict or prevent transfers.

 

Any ATS Transfer would be subject to the rules and procedures of the approved ATS, the Company’s transfer agent arrangements, broker-dealer, custody, escrow, settlement and other ancillary arrangements, and eligibility, documentation, anti-money laundering, sanctions, investor suitability, tax, regulatory and other conditions or procedures established by the Manager. Failures, delays, outages, data errors, rejected documentation, identity verification issues, settlement failures, transfer agent processing issues, broker-dealer or ATS restrictions, changes in law or regulation, or regulatory or compliance concerns could delay, restrict, suspend or prevent attempted purchases or sales of Units through an ATS. If an ATS, transfer agent, broker-dealer or other service provider modifies, suspends or terminates its services, experiences operational problems or determines that transfers should not proceed, investors may be unable to complete or settle transactions when desired or at all. These risks could impair liquidity, create disputes, increase administrative costs and adversely affect the value or transferability of Units.

 

The Manager has broad discretion over any ATS listing or trading arrangement, which may create conflicts and may adversely affect liquidity.

 

The operating agreement gives the Manager broad authority to approve an ATS for a Series, determine whether and when Units may be listed or eligible for trading, enter into listing, ATS participation, transfer agent, broker, dealer, settlement, custody, escrow, compliance, tax, regulatory and other ancillary agreements, impose conditions or procedures for transfers, and suspend, limit, condition or terminate any ATS listing or trading arrangement. The Manager may exercise this authority without further investor consent and may do so based on legal, regulatory, tax, administrative, business, reputational or other considerations that may differ from the liquidity preferences of individual investors. The Manager may also have conflicts of interest in deciding whether to pursue, maintain, suspend or terminate an ATS arrangement, including because ATS availability may affect the attractiveness of future offerings, the Manager’s Platform strategy, service provider relationships, administrative burdens, costs borne by a Series or the Manager’s own holdings or business interests. Any exercise of this discretion could reduce or eliminate expected liquidity, delay or prevent transfers, increase Series expenses or adversely affect the marketability or value of Units.

 

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Promotional activity relating to any approved ATS could create regulatory, reputational or liability risks.

 

If secondary trading functionality is launched through an approved ATS, the Company, the Manager, a Series, a Client or other service providers may engage in limited platform-level awareness or educational activities relating to the approved ATS. Any such communications must comply with applicable securities laws, broker-dealer and finder restrictions, advertising and endorsement requirements, and Company policies. If promotional or educational materials are inaccurate, incomplete, misleading, insufficiently supervised, not accompanied by required disclosures, or viewed by regulators as impermissible solicitation, investment advice, broker-dealer activity, finder activity or transaction-based promotion, the Company, the Manager, a Series or participating Clients or service providers could face regulatory scrutiny, enforcement action, rescission claims, litigation, reputational harm or restrictions on communications or trading activity. These risks could increase costs, require changes to ATS-related activities, delay or suspend secondary trading arrangements, or adversely affect investor confidence in the Platform and the Units.

 

Investors electing to pay for their Units with a credit card may impact the return on their investment.

 

Investors in this offering have the option of paying for their investment with a credit card. Interest or other fees you may incur related to using that form of payment may increase the effective purchase price of the Units you purchase in this offering. For example, you may incur interest on unpaid card balances, and credit card interest rates can be high, more than 20% in certain cases. The cost of using a credit card may also increase if you do not make the minimum monthly card payments and incur late fees. Using a credit card is a relatively new form of payment for the purchase of securities and will subject you to risks inherent in this form of payment, including that, if you fail to make a credit card payment , such as minimum monthly payments,, you risk damaging your credit score and payment by credit card may be more susceptible to abuse than other forms of payment. Moreover, where a third-party payment processor is used, as is the case in this offering, your recovery options in the case of disputes may be limited. The increased costs due to transaction fees and interest may reduce the return on your investment.

 

The SEC’s Office of Investor Education and Advocacy issued an Investor Alert dated February 14, 2018 entitled: Credit Cards and Investments – A Risky Combination, which explains these and other risks you may want to consider before using a credit card to pay for your investment.

 

Distributions, if any, will vary and may be delayed, reduced, or suspended.

 

The timing and amount of distributions are uncertain and depend on the Client’s payment cadence, our expense profile, and reserves. Even if the Brand Amount payment is received, we may establish or increase reserves, delay distributions, or experience operating or enforcement costs that materially reduce distributable cash. Investor-level tax obligations may arise even in periods with little or no cash distributions if a series recognizes taxable income.

 

Pricing of Units and BAA rights is uncertain and may not reflect realizable value.

 

Valuation of Units and underlying BAAs is inherently uncertain. Outcomes depend on a single athlete’s career path and contract trajectory, with limited comparable market data; initial pricing and any subsequent indications of value may not reflect realizable outcomes. External events (market cycles, league changes, or Client-specific news) may cause rapid repricing unrelated to fundamentals.

 

Our evolving internal controls may not prevent errors or delays in reporting and compliance.

 

Deficiencies in internal controls or financial reporting could impair transparency and compliance. As a growth-stage company, we may experience control gaps or delays as we scale systems and staff, which could lead to errors, amendments, or adverse regulatory or investor reactions. Limitations in segregation of duties and reliance on third-party systems may heighten these risks until we reach greater scale.

 

Each series is a single-Client exposure with no built-in diversification.

 

Each series represents exposure to a single Client. Lack of diversification means that adverse events affecting the Client will directly and disproportionately impact the related series. Investors seeking diversification must build it across multiple series or other investments. Concentration risk is heightened for early-career Clients whose earnings trajectories are inherently volatile.

 

Tier 2 Regulation A provides reduced reporting and evolving compliance obligations that may deter investors.

 

We are conducting offerings under Tier 2 of Regulation A, which subjects investors to reduced reporting compared to Exchange Act issuers and introduces regulatory uncertainty. Scaled disclosure, semi-annual reporting, and evolving state notice practices may reduce investor transparency or appetite, impairing capital formation and our growth prospects. Regulatory interpretations of Reg A continue to evolve and could impose new requirements on our offerings or ongoing reports, increasing costs or limiting access to certain states.

 

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Our reliance on Investment Company Act and Advisers Act exclusions could be challenged, forcing costly restructuring or registration.

 

We are not registered under the Investment Company Act or the Investment Advisers Act and we rely on exclusions and interpretive positions that could be challenged. Any requirement to register the Company as an investment company or the Manager as an investment adviser could materially increase costs, restrict operations, or force us to restructure or wind down affected series, causing losses. In addition, we do not provide personalized investment advice to investors; any change in interpretations around online platforms, solicitation, or advice could require changes to our practices, add compliance burdens, or limit communications.

 

Securities law anti-fraud standards apply to all of our communications, creating rescission and enforcement risks if disclosures are inaccurate.

 

We are subject to rigorous anti-fraud obligations and must ensure all communications are accurate and not misleading. Any material misstatement or omission in our offering materials or ongoing updates could lead to rescission claims, regulatory enforcement, or litigation, imposing financial and reputational harm on the Company and affected series. We must also promptly update investors about material developments; failure to do so could compound liability and undermine investor trust. Claims under Section 12(a)(2) of the Securities Act or Rule 10b-5 under the Exchange Act, among others, could result in damages, rescission, or penalties and divert significant management time.

 

Investors will not be parties to any Brand Advisory Agreement and will have limited ability to cause remedies to be pursued if a Client breaches or defaults under that agreement.

 

Each Brand Advisory Agreement will be entered into by the applicable series and the Client. Investors who purchase Units of that series will not be parties to the Brand Advisory Agreement and, solely by virtue of holding Units, will not have direct contractual rights or third-party beneficiary rights to enforce the Brand Advisory Agreement in their own names. If a Client fails to pay Brand Amounts, fails to maintain required payment instructions or account arrangements, diverts Brand Income, breaches a covenant or otherwise defaults under the Brand Advisory Agreement, any remedies will generally need to be pursued by the applicable series, acting through the Manager, rather than by investors directly. Those remedies may include enforcing payment, reporting, audit, collection and security rights, seeking unpaid Brand Amounts, interest, liquidated damages, equitable relief or termination rights, and exercising other rights provided under the applicable Brand Advisory Agreement, but there can be no assurance that any remedy will be available, timely, cost-effective or sufficient to make the series or investors whole.

 

Because the Manager controls the business and affairs of each series, investors must rely on the Manager to monitor performance under the Brand Advisory Agreement, determine whether a breach or event of default has occurred, decide whether and when to pursue remedies, select counsel or other service providers, and determine whether to settle, compromise, waive or forbear from enforcing any rights. The Manager may consider factors that differ from the interests of any particular investor, including enforcement costs, the likelihood of recovery, the Client relationship, reputational considerations, the effect on other series or future offerings, and the Manager’s own interests or conflicts. If the Manager declines to pursue a claim, delays enforcement, settles for less than investors believe is appropriate, or determines that enforcement costs are not justified, investors may have limited practical ability to require a different course of action.

 

Enforcement of a Brand Advisory Agreement may also be difficult, expensive and uncertain even when the series has contractual rights on paper. A Client may dispute the amount of Brand Income, the calculation of Brand Amounts, the existence of a breach, the enforceability of payment instructions, security interests or remedies, or the application of exclusions, deductions, cure periods or termination provisions. League rules, collective bargaining agreements, team payroll practices, anti-assignment restrictions, bankruptcy or insolvency proceedings, competing claims, public policy limitations or applicable law may delay, limit or prevent collection. Any dispute may require litigation, arbitration or other proceedings in the forum and under the procedures specified in the applicable agreements, and proceedings under the Operating Agreement are subject to mandatory arbitration, individual-proceeding requirements, confidentiality provisions and Delaware forum provisions, subject to the limitations described below. These procedures may increase cost, delay recovery, limit discovery or appellate review, and reduce the leverage or information available to investors. As a result, a breach or event of default under a Brand Advisory Agreement could reduce or eliminate Brand Amount payments and distributions even if the series has contractual remedies.

 

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The Operating Agreement requires mandatory arbitration of disputes and includes a waiver of jury trial, which may limit your ability to pursue claims in court and could affect the outcome, cost and remedies available to you.

 

The Operating Agreement requires, to the fullest extent permitted by law, that any dispute, claim or controversy arising out of or relating to the Operating Agreement, the formation, governance, management, operations, capitalization or dissolution of the Company or any series, or the rights, duties or relationships among the Company, any series, the Manager, any member or their respective affiliates in such capacities, be resolved exclusively by binding arbitration administered by the American Arbitration Association under the Federal Arbitration Act and the AAA Commercial Arbitration Rules. Arbitration will generally be conducted before a single neutral arbitrator, unless all parties to the dispute agree in writing to a three-arbitrator panel. The seat and venue of arbitration will be Wilmington, Delaware, and hearings may be conducted remotely at the election of the arbitrator after conferring with the parties. By agreeing to these provisions, investors waive the right to a trial by jury and the right to litigate covered disputes in court, except for limited requests for temporary, preliminary or emergency injunctive relief or other provisional remedies in Delaware courts and except to the extent applicable law does not permit a particular claim or remedy to be subject to mandatory arbitration.

 

Arbitration may be less favorable to investors than litigation in court. The arbitrator has authority to decide questions regarding the formation, existence, validity, scope, interpretation and enforceability of the agreement to arbitrate, including whether a dispute is arbitrable and whether the individual-proceeding requirement is enforceable, except for issues that non-waivable law requires a court to decide. Although the arbitrator may award any relief available under applicable law and in equity, including monetary damages, declaratory, injunctive or other equitable relief, and attorneys’ fees and costs where authorized, arbitration may involve different procedures, narrower discovery, more limited motion practice and more limited appellate review than court proceedings. These features may affect the ability of investors to develop the factual record, challenge adverse rulings, or obtain review of legal or factual errors.

 

The arbitration provisions are not intended to waive, diminish, limit or disclaim any substantive rights or remedies under the U.S. federal securities laws or the rules and regulations promulgated under those laws. The Operating Agreement provides that federal securities law claims are arbitrable to the extent permitted by applicable law and that the arbitrator must afford the same substantive rights and remedies that would be available in a court of competent jurisdiction, including statutory damages, rescission, injunctive relief, attorneys’ fees and costs where authorized. To the extent applicable law does not permit a particular federal securities law claim or remedy to be subject to mandatory arbitration, that claim or remedy may be brought in a court of competent jurisdiction and will not be subject to arbitration to that extent. The enforceability and scope of these provisions may nevertheless be challenged, and any challenge could result in delay, additional expense, parallel proceedings or uncertainty regarding the proper forum for a claim.

 

The class action waiver in the Operating Agreement may prevent investors from pursuing claims on a class, collective or representative basis, which could make small or diffuse claims more difficult or costly to pursue.

 

The Operating Agreement requires disputes to be arbitrated or adjudicated, as applicable, only on an individual basis. No party has the right to have any dispute heard or decided as a class, collective, private attorney general or other representative proceeding, or in any proceeding in which a party acts or proposes to act on behalf of other members or other persons who are not parties to the proceeding. Unless all affected parties agree in writing, no arbitration, litigation or other proceeding may be consolidated with, coordinated with or joined to any other arbitration, litigation or proceeding, except for administrative case-management or batching measures expressly permitted for mass arbitration proceedings. The arbitrator or court may not award relief on a classwide, collective or representative basis or enter an order that purports to bind or grant relief to any person or entity that is not a party to the proceeding, except to the extent non-waivable applicable law requires otherwise. These limitations may prevent investors from sharing costs, increasing leverage through aggregate proceedings, or pursuing claims that may be uneconomical on an individual basis.

 

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The Operating Agreement includes mass arbitration procedures and confidentiality requirements that may affect the timing, cost and transparency of dispute resolution.

 

If a large number of substantially similar arbitration demands asserting related claims are filed within a specified period and are brought by or with the assistance or coordination of overlapping counsel, law firms or litigation funding entities, the Operating Agreement provides for a mass arbitration protocol. That protocol contemplates use of applicable AAA mass arbitration procedures, appointment of a process arbitrator for threshold and procedural issues, organization of cases into tranches, an initial bellwether tranche, stays of non-active cases, tolling of limitation periods for stayed cases, and non-binding mediation after bellwether awards and later tranches. Fees for stayed cases generally are not due until those cases are placed into an active tranche, and the arbitrator or process arbitrator may modify tranche size, sequencing or other procedural matters for efficiency and fairness. These procedures may reduce some cost burdens associated with mass filings, but they may also delay individual claims while earlier tranches proceed and may affect settlement dynamics. Arbitration proceedings, orders and awards are also confidential to the fullest extent permitted by law, except as required by law or to enforce an award, which may limit the information available to investors about similar claims or outcomes.

 

Series separateness depends on rigorous, ongoing observance of formalities and documentation.

 

Maintaining series separateness requires continuous governance discipline. Failure to maintain separate records, accounts, contractual legends, or operational formalities could increase the risk that a court disregards internal liability shields and exposes a series to the liabilities of another series or the Company generally. Centralized functions, if not properly allocated and documented, can also create appearance of commingling.

 

Delaware governing law and exclusive forum provisions may limit where investors can bring non-arbitrable claims and related court proceedings.

 

For claims or remedies that are not subject to mandatory arbitration, and for court proceedings related to or in support of arbitration, the Operating Agreement generally requires proceedings to be brought in Delaware courts, subject to applicable federal securities laws and any written consent by the Manager to an alternative forum. The Operating Agreement also provides that Delaware law governs the Operating Agreement, non-contractual obligations arising out of or in connection with it, and the rights and liabilities of members in the Company and each series, except to the extent applicable law requires otherwise. These provisions may require investors to bring claims in a forum that is less convenient or more costly, may limit the procedural alternatives available to investors, and may discourage claims that would otherwise be brought in another forum.

 

Forward-looking statements involve known and unknown risks, and actual results may differ materially.

 

This section contains forward-looking statements subject to risks and uncertainties. Actual results could differ materially due to factors discussed above and elsewhere in the Offering Circular. We undertake no obligation to update these statements except as required by law.

 

Investors have extremely limited voting rights and no ability to influence the management of the Company or any series.

 

When you purchase Units, you are investing in a particular series but you do not obtain any managerial authority over that series or the Company. Under our Operating Agreement, almost all decisions concerning the business and affairs of the Company and each series, including the selection of Clients, execution of Brand Advisory Agreements, management of series assets, and timing of distributions, are made solely by the Manager. Investors do not have the right to participate in day-to-day management or to bind the Company or any series in any way. Your voting rights as a member are limited to a narrow range of situations, such as potentially voting on certain amendments to the Operating Agreement that materially and adversely affect your rights, or the removal of the Manager for cause (and even these actions typically require a large supermajority vote). In general, it would be very difficult for investors to change the course of operations or overrule decisions of the Manager. This lack of control means you are entirely dependent on the Manager’s expertise and integrity to manage the business in your best interest.

 

It may be difficult or impossible for the investors to remove the Manager, even if you are dissatisfied with its performance.

 

The Manager, Agentiq Sports, Inc., is entrusted with broad authority to manage the Company and each series, and investors cannot readily replace it. Under the Operating Agreement, removing the Manager requires a “for cause” event, meaning that the Manager has been found by a final, non-appealable judgment of a court of competent jurisdiction to have committed fraud in connection with a series or the Company that has a material adverse effect on the Company, and even then, removal would need to be approved by a Super Majority Vote of Unit holders representing at least 80% of the outstanding Units of all series, voting together as a single class. This threshold is exceptionally difficult to satisfy. If the Manager performs poorly , including by making disadvantageous business decisions, failing to effectively support Clients or failing to act in investors’ best interests, but has not engaged in conduct that meets this standard, investors lack a mechanism to remove it. Even in the unlikely scenario where cause for removal exists, coordinating a Super Majority Vote among all Unit holders can be impractical. Furthermore, the operating agreement provides that upon a for-cause removal of the Manager, investors may choose to liquidate and dissolve all series, which could result in the cessation of all business operations. Accordingly, the only path to removal of the Manager may entail significant disruption and the potential loss of remaining asset value. Investors should not expect to have any practical ability to change the Manager or influence management personnel. The success of your investment will depend on the Manager’s continued service, and if its performance is unsatisfactory, your options as an investor are very limited.

 

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DILUTION

 

Investors in any series may experience dilution from several sources. Dilution may result from the initial issuance of Units in this offering, the issuance of additional Units after this offering, the conversion of indebtedness or reimbursement obligations into Units, the issuance or exercise of options, warrants or other equity-linked instruments, the issuance of Units as compensation or consideration for services or assets, anti-dilution or similar adjustment rights, or any other issuance of Units permitted by the Operating Agreement and the applicable Series Designation. Dilution may reduce an investor’s percentage ownership of the applicable series, voting power, if any, and share of future distributions or liquidation proceeds.

 

No interests of any series will be outstanding before this offering, other than any Units that may be issuable upon conversion of an applicable Manager Promissory Note. Accordingly, the initial issuance of Units in this offering is not expected to dilute any existing holders of Units, because there are no existing holders of Units before this offering.

 

Following the issuance of Units, the principal potential source of dilution for investors in any series, if applicable, is the possible issuance of additional Units upon conversion of an applicable Manager Promissory Note. For example, assuming the sale of the maximum of 12,900 Series RC Units at an offering price of $100.00 per Unit, and assuming the Manager Promissory Note is repaid in cash rather than converted, 12,900 Series RC Units will be issued and outstanding immediately after the closing of this offering. If the Manager elects to convert the $350,000 principal amount of the Manager Promissory Note into Series RC Units at the offering price of $100.00 per Unit, the Manager would receive 3,500 additional Series RC Units, and 16,400 Series RC Units would be outstanding on a fully diluted basis, before giving effect to any accrued interest on the Manager Promissory Note. Because the amount of accrued interest, if any, that may be converted is not determinable as of the date of this Offering Circular, any Series RC Units issuable upon conversion of accrued interest are excluded from the fully diluted interest count above. The number of Series RC Units issuable upon conversion of accrued interest should be updated in any final disclosure if that amount becomes known.

 

Traditional net tangible book value per Unit may be of limited utility for any series that is expected to hold primarily contractual rights, intangible assets or other non-tangible assets, or whose offering proceeds are expected to be used primarily to acquire contractual rights, pay fees and expenses, repay indebtedness or reimbursement obligations, and establish reserves. For example, Series RC is expected to hold primarily the Series RC BAA as an intangible asset, and the net proceeds of this offering are expected to be used to pay the Initial Advisory Payment, fees and expenses, repay the Manager Promissory Note and establish reserves. For illustrative purposes only, assuming the maximum offering is sold, the Manager Promissory Note is repaid in cash, and the only tangible asset remaining immediately after closing is the $8,520 of operating reserves reflected in the Use of Proceeds table, the as adjusted net tangible book value of Series RC would be approximately $8,520, or approximately $0.66 per Series RC Unit based on 12,900 Series RC Units outstanding. Based on the $100.00 offering price per Series RC Unit, investors purchasing Series RC Units in this offering would experience immediate dilution in as adjusted net tangible book value of approximately $99.34 per Series RC Unit.

 

The conversion of an applicable Manager Promissory Note would reduce the ownership percentage represented by each Unit purchased in this offering. For example, one Series RC Unit would represent approximately 0.0078% of the issued and outstanding Series RC Units if only the 12,900 Series RC Units offered hereby are outstanding, and approximately 0.0061% of the fully diluted Series RC Units if the $350,000 principal amount of the Manager Promissory Note is converted into 3,500 additional Series RC Units, in each case before giving effect to any accrued interest on the Manager Promissory Note or any future issuances.

 

Additional dilution may occur after this offering if the Manager causes any series to issue additional Units, including to fund operating shortfalls, repay or convert Operating Expense Reimbursement Obligations, raise additional capital, acquire or support additional assets or services, issue Units as compensation or consideration, or for any other purpose permitted by the Operating Agreement and the applicable Series Designation. Any such future issuance could reduce the percentage ownership, voting power, if any, and share of future distributions or liquidation proceeds represented by Units purchased in this offering.

 

The dilution discussion above assumes that, other than any applicable Manager Promissory Note, there are no additional equity-linked securities, conversion rights, anti-dilution protections, warrants, options, restricted stock units, earn-outs or similar instruments outstanding with respect to any series as of the date of this Offering Circular. If any such instruments are issued or become outstanding with respect to any series, this dilution disclosure and the related capitalization disclosure will be updated in a supplement or amendment, as applicable.

 

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PLAN OF DISTRIBUTION

 

We are offering the Units of each of the series of the Company in the “Series Offering Table”. Each offering is being conducted on a best efforts basis. The initial offering price for the Units of each series was determined by the Manager. The sale of the Units in our series offerings is being facilitated by Andes Capital Group, LLC, or Andes, which is a registered broker-dealer under the Exchange Act and member of FINRA and is registered in each state where the offer and sales of the Units will occur. Units may not be offered or sold in states where Andes is not registered as a broker-dealer.

 

We are conducting each series offering on the Agentiq Sports online investment platform available at www.agentiqsports.com which is owned by our Manager. Through the use of the Platform, investors can browse and screen the potential investments and sign legal documents electronically. Neither the Manager nor any other affiliated entity involved in the offer and sale of the Units is a member firm of the Financial Industry Regulatory Authority, Inc., or FINRA, and no person associated with us will be deemed to be a broker solely by reason of his or her participation in the sale of the Units. The minimum allowable subscription for any series offering is expected to be one (1) Unit, for $100.00.

 

Each of the offerings is being conducted under Regulation A under the Securities Act and therefore, only offered and sold to qualified purchasers. See “– Investor Suitability Standards” for more information. As a Tier 2 offering pursuant to Regulation A under the Securities Act, these offerings will be exempt from state law blue sky registration requirements, subject to meeting certain state filing requirements and complying with certain antifraud provisions, to the extent that our Units are offered and sold only to “qualified purchasers” or at a time when our Units are listed on a national securities exchange. It is anticipated that sales of securities will only be made in states where Andes is registered.

 

There will be at least one separate closing with respect to each series offering. Where the applicable series offering has a Minimum Offering Amount, the initial closing of a series offering will take place on the later to occur of (i) the date subscriptions for the Minimum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion, and subscription funds will be held in escrow pending achievement of that threshold. Where the applicable series offering does not have a Minimum Offering Amount (including where the Manager has funded all or a portion of the Initial Advisory Payment through a Manager Promissory Note prior to the initial closing), the initial closing will take place on a date determined by the Manager in its sole discretion, and subscription funds will not be held in escrow pending a minimum offering threshold. Once an initial closing for a particular series offering has occurred, we may conduct additional closings for that series until the earlier to occur of (i) the date subscriptions for the Maximum Offering Amount for that series have been accepted and (ii) a date determined by the Manager in its sole discretion. If an initial closing of a particular series has not occurred, an offering shall be terminated upon (i) the date which is one year from the date the Offering Circular related to such series, or amendment thereof, as applicable, is qualified by the SEC, which period may be extended with respect to that series by an additional six months by our Manager in its sole discretion, or (ii) any date on which our Manager elects to terminate the offering for that series in its sole discretion, such date not to exceed the date which is 18 months from the date such Offering Circular related to that series or amendment thereof, as applicable, is qualified by the SEC. If a series offering is terminated without a closing, all investor funds will be returned promptly without interest or deduction.

 

Those persons who want to invest in our Units must sign a subscription agreement for the particular series, which will contain representations, warranties, covenants, and conditions customary for offerings of this type for limited liability companies. See “ — How to Subscribe” for more information. Copies of the form of subscription agreement for each series are filed as Exhibit 4.1 and onwards to the offering statement of which this Offering Circular forms a part.

 

Investor Suitability Standards

 

Our Units are being offered and sold only to “qualified purchasers” (as defined in Regulation A under the Securities Act), which include: (i) “accredited investors” under Rule 501(a) of Regulation D and (ii) all other investors so long as their investment in any of the Units of the Company (in connection with any series offered under Regulation A) does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons). We reserve the right to reject any investor’s subscription in whole or in part for any reason, including if we determine in our sole and absolute discretion that such investor is not a “qualified purchaser” for purposes of Regulation A.

 

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For an individual potential investor to be an “accredited investor” for purposes of satisfying one of the tests in the “qualified purchaser” definition, the investor must be a natural person who has:

 

1.an individual net worth, or joint net worth with the person’s spouse, that exceeds $1,000,000 at the time of the purchase, excluding the value of the primary residence of such person and the mortgage on that primary residence (to the extent not underwater), but including the amount of debt that exceeds the value of that residence and including any increase in debt on that residence within the prior 60 days, other than as a result of the acquisition of that primary residence; or

 

2.earned income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

 

If the investor is not a natural person, different standards apply. See Rule 501 of Regulation D for more details. For purposes of determining whether a potential investor is a “qualified purchaser,” annual income and net worth should be calculated as provided in the “accredited investor” definition under Rule 501 of Regulation D. In particular, net worth in all cases should be calculated excluding the value of an investor’s home, home furnishings and automobiles.

 

The Employee Retirement Income Security Act (ERISA) and IRS rules have implications if retirement plan investors , such as individual retirement accounts or 401(k) plans, invest in our series. We do not currently anticipate significant investment from ERISA plan assets, but to the extent such investment occurs, the Company intends to structure each series to avoid violation of applicable plan asset regulations and prohibited transaction rules, which generally requires maintaining benefit plan participation below 25% of a series or qualifying for an applicable exemption. The Company will include appropriate legends and representations in the subscription documents to address ERISA compliance.

 

If you live outside the United States, it is your responsibility to fully observe the laws of any relevant territory or jurisdiction outside the United States in connection with any purchase, including obtaining required governmental or other consent and observing any other required legal or other formalities.

 

Our Manager and Andes, in its capacity as broker of record for these offerings, will be permitted to make a determination that the subscribers of Units in each offering are “qualified purchasers” in reliance on the information and representations provided by the subscriber regarding the subscriber’s financial situation. Before making any representation that your investment does not exceed applicable federal thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to http://www.investor.gov.

 

An investment in our Units may involve significant risks. Only investors who can bear the economic risk of the investment for an indefinite period of time and the loss of their entire investment should invest in the Units. See “Risk Factors.”

 

Broker of Record

 

We have engaged Andes Capital Group, LLC, or Andes (the “Broker”), a broker-dealer registered with the SEC and a member of FINRA and SIPC, to perform the following administrative and compliance-related functions in connection with our series offerings, but not for underwriting or placement agent services:

 

  Review investor information, including KYC, or Know Your Customer data, AML, or Anti Money Laundering, and other compliance background checks, and provide a recommendation to the company whether or not to accept the investor as a customer.
     
  Review each investor’s subscription agreement to confirm such investor’s participation in the offering and provide a determination to the company whether or not to accept the use of the subscription agreement for the investor’s participation.
     
  Contact and/or notify the company, if needed, to gather additional information or clarification on an investor;
     
  Serve as a registered agent for each series on which it acts as broker-of-record when required for state blue-sky law requirements.
     
  Not provide any investment advice nor any investment recommendations to any investor.
     
  Keep investor details and data confidential and not disclose to any third party except as required by regulators or pursuant to the terms of the agreement , including as necessary for anti-money laundering and background checks.
     
  Coordinate with third-party providers, including the escrow agent and the transfer agent, to ensure adequate review and compliance.

 

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The Broker will be registered in each state where each offering and sale of Units will occur, prior to the launch of each offering. The Broker will receive a Broker Fee but will not purchase any Units and, therefore, will not be eligible to receive any discounts, commissions or any underwriting or finder’s fees in connection with any series offering.

 

The broker-dealer agreement with Andes will remain in effect for a period of thirty-six (36) months and will renew automatically for successive renewal terms of twelve (12) months each unless either party provides notice to the other party of non-renewal at least sixty (60) days prior to the expiration of the current term. Additionally, either party may terminate the broker-dealer agreement with sixty (60) days prior written notice.

 

As compensation for providing services to each series in connection with each offering, Andes will receive a fee equal to 1.0% of the gross proceeds of each such offering (the “Broker Fee”). Notwithstanding the foregoing, the Broker will not receive any fee on funds raised from the sale of Units to our Manager and its affiliates.

 

Each series will be responsible for paying its own Broker Fee to Andes in connection with the sale of Units in such series, except if otherwise stated for a particular series. The Broker Fee will be payable from the proceeds of such offering.

 

In addition to the Broker Fee, the Manager has agreed to pay Andes a one-time $7,500 onboarding fee and, beginning with the sixth (6th) series, for each new series launched, the Manager will pay a series launch fee of $1,000 to cover launch coordination, compliance review, and initial marketing setup. However, for every $500,000 raised in a series offering, Andes will waive the launch fee for one (1) new series. Waivers will be applied on a cumulative basis and may be used at our Manager’s discretion for any future series launch after the fifth series. Our Manager will require a pro rata reimbursement of Andes charges from the relevant series.

 

Transfer Agent

 

The transfer agent of the series being offered hereby is Colonial Stock Transfer Company. Each Series will be responsible for a certain percentage of fees owed to the Transfer Agent. See “Use of Proceeds” for more information.

 

Escrow Agent

 

The Escrow Agent is North Capital, which will be appointed as escrow agent for each offering pursuant to an escrow agreement among Andes, the Escrow Agent, and the Company, on behalf of each series. Our Manager has agreed to pay North Capital Investment Technology, Inc., or NCIT, a monthly licensing and service fee of $1,000 per month for technology tools to facilitate our series offerings. Our Manager also paid NCIT a one-time installation and setup fee of $3,000. These technology fees are being paid by our Manager and may be reimbursed by the series.

 

We agreed to indemnify the Escrow Agent and each director, officer, employee, attorney, agent and affiliate of the Escrow Agent against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys’ fees, costs and expenses) in any third party claim arising from or in connection with the negotiation, preparation, execution, performance or failure of performance of the escrow agreements or any transactions contemplated therein; provided, however, that no person shall have the right to be indemnified for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted from the gross negligence or willful misconduct of such person.

 

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How to Subscribe

 

Potential investors who are “qualified purchasers” may subscribe to purchase Units in a series which has not had a final closing.

 

The subscription process for each offering is a separate process. Any potential investor wishing to acquire any Units must:

 

  1. Carefully read this Offering Circular, and any current supplement, as well as any documents described in the Offering Circular and attached hereto or which you have requested. Consult with your tax, legal and financial advisors to determine whether an investment in any of our series’ Units is suitable for you.

 

  2. Review the subscription agreement (including the “Investor Qualification and Attestation” attached thereto), which was pre-populated following your completion of certain questions on the Platform application, and if the responses remain accurate and correct, sign the completed subscription agreement using electronic signature. Except as otherwise required by law, subscriptions may not be withdrawn or cancelled by subscribers.

 

  3. Once the completed subscription agreement is signed for a particular offering, an integrated online payment provider will transfer funds in an amount equal to the purchase price for the relevant Units you have applied to subscribe for (as set out on the front page of your subscription agreement) into a non-interest-bearing escrow account with the Escrow Agent. The Escrow Agent will hold such subscription monies in escrow until such time as your subscription agreement is either accepted or rejected by the Manager and, if accepted, such further time until you are issued the Units for which you subscribed.

 

  4. The Manager and Andes will review the subscription documentation completed and signed by you. You may be asked to provide additional information. The Manager or Andes will contact you directly if required. We reserve the right to reject any subscriptions, in whole or in part, for any or no reason, and to withdraw any offering at any time prior to a closing.

 

  5. Once the review is complete, the Manager will inform you whether or not your application to subscribe for Units is approved or denied and if approved, the number of Units you are entitled to subscribe for. If your subscription is rejected in whole or in part, then your subscription payments (being the entire amount if your application is rejected in whole or the payments associated with those subscriptions rejected in part) will be refunded promptly, without interest or deduction. The Manager accepts subscriptions on a first-come, first-served basis subject to the right to reject or reduce subscriptions.

 

  6. If all or a part of your subscription in a particular series is approved, then the number of Units you are entitled to subscribe for will be issued to you upon the closing. Simultaneously with the issuance of the Units, the subscription monies held by the Escrow Agent in escrow on your behalf will be transferred to the account of the applicable series as consideration for such Units.

 

By executing the subscription agreement, you agree to be bound by the terms of the subscription agreement and the operating agreement of the Company, as it may be amended from time to time. The Company, the Manager and Andes will rely on the information you provide in the subscription agreement, including the “Investor Qualification and Attestation” attached thereto and the supplemental information you provide in order for the Manager and Andes to verify your status as a “qualified purchaser.” If any information about your “qualified purchaser” status changes prior to you being issued Units, please notify the Manager immediately using the contact details set out in the subscription agreement.

 

For further information on the subscription process, please contact the Manager using the contact details set out in the “Where to Find Additional Information” section.

 

The subscription funds advanced by prospective investors as part of the subscription process will be held in a non-interest-bearing account with the Escrow Agent and will not be commingled with the series’ operating account, until if and when there is a closing for a particular offering with respect to that series. When the Escrow Agent has received instructions from the Manager or Andes that an offering will close, and the investor’s subscription is to be accepted (either in whole or part), then the Escrow Agent shall disburse such investor’s subscription proceeds in its possession to the account of the applicable series. If an offering is terminated without a closing, or if a prospective investor’s subscription is not accepted or is cut back due to oversubscription or otherwise, such amounts placed into escrow by prospective investors will be returned promptly to them without interest or deductions. Any costs and expenses associated with a terminated offering will be borne by the Manager.

 

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DESCRIPTION OF BUSINESS

 

Overview

 

We are a Delaware series limited liability company formed on November 3, 2025 for the purpose of establishing designated series that provide strategic brand enhancement and promotional advisory services, together with upfront capital, to athletes and other talent in exchange for a contractual right to receive a fixed percentage of such person’s future on-field revenue. In our business model, each designated series of the Company will work with a single athlete or similar talent (each, a “Client”) under a Brand Advisory Agreement, whereby the series will provide the Client with upfront capital and Advisory Services in return for the Brand Amount, which is equal to the applicable Brand Percentage of the Client’s Brand Income during the Term. Brand Income is contractually defined to include the Client’s earnings from direct participation, performance or employment in the Client’s Principal Business (for example, team salary, signing bonuses, performance bonuses, prize money and similar on-field compensation), and to exclude Excluded Income, including off-field endorsements, sponsorships, appearances, licensing of name/image/likeness, merchandising and other off-field commercial activities. By design, our series do not acquire any ownership of the Client’s persona, brand, publicity rights, business or off-field income streams – only contractual rights to receive and collect the Brand Amount and related enforcement rights. We believe this structure offers a novel platform for individual investors to indirectly invest in an athlete’s future career success, while providing athletes with immediate financial liquidity and professional brand support.

 

Each series of the Company operates as a separate business unit with its own assets and liabilities, as provided under Delaware law and our Operating Agreement. The Company’s business activities are expected to be conducted primarily at the series level through the Brand Advisory Agreements each series enters into. Each designated series of the Company will bear a name of the form “Agentiq Sports 1 Series [Name of Client]” and will be created by a separate Series Designation under our Operating Agreement once a target Client and agreement terms have been identified and finalized. As of the date of this Offering Circular, we have designated one series, Series RC, in connection with the Series RC BAA. Our activities to date have been limited to organizing the Company, developing our business model and Platform, evaluating initial target Clients and Brand Advisory Agreement opportunities, and negotiating and executing the Series RC BAA. There can be no assurance that we will successfully launch any other series or enter into any other Brand Advisory Agreements until such time as we identify suitable Clients and raise sufficient capital in the related series offerings. See “Risk Factors — Risks Related to Our Business and Industry — We are an early-stage company with no operating history and an untested model, which makes this a highly speculative investment” and “Risk Factors — Risks Related to Our Business and Industry — Our pipeline, pricing, and timing depend on our ability to sign athletes to BAAs on acceptable terms, which may not be achievable” for more information.

 

The Company’s objective is to enable investments in athletes’ careers by acquiring contractual rights to a portion of the future earnings of emerging professional athletes. We expect to focus on athletes early in their careers – for example, collegiate athletes transitioning to the professional level, minor league players, or young professionals – across major sports such as baseball, football and others. By targeting talent in the early stages, we aim to balance the upfront cost of obtaining a share of their future income with the potential for that income to grow as the athlete’s career progresses. Investors in each series will, in effect, be funding a portion of a Client’s career development in return for a proportional share of the Client’s contracted future earnings. However, this is a speculative and long-term undertaking. We cannot assure investors that our strategy will succeed or that any series will receive significant Brand Amount payments, or any at all, from its Client. The actual returns of each series will depend on the performance, health, career length, and contract value of the individual Client, which are uncertain and subject to numerous risk factors outside our control. Investors should carefully consider the risks inherent in this model, including the possibility that a Client’s future Brand Income may be lower than expected or that the Client could cease generating Brand Income , including as a result of injury or retirement,, which could result in little or no distributions on the Units.

 

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History and Structure

 

The Company was formed on November 3, 2025 as a Delaware series limited liability company. We are structured to issue separate series of limited liability company interests designated for individual athlete-linked investments. Under our Certificate of Formation and Operating Agreement, the Company may establish one or more series, each of which functions as a separate limited liability “cell” with segregated assets and liabilities pursuant to Section 18-215 of the Delaware Limited Liability Company Act. Each series will be created by the Manager executing a Series Designation to be appended to and become a part of the Company’s Operating Agreement, setting forth the specific terms of that series, including the series name, the Client and Brand Advisory Agreement to which it relates, the initial capital structure, and any fees applicable to that series. Upon formation, each series will be a separate legal entity, distinct from the Company itself and any other series, to the maximum extent provided by law. No series has any ownership interest in, or liability for, the assets of any other series, and creditors of one series have no claim against the assets of another series or the Company generally, provided that we observe certain separateness formalities, including separate records, bank accounts and operations for each series, as required under our Operating Agreement and Delaware law. See “Description of the Securities Being Offered” and “Risk Factors — Risks Related to This Offering and Ownership of Our Units — Series LLC liability shields are not guaranteed to be upheld in all jurisdictions or in bankruptcy” for more information.

 

Under Delaware law and to maintain the liability protections of our series structure, we are required to maintain certain formalities , including maintaining separate records and accounts for each series and providing notice of the series structure in the Company’s Certificate of Formation, which the Company has done. The Company will maintain each series’ records on a distinct basis and include the series separateness legend on contracts and documents where appropriate. Adhering to these requirements is both a legal obligation and a practical necessity to ensure that a court upholds the internal liability shields of each series.

 

From an investor’s perspective, purchasing units in a series provides an interest only in that particular series and its assets (primarily, the rights under that series’ Brand Advisory Agreement). Investors do not have any rights to share in the assets, liabilities, profits or losses of any other series or of the Company as a whole. Likewise, expenses and obligations incurred with respect to one series are borne solely by that series under our Operating Agreement, except that Company-level liabilities or expenses that are not readily associated with a particular series may be allocated among one or more series by the Manager in accordance with the Allocation Policy and the Operating Agreement. This series structure is central to our business model, as it allows each athlete-focused investment to stand on its own merits and financial results, without cross-collateralization or dilution by other projects. It also permits investors to select individual athletes (via their series) rather than investing in a pooled fund of multiple athletes.

 

Our Manager is Agentiq Sports, Inc. The Manager is responsible for the overall direction and operations of the Company’s business and has full authority under the Operating Agreement and applicable Series Designations to manage each series and the Company’s day-to-day affairs. In its role as Manager, Agentiq Sports, Inc. will perform or arrange for others to perform all managerial functions for each series, including identifying and sourcing potential Brand Advisory Agreement opportunities; conducting due diligence on prospective Clients, such as evaluating an athlete’s career prospects, character, contractual arrangements, compensation history and legal or league-rule considerations; negotiating and executing the Brand Advisory Agreements on behalf of each series; coordinating the launch of each series offering, including regulatory compliance, marketing of the offering and investor relations during the offering period; administering the BAA, including payment, reporting, audit, collection and enforcement rights; and overseeing the provision of Advisory Services to each Client during the Term. The Manager will also be responsible for accounting and financial reporting for each series, maintaining separate books and records for each series, managing series bank accounts, and ensuring compliance with ongoing SEC reporting requirements and other laws. Investors will not be involved in management; they are passive members of each series, and the Manager exercises sole decision-making authority for each series pursuant to the Operating Agreement and applicable Series Designations. See “Management” for more information.

 

Since formation, our activities have primarily involved corporate structuring, preparatory regulatory filings, and market research. The Manager has been developing our online investment platform and initiating discussions with potential athlete Clients and their representatives. The Company has not issued any Units or conducted any offerings prior to this Regulation A offering. We have executed the Series RC BAA and have identified and begun diligence on additional prospective Clients. The Company’s initial operating capital has been funded by the Manager or its affiliates to cover legal, accounting, and development costs. These organizational and offering-related expenses are expected to be reimbursed or paid by each series from offering proceeds once series are launched, as further described under “ — General Description of Series Level Operations.” below. To the extent any potential series offering does not proceed to completion, any expenses incurred in connection with that aborted offering will be borne by the Manager, not by the Company or any series.

 

Series Objectives

 

The objectives of each series in conducting their respective series offering are to:

 

  Deliver consistent cash flow: Target periodic distributions sourced from each series’ share of an athlete’s future on-field professional sports income under its Brand Advisory Agreement, recognizing there can be no assurance of attainment;

 

  Achieve long-term capital appreciation: Seek growth in investor value over time as athlete earnings progress across a career, while acknowledging the speculative, performance-dependent nature of returns;

 

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  Preserve capital: Emphasize protection of invested principal as an objective, while clearly disclosing that losses, including total loss, are possible in this high-risk, single-athlete series structure;

 

  Provide access and potential diversification: Enable investors to gain exposure to athlete income streams on a per-series basis and to build a diversified portfolio across multiple athletes and series over time; and

 

  Align operations with investor distributions: Apply proceeds by series (including client advances, fees, and reserves) to support execution of Brand Advisory Agreements and position each series to collect and distribute Brand Income when available.

 

Strategy

 

Our strategy is to identify and secure Brand Advisory Agreements with athletes who have strong potential for future professional earnings, and to finance those agreements through series offerings to investors. We intend to build a diversified portfolio of series across different sports and athlete profiles, while maintaining a disciplined approach to evaluating each opportunity on its own merits. Key elements of our strategy include:

 

  Focus on Early-Career Talent: We plan to primarily target athletes who are early in their professional journey – for example, players in their rookie or sophomore seasons, minor league players on the cusp of major league promotion, or collegiate athletes entering professional drafts. These individuals often have significant future earnings potential but may not yet have earned substantial salaries. By partnering with them early, our upfront investment can be relatively modest (compared to a seasoned star player), in exchange for a meaningful Brand Percentage of potentially growing income. Early-career athletes may also value the upfront capital and guidance more acutely, as they transition to the professional stage.

 

  Sport Diversification: While our initial efforts may concentrate on one or two disciplines, our model is applicable across the professional landscape. We anticipate engaging with athletes in sports such as football (NFL), basketball (NBA/WNBA), baseball (MLB), soccer (MLS or international leagues), and potentially others like golf, tennis, or combat sports, depending on demand and regulatory considerations. Diversifying across sports can help spread risk, as the dynamics of contracts and career lengths vary by sport (for example, baseball players have minor league development and arbitration years, whereas football players often have non-guaranteed contracts). Each sport also has its own seasonality and injury risk profile. By not concentrating solely in one sport, the Company as a whole (though each series is separate) can learn and adapt to different sports markets, and investors can choose which sports they want exposure to via different series.

 

  Selective Client Criteria: We will be highly selective in choosing Clients with whom to enter BAAs. Not every athlete will be a good fit for our model. We consider a variety of factors when evaluating a potential Client, including:

 

  The athlete’s current performance statistics and qualitative evaluation of their potential for a successful professional career , including projected career length, physical attributes such as age and health, and performance improvements over time. The Manager evaluates whether the athlete demonstrates potential for higher levels of success and earnings, including an upward trajectory in the athlete’s sport or standout talent that is not yet fully reflected in the athlete’s current compensation.

 

  The athlete’s reputation, personal character, and public image. Because each series will maintain a long-term contractual relationship with the Client, the Manager favors Clients who demonstrate professionalism, work ethic and a positive or marketable personal brand. Any history of off-field issues or conduct that could limit commercial opportunities or career advancement will be heavily weighed. The Manager also considers the breadth of the Client’s appeal to potential investors and the sports fan community, as that factor may affect the level of investor interest in the applicable series offering.

 

  The terms of the athlete’s existing or expected contracts and their financial needs. We will analyze any current professional contract for athletes already signed to a team and the athlete’s prospects for future contracts , including upcoming free agency eligibility or draft position. The Manager seeks to negotiate a Brand Percentage that provides potential upside to investors while remaining attractive to the Client. We also evaluate whether the amount of the Initial Advisory Payment we can offer through the applicable series offering is likely to be sufficient and compelling for the athlete’s purposes , which may include funding training expenses, insurance, family support or the monetization of future earning potential.

 

  Whether there are any league rules, NCAA regulations (for collegiate transitioning athletes), or legal impediments to entering the BAA. We ensure that the arrangement will not violate any contracts the athlete has , including standard player contract restrictions on assignment of income, or any governing rules. For example, some leagues might have policies about players assigning or pledging future salaries – we structure our agreements as revenue sharing to comply with such rules. If an athlete is in college, we would only proceed in a manner that does not jeopardize their eligibility , which may include deferring the arrangement until the athlete declares professional status or structuring the agreement in compliance with applicable Name/Image/Likeness regulations. These compliance checks are a crucial part of our due diligence.

 

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We intend to leverage the Manager’s network of sports industry contacts – including sports agents, trainers, scouts, former athletes, and other insiders – to source potential Client opportunities. The Manager’s team includes individuals with experience in sports management and marketing, which helps us identify candidates who meet our criteria and to approach them (or their representatives) in a professional manner. In some cases, athletes or agents may approach us through our Platform or marketing outreach, expressing interest in our program. We will maintain an objective evaluation process for all prospects, whether sourced internally or via inbound inquiry.

 

Once a potential Client is identified, our process generally involves the following steps: initial outreach and education regarding the structure and terms of the arrangement; mutual due diligence, during which the Manager evaluates the athlete’s background and prospects and the athlete and the athlete’s representatives evaluate the proposed terms; negotiation of key deal terms, including the Brand Percentage, Initial Advisory Payment amount, term and any special provisions; and execution of a letter of intent or term sheet. The Manager, or an affiliate of the Manager, may execute the Brand Advisory Agreement with the Client in principle before the series offering, with the agreement contingent on the successful closing of the offering. In such cases, the BAA or a rights assignment from the Manager will be assigned to the specific series at closing of the offering. This approach allows us to secure the commitment of the athlete while still complying with securities laws , as investor funds may not be deployed until after the offering closes. If the offering for that series fails to raise the minimum required amount, the agreement would not go into effect or would be nullified and any abort costs incurred would be borne by the Manager as noted above. The Company intends to bring to market only those series offerings for which the Manager has a reasonable basis for concluding that the underlying BAA represents a viable investment opportunity.

 

We plan to launch a number of series in the next 12 to 24 months, subject to market conditions and investor demand. Our intention is to offer new series on a rolling basis – potentially several in parallel across different sports – via the Platform. By staggering series launches, we can maintain continuous offerings and grow our overall business. However, we will only proceed with a series when an appropriate Client has been secured and when we believe the offering has a reasonable likelihood of success. At this time, it is difficult to predict the exact number or timing of series we will introduce, especially as we are in the inaugural stages of this model. Currently, we anticipate launching 10 to 20 series in 2026 and another 20 series in 2027; however, we cannot guarantee that we will be successful in meeting this objective. We will monitor investor reception and may adjust the pace of new offerings accordingly. We initially intend to focus on Major League Baseball and MLB athletes, then expand into other sports.

 

MLB Salary System and Target Market Considerations

 

Because we initially intend to focus on Major League Baseball and MLB athletes, we consider MLB’s compensation structure, service-time rules, salary arbitration process, free agency rules, and collective bargaining framework when evaluating prospective Clients and estimating potential Brand Income. These factors may affect the amount, timing, predictability and collectability of payments under a Brand Advisory Agreement, as well as whether any league, player-contract, collective bargaining or other restrictions could affect the structure or enforcement of the arrangement.

 

Unlike the NFL and NBA, Major League Baseball does not impose a hard salary cap. Instead, MLB utilizes a Competitive Balance Tax, commonly referred to as the “luxury tax,” which imposes escalating financial penalties on clubs whose payrolls exceed a predetermined threshold. For the 2026 season, the Competitive Balance Tax threshold is $244 million. The MLB minimum salary for the 2026 season is $780,000. There is no maximum individual player salary in MLB.

 

Pre-Arbitration Period

 

Players with fewer than three years of Major League service time are generally paid at or near the league minimum salary. During this period, a player’s compensation is largely determined by his team, subject to the collectively bargained minimum. A pre-arbitration bonus pool of $50 million is distributed annually among eligible pre-arbitration players based on performance metrics and awards.

 

Salary Arbitration

 

Players who have accumulated three or more years, but fewer than six years, of Major League service time are eligible for salary arbitration. In arbitration, the player and the team each submit a proposed salary figure to an independent arbitration panel, which selects one of the two figures. “Super Two” players — those in the top 22% of service time among players with between two and three years — may become arbitration-eligible after their second full season. Arbitration-eligible players typically see significant salary increases, with salaries determined by comparable players at similar service-time levels.

 

Free Agency

 

Upon accumulating six years of Major League service time, a player becomes eligible for free agency and may negotiate with any of the 30 Major League clubs. Free agent contracts are uncapped in both length and total value, although the Competitive Balance Tax may influence team spending decisions. Free agency represents the period during which a player’s earning potential is typically maximized.

 

Accordingly, when evaluating an MLB Client, we expect to consider the Client’s service-time status, current and projected salary level, arbitration or free-agency timeline, potential contract comparables, and any applicable CBA, club-contract, league-rule or payroll restrictions that could affect Brand Income or payment mechanics.

 

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MLB Players Association and the Collective Bargaining Agreement

 

MLB players are represented by the Major League Baseball Players Association, a labor union that negotiates on behalf of current and future Major League players. The current Collective Bargaining Agreement between the MLB Players Association and the 30 Major League clubs covers the 2022 through 2026 seasons and expires on December 1, 2026. The CBA governs minimum salaries, arbitration procedures, free agency eligibility, revenue sharing, the Competitive Balance Tax and other matters. MLB rules, player-contract terms, payroll practices, and current or future collective bargaining agreements may affect whether, when and how Brand Income can be directed, collected or shared under a Brand Advisory Agreement, and we will consider these matters as part of our due diligence and structuring process.

 

The Agentiq Platform

 

All of our offerings and investor interactions take place through the Agentiq Sports online investment platform located at www.agentiqsports.com, which is owned and operated by the Manager. The Platform is also accessible through our mobile applications for iOS and Android devices, and is designed as a user-friendly online marketplace where investors can learn about each series offering, subscribe for Units, and thereafter manage their holdings. Key features of the Platform include:

 

  Offering Information and Education: For each series offering, the Platform provides a dedicated page or section containing the Offering Circular, a summary of the opportunity , including the particular athlete Client’s background, the key terms of the Brand Advisory Agreement, risk factor highlights and offering terms such as price per Unit, minimum investment amount and offering deadline. Investors can review this information at their own pace and are encouraged to carefully consider all disclosures. We will also include educational content about the general risks of investing in athlete income streams and the nature of our Units, to help investors make informed decisions.

 

  Electronic Subscription Process: Investors will subscribe through the Platform via an electronic workflow. This involves creating a user account, completing identity verification (including any required “Know Your Customer” and anti-money laundering checks), and filling out a subscription agreement online. Non-accredited investors will be guided through a short questionnaire to ensure compliance with the Regulation A investment limits (no more than 10% of income or net worth, unless accredited). The Platform will clearly indicate these limits and require investor representations in this regard. Funding of the investment can be done through integrated payment options such as ACH bank transfer, wire, or other methods supported on the Platform. Investor funds for each offering will be held in a segregated escrow account with our appointed escrow agent (North Capital Private Securities Corporation) until the closing of that series offering.

 

  Notification and Closing: The Platform will notify investors of their subscription status. The Manager, or an affiliate performing administrative duties on its behalf, will review subscriptions and has the right to reject any subscription in whole or in part, including where suitability concerns or compliance issues arise. Upon acceptance and once the offering closes , meaning the minimum funding threshold has been met and the offering has been qualified by the SEC,, investors are issued the corresponding Units, and the Platform will update their account to reflect the number of units held. If an offering is oversubscribed or does not close, the Platform will facilitate appropriate refunds or adjustments per the terms of the offering. Investors will receive confirmations and periodic updates through the Platform, and all contractual documents , including countersigned subscription agreements and the Operating Agreement, will be made available electronically for their records.

 

  Post-Offering Investor Dashboard: After investing, users can log into the Platform to view their portfolio of Units, including details such as the number of units owned, the series name (athlete), and any distributions received or pending. The Platform will provide ongoing SEC mandated disclosures such as annual reports (Form 1-K), semi-annual reports (1-SA), current reports (1-U), and any other investor communications. We intend to use the Platform as a primary channel for disseminating information to our investors, in compliance with SEC requirements (investors may be notified via email and directed to the Platform for new reports or updates). Additionally, the Platform may show performance metrics such as the amount of Brand Income received by a series to date, and any estimated valuation metrics, though investors should note these are informational and not a guarantee of market value.

 

  Secondary Market: Initially, there will be no public trading market for any Units, and the Platform is not expected to support secondary transactions. The operating agreement permits, but does not require, the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series. If the Manager approves an ATS for a Series, Units of that Series may be eligible to trade through the approved ATS, subject to applicable law, the rules and procedures of the ATS, the Company’s transfer agent arrangements, and any conditions or procedures established by the Manager from time to time. The Manager may also suspend, limit or condition transfers through an approved ATS if the Manager determines that doing so is necessary or appropriate to comply with applicable law, protect the Company or any Series, preserve the status of the Company or any Series for tax, regulatory or other purposes, or administer the books and records of the Company or any Series. Investors should not assume that any ATS will be approved or available, that any Units will be listed or eligible for secondary trading, or that an active, liquid or sustained secondary market for the Units will develop. As of now, investors should plan to hold their Units indefinitely or until the series is liquidated, and the Platform’s functionality is focused on primary issuance and holding, rather than trading.

 

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Through the Platform, the Manager aims to provide a seamless end-to-end experience: from discovering an offering, through investment, and into the ongoing management phase where investors can track the performance of their investment. The Platform also enables the Manager to efficiently manage a potentially large number of investors across many series, using technology to reduce administrative burden (for example, automating distribution calculations or annual tax information dissemination, if applicable). All user data and transactions on the Platform are secured and subject to our privacy policy and industry-standard data protection measures.

 

It is important to clarify that the Platform itself is not a registered broker-dealer or funding portal. Instead, the Company has engaged a registered broker-dealer, Andes Capital Group LLC, to serve as the broker-of-record for our offerings and to provide certain compliance and supervisory services. The Platform operates under the oversight of this broker-dealer arrangement, ensuring that transactions are conducted in compliance with securities laws and regulations. Investor funds in escrow are handled by a qualified third-party escrow agent (North Capital) until release at closing. By structuring the Platform in this manner, we combine a modern, direct investment interface with the regulatory safeguards of traditional securities intermediaries.

 

Plan of Operations

 

Against the prior market backdrop, over the next year, our plan of operations includes: (1) launching our first series , or initial set of series, and closing those offerings; (2) deploying the series offering proceeds to the respective Clients and commencing the brand advisory services for those Clients; (3) collecting initial Brand Income payments . The timing of initial Brand Amount payments will depend on each Client’s earnings cycle; in-season salaries may yield payments within months of closing, whereas an off-season closing may result in a delay; (4) distributing any available cash to investors as per our distribution policy , which the Manager anticipates will begin only after sufficient Brand Amount payments have been received and necessary reserves have been established; (5) expanding our pipeline by signing additional BAAs or term sheets with new athletes to feed subsequent series offerings; and (6) continuously improving our Platform and operational systems based on feedback and observed needs , including adding features to automate reporting and refining the Company’s marketing approach to expand investor reach. We will also ensure compliance with all required filings and corporate governance formalities as we grow. The Manager expects to hire or contract additional personnel in areas such as sports talent scouting, marketing, and investor relations as the number of series increases, in order to maintain quality of service to both Clients and investors.

 

Brand Advisory Agreements

 

Each series will operate by entering into a Brand Advisory Agreement with a single Client, typically a professional athlete, at or about the time the series’ offering commences. The Brand Advisory Agreement, sometimes referred to as the BAA, is the core asset of each series. Under each BAA, the series agrees to provide two main forms of value to the Client: (i) a cash payment to the Client (the “Initial Advisory Payment”), a portion of which may be partially payable upon execution of the BAA and a portion of which may be funded from the proceeds of that series’ offering, and (ii) ongoing strategic brand enhancement and promotional advisory services (the “Advisory Services”) for the benefit of the Client. Where all or a portion of the Initial Advisory Payment is payable upon execution or prior to the closing of the series’ offering, we expect that each such series will fund such initial partial payment via an advance from the Manager in exchange for a convertible promissory note (see “ Manager Advances and Promissory Notes” below for more information); in such cases, the applicable series offering will generally have no Minimum Offering Amount and subscription funds will not be held in escrow pending a minimum offering threshold. Where the Initial Advisory Payment is payable upon the initial closing of the applicable series’ offering (without a Manager advance), there will be a minimum offering amount and subscription funds will be held in escrow pending the achievement of that threshold, as contemplated by the form BAA and the applicable Series Designation. In exchange, the Client sells, assigns and grants to the series, as of the Commencement Date and continuing through the Term, the contractual right to receive the Brand Amount, equal to the applicable Brand Percentage of the Client’s Brand Income. Brand Income generally includes any and all gross monies, compensation, or other consideration earned by or payable to the Client after the Commencement Date solely as a result of the Client’s direct participation, performance, or employment as a professional athlete in the Client’s Principal Business, including base salary, signing bonuses, performance bonuses, prize or award money, and any other earnings directly attributable to the Client’s on-field activities and services as a professional athlete. In calculating Brand Income, such amounts are net of: (i) any reasonable, documented out-of-pocket legal fees incurred by the Client in securing, negotiating, or documenting any contract that generates such income (to the extent not reimbursed by a third party); (ii) any reasonable, documented travel, lodging, and per diem expenses incurred by the Client during the Term in connection with securing such income (to the extent not reimbursed by a third party); and (iii) any self-employment taxes owed by the Client in connection with such income (subject to a FICA-equivalent cap); but without deduction for any commissions or fees payable to agents or representatives, any voluntary or elective deferrals or contributions by the Client, or any taxes payable on the Client’s gross income. Brand Income expressly excludes Excluded Income, which includes (a) all proceeds from any life, disability, or injury insurance policy purchased or in effect after the Commencement Date, (b) all compensation or earnings attributable to services performed by the Client prior to the Commencement Date (regardless of when paid), (c) any reimbursement or payment for reasonable, documented incidental expenses (such as travel, lodging, or per diem), and (d) all compensation, fees, royalties, or other consideration for endorsements, sponsorships, personal appearances, speaking engagements, licensing of name, image, or likeness (“NIL”), merchandising, or any other off-field commercial activities, regardless of whether related to the Client’s persona or reputation as an athlete. If a single contract, payment or item of consideration includes both Brand Income and Excluded Income, the applicable BAA requires the parties to allocate the compensation in good faith and on a commercially reasonable basis; provided that, absent manifest error, the series’ reasonable determination will control pending final resolution, subject to audit and dispute procedures. Compensation paid by teams/leagues to the Client in exchange for on-field services is presumed to be Brand Income unless clearly and expressly documented as off-field consideration unrelated to on-field services. This structure is intended to align the series’ interests with the Client’s sports career performance while preserving for the Client the upside from separate off-field personal brand ventures.

 

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The form of Brand Advisory Agreement filed as an exhibit to the offering statement is drafted on a sport-neutral basis, with blanks for the Client’s sport, the applicable leagues, and sport-specific constructs. The Client’s Principal Business is defined to mean the Client’s primary professional occupation as a professional athlete in the applicable leagues specified in the BAA. The form BAA incorporates constructs that may or may not be applicable to all professional athletes. To the extent the Company launches series in connection with athletes in other professional sports, the form of Brand Advisory Agreement is expected to be adapted to reflect the applicable sport, league structure and related definitions, and the description of the form BAA in this Offering Circular should be read accordingly.

 

Funding, Commencement and Adjustment Mechanics

 

When a new series is launched, it raises capital from investors through the sale of Units. The primary use of offering proceeds is to fund the series’ upfront obligations under the Brand Advisory Agreement with its Client, including all or the remaining portion of the Initial Advisory Payment not previously funded through a Manager advance. Under the form BAA, the Initial Advisory Payment may be funded in one or more tranches, with an initial amount paid within thirty (30) days following the Effective Date (which initial amount may be funded via a Manager advance as described above under “ Manager Advances and Promissory Notes”) and the remaining balance guaranteed by the series and payable by the Outside Date. The Outside Date is defined as the earlier of (i) the date that is five (5) months following the date on which the SEC issues a notice of qualification for the series offering under Regulation A (the “Qualification Date”) and (ii) the date that is twelve (12) months following the Restatement Date. The remaining balance may be funded from the proceeds of the series offering; to the extent the series offering does not generate sufficient proceeds to pay the remaining balance in full by the Outside Date, the series is obligated to pay any shortfall from its own funds. The series’ obligation to pay the remaining balance by the Outside Date is unconditional and is not subject to the occurrence of the Initial Closing or any closing of the series offering; provided, however, that the sole and exclusive consequence of the series’ failure to pay the full Initial Advisory Payment by the Outside Date (whether such failure results from insufficient proceeds of the series offering, inadequacy of the series’ other funds, or any other reason) is the automatic adjustment described below, and neither party has any other right, remedy, or claim with respect to any unpaid portion of the Initial Advisory Payment after the Outside Date. Where a Manager advance is used to fund all or a portion of the Initial Advisory Payment prior to the Initial Closing, the Commencement Date of the BAA will be the date on which the Manager first pays any portion of the Initial Advisory Payment to the Client (whether funded through a Manager advance or from offering proceeds), and the Client’s obligation to pay the Brand Amount and the series’ obligation to provide Advisory Services commence at that time. Where no Manager advance is used and the Initial Advisory Payment is payable in full upon the Initial Closing, the Commencement Date will be the date of the Initial Closing, which will occur when the series raises the Minimum Offering Amount necessary to make the initial or full payment under the applicable BAA.

 

If the full Initial Advisory Payment has not been paid by the Outside Date, the form BAA automatically: (i) fixes the Initial Advisory Payment at the aggregate amount actually paid to the Client on or prior to the Outside Date (the “Funded Amount”), with neither party having any further obligation or liability with respect to any unpaid portion, and (ii) adjusts the Brand Percentage to equal the product of the Brand Percentage as originally set forth multiplied by a fraction, the numerator of which is the Funded Amount and the denominator of which is the full Initial Advisory Payment (such adjusted percentage, the “Adjusted Brand Percentage”). Under the form BAA, neither party has any right to terminate the BAA solely on account of the failure of the Initial Closing or the Qualification Date to occur, or on account of the series’ failure to pay the full Initial Advisory Payment, by the Outside Date. For example, if Series RC has paid $600,000 of a $1,200,000 contemplated Initial Advisory Payment, the adjusted Brand Percentage would be 50% of the originally contemplated Brand Percentage. The form BAA provides that any resulting adjustment is self-executing, requires no further calculation, notice, consent, or amendment; provided that the series shall notify the Client of the Adjusted Brand Percentage as calculated from the series’ books and records (which calculation shall be controlling absent manifest error), and the Client may request reasonable supporting documentation to verify such calculation. The form BAA further provides that the adjustments apply regardless of the reason the series has not paid the full Initial Advisory Payment by the Outside Date, and effective as of the Outside Date, each party irrevocably waives and releases any and all claims, demands, or causes of action (whether at law, in equity, in contract, in tort, or otherwise) against the other party arising out of or relating to the series’ failure to pay the full Initial Advisory Payment, including any claim for breach of the series’ payment obligation.

 

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Manager Advances and Promissory Notes

 

In connection with the execution of a Brand Advisory Agreement, the Manager may advance amounts to a series to fund series purposes consistent with the Operating Agreement and the applicable Series Designation, including funding all or a portion of the Initial Advisory Payment due to the Client under the BAA, Offering Expenses or Operating Expenses, in each case prior to or independent of the closing of the series’ offering. Such advances allow the series to meet its obligations and to commence the BAA relationship in advance of, or independent from, the receipt of offering proceeds. In exchange for any such advance, the series will issue to the Manager a convertible promissory note (a “Manager Promissory Note”) evidencing the amounts advanced. Each Manager Promissory Note will bear interest at the per annum rate set forth therein (computed on the basis of a 360-day year of twelve 30-day months); provided that if any portion of the advance constitutes an Operating Expense Reimbursement Obligation under the Operating Agreement, the interest rate shall not be less than the Applicable Federal Rate then in effect for instruments of comparable term. Each Manager Promissory Note will mature on the earlier of the date on which the applicable series’ offering terminates or is completed, and the outstanding principal and accrued but unpaid interest will be repaid from the net proceeds of the series’ offering within fourteen (14) days following such maturity date; provided, however, that no series shall be required to make any payment on its Manager Promissory Note until after the series has paid the full Initial Advisory Payment to its Client under the applicable BAA. The Manager may, at its option and upon not less than ten (10) Business Days’ prior written notice, convert all or a portion of the outstanding principal and accrued but unpaid interest under a Manager Promissory Note into Units at the offering price per Unit in the series’ offering. Each Manager Promissory Note is an unsecured obligation solely of the applicable series, with limited recourse only to the assets associated with that series and no recourse to the Company or any other series. See “Risk Factors — Risks Related to Conflicts of Interest — If a series’ Operating Expenses exceed its revenues, investors may experience reduced distributions or dilution” and “Risk Factors — Risks Related to Conflicts of Interest — The Manager may hold Units or other financial interests that could diverge from the interests of other investors” for more information.

 

Payment and Security Terms

 

The BAA obligates the Client to pay the Brand Amount, equal to the applicable Brand Percentage of all Brand Income during the Term. To facilitate collection, each BAA establishes a primary collection mechanism through (i) the deposit of one hundred percent (100%) of the Client’s Brand Income directly into a dedicated deposit account (the “Participation Account”) maintained at a bank or financial institution willing to execute the Account Control Agreement and otherwise reasonably acceptable to the series, subject to a springing Account Control Agreement among the Client, the series (acting through the Manager) and the Depositary bank designated for that purpose (the “Designated Bank”), and (ii) an automatic recurring transfer, established and maintained by the Client, of the Brand Amount from the Participation Account to an account designated by the series (the “Company Account”) on a bi-weekly basis. The Client is required to open and maintain the Participation Account, execute and deliver the Account Control Agreement providing for springing control, designate and direct all Brand Income to be deposited directly into the Participation Account (including by establishing direct deposit with and delivering payment directions to each payor of Brand Income), and establish and maintain the automatic bi-weekly transfer.

 

Under the springing control structure, the Account Control Agreement is a three-party agreement among the series (acting through the Manager), the Client, and the Designated Bank, providing that: (1) the Designated Bank acknowledges the series’ security interest in the Participation Account; (2) the Client retains ordinary control over the Participation Account, including the right to operate the account and direct the disposition of funds therein, unless and until a Control Trigger Event occurs; (3) upon a Control Trigger Event, the series or the Manager may deliver a notice of exclusive control to the Designated Bank, after which the Designated Bank will comply solely with instructions of the series or the Manager and will not comply with instructions of the Client; and (4) the Designated Bank subordinates, and agrees not to exercise, any right of setoff, recoupment, or banker’s lien against the Participation Account, except with respect to returned items, chargebacks, and the Designated Bank’s customary account fees and charges. A “Control Trigger Event” means a payment default by the Client that remains uncured beyond the thirty (30) day cure period set forth in the BAA. While a notice of exclusive control is in effect, within the Sweep Deadline after any Brand Income is credited to the Participation Account, the Manager, on behalf of the series, will instruct the Designated Bank to sweep the Brand Amount and any other amounts then due to the series to the Company Account and release the remaining balance to the Client’s personal account. Once the applicable payment default has been cured, control of the Participation Account springs back to the Client and the series or the Manager shall promptly rescind any notice of exclusive control.

 

The series’ control over the Participation Account is solely for collection, verification, sweep, release, and enforcement purposes; the series does not have any ownership interest in the Release Amount or any other funds released to the Client. If Brand Income is not deposited into the Participation Account, or any Brand Amount is not transferred to the Company Account, for any reason (including by reason of a Collection Failure, the absence of an effective Account Control Agreement, the failure of any payor to deposit Brand Income into the Participation Account, the failure or cancellation of the automatic bi-weekly transfer, or any direction by the Client in contravention of the BAA), the Client must receive such Brand Income as agent of the series, hold the Brand Amount portion in trust for the series and remit it to the series by wire transfer within fifteen (15) days after receipt.

 

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Each BAA also grants the series a continuing security interest in the Client’s right, title and interest in the following collateral (collectively, the “Collateral”): (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income, (b) the Participation Account and any successor accounts, and all funds credited therein, (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement, and (d) all proceeds of the foregoing. The security interest attaches immediately upon the series’ payment to the Client of any portion of the Initial Advisory Payment (including the initial installment), and partial payment of the Initial Advisory Payment is sufficient to cause attachment, with the security interest securing all present and future obligations of the Client under the BAA. The series may file UCC-1 financing statements and enter into related control agreements and acknowledgments to perfect, maintain and enforce its security interest, subject to the adjustment mechanics described below if less than the full Initial Advisory Payment is funded by the Outside Date.

 

The form BAA provides that the security interest shall not extend to, attach to, or otherwise encumber any Excluded Income, any funds held in or credited to the Client’s personal account, or any other assets, property, income, or rights of the Client that do not constitute the specified Collateral categories. The series shall not exercise any rights or remedies with respect to the security interest — other than actions necessary to create, perfect, continue, or maintain perfection — unless and until a payment default has occurred and remains uncured beyond the thirty (30) day cure period. Any UCC-1 financing statement filed in connection with the BAA shall describe the Collateral solely by reference to the specific categories set forth in the security section, and shall not describe the Collateral as “all assets,” “all personal property,” or using any similarly broad or generic description.

 

Failures to establish, maintain or give effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer of the Brand Amount to the Company Account, or the Account Control Agreement are Collection Failures under the BAA, including any revocation, modification, redirection, termination, obstruction, suspension, or failure to renew any such direct deposit, automatic transfer, or Account Control Agreement (except to the extent caused solely by the series’ breach). Intentional diversion or redirection of Brand Income away from the Participation Account is an immediate material breach with no cure period. Because the Account Control Agreement operates on a springing-control basis, the series does not have exclusive control over the Participation Account unless and until a Control Trigger Event occurs (i.e., a payment default remaining uncured for 30 days), which means that the Client retains ordinary account access during periods of compliance. This structure, while designed to balance the Client’s day-to-day banking needs with the series’ collection rights, may increase the risk that Brand Income is withdrawn or diverted before the series can assert control. These measures are intended to minimize non-payment risk by creating direct payment streams into a controlled account and giving the series a secured contractual claim against the Collateral; however, enforcement could be subject to legal or practical limitations, including league rules, collective bargaining agreement requirements, payroll policies, payor refusal or applicable law, and may require legal action or arbitration against a defaulting Client.

 

Any intentional revocation, redirection or diversion of Brand Income away from the Participation Account by the Client constitutes an immediate material breach of this Agreement, with no cure period, entitling the series to exercise all remedies under the form BAA, including termination, recovery of unpaid Brand Amounts and equitable relief. Any unauthorized cancellation, revocation, reduction, suspension or modification of the direct deposit designation or the automatic bi-weekly transfer, or any closure or replacement of the Participation Account without the series’ prior written consent, constitutes a Collection Failure and a material breach entitling the series to all remedies available under the BAA. In addition, if any Brand Amount (or portion thereof) is not timely swept, deposited, released or remitted when required under the BAA and is not cured within the thirty (30) day cure period, the following late fees apply as liquidated damages: (i) for amounts unpaid for twenty (20) days or fewer, no late fee (grace period); (ii) for amounts unpaid for more than twenty (20) days but not more than thirty (30) days, a late fee equal to the greater of $5,000 or five percent (5%) of the unpaid Brand Amount; (iii) for amounts unpaid for more than thirty (30) days but not more than sixty (60) days, a late fee equal to the greater of $15,000 or ten percent (10%) of the unpaid Brand Amount; and (iv) for amounts unpaid for more than sixty (60) days, a late fee equal to the greater of $25,000 or fifteen percent (15%) of the unpaid Brand Amount, plus, at the series’ election, acceleration of all Brand Amount obligations payable in respect of Brand Income reasonably anticipated to be earned through the end of the then-current calendar year. In addition to the foregoing late fees, the unpaid amount accrues interest in favor of the series from the date due until the date paid at the lesser of (a) the prime rate plus 3% per annum, compounded monthly, and (b) the maximum rate permitted by applicable law. Under the form BAA, any late fees and accrued interest, when owed, constitute amounts due and payable by the Client and may be collected directly from the Participation Account by the Manager instructing the Designated Bank to transfer such amounts to the Company Account in the same manner as the Brand Amount. All amounts payable by the Client to the series under the BAA are required to be paid in full without set-off, deduction or counterclaim, except as expressly provided in the BAA. The Client is responsible for any taxes applicable to the Client’s receipt of Brand Income, and Brand Amount payments are required to be made without deduction for taxes except to the extent withholding is required by law; if the Client is required by law to withhold any portion of a Brand Amount payment, the Client must promptly notify the series, provide evidence of withholding and remittance, and cooperate so the series receives credit for such tax payment, with amounts withheld and paid to the taxing authority on the series’ behalf treated as paid to the series for purposes of the Client’s obligations. The form BAA also requires the series to indemnify and hold the Client harmless from any taxes imposed on the series (as a separate taxpayer) that are sought from the Client solely because the Client failed to withhold such taxes from payments to the series, provided the Client has complied with its obligations under the applicable section.

 

Under the form BAA, while a notice of exclusive control is in effect, the series or the Manager may instruct the Designated Bank to sweep the Brand Amount and any other amounts then due to the series within the Sweep Deadline (three (3) business days after Brand Income is credited to the Participation Account, or such other period as the parties may agree in writing). If, as of the Outside Date, less than the full Initial Advisory Payment has been paid to the Client and the Brand Percentage is adjusted to the Adjusted Brand Percentage, the series is required, promptly following the Outside Date, to file an amendment to each UCC-1 financing statement then on file to reflect the resulting proportionate reduction in the Brand Amount and the Collateral, demonstrating that the security interest is self-limiting and contracts in proportion to the portion of the Initial Advisory Payment actually funded, and to provide the Client with evidence of such filing upon request.

 

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Collection Timing and Series Accounts

 

After the series is in operation, its revenue will come exclusively from Brand Amount payments made by or on behalf of the Client under the BAA. The timing and frequency of those payments will depend on the Client’s actual earnings schedule, such as periodic salary payments, signing bonuses, performance bonuses, prize or award money or other Brand Income. As described above, the BAA uses the Participation Account, the direct deposit of Brand Income, the automatic bi-weekly transfer and the Account Control Agreement (on a springing-control basis) as the primary collection mechanism, with direct remittance by the Client as the fallback mechanism if Brand Income is not deposited into the Participation Account or any Brand Amount is not transferred to the Company Account. All Brand Amount payments received by a series will be deposited into a dedicated bank account for that series, separate from other series’ accounts. We have policies to ensure funds are not commingled: each series’ cash is tracked independently on our ledger and held either in separate accounts or sub-accounts titled in the name of that series.

 

The BAA’s fallback remittance, reconciliation, Collection Failure, late-payment interest and late fees, disclosure-of-material-breach, security and enforcement provisions are designed to address situations in which Brand Income is not deposited into the Participation Account or the Client otherwise fails to pay when required. The Client must cooperate with the series, the Manager, the Designated Bank and each payor to implement, confirm, renew or replace the direct deposit of Brand Income, the automatic bi-weekly transfer and the Account Control Agreement as necessary to preserve the series’ economic and collection rights to the maximum extent practicable. These contractual tools support collection, but our preference is to have an agreed flow of funds through the Participation Account without resorting to enforcement actions.

Investors should be aware that initial Brand Amount payments might not be received immediately after an offering. There could be a lag if, for example, the series closes in an off-season or if the athlete is not yet under an income-producing contract, or while the Participation Account, the direct deposit of Brand Income and the Account Control Agreement are being put in place with the applicable payor(s). In such cases, the series might not see significant inflows until the athlete’s season starts or the athlete signs a new contract and Brand Income begins to be deposited into the Participation Account. We will disclose in each series description the expected timing of Brand Amount payments to the extent known, including the expected frequency and commencement date of Brand Amount payments based on the Client’s then-current contract terms. Nonetheless, unexpected delays or gaps can occur, and there is no guarantee of steady cash flow. See “Risk Factors — Risks Related to This Offering and Ownership of Our Units — Distributions, if any, will vary and may be delayed, reduced, or suspended” and “Risk Factors — Risks Related to Our Business and Industry — Payment mechanics and security interests may not perform as intended under league, union, or state-level constraints” for more information.

 

Services Provided to Clients

 

As part of each Brand Advisory Agreement, the series (acting through the Manager and its affiliates, contractors or agents) will provide Advisory Services to the Client designed to enhance the Client’s personal brand and commercial opportunities. These services may include evaluation and development of the Client’s personal brand positioning, planning and execution of fan engagement initiatives, preparation and readiness consulting for sponsorships, endorsements and other commercial opportunities related to the Client’s persona, development and execution of marketing campaigns and content to increase the Client’s public visibility and marketability, and ongoing advisory support regarding the Client’s branding and promotional activities. The Advisory Services expressly exclude services that require certification or licensing as a player agent, contract advisor or similar professional representative under applicable league, players’ association or regulatory rules, and neither the Company, any series nor the Manager will negotiate, secure or execute employment contracts, playing contracts or similar agreements on behalf of a Client where such certification or licensing is required. Each BAA also provides that the series may fund brand-enhancement initiatives agreed upon by the parties, with the budget and expenditures determined by the Manager in consultation with the Client and at the series’ discretion.

 

As part of the Client’s participation in the Advisory Services, the Client is required under the form BAA to meet (which may be by teleconference or videoconference) with representatives of the series or the Manager on a periodic basis, at least bi-annually (twice a year), to review recent developments and to plan upcoming brand strategy and initiatives. the Client is also required to provide three hundred (300) autographed items (which may include photographs, memorabilia, trading cards, jerseys, or other items designated by the series) for use in connection with fan engagement initiatives, promotional campaigns, or the series offering. During each calendar year of the Term, the Client agrees to participate in one (1) in-person fan engagement event organized by the series (a “Fan Meet-Up”), not to exceed four (4) hours in duration (excluding reasonable travel time), with at least thirty (30) days’ prior written notice. At the series’ reasonable request and subject to the Client’s professional schedule, the Client is also required to participate in up to two promotional events or media appearances per calendar year (including any Fan Meet-Up) to help promote the brand partnership or the Company’s platform, with the specific nature and timing of any such activities to be mutually agreed, no separate compensation payable beyond the consideration provided in the BAA, and reimbursement by the series of reasonable pre-approved travel or lodging expenses incurred for an agreed event.

 

In addition, the series shall commit advertising and media resources to promote and grow the Client’s personal brand and social-media presence, and the series anticipates spending in excess of an amount specified in each applicable BAA on advertising and media that feature the Client and are designed to drive social awareness of the Client and the Client’s brand and to grow the Client’s social-media following.

 

If less than the full Initial Advisory Payment is funded, the form BAA provides for the scope and extent of Advisory Services (including the frequency of planning meetings and the budget for brand-enhancement initiatives) to be reduced on a pro rata basis in proportion to the Funded Amount relative to the full Initial Advisory Payment. There is no guarantee that Advisory Services or funded initiatives will have any material effect on a Client’s earnings, performance, fame or commercial opportunities.

 

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Term and Termination; Clawback Provisions

 

Each Brand Advisory Agreement is expected to remain in effect for a significant duration to cover a substantial portion of the Client’s career. Unless otherwise specified for a particular series, the Term of each BAA will commence on the Effective Date and continue until the earlier of (i) the date that is two years after the Client’s official retirement or permanent cessation from actively engaging in the Client’s Principal Business , provided that if the Client resumes the Principal Business at any time during such two-year tolling period the BAA will not terminate under this clause (i), and (ii) the 25th anniversary of the Effective Date. The form BAA also provides that rights and obligations with respect to Brand Income earned during the Term survive expiration or early termination until fully satisfied.

 

If the Client voluntarily ceases to engage in the Principal Business prior to the fifth anniversary of the Effective Date, other than for Good Reason as defined in the BAA, the Client must repay to the series, as liquidated damages, an amount equal to the aggregate Initial Advisory Payment actually received by the Client, plus interest from the date of early cessation to the date of repayment at the lesser of (a) the prime rate plus 5% per annum, compounded monthly, and (b) the maximum rate permitted by applicable law, minus all Brand Amount payments actually made by the Client to the series before the early cessation. Notwithstanding the foregoing, the repayment amount is reduced by fifteen percent (15%) for each of the first six (6) full years of the Client’s participation in the Principal Business following the Effective Date, and by an additional ten percent (10%) for the seventh (7th) full year, such that no amount shall be repayable from and after the seventh (7th) anniversary of the Effective Date; and, in addition, no amount shall be repayable if, as of the date of such early cessation, the aggregate Brand Amount payments actually made by the Client to the series equal or exceed the sum of the aggregate Initial Advisory Payment actually received by the Client plus a twenty percent (20%) per annum internal rate of return thereon. “Good Reason” exists only if the Client’s exit is due to a significant, documented injury, illness, or medical condition (including a documented mental-health condition) that renders the Client physically or mentally unable to continue performing in the Principal Business or that would pose a substantial risk of permanent harm to the Client’s physical or mental health beyond the ordinary risks of the profession.

 

The BAA also contains provisions addressing the continuation or reinstatement of revenue sharing if the Client resumes participation in the Principal Business after the Term, including payments through a Revenue Share Trust, as further described in the BAA and the Operating Agreement. Under the form BAA, the Manager serves as sole trustee of the Revenue Share Trust, the former members of the series are the beneficiaries, and disbursements from the trust, net of any trust operating costs and expenses, are made on the same terms, timing, methodology and waterfall as Brand Percentage payments under the BAA.

 

The BAA provides separate termination and enforcement rights for material breaches, including payment defaults, breaches of the exclusive relationship covenant, uncured Collection Failures (which must be cured within seven (7) business days after written notice), failure to maintain the Account Control Agreement, the direct deposit of Brand Income or the automatic bi-weekly transfer, and intentional diversion or redirection of Brand Income away from the Participation Account; in each case the non-breaching party may terminate the BAA following a 30-day cure period (or a shortened 10-day cure period in the case of a payment default or breach of the exclusive relationship covenant) after written notice describing the breach, except that intentional diversion or redirection is an immediate material breach with no cure period. See “Description of the Series and Their Assets” and “Risk Factors — Risks Related to Our Business and Industry” for more information.

 

Other Terms and Conditions

 

Our Brand Advisory Agreements contain various other customary provisions to protect our interests and govern the series’ ongoing relationship with the Client. These include:

 

Reporting and Audit Rights: The Client will be required to provide semi-annual reports to the series regarding the Client’s professional income and Brand Income (itemized by source or contract, and by payment date and amount), including documentation reasonably necessary to verify proper payment. The series, acting through the Manager, will also have rights to audit records related to Brand Income and permitted deductions, with audits conducted by a nationally recognized independent accounting firm or another firm reasonably acceptable to the Client, subject to fourteen (14) days’ advance written notice and confidentiality provisions.

 

Use of Client Persona: The Client will grant the series and the Manager a non-exclusive, worldwide, royalty-free license to use the Client’s name, likeness, image, voice, signature (including facsimile signature), biography, personal characteristics, and all other indicia of identity or persona (the “Client Persona”) in connection with the series’ performance under the BAA and promotion of the series and Platform. This license does not give the series ownership of the Client Persona or the right to exploit the Client Persona for unrelated third-party endorsements without agreement from the Client.

 

Confidentiality: The BAA includes mutual confidentiality provisions covering non-public business, strategies, financial information, projections, personal or medical information about the Client, the terms and existence of the agreement until publicly disclosed or required to be disclosed, any non-public materials related to the series’ investors or financing, and any other information designated as confidential or that should reasonably be understood to be confidential given its nature and the circumstances of disclosure. The parties may disclose information to affiliates, employees, advisors and agents with a need to know and confidentiality obligations, and disclosures required by law, regulation, court order or securities filings are permitted subject to the notice and limitation procedures in the BAA.

 

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Further Assurances: The Client agrees to execute additional documents and take further actions reasonably requested by the series or the Manager to carry out the purpose and intent of the BAA, including actions needed to maintain the payment, security, direct deposit and account control mechanics and to respond to changes in applicable law, league rules or collective bargaining requirements.

 

Spousal Consent: If a Client is married or marries during the Term, the Client will be required to use best efforts to obtain a spousal consent or acknowledgement in a form reasonably requested by the series, addressing the BAA, the security interest in the Collateral, and the irrevocable proxy and power of attorney granted to the Manager. If the spouse declines to sign, the Client must notify the series and discuss in good faith whether alternate arrangements (such as additional security or escrow of funds) are necessary to protect the series’ interests.

 

Dispute Resolution: The form BAA requires the parties to attempt in good faith to resolve disputes through negotiation before proceeding to binding arbitration administered by JAMS or a comparable arbitration organization if JAMS is unavailable. The BAA preserves the ability to seek interim or preliminary injunctive relief from a court of competent jurisdiction to prevent irreparable harm, maintain the status quo or enforce confidentiality or intellectual property provisions pending arbitration.

 

No Diversion of Brand Income: The Client is prohibited from taking action for the purpose of defeating, reducing or delaying the series’ right to receive the Brand Amount, including intentionally deferring, declining, diverting or redirecting Brand Income, instructing any payor to disregard or modify the direct deposit of Brand Income or payment directions, or using any entity or arrangement to shield Brand Income from the series. Any entity through which the Client earns Brand Income must comply with the Client’s obligations under the BAA, and intentional diversion or redirection of Brand Income away from the Participation Account is an immediate material breach.

 

Exclusive Relationship; Right of First Refusal: The Client represents that the Client has not entered into another contract or arrangement assigning or transferring rights to future Brand Income and, during the Term, may not enter into similar revenue-sharing arrangements without the series’ consent. If the Client receives a bona fide third-party offer for a transaction requiring consent, the form BAA gives the series fifteen (15) business days to review and elect to match the material economic terms before the Client may proceed with the third-party transaction; if the Company does not timely match, the Client may consummate the transaction on terms no more favorable to the third party, provided such transaction closes within ninety (90) days. For the avoidance of doubt, the right of first refusal applies only to a sale, assignment, pledge, or similar monetization of Brand Income or future on-field income, and does not apply to any ordinary-course agent, management, endorsement, sponsorship, NIL, or other off-field commercial arrangement.

 

Client Representations and Warranties: The Client provides representations regarding authority and capacity, independent advice, binding obligations, absence of conflicts, litigation and compliance, accuracy of information, brokerage matters, prior income assignments, intellectual property, no conflicting account or deposit arrangements, and related matters. These representations support the series’ diligence regarding the enforceability of the BAA and the Client’s ability to perform the payment and collection obligations.

 

Insurance: The series (or its designee) has the right, at its own expense, to purchase and maintain one or more life insurance and/or disability insurance policies on the life and/or health of the Client, with the series (or its designee) as the sole owner and beneficiary of any such policy and responsible for payment of all related premiums, and the Client having no right, title or interest in any such policy or its proceeds.

 

Company Names, Publicity and Secondary Trading Promotion: Clients are restricted from using the series’ or the Manager’s name or trademarks, or referring to the BAA, in any press release or public statement except as expressly permitted under the BAA or with the series’ prior written consent, and are prohibited from promoting, marketing or soliciting investments in any securities of the Company, Agentiq Sports 1 Series LLC or any other series, or other securities offerings related to the BAA, unless specifically requested or approved in writing by the series or the Manager, with unsolicited inquiries from potential investors or media required to be referred to the Manager. The series (acting through the Manager) or an affiliate may operate or make available an alternative trading system (the “ATS”) on which the series’ membership interests may be traded in secondary transactions, subject to applicable law and platform rules. Upon written notice from the series that secondary trading functionality has launched on the ATS , the series’ membership interests, if eligible, will be automatically enabled for secondary trading under applicable platform rules and the BAA. The series retains the irrevocable right to enable such secondary trading, and the Client has no obligation to participate in or promote secondary trading absent a separate written agreement. Following any such launch, any promotional activities by the Client related to the approved ATS will be documented in a separate agreement or statement of work between the series and the Client setting specific deliverables, timing and fees, will be limited to platform-level awareness and user education subject to series guidance and approval, must comply with applicable law (including broker-dealer/finder restrictions) and clear, conspicuous influencer endorsement disclosures, and may not tie any compensation to securities transactions, trading volume, proceeds or other success-based or transaction-based metrics.

 

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Player Not Issuer, Seller, or Solicitor: The form BAA provides that the Client is not, and shall not be deemed to be, the issuer, promoter, seller, underwriter, placement agent, broker, dealer, finder, or solicitor of any securities in connection with the series offering, the ATS, or any other offering of membership interests. The series shall not require the Client to engage in any activity constituting the offer, sale, or solicitation of securities without the Client’s prior written consent and a separate written agreement compliant with applicable securities laws.

 

Maintenance of Collection Mechanism: Each BAA includes a maintenance covenant requiring the Client, during the Term, to (a) designate and direct 100% of Brand Income to be deposited directly into the Participation Account, (b) open and maintain the Participation Account at a bank or financial institution willing to execute the Account Control Agreement and otherwise reasonably acceptable to the series, (c) establish and maintain the automatic bi-weekly transfer of the Brand Amount to the Company Account, and (d) not cancel, revoke, reduce, suspend, or modify any such direct-deposit designation or automatic transfer, or close or replace the Participation Account, without the series’ prior written consent. Any unauthorized cancellation, revocation, reduction, suspension, or modification constitutes a Collection Failure and a material breach entitling the series to all remedies under the BAA.

 

Securities Law Indemnification: The form BAA provides that the series shall indemnify and hold the Client harmless from any claim, action, or proceeding brought against the Client under federal or state securities laws solely as a result of the series’ offering activities, provided that the Client did not solicit investors, make any offering-related statement, make any misrepresentation or omission, breach the BAA, or otherwise engage in conduct giving rise to such claim.

 

Term

 

Each Brand Advisory Agreement is expected to remain in effect for a significant duration to cover a substantial portion of the Client’s career. Unless otherwise specified for a particular series, the Term of each BAA will commence on the Effective Date and continue until the earlier of (i) the date that is two years after the Client’s official retirement or permanent cessation from actively engaging in the Client’s Principal Business, provided that if the Client resumes the Principal Business at any time during such two-year tolling period the BAA will not terminate under this clause (i), and (ii) the 25th anniversary of the Effective Date. The form BAA also provides that rights and obligations with respect to Brand Income earned during the Term survive expiration or early termination until fully satisfied. The parties may also mutually agree in writing to terminate the BAA on an agreed date, in which case, unless otherwise agreed, the series will only be entitled to the Brand Amount from Brand Income earned by the Client up to the date of termination, and no clawback will apply unless expressly agreed as part of the termination; any mutual termination agreement must be signed by both the Client and the Manager on behalf of the series.

 

If the Client voluntarily ceases to engage in the Principal Business prior to the fifth anniversary of the Effective Date, other than for Good Reason as defined in the BAA, the Client must repay to the series, as liquidated damages, an amount equal to the aggregate Initial Advisory Payment actually received by the Client, plus interest from the date of early cessation to the date of repayment at the lesser of (a) the prime rate plus 5% per annum, compounded monthly, and (b) the maximum rate permitted by applicable law, minus all Brand Amount payments actually made by the Client to the series before the early cessation; provided that if Brand Amounts paid exceed the foregoing sum, no amounts shall be owed. The repayment amount is reduced by fifteen percent (15%) for each of the first six (6) full years and an additional ten percent (10%) for the seventh (7th) full year such that no amount is repayable from and after the seventh anniversary; and no amount is repayable if aggregate Brand Amount payments made by the Client equal or exceed the Initial Advisory Payment received plus a twenty percent (20%) per annum internal rate of return thereon. In the case of total and permanent disability (including a documented mental-health condition certified by a licensed professional), the form BAA generally treats the resulting cessation similar to a retirement for Good Reason, the clawback provisions do not apply, and the parties (or the Client’s legal representative) will confer in good faith regarding an equitable resolution of any ongoing obligations.

 

The form BAA also contains provisions addressing the continuation or reinstatement of revenue sharing if the Client resumes participation in the Principal Business after the Term, including payments through a Revenue Share Trust; under the form BAA, the Manager serves as sole trustee of the Revenue Share Trust, the former members of the Company are the beneficiaries, and disbursements from the trust, net of any trust operating costs and expenses, are made on the same terms, timing, methodology and waterfall as Brand Percentage payments under the BAA. The BAA provides separate termination and enforcement rights for material breaches, including payment defaults, breaches of the exclusive relationship covenant, uncured Collection Failures (which must be cured within seven (7) business days after written notice), failure to maintain the Account Control Agreement, the direct deposit of Brand Income or the automatic bi-weekly transfer, and intentional diversion or redirection of Brand Income away from the Participation Account; in each case the non-breaching party may terminate the BAA following a 30-day cure period (or a shortened 10-day cure period in the case of a payment default or breach of the exclusive relationship covenant) after written notice describing the breach, except that intentional diversion is an immediate material breach with no cure period.

 

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General Description of Series Level Operations

 

Each series of the Company will have discrete operations and financial flows related to its specific Brand Advisory Agreement. This section describes how a series will use the proceeds from its offering, how it will generate and handle cash inflows from Brand Income, the types of expenses it will incur, and how cash will ultimately be distributed to investors. After a series has commenced operations under its Brand Advisory Agreement, the series will carry out its business by ensuring that the Client receives the Advisory Services and related support contemplated by that agreement, monitoring and enforcing the Client’s obligation to pay the Brand Amount, and managing the series’ financial affairs, including payment of expenses and distribution of any available cash to investors. The Manager will monitor developments relevant to the Client’s Brand Income and performance under the Brand Advisory Agreement, including game appearances, contract signings, payment activity, reports from the Client and other events that could affect Brand Income or collection of the Brand Amount. The Manager also expects to maintain regular communication with the Client and, where appropriate, the Client’s agent, financial advisor or other representatives to support a constructive ongoing relationship. If a missed payment, Collection Failure, potential breach or other issue arises, the Manager will seek to address it promptly, including by exercising reporting, audit, collection, security or enforcement rights when necessary to protect the applicable series’ interests.

 

Although each series will benefit from the Manager’s oversight and the Platform’s infrastructure, each series will remain financially independent. The success or failure of one series will not determine the outcome of any other series, and the assets, Brand Income, Brand Amount payments, expenses and liabilities of one series are not intended to be available to, or borne by, any other series or the Company’s general operations, except for shared expenses allocated under the Company’s allocation policies. For example, if the Client associated with one series suffers an injury, permanent disability, early retirement or other event that materially reduces or eliminates Brand Income for that series, investors in another series linked to a different Client would not have a direct claim on, or direct exposure to, that series’ assets or income, although adverse events could indirectly affect the Platform’s reputation or the Manager’s business. The Manager may, in its discretion, use its own resources or make advances to support a particular series, but it is not obligated to provide the same support to any other series. This financial separateness is an inherent feature of the Company’s series LLC structure.

 

In our model, we expect that, in the aggregate, a majority of the gross proceeds of a series offering will be applied (directly to the Client at closings, or to reimburse the Manager for any initial tranche advanced by the Manager, as the Manager and the series may agree) toward the Client’s upfront compensation, though this percentage may vary by series depending on the negotiated terms and the tranche structure for that series. The remainder of the proceeds will generally be used to cover

 

The one-time Negotiation Fee to the Manager for that series, as described earlier, calculated as a percentage of the Client’s Initial Advisory Payment and inclusive of associated transaction costs and expenses incurred by the Manager;

 

  Any Offering Expenses allocated to the series, such as legal and accounting fees for preparing the offering, filing fees, marketing or promotion costs related to the offering, Broker-Dealer fees or commissions (the Broker Fee payable to our broker, Andes Capital Group, LLC, for its role in the offering), escrow agent fees, and regulatory compliance costs; and

 

  Establishment of initial reserves for the series, if deemed necessary by the Manager. For example, the Manager may decide to retain a small portion of proceeds in the series’ bank account as a starting cash balance to pay upcoming insurance premiums, initial Advisory Services costs, or other near-term Operating Expenses before the Brand Amount is received.

 

See “Use of Proceeds” for more information. Investors should understand that not all offering proceeds are directed to the Client. A portion of the gross proceeds is applied to fees and expenses of establishing the series and to reserves for future series operations. The Company intends to maximize the amount directed to the Client while ensuring that necessary costs are covered. If the offering fails to reach the minimum amount needed to complete the Initial Closing and pay associated fees, investor funds will typically be returned, and any abort costs incurred will be borne by the Manager as discussed; however, the BAA’s obligations will depend on the funding, guarantee, Outside Date and automatic adjustment provisions described above and in the applicable BAA. See “Risk Factors — Risks Related to Conflicts of Interest — Our Manager earns fees and expense reimbursements from each series regardless of performance, creating conflicts of interest with investors” and “Risk Factors — Risks Related to Our Business and Industry — Our pipeline, pricing, and timing depend on our ability to sign athletes to BAAs on acceptable terms, which may not be achievable” for more information.

 

Upon and following each closing of a series offering, the series will disburse to the Client, or reimburse the Manager to the extent the Manager funded an initial tranche through an advance, the portion of offering proceeds attributable to the Initial Advisory Payment and will pay the immediate fees and expenses of the offering. The series then holds the contractual rights to receive the Brand Amount going forward. At this point, the series’ “balance sheet” will consist primarily of the BAA, as an intangible asset representing the future income stream, and any cash reserve remaining after initial disbursements. The series will also carry on its books any liabilities incurred at inception, such as obligations to pay Manager fees, accrued offering expenses, any outstanding Manager Promissory Note issued in respect of advances, and any remaining unreimbursed portion of the Manager’s initial tranche of the Initial Advisory Payment, if applicable.

 

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Cash Flow and Distributions

 

As the series receives Brand Amount payments, those funds will accumulate in the series account. On a periodic basis, which may be monthly, quarterly or at such other intervals as the Manager determines appropriate, the Manager will review the series’ cash balance and upcoming obligations. From the incoming funds, the series will pay any due Operating Expenses – these payments may include the Manager’s Maintenance Fee at the designated interval, any insurance premiums due and any invoiced expenses for services. The Manager may also retain a portion of funds raised in its offering as a reserve for future known expenses or to buffer against irregular income , such as retaining cash during the Client’s in-season months to cover expenses during off-season periods when Brand Income may be reduced or absent. After covering expenses and appropriate reserves, the remaining Free Cash Flow , as defined in the Operating Agreement, will be available for distribution to the series’ investors.

 

The Manager has the authority to determine Free Cash Flow and to make distributions from time to time, in accordance with the terms of the Operating Agreement and the specific Series Designation. The Manager determines, on the periodic basis set forth in each Series Designation, if any, the Free Cash Flow, if any, available for distribution to Unit holders of that series. Accordingly, the distribution cadence for each series (for example, quarterly, semi-annually or such other interval) will be set forth in, and governed by, the applicable Series Designation rather than the Operating Agreement. The exact timing will balance administrative feasibility with investor expectations and the variability of payments. In any event, no distribution will be made if it would impair the series’ ability to meet its liabilities or if the series has no Free Cash Flow available. Our Operating Agreement also prohibits us from distributing in kind assets, which means distributions are cash only and we will not, for example, transfer part of the BAA itself to investors.

 

When a distribution is declared for a series, it will be made to all investors in that series pro rata based on the number of units they hold. For example, if a series has 1,000 units outstanding and an investor owns 100 units (10%), that investor will receive 10% of any distribution amount declared for that series. Distributions will generally be paid through the Platform, meaning the cash will either be deposited into investors’ linked bank accounts or credited to their Platform account wallet, depending on our arrangements with the transfer agent and payment processors. Investors may have the option to withdraw funds or reinvest in additional offerings, to the extent a reinvestment plan or new offerings are available at such time.

 

Investors should be aware that a series may not have distributable cash for a significant period following its initial closing. The Manager may accumulate reserves during the early stages of a series to ensure that the series can cover fixed expenses, including audit fees and other Operating Expenses, before any distributions are made. Once a series matures and Brand Income becomes steady, the Company intends that distributions will represent the primary means by which investors realize returns. Capital appreciation of Units is uncertain in the absence of a public trading market. The Manager may adjust distribution practices depending on circumstances. If, for example, the Client’s earnings are expected to increase materially due to an anticipated promotion or contract change, the Manager may retain additional cash reserves to fund an expanded scope of Advisory Services or to support other series-level objectives that the Manager believes may enhance long-term value for the series. Any material changes to distribution policy would be disclosed to investors.

 

To illustrate how a series might operate financially, consider Series RC, linked to Ronny Cruz. If Series RC raises the Series RC Maximum Offering Amount of $1,290,000 by selling 12,900 Series RC Units at $100 per Unit, $12,900 (1%) would be paid as the Broker Fee, up to $25,800 (2%) could be reimbursed for offering expenses, and $1,200,000 would be applied to the Initial Advisory Payment under the Series RC BAA, including reimbursement to the Manager for any initial tranche advanced by the Manager and payment of the remaining balance to Mr. Cruz, leaving approximately $51,300 before any Negotiation Fee, reserves, Advisory Services costs or other Operating Expenses. Under the Series RC BAA, the initial $350,000 tranche of the Initial Advisory Payment is funded by the Manager and not from the proceeds of the Series RC offering, and the remaining balance is payable from offering proceeds at the Initial Closing and, if applicable, subsequent closings, subject to the Outside Date and automatic adjustment mechanics described above. Now assume Mr. Cruz generates qualifying Brand Income during a year; Series RC would receive the Brand Amount equal to the applicable Brand Percentage, or any Adjusted Brand Percentage if less than the full Initial Advisory Payment is funded by the Outside Date, of that Brand Income. For example, if the Brand Amount payments received by Series RC for a year totaled $100,000, those payments would accumulate in the Series RC account and would be used to pay Operating Expenses, reimbursements, reserves and other series-level obligations before any distributions. If, after those items, $50,000 were otherwise available for distribution before giving effect to the Series RC Maintenance Fee, the Maintenance Fee applicable to Series RC would be 2.5% of distributions to investors; if all of that amount were distributed subject to that fee, approximately $48,780 would be distributed pro rata to investors and approximately $1,220 would be paid as the Maintenance Fee. With 12,900 Series RC Units outstanding, that illustrative distribution would equal approximately $3.78 per Unit for the period. If later Brand Amount payments increase while expenses and reserves remain similar, more Free Cash Flow could be distributed; if Brand Amount payments are lower, delayed or offset by higher expenses or reserves, distributions could be reduced or unavailable. This example is oversimplified and actual results will vary, but it demonstrates the flow: investors’ returns come from the excess of Series RC Brand Amount payments over expenses, reserves and series-level obligations.

 

Shortfalls and Manager Support

 

If a series does not have enough cash on hand to pay its obligations, the Manager may, in its sole discretion: (i) loan money to the series to cover the excess Operating Expenses (an “Operating Expense Reimbursement Obligation”), on which the Manager may impose a reasonable rate of interest at a rate no less than the Applicable Federal Rate, with the series repaying that amount from future Free Cash Flow; (ii) cause the series to issue additional Units to cover such amounts, though doing so might dilute existing investors and we would expect to use this option only when necessary; or (iii) pay the excess Operating Expenses itself and not seek reimbursement. The operating agreement also expressly authorizes the Manager to enter into Operating Expense Reimbursement Obligation arrangements on behalf of a series, effectively treating such expenditures as an absorbed cost. The operating agreement separately allocates Operating Expenses to the series but does not itself define this Free Cash Flow netting. The expected practice as to which option the Manager will use in any particular case for Series RC may be addressed in the applicable Series Designation or offering materials and may depend on the Manager’s confidence in future Brand Amount payments to the series and general business considerations. The Manager is not obligated to advance funds, but it may do so to protect the series’ asset . Advancing funds to pay a filing fee to maintain rights or legal fees to enforce the BAA, for example, could benefit both the series and, indirectly, the Manager’s reputation. Any such Operating Expense Reimbursement Obligation will be documented and repaid out of future Free Cash Flow before distributions. The Company will disclose in its periodic reports whether any series has outstanding Operating Expense Reimbursement Obligations to the Manager, as such obligations affect the cash available for distribution to investors.

 

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If a series consistently underperforms and the Client earns materially less than anticipated, expenses may exceed revenue for an extended period. In such scenario, the Manager may continue to cover certain essential expenses to keep the series compliant , such as audit and reporting costs,, but it is not required to do so. Under our Operating Agreement, a series will terminate and be wound up in accordance with the Operating Agreement and the applicable Series Designation, including upon dissolution of the Company or upon an event of termination set forth in the Series Designation. Upon liquidation of a series, investors would receive any remaining cash after satisfaction of all debts, including any amounts owed to the Manager or other creditors. In the event of a failed series, the amount available for distribution to investors may be zero.

 

Series-Level Reporting and Accounting

 

In addition to the SEC filings, we intend to provide investors with certain updates on each series’ performance through the Platform. This may include periodic summaries of Brand Amount payments received and expenses paid, possibly in the form of an informal investor dashboard or newsletters. However, these will be supplementary and not a substitute for the formal SEC reports. The formal financial statements included in our filings will provide the official record. We anticipate that our accounting will treat each series as a separate unit for financial statement purposes. We may present a combined balance sheet and income statement for the Company with columns for each series (and eliminating any inter-series transactions if any). Investors will thus be able to see the revenues, expenses, and net income (or loss) of the specific series they invested in.

 

We also intend to provide investors with annual tax information and appropriate updates on a Client’s performance. However, we must balance investor reporting with confidentiality commitments to the Client. The Brand Advisory Agreement’s confidentiality and public announcement provisions may limit how much detail we can disclose about the Client’s earnings beyond public information or information required in securities filings. We expect to disclose aggregate numbers in financial statements and other required reports, while limiting personal details as required by the BAA, applicable law and any league privacy requirements. If necessary, we may seek the Client’s consent for certain disclosures.

 

Related-Party Transactions

 

All cash flows described are generally between the series and third parties (Client, vendors) or the series and the Manager. If any other related-party transactions occur, including transactions in which an affiliate of the Manager provides a service to the series for a fee, such transactions will be conducted on arm’s-length terms and disclosed to investors. The primary related-party flows are the Manager’s fees and expense reimbursements already discussed. See “Risk Factors — Risks Related to Conflicts of Interest” for more information.

 

Operating Expenses

 

Each series is responsible for its own ongoing expenses. As defined in our Operating Agreement, Operating Expenses of a series include, among other things: the Maintenance Fee payable to the Manager; any fees and costs for professional services, including accounting, audits, state filings and SEC reporting compliance, allocable to that series; insurance premiums for any insurance covering the series or its Client or Manager, including liability insurance and key person insurance on the Client,; any taxes applicable to the series; any legal expenses associated with that series , such as costs of enforcing the BAA or responding to legal claims,; fees of any third-party service providers engaged specifically for that series, including a registrar or transfer agent for that series’ Units, if any,; and any other operational costs that can arise in the course of running the series , including costs of communications to members of that series. Certain of these expenses are predictable, such as the Maintenance Fee and scheduled audit costs, while others arise only as needed, such as legal costs for enforcement.

 

Certain expenses, such as general marketing of the Platform, common technology expenses, or salaries of personnel who service all series, may be shared across multiple series or the Company as a whole. Our Operating Agreement allows the Manager to allocate such costs among series in a fair and reasonable manner via an Allocation Policy. By way of example, if an annual SEC filing service covers all series, the Manager may allocate the cost proportionally by number of series or by complexity. The Manager has discretion in allocation but must do so consistently and in good faith. By pooling resources, series can benefit from economies of scale. no series will be charged for expenses clearly attributable to another series or to the Manager’s own ordinary overhead and administrative expenses, except to the extent such amounts constitute Operating Expenses or are otherwise payable under the Operating Agreement or the applicable Series Designation.

 

Each series will maintain its own books and records, and the Manager will ensure that all income and expenses are accounted for at the series level. We plan to prepare financial statements for each series (which may be included in our consolidated financial reporting with appropriate breakout, or provided separately in our annual report as required). The transparency of series-level finances is important so that investors can see how their specific series is performing.

 

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Allocation of Expenses

 

To the extent relevant, Brokerage Fees, Offering Expenses, Negotiation Fees, Operating Expenses, revenue generated from Series Assets and indemnification payments under the Operating Agreement will be allocated among the various series in accordance with the allocation policy set forth below. Costs and expenses specific to a series offering and the administration of that specific series, such as escrow fees, the Maintenance Fee and any Brokerage Fee, will be allocated to that series, in many cases by deducting those expenses from the gross proceeds of the series offering, as the Manager’s practice will be to allocate items that are attributable to a specific series to be borne by, or distributed to (as applicable), the applicable series. If, however, an item is not allocable to a specific series but to the Company or the Manager in general, it will be allocated pro rata based on the value of the underlying Series Asset held by a series, on the gross proceeds of each series offering, or on the number of outstanding series, as reasonably determined by the Manager or as otherwise set forth in the allocation policy. By way of example, as of the date hereof revenue and expenses will be allocated as follows:

 

Revenue or Expense Item   Description   Allocation Policy
Brand Advisory Agreement revenues   Amounts received under Brand Advisory Agreements   Allocable directly to the applicable series
Regulatory filing expenses   Filing expenses related to the submission of regulatory paperwork for a series   Allocable pro rata among the applicable series
Marketing expenses   Marketing expenses incurred in connection with one or more series offerings   Allocable directly to the applicable series or pro rata among the applicable series, depending on the actual cost structure
Commission-based broker-dealer fees   Broker-dealer commissions based on the gross proceeds of a series offering   Allocable directly to the applicable series based on the gross proceeds of that series offering
Non-commission broker-dealer fees   Broker-dealer fees other than cash commissions, including onboarding fees and series launch fees   Non-allocable; borne by the Manager
Legal expenses   Legal expenses related to the submission of regulatory paperwork for a series   Allocable pro rata among the applicable series
Audit and accounting expenses   Audit and accounting work related to the regulatory paperwork for a series   Allocable directly to the applicable series
Escrow agent fees   Escrow agent fees for the administration of escrow accounts related to the offering   Allocable pro rata among the applicable series
Compliance and diligence expenses   Compliance work, including diligence related to the preparation of a series offering   Allocable pro rata among the applicable series
Bank fees   Bank transfer fees and other bank account related fees   Allocable directly to the applicable series
Negotiation Fee   A Negotiation Fee specified in the applicable Series Designation specific to each series, calculated by reference to the Initial Advisory Payment of such series’ BAA, inclusive of related transaction expenses, incurred in connection with negotiating and executing a Brand Advisory Agreement   Allocable directly to the applicable series
Transfer agent fees   Transfer agent fees related to a series   Allocable directly to the applicable series
General legal and regulatory expenses   Legal or regulatory fees incurred by the Company generally, and that relate to all series generally   Allocable pro rata among the applicable series
Maintenance fee   A Maintenance Fee specified in the applicable Series Designation for ongoing management and administration of the series, its business, its assets, and the related Brand Advisory Agreement, payable when such series is generating revenues   Allocable directly to the applicable series
Series-specific insurance premiums   Insurance premiums related to a specific series asset   Allocable directly to the applicable series
General insurance expenses   Insurance premiums or expenses, including directors’ and officers’ insurance for the directors and officers of the Manager   Allocable pro rata among the applicable series
Asset management expenses   Fees, costs and expenses incurred in connection with the management of a series asset, including periodic fees associated with athlete audits, income taxes, marketing fees and investigative fees   Allocable directly to the applicable series
Ongoing reporting expenses   Expenses related to ongoing reporting requirements, including Regulation A or Securities Act reporting   Allocable pro rata among the applicable series
Audit, accounting and bookkeeping expenses   Audit, accounting and bookkeeping expenses related to the ongoing reporting requirements of the series   Allocable pro rata among the applicable series
Indemnification payments   Indemnification payments under the Operating Agreement   Allocable directly to the applicable series or, if not readily associated with a particular series, allocated by the Manager in accordance with the Allocation Policy

 

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Offering Expenses and other series expenses will be borne, allocated, reimbursed or assumed as provided in the Operating Agreement and the applicable Series Designation. The Manager may, in its discretion and in writing, assume expenses otherwise allocable to a series. Notwithstanding the foregoing, the Manager may be reimbursed by a series from the proceeds of that series offering for offering expenses actually incurred, in an amount not to exceed 2% of the gross offering proceeds of such series offering.

 

Industry and Competitive Landscape

 

We operate at the intersection of the professional sports industry and the alternative investments market. Our business model – securitizing a portion of an individual athlete’s future earnings and offering it to retail investors – is novel and not yet common, but it draws on trends in both industries. Below, we discuss the context, potential competition, and external factors affecting our business environment.

 

Sports Industry Context

 

The professional sports industry is massive and composed of various leagues and organizations, each with its own rules regarding player contracts and compensation. Athletes typically earn income through contracts with teams (salary and bonuses) and through endorsements or sponsorships. Traditionally, athletes facing financial needs or looking to capitalize on future value have had limited options: they might take out loans (sometimes using future contract guarantees as collateral), enter into endorsement deals (which pay them based on their fame), or in rare cases, engage in personal brand monetization deals. A precedent for our model can be seen in historical cases like that of Fantex, Inc., which around 2013 launched a platform to buy economic interests in professional athletes’ earnings via tracking stock IPOs. While Fantex gained media attention, it was short-lived and did not become a mainstream mechanism, partly due to regulatory complexities and the difficulty of sustaining a trading market for those securities. Our approach under Regulation A with a series LLC is a more recent innovation, aiming to make such investments feasible on a wider scale.

 

From the athlete’s perspective, our offering competes with other means of financing or monetization. For example, an athlete might consider our Brand Advisory Agreement versus simply negotiating a higher salary (if possible), seeking an advance from their agent, or signing an endorsement that provides upfront cash. The value proposition we offer is unique in that it directly ties into their professional income and provides supportive services. However, some athletes may be hesitant to sell a slice of their future earnings due to psychological factors or advice from agents/financial advisors who are unfamiliar with our model. A factor in our favor is that we do not take any of the athlete’s off-field earnings, which means the athlete retains full upside on endorsements and other ventures – this could make our model more palatable compared to, for example, an agency that takes a percentage of all income or a loan that has to be repaid with interest regardless of success.

 

We must also navigate league and players’ association regulations in the sports industry. Most leagues do not explicitly contemplate third-party sharing of player salaries, but they often restrict assignment of player contracts. We structure our agreements carefully as revenue sharing contracts that do not assign or encumber the player’s contract itself, and we obtain direct payment instructions in compliance with payroll practices , including through the use of standard forms for direct deposit splitting where available. There is a risk that a league or players’ union could disapprove of or challenge these arrangements, especially if they perceive it as potentially exploitative of players or in conflict with collective bargaining agreements. As part of our industry landscape, we will monitor any guidance or rules from leagues. If, for example, the NFL or NBA were to adopt a policy prohibiting players from entering into future income contracts, the Company would be required to cease targeting athletes in those leagues. Currently, to our knowledge, no major U.S. league has formal rules prohibiting what we are doing, but the landscape could change as our model gains attention. We may seek informal or formal approval from league officials or players’ associations as we grow, to ensure our model is sustainable within the sports ecosystem.

 

Alternative Investments and Crowdfunding Landscape

 

From the investment perspective, our series offerings fall under the broader category of fractional alternative assets or crowdfunding investments. In recent years, platforms have emerged that allow retail investors to buy shares in non-traditional assets such as real estate, art, collectibles, litigation finance, royalties, and income streams. Existing platforms address asset classes such as music royalties, sports memorabilia and shares of private companies. The Manager has studied certain of these platforms, including Musicow, as comparable models. These platforms, including our own, are part of a movement to democratize access to investments that were once only available to large institutions or not available at all. We see this as our broader industry: financial technology (FinTech) companies enabling crowdfunding and fractional ownership.

 

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With respect to direct competition, as of this writing, there are a limited number of companies explicitly operating similar businesses to our business. Vestible, Inc. (mentioned in the context of Vestible Platform) appears to be a venture with a similar concept of investing in athlete income, targeting early-career athletes and using a series LLC structure under Regulation A (their filings indicate a plan to acquire percentages of future income of football, basketball, baseball, and soccer players). Vestible’s platform, if active, could be considered a direct competitor as it would appeal to the same investor base and pool of athletes. We will differentiate ourselves through our branding, the specific services we offer to athletes, and possibly through focusing on different sports or niches. It is also possible that established sports agencies or new startups could attempt their own versions of athlete-backed securities. For example, a large sports agency might consider facilitating investments in their star clients (though this could raise conflict of interest concerns for them). To our knowledge, no major agency has done so yet in a public offering format.

 

We also face indirect competition for investors’ dollars from other sports-related investments. Some investors might find our series analogous to investing in sports teams or leagues , such as purchasing equity in publicly traded sports franchises or media companies with sports-related revenue or even participating in daily fantasy sports or sports betting as a form of engagement with athlete performance , although such activities have materially different risk profiles. Additionally, as an entertainment investment, our business might be compared with investing in music artists’ royalties or film box office shares. While the underlying assets differ, the common theme is investing in future revenue streams of talent or content. We consider any platform that offers income-sharing with talent , whether in music, acting or other fields, as part of the competitive landscape insofar as it educates investors to the concept and, conversely, if a high-profile failure were to occur, it could impact investor appetite across the board.

 

Our competitive strategy emphasizes transparency and the cultivation of mutually beneficial relationships with Clients. We seek to attract high-potential, early-career talent by offering competitive terms and demonstrating the value of the Advisory Services and brand support provided to each Client. If the Company establishes a reputation as a supportive partner to athletes, rather than solely a financing source, the Manager believes that athlete interest in the platform will increase, providing a competitive advantage in sourcing Brand Advisory Agreement opportunities. On the investor side, the Company intends to build credibility through regulatory compliance, clear and complete disclosures, timely distributions when available, and accurate and current investor communications. As an early participant in this market, the Company recognizes that any operational or compliance failures could undermine confidence in the model broadly. Accordingly, the Company views responsible operation as both a regulatory obligation and a competitive imperative.

 

Market Acceptance and Growth

 

The market for investing in athletes’ earnings is still in its infancy. A critical aspect of our industry landscape is investor education and acceptance. Many potential investors may be unfamiliar with investments of this nature and may require education regarding how returns are generated and the risks associated with an investment tied to an individual athlete’s career. The Company and other market participants will need to invest in market education. If the Company is successful and investors realize returns, this sector could develop into a significant new asset class. Considering that the sports industry’s athlete payrolls run in the tens of billions of dollars annually, even a small fraction of that amount structured as investable securities could represent a substantial market. Conversely, if early series underperform or if negative publicity arises, including adverse media coverage involving a Client, public perception of the model could be materially harmed. As an early participant in this market, the Company must carefully manage both investor and Client relationships to support the market’s development.

 

Regulatory changes could also shape the competitive landscape. Any modifications to Regulation A or securities laws that make it easier or harder to do what we do will affect potential entrants. Similarly, if leagues or governmental authorities impose rules restricting or regulating athlete income-sharing arrangements, the Company’s operations could be materially affected. We keep abreast of policy discussions around athlete income assignment, sports betting , and financial innovation in sports.

 

While we currently face relatively few direct competitors in offering fractional investments in athletes’ Brand Income, we operate in a broader competitive environment that includes other alternative investment platforms and the traditional sports finance ecosystem. Our success will depend on effectively carving out a reputation and niche within this environment. We believe the novelty of our product is both an opportunity and a challenge: we have the chance to lead in creating a new market, but we also must overcome the lack of historical precedent and any skepticism from potential stakeholders. We will continue to monitor the competitive landscape and adjust our outreach and offerings to maintain a compelling value proposition for both investors and athletes.

 

Government Regulation and Compliance

 

Our business and the offering and sale of Units are subject to extensive federal and state laws, rules and regulations, including securities laws, broker-dealer and offering-related requirements, ongoing reporting obligations, investment company and investment adviser considerations, tax rules, data privacy requirements, and laws and policies applicable to professional sports and athlete compensation arrangements. These regulatory frameworks are complex and may change over time, and any new or modified laws, rules, regulations, interpretations or policies could require us to modify our business model, offering structure, Platform operations, disclosure practices or contractual arrangements with Clients. We intend to operate in compliance with applicable regulatory requirements and to update investors regarding material regulatory developments, but we cannot assure investors that future regulatory changes or interpretations will not adversely affect the Company, any series, the Manager, the Platform, the Brand Advisory Agreements or the value of an investment in Units. See “Risk Factors — Risks Related to Government Regulation” for more information.

 

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We operate in a regulated environment spanning securities law, investment company law, and sports-specific considerations. We have implemented compliance measures to address these areas of concern and we will provide investors with transparent reporting. The success of our business not only hinges on athlete performance but also on strict adherence to these legal and regulatory frameworks, which we regard as essential to protect our investors and Clients and to maintain our authorization to operate. We encourage investors to review our filings and communications, and we remain available to answer regulatory or compliance-related questions through the Platform’s investor relations channels.

 

In the event of any material regulatory developments, we will update investors via Form 1-U or in our annual reports. For example, if a new law is passed that limits such revenue sharing contracts, or if the SEC provides new guidance that impacts how we account for series, we would disclose the implications.

 

Regulation A and the Securities Act of 1933

 

The Units in our series to be offered to investors are securities under U.S. law. We are conducting these offerings under Tier 2 of Regulation A as qualified by the SEC. Tier 2 of Regulation A allows us to offer securities to the general public subject to certain limits and ongoing reporting requirements, without registering the securities under the Securities Act of 1933, as amended (the “Securities Act”). Each series offering must be qualified by the SEC before sales may occur, meaning the SEC has reviewed and permitted the offering to proceed, although SEC qualification does not imply approval or endorsement of the investment’s merits. 

 

As a Tier 2 Regulation A issuer, we are required to file the following reports with the SEC:

 

Annual Report on Form 1-K: Within 120 days after the end of each fiscal year, we will file an annual report containing, among other information, audited financial statements for the year, a discussion of our business and each series’ performance, management updates, and other disclosures similar to what would be in a Form 10-K for a public company. Because we are a series company, our financial reporting will either include combined or consolidated financials showing each series (and the Company) or separate financial statements for each series, as appropriate under SEC rules. The annual report will also update certain business and risk disclosures as needed.

 

Semiannual Report on Form 1-SA: Within 90 days after the end of the first six months of each fiscal year, we will file a semi-annual report with unaudited interim financial statements and a shorter management discussion and analysis of operations for the first half of the year.

 

  Current Reports on Form 1-U: We will file current reports to disclose important events , which serve a function analogous to Form 8-K for Exchange Act reporting companies. For example, if a new series is qualified and launched, if we enter into a material contract like a significant Brand Advisory Agreement not previously described in this Offering Circular, a change in Manager or key governance, significant legal proceedings, or other material happenings, we will file a 1-U within 4 business days of the event , or within such other timeframe as may be required by the applicable form. If a Client of a series experiences an event that materially affects the applicable series, such as a career-ending injury or announced retirement, we may file a Form 1-U to inform investors of the impact.

 

These reports will be made available on the SEC’s EDGAR website for free access by the public. We will also post links or copies on our Platform for investors’ convenience. By investing, investors consent to receive these reports electronically. We do not plan to mail paper reports. The reporting obligations will continue annually until either we terminate them by deregistering, which generally may not occur until the series have fewer than the applicable minimum number of holders and certain other conditions are satisfied, or if we register the securities under the Exchange Act , which the Company does not currently intend to do.

 

If and when the Company (or a series) is no longer required to file reports , including if all series operations have been completed and the Company has fewer than 300 holders and elects to exit the Regulation A reporting regime,, we would inform investors of this event. Until that time, investors can expect at least annual and semi-annual updates for the foreseeable future. Since each series will have an expected life tied to the athlete’s career, which may extend for many years,, we anticipate needing to provide ongoing reporting for as long as any series remains active and investors hold such series’ Units.

 

State Blue-Sky Law

 

Tier 2 offerings pre-empt state securities law registration, which means we generally do not have to register or qualify each offering in individual states. However, we are subject to state anti-fraud provisions and may need to file notice filings in certain states or pay state filing fees. We have taken steps to ensure we meet any such requirements. Additionally, Andes and our Platform conduct the necessary investor residence verifications and other compliance checks to facilitate an orderly multi-state offering process. Investors from all states in the U.S. , and potentially certain foreign jurisdictions at the Manager’s discretion, are eligible to invest, provided the legal requirements are satisfied. We currently limit sales to U.S. persons and a small number of non-U.S. persons on a case-by-case basis. If we do accept non-U.S. investors, we will comply with any necessary offshore offering regulations , including Regulation S under the Securities Act for offers conducted outside the United States.

 

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Investment Company Act of 1940

 

We have structured the Company and each series with the intention of avoiding regulation as an “investment company” under the Investment Company Act of 1940 (the “1940 Act”). The 1940 Act is a federal law that imposes strict requirements on companies primarily engaged in investing or trading in securities , such as registered investment companies. Under Section 3(a)(1)(A) of the 1940 Act, an entity is an investment company if it is engaged primarily in the business of investing, reinvesting, or trading in securities. Our Company’s primary business is entering into Brand Advisory Agreements with athletes and managing those agreements, which the Company does not view as investing in “securities.” A Brand Advisory Agreement is a contract for a share of personal earnings, not a stock, bond or other traditional security, and the payments thereunder depend on the Client’s personal services and athletic performance. We believe that each series’ asset (its BAA) is not a security but rather a commercial contract, and thus the series is not holding an investment security. Accordingly, the Company, when viewed in the aggregate across all series, is not in the business of investing in securities; rather, the Company’s business consists of providing Advisory Services and earning contractual income under Brand Advisory Agreements.

 

Even under the 1940 Act’s broader definition in Section 3(a)(1)(C) (which looks at an entity that holds more than 40% of its assets in “investment securities”), we contend that the assets of each series (and thus of the Company in aggregate) are not “investment securities” because, again, a revenue-sharing contract tied to personal endeavor is not a security as that term is defined for 1940 Act purposes. To reinforce this, we do not plan for any series to hold a portfolio of securities; they will hold cash and a BAA (and maybe short-term deposits for cash management). We will also not engage in trading or acquiring securities with the series’ funds (aside from perhaps placing idle cash in money market funds or bank accounts, which are generally not counted toward the 40% test due to exceptions for cash/cash equivalents).

 

Therefore, we believe the Company and its series are not investment companies and are not subject to the 1940 Act’s requirements. If a series were deemed to be holding securities , including in the event that a BAA were construed as an investment in the Client akin to a security, we would take steps to ensure we remain within an exclusion or exemption of the 1940 Act. Certain exclusions and exemptions are available under the 1940 Act, but the Company does not anticipate needing to rely on those provisions given its current business model. We will monitor our activities and assets to prevent any inadvertent status as an investment company. The consequences of being subject to the 1940 Act could be material, as registration could require the Company to fundamentally alter its structure to comply with leverage, custody, governance and other requirements. Avoidance of such classification is therefore a significant operational priority. The Company’s counsel has analyzed this issue and will continue to monitor developments, particularly if the Company’s business scope changes.

 

Investment Advisers Act of 1940

 

The Manager, Agentiq Sports, Inc., is not registered as an investment adviser under the Investment Advisers Act of 1940. We do not believe such registration is required because the Manager’s activities, while they involve managing the assets of the series, do not involve providing advice to others about securities for compensation – rather, the Manager is managing its own assets (through the Company/series structure) and the compensation it receives is in the form of Managerial fees, not advisory fees from clients. Additionally, the nature of our asset (the BAA) is not a security, so the Manager is not advising on securities. If our interpretation of the law changed or if we found ourselves offering any individualized investment advice to investors, we would revisit the need for adviser registration. Currently, the Manager acts in a Managerial capacity similar to a general partner of a series of limited partnerships, which is generally excluded from the Advisers Act (the “internal adviser” exemption for managing member advice to the fund it manages).

 

Securities Exchange Act of 1934

 

As noted, in our offering process we utilize a registered broker-dealer (Andes Capital Group) to ensure compliance with FINRA rules and securities sale regulations. The Manager itself is not a broker-dealer and will not receive commissions for selling Units. The Platform’s role is primarily as a technology provider and facilitator, with the actual sale of units being conducted through the broker’s oversight. We have taken steps to structure any compensation in compliance with broker-dealer regulations (for example, Andes Capital is compensated via the Broker Fee disclosed for each series, and no unregistered persons are paid transaction-based compensation for soliciting investors). We also comply with anti-money laundering and know-your-customer requirements through our broker and escrow arrangements, verifying all investors’ identities and sources of funds as required by law.

 

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Privacy and Data Security

 

In operating the Platform, we collect personal information from users , including names, addresses, social security numbers for tax reporting and bank account information for payments. We are subject to data privacy and protection laws including Regulation S-P , which requires investor privacy notices, and potentially state privacy laws. We maintain a privacy policy that conforms with these requirements and have implemented security measures to protect user data. We are committed to safeguarding investor information and complying with all applicable privacy regulations.

 

ERISA

 

The Employee Retirement Income Security Act (ERISA) and IRS rules have implications if retirement plan investors , such as individual retirement accounts or 401(k) plans, invest in our series. We do not currently anticipate significant investment from ERISA plan assets, but to the extent such investment occurs, the Company intends to structure each series to avoid violation of applicable plan asset regulations and prohibited transaction rules, which generally requires maintaining benefit plan participation below 25% of a series or qualifying for an applicable exemption. The Company will include appropriate legends and representations in the subscription documents to address ERISA compliance.

 

Sports Gambling Laws

 

Although seemingly unrelated, with the rise of sports betting, regulators or leagues might scrutinize anything that looks like betting on a player’s performance. Our product is an investment, not a wager, but we will be mindful to distinguish it clearly. We do not permit any form of “betting” or short-term trading on player outcomes – investments in our series will be an investment in a long-term investment contract.

 

Employees

 

Neither the Company nor any of its series has any employees.

 

Legal Proceedings

 

From time to time, we, the Manager, our series or our Clients may become involved in claims, litigation, arbitration, regulatory inquiries or other proceedings arising in the ordinary course of business, including matters relating to the offering and sale of Units, the operation of the Platform, the administration or enforcement of Brand Advisory Agreements, payments of Brand Amounts, intellectual property, publicity rights, employment or contractor matters, data privacy and security, or other commercial disputes. As of the date of this Offering Circular, we are not aware of any legal proceedings pending or threatened against the Company, any series, the Manager or any Client that we believe would have a material adverse effect on our business, financial condition, results of operations, any series or the value of an investment in Units. Any future proceeding, whether or not resolved in our favor, could be costly, time-consuming, disruptive to our business and relationships, and could divert the attention of the Manager and other personnel from operating the Company, the Platform and the series.

 

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USE OF PROCEEDS

 

The expected use of proceeds of each series offered pursuant to this Offering Circular and the description of each series’ underlying asset are set forth below.

 

Agentiq Sports 1 Series RC

 

We estimate that the gross proceeds of the offering of Agentiq Sports 1 Series RC Units will be $1,290,000 assuming the Maximum Series Offering Amount is sold. The following table breaks down the anticipated use of proceeds into different categories under various funding scenarios:

 

Raise Amount:  $1,290,000
(Maximum)
   Percent
of Gross
Proceeds
(%)
 
Uses        
Broker Fee (1)  $12,900.00    1.00
Negotiation Fee (2)  $51,600.00    4.00
Vendor Fees (3)  $8,980.00    * 
Legal/Audit/Accounting/Escrow  $8,000.00    * 
Operating Reserves  $8,520.00    * 
Initial Advisory Payment  $850,000.00    65.90
Repayment of Manager Promissory Note (4)  $350,000    27.10
Total Proceeds  $1,290,000.00    100.00

 

(1) The Broker Fee will be 1.00% of the gross proceeds and will be payable to Andes Capital Group LLC.

 

(2) Series RC will pay the Manager the Series RC Negotiation Fee in an amount not to exceed 4% of the Initial Advisory Payment specified in the Series RC Series Designation, or $51,600, which amount is inclusive of the Manager’s compensation and associated out-of-pocket costs and expenses incurred in identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement. The Negotiation Fee will be adjusted downward if the Initial Advisory Payment actually paid to the Client is less than the amount initially contemplated.

 

(3) Vendor Fees include escrow and transfer agent fees allocated to the series.

 

(4) The Manager Promissory Note issued by the Series to the Manager shall be repaid after payment in full of the Initial Advisory Payment.

 

The Manager will not be reimbursed for offering expenses advanced to Series RC from the proceeds of the Series RC series offering.

 

The allocation of the net proceeds of this offering set forth above represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues, if any, and expenditures.  The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and the proceeds of the offering. The Manager reserves the right to modify the use of proceeds based on the factors set forth above.

 

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DESCRIPTION OF THE SERIES AND THEIR ASSETS

 

This section describes the terms, structure and principal assets of each Series offered pursuant to this Offering Circular, including the Series Asset held or to be held by the applicable Series, the related Brand Advisory Agreement, the Client, and the series-specific economic terms, of our series, if any. Each Series is established as a separate series of the Company pursuant to the Operating Agreement and the applicable Series Designation, and the specific terms and characteristics of each Series, including its capital structure, fees and expenses, distribution mechanics, governance provisions, Series Asset and any Series-specific rights, limitations or conditions, are set forth in and governed by the applicable Series Designation, as supplemented by the related Series BAA and the other transaction documents described herein. The following descriptions are intended to provide investors with a Series-level summary of the relevant assets and transaction terms and should be read together with the applicable Series Designation, the related Series BAA, “Description of the Securities Being Offered,” “Management,” “Use of Proceeds” and “Risk Factors.” 

 

Agentiq Sports 1 Series Ronny Cruz 

 

Agentiq Sports 1 Series Ronny Cruz (“Series RC”), a designated series of Agentiq Sports 1 Series LLC, was established on May 12, 2026 to allow investors to participate in a contractual right to receive a fixed percentage of the on-field professional baseball income generated by Ronny Cruz, a top 100 baseball prospect who has been ranked as a Top 100 prospect by Baseball America and FanGraphs and has been reported as entering MLB Pipeline’s Top 100, over the course of his career. 

 

Series RC Designation 

 

The following table contains a summary of certain terms of the Series Designation governing Series RC (the “Series RC Designation”) which may be material to a prospective investors subscription for the RC Units. The Series RC Series Designation sets forth the series-specific terms of Series RC within the Company’s broader series limited liability company structure. This summary is qualified in its entirety by reference to the Series RC Series Designation attached as an exhibit to the Offering Statement of which this Offering Circular forms a part.

 

Name of Series:   Agentiq Sports 1 Series Ronny Cruz
     
Effective Date of Establishment:   May 12, 2026
     
Manager:   Agentiq Sports, Inc.
     
Series Asset:   The asset of the Series shall be comprised of all rights, title, and interest in and to that certain Amended and Restated Brand Advisory Agreement, dated as of June 12, 2026, by and between the Series and Ronny Cruz (which amends and restates the Brand Advisory Agreement originally dated May 12, 2026).
     
Maintenance Fee:   Subject to the revenue condition set forth below, as an annual, ongoing expense of the Series, the Series shall pay to the Manager a maintenance fee (the “Series RC Maintenance Fee”) for the Manager’s management and administration of the Series, its business, its assets and the Brand Advisory Agreement. The Series RC Maintenance Fee shall be equal to two and one-half percent (2.5%) per annum of the aggregate Capital Contributions made to the Series, calculated as of the applicable payment date or such other measurement date as the Manager may reasonably determine consistent with the Operating Agreement. The Series RC Maintenance Fee shall be payable quarterly in arrears from funds legally available therefor and shall be treated as an expense of the Series. Promptly following the closing of the applicable Offering for the Series, the Series shall pay to the Manager any portion of the Series RC Maintenance Fee that accrued prior to such closing but was not previously paid; provided, that the Series RC Maintenance Fee shall be pro-rated for any partial period during which it first becomes payable. Notwithstanding anything to the contrary in this Series Designation or the Operating Agreement, the Series RC Maintenance Fee shall not accrue, become due or be payable unless and until the Series is generating revenues. For the avoidance of doubt, any catch-up payment shall apply only to amounts that accrued in accordance with the revenue condition set forth in the immediately preceding sentence.

 

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Negotiation Fee:  

The Series shall pay to the Manager a one-time negotiation fee (the “Series RC Negotiation Fee”) in an amount not to exceed $51,600, which amount is inclusive of the Manager’s compensation and associated out-of-pocket costs and expenses described in this section and represents four percent (4%) of the $1,200,000 initial advisory payment payable by the Series to the Client under the Brand Advisory Agreement; provided, that if, following the termination or completion of the Offering, the amount of such initial advisory payment actually paid to the Client is less than $1,200,000, the Negotiation Fee shall be adjusted downward to equal four percent (4%) of the amount actually paid. The Negotiation Fee covers costs and expenses incurred in identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement, including fees and expenses payable to any agent or intermediary of the Client and customary deal expenses such as travel and lodging, diligence and background checks, third-party research, legal and documentation costs and closing-related technology or data-room charges.

 

The Series RC Negotiation Fee shall be payable at or promptly following each closing of the Offering from the gross proceeds of the Offering.

     
Expense Reimbursement:  

Subject to the Operating Agreement, the Manager may be reimbursed by the Series for operating expenses assumed or advanced by the Manager on behalf of the Series pursuant to an Operating Expense Reimbursement Obligation or as otherwise determined by the Manager in accordance with the Operating Agreement.

 

The Manager has waived its right to reimbursement for Offering expenses advanced on behalf of the Series.

     
Manager Loans   The Manager is authorized, in its sole discretion, to make loans to the Series on such terms, including interest, as the Manager determines, consistent with the Operating Agreement.
     
Distributions:   Distributions of Free Cash Flow, if any, shall be made to holders of Units pro rata in accordance with their respective Unit holdings, subject to the limitations and procedures set forth in the Operating Agreement. No distributions in kind of Series Assets shall be made.

 

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Brand Advisory Agreement with Ronny Cruz

 

On May 12, 2026, Series RC entered into a Brand Advisory Agreement with Ronny Cruz, a professional baseball player. On June 12, 2026, the parties entered into the Amended and Restated Brand Advisory Agreement (the “Series RC BAA”), which amends and restates the original agreement in its entirety. Pursuant to the Series RC BAA, Mr. Cruz sold, assigned and granted to us, as of the Commencement Date and continuing through the Term, the contractual right to receive the Brand Amount, which is equal to 10% of his Brand Income. Brand Income under the Series RC BAA means gross monies, compensation, or other consideration earned by or payable to Mr. Cruz after the Commencement Date solely as a result of his direct participation, performance, or employment as a professional athlete in the Principal Business, including base salary, signing bonuses, performance bonuses, prize or award money, and other earnings directly attributable to his on-field activities and services as a professional athlete, subject to the permitted deductions and exclusions set forth in the Series RC BAA. For purposes of the Series RC BAA, “Principal Business” is limited to Mr. Cruz’s primary professional occupation as a professional baseball player in Major League Baseball and its affiliated minor league system, Nippon Professional Baseball in Japan, the Korea Baseball Organization, and the Mexican League (Liga Mexicana de Béisbol). Compensation from leagues, tournaments, or competitions not listed in the Series RC BAA, including independent leagues, winter leagues, and exhibition play, does not constitute Brand Income. Brand Income also excludes all compensation, fees, royalties, and other consideration received for endorsements, sponsorships, personal appearances, speaking engagements, licensing of name, image or likeness, merchandising, or other off-field commercial activities.

 

In consideration of the Brand Percentage to be received by us under the Series RC BAA, Ronny Cruz will be entitled to receive an Initial Advisory Payment of $1,200,000 and Advisory Services, with $350,000 payable within 30 days following June 12, 2026 (the “Restatement Date”) and the remaining unpaid balance guaranteed by Series RC and payable within five (5) months following the Restatement Date, which may be funded from the proceeds of this Offering; if the full Initial Advisory Payment has not been paid by the Outside Date (which, under the Series RC BAA, is the date that is five (5) months following the Restatement Date), the Brand Percentage will automatically adjust on a pro rata basis as provided in the Series RC BAA. The Advisory Services include strategic brand enhancement and promotional advisory services, and Mr. Cruz has agreed to participate in periodic planning meetings, provide 300 autographed items for fan engagement initiatives, promotional campaigns or the series offering, and participate in one annual in-person fan engagement event organized by Series RC, in each case subject to the terms of the Series RC BAA. The initial $350,000 payment to Mr. Cruz is being funded by a promissory note issued by the series to the Manager, which is repayable out of the proceeds of this offering after payment in full of the Series RC Initial Advisory Payment. See “Certain Relationships and Related Party Transactions — Series RC Manager Promissory Note” for more information.

 

Based on the Manager’s internal evaluation of Mr. Cruz’s current professional profile, recent performance, public prospect rankings and potential opportunities for advancement, the Manager currently believes that Mr. Cruz may have a reasonable prospect of earning Brand Income under the Series RC BAA during the term of the investment. See “Prospect Rankings and Independent Evaluations” for more information. However, any such assessment reflects only the Manager’s subjective internal analysis and assumptions, is inherently uncertain, and should not be viewed as a prediction or assurance that Mr. Cruz will be promoted within the affiliated minor league system, to MLB, sign with or play in any other qualifying professional baseball league, reach any compensation level on any particular timeline, including the MLB league minimum, or otherwise generate Brand Income on any particular timeline or at all. See “Risk Factors — Risks Related to Our Business and Industry — Assumptions regarding a Client’s potential to generate Brand Income may prove inaccurate, and investors should not rely on any expectation regarding the timing or likelihood of advancement to, or participation in, any qualifying professional league or competition.” for more information.

 

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During the Term, Ronny Cruz must open and maintain a Participation Account at a bank or financial institution willing to execute the Account Control Agreement and otherwise reasonably acceptable to the series, execute and deliver the springing Account Control Agreement, designate and direct one hundred percent (100%) of his Brand Income to be deposited directly into the Participation Account (including by establishing direct deposit with and delivering payment directions to each payor of Brand Income), and establish and maintain an automatic bi-weekly transfer of the Brand Amount from the Participation Account to the Company Account, in each case subject to the fallback direct-remittance procedures set forth in the Series RC BAA. Ronny Cruz must also maintain complete and accurate books and records of contracts generating Brand Income, Brand Income earned or received and calculations of Brand Amounts payable to Series RC, including contracts, pay stubs, earning statements, invoices, bank statements and records of any expenses or deductions claimed under the definition of Brand Income, and must retain those records during the Term and for 12 months after termination or expiration of the Series RC BAA. In addition, Ronny Cruz must deliver a Semi-Annual Report to the Manager within 10 business days after each June 30 and December 31 during the Term, including the total Brand Income earned or received during the applicable six-month period, the Brand Amount owed to Series RC, year-to-date summaries and other information reasonably requested by Series RC, together with supporting documentation. Series RC, the Manager or their designee may examine, audit and copy relevant books, records and accounts of Ronny Cruz and his Affiliates during the Term and for 12 months after the Term to verify the accuracy of Semi-Annual Reports and Brand Amount payments, subject to the audit procedures and limitations set forth in the Series RC BAA.

 

The Term of the Series RC BAA commences on the Effective Date and, unless earlier terminated in accordance with its terms, will continue until the earlier of: (i) the date that is two years after Ronny Cruz’s official retirement or permanent cessation from actively engaging in the Principal Business, subject to automatic continuation if he resumes active participation in the Principal Business during such two-year termination tolling period; and (ii) the 25th anniversary of the Effective Date of the Series RC BAA. The Series RC BAA may also be terminated earlier by mutual written agreement of the parties or for an uncured material breach following the applicable notice and cure period, and certain Collection Failures, deposit instruction failures, Account Control Agreement failures and intentional diversion of Brand Income constitute material breaches. The Series RC BAA does not terminate solely because the Initial Closing of the series offering does not occur by the Outside Date. If Ronny Cruz resumes active participation in the Principal Business after the end of the termination tolling period and the Series RC BAA has terminated, he must pay the Brand Percentage with respect to his Brand Income to a Revenue Share Trust established for the former members of the applicable series, as provided in the Series RC BAA.

 

If Ronny Cruz voluntarily ceases to engage in the Principal Business prior to the fifth anniversary of the Effective Date of the Series RC BAA for any reason other than Good Reason, he must repay to Series RC, as liquidated damages, an amount equal to (a) the aggregate Initial Advisory Payment actually received by him, plus interest at the lesser of (i) the Prime Rate plus 5% per annum, compounded monthly from the Early Termination Date to the date of repayment and (ii) the maximum rate permitted by applicable law, minus (b) all Brand Amount payments actually made by him to Series RC prior to the Early Termination Date. Such repayment is due in full within 30 days after Ronny Cruz’s cessation of the Principal Business; provided that if the Brand Amounts paid to Series RC exceed the amount otherwise payable under clause (a), no amounts will be owed to Series RC. “Good Reason” exists only if Ronny Cruz’s voluntary early cessation of the Principal Business is due to a significant, documented injury, illness or medical condition (a “Major Injury”) that either renders him physically unable to continue performing in the Principal Business or, if he were to continue, would pose a substantial risk of permanent harm to his health beyond the ordinary risks of the profession. The existence of Good Reason is determined in good faith by the parties, and if the parties disagree, the determination will be made by a qualified independent physician in accordance with the procedure set forth in the Series RC BAA.

 

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Athlete Overview

 

Ronny Cruz is a professional baseball player currently ranked as a top 100 baseball prospect. Mr. Cruz is a right-handed-hitting, right-handed-throwing infielder listed at 6 feet 2 inches and 170 pounds, born August 24, 2006, in Santo Domingo, Dominican Republic. He is currently in the Washington Nationals organization and has been assigned to the Wilmington Blue Rocks, the club’s High-A affiliate in the South Atlantic League; he has logged defensive appearances at shortstop, third base, and second base, with shortstop as his primary position. Cruz attended Miami Christian School (Miami, Florida) after moving from the Dominican Republic, where he established himself as a notable prep prospect and had been committed to the University of Miami prior to signing professionally. He was selected by the Chicago Cubs in the third round (90th overall) of the 2024 MLB Draft and signed on July 20, 2024; on July 31, 2025, the Washington Nationals acquired him from the Cubs in a trade that sent Michael Soroka to Chicago.

 

Mr. Cruz is under a standard Minor League player contract within the Washington Nationals’ farm system and has accrued no Major League service time; he has not appeared in any MLB games and therefore has no Major League statistics.  Consistent with the minor-league compensation framework negotiated in the first Minor League CBA, players at the High-A level receive at least $920 per week during the championship season, with club-provided in season housing, two meals per day, and a $31.50 per diem; spring training and certain offseason training periods are compensated at specified weekly rates, and offseason “dead periods” remain unpaid.  If added to a Major League roster, pre-arbitration players earn no less than the MLB minimum salary, which is $780,000 for the 2026 season under the 2022–2026 MLB collective bargaining agreement; 2027 minimums will be determined in the next CBA following the current agreement’s December 1, 2026 expiration.

 

In light of the foregoing and due to the terms of the Series RC BAA, it could take a number of years for investors to recover their initial investment, and if Ronny Cruz’s career as a professional athlete is cut short, or his earnings otherwise decrease over time, investors may never recover their initial investment. For example, by way of illustration only, if Ronny Cruz is added to a major league roster and his annual salary remained static at $780,000 per year, the annual Brand Amount payable to Series RC would be approximately $78,000 per year. However, before any distributions are made to investors, the series must first pay its Operating Expenses and the Manager may retain additional reserves in its sole discretion. As a result, it could take a significant period of time before investors could expect to recover their initial investment in full, and there can be no assurance that the series will generate sufficient Free Cash Flow to begin making distributions to investors within any particular timeframe. As discussed above in the Risk Factors section, the average career length of a player in the major leagues is less than five (5) years, which raises substantial doubt about Ronny Cruz’s ability to generate sufficient Brand Income over the length of his career for investors to recover their initial investment. See “Risk Factors — Risks Related to This Offering and Ownership of Our Units — Distributions, if any, will vary and may be delayed, reduced, or suspended” and “Risk Factors — Risks Related to Our Business and Industry — Each series is tied to the career outcomes of a single athlete, creating concentrated exposure to unpredictable events” for more information.

 

Athlete Statistics

 

2025

 

Arizona Complex League (Rookie) — 48 G, 188 PA, 174 AB, 20 R, 47 H, 10 2B, 6 3B, 2 HR, 21 RBI, 10 SB, 7 CS, 10 BB, 35 SO, .270 AVG, .314 OBP, .431 SLG, .745 OPS. 

 

2026

 

Fredericksburg Nationals (Single-A) and Wilmington Blue Rocks (High-A) — Combined through May: 36 G, 165 PA, 144 AB, 30 R, 40 H, 5 2B, 2 3B, 7 HR, 26 RBI, 19 SB, 6 CS, 16 BB, 44 SO, .278 AVG, .370 OBP, .486 SLG, .856 OPS; Fredericksburg (A): 14 G, 63 PA, .333/.460/.627 with 3 HR and 15 SB; Wilmington (A+): 22 G, 102 PA, .247/.314/.409 with 4 HR. 

 

Manager’s Evaluation of the Series RC Brand Advisory Agreement

 

The Manager has determined that the Series RC BAA represents a compelling economic opportunity for the Series and its investors, based on Mr. Cruz’s current prospect profile, recent on-field performance, independent third-party rankings, and the relationship between Top 100 prospect status and professional baseball career outcomes, including the potential to generate Brand Income from covered compensation earned in the Principal Business. This evaluation reflects only the Manager’s subjective internal analysis and assumptions as of the date of this Offering Circular and should not be construed as a guarantee or prediction of future performance, advancement within the affiliated minor league system, promotion to MLB, participation in any other qualifying professional baseball league or competition, compensation or Brand Income.

 

Prospect Rankings and Independent Evaluations

 

As of May 2026, Mr. Cruz has been ranked No. 91 overall by Baseball America (May 2026 update), No. 85 overall by FanGraphs (with a Future Value grade of 50) and the 4th-ranked prospect in the Washington Nationals organization by FanGraphs, and has been reported as entering MLB Pipeline’s Top 100. Baseball America’s Geoff Pontes has publicly compared Mr. Cruz’s early-career developmental trajectory to that of Fernando Tatis Jr., and FanGraphs’ Eric Longenhagen has compared his offensive profile to that of Junior Caminero, citing elite bat speed and weaponized power.

 

In 2026, Mr. Cruz slashed .333/.460/.627 with 3 home runs, 8 extra-base hits and 15 stolen bases in 14 games at Single-A Fredericksburg, earning promotion to High-A Wilmington despite never having played above the Arizona Complex League prior to 2026. Through his combined 2026 season (36 games), he has posted a .278/.370/.486 line with 7 home runs, 19 stolen bases and an .856 OPS, a substantial improvement over his 2025 Arizona Complex League performance (.270/.314/.431, .745 OPS in 48 games). FanGraphs assigns Mr. Cruz a 50/60 future raw power grade, notes peak exit velocities of 110 mph with an EV90 of 105.5 mph and a 43% hard-hit rate, plus arm strength (55-grade) and defensive versatility across shortstop, second base and third base. The Manager believes that this accelerating trajectory, combined with Mr. Cruz’s age (he will not turn 20 until August 2026) and the Nationals’ aggressive promotion schedule, evidences strong organizational conviction in his talent.

 

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Historical Outcomes for Top 100 Prospects

 

According to a January 2026 Baseball America study of its Top 100 Prospects lists from 1990 through 2022, approximately 91.2% of the 1,794 players who appeared on at least one Top 100 list ultimately reached the major leagues, with the rate improving to approximately 96% since 2010; players ranked 81 through 100—the range in which Mr. Cruz currently falls—reached the majors approximately 89–90% of the time, compared with only approximately 17.6% of all signed MLB draft picks. The same study found that approximately 46% of Top 100 prospects achieved 5 or more career Wins Above Replacement (“WAR”), 33% achieved 10 or more WAR, 18% achieved 20 or more WAR and 9% achieved 30 or more WAR.

 

The following table provides an illustrative framework for evaluating potential major-league salary outcomes for a Top 100 prospect and the corresponding Brand Amount that would be payable to the Series under the Series RC BAA. The table is based on historical performance outcomes, the current MLB economic structure, the 2026 MLB minimum salary of $780,000, the reported 2026 average MLB salary of approximately $5.34 million, the reported 2026 median MLB salary of approximately $1.4 million, and publicly reported career salary ranges for established and elite players. These figures are estimates only and should not be relied upon as predictions of Mr. Cruz’s future performance, compensation, Brand Income or Brand Amounts.

 

Illustrative Outcome Tier  Approximate
Historical Top
100 Cohort
  Typical Time to
Reach Salary Tier
After MLB Debut
  Illustrative Annual MLB Salary Band  Illustrative Career MLB Salary Band  Illustrative Brand Amount to
Series at 10%
Does not reach MLB  Approximately 9% to 11%  Not applicable  $0 MLB salary  $0 MLB salary  $0 from MLB salary
Brief MLB career or limited role player, less than 5 career WAR  Approximately 45%  1 to 5 years  Approximately MLB minimum to $3 million  Approximately $3 million to $15 million  Approximately $300,000 to $1.5 million
Useful contributor or lower-end regular, 5 to 10 career WAR  Approximately 13%  3 to 7 years  Approximately $1 million to $8 million  Approximately $15 million to $40 million  Approximately $1.5 million to $4 million
Solid regular, 10 to 20 career WAR  Approximately 15%  4 to 10 years  Approximately $3 million to $15 million or more  Approximately $40 million to $100 million  Approximately $4 million to $10 million
Star-level player, 20 to 30 career WAR  Approximately 9%  6 to 12 years  Approximately $10 million to $30 million or more  Approximately $100 million to $200 million  Approximately $10 million to $20 million
Superstar or franchise-level player, 30 or more career WAR  Approximately 9%  6 to 15 years or more  Approximately $20 million to $40 million or more  Approximately $200 million to $400 million or more  Approximately $20 million to $40 million or more

 

The following table separately illustrates the potential timing of Brand Income if Mr. Cruz remains in the minor leagues for a period of time and is later added to a Major League roster. This table is not a projection of Mr. Cruz’s call-up date, service-time status, compensation or future Brand Income. It is included only to illustrate that the Series may receive Brand Amounts during the minor-league period, but that the magnitude of such Brand Amounts would generally be expected to increase materially only if Mr. Cruz reaches the major leagues and earns MLB-level compensation.

 

Career Stage  Illustrative Calendar Year if MLB Debut
Occurred in 2027
  Typical
Compensation Status
  Illustrative Compensation Subject to Brand Amount  Illustrative Brand Amount to Series at 10%
Minor-league period  Before MLB debut  Minor-league compensation  Actual covered minor-league compensation  10% of covered minor-league compensation
MLB Year 1  2027  Pre-arbitration  $780,000 to $1.0 million  $78,000 to $100,000
MLB Year 2  2028  Pre-arbitration  $780,000 to $1.25 million  $78,000 to $125,000
MLB Year 3  2029  Pre-arbitration or pre-arbitration bonus eligible  $780,000 to $1.5 million  $78,000 to $150,000
MLB Year 4  2030  First arbitration-eligible year  $2 million to $5 million  $200,000 to $500,000
MLB Year 5  2031  Second arbitration-eligible year  $4 million to $8 million  $400,000 to $800,000
MLB Year 6  2032  Third arbitration-eligible year  $6 million to $12 million  $600,000 to $1.2 million
MLB Year 7 and thereafter  2033 and thereafter  Free agency or long-term extension  $10 million to $25 million or more  $1.0 million to $2.5 million or more

 

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These figures are illustrative only and should not be relied upon as predictions of any individual player’s earnings, including Mr. Cruz’s. They are derived from historical salary data, the current MLB minimum salary of $780,000, the 2026 average MLB salary of $5.34 million, the 2026 median MLB salary of approximately $1.4 million, and publicly reported career salary totals for elite players; actual earnings depend on career duration, performance trajectory, arbitration outcomes, free-agent market conditions and the terms of future collective bargaining agreements. The average MLB career is approximately 5.5 years, and under the current MLB economic structure players earn at or near the league minimum during their first three years of service, become eligible for salary arbitration in years four through six and reach unrestricted free agency after six years of major-league service. The illustrative figures do not represent amounts currently payable or expected to be payable under Mr. Cruz’s existing Minor League player contract with the Washington Nationals, and they do not model performance bonuses, pre-arbitration bonus pool allocations or other included Brand Income beyond the salary amounts expressly shown. Endorsement income, appearance fees, sponsorship income, licensing income, merchandising income and other off-field commercial compensation are excluded from Brand Income under the Series RC BAA. No representation is made that Mr. Cruz will reach the major leagues, be added to a Major League roster in 2027 or any other year, remain on a Major League roster for any period, achieve any particular WAR level, become arbitration eligible, reach free agency, or earn any particular level of compensation. See “Risk Factors — Risks Related to Our Business and Industry — Assumptions regarding a Client’s potential to generate Brand Income may prove inaccurate” for more information.

 

Economic Analysis

 

Under the Series RC BAA, the Series is entitled to receive the Brand Amount equal to 10% of Mr. Cruz’s Brand Income in exchange for the $1,200,000 Initial Advisory Payment to Mr. Cruz. Brand Income includes Mr. Cruz’s covered minor-league compensation, major-league salary, bonuses and other covered compensation, in each case to the extent included in the definition of Brand Income under the Series RC BAA. Accordingly, the Series may begin receiving Brand Amounts before Mr. Cruz reaches the major leagues. However, the Manager expects that any Brand Amounts derived solely from covered minor-league compensation would be limited relative to the Initial Advisory Payment, the Series’ Operating Expenses and other Series-level obligations. As a result, the Manager believes that the economic return profile of the Series RC BAA depends primarily on whether Mr. Cruz reaches MLB, remains employed at the major-league level and earns materially higher compensation over time.

 

Based on the illustrative outcome tiers described above, a career in the approximately 46% cohort of Top 100 prospects that achieved 5 or more career WAR could correspond to aggregate MLB salary-based Brand Income of approximately $15 million to $400 million or more. At a 10% Brand Percentage, that level of MLB salary-based Brand Income would produce a gross Brand Amount payable to the Series of approximately $1.5 million to $40 million or more over the term of the Series RC BAA, before payment of Series expenses, reserves and other Series-level obligations, plus 10% of any covered minor-league compensation and any other Brand Income earned in the Principal Business. In a lower-outcome scenario in which Mr. Cruz reaches the majors but has a brief career generating approximately $3 million to $15 million of aggregate MLB salary-based Brand Income, the corresponding gross Brand Amount would be approximately $300,000 to $1.5 million, plus 10% of any covered minor-league compensation and any other Brand Income earned in the Principal Business. Although that lower-outcome scenario may produce cash flow to the Series, there can be no assurance that it would be sufficient for investors to recover their initial investment after payment of Operating Expenses, reserves, Advisory Services costs, the Series RC Maintenance Fee, any Manager Promissory Note interest, taxes and other Series-level obligations.

 

Illustrative Gross Break-Even Analysis

 

The following discussion illustrates how long it could take Series RC investors to recover their initial investment under the illustrative compensation ranges set forth above. This analysis assumes that Series RC sells the Series RC Maximum Offering Amount of $1,290,000, issues 12,900 Series RC Units at $100 per Unit, and is entitled to receive the Brand Amount equal to 10% of Mr. Cruz’s Brand Income under the Series RC BAA.

 

For purposes of this simplified illustration, the analysis compares aggregate gross Brand Amounts received by the Series to the $1,290,000 maximum offering amount as a gross break-even reference point. This analysis does not deduct Operating Expenses, reserves, Advisory Services costs, the Series RC Maintenance Fee, any Manager Promissory Note interest, taxes or other Series-level obligations. It also does not give effect to the timing of distributions, the Manager’s discretion to retain reserves, or the time value of money. As a result, the time required for investors to recover their initial investment through actual distributions would be longer than the gross break-even point shown below, if recovery occurs at all.

 

At a 10% Brand Percentage, Series RC would need to receive $1,290,000 of aggregate gross Brand Amounts to equal the gross proceeds raised in the maximum offering. This would require Mr. Cruz to generate approximately $12.9 million of aggregate Brand Income before taking into account any Series expenses, reserves or other obligations.

 

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The table below illustrates the approximate gross break-even timing under the illustrative MLB-debut-in-2027 scenario described above. The table assumes no Brand Amounts from covered minor-league compensation before MLB debut and no Brand Amounts from bonuses, endorsements, appearance fees, sponsorship income or other Brand Income, unless included in the illustrative MLB salary ranges below.

 

Scenario  2027
Gross Brand Amount
   2028
Gross Brand Amount
   2029
Gross Brand Amount
   2030
Gross Brand Amount
   2031
Gross Brand Amount
   2032
Gross Brand Amount
   Aggregate Gross Brand Amount Through Break-Even Year   Approximate Gross Break-Even Timing
Lower end of illustrative compensation ranges  $78,000   $78,000   $78,000   $200,000   $400,000   $600,000   $1,434,000   By end of 2032
Upper end of illustrative compensation ranges  $100,000   $125,000   $150,000   $500,000   $800,000    Not required for gross break-even   $1,675,000   By end of 2031

 

Under the lower-end illustrative scenario, Series RC would receive aggregate gross Brand Amounts of approximately $234,000 through 2029, approximately $434,000 through 2030, approximately $834,000 through 2031 and approximately $1,434,000 through 2032. Accordingly, under that scenario, aggregate gross Brand Amounts would not exceed the $1,290,000 maximum offering amount until approximately the end of 2032, before taking into account any expenses, reserves or other Series-level obligations that would reduce or delay distributions to investors.

 

Under the upper-end illustrative scenario, Series RC would receive aggregate gross Brand Amounts of approximately $375,000 through 2029, approximately $875,000 through 2030 and approximately $1,675,000 through 2031. Accordingly, under that scenario, aggregate gross Brand Amounts would not exceed the $1,290,000 maximum offering amount until approximately the end of 2031, before taking into account any expenses, reserves or other Series-level obligations that would reduce or delay distributions to investors.

 

The foregoing illustration should not be read to imply that investors would recover their initial investment by 2031, 2032 or any other date. Series RC may receive little or no material Brand Amounts if Mr. Cruz remains in the minor leagues for an extended period, does not reach MLB or another qualifying professional baseball league, experiences injury or performance decline, earns less compensation than the illustrative ranges assume, or has a shorter-than-expected career. In addition, before any distributions are made to investors, Series RC must first pay Operating Expenses and other Series-level obligations, and the Manager may retain additional reserves in its sole discretion. Therefore, actual investor recovery could be substantially later than the illustrative gross break-even point, and investors may never recover their initial investment.

 

The Manager believes that the 25-year term of the Series RC BAA is an important component of the Series’ economic rationale. The term is designed to permit the Series to participate in Brand Income across Mr. Cruz’s full potential professional career, including periods in which he may become arbitration eligible, reach free agency, enter into a long-term extension, receive performance-based compensation or generate other Brand Income in the Principal Business. However, the timing and amount of any Brand Amounts are materially uncertain. Even if Mr. Cruz reaches MLB, the Series may receive only modest Brand Amounts during his initial pre-arbitration years, and material Brand Amounts would generally require sustained major-league employment, continued performance, health, roster retention and compensation growth over multiple seasons.

 

The Manager acknowledges that substantial risks attend any investment tied to the career outcomes of a single athlete. Mr. Cruz has accrued no major-league service time, has not appeared in any MLB game, and faces inherent risks including injury, developmental plateaus, organizational decisions outside his control, roster constraints, changes in future collective bargaining agreements and the general uncertainty of baseball player development. FanGraphs’ scouting report also identifies hit-tool concerns related to breaking-ball identification and notes that Mr. Cruz’s aggressive approach may result in elevated strikeout rates at higher levels. As noted above, approximately 70% of Top 100 prospects fail to meet the performance expectations associated with their ranking, the average MLB career is short, and there can be no assurance that Mr. Cruz will sustain professional baseball employment for a period sufficient to generate returns exceeding investors’ initial contributions.

 

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Before any distributions are made to investors, the Series must first pay its Operating Expenses and other Series-level obligations, and the Manager may retain additional reserves in its sole discretion. As a result, it could take a significant period before investors recover their initial investment in full, and there can be no assurance that the Series will generate sufficient Free Cash Flow to begin making distributions to investors within any particular timeframe. If Mr. Cruz’s career as a professional athlete is cut short, if he does not reach the major leagues, if his earnings are lower than anticipated, or if Series expenses materially reduce distributable cash flow, investors may never recover their initial investment. See “Risk Factors — Risks Related to This Offering and Ownership of Our Units — Distributions, if any, will vary and may be delayed, reduced, or suspended,” “Risk Factors — Risks Related to Our Business and Industry-Each series is tied to the career outcomes of a single athlete, creating concentrated exposure to unpredictable events” and “Risk Factors-Risks Related to Our Business and Industry — Assumptions regarding a Client’s potential to generate Brand Income may prove inaccurate” for more information.

 

Notwithstanding the foregoing risks, the Manager believes the Series RC BAA represents a favorable risk-adjusted opportunity based on the following factors taken together: Mr. Cruz’s reported Top 100 status across multiple independent ranking systems; the greater-than-89% historical rate at which similarly ranked Top 100 prospects reach the major leagues; the approximately 46% historical rate at which Top 100 prospects achieve 5 or more career WAR; Mr. Cruz’s elite physical tools, including plus raw power and bat speed generating major-league-caliber exit velocities at age 19; his accelerating 2026 performance trajectory; and the favorable comparisons made by recognized industry evaluators. These factors, in the Manager’s view, support the economic rationale for the Series and the terms of the Series RC BAA, although no assurance can be given that any of these factors will result in major-league employment, material Brand Income, Free Cash Flow or distributions to investors.

 

Series RC-Specific Risk Factors

 

The following are one or more risk factors specific to Series RC. Such risk factors should be read in conjunction with the risks described elsewhere which are generally applicable to the Company and its series, and each series offering.

 

Series RC will use approximately 93% of the gross proceeds from this offering to fund the Initial Advisory Payment to Ronny Cruz, while Series RC will receive only 10% of his qualifying Brand Income, and investors may need to wait a significant period of time, if ever, to recover their investment.

 

If Series RC sells the maximum offering amount of $1,290,000, $1,200,000, or approximately 93.0% of the gross proceeds, will be used to fund the Initial Advisory Payment to Ronny Cruz under the Series RC BAA, including $850,000 paid from offering proceeds and repayment of the $350,000 Manager Promissory Note that funded the initial tranche of that payment. In return, Series RC is entitled to receive the Brand Amount equal to 10% of Mr. Cruz’s Brand Income, which generally consists of covered gross on-field professional baseball compensation earned in qualifying leagues and expressly excludes endorsements, sponsorships, appearances, licensing, merchandising and other off-field commercial income. As a result, before taking into account Operating Expenses, reserves, Advisory Services costs, the Series RC Maintenance Fee and other series-level obligations, Mr. Cruz would need to generate approximately $12.9 million of aggregate Brand Income for Series RC to receive gross Brand Amount payments equal to the $1,290,000 maximum offering amount, and a greater amount would be required before investors could recover their initial investment through distributions. Mr. Cruz currently has no Major League service time and no Major League statistics, and any Brand Amounts based only on minor-league compensation are expected to be limited relative to the Initial Advisory Payment and series expenses. Even if Mr. Cruz reaches MLB, the Series may receive only modest Brand Amounts during his pre-arbitration years, and material Brand Amounts may depend on his health, performance, roster retention, compensation growth, arbitration eligibility, free agency or long-term extension outcomes over multiple seasons. Accordingly, investors may not recover their initial investment for a significant period of time, and may never recover their investment, if Mr. Cruz does not generate sufficient Brand Income or if expenses, reserves or other series-level obligations materially reduce Free Cash Flow.

 

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and the notes thereto appearing elsewhere in this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections entitled “Risk Factors,” “Cautionary Statement Regarding Forward-Looking Statements,” and elsewhere in this Offering Circular. Please see the notes to our Financial Statements for information about our Significant Accounting Policies.

 

Company Overview

 

Since its formation in November 2025, the Company has been engaged primarily in developing the financial, offering and other materials to begin fundraising. We are considered to be a development stage company, since we are devoting substantially all of our efforts to establishing our business and planned principal operations have only recently commenced.

 

Emerging Growth Company

 

We may elect to become a public reporting company under the Exchange Act. If we elect to do so, we will be required to publicly report on an ongoing basis as an emerging growth company, as defined in the JOBS Act, under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth companies, including, but not limited to:

 

not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

 

being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

 

being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As a result, an emerging growth company may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

We would expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion; (ii) the date that we become a large accelerated filer as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

 

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Operating Results

 

Revenues are generated at the series level. As of December 31, 2025, no series has generated any revenues. Series RC is expected to generate revenues immediately.

 

We have incurred minimal Operating Expenses for the period since inception through December 31, 2025. Each series will be responsible for its own Operating Expenses.

 

Liquidity and Capital Resources

 

As of December 31, 2025, the Company had $0.00 in cash and no financial obligations and no series had any cash or cash equivalents or any financial obligations.

 

Plan of Operations

 

Our first series, Agentiq Sports 1 Series RC, will be offered in connection with a Brand Advisory Agreement entered into with Ronny Cruz, a professional baseball player. See “Description of the Series and Their Assets Assets — Agentiq Sports 1 Series Ronny Cruz” for more information. The Agentiq Sports 1 Series RC offering is expected to launch upon qualification of this Offering Circular by the SEC, which we anticipate will occur in the second quarter of 2026. Assuming the Minimum Offering Amount for Agentiq Sports 1 Series RC is raised, we intend to close the offering and deploy the Initial Advisory Payment to Mr. Cruz in accordance with the terms of the Brand Advisory Agreement. Agentiq Sports 1 Series RC will then begin collecting Brand Amount payments as and when Brand Income is earned by Mr. Cruz during his professional baseball career.

 

In addition to Series RC, we anticipate launching approximately 10 to 20 additional series during 2026, and approximately 20 additional series during 2027, each in connection with a Brand Advisory Agreement with a separate professional athlete. We intend to focus our initial efforts on early-career athletes in Major League Baseball, though we may expand to other professional sports over time. Our ability to launch additional series will depend on our success in identifying and signing athletes to Brand Advisory Agreements on terms that we believe will be attractive to investors, as well as market conditions, investor demand, and the continued qualification of our offering materials with the SEC.

 

The proceeds from any offerings closed during the next twelve months will be used to make Client Advance payments to the Clients under Brand Advisory Agreements for the series conducting the offerings, to repay loans for Client Advance payments, if applicable, and to cover Offering Expenses and ongoing Operating Expenses for those series. We expect that our primary operating costs during this period will consist of management fees, legal and accounting expenses, transfer agent fees, platform technology and maintenance costs, and personnel costs borne by the Manager. We do not anticipate that any series will require additional capital beyond the proceeds of its offering to fund its operations during this period.

 

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MANAGEMENT

 

Neither the Company nor any of its series has any employees or directors, and neither the Company nor any of its series is expected to have any employees or directors in the future. The Company and each series are externally managed by the Manager, and all management, advisory, administrative and operational functions for the Company and each series are performed, or arranged to be performed, by the Manager and its officers, directors, employees, affiliates, agents or third-party service providers, as applicable.

 

The Manager

 

The Company is managed by Agentiq Sports, Inc., a Delaware corporation, which serves as the sole Manager of the Company and, by designation, the initial Manager of each series. The Manager is responsible for the overall direction and operations of the Company’s business and has full authority under the Operating Agreement and applicable Series Designations to manage each series and the Company’s day-to-day affairs. In its role as Manager, Agentiq Sports, Inc. will perform or arrange for others to perform all managerial functions for each series, including identifying and sourcing potential Brand Advisory Agreement opportunities; conducting due diligence on prospective Clients, such as evaluating an athlete’s career prospects, character, contractual arrangements, compensation history and legal or league-rule considerations; negotiating and executing the Brand Advisory Agreements on behalf of each series; coordinating the launch of each series offering, including regulatory compliance, marketing of the offering and investor relations during the offering period; administering the BAA, including payment, reporting, audit, collection and enforcement rights; and overseeing the provision of Advisory services to each Client during the Term. The Manager will also be responsible for accounting and financial reporting for each series, maintaining separate books and records for each series, managing series bank accounts, and ensuring compliance with ongoing SEC reporting requirements and other laws. Investors will not be involved in management; they are passive members of each series, and the Manager exercises sole decision-making authority for each series pursuant to the Operating Agreement and applicable Series Designations.

 

The Manager has established a board of directors currently consisting of one member, Zachary Kurtz. The Manager’s sole director and executive officer is an employee of the Manager. The executive offices of the Manager are located at 445 Bryant Street, San Francisco, CA 94107, and the telephone number of the Manager’s executive offices is (201) 918-2945.

 

Executive Officers & Directors

 

The following table sets forth certain information with respect to each of the directors and executive officers of the Manager:

 

Executive Officer  Age  Position Held with our Company (1) (2)  Position Held with the Manager
Zachary C. Kurtz  29  Chief Executive Officer, Chief Financial Officer, Sole Director  Chief Executive Officer

 

(1)The current executive officer and director, whose term in office began upon the organization of the Company on November 3, 2025, will serve in these capacities indefinitely, or until his successor is duly elected and qualified.

 

(2)The executive officer of the Manager is currently devoting a significant amount of his working time to the operations of the Company to satisfy his responsibilities to the management of the Company.

 

Zachary C. Kurtz is a fintech operator and entrepreneur with deep experience across product, analytics, and go-to-market functions at venture-backed technology companies, as well as a long-standing background in competitive athletics and the sports business ecosystem. In August 2025, Mr. Kurtz began working full time on Agentiq, where he serves as a founder focused on building technology and financial infrastructure at the intersection of sports, fintech, and athlete monetization. Since January 2019, Mr. Kurtz has also served as the Founder and Chief Executive Officer of LV Lumber Bat Company, a baseball equipment company serving amateur, collegiate, and professional athletes. The business has grown consistently year over year and has relationships with professional players, college NIL athletes, and sports agents. In addition to its commercial operations, LV Lumber Bat Company has organized charitable fundraising initiatives supporting pediatric cancer causes. From April 2023 through May 2025, Mr. Kurtz served as Product & Analytics Lead at Catch, a financial technology company backed by Sequoia Capital, Index Ventures, Bain Capital, and Forerunner Ventures. In that role, he led product strategy and development for Catch’s card-based financial products, managed cross-functional engineering teams, and drove improvements in user growth, onboarding conversion, and retention. From February 2022 through April 2023, he served as Business Operations & Analytics Lead at Catch, where he owned financial modeling, company KPIs, board reporting, and data infrastructure, and partnered closely with the executive team on strategic planning and go-to-market initiatives. Prior to Catch, Mr. Kurtz worked at Unqork from June 2020 to February 2022 in Customer Success Strategy and Analytics, where he focused on customer health modeling, product feedback loops, and enterprise account segmentation. Before that, he was an Associate at Clarify Health Solutions from July 2019 to March 2020, working on healthcare analytics and product implementations for large health systems and biopharmaceutical clients.

 

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Mr. Kurtz earned a Bachelor of Science in Business Administration with concentrations in Finance and Economics and a minor in Mathematics from the University of Richmond, graduating in May 2019. While at the University of Richmond, he was a Division I varsity baseball player from 2016 to 2019 and a multi-year academic honor recipient.

 

The Manager and the Operating Agreement

 

The Manager’s interests may at times diverge from those of the investors, and the Manager is entitled to certain forms of compensation from each series as described below. As a result, conflicts of interest may arise. For example, the Manager might have an incentive to favor one series over another in allocating a limited investment opportunity, or the Manager or its affiliates may engage in transactions with a series, such as providing services to or selling assets to a series, from which the Manager or its affiliates could indirectly benefit. The Operating Agreement and our policies address some potential conflicts – including requiring allocation of shared expenses or opportunities in accordance with a stated Allocation Policy and disclosing material transactions with affiliates – but not every potential conflict can be eliminated. Investors should refer to “Management” and “Risk Factors — Risks Related to Conflicts of Interest” for further details on the Manager’s role, compensation, and potential conflicts.

 

The Manager will perform its duties and responsibilities pursuant to the operating agreement. The Manager will maintain a contractual, as opposed to a fiduciary relationship, with us and our investors. Furthermore, we have agreed to limit the liability of the Manager and to indemnify the Manager against certain liabilities.

 

The operating agreement further provides that our Manager, in exercising its rights in its capacity as the managing member, will be entitled to consider only such interests and factors as it desires, including its own interests, and will have no duty or obligation (fiduciary or otherwise) to give any consideration to any interest of or factors affecting the Company, any Units or any of the Unit holders and will not be subject to any different standards imposed by the operating agreement, the LLC Act or under any other law, rule or regulation or in equity. In addition, the Operating Agreement provides that our Manager will not have any duty (including any fiduciary duty) to the Company, any series or any of the Unit holders. See “Risk Factors — Risks Related to Conflicts of Interest — Our Manager may act in its own interests and has eliminated fiduciary duties to the fullest extent permitted by law, which may result in decisions that are adverse to us, a series or holders of Units” for more information.

 

Responsibilities of the Manager 

 

The responsibilities of the Manager include:

 

  Investment Advisory, Origination and Acquisition Services such as approving and overseeing our overall investment strategy, which will consist of elements such as investment selection criteria, diversification strategies and asset disposition strategies;
     
  Offering Services such as the development of our series offerings, including the determination of their specific terms;
     
  Management Services such as investigating, selecting, and, on our behalf, engaging and conducting business with such persons as the Manager deems necessary to the proper performance of its obligations under the operating agreement, including but not limited to consultants, accountants, lenders, technical Managers, attorneys, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, developers, construction companies, property Managers and any and all persons acting in any other capacity deemed by the Manager necessary or desirable for the performance of any of the services under the operating agreement;
     
  Accounting and Other Administrative Services such as maintaining accounting data and any other information concerning our activities as will be required to prepare and to file all periodic financial reports and returns required to be filed with the SEC and any other regulatory agency, including annual financial statements, and managing and performing the various administrative functions necessary for our day-to-day operations;
     
  Investor Services such as managing communications with our investors, including answering phone calls, preparing and sending written and electronic reports and other communications;

 

  Financing Services such as monitoring and overseeing the service of our debt facilities and other financings, if any; and 
     
  Disposition Services such as evaluating and approving potential asset dispositions, sales or liquidity transactions.

 

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Manager Compensation

 

In return for its services, the Manager (and/or its affiliates) will earn fees from each series, as well as be entitled to reimbursement of certain expenses. These arrangements are set forth in our Operating Agreement and will be confirmed for each series in that series’ Series Designation. There are two primary fees payable to the Manager by each series:

 

Form of Compensation   Description
Negotiation Fee   Each series shall pay to the Manager a one-time negotiation fee (the “Negotiation Fee”) in an amount equal to between 4% and 8% of the Initial Advisory Payment payable by the series to the Client under the applicable Brand Advisory Agreement, which amount is inclusive of the Manager’s compensation and associated out-of-pocket costs and expenses described in this section; provided, that if, following the termination or completion of the applicable offering, the amount of such Initial Advisory Payment actually paid to the Client is less than the amount initially contemplated, the Negotiation Fee shall be adjusted downward to reflect the percentage specified in the applicable Series Designation applied to the amount actually paid. The Negotiation Fee covers costs and expenses incurred in identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement, including fees and expenses payable to any agent or intermediary of the Client and customary deal expenses such as travel and lodging, diligence and background checks, third-party research, legal and documentation costs and closing-related technology or data-room charges. The Negotiation Fee shall be payable at or promptly following each closing of the applicable offering from the gross proceeds of the offering.
     
Maintenance Fee   Subject to the revenue condition described below, as an annual, ongoing expense of each series, the series shall pay to the Manager a maintenance fee (the “Maintenance Fee”) for the Manager’s management and administration of the series, its business, its assets and the related Brand Advisory Agreement. The Maintenance Fee shall be equal to between 0.5% and 2.5% per annum of the aggregate capital contributions made to the applicable series, calculated as of the applicable payment date or such other measurement date as the Manager may reasonably determine consistent with the operating agreement. The Maintenance Fee shall be payable quarterly in arrears from funds legally available therefor and shall be treated as an expense of the series. Promptly following the closing of the applicable series offering, the series shall pay to the Manager any portion of the Maintenance Fee that accrued prior to such closing but was not previously paid; provided, that the Maintenance Fee shall be pro-rated for any partial period during which it first becomes payable. Notwithstanding anything to the contrary in the applicable Series Designation or the operating agreement, the Maintenance Fee shall not accrue, become due or be payable unless and until the series is generating revenues. For the avoidance of doubt, any catch-up payment shall apply only to amounts that accrued in accordance with the revenue condition set forth in the immediately preceding sentence.

 

Reimbursement of Expenses

 

In addition to these fees, the Manager is entitled to be reimbursed by each series for any Operating Expenses that it pays on behalf of that series. Operating Expenses include a wide range of costs related to the series’ business, such as insurance premiums, legal and accounting costs, audit fees, any applicable taxes, filing fees, and other ordinary expenses. See “Description of Business — General Description of Series Level Operations” for more information. Typically, the Manager will advance payment for many of these expenses , particularly during the early life of a series before it generates steady income, and then periodically recover those amounts from the series’ funds as an “Operating Expense Reimbursement Obligation.” The Manager may choose to waive reimbursement or cover certain expenses entirely at its discretion , including to support a new series that has not yet generated income, but it is under no obligation to do so. Any unreimbursed expenses borne by the Manager, or any fees waived, constitute voluntary support that the Manager may discontinue at any time. Investors should understand that the Manager’s ability to collect fees and reimbursements from series, even during periods when a series has little income, could create a financial burden on a series, and the Manager’s interest in receiving its fees might conflict with the investors’ interest in maximizing net distributable cash. These expenses include, but are not limited to:

 

  expenses associated with the listing of our Units (or any other securities of the Company) on a securities exchange or alternative trading system, if applicable, or with the formation of the Company or any series or subsidiary thereof and the offering, issuance and distribution of our Units (or any other securities of the Company), such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees;
     
  expenses of organizing, revising, amending, converting, modifying or terminating the Company or any series or subsidiary thereof;

 

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  the compensation and expenses of our directors and the allocable share of cost of liability insurance under a universal insurance policy covering the Manager or its affiliates and/or us to indemnify our directors and executive officers;
     
  costs associated with the establishment and maintenance of any credit facilities, repurchase agreements, and securitization vehicles or other indebtedness of ours (including commitment fees, accounting fees, legal fees, closing and other similar costs);

 

  expenses connected with communications to any lenders and holders of our securities or of our subsidiaries and other bookkeeping and clerical work necessary in maintaining relations with any lenders and holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs of preparing and filing required reports with the SEC, the costs payable by us to any transfer agent and registrar in connection with the listing and/or trading of our Units on any exchange, the fees payable by us to any such exchange in connection with its listing, costs of preparing, printing and mailing our annual report to our investors and proxy materials with respect to any meeting of our investors;
     
  expenses incurred by Managers, officers, personnel and agents of the Manager for travel on our behalf and other out-of-pocket expenses incurred by Managers, officers, personnel and agents of the Manager in connection with the purchase, origination, financing, refinancing, sale or other disposition of an asset;
     
  costs and expenses incurred with respect to market information systems and publications, pricing and valuation services, research publications and materials, and settlement, clearing and custodial fees and expenses;
     
  compensation and expenses of our custodian and transfer agent, if any;
     
  all other costs and expenses relating to our business operations, including, without limitation, the costs and expenses of acquiring, owning, protecting, maintaining, developing and disposing of assets, including appraisal, reporting, audit and legal fees;
     
  all costs and expenses relating to the development and management of our website;
     
  any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise), including any costs or expenses incurred in connection therewith, against us or any subsidiary, or against any trustee, director or executive officer of us or of any subsidiary in his or her capacity as such for which we or any subsidiary is required to indemnify such trustee, director or executive officer by any court or governmental agency; and
     
  all other expenses actually incurred by the Manager (except as described below) which are reasonably necessary for the performance by the Manager of its duties and functions under the operating agreement.

 

The Manager does not receive a performance fee or profit allocation from the series (i.e., there is no “carried interest” or percentage of profits that goes to the Manager beyond the fees described). Instead, the Manager’s economic incentive is primarily through the Negotiation and Maintenance Fees, and potentially through ownership of Units it may acquire. The Manager or its affiliates are allowed (but not required) to invest in Units alongside other investors, either in the initial offering or via open market purchases, subject to any limitations in the Operating Agreement. If the Manager does hold Units, it will share in distributions on the same basis as other investors for those Units, which may align its interests with investors to some degree. However, the Manager could also sell its Units or have different liquidity considerations, so this alignment is not assured.

 

The Manager is also the owner and operator of the Platform, as described below, through which the series offerings are conducted. The Manager may benefit indirectly from platform-related activities or economies of scale as more series are launched. All material affiliated transactions will be disclosed in this Offering Circular or in subsequent reports. See “Risks Related to Conflicts of Interest” for more information.

 

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Compensation of Executive Officers

 

We do not currently have any employees nor do we currently intend to hire any employees who will be compensated directly by the Company. Each of these individuals receives compensation for his or her services, including services performed for us on behalf of the Manager, from the Manager. Although we will indirectly bear some of the costs of the compensation paid to these individuals, through fees we pay to the Manager, we do not intend to pay any compensation directly to these individuals.

 

Indemnification of the Manager

 

The operating agreement provides that none of our Manager, any current or former directors, officers, employees, partners, shareholders, members, controlling persons, agents or independent contractors of our Manager nor persons acting at the request of the Company in certain capacities with respect to other entities will be liable to the Company, any series or any Unit holders for any act or omission taken by them in connection with the business of the Company or any series that has not been determined in a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to constitute fraud, willful misconduct or gross negligence.

 

Each series will indemnify these persons out of its assets against all liabilities and losses (including amounts paid in respect of judgments, fines, penalties or settlement of litigation, including legal fees and expenses) to which they become subject by virtue of serving the Company or such series and with respect to any act or omission that has not been determined by a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to constitute fraud, willful misconduct or gross negligence.

 

Term and Removal of the Manager

 

The Manager, Agentiq Sports, Inc., is entrusted with broad authority to manage the Company and each series, and investors cannot readily replace it. Under the Operating Agreement, the Manager will serve for an indefinite term, and removing the Manager requires a “for cause” event, meaning that the Manager has been found by a final, non-appealable judgment of a court of competent jurisdiction to have committed fraud in connection with a series or the Company that has a material adverse effect on the Company, and even then, removal would need to be approved by a Super Majority Vote of Unit holders representing at least 80% of the outstanding Units of all series, voting together as a single class. This threshold is exceptionally difficult to satisfy. If the Manager performs poorly , including by making disadvantageous business decisions, failing to effectively support Clients or failing to act in investors’ best interests, but has not engaged in conduct that meets this standard, investors lack a mechanism to remove it. Even in the unlikely scenario where cause for removal exists, coordinating a Super Majority Vote among all Unit holders can be impractical.

 

Furthermore, the operating agreement provides that upon a for-cause removal of the Manager, investors may choose to liquidate and dissolve all series, which could result in shutting down the business entirely. This means that the only path to removal may come with significant disruption and possibly loss of remaining asset value. The Manager may assign its rights, obligations and title as Manager to an Affiliate of the Manager, and may delegate certain of its duties under the operating agreement to any of its Affiliates, in each case without the approval of our investors.

 

Investors should not expect to have any practical ability to change the Manager or influence management personnel. The success of your investment will depend on the Manager’s continued service, and if its performance is unsatisfactory, your options as an investor are very limited. The operating agreement does not grant the Manager the right to withdraw immediately as Manager solely because the Company or any series is or may become required to register under the Investment Company Act. Instead, upon any resignation of the Manager, the operating agreement requires the Manager to nominate a successor Manager and to continue serving as Manager until a successor Manager is elected by the vote of a majority of the Units held by Economic Members. The operating agreement separately equips the Manager with tools designed to avoid Investment Company Act exposure, including the ability to refuse to admit additional Members in circumstances that could cause the Company or any series to be required to register under the Investment Company Act and the ability to amend the operating agreement, without the consent of Unit holders, to prevent the Company, the Manager or their respective officers, agents or trustees from becoming subject to the Investment Company Act, the Investment Advisers Act or the “plan asset” regulations under ERISA.

 

In the event of the removal of the Manager, the Manager will cooperate with us and take all reasonable steps to assist in making an orderly transition of the management function. The Manager will determine whether any succeeding Manager possesses sufficient qualifications to perform the management function.

 

Other than any accrued fees payable to the Manager, no additional compensation will be paid to the Manager in the event of the removal of the Manager.

 

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Involvement in Certain Legal Proceedings

 

Except as set forth below, to our knowledge, none of our current directors or executive officers has, during the past ten years:

 

been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he or she was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

 

been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

 

been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

 

been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Securities Exchange Act of 1934, as amended (the Exchange Act)), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

Except as set forth above and in our discussion below in “Security Ownership of Management and Certain Security Holders,” none of our directors or executive officers has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.

 

We are not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, we believe will have a material adverse effect on our business, financial condition or operating results.

 

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SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

 

As of the date of this Offering Circular, neither the Manager nor any of its principals, affiliates or beneficial owners owns any Units. Although we do not currently expect the Manager or any such persons to acquire Units, other than upon conversion of a Manager Promissory Note, the Manager or any of its principals or affiliates may purchase Units in any series on the same terms offered to investors in the applicable series offering. No Broker Fee will be payable on any Units purchased by the Manager or its affiliates.

 

If the Manager or any of its principals or affiliates acquires any Units, we will disclose such ownership in this section by amendment to this Offering Circular if the acquisition constitutes a fundamental change, or otherwise by supplement to this Offering Circular, in each case to the extent required under applicable securities laws.

 

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Certain Relationships and Related Party Transactions

 

The following is a description of transactions since our formation and currently proposed transactions, if any, to which we were or are expected to be a party and in which any of our directors, executive officers, promoters, the Manager, holders of more than 10% of any class of our voting securities, or any member of the immediate family of any of the foregoing persons, had or will have a direct or indirect material interest, other than compensation arrangements described elsewhere in this offering circular. See “Management — The Manager and the Operating Agreement” for more information. Because the Company is managed by the Manager and expects to conduct operations primarily through series-level arrangements, certain transactions with the Manager, its affiliates and other related parties may involve conflicts of interest and may not be negotiated on an arm’s-length basis; however, we intend to disclose material related-party transactions and reimbursements in this Offering Circular and to cause any such arrangements to be consistent with the Operating Agreement, the applicable Series Designation and the disclosures included herein.

 

Series RC Manager Promissory Note

 

On May 12, 2026, the Manager issued a Convertible Promissory Note (the “Series RC Manager Promissory Note”) to the Series in the original principal amount of Three Hundred Fifty Thousand Dollars ($350,000). The Series RC Manager Promissory Note is a convertible promissory note issued by Series RC to the Manager in connection with the Manager’s advance of funds for Series purposes, including Offering Expenses and Operating Expenses. The note bears interest at 1.0% per annum (increasing to 7.0% per annum upon an Event of Default), matures upon the earlier of termination or completion of the Offering, and is repayable from the net proceeds of the Offering after payment in full of the Initial Advisory Payment to Ronny Cruz under the Brand Advisory Agreement. The Series RC Manager Promissory Note is unsecured, is an obligation solely of Series RC (and not of the Company generally or any other series), and may be prepaid without penalty. The Manager has the option, at its election, to convert all or a portion of the outstanding principal and accrued interest into Series RC Units at the offering price per Unit. The Series RC Manager Promissory Note includes customary events of default, negative covenants restricting Series RC’s ability to incur senior or pari passu indebtedness or grant security interests without the Manager’s consent, and is governed by Delaware law. See “Risk Factors — Risks Related to Conflicts of Interest” for more information.

 

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DESCRIPTION OF THE SECURITIES BEING OFFERED

 

The following is a summary of the principal terms of, and is qualified in its entirety by reference to, our operating agreement, the applicable series designations, and the subscription agreements relating to the purchase of the Units offered hereby, each of which is attached as an exhibit to the offering statement of which this Offering Circular forms a part. Prospective investors should review those documents in their entirety. In the event of any conflict between this summary and the operating agreement, the applicable series designation or the applicable subscription agreement, the terms of those documents will control. Capitalized terms used but not defined in this summary or elsewhere in this Offering Circular have the meanings ascribed to them in the operating agreement.

 

Description of the Units

 

The Company is a series limited liability company formed pursuant to Section 18-215 of the LLC Act. The purchase of Units of a series of the Company is an investment only in that particular series and not an investment in the Company as a whole; each Unit represents a denomination of the limited liability company interests in the applicable series. In accordance with the LLC Act, each series is, and any other series if issuing Units in the future will be, a separate series of the Company and not a separate legal entity. The Company has not issued, and does not intend to issue, any class of Units or underlying limited liability company interests of any series entitled to any pre-emptive, preferential or other rights that are not otherwise available to the holders purchasing Units in connection with any offering.

 

Subject to the provisions of the operating agreement, the Manager can cause the Company to establish one or more series of the Company through the creation of a written series designation for each new series. A series designation relates solely to the series established thereby and shall not be construed: (i) to affect the terms and conditions of any other series, or (ii) to designate, fix or determine the rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Units associated with any other series, or the members associated therewith. The terms and conditions for each series are as set forth in the operating agreement and in the series designation, as applicable. Upon approval of any series designation by the Manager, the series designation is attached to the operating agreement as an exhibit. The series designation establishing a series may: (i) specify a name or names under which the business and affairs of such series may be conducted; (ii) designate, fix and determine the relative rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Units of such series and the members associated therewith (to the extent such terms differ from those set forth in the operating agreement); and (iii) designate or authorize the designation of specific officers to be associated with such series.

 

A Brand Advisory Agreement will be held by the applicable series of the Company. We intend that each series will hold one Brand Advisory Agreement. An investor who invests in an offering of a series will not have any indirect interest in any Brand Advisory Agreement of any other series unless the investor also participates in a separate series offering associated with that other Brand Advisory Agreement.

 

Section 18-215(b) of the LLC Act provides that, if specified statutory and governing-document conditions are satisfied and the records maintained for a series account for the assets associated with that series separately from the assets of the Company or any other series, the debts, liabilities, obligations and expenses of that series are enforceable only against the assets of that series and not against the assets of the Company generally or any other series. Accordingly, the Company expects the Manager to maintain separate, distinct records and bank accounts for each series and its associated assets and liabilities.

 

Section 18-215(c) of the LLC Act provides that a series established in accordance with Section 18-215(b) may carry on any lawful business, purpose or activity, other than the business of banking, and has the power and capacity to, in its own name, contract, hold title to assets (including real, personal and intangible property), grant liens and security interests, and sue and be sued. The Company intends for each series to conduct its business and enter into contracts in its own name to the extent such activities are undertaken with respect to a particular series.

 

All of the Units offered by this Offering Circular will be duly authorized and validly issued. Upon payment in full of the consideration payable with respect to the Units, as determined by the Manager, such Unit holders will not be liable to the Company to make any additional capital contributions with respect to such Units (except for the return of distributions under certain circumstances as required by Sections 18-215, 18-607 and 18-804 of the LLC Act). Holders of Units have no conversion, exchange, sinking fund, redemption or appraisal rights, no pre-emptive rights to subscribe for any Units and no preferential rights to distributions.

 

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Further Issuance of Units

 

Only the Units, which are not annotated as closed, are being offered and sold pursuant to this Offering Circular. The operating agreement provides that the Company may issue Units of each series subject to limitations on the number of beneficial owners (as such term is used under the Exchange Act), including that there generally may not be 2,000 or more beneficial owners of any series’ Units, or 500 or more beneficial owners of any series’ Units that are not “accredited investors” (as defined under the Securities Act), in each case as specified in Section 12(g)(1)(A)(ii) of the Exchange Act and subject to waiver by the Manager in its sole discretion. The Manager, in its sole discretion, has the option to issue additional Units (in addition to those issued in connection with any offering) on the same terms as the Units of applicable series being offered hereunder as may be required from time to time.

 

Distribution Rights

 

Distributions, if any, will be made from Free Cash Flow at the Manager’s discretion, except as otherwise limited by law or the operating agreement.

 

“Free Cash Flow” means, for any period, the net cash generated by the series from its operations (including revenue from its Brand Advisory Agreement), less any accrued and unpaid Operating Expenses of the series for such period, less any Operating Expense Reimbursement Obligations, if any, and less such reserves as the Manager may deem appropriate for the series’ working capital and future expenses or liabilities. The Manager may maintain Free Cash Flow funds in a deposit account or an investment account for the benefit of the series.

 

The Manager will determine, on the periodic basis set forth in the applicable Series Designation, the amount of Free Cash Flow, if any, available for distribution to Unit holders of that series. Investors will be required to update their personal information on a regular basis to make sure they receive all allocated distributions.

 

Any Free Cash Flow generated by a series from the utilization of the property related to such series shall be applied within the series in the following order of priority:

 

  repay any amounts outstanding under Operating Expense Reimbursement Obligations plus accrued interest;
     
  thereafter to create such reserves as the Manager deems necessary, in its sole discretion, to meet future operating expenses; and
     
  thereafter by way of distribution to Unit holders of such series (net of corporate income taxes applicable to the series), which may include the Manager or any of its affiliates.

 

No series will distribute an asset in kind to its Unit holders.

 

The LLC Act (Section 18-607) provides that a member who receives a distribution with respect to a series and knew at the time of the distribution that the distribution was in violation of the LLC Act shall be liable to the series for the amount of the distribution for three years. Under the LLC Act, a series limited liability company may not make a distribution with respect to a series to a member if, after the distribution, all liabilities of such series, other than liabilities to members on account of their Unit holdings with respect to such series and liabilities for which the recourse of creditors is limited to specific assets of such series, would exceed the fair value of the assets of such series. Under the LLC Act, an assignee who becomes a substituted member of a company is liable for the obligations of his assignor to make contributions to the company, except the assignee is not obligated for liabilities unknown to it at the time the assignee became a member and that could not be ascertained from the operating agreement.

 

Redemption Provisions

 

The Units are not redeemable.

 

Registration Rights

 

There are no registration rights associated with the Units.

 

Voting Rights

 

The Manager is not required to hold an annual meeting of Unit holders. The operating agreement provides that meetings of Unit holders may be called by the Manager and a designee of the Manager shall act as chairman at such meetings. The investor does not have any voting rights as a Unit holder in the Company or a series except with respect to:

 

  (i) the removal of the Manager and the election of a successor Manager upon the resignation of the Manager;
     
  (ii) the dissolution of the Company upon the for-cause removal of the Manager, and

 

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  (iii) an amendment to the operating agreement that would:

 

  a. enlarge the obligations of, or adversely affect, a Unit holder in any material respect;

 

  b. reduce the voting percentage required for any action to be taken by the holders of Units in the Company under the operating agreement;

 

  c. change the situations in which the Company and any series can be dissolved or terminated;

 

  d. change the term of the Company (other than the circumstances provided in the operating agreement); or

 

  e. give any person the right to dissolve the Company.

 

When entitled to vote on a matter, each Unit holder will be entitled to one vote per Unit held by it on all matters submitted to a vote of the Unit holders of an applicable series or of the Unit holders of all series of the Company, as applicable. The removal of the Manager as Manager of the Company and all series must be approved by a Super Majority Vote, that is, an affirmative vote of holders of Units of all series representing at least eighty percent (80%) of the total votes that may be cast by all outstanding Units, voting together as a single class. All other matters to be voted on by the Unit holders must be approved by the affirmative vote of the holders of not less than a majority of the outstanding Units of all series, voting together as a single class, unless a greater percentage is required under the operating agreement or by Delaware law. In respect of any meeting of the Company, Unit holders holding thirty-three percent (33%) of the outstanding Units, and in respect of any meeting of any series, Unit holders holding thirty-three percent (33%) of the outstanding Units in such series, present in person or by proxy, constitute a quorum.

 

The consent of the holders of a majority of the Units of a series is required for any amendment to the operating agreement that would adversely change the rights of the Unit holders in such series, result in mergers, consolidations or conversions of such series and for any other matter as the Manager, in its sole discretion, determines will require the approval of the holders of the Units of a series voting as a separate class.

 

The submission of any action of the Company or a series for a vote of the Unit holders shall first be approved by the Manager and no amendment to the operating agreement may be made without the prior approval of the Manager that would decrease the rights of the Manager or increase the obligations of the Manager thereunder. The Manager, if it holds Units, or its affiliates, if they hold Units, may vote as a Unit holder in respect of any matter put to the Unit holders.

 

The Manager has broad authority to take action with respect to the Company and any series. See “Management” for more information. Except as set forth above, the Manager may amend the operating agreement without the approval of the Unit holders to, among other things, reflect the following:

 

  the merger of the Company, or the conveyance of all of the assets to, a newly-formed entity if the sole purpose of that merger or conveyance is to effect a mere change in the legal form into another limited liability entity;
     
  a change that the Manager determines to be necessary or appropriate to implement any state or federal statute, rule, guidance or opinion;
     
  a change that the Manager determines to be necessary, desirable or appropriate to facilitate the trading of Units;
     
  a change that the Manager determines to be necessary or appropriate for the Company to qualify as a limited liability company under the laws of any state or to ensure that each series will continue to qualify as a corporation for U.S. federal income tax purposes;
     
  an amendment that the Manager determines, based upon the advice of counsel, to be necessary or appropriate to prevent the Company, the Manager, or the officers, agents or trustees from in any manner being subjected to the provisions of the Investment Company Act, the Investment Advisers Act or “plan asset” regulations adopted under ERISA, whether or not substantially similar to plan asset regulations currently applied or proposed;
     
  any amendment that the Manager determines to be necessary or appropriate for the authorization, establishment, creation or issuance of any additional series;
     
  an amendment effected, necessitated or contemplated by a merger agreement that has been approved under the terms of the operating agreement;
     
  any amendment that the Manager determines to be necessary or appropriate for the formation by the Company of, or its investment in, any corporation, partnership or other entity, as otherwise permitted by the operating agreement;
     
  a change in the fiscal year or taxable year and related changes; and
     
  any other amendments which the Manager deems necessary or appropriate to enable the Manager to exercise its authority under the Agreement.

 

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In each case, the Manager may make such amendments to the operating agreement provided the Manager determines that those amendments:

 

  do not adversely affect the Unit holders (including any particular series as compared to other series) in any material respect;
     
  are necessary or appropriate to satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any federal or state agency or judicial authority or contained in any federal or state statute;
     
  are necessary or appropriate to facilitate the trading of Units, to comply with any rule, regulation, guideline or requirement of any securities exchange on which the Units may be listed for trading, compliance with any of which the Manager deems to be in the best interests of the Company and the Unit holders;
     
  are necessary or appropriate for any action taken by the Manager relating to splits or combinations of Units under the provisions of the operating agreement; or
     
  are required to effect the intent expressed in this Offering Circular or the intent of the provisions of the operating agreement or are otherwise contemplated by the operating agreement.

 

Furthermore, the Manager retains sole discretion to create and set the terms of any new series and will have the sole power to acquire, manage and dispose of Brand Advisory Agreements of each series.

 

Liquidation Rights

 

The operating agreement provides that the Company shall remain in existence until the earlier of the following: (i) the election of the Manager to dissolve it; (ii) the sale, exchange or other disposition of substantially all of the assets of the Company followed by the Manager’s affirmative election to dissolve it; (iii) the entry of a decree of judicial dissolution of the Company; (iv) at any time that the Company no longer has any members, unless the business is continued in accordance with the LLC Act; and (v) a vote by a majority of all Unit holders of the Company following the for-cause removal of the Manager. Under no circumstances may the Company be wound up in accordance with Section 18-801(a)(3) of the LLC Act.

 

A series shall remain in existence until the earlier of the following: (i) the dissolution of the Company, (ii) the election of the Manager to dissolve such series; (iii) the sale, exchange or other disposition of substantially all of the assets of the series, unless the Manager determines not to dissolve the series to allow for the reacquisition of series assets; or (iv) at any time that the series no longer has any members, unless the business is continued in accordance with the LLC Act. Under no circumstances may a series be wound up in accordance with Section 18-801(a)(3) of the LLC Act.

 

Upon the occurrence of any such event, the Manager (or a liquidator selected by the Manager) is charged with winding up the affairs of the series or the Company as a whole, as applicable, and liquidating its assets. Upon the liquidation of a series or the Company as a whole, as applicable, the series or the Company, as applicable, will be liquidated and any after-tax proceeds distributed: (i) first, to any third party creditors, (ii) second, to any creditors that are the Manager or its affiliates (e.g., payment of any outstanding Operating Expense Reimbursement Obligation (as defined in the operating agreement)), and thereafter, (iii) to the Unit holders of the relevant series, allocated pro rata based on the number of Units held by each Unit holder (which may include the Manager and any of its affiliates and which distribution with respect to a series will be made consistent with any preferences which exist within such series).

 

Restrictions on Ownership and Transfer

 

The Units of each series are subject to restrictions on transferability. Except for an ATS Transfer effected through an alternative trading system, or ATS, approved by the Manager in accordance with the operating agreement, a Unit holder may not transfer, assign or pledge its Units without the consent of the Manager. The Manager may withhold consent in its sole discretion, including when the Manager determines that such transfer, assignment or pledge would result in (a) there being more than 2,000 beneficial owners of the series or more than 500 beneficial owners of the series that are not “accredited investors,” (b) the assets of the series being deemed “plan assets” for purposes of ERISA, (c) a change of U.S. federal income tax treatment of the Company and the series, or (d) the Company, the series or the Manager being subject to additional regulatory requirements. An ATS Transfer is not subject to certain otherwise applicable transfer restrictions under the operating agreement, including the Manager’s consent requirement, prior notice requirements, and any right of first refusal, lock-up or similar restriction that may be included in a Series Designation, but remains subject to applicable securities laws and any eligibility, documentation, settlement, trading, transfer agent, anti-money laundering, sanctions, investor suitability, tax, regulatory, or other conditions or procedures that the Manager may establish. The transferring Unit holder is responsible for all costs and expenses arising in connection with any proposed transfer (regardless of whether such sale is completed) including any legal fees incurred by the Company or any broker or dealer, any costs or expenses in connection with any opinion of counsel and any transfer taxes and filing fees. The Manager or its affiliates may acquire Units in each series for their own accounts and may, from time to time and only in accordance with applicable securities laws (which may include filing an amendment to this Offering Circular), transfer these Units, either directly or through brokers, via the Platform, an ATS approved by the Manager or otherwise.

 

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As described above, unless and until the Units of a Series are listed or eligible for trading through an ATS approved by the Manager, holders’ ability to pledge or transfer Units will remain restricted. There can be no assurance that the Manager will approve any ATS, that any Units will be listed or eligible for secondary trading, that we will, or will be able to, register the Units for resale, or that a liquid market for the Units will develop. Therefore, investors may be required to hold their Units indefinitely. Please refer to the operating agreement and the subscription agreement for additional information regarding these restrictions. To the extent certificated, the Units issued in each offering will bear a legend setting forth these restrictions on transfer and any legends required by state securities laws.

 

Secondary Trading; Alternative Trading System

 

The operating agreement permits, but does not require, the Manager to approve an alternative trading system, or ATS, for secondary trading of Units of a Series. If the Manager approves an ATS for a Series, Units of that Series may be eligible to trade through the approved ATS, subject to applicable law, the rules and procedures of the ATS, the Company’s transfer agent arrangements, and any conditions or procedures established by the Manager from time to time.

 

Under the operating agreement, a transfer of Units effected through an ATS approved by the Manager is an “ATS Transfer.” An ATS Transfer is not subject to certain otherwise applicable transfer restrictions under the operating agreement, including the Manager’s consent requirement, prior notice requirements, and any right of first refusal, lock-up or similar restriction that may be included in a Series Designation.

 

Notwithstanding this exception, ATS Transfers remain subject to compliance with applicable securities laws and any eligibility, documentation, settlement, trading, transfer agent, anti-money laundering, sanctions, investor suitability, tax, regulatory, or other conditions or procedures that the Manager may establish. A purchaser in an ATS Transfer will be admitted as a Substitute Economic Member, become the Record Holder of the transferred Units, and be deemed to agree to the operating agreement only when the transfer is recognized in accordance with the procedures established by the Manager and reflected in the Company’s books and records.

 

The Manager has broad authority under the operating agreement to list Units of a Series on an ATS approved by the Manager; enter into listing, ATS participation, transfer agent, broker, dealer, settlement, custody, escrow, compliance, tax, regulatory and other ancillary agreements and documentation; and take actions the Manager determines are reasonably necessary or appropriate to effect, facilitate, maintain, administer, suspend or terminate any such listing or trading arrangement. Each investor grants the Manager a power of attorney that includes authority to execute documents the Manager determines are necessary or appropriate to list Units on an approved ATS or to effect, facilitate, evidence, settle, record or administer transfers through an approved ATS.

 

The Manager may suspend, limit or condition transfers through an approved ATS if the Manager determines that doing so is necessary or appropriate to comply with applicable law, protect the Company or any Series, preserve the status of the Company or any Series for tax, regulatory or other purposes, or administer the books and records of the Company or any Series.

 

Investors should not assume that any ATS will be approved or available, that any Units will be listed or eligible for secondary trading, or that an active, liquid or sustained secondary market for the Units will develop. Even if an ATS is available for a Series, investors may be unable to resell their Units when desired, at an acceptable price, or at all, and any resale may be delayed, restricted, suspended or conditioned by securities law requirements, ATS or transfer agent procedures, investor eligibility requirements, settlement procedures, tax or regulatory considerations, or actions taken by the Manager under the operating agreement.

 

Agreement to be Bound by the Operating Agreement; Power of Attorney

 

By purchasing Units, the investor will be admitted as a member of the Company and will be bound by the provisions of, and deemed to be a party to, the operating agreement. Pursuant to the operating agreement, each investor grants to the Manager a power of attorney to, among other things, execute and file documents required for the Company’s qualification, continuance or dissolution. The power of attorney also grants the Manager authority to make certain amendments to the operating agreement, execute documents the Manager determines are necessary or appropriate to list Units on an approved ATS or to effect, facilitate, evidence, settle, record or administer transfers through an approved ATS, and execute and deliver such other documents as may be necessary or appropriate to carry out the provisions or purposes of the operating agreement.

 

Duties of Officers

 

The operating agreement provides that, except as may otherwise be provided by the operating agreement, the property, affairs and business of each series will be managed under the direction of the Manager. The Manager has the power to appoint the officers and such officers have the authority and exercise the powers and perform the duties specified in the operating agreement or as may be specified by the Manager.

 

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The Company may decide to enter into separate indemnification agreements with the Officers of the Company and the directors and officers of the Manager. If entered into, each indemnification agreement is likely to provide, among other things, for indemnification to the fullest extent permitted by law and the operating agreement against any and all expenses, judgments, fines, penalties and amounts paid in settlement of any claim. The indemnification agreements may also provide for the advancement or payment of all expenses to the indemnitee and for reimbursement to the Company if it is found that such indemnitee is not entitled to such indemnification under applicable law and the operating agreement.

 

Mandatory Arbitration and Class Action Waiver

 

The Operating Agreement requires, to the fullest extent permitted by law, that disputes arising out of or relating to the Operating Agreement, the formation, governance, management, operations, capitalization or dissolution of the Company or any series, or the rights, duties or relationships among the Company, any series, the Manager, any member or their respective affiliates in such capacities, be resolved exclusively by binding arbitration administered by the American Arbitration Association under the Federal Arbitration Act and the AAA Commercial Arbitration Rules. Arbitration will generally be conducted before a single neutral arbitrator, unless all parties to the dispute agree in writing to a three-arbitrator panel. The seat and venue of arbitration will be Wilmington, Delaware, and hearings may be conducted remotely at the election of the arbitrator after conferring with the parties. By acquiring Units, members waive the right to a trial by jury and the right to litigate covered disputes in court, except for limited requests for temporary, preliminary or emergency injunctive relief or other provisional remedies in Delaware courts and except to the extent applicable law does not permit a particular claim or remedy to be subject to mandatory arbitration. Judgment on an arbitral award may be entered in a state or federal court located in Delaware that has jurisdiction over the parties and the subject matter.

 

Arbitrations and court proceedings must proceed on an individual basis only. No dispute may be heard or decided as a class, collective, private attorney general, derivative on behalf of other members or other representative proceeding, and claims of two or more persons or entities may not be joined, consolidated or heard together in a single proceeding unless all affected parties agree in writing or the Operating Agreement’s mass arbitration procedures expressly permit administrative batching. If a dispute relates to the management or operations of a particular series, the proceeding is limited to that series, the Company as necessary, the Manager, and the members or other parties whose rights or obligations are directly implicated by the dispute. No award against a series will bind or be enforceable against the assets of any other series unless that other series is a party to the dispute and is specifically found liable.

 

If a large number of substantially similar arbitration demands asserting related claims are filed within a specified period and are brought by or with the assistance or coordination of overlapping counsel, law firms or litigation funding entities, the Operating Agreement provides for a mass arbitration protocol. That protocol contemplates use of applicable AAA mass arbitration procedures, appointment of a process arbitrator for threshold and procedural issues, organization of cases into tranches, an initial bellwether tranche, stays of non-active cases, tolling of limitation periods for stayed cases, and non-binding mediation after bellwether awards and later tranches. Fees for stayed cases generally are not due until those cases are placed into an active tranche, and the arbitrator or process arbitrator may modify tranche size, sequencing or other procedural matters for efficiency and fairness. The Operating Agreement also requires arbitration proceedings, orders and awards to remain confidential to the fullest extent permitted by law, except as required by law or to enforce an award.

 

Exclusive Forum

 

The Operating Agreement provides that Delaware law governs the Operating Agreement, non-contractual obligations arising out of or in connection with it, and the rights and liabilities of members in the Company and each series, except to the extent applicable law requires otherwise. For legal actions or proceedings that are not subject to mandatory arbitration, and for court proceedings related to or in support of arbitration, the Operating Agreement generally requires proceedings to be brought in Delaware courts, subject to applicable federal securities laws and any written consent by the Manager to an alternative forum. The Operating Agreement is not intended to waive compliance with the U.S. federal securities laws or the rules and regulations promulgated under those laws. The arbitration, class action waiver, individual-proceeding and exclusive forum provisions are intended to address forum and procedure only and not to waive any substantive right or remedy available under applicable law. If applicable law does not permit a particular federal securities law claim or remedy to be subject to mandatory arbitration, that claim or remedy may be brought in a court of competent jurisdiction and will not be subject to arbitration to that extent. If any class, collective or representative waiver is held unenforceable with respect to a particular claim or remedy, the Operating Agreement generally provides for that specific claim or remedy to proceed in court while remaining claims and remedies proceed on an individual basis in arbitration or court, as applicable.

 

These provisions apply to investors who purchase Units in the series offerings directly from the Company as well as to purchasers who may buy Units in the secondary market, as they, as well, will become series members whose rights vis-à-vis the Units will be governed according to the terms of the operating agreement.

 

78

 

 

U.S. FEDERAL INCOME TAX CONSIDERATIONS

 

The following is a summary of certain U.S. federal income tax considerations relating to each of the series’ qualification and the acquisition, holding, and disposition of Units. For purposes of this section, references to “we,” “us” or “the Company” mean each of the series, individually, except as otherwise indicated. This summary is based upon the Internal Revenue Code, the regulations promulgated by the U.S. Treasury Department, current administrative interpretations and practices of the IRS (including administrative interpretations and practices expressed in private letter rulings which are binding on the IRS only with respect to the particular taxpayers who requested and received those rulings) and judicial decisions, all as currently in effect and all of which are subject to differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax considerations described below. No advance ruling has been or will be sought from the IRS regarding any matter discussed in this summary. The summary is also based upon the assumption that the operation of the Company, and of any subsidiaries and other lower-tier affiliated entities, will be in accordance with its applicable organizational documents and as described in this Offering Circular. This summary is for general information only, and does not purport to discuss all aspects of U.S. federal income taxation that may be important to a particular investor in light of its investment or tax circumstances or to investors subject to special tax rules, such as:

 

  U.S. expatriates;
     
  persons who mark-to-market our Units;
     
  subchapter S corporations;
     
  U.S. investors who are U.S. persons (as defined below) whose functional currency is not the U.S. dollar;
     
  financial institutions;
     
  insurance companies;
     
  broker-dealers;
     
  regulated investment companies;
     
  trusts and estates;
     
  holders who receive our Units through the exercise of employee stock options or otherwise as compensation;
     
  persons holding our Units as part of a “straddle,” “hedge,” “short sale,” “conversion transaction,” “synthetic security” or other integrated investment;
     
  non-corporate taxpayers subject to the alternative minimum tax provisions of the Code;
     
  persons holding our interests through a partnership or similar pass-through entity;
     
  persons holding a 10% or more (by vote or value) beneficial interest in the Company;
     
  tax exempt organizations, except to the extent discussed below in “ — Treatment of Tax Exempt U.S. investors;” and
     
  non-U.S. persons (as defined below), except to the extent discussed below in “ — U.S. Taxation of Non-U.S. investors.”

 

Except to a limited extent noted below, this summary does not address state, local or non-U.S. tax considerations. This summary assumes that investors will hold our Units as capital assets, within the meaning of Section 1221 of the Internal Revenue Code, which generally means as property held for investment.

 

For the purposes of this summary, a U.S. person is a beneficial owner of our Units who for U.S. federal income tax purposes is:

 

  a citizen or resident of the United States;
     
  a corporation (including an entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or of a political subdivision thereof (including the District of Columbia);
     
  an estate whose income is subject to U.S. federal income taxation regardless of its source; or
     
  any trust if (1) a U.S. court is able to exercise primary supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in place to be treated as a U.S. person.

 

79

 

 

For the purposes of this summary, a U.S. Holder is a beneficial owner of our Units who is a U.S. person. A tax-exempt organization is a U.S. person who is exempt from U.S. federal income tax under Section 401(a) or 501(a) of the Internal Revenue Code. For the purposes of this summary, a non-U.S. person is a beneficial owner of our Units who is a nonresident alien individual or a non-U.S. corporation for U.S. federal income tax purposes, and a non-U.S. Holder is a beneficial owner of our Units who is a non-U.S. person. The term “corporation” includes any entity treated as a corporation for U.S. federal income tax purposes, and the term “partnership” includes any entity treated as a partnership for U.S. federal income tax purposes.

 

The information in this section is based on the current Code, current, temporary and proposed Treasury Regulations, the legislative history of the Internal Revenue Code, current administrative interpretations and practices of the IRS, including its practices and policies as endorsed in private letter rulings, which are not binding on the IRS except in the case of the taxpayer to whom a private letter ruling is addressed, and existing court decisions. Future legislation, regulations, administrative interpretations and court decisions could change current law or adversely affect existing interpretations of current law, possibly with retroactive effect. Any change could apply retroactively. We have not obtained any rulings from the IRS concerning the tax treatment of the matters discussed below. Thus, it is possible that the IRS could challenge the statements in this discussion that do not bind the IRS or the courts and that a court could agree with the IRS.

 

THE U.S. FEDERAL INCOME TAX TREATMENT OF HOLDERS OF OUR UNITS DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U.S. FEDERAL INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. IN ADDITION, THE TAX CONSEQUENCES OF HOLDING OUR UNITS TO ANY PARTICULAR INVESTOR WILL DEPEND ON THE INVESTOR’S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES, OF ACQUIRING, HOLDING, AND DISPOSING OF OUR UNITS.

 

You are urged to consult your tax advisor with respect to the application of the United States federal income tax laws to your particular situation, as well as any tax consequences of the purchase, ownership and disposition of the Units arising under the United States federal estate or gift tax rules or under the laws of any United States state or local or any foreign taxing jurisdiction or under any applicable tax treaty.

 

Tax Classification of the Series

 

Proposed but not yet finalized Treasury Regulations, as well as certain administrative guidance issued by the Internal Revenue Service, indicate that each series of a series limited liability company may be treated as a separate entity for U.S. federal income tax purposes based on its facts and circumstances. The Company intends that each Series be classified and taxed as a corporation for U.S. federal income tax purposes (and not as a partnership under Subchapter K of the Internal Revenue Code), and expects, but cannot assure, that each such Series will be so treated.

 

Assuming such treatment, each Series will be subject to U.S. federal income tax on its taxable income at applicable corporate rates (currently 21% for C corporations). Distributions of earnings to investors will be taxable to investors as dividends to the extent of the series’ current and accumulated earnings and profits, rather than being allocated as pass-through items. Investors will not be required to report the series’ income, gain, loss, deduction, or credit on their own income tax returns; instead, they will report only the dividends they actually receive.

 

The Company has not requested, and does not intend to request, a ruling from the Internal Revenue Service regarding the tax classification of the Series. The U.S. federal income tax treatment of the Series, and the state and local tax treatment thereof, may vary depending on the jurisdiction and the particular facts and circumstances of each Series.

 

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Taxation of Distributions to U.S. Holders

 

A “U.S. Holder” includes a beneficial owner of Units that is, for U.S. federal income tax purposes, an individual citizen or resident of the United States.

 

Distributions to U.S. Holders out of each Series’ current or accumulated earnings and profits (which would include any gains derived from the sale or exchange of the assets that will be held by each Series, net of tax paid or accrued thereon) will be taxable to U.S. Holders as dividends. A U.S. Holder who receives a distribution constituting “qualified dividend income” may be eligible for reduced federal income tax rates. U.S. Holders are urged to consult their tax advisors as to whether any dividends paid by a Series would be “qualified dividend income.” Distributions in excess of the current and accumulated earnings and profits of a Series will not be taxable to a U.S. Holder to the extent that the distributions do not exceed the adjusted tax basis of the U.S. Holder’s Units. Rather, such distributions will reduce the adjusted basis of such U.S. Holder’s Units. Distributions in excess of current and accumulated earnings and profits that exceed the U.S. Holder’s adjusted basis in its Units will be taxable as capital gain in the amount of such excess if the Units are held as a capital asset. In addition, a 3.8% tax applies to certain investment income (referred to as the 3.8% NIIT). In general, in the case of an individual, this tax is equal to 3.8% of the lesser of (i) the taxpayer’s “net investment income” or (ii) the excess of the taxpayer’s adjusted gross income over the applicable threshold amount ($250,000 for taxpayers filing a joint return, $125,000 for married individuals filing separate returns and $200,000 for other taxpayers). In the case of an estate or trust, the 3.8% tax will be imposed on the lesser of (x) the undistributed net investment income of the estate or trust for the taxable year, or (y) the excess of the adjusted gross income of the estate or trust for such taxable year over a beginning dollar amount (currently $7,500 of the highest tax bracket for such year). Dividends are included as investment income in the determination of “net investment income” under Section 1411(c) of the Code.

 

Taxation of Dispositions of Units

 

Upon any taxable sale or other disposition of Units, a U.S. Holder will recognize gain or loss for federal income tax purposes on the disposition in an amount equal to the difference between (i) the amount of cash and the fair market value of any property received on such disposition and (ii) the U.S. Holder’s adjusted tax basis in the Units. A U.S. Holder’s adjusted tax basis in the Units generally equals his, her or its initial amount paid for the Units and decreased by the amount of any distributions to the investor in excess of current or accumulated earnings and profits. In computing gain or loss, the proceeds that U.S. Holders receive will include the amount of any cash and the fair market value of any other property received for their Units. The gain or loss will be long-term capital gain or loss if the Units are held for more than one year before disposition. Long-term capital gains of individuals, estates and trusts currently are taxed at a maximum rate of 20% (plus any applicable state income taxes) plus the 3.8% NIIT. The deductibility of capital losses may be subject to limitation and depends on the circumstances of a particular U.S. Holder; the effect of such limitation may be to defer or to eliminate any tax benefit that might otherwise be available from a loss on a disposition of the Units. Capital losses are first deducted against capital gains, and, in the case of non-corporate taxpayers, any remaining such losses are deductible against salaries or other income from services or income from portfolio investments only to the extent of $3,000 per year.

 

Backup Withholding and Information Reporting

 

Generally, we must report annually to the IRS the amount of dividends paid to you, your name and address, and the amount of tax withheld, if any. A similar report will be sent to you.

 

Payments of dividends or of proceeds on the disposition of the Units made to you may be subject to additional information reporting and under some circumstances to backup withholding at a current rate of 24% unless you establish an exemption. Backup withholding is not an additional tax; rather, the federal income tax liability of persons subject to backup withholding is reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit may generally be obtained from the IRS, provided that the required information is furnished to the IRS in a timely manner.

 

The preceding discussion of United States federal tax considerations is for general information only. It is not tax advice. Each prospective investor should consult its own tax advisor regarding the particular United States federal, state and local and foreign tax consequences, if applicable, of purchasing, holding and disposing of the Units, including the consequences of any proposed change in applicable laws.

 

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Legal Matters and Auditors 

 

Bevilacqua PLLC has acted as our counsel with respect to the preparation of this Offering Circular and the Offering Statement of which it forms a part. 

 

Our audited financial statements as of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025 included in this Offering Circular have been audited by Artesian CPA, LLC, a certified public accounting firm, as set forth in its report.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a Regulation A Offering Statement on Form 1-A under the Securities Act with respect to the Units offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the Units offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Exchange Act. The SEC maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

 

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AGENTIQ SPORTS 1 SERIES LLC

 

A DELAWARE SERIES LIMITED LIABILITY COMPANY

 

FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT

 

AS OF DECEMBER 31, 2025 AND FOR THE PERIOD FROM NOVEMBER 3, 2025 (INCEPTION) TO DECEMBER 31, 2025

 

 

 

 

AGENTIQ SPORTS 1 SERIES LLC

 

FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT

 

AS OF DECEMBER 31, 2025 AND FOR THE PERIOD FROM NOVEMBER 3, 2025 (INCEPTION) TO DECEMBER 31, 2025

 

TABLE OF CONTENTS

 

  Page
   
Independent Auditor’s Report F-2
   
Financial Statements as of December 31, 2025 and for the Period from November 3, 2025 (Inception) to December 31, 2025  
   
Balance Sheet F-4
   
Statement of Operations F-5
   
Statement of Changes in Member’s Equity F-6
   
Statement of Cash Flows F-7
   
Notes to the Financial Statements F-8

 

F-1

 

 

INDEPENDENT AUDITOR’S REPORT

 

 

To the Managing Member of

Agentiq Sports 1 Series LLC

San Francisco, CA

 

Opinion

 

We have audited the accompanying financial statements of Agentiq Sports 1 Series LLC (the “Company”) which comprise the balance sheet as of December 31, 2025 and the related statement of operations, changes in member’s equity, and cash flows for the period from November 3, 2025 (inception) to December 31, 2025, and the related notes to the financial statements.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and the results of its operations and its cash flows for the period from November 3, 2025 (inception) to December 31, 2025, in accordance with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Substantial Doubt About the Company’s Ability to Continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 3 to the financial statements, the Company has not yet commenced its planned principal operations, plans to incur significant costs in pursuit of its capital financing plans, has not generated revenues or profits, and has incurred a net loss of $1,162 for the period from November 3, 2025 (inception) to December 31, 2025. The Company is also reliant upon its manager to fund its current and future obligations. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

 

Responsibilities of Management for the Financial Statements

 

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

 

Artesian CPA, LLC

1312 17th Street, #462 | Denver, CO 80202

p: 877.968.3330 f: 720.634.0905

info@ArtesianCPA.com | www.ArtesianCPA.com

 

F-2

 

 

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

 

Auditor’s Responsibilities for the Audit of the Financial Statements

 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

 

In performing an audit in accordance with generally accepted auditing standards, we:

 

Exercise professional judgment and maintain professional skepticism throughout the audit.

 

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

 

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

 

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

 

/s/ Artesian CPA, LLC

Denver, Colorado

January 22, 2026

 

Artesian CPA, LLC

1312 17th Street, #462 | Denver, CO 80202

p: 877.968.3330 f: 720.634.0905

info@ArtesianCPA.com | www.ArtesianCPA.com

 

F-3

 

 

AGENTIQ SPORTS 1 SERIES LLC

BALANCE SHEET

As of December 31, 2025

 

ASSETS    
Current assets:    
Cash & cash equivalents  $- 
Deferred offering costs   25,000 
Total assets  $25,000 
      
LIABILITIES AND MEMBER’S EQUITY     
Current liabilities:     
Accounts payable and accrued expenses  $- 
Due to related party   - 
Total liabilities   - 
      
Member’s equity:     
Member’s capital   26,162 
Accumulated deficit   (1,162)
Total member’s equity   25,000 
Total liabilities and member’s equity  $25,000 

 

See accompanying Independent Auditor’s Report and accompanying notes,
which are an integral part of these financial statements.

 

F-4

 

 

AGENTIQ SPORTS 1 SERIES LLC

STATEMENT OF OPERATIONS

For the period from November 3, 2025 (inception) to December 31, 2025

 

Revenues  $- 
Operating expenses:     
General and administrative   1,162 
Total operating expenses   1,162 
Loss from operations   (1,162)
      
Net loss before income taxes   (1,162)
Income taxes   - 
Net loss  $(1,162)
Net loss per membership unit     
Basic and diluted   N/A 

 

See accompanying Independent Auditor’s Report and accompanying notes,
which are an integral part of these financial statements.

 

F-5

 

 

AGENTIQ SPORTS 1 SERIES LLC

STATEMENT OF CHANGES IN MEMBER’S EQUITY

For the period from November 3, 2025 (inception) to December 31, 2025

 

   Total Member’s Equity 
Balance at November 3, 2025  $- 
Deemed Contributions  26,162 
Net loss  (1,162)
Balance at December 31, 2025  $25,000 

 

See accompanying Independent Auditor’s Report and accompanying notes,

which are an integral part of these financial statements.

 

F-6

 

 

AGENTIQ SPORTS 1 SERIES LLC

STATEMENT OF CASH FLOWS

For the period from November 3, 2025 (inception) to December 31, 2025

 

Cash flows from operating activities:     
Net loss  $(1,162)
      
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Operating expenses incurred as deemed contribution from Manager   1,162 
Net cash provided by (used in) operating activities   - 
Net change in cash   - 
Cash at beginning of period   - 
Cash at end of period  $- 
      
Supplemental disclosure of cash flow information:     
Cash paid for interest  $- 
Cash paid for taxes  $- 
      
Supplemental disclosure of non-cash financing activities:     
Deferred offering costs incurred as deemed contribution from Manager  $25,000 

 

See accompanying Independent Auditor’s Report and accompanying notes,

which are an integral part of these financial statements.

 

F-7

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

NOTE 1: NATURE OF OPERATIONS

 

Agentiq Sports 1 Series LLC (the “Company”) is a Delaware series limited liability company formed on November 3, 2025 under the laws of the State of Delaware. The Company was formed to establish and operate one or more separate and distinct series (each, a “Series”) for the purpose of entering into brand advisory and revenue participation arrangements with professional athletes or other talent.  Each Series is intended to enter into a brand advisory agreement (“Brand Advisory Agreement”) with a specific athlete or talent (the “Client”), pursuant to which the Series may provide brand advisory and enhancement services and make an upfront payment to the Client in exchange for the contractual right to receive a specified portion of the Client’s future on-field or performance-based compensation and related earnings, as defined in the applicable Brand Advisory Agreement. Each Brand Advisory Agreement, once executed, will constitute the primary asset of the applicable Series. 

 

Agentiq Sports, Inc. (the “Manager”) serves as the manager of the Company and, unless otherwise specified in a Series designation, the manager of each Series. The Manager has full authority to manage the business and affairs of the Company and each Series. Investors in a Series hold units of limited liability company interests in such Series (“Units”) and do not participate in the management or control of the Company or any Series. 

 

As a Delaware series limited liability company, the debts, liabilities, obligations, and expenses incurred with respect to a particular Series are segregated and enforceable only against the assets of that Series, and not against the assets of the Company or any other Series, as provided under Delaware law.

 

As of December 31, 2025, the Company had not commenced operations and no Brand Advisory Agreements had been executed. Upon commencement of its planned principal operations, the Company expects to incur significant additional expenses. The Company is dependent upon obtaining additional capital resources to commence its planned operations and is subject to risks and uncertainties, including the ability to secure funding and to operate its business profitably.

 

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The financial statements present the activities of Agentiq Sports 1 Series LLC (the “Company”) from inception on November 3, 2025 through December 31, 2025. The Company has adopted a calendar year as its fiscal year.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures in the financial statements. For the period from inception through December 31, 2025, management’s estimates were limited due to the Company’s minimal activity, and such estimates did not have a material impact on the accompanying financial statements. Actual results could differ from those estimates.

 

F-8

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2025, the Company did not hold any cash or cash equivalents. To the extent the Company maintains cash balances in the future, such balances may exceed federally insured limits.

 

Deferred Offering Costs

 

The Company accounts for offering costs in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 340-10-S99-1. Offering costs that are directly attributable to an offering of Series Units are capitalized prior to the completion of the offering. The Manager may allocate offering costs to the Series under its allocation policy. Upon the completion of an offering, deferred offering costs are charged against members’ equity. If an offering is not completed, such costs are expensed as incurred. Under the terms of the Company’s operating agreement, if an offering is unsuccessful, all abort costs are borne by the Manager. As of December 31, 2025, the Company has capitalized $25,000 as deferred offering costs. Each Series of the Company will reimburse the Manager for its offering costs up to 2% of the gross offering proceeds.

 

Fair Market Value of Financial Instruments

 

Financial Accounting Standards Board (“FASB”) guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

 

Level 1 -Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity could access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

 

Level 2 -Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

 

Level 3 -Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

 

The carrying amounts reported on the balance sheet approximate their fair value.

 

Significant Risks and Uncertainties

 

The Company is a newly formed entity with limited operating history and has not yet commenced its planned principal operations. The Company is subject to risks and uncertainties customary to early-stage entities, including, but not limited to, dependence on the successful execution of brand advisory agreements, the ability to raise capital, competition, regulatory developments, and reliance on the Manager and key personnel. Adverse changes in economic conditions, capital markets, or the professional sports industry could materially affect the Company’s financial condition and future results of operations.

 

F-9

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

Revenue Recognition

 

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606, “Revenue from Contracts with Customers.” The Company’s primary source of revenue is derived from Brand Advisory Agreements (“BAAs”) with professional athletes. Under these agreements, the Company provides brand enhancement and promotional advisory services to athletes in exchange for a percentage of the athlete’s future on-field earnings, referred to as brand income (“Brand Income”).

 

Brand Income is defined as any compensation earned by the athlete that is directly attributable to their participation, performance, or employment in their sport, including, but not limited to, salaries, signing bonuses, performance bonuses, prize money, and other compensation related to the athlete’s on-field activities. Brand Income excludes any earnings derived from off-field activities, such as endorsement deals, sponsorships, licensing, merchandising, personal appearances, and other similar income.

 

Revenue is recognized over time as the athlete earns Brand Income. The Company recognizes its revenue based on the terms of the executed Brand Advisory Agreement, which specifies a fixed percentage (“Brand Percentage”) of the athlete’s Brand Income to be paid to the Company. The Company recognizes revenue as the athlete earns Brand Income in accordance with the terms of the Brand Advisory Agreements.

 

As of December 31, 2025, the Company had not executed any Brand Advisory Agreement and no revenue was earned or recognized during the period.

 

Future Earnings Contracts

 

At the inception of a Brand Advisory Agreement, the Company may make an upfront payment to an athlete in exchange for the contractual right to receive a portion of the athlete’s future Brand Income. Such payments are capitalized as a future earnings contract and recorded as a long-term asset on the Company’s balance sheet.

 

The future earnings contract is amortized over the term of the applicable Brand Advisory Agreement in a manner consistent with the pattern in which the related Brand Income is earned, which generally corresponds to the recognition of related revenue.

 

The Company evaluates future earnings contracts for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If such indicators exist, the Company compares the carrying amount of the asset to the undiscounted expected future cash flows associated with the contract. If the carrying amount exceeds the expected future cash flows, an impairment loss is recognized for the excess of the carrying amount over the asset’s fair value.

 

Organizational and Operating Costs

 

Organizational and operating costs are expensed as incurred in accordance with ASC 720. Certain organizational, formation, and offering-related costs incurred on behalf of the Company were paid by the Manager and have been treated as deemed capital contributions. Accordingly, no reimbursement obligation has been recorded by the Company for such costs. Each Series is responsible for all of its own operating expenses, including allocation of such costs, and all costs of termination and winding up of the Series.

 

Allocation Policy

 

Pursuant to the Company’s operating agreement, the Manager is responsible for determining whether costs are directly attributable to a specific Series or represent shared costs. Costs that are directly attributable to a particular Series are allocated to that Series. Costs that are not specifically attributable to a single Series may be allocated among the Company’s Series on a reasonable and consistently applied basis, as determined by the Manager in accordance with the operating agreement.

 

F-10

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

Income Taxes

 

The Company is a limited liability company that has elected, or intends to elect, to be classified as a corporation for U.S. federal income tax purposes. The Company intends for each Series to be classified and taxed as a corporation for U.S. federal and state income tax purposes. Accordingly, each Series will be subject to U.S. federal and applicable state corporate income taxes on its taxable income. The Company accounts for income taxes in accordance with ASC 740, Income Taxes, and will recognize deferred tax assets and liabilities arising from temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Valuation allowances will be established when necessary to reduce deferred tax assets to the amount expected to be realized. For the period from November 3, 2025 (inception) through December 31, 2025, the Company did not recognize any provision for income taxes, as it did not generate taxable income.   

 

The Company evaluates uncertain tax positions in accordance with ASC 740 and recognizes liabilities for such positions when it is more likely than not that the position will not be sustained upon examination. Management has determined that there were no uncertain tax positions requiring recognition as of December 31, 2025. The Company is not currently under examination by any taxing authority. 

 

Net Earnings or Loss per Unit

 

Net earnings or loss per unit is computed by dividing net income or loss by the weighted-average number of units outstanding during the period, excluding units subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per unit.  Diluted net earnings or loss per unit reflect the actual weighted average of units issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive items are excluded from the computation of the diluted net earnings or loss per unit if their inclusion would be anti-dilutive.

 

No potentially dilutive items exist and no membership units are outstanding as of December 31, 2025.

 

Recent Accounting Pronouncements

 

The Financial Accounting Standards Board (“FASB”) periodically issues Accounting Standards Updates (“ASUs”) that amend U.S. generally accepted accounting principles. Management has reviewed recently issued accounting standards and assessed their applicability to the Company.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances disclosure requirements related to income taxes, including disaggregation of income tax expense and information about income taxes paid. The amendments are effective for annual reporting periods beginning after December 15, 2024. The adoption of this guidance did not have a material impact on the Company’s financial statements.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosure requirements related to reportable segments. The amendments are effective for annual reporting periods beginning after December 15, 2023. The adoption of this guidance did not have a material impact on the Company’s financial statements, as the Company operates as a single reporting segment.

 

Management has evaluated other recently issued accounting pronouncements that are effective or will be effective in future periods and has determined that such standards are either not applicable to the Company or are not expected to have a material impact on the Company’s financial position, results of operations, or cash flows.

 

F-11

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

NOTE 3: GOING CONCERN

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a business that has not commenced planned principal operations, plans to incur significant costs in pursuit of its capital financing plans and has incurred net loss of $1,162 from November 3, 2025 (inception) to December 31, 2025. The Company is dependent upon its Manager for the continued funding of its cash flow needs. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The Company’s ability to continue as a going concern in the next twelve months is dependent upon its ability to obtain capital financing from investors sufficient to meet current and future obligations and deploy such capital to produce profitable operating results. No assurance can be given that the Company will be successful in these efforts. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

NOTE 4: MEMBER’S EQUITY

 

Membership Units

 

Agentiq Sports 1 Series LLC (the “Company”) is a Delaware series limited liability company. The Company is authorized to issue, with respect to each Series, an unlimited number of limited liability company interests (“Units”) in accordance with the Company’s operating agreement.

 

The Company is wholly owned by its managing member, Agentiq Sports, Inc. (the “Manager”). No membership units have been issued by the Company to third-party investors as of December 31, 2025.

 

The Units represent economic interests in the applicable Series and entitle holders to receive distributions and liquidation proceeds of such Series in accordance with the operating agreement. Units do not provide holders with the right to participate in the day-to-day management of the Company or any Series.

 

Management

 

Unitholders have very limited voting rights. The Company is a manager-managed limited liability company, and each Series is similarly managed as a manager-managed Series. Pursuant to the operating agreement, Agentiq Sports, Inc. serves as the manager of the Company and each Series. The Manager has full, exclusive, and complete authority to manage and control the business and affairs of the Company and each Series, including the use of Series assets, the repayment of obligations, and the negotiation, execution, and performance of contracts and other instruments on behalf of the Company and each Series.

 

Members do not participate in the day-to-day management of the Company or any Series and have limited voting rights as set forth in the operating agreement.

 

Capital Contributions

 

For the period from November 3, 2025 (inception) through December 31, 2025, the Manager made non-cash capital contributions to the Company totaling $26,162. These contributions primarily represent organizational, formation, and offering-related costs incurred on behalf of the Company and paid by the Manager. Such amounts have been treated as deemed capital contributions to the Company.

 

F-12

 

 

AGENTIQ SPORTS 1 SERIES LLC

NOTES TO THE FINANCIAL STATEMENTS

As of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025

 

NOTE 5: RELATED PARTY TRANSACTIONS

 

Agentiq Sports 1 Series LLC (the “Company”) is managed by Agentiq Sports, Inc. (the “Manager”), which is considered a related party.

 

Management and Service Fees

 

In accordance with the Company’s operating agreement, the Manager is entitled to receive certain fees from each Series in connection with services provided. Each Series is required to pay the Manager a negotiation fee for negotiating and executing each Brand Advisory Agreement, which consists of (i) a percentage of the total capital advanced to a professional athlete under such agreement and (ii) reimbursement of reasonable out-of-pocket expenses incurred in connection with such negotiations. In addition, each Series is required to pay the Manager an ongoing maintenance fee for the management and administration of the Series and the related Brand Advisory Agreement.

 

For the period from inception on November 3, 2025 through December 31, 2025, no Brand Advisory Agreements had been executed, and accordingly, no negotiation fees or maintenance fees were incurred or payable to the Manager during the period.

 

Brand Advisory Arrangements

 

In the normal course of business, the Manager or its affiliates may provide administrative, operational, legal, accounting, compliance, marketing, and other services to the Company and its Series. The Company may also enter into Brand Advisory Agreements with professional athletes or other talent, pursuant to which the Company may provide brand advisory services and make upfront payments in exchange for the contractual right to receive a portion of future earnings. For the period from inception on November 3, 2025 through December 31, 2025, no Brand Advisory Agreement had been executed and no related revenue was recognized.

 

Related Party Advances and Reimbursement

 

Certain organizational, formation, and offering-related costs incurred on behalf of the Company were paid by the Manager during the period from inception through December 31, 2025. Such costs were treated as deemed capital contributions, and accordingly, no amounts were owed to the Manager as of December 31, 2025.

 

The Manager may, from time to time, advance funds to the Company or a Series to pay operating expenses, which, unless otherwise designated as capital contributions, would be recorded as related-party liabilities. No related-party advances or payable balances were outstanding as of December 31, 2025.

 

NOTE 6: COMMITMENTS AND CONTINGENCIES

 

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.

 

NOTE 7: SUBSEQUENT EVENTS

 

Management has evaluated all subsequent events through January 22, 2026, the date the financial statements were available to be issued. There are no material events requiring disclosure or adjustment to the financial statements.

 

F-13

 

 

PART III - EXHIBITS

 

Index to Exhibits

 

Exhibit No.   Description
1.1**   Broker-Dealer Engagement Agreement by and between Andes Capital Group, LLC and Agentiq Sports 1 Series LLC
2.1**   Certificate of Formation
2.2**   Operating Agreement
3.1**   Form of Series Designation
3.2**   Series Designation of Agentiq Sports 1 Series Ronny Cruz
4.1*   Form of Subscription Agreement
6.1**   Form of Brand Advisory Agreement
6.2**   Form of Client Acknowledgement (included in Exhibit 6.1)
6.3**   Form of Promissory Note
6.4**   Software and Services Agreement by and between North Capital Investment Technology Inc. and Agentiq Sports, Inc.
6.5**   Amended and Restated Brand Advisory Agreement, dated as of June 12, 2026, by and between Agentiq Sports 1 Series Ronny Cruz and Ronny Cruz
6.6**   Promissory Note of Agentiq Sports 1 Series Ronny Cruz dated May 12, 2026
8.1*   Form of Escrow Agreement by and among North Capital Private Securities Corporation, Agentiq Sports, Inc. and Agentiq Sports 1 Series LLC
10.1   Power of Attorney (incorporated by reference to the signature page hereto)
11.1**   Consent of Artesian CPA, LLC

 

*To be filed by amendment.

 

**Filed herewith.

 

III-1

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on June 15 , 2026.

 

  Agentiq Sports 1 Series LLC
   
  By: Agentiq Sports, Inc., its Manager
   
  By: /s/ Zach Kurtz
  Name:  Zachary Kurtz
  Title: Chief Executive Officer

 

POWER OF ATTORNEY

 

Each person whose signature appears below constitutes and appoints Zachary Kurtz as his (or her) true and lawful attorney-in-fact and agent with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any or all amendments (including post-qualification amendments) to this offering statement with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the foregoing, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitutes, may lawfully do or cause to be done by virtue hereof.

 

Pursuant to the requirements of the Securities Act of 1933, this offering statement has been signed by the following persons in the capacities and on the dates indicated.

 

Signature   Title   Date
         
/s/ Zach Kurtz   Chief Executive Officer and President of the Manager   June 15, 2026
Zachary Kurtz   (principal executive officer and principal financial and accounting officer)    

 

III-2

 

EX1A-1 UNDR AGMT 3 ea029473701ex1-1.htm BROKER-DEALER ENGAGEMENT AGREEMENT BY AND BETWEEN ANDES CAPITAL GROUP, LLC AND AGENTIQ SPORTS 1 SERIES LLC

Exhibit 1.1

 

BROKER-DEALER ENGAGEMENT AGREEMENT

 

This agreement (together with exhibits and schedules, the Agreement) is entered into by and between Agentiq Sports 1 Series LLC, a Delaware Series LLC (Client), and Andes Capital Group, LLC, an Illinois Limited Liability Company (Andes) a FINRA registered Broker Dealer in all 50 states and Puerto Rico. Client and Andes agree to be bound by the terms of this Agreement, effective as of January 19, 2026 (the Effective Date):

 

WHEREAS, Andes is a registered broker-dealer and Financial Industry Regulatory Authority (FINRA) member providing services in the equity and debt securities market, including offerings conducted via U.S. Securities and Exchange Commission (SEC) approved exemptions such as Reg D 506(b), 506(c), Regulation A+, Reg CF and others;

 

WHEREAS, Client intends to launch a new Regulation A Tier 2 continuous/series offering (the Series Offering) with an aggregate maximum offering amount of $75,000,000;

 

WHEREAS, Client seeks to engage Andes as broker-dealer of record for the Series Offering;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1. Appointment; Term, and Termination

 

Client hereby engages and retains Andes to provide operations and compliance services as broker-dealer of record for the Series Offering, including:

 

a.Act as the Broker of Record for initial and ongoing 1A (SEC), 5110 (FINRA) and Blue-Sky (States & Territories) compliance for all series

 

b.Andes will provide comprehensive assistance to the Client in achieving initial qualification of the Series Offering with both the SEC and FINRA. This includes, but is not limited to: (i) reviewing and providing detailed feedback on all offering documents, including the Form 1-A and any related exhibits or disclosures, to ensure completeness, accuracy, and compliance with applicable SEC and FINRA requirements; (ii) coordinating with the Client’s legal counsel and other advisors as necessary to address legal, regulatory, and structural considerations relevant to the offering; (iii) preparing, submitting, and managing all required filings with FINRA, with the understanding that all FINRA filings and related communications will be the sole responsibility of Andes

 

c.Provide introductions and coordination with engaging additional parties and service providers for the offering

 

d.Assist with use of Issuer Reg A Series website platform where potential investors begin the process of onboarding/investing by entering their interest, required personal information and reviewing and signing all offering related documentation

 

e.Performing AML/KYC on all investors for current and future series

 

f.Coordination with Registered Transfer Agent of the Client for all series

 

g.Coordination with escrow agents and qualified custodians for funds raised

 

h.Coordination with the Client’s legal partners for initial qualification and ongoing compliance

 

i.Providing other financial advisory services normal and customary for series offerings and as may be mutually agreed upon by Andes and the Client (collectively, the Services)

 

j.Payment Rails for providing investors with the ability to invest using credit cards and/or ACH

 

k.Series launch coordination and compliance support for each new series within the approved offering framework

 

 

 

 

The Agreement will commence on the Effective Date and will remain in effect for thirty-six (36) months, and will renew automatically for successive renewal terms of twelve (12) months each unless any party provides notice to the other party of non-renewal at least sixty (60) days prior to the expiration of the current term.

 

2. Termination

 

Either party may terminate this Agreement with sixty (60) days written notice. Termination shall not affect Andes’ ongoing obligations for any completed series or investors onboarded during the term. In the event of termination, for six months thereafter, Andes will cooperate in good faith to transition its responsibilities and provide all necessary information and assistance to any successor provider designated by the Client, to ensure a smooth and orderly transfer of services.

 

2. Services for Series Offering

 

Andes will perform the services listed above in section 1, in connection with the Series Offering. Services include:

 

a.Initial Offering Qualification: Andes will provide comprehensive support to the Client in preparing and submitting all necessary documentation for initial qualification of the Series Offering with the U.S. Securities and Exchange Commission (SEC) under Regulation A+, and shall make all required filings with the Financial Industry Regulatory Authority (FINRA) which are necessary for the Client to effect the offering described herein. This includes reviewing and advising on the preparation of the Form 1-A and related offering materials, coordinating with legal counsel as needed, assisting with responses to SEC, if necessary, and making all required FINRA filings, and facilitating the timely completion of all regulatory filings required to obtain qualification and approval for the Series Offering, which shall include responding to any FINRA comments within a timely manner

 

b.New Series Launch Support: For each new series launched within the approved offering framework, Andes will deliver full-service support, including but not limited to: reviewing and approving offering materials specific to each series, coordinating with the Client and its legal and compliance teams to ensure all regulatory requirements are met, assisting with the preparation and filing of any required amendments to SEC (which are the Client’s obligation) or FINRA filings (which are Andes’ obligation), and providing guidance on best practices for structuring and marketing each new series. Andes will also coordinate with relevant third-party service providers, such as transfer agents and escrow agents, to ensure a smooth and compliant launch process.

 

c.Ongoing Series Management: Andes will provide ongoing compliance services for all active series, which include maintaining regular communications with investors, monitoring compliance with applicable securities laws and regulations, and preparing or assisting in the preparation of required regulatory reports and disclosures. This also encompasses tracking and reporting on the status of each series, addressing investor inquiries, and coordinating with the Client’s internal teams and external service providers to ensure the continued operational and regulatory integrity of each series.

 

d.Continuous Compliance: Andes will conduct ongoing compliance monitoring for the duration of each series and throughout the overall offering period. This includes periodic reviews of offering activities, investor onboarding processes (including AML/KYC procedures), and ongoing verification that all activities remain in compliance with SEC, FINRA, and state Blue Sky requirements. Andes will also provide timely updates to the Client regarding any changes in regulatory requirements and will assist in implementing necessary adjustments to maintain compliance.

 

2

 

3. Compensation Structure for Series Offering

 

a.Base Services Compensation: As compensation for Broker of Record services, Client shall pay to Andes fees equal to 1.0% on the aggregate amount raised by the Client for each series.

 

b.Onboarding Fee: Client agrees to compensate Andes with a one-time onboarding fee of $7,500. This fee covers initial setup, regulatory filings, system integration, establishment of compliance procedures for the Series Offering, and includes the launch fees for the first five (5) series.

 

c.Series Launch Fee: Beginning with the sixth (6th) series, for each new series launched, Client agrees to pay a series launch fee of $1,000 to cover launch coordination, compliance review, and initial marketing setup. However, for every $500,000 raised in the Series Offering, Andes will waive the launch fee for one (1) new series. Waivers shall be applied on a cumulative basis and may be used at Client’s discretion for any future series launch after the fifth series.

 

d.Fee Structure Summary:

 

(i)Series 1-5: Launch fees included in onboarding fee

 

(ii)Series 6+: $1,000 per series launch (subject to waiver provision)

 

(iii)Waiver Provision: One series fee waived per $500,000 raised (applicable to series 6 and beyond)

 

e.Maximum Compensation Example:

 

(i)Broker of Record: 1.0% of $75,000,000 = $750,000

 

(ii)Onboarding fee (includes first 5 series): $7,500

 

(iii)Additional Series Launch Fees: Variable based on number of series beyond the first 5 and waiver application

 

(iv)Total Maximum Potential Compensation (excluding waivers): Approximately $757,500+

 

f.Series Fee Waiver Calculation:

 

(i)Total potential waivers: $75,000,000 / $500,000 = 150 series fee waivers

 

(ii)Client may launch up to 150 additional series (beyond the first 5) without series launch fees based on funds raised

 

4. Payment Terms and Procedures

 

a.Onboarding Fee: Due upon execution of this Agreement

 

b.Broker-Dealer Fees: Payable monthly within fifteen (15) days after the end of each calendar month based on funds raised during that month

 

c.Series Launch Fees: Due upon the launch of each new series (for series 6 and beyond, subject to waiver provisions)

 

All fees are non-refundable unless otherwise explicitly stated in this Agreement

 

FINRA Filing Fee:

 

Client acknowledges and agrees to pay the FINRA filing fee for Regulation A offerings:

 

a.FINRA Filing Fee Calculation: $500 plus 0.015% of the maximum aggregate offering amount ($75,000,000 x 0.00015 = $11,250)

 

b.Total FINRA Filing Fee Due: $11,750

 

Client shall reimburse Andes for FINRA fees paid on Client’s behalf within five (5) business days of invoice.

 

3

 

5. Series-Specific Regulatory Compliance

 

Client and Andes acknowledge that the Series Offering operates under continuous offering rules with specific compliance requirements:

 

a.Initial Qualification: SEC qualification and FINRA filing for the Series Offering framework

 

b.Series Reporting: Quarterly and annual reporting obligations for each active series

 

c.Investor Communications: Ongoing communication requirements with investors across all active series

 

d.Blue Sky Compliance: Initial registration and maintenance of state registrations for the offering

 

e.FINRA Oversight: Ongoing FINRA supervision for all active and future series

 

6. Series Offering Specific Provisions

 

a.Series Launch Process: Each new series launch will require: (i) 30-day advance notice to Andes; (ii) offering materials review and approval, which will be completed in a timely manner after receipt by Andes; (iii) FINRA filing amendments if required (which are the obligation of Andes); and (iv) state blue sky compliance updates (which is the obligation of the Client).

 

b.Ongoing Responsibilities: Andes acknowledges responsibility for ongoing compliance, investor relations, and regulatory reporting for all series active during the term of this agreement.

 

7. Representations and Warranties

 

a.Andes represents and warrants to Client that: (i) it is duly registered as a broker-dealer with the SEC and is a member in good standing of the Financial Industry Regulatory Authority FINRA; (ii) it has all requisite power and authority to enter into and perform its obligations under this Agreement; (iii) the execution, delivery, and performance of this Agreement by Andes has been duly authorized by all necessary corporate action; (iv) this Agreement constitutes a valid and binding obligation of Andes, enforceable in accordance with its terms; (v) it is in compliance in all material respects with all applicable federal and state securities laws, including Regulation A promulgated under the Securities Act of 1933, as amended, and all applicable FINRA rules; (vi) it will not offer or sell any securities in connection with the Series Offerings except in compliance with Reg A+ and all other applicable laws and regulations; (vii) it has not been subject to any disciplinary action by the SEC, FINRA, or any state securities authority that would impair its ability to perform its obligations under this Agreement; and (viii) it will promptly notify Client of any material change in its registration status, standing with FINRA, or any investigation or proceeding that could reasonably be expected to adversely affect its ability to perform hereunder.

 

b.Client represents and warrants to Andes that: (i) Client is duly organized, validly existing, and in good standing under the laws of its jurisdiction of formation, and has all requisite power and authority to own, lease, and operate its properties and to carry on its business as currently conducted; (ii) the execution, delivery, and performance of this Agreement by the Client have been duly authorized by all necessary action on the part of the Client. This Agreement constitutes a valid and binding obligation of the Client, enforceable against the Client in accordance with its terms; (iii) the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby do not and will not (A) conflict with or violate any provision of the Client’s organizational documents, (B) violate any law, regulation, order, or decree applicable to the Client, or (C) result in a breach of, or constitute a default under, any material agreement or instrument to which the Client is a party or by which it is bound; (iv) no consent, approval, authorization, or order of, or filing with, any governmental authority or third party is required for the execution, delivery, and performance of this Agreement by the Client, except as may be required under applicable securities laws and regulations in connection with the Series Offering; (v) the Client is, and at all times during the term of this Agreement will be, in compliance in all material respects with all applicable federal and state securities laws, rules, and regulations, including Regulation A promulgated under the Securities Act of 1933, as amended; (vi) all offering documents, disclosures, and other materials provided by the Client to Andes or to investors in connection with the Series Offering (the Offering Materials) are, and at the time of each use will be, to the best of the Client’s knowledge and belief, true, complete, and accurate in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made; (vii) none of the Client, its directors, executive officers, or any other persons covered by Rule 262 of Regulation A are subject to any bad actor disqualification events described in Rule 262 of Regulation A under the Securities Act of 1933, as amended; and (viii) Client will promptly notify Andes in writing of (A) any material adverse change in its business, operations, or financial condition, (B) any event or circumstance that would cause any of the representations or warranties in this Section to be untrue or misleading, or (C) any investigation or proceeding by any governmental authority relating to the Series Offering.

 

4

 

8. Indemnification

 

a.Client agrees to indemnify and hold Andes and each Registered Person harmless against any and all loss, liability, claim, damage and expense (including reasonable attorneys’ and accountants’ fees and including the costs of investigating any event related to any action or proceeding between the parties or otherwise) arising out of or based upon Client’s bad faith, gross negligence or willful misconduct.

 

b.Andes agrees to indemnify and hold Client and its principals, shareholders, members, directors, officers, employees, affiliates and agents harmless against any and all loss, liability, claim, damage and expense whatsoever (including attorneys’ and accountants’ fees and including the costs of investigating any event related to any action or proceeding between the parties or otherwise) based upon Andes’ bad faith, fraud, negligence, willful misconduct or breach of this Agreement.

 

c.The indemnities in this Section 8 shall survive the termination of this Agreement.

 

9. Legal

 

a.Each provision of this Agreement is several and is not affected if another provision of this Agreement is found to be invalid or unenforceable or to contravene applicable law or regulations. This Agreement is not intended to and does not confer any rights upon any shareholder of the Client or, except as expressly provided herein, any other person.

 

b.Neither party may assign or transfer this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior written consent of the other party. Any attempted assignment or transfer without such consent shall be null and void. Notwithstanding the foregoing, either party may assign this Agreement in connection with a merger, consolidation, or sale of all or substantially all of its assets or business, provided that the assignee agrees in writing to be bound by all terms and conditions of this Agreement and the non-assigning party is given prior written notice. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and permitted assigns, subject to the restrictions on assignment set forth herein.

 

c.Nothing herein is intended to create or shall be construed as creating a fiduciary relationship between the Client and Andes. No term or provision of this agreement may be amended, discharged or modified in any respect except in writing signed by the parties hereto. This Agreement sets out the entire agreement between us.

 

d.This Agreement will be construed in accordance with the laws of the State of Delaware. Any dispute, controversy or claim directly or indirectly relating to or arising out of this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

5

 

e.The costs and expenses (including reasonable attorney’s fees of the prevailing party) shall be borne and paid by the party that the arbitrator, or arbitrators, determines is the non-prevailing party. The Client agrees and consents to personal jurisdiction, service of process and venue in any federal or state court within the State of Delaware in connection with any action brought to enforce an award in arbitration and in connection with any action to compel arbitration.

 

f.Each of Andes and the Client on its own behalf and, to the extent permitted by applicable law, on behalf of its shareholders waives all right to trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) related to or arising out of the engagement of Andes pursuant to, or the performance by Andes of the services contemplated by this agreement.

 

g.Pursuant to the requirements of the USA Patriot Act (the Act) and other applicable laws, rules and regulations, Andes is required to obtain, verify and record information that identifies the Client, which information includes the name and address of the Client and other information that will allow Andes to identify the Client in accordance with the Act and such other laws, rules and regulations.

 

10. Confidentiality

 

Confidential Information means any non-public information, whether written, oral, electronic, or in any other form, disclosed by one party (the Disclosing Party) to the other party (the Receiving Party), including but not limited to business plans, strategies, financial data, customer lists, trade secrets, technical information, and any other information designated as confidential or that a reasonable person would understand to be confidential given the nature and circumstances of disclosure. The Receiving Party shall: (a) use Confidential Information solely to evaluate or perform its obligations under this Agreement; (b) restrict disclosure to its officers, directors, employees, partners, and advisors (collectively, Representatives) who need to know such information for the purposes of this Agreement and who are bound by confidentiality obligations at least as protective as those herein; (c) not disclose Confidential Information to any third party without the Disclosing Party’s prior written consent, except as required by law, regulation, or regulatory request, including to the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, or other governmental authorities, provided that (to the extent legally permitted) the Receiving Party gives prompt written notice to the Disclosing Party and cooperates in any efforts to limit such disclosure; and (d) use at least the same degree of care to protect Confidential Information as it uses for its own confidential information, but no less than reasonable care. The Receiving Party shall promptly notify the Disclosing Party of any unauthorized use or disclosure. These obligations do not apply to information that: (i) is or becomes publicly available through no breach of this Agreement; (ii) is rightfully received from a third party without restriction and without breach of any obligation of confidentiality; (iii) is independently developed by the Receiving Party without use of or reference to the Disclosing Party’s Confidential Information; or (iv) is required to be disclosed by law, regulation, court order, or regulatory authority, provided that the Receiving Party gives prompt written notice to the Disclosing Party (to the extent legally permitted) and cooperates in any efforts to limit such disclosure. Upon termination of this Agreement or upon written request, the Receiving Party shall promptly return or destroy all Confidential Information, including all copies, except as required by law or regulatory authorities. The obligations of confidentiality and non-use survive for three (3) years following termination or expiration of this Agreement, except for trade secrets, which shall be protected for so long as they remain trade secrets under applicable law. The parties acknowledge that any breach or threatened breach of this section may cause irreparable harm, and the Disclosing Party shall be entitled to seek equitable relief, including injunctive relief, specific performance, and a protective order, in addition to any other remedies available at law or in equity, without the necessity of posting bond or proving actual damages.

 

Should the Client wish to proceed, please confirm acceptance of the terms of this Agreement by signing and returning one copy to me.

 

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11. Series Offering Miscellaneous Provisions

 

a.Non-Exclusive Agreement: This Agreement is non-exclusive regarding other business activities but exclusive regarding the specific Series Offering covered herein.

 

b.Series Survival: Obligations regarding any specific series shall survive termination of this Agreement until such series is fully closed and all regulatory obligations are complete.

 

c.Regulatory Changes: If regulatory changes materially affect series offering requirements, parties agree to negotiate in good faith regarding necessary agreement modifications.

 

12. Notice

 

All notices, requests, consents, claims, demands, waivers, and other communications under this Agreement (each, a Notice) must be in writing and shall be deemed to have been duly given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (with written confirmation of receipt); (c) on the date sent by email (with confirmation of transmission), if sent during normal business hours on a business day (otherwise, on the next business day); or (d) on the third business day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.

 

Notices must be sent to the respective parties at the addresses set forth below (or to such other address or email address as that party may designate by Notice to the other party in accordance with this Section):

 

If to Client: Agentiq Sports I Series LLC [Address] Attention: Zach Kurtz, Chief Executive Officer Email: zach@agentiqsports.com

 

If to Andes: Andes Capital Group, LLC 205 W. Wacker Drive, Suite 610 Attention: Curtis Spears, President Email: cspears@andescap.com

 

Either party may change its address or email for Notice by providing Notice to the other party in accordance with this Section.

 

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

 

CLIENT

 

Agentiq Sports 1 Series LLC

 

By its manager, Agentiq Sports, Inc.  
   
By: /s/ Zachary Kurtz  
Name:  Zach Kurtz  
Title: Chief Executive Officer  
   
Date: 01/20/2026  
   
ANDES CAPITAL GROUP LLC  
   
By: /s/ Curtis Spears  
Name: Curtis Spears  
Title: President  
     
Date: 01/19/2026  

 

8

 

EX1A-2A CHARTER 4 ea029473701ex2-1.htm CERTIFICATE OF FORMATION

Exhibit 2.1

 

CERTIFICATE OF FORMATION

 

OF

 

AGENTIQ SPORTS 1 SERIES LLC

 

THE UNDERSIGNED, for the purpose of forming a limited liability company under the provisions and subject to the requirements of the Delaware Limited Liability Company Act, Chapter 18, Title 6 of the Delaware Code, as amended, does hereby certify as follows:

 

1. Name. The name of the limited liability company formed hereby is Agentiq Sports 1 Series LLC (the “Company”).

 

2. Registered Office and Agent. The registered office of the Company in the State of Delaware is located at 108 W. 13th Street, Suite 100, Wilmington, DE 19801, New Castle County. The name of the registered agent at such address upon whom process against the Company may be served is Vcorp Agent Services, Inc.

 

3. Series. The Company may establish one or more designated series of members, managers, limited liability company interests or assets. Any such series may have separate rights, powers or duties with respect to specified property or obligations of the Company or profits and losses associated with specified property or obligations, and any such series may have a separate business purpose or investment objective. Notice is hereby given that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series shall be enforceable against the assets of such series only, and not against the assets of the Company generally or any other series thereof, and, unless otherwise provided in the limited liability company agreement of the Company, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Company generally or any other series thereof shall be enforceable against the assets of such series.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Formation this 3rd day of November 2025.

 

  By: /s/ Zach Kurtz
  Name: Zach Kurtz
  Title: Authorized Person

 

EX1A-2A CHARTER 5 ea029473701ex2-2.htm OPERATING AGREEMENT

Exhibit 2.2

 

 

 

 

 

 

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

 

OF

 

AGENTIQ SPORTS 1 SERIES LLC
(a Delaware Series Limited Liability Company)

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
ARTICLE I. DEFINITIONS   1
   
ARTICLE II. ORGANIZATION   6
     
ARTICLE III. MEMBERS, SERIES, AND INTERESTS   8
     
ARTICLE IV. REGISTRATION AND TRANSFERABILITY   14
     
ARTICLE V. MANAGEMENT AND OPERATION OF THE COMPANY AND EACH SERIES   18
     
ARTICLE VI. FEES AND EXPENSES   24
     
ARTICLE VII. DISTRIBUTIONS   24
     
ARTICLE VIII. BOOKS, RECORDS, ACCOUNTING AND REPORTS   25
     
ARTICLE IX. TAX MATTERS   26
     
ARTICLE X. REMOVAL OF THE MANAGER   26
     
ARTICLE XI. DISSOLUTION, TERMINATION AND LIQUIDATION   26
     
ARTICLE XII. AMENDMENT OF AGREEMENT, SERIES DESIGNATION   28
     
ARTICLE XIII. MEMBER MEETINGS   30
     
ARTICLE XIV. CONFIDENTIALITY   30
     
ARTICLE XV. GENERAL PROVISIONS   32

 

i

 

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

 

OF

 

AGENTIQ SPORTS 1 SERIES LLC
(a Delaware Series Limited Liability Company)

 

 

 

This Limited Liability Company Operating Agreement (this “Agreement”) of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Company”), is entered into as of November 3, 2025, by and between Agentiq Sports, Inc., a Delaware corporation, as the Manager, and each Person who hereafter becomes a Member associated with a Series by acquiring Units of such Series and executing or adopting a Form of Adherence. The parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE I.
DEFINITIONS

 

1.1 Definitions. The following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement:

 

Abort Costs” means all fees, costs and expenses incurred in connection with any Series Asset proposals pursued by the Company, the Manager or a Series that do not proceed to completion.

 

Additional Economic Member” means a Person admitted as an Economic Member and associated with a Series in accordance with Article III because of an issuance of Units of such Series to such Person by the Company.

 

Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

Agreement” has the meaning assigned to such term in the preamble.

 

Alternative Trading System” or “ATS” means an alternative trading system within the meaning of Regulation ATS under the Exchange Act or any successor rule, regulation or requirement, in each case as approved by the Manager for the trading of Units of any Series.

 

Allocation Policy” means the allocation policy of the Company adopted by the Manager in accordance with Section 5.1.

 

Brand Advisory Agreement” means an agreement entered into between a Series and a Client, pursuant to which the Client agrees to pay to the Series a contractually specified portion of the Client’s Brand Income (as defined in such agreement), in exchange for an upfront payment and brand advisory and enhancement services; for the avoidance of doubt, the scope of income included or excluded shall be as set forth in the applicable Brand Advisory Agreement.

 

Broker” means any Person who has been appointed by the Company (and as the Manager may select in its reasonable discretion) and specified in any Series Designation to provide execution and other services relating to an Initial Offering to the Company, or its successors from time to time, or any other broker in connection with any Initial Offering.

 

Brokerage Fee” means the fee payable to the Broker for the purchase by any Person of Units in an Initial Offering equal to an amount agreed between the Manager and the Broker from time to time and specified in any Series Designation.

 

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Business Day” means any day other than a Saturday, a Sunday, or a day on which commercial banks in New York, New York are authorized or required to close.

 

Capital Contribution” means with respect to any Member, the amount of cash and the fair market value of any other property contributed or deemed contributed to the capital of a Series by or on behalf of such Member, reduced by the amount of any liability assumed by such Series relating to such property and any liability to which such property is subject.

 

Certificate of Formation” means the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware, dated November 3, 2025.

 

Client” means any athlete or other talent who is a party to a Brand Advisory Agreement with a Series of the Company.

 

Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of any successor law.

 

Company” means Agentiq Sports 1 Series LLC, a Delaware series limited liability company, and any successors thereto.

 

Conflict of Interest” means any matter that the Manager believes may involve a conflict of interest that is not otherwise addressed by the Allocation Policy.

 

Delaware Act” means the Delaware Limited Liability Company Act, 6 Del. C. Section 18-101, et seq.

 

DGCL” means the General Corporation Law of the State of Delaware, 8 Del. C. Section 101, et seq.

 

Economic Member” means together, the Investor Members, Additional Economic Members (including any Person who receives Units in connection with any goods or services provided to a Series) and their successors and assigns admitted as Additional Economic Members and Substitute Economic Members, in each case who is admitted as a Member of such Series but shall exclude the Manager in its capacity as Manager. For the avoidance of doubt, the Manager or any of its Affiliates shall be an Economic Member to the extent it purchases Units in a Series.

 

ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

Expenses and Liabilities” has the meaning assigned to such term in Section 5.4(a).

 

Form of Adherence” means, in respect of an Initial Offering or Subsequent Offering, a subscription agreement or other agreement substantially in the form appended to the Offering Document pursuant to which an Investor Member or Additional Economic Member agrees to adhere to the terms of this Agreement or, in respect of a Transfer, a form of adherence or instrument of Transfer, each in a form satisfactory to the Manager from time to time, pursuant to which a Substitute Economic Member agrees to adhere to the terms of this Agreement. Each Form of Adherence shall include the adhering Person’s express consent to be bound by this Agreement, the mandatory arbitration provisions, the class action waiver, electronic communications and notices, applicable tax elections and tax reporting procedures, confidentiality obligations, Transfer restrictions, and the power of attorney granted under Section 2.6.

 

Free Cash Flow” has the meaning assigned to such term in Section 7.1.

 

Governmental Entity” means any court, administrative agency, regulatory body, commission or other governmental authority, board, bureau, or instrumentality, domestic or foreign and any subdivision thereof.

 

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Indemnified Person” means (a) any Person who is or was an Officer of the Company or associated with a Series, (b) any Person who is or was a Manager, together with its officers, directors, members, shareholders, employees, managers, partners, controlling persons, agents or independent contractors, (c) any Person who is or was serving at the request of the Company as an officer, director, member, manager, partner, fiduciary or trustee of another Person; provided, that, except to the extent otherwise set forth in a written agreement between such Person and the Company or a Series, a Person shall not be an Indemnified Person by reason of providing, on a fee for services basis, trustee, fiduciary, administrative or custodial services, and (d) any Person the Manager designates as an Indemnified Person for purposes of this Agreement.

 

Individual Aggregate 12-Month Investment Limit” means, with respect to any individual holder who is not an “accredited investor” as defined under the Securities Act, in any trailing twelve-month period, 10% of the greater of such holder’s annual income or net worth or, with respect to any entity, 10% of the greater of such holder’s annual revenue or net assets at fiscal year-end.

 

Initial Offering” means the first offering or private placement and issuance of any Units of a Series.

 

Investment Advisers Act” means the Investment Advisers Act of 1940, as amended.

 

Investment Company Act” means the Investment Company Act of 1940, as amended.

 

Investor Members” mean those Persons who acquire Units in an Initial Offering or Subsequent Offering and their successors and assigns admitted as Additional Economic Members.

 

Liquidator” means the Manager, or one or more Persons selected by the Manager, to perform the functions described in Section 11.2 as liquidating trustee of the Company or a Series, as applicable, within the meaning of the Delaware Act.

 

Maintenance Fee” means an fee payable by each Series to the Manager as specified in the Series Designation for ongoing management and administration of the Series and the related Brand Advisory Agreement, which fee shall be paid in such intervals as specified in the Series Designation.

 

Manager” means, as the context requires, the Manager of the Company or the Manager of a Series. The Manager of the Company is appointed pursuant to Section 3.1(h). The manager of each Series shall be the Manager or a third-party, as set forth in the applicable Series Designation.

 

Member” means each member of the Company associated with a Series, including, unless the context otherwise requires, the Manager, each Economic Member (as the context requires), each Substitute Economic Member and each Additional Economic Member.

 

National Securities Exchange” means an exchange registered with the SEC under Section 6(a) of the Exchange Act.

 

Negotiation Fee” means a fee that each Series must pay to the Manager for negotiating and executing each Brand Advisory Agreement, consisting of (i) a percentage of the total capital advanced to a professional athlete under any such agreement, and (ii) reimbursement for the reasonable out-of-pocket expenses incurred by the Series in connection with negotiating any such agreement.

 

Offering Document” means, with respect to any Series or the Units of any Series, the prospectus, offering memorandum, offering circular, offering statement, offering circular supplement, private placement memorandum or other offering documents related to an Initial Offering of such Units, in the form approved by the Manager and, to the extent required by applicable law, approved or qualified, as applicable, by any applicable Governmental Entity, including without limitation the SEC.

 

Offering Expenses” means in respect of each Series, the following fees, costs and expenses allocable to such Series or such Series pro rata share (as determined by the Allocation Policy, if applicable) of any such fees, costs and expenses allocable to the Company incurred in connection with executing the Offering, consisting of the Issuance Fee, underwriting, legal, accounting, escrow, blue sky filings required in order for such Series to be made available to Economic Members in certain states (unless borne by the Manager, as determined in its sole discretion) and compliance costs related to a specific offering.

 

3

 

Officers” means any president, vice president, secretary, treasurer or other officer of the Company or any Series as the Manager may designate (which shall, in each case, constitute managers within the meaning of the Delaware Act).

 

Operating Expense Reimbursement Obligation(s)” has the meaning ascribed in Section 6.3(c).

 

Operating Expenses” means in respect of each Series, the following fees, costs, and expenses allocable to such Series or such Series pro rata share (as determined by the Allocation Policy, if applicable) of any such fees, costs, and expenses allocable to the Company: (a) the Maintenance Fee owed to the Manager; (b) any fees, costs and expenses incurred in connection with preparing any reports and accounts of each Series of Units, including any blue sky filings required in order for a Series of Unit to be made available to investors in certain states and any annual audit of the accounts of such Series of Units (if applicable) and any reports to be filed with the SEC including periodic reports on Forms 1-K, 1-SA and 1-U; (c) any and all insurance premiums or expenses, including directors and officer’s insurance of the directors and officers of the Manager in connection with the Series Asset; (d) any withholding or transfer taxes imposed on the Company or a Series or any of the Members because of its or their earnings, investments, or withdrawals; (e) any governmental fees imposed on the capital of the Company or a Series or incurred in connection with compliance with applicable regulatory requirements; (f) any legal fees and costs (including settlement costs) arising in connection with any litigation or regulatory investigation instituted against the Company, or a Series in connection with the affairs of the Company or a Series; (g) the fees and expenses of any administrator, if any, engaged to provide administrative services to the Company or a Series; (h) any fees, costs and expenses of a third-party registrar and transfer agent appointed by the Manager in connection with a Series; (i) the cost of the audit of the Company’s annual financial statements and the preparation of its tax returns and circulation of reports to Economic Members; (j) the cost of any audit of a Series annual financial statements, the fees, costs, and expenses incurred in connection with making of any tax filings on behalf of a Series and circulation of reports to Economic Members; (k) any indemnification payments to be made pursuant to Section 5.4; (l) the fees and expenses of the Company’s or a Series counsel in connection with advice directly relating to the Company’s or a Series’ legal affairs; (m) the costs of any other outside, accountants, attorneys or other experts or consultants engaged by the Manager in connection with the operations of the Company or a Series; and (n) any similar expenses that may be determined to be Operating Expenses, as determined by the Manager in its reasonable discretion.

 

Outstanding” means all Units that are issued by the Company and reflected as outstanding on the Company’s books and records as of the date of determination.

 

Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, Governmental Entity, or other entity.

 

ATS Transfer” means a Transfer permitted pursuant to Section 4.2(i).

 

Platform” means the online investment platform and marketplace operated by the Manager (through its website at www.agentiqsports.com and any associated mobile applications), or any successor thereto, or any other platform through which offerings of Series Units are conducted and through which Investor Members may purchase Units and where Economic Members may access information and updates regarding their investments.

 

Preferred Unit Designation” has the meaning ascribed in Section 3.3(f).

 

Record Date” means the date established by the Manager for determining (a) the identity of the Record Holders entitled to notice of, or to vote at, any meeting of Members associated with any Series or entitled to exercise rights in respect of any lawful action of Members associated with any Series or (b) the identity of Record Holders entitled to receive any report or distribution or to participate in any offer.

 

Record Holder or holder” means the Person in whose name such Units are registered on the books of the Company as of the opening of business on a particular Business Day, as determined by the Manager in accordance with this Agreement.

 

4

 

“Revenue Share Trust” has the meaning set forth in the applicable Brand Advisory Agreement.

 

SEC” means the U.S. Securities and Exchange Commission.

 

Securities Act” means the Securities Act of 1933, as amended.

 

Series” has the meaning assigned to such term in Section 3.3(a).

 

Series Assets” means, at any particular time, a Brand Advisory Agreement executed between the Series and a Client.

 

Series Designation” has the meaning assigned to such term in Section 3.3(a).

 

Subsequent Offering” means any further issuance of Units in any Series, excluding any Initial Offering or Transfer.

 

Substitute Economic Member” means a Person who is admitted as an Economic Member of the Company and associated with a Series pursuant to Section 4.1(b) because of a Transfer of Units to such Person.

 

Super Majority Vote” means, the affirmative vote of the holders of Outstanding Units of all Series representing at least eighty percent (80%) of the total votes that may be cast by all such Outstanding Units, voting together as a single class.

 

Transfer” means, with respect to an Unit, a transaction by which the Record Holder of an Unit assigns such Unit to another Person who is or becomes a Member, and includes a sale, assignment, gift, exchange, ATS Transfer, or any other disposition by law or otherwise, including any transfer upon foreclosure of any pledge, encumbrance, hypothecation, or mortgage.

 

U.S. GAAP” means United States generally accepted accounting principles consistently applied, as in effect from time to time.

 

Unit” means a unit of membership interest in a Series of the Company.

 

1.2 Construction. Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to paragraphs, Articles and Sections refer to paragraphs, Articles and Sections of this Agreement; (c) the term “include” or “includes” means includes, without limitation, and “including” means including, without limitation; (d) the words herein, hereof and hereunder and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; (e) or has the inclusive meaning represented by the phrase and/or; (f) unless the context otherwise requires, references to agreements and other documents shall be deemed to include all subsequent amendments and other modifications thereto; (g) references to any Person shall include all predecessors of such Person, as well as all permitted successors, assigns, executors, heirs, legal representatives and administrators of such Person; (h) any reference in this Agreement to a specific number of Units shall be deemed to refer to such number as appropriately and proportionately adjusted to reflect any Unit split, Unit combination, Unit distribution, recapitalization, or similar event affecting the number of Outstanding Units; and (i) any reference to any statute or regulation includes any implementing legislation and any rules made under that legislation, statute or statutory provision, whenever before, on, or after the date of the Agreement, as well as any amendments, restatements or modifications thereof, as well as all statutory and regulatory provisions consolidating or replacing the statute or regulation. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. 

 

5

 

ARTICLE II.
ORGANIZATION

 

2.1 Formation. The Company was formed upon the filing of its Certificate of Formation with the Secretary of State of the State of Delaware on November 3, 2025. The Company was organized as a series limited liability company pursuant to Section 18-215 of the Delaware Act. Except as expressly provided to the contrary in this Agreement, the rights, duties, liabilities and obligations of the Members and the administration, dissolution and termination of the Company and each Series shall be governed by the Delaware Act.  

 

2.2 Name. The name of the Company is Agentiq Sports 1 Series LLC. The business of the Company and any Series may be conducted under any other name or names, as determined by the Manager. The Manager may change the name of the Company at any time and from time to time and shall notify the Economic Members of such change in the next regular communication to the Economic Members or by press release or the filing of a report with the SEC disclosing such change. 

 

2.3 Registered Office and Agent; Principal Office and Other Offices. Unless and until changed by the Manager in its sole discretion, the registered office of the Company in the State of Delaware shall be as set forth in the Certificate of Formation, and the registered agent for service of process on the Company and each Series in the State of Delaware shall be as set forth in the Certificate of Formation. The principal office of the Company shall be located at 445 Bryant Street, San Francisco, California 90147, or such other place as the Manager may from time to time designate by notice to the Economic Members associated with the applicable Series or by press release or the filing of a report with the SEC disclosing the location of such principal office. The Company and each Series may maintain offices at such other place or places within or outside the State of Delaware as the Manager determines to be necessary or appropriate. The Manager may change the registered office, registered agent, or principal office of the Company or of any Series at any time and from time to time and shall notify the applicable Economic Members of such change in the next regular communication to such Economic Members or by press release or the filing of a report with the SEC. 

 

2.4 Purpose. The purpose of the Company, and unless otherwise provided in the applicable Series Designation, each Series, shall be to promote, conduct, or engage in, directly or indirectly, any business, purpose, or activity that may lawfully be conducted by a series limited liability company organized under the Delaware Act. Such activities shall include, without limitation: (i) providing strategic brand enhancement and promotional advisory services to athletes and other talent pursuant to Brand Advisory Agreements, which may encompass brand positioning, fan engagement initiatives, sponsorship and endorsement readiness, and the development and execution of related marketing campaigns; (ii) making capital payments to Clients in accordance with the terms and conditions of Brand Advisory Agreements in exchange for contractual rights to receive payments based on a portion of the Client’s future revenue (including, without limitation, compensation tied to sports salaries and related earnings, as applicable under the relevant Brand Advisory Agreement); (iii) funding brand-enhancement initiatives; and (iv) conducting any and all activities related or incidental to the foregoing purposes, including the administration of investments and operations through the Platform or a successor, and the engagement of brokers, escrow agents, and other service providers.

 

2.5 Powers. The Company, each Series thereof, and, subject to the terms of this Agreement, the Manager, shall have the authority to take any and all actions and to do all things that are necessary or appropriate to further and accomplish the purposes set forth in Section 2.4. 

 

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2.6 Power of Attorney

 

(a) Each Economic Member hereby constitutes and appoints the Manager and, if a Liquidator shall have been selected pursuant to Section 11.2, the Liquidator, and each of their authorized officers and attorneys in fact, as the case may be, with full power of substitution, as his or her true and lawful agent and attorney in fact, with full power and authority in his or her name, place and stead, to: (i) execute, swear to, acknowledge, deliver, file and record in the appropriate public offices: (A) all certificates, documents and other instruments (including this Agreement and the Certificate of Formation and all amendments or restatements hereof or thereof) that the Manager, or the Liquidator, determines to be necessary or appropriate to form, qualify or continue the existence or qualification of the Company as a series limited liability company in the State of Delaware and in all other jurisdictions in which the Company or any Series may conduct business or own property; (B) all certificates, documents and other instruments that the Manager, or the Liquidator, determines to be necessary or appropriate to reflect, in accordance with its terms, any amendment, change, modification or restatement of this Agreement; (C) all certificates, documents and other instruments that the Manager or the Liquidator determines to be necessary or appropriate to reflect the dissolution, liquidation or termination of the Company or a Series pursuant to the terms of this Agreement; (D) all certificates, documents and other instruments relating to the admission, withdrawal or substitution of any Economic Member pursuant to, or in connection with other events described in, Article III or Article XI; (E) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of any Series of Unit issued pursuant to Section 3.3; (F) all certificates, documents and other instruments that the Manager or Liquidator determines to be necessary or appropriate to maintain the separate rights, assets, obligations and liabilities of each Series; (G) all certificates, documents and other instruments (including agreements and a certificate of merger) relating to a merger, consolidation or conversion of the Company; and (H) all transfer agent agreements, Alternative Trading System participation agreements, listing agreements, trading, settlement, custody, escrow, broker, dealer, compliance, tax, regulatory, and other agreements, certificates, instruments, notices, consents, approvals, waivers or other documents that the Manager determines to be necessary or appropriate to list any Units of a Series on an Alternative Trading System approved by the Manager or to effect, facilitate, evidence, settle, record, or administer any Transfer of Units through such Alternative Trading System; and (ii) execute, swear to, acknowledge, deliver, file and record all ballots, consents, approvals, waivers, certificates, documents and other instruments that the Manager or the Liquidator determines to be necessary or appropriate to (A) make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action that is made or given by any of the Members hereunder or is consistent with the terms of this Agreement or (B) effectuate the terms or intent of this Agreement; provided, that when any provision of this Agreement that establishes a percentage of the Members or of the Members of any Series required to take any action, the Manager, or the Liquidator, may exercise the power of attorney made in this Section 2.6(a) only after the necessary vote, consent, approval, agreement or other action of the Members or of the Members of such Series, as applicable.

 

(b) The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and, to the maximum extent permitted by law, not be affected by the subsequent death, incompetency, disability, incapacity, dissolution, bankruptcy or termination of any Economic Member and the transfer of all or any portion of such Economic Member’s Units and shall extend to such Economic Members heirs, successors, assigns and personal representatives. Each such Economic Member hereby agrees to be bound by any representation made by any officer of the Manager, or the Liquidator, acting in good faith pursuant to such power of attorney; and each such Economic Member, to the maximum extent permitted by law, hereby waives any and all defenses that may be available to contest, negate or disaffirm the action of the Manager, or the Liquidator, taken in good faith under such power of attorney in accordance with this Section 2.6. Each Economic Member shall execute and deliver to the Manager, or the Liquidator, within 15 days after receipt of the request therefor, such further designation, powers of attorney and other instruments as any of such Officers or the Liquidator determines to be necessary or appropriate to effectuate this Agreement and the purposes of the Company.

 

(c) Nothing contained in this Section 2.6 shall be construed as authorizing the Manager, or the Liquidator, to amend, change or modify this Agreement except in accordance with Article XII or as may be otherwise expressly provided for in this Agreement.

 

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2.7 Term. The term of the Company commenced on the day on which the Certificate of Formation was filed with the Secretary of State of the State of Delaware pursuant to the provisions of the Delaware Act. The existence of each Series shall commence upon the effective date of the Series Designation establishing such Series, as provided in Section 3.3. The term of the Company and each Series shall be perpetual, unless and until it is dissolved or terminated in accordance with the provisions of Article XI. The existence of the Company as a separate legal entity shall continue until the cancellation of the Certificate of Formation as provided in the Delaware Act. 

 

2.8 Title to Assets. All Units shall constitute personal property of the owner thereof for all purposes and a Member has no interest in specific assets of the Company or applicable Series Assets. Title to any Series Assets, whether real, personal, or mixed and whether tangible or intangible, shall be deemed to be owned by the Series to which such asset was contributed or by which such asset was acquired, and none of the Company, any Member, Officer, or other Series, individually or collectively, shall have any ownership interest in such Series Assets or any portion thereof. Without limiting the foregoing, the contractual rights of a Series under its Brand Advisory Agreement shall constitute Series Assets of that Series. Title to any or all of the Series Assets may be held in the name of the relevant Series or one or more nominees, as the Manager may determine. All Series Assets shall be recorded by the Manager as the property of the applicable Series in the books and records maintained for such Series, irrespective of the name in which record title to such Series Assets is held. 

 

2.9 Certificate of Formation. The Certificate of Formation has been filed with the Secretary of State of the State of Delaware, such filing being hereby confirmed, ratified, and approved in all respects. The Manager shall use reasonable efforts to cause to be filed such other certificates or documents that it determines to be necessary or appropriate for the formation, continuation, qualification, and operation of a series limited liability company in the State of Delaware or any other state in which the Company or any Series may elect to do business or own property. To the extent that the Manager determines such action to be necessary or appropriate, the Manager shall, or shall direct the appropriate Officers, to file amendments to and restatements of the Certificate of Formation and do all things to maintain the Company as a series limited liability company under the laws of the State of Delaware or of any other state in which the Company or any Series may elect to do business or own property, and if an Officer is so directed, such Officer shall be an authorized person of the Company and, unless otherwise provided in a Series Designation, each Series within the meaning of the Delaware Act for purposes of filing any such certificate with the Secretary of State of the State of Delaware. The Company shall not be required, before or after filing, to deliver or mail a copy of the Certificate of Formation, any qualification document, or any amendment thereto to any Member. 

 

ARTICLE III.
MEMBERS, SERIES, AND INTERESTS

 

3.1 Members.

 

(a) Subject to Section 3.1(b), a Person shall be admitted as an Economic Member and Record Holder either as a result of an Initial Offering, Subsequent Offering, a Transfer or at such other time as determined by the Manager, and upon (i) agreeing to be bound by the terms of this Agreement by completing, signing and delivering to the Manager, a completed Form of Adherence, which is then accepted by the Manager, or by satisfying such other procedures as the Manager may establish for an ATS Transfer that require substantially equivalent express consents, (ii) the prior written consent of the Manager, except with respect to an ATS Transfer made in accordance with Section 4.2(i), and (iii) otherwise complying with the applicable provisions of Article III and Article IV.

 

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(b) The Manager may withhold its consent to the admission of any Person as an Economic Member where such consent is required for any reason, including when it determines in its reasonable discretion that such admission could: (i) result in there being 2,000 or more beneficial owners (as such term is used under the Exchange Act) or 500 or more beneficial owners that are not accredited investors (as defined under the Securities Act) of any Series of Units, as specified in Section 12(g)(1)(A)(ii) of the Exchange Act (which limitations may be waived by the Manager in its sole discretion), (ii) could adversely affect the Company or a Series or subject the Company, a Series, the Manager or any of their respective Affiliates to any additional regulatory or governmental requirements or cause the Company to be disqualified as a limited liability company, or subject the Company, any Series, the Manager or any of their respective Affiliates to any tax to which it would not otherwise be subject, (iii) cause the Company to be required to register as an investment company under the Investment Company Act, (iv) cause the Manager or any of its Affiliates being required to register under the Investment Advisers Act, (v) cause the assets of the Company or any Series to be treated as plan assets as defined in Section 3(42) of ERISA, or (vi) result in a loss of (A) partnership status by the Company for US federal income tax purposes or the termination of the Company for US federal income tax purposes or (B) corporation taxable as an association status for US federal income tax purposes of any Series or termination of any Series for US federal income tax purposes. A Person may become a Record Holder without the consent or approval of any of the Economic Members. A Person may not become a Member without acquiring an Unit.

 

(c) The name and mailing address of each Member shall be listed on the books and records of the Company and each Series maintained for such purpose by the Company and each Series. The Manager shall update the books and records of the Company and each Series from time to time as necessary to reflect accurately the information therein.

 

(d) Except as otherwise provided in the Delaware Act and subject to Section 3.1(e) and Section 3.3 relating to each Series, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member.

 

(e) Except as otherwise provided in the Delaware Act, the debts, obligations, and liabilities of a Series, whether arising in contract, tort or otherwise, shall be solely the debts, obligations, and liabilities of such Series, and not of any other Series. In addition, the Members shall not be obligated personally for any such debt, obligation, or liability of any Series solely by reason of being a Member.

 

(f) Unless otherwise provided herein, and subject to Article XI, Members may not be expelled from or removed as Members of the Company. Members shall not have any right to resign or redeem their Units from the Company; provided that when a transferee of a Units becomes a Record Holder of such Units, such transferring Member shall cease to be a Member of the Company with respect to the Units so transferred and that Members of a Series shall cease to be Members of such Series when such Series is finally liquidated in accordance with Section 11.3

 

(g) Except as may be otherwise agreed between the Company or a Series, on the one hand, and a Member, on the other hand, any Member shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Company or a Series, including business interests and activities in direct competition with the Company or any Series. None of the Company, any Series or any of the other Members shall have any rights by virtue of this Agreement in any such business interests or activities of any Member.

 

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(h) Agentiq Sports, Inc. was appointed as the Manager of the Company with effect from the date of the formation of the Company on November 3, 2025 and shall continue as Manager of the Company until the earlier of (i) the dissolution of the Company pursuant to Section 11.1(a), or (ii) its removal or replacement pursuant to Section 4.4 or Article X. Except as otherwise set forth in the Series Designation, the Manager of each Series shall be Agentiq Sports, Inc., or any designee thereof, until the earlier of (i) the dissolution of the Series pursuant to Section 11.1(b) or (ii) its removal or replacement pursuant to Section 4.4 or Article X.

 

3.2 Capital Contributions.

 

(a) The minimum number of Units a Member may acquire is one (1) Unit or such higher amount as the Manager may determine from time to time and as specified in each Series Designation, if any. Persons acquiring Units through an Initial Offering or Subsequent Offering shall make a Capital Contribution to the Company in an amount equal to the per Unit price determined in connection with such Initial Offering or Subsequent Offering and multiplied by the number of Units acquired by such Person in such Initial Offering or Subsequent Offering, as applicable. Persons acquiring Units in a manner other than through an Initial Offering or Subsequent Offering or pursuant to a Transfer shall make such Capital Contribution as shall be determined by the Manager in its sole discretion.

 

(b) Except as expressly permitted by the Manager, in its sole discretion (i) Capital Contributions to the Company or Series as applicable, by any Member shall be payable in cash, (ii) in one installments, and (iii) shall be paid prior to the date of the proposed acceptance by the Manager of a Person’s admission as a Member to a Series (or a Member’s application to acquire additional Units) (or within five business days thereafter with the Manager’s approval). No Member shall be required to make an additional capital contribution to the Company or Series but may make an additional Capital Contribution to acquire additional Units in an Offering at such Member’s sole discretion.

 

(c) Except to the extent expressly provided in this Agreement (including any Series Designation): (i) no Member shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent, if any, that distributions made pursuant to this Agreement or upon dissolution or termination of the Company or any Series may be considered as such by law and then only to the extent provided for in this Agreement; (ii) no Member holding any Units of a Series shall have priority over any other Member holding Units of the same Series either as to the return of Capital Contributions or as to distributions; (iii) no interest shall be paid by the Company or any Series on any Capital Contributions; and (iv) no Economic Member, in its capacity as such, shall participate in the operation or management of the business of the Company or any Series, transact any business on behalf of or in the name of the Company or any Series, or have the power to sign documents for or otherwise bind the Company or any Series by reason of being a Member.

 

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3.3 Establishment and Operation of Series.

 

(a) Establishment of Series. Subject to the provisions of this Agreement, the Manager may, at any time and from time to time and in compliance with Section 3.3(c), cause the Company to establish in writing (each, a “Series Designation”) one or more series as such term is used under Section 18-215 of the Delaware Act (each a “Series”). Each Series, once established, shall constitute a separate and distinct series of the Company, with independent legal existence and operational autonomy. Each Series Designation shall relate solely to the Series established thereby and shall not be construed: (i) to affect the terms and conditions of any other Series, or (ii) to designate, fix or determine the rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Units associated with any other Series, or the Members associated therewith. The terms and conditions for each Series established pursuant to this Section 3.3(a) shall be as set forth in this Agreement and the Series Designation, as applicable, for the Series. Upon approval of any Series Designation by the Manager, such Series Designation shall be attached to this Agreement as an Exhibit until such time as none of such Units of such Series remain Outstanding.

 

(b) Series Operation. Each of the Series shall operate as if it were a separate limited liability company, with separate bank accounts and books and records.

 

(c) Series Designation. The Series Designation establishing a Series may: (i) specify a name or names under which the business and affairs of such Series may be conducted; (ii) designate, fix and determine the relative rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Units of such Series and the Members associated therewith (to the extent such terms differ from those set forth in this Agreement) and (iii) designate or authorize the designation of specific Officers to be associated with such Series. A Series Designation (or any resolution of the Manager amending any Series Designation) shall be effective when a duly executed Series Designation is included by the Manager among the permanent records of the Company, and shall be annexed to, and constitute part of, this Agreement (it being understood and agreed that, upon such effective date, the Series described in such Series Designation shall be deemed to have been established and the Units of such Series shall be deemed to have been authorized in accordance with the provisions thereof). The Series Designation establishing a Series may set forth specific provisions governing the rights of such Series against a Member associated with such Series who fails to comply with the applicable provisions of this Agreement (including, for the avoidance of doubt, the applicable provisions of such Series Designation). In the event of a conflict between the terms and conditions of this Agreement and a Series Designation, the terms and conditions of the Series Designation shall prevail.

 

(d) Segregation of Assets and Liabilities Associated with a Series.

 

(i) All consideration received by the Company for the issuance or sale of Units of a particular Series, together with all assets in which such consideration is invested or reinvested, and all income, earnings, profits and proceeds thereof, from whatever source derived, including any proceeds derived from the sale, exchange or liquidation of such assets, and any funds or payments derived from any reinvestment of such proceeds, in whatever form the same may be, shall, subject to the provisions of this Agreement, be held for the benefit of the Series or the Members associated with such Series, and not for the benefit of the Members associated with any other Series, for all purposes, and shall be strictly accounted for and recorded upon the books and records of the Series separately from any assets associated with any other Series. In the event that there are any assets in relation to the Company that, in the Managers reasonable judgment, are not readily associated with a particular Series, the Manager shall allocate such assets to, between or among any one or more of the Series, in such manner and on such basis as the Manager deems fair and equitable, and in accordance with the Allocation Policy, and any asset so allocated to a particular Series shall thereupon be deemed to be an asset associated with that Series. Each allocation by the Manager pursuant to the provisions of Section 3.3(d)(i) shall be conclusive and binding upon the Members associated with each and every Series. Separate and distinct records shall be maintained for each and every Series, and the Manager shall not commingle the assets of one Series with the assets of any other Series.

 

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(ii) All debts, liabilities, expenses, costs, charges, obligations, and reserves incurred by, contracted for or otherwise existing with respect to a particular Series shall be charged against the assets associated with that Series. In the event that there are any liabilities in relation to the Company that, in the Managers reasonable judgment, are not readily associated with a particular Series, the Manager shall allocate and charge (including indemnification obligations) such liabilities to, between or among any one or more of the Series, in such manner and on such basis as the Manager deems fair and equitable and in accordance with the Allocation Policy, and any liability so allocated and charged to a particular Series shall thereupon be deemed to be a liability associated with that Series. Each allocation by the Manager pursuant to the provisions of this Section 3.3(d)(ii) shall be conclusive and binding upon the Members associated with each and every Series. All liabilities associated with a Series shall be enforceable against the assets associated with that Series only, and not against the assets associated with the Company or any other Series, and except to the extent set forth above, no liabilities shall be enforceable against the assets associated with any Series prior to the allocation and charging of such liabilities as provided above. Any allocation of liabilities that are not readily associated with a particular Series to, between or among one or more of the Series shall not represent a commingling of such Series to pool capital for the purpose of carrying on a trade or business or making common investments and sharing in profits and losses therefrom. The Manager has caused notice of this limitation on inter-series liabilities to be set forth in the Certificate of Formation, and, accordingly, the statutory provisions of Section 18-215(b) of the Delaware Act relating to limitations on inter-series liabilities (and the statutory effect under Section 18-207 of the Delaware Act of setting forth such notice in the Certificate of Formation) shall apply to the Company and each Series. Notwithstanding any other provision of this Agreement, no distribution on or in respect of Units in a particular Series, including, for the avoidance of doubt, any distribution made in connection with the winding up of such Series, shall be effected by the Company other than from the assets associated with that Series, nor shall any Member or former Member associated with a Series otherwise have any right or claim against the assets associated with any other Series (except to the extent that such Member or former Member has such a right or claim hereunder as a Member or former Member associated with such other Series or in a capacity other than as a Member or former Member)

 

(e) Ownership of Series Assets. Title to and beneficial interest in Series Assets shall be deemed to be held and owned by the relevant Series and no Member or Members of such Series, individually or collectively, shall have any title to or beneficial interest in specific Series Assets or any portion thereof. Each Member of a Series irrevocably waives any right that it may have to maintain an action for partition with respect to its interest in the Company, any Series, or any Series Assets. Any Series Assets may be held or registered in the name of the relevant Series, in the name of a nominee or as the Manager may determine; provided, however, that Series Assets shall be recorded as the assets of the relevant Series on the Company’s books and records, irrespective of the name in which legal title to such Series Assets is held. Any corporation, brokerage firm or transfer agent called upon to transfer any Series Assets to or from the name of any Series shall be entitled to rely upon instructions or assignments signed or purporting to be signed by the Manager or its agents without inquiry as to the authority of the person signing or purporting to sign such instruction or assignment or as to the validity of any transfer to or from the name of such Series.

 

(f) No Preferred Units. No Units shall entitle any Member to any preemptive, preferential, or similar rights unless such preemptive, preferential, or similar rights are set forth in the applicable Series Designation on or prior to the date of an Initial Offering of any Units of such Series (the designation of such preemptive, preferential, or similar rights with respect to a Series in the Series Designation, the “Preferred Unit Designation”).

 

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3.4 Authorization to Issue Units.

 

(a) The Company may issue Units, and options, rights and warrants relating to Units, for any Company or Series purpose at any time and from time to time to such Persons for such consideration (which may be cash, property, services, or any other lawful consideration) or for no consideration and on such terms and conditions as the Manager shall determine, all without the approval of the Economic Members. Each Unit shall have the rights and be governed by the provisions set forth in this Agreement (including any Series Designation).

 

(b) Unless otherwise provided in the applicable Series Designation, the Manager is authorized to issue, in respect of each Series, an unlimited number of Units. All Units issued pursuant to, and in accordance with the requirements of, this Article III shall be validly issued Units in the Company, except to the extent otherwise provided in the Delaware Act or this Agreement (including any Series Designation).

 

3.5 Voting Rights.  

 

(a) Economic Members shall have voting rights solely with respect to the following matters and no others: (i) the removal of the Manager upon the entry of a final, non-appealable judgment as described in Article X, including, at the meeting called under Article X, the appointment of a replacement Manager by plurality or the election to liquidate and dissolve the Company and each Series as described in Article X and Section 11.1(a)(v); (ii) the election of a successor Manager upon the resignation of the Manager, as described in Section 4.4(c); (iii) the dissolution of the Company following the for-cause removal of the Manager, as described in Article X; and (iv) the approval of amendments to this Agreement that require the consent of Economic Members holding a majority of the Outstanding Units, as described in Article XII, including any amendment that decreases the percentage of Outstanding Units required to take any action hereunder, materially adversely affects the rights of Economic Members, modifies Section 11.1(a) or gives any Person the right to dissolve the Company, or modifies the term of the Company. 

 

(b) With respect to any particular Series, Economic Members shall have such additional voting rights, if any, as are expressly set forth in the applicable Series Designation, as described in Section 3.3(c).

 

(c) Except as expressly provided in Section 3.5(a) and Section 3.5(b), Economic Members shall have no voting rights on any other matter, and the management and operation of the Company and each Series shall be vested exclusively in the Manager, as described in Section 5.1. 

 

(d) Any vote required or permitted under this Section 3.5 shall be conducted by the holders of Outstanding Units in accordance with the applicable voting thresholds and procedures set forth in this Agreement, including a Super Majority Vote where expressly required. 

 

3.6 Record Holders. The Company shall be entitled to recognize the Record Holder as the owner of an Unit and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Unit on the part of any other Person, regardless of whether the Company shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation, guideline or requirement of any National Securities Exchange, over-the-counter market, or Alternative Trading System on which such Units are listed for trading (if ever). Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some other representative capacity for another Person in acquiring or holding Units, as between the Company on the one hand, and such other Persons on the other, such representative Person shall be the Record Holder of such Units.  

 

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3.7 Splits.

 

(a) Subject to Section 3.7(c) and Section 3.4, and unless otherwise provided in any Preferred Unit Designation, the Company may make a pro rata distribution of Units of a Series to all Record Holders of such Series, or may effect a subdivision or combination of Units of any Series, in each case, on an equal per Unit basis and so long as, after any such event, any amounts calculated on a per Unit basis or stated as a number of Units are proportionately adjusted.

 

(b) Whenever such a distribution, subdivision or combination of Units is declared, the Manager shall select a date as of which the distribution, subdivision or combination shall be effective. The Manager shall send notice thereof at least 20 days prior to the date of such distribution, subdivision, or combination to each Record Holder as of a date not less than 10 days prior to the date of such distribution, subdivision, or combination. The Manager also may cause a firm of independent public accountants selected by it to calculate the number of Units to be held by each Record Holder after giving effect to such distribution, subdivision, or combination. The Manager shall be entitled to rely on any certificate provided by such firm as conclusive evidence of the accuracy of such calculation.

 

(c) Subject to Section 3.4 and unless otherwise provided in any Series Designation, the Company shall not issue fractional Units upon any distribution, subdivision, or combination of Units. If a distribution, subdivision, or combination of Units would otherwise result in the issuance of fractional Units, each fractional Unit shall be rounded down.

 

3.8 Binding Agreements. The rights of all Members and the terms of all Units are subject to the provisions of this Agreement and any applicable Series Designation.  

 

ARTICLE IV.
REGISTRATION AND TRANSFERABILITY

 

4.1 Maintenance of a Register. Subject to the restrictions on Transfer and ownership limitations contained below:  

 

(a) The Company shall keep or the Manager shall cause to be kept on behalf of the Company and each Series a register that will set forth the Record Holders of each of the Units and information regarding the Transfer of each of the Units. The Manager is hereby initially appointed as registrar and transfer agent of the Units, provided that the Manager may appoint such third-party registrar and transfer agent as it determines appropriate in its sole discretion, for the purpose of registering Units and Transfers of such Units as herein provided, including as set forth in any Series Designation.

 

(b) Upon acceptance by the Manager of the Transfer of any Unit, or with respect to any ATS Transfer, upon recognition of such Transfer in accordance with the procedures established by the Manager, each transferee of a Unit (i) shall be admitted to the Company as a Substitute Economic Member with respect to the Units so transferred to such transferee when any such transfer or admission is reflected in the books and records of the Company, (ii) shall be deemed to agree to be bound by the terms of this Agreement by completing a Form of Adherence to the reasonable satisfaction of the Manager in accordance with Section 4.2(g)(ii) or satisfying such other procedures as the Manager may establish for an ATS Transfer that require substantially equivalent express consents, (iii) shall become the Record Holder of the Units so transferred, (iv) grants powers of attorney to the Manager and any Liquidator of the Company and each of their authorized officers and attorneys in fact, as the case may be, as specified herein, and (v) makes the consents and waivers contained in this Agreement. The Transfer of any Units and the admission of any new Economic Member shall not constitute an amendment to this Agreement, and no amendment to this Agreement shall be required for the admission of new Economic Members.

 

(c) Nothing contained in this Agreement shall preclude the listing, trading or settlement of any transactions involving Units entered into through the facilities of any National Securities Exchange, over-the-counter market, or Alternative Trading System on which such Units are listed for trading, if any, in each case as approved by the Manager and subject to applicable law, Section 4.2(i), Section 4.3 and any conditions established by the Manager.

 

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4.2 Ownership Limitations.

 

(a) Except with respect to any ATS Transfer, no Transfer of any Economic Members Unit, whether voluntary or involuntary, shall be valid or effective, and no transferee shall become a substituted Economic Member, unless the written consent of the Manager has been obtained, which consent may be withheld in its sole and absolute discretion as further described in this Section 4.2. In the event of any Transfer other than a ATS Transfer, all of the conditions of the remainder of this Section 4.2 must also be satisfied. Notwithstanding the foregoing but subject to Section 3.6, assignment of the economic benefits of ownership of Units may be made without the Managers consent, provided that the assignee is not an ineligible or unsuitable investor under applicable law

 

(b) Except with respect to any ATS Transfer, no Transfer of any Economic Member’s Units, whether voluntary or involuntary, shall be valid or effective unless the Manager determines, after consultation with legal counsel acting for the Company that such Transfer will not, unless waived by the Manager:

 

(i) cause all or any portion of the assets of the Company or any Series to constitute plan assets for purposes of ERISA;

 

(ii) adversely affect the Company or such Series, or subject the Company, the Series, the Manager, or any of their respective Affiliates to any additional regulatory or governmental requirements or cause the Company to be disqualified as a limited liability company or subject the Company, any Series, the Manager, or any of their respective Affiliates to any tax to which it would not otherwise be subject;

 

(iii) require registration of the Company, any Series, or any Units under any securities laws of the United States of America, any state thereof or any other jurisdiction; or

 

(iv) violate or be inconsistent with any representation or warranty made by the transferring Economic Member.

 

(c) Except with respect to any ATS Transfer, the transferring Economic Member, or such Economic Members legal representative, shall give the Manager prior written notice before making any voluntary Transfer and notice within thirty (30) days after any involuntary Transfer (unless such notice period is otherwise waived by the Manager), and shall provide sufficient information to allow legal counsel acting for the Company to make the determination that the proposed Transfer will not result in any of the consequences referred to in Section 4.2(b) above. If a Transfer occurs by reason of the death of an Economic Member or assignee, the notice may be given by the duly authorized representative of the estate of the Economic Member or assignee. The notice must be supported by proof of legal authority and valid assignment in form and substance acceptable to the Manager.

 

(d) In the event any Transfer permitted by this Section 4.2 shall result in beneficial ownership by multiple Persons of any Economic Members interest in the Company, the Manager may require one or more trustees or nominees to be designated to represent a portion of or the entire interest transferred for the purpose of receiving all notices which may be given and all payments which may be made under this Agreement, and for the purpose of exercising the rights which the transferor as an Economic Member had pursuant to the provisions of this Agreement.

 

(e) A transferee shall be entitled to any future distributions attributable to the Units transferred to such transferee and to transfer such Units in accordance with the terms of this Agreement; provided, however, that such transferee shall not be entitled to the other rights of an Economic Member because of such Transfer until he or she becomes a Substitute Economic Member.

 

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(f) The Company and each Series shall incur no liability for distributions made in good faith to the transferring Economic Member until, with respect to any Transfer other than a ATS Transfer, a written instrument of Transfer has been received by the Company and recorded on its books and the effective date of Transfer has passed, and, with respect to any ATS Transfer, such Transfer has been recognized in accordance with the procedures established by the Manager.

 

(g) Any other provision of this Agreement to the contrary notwithstanding, any Substitute Economic Member shall be bound by the provisions hereof. Prior to recognizing any Transfer other than a ATS Transfer in accordance with this Section 4.2, the Manager may require, in its sole discretion:

 

(i) the transferring Economic Member and each transferee to execute one or more deeds or other instruments of Transfer in a form satisfactory to the Manager;

 

(ii) each transferee to acknowledge its assumption (in whole or, if the Transfer is in respect of part only, in the proportionate part) of the obligations of the transferring Economic Member by executing a Form of Adherence (or any other equivalent instrument as determined by the Manager);

 

(iii) each transferee to provide all the information required by the Manager to satisfy itself as to anti-money laundering, counter-terrorist financing, and sanctions compliance matters; and

 

(iv) payment by the transferring Economic Member, in full, of the costs and expenses referred to in Section 4.2(h), and no Transfer other than a ATS Transfer shall be completed or recorded in the books of the Company, and no proposed Substitute Economic Member shall be admitted to the Company as an Economic Member, unless and until each of these requirements has been satisfied or, at the sole discretion of the Manager, waived.

 

(h) Except with respect to any ATS Transfer (unless otherwise required by the Manager), any transferring Economic Member shall bear all costs and expenses arising in connection with any proposed Transfer, whether or not the Transfer proceeds to completion, including any legal fees incurred by the Company or any broker or dealer, any costs, or expenses in connection with any opinion of counsel, and any transfer taxes and filing fees

 

(i) Any Transfer of Units of a Series effected through an Alternative Trading System approved by the Manager shall constitute an “ATS Transfer” and shall not be subject to the Manager consent requirements set forth in Section 4.2(a) or the notice requirements set forth in Section 4.2(c); provided, that no ATS Transfer shall be valid or recognized unless such Transfer complies with all applicable securities law requirements, investor eligibility and suitability standards, applicable holding periods and resale limitations, bad-actor disqualification requirements, anti-money laundering, counter-terrorist financing and sanctions requirements, tax withholding, reporting and classification requirements, ERISA and plan asset requirements, and any Series-specific restrictions set forth in the applicable Series Designation or Offering Document. Any waiver of a restriction described in the preceding sentence must be approved through a written controlled compliance waiver procedure established by the Manager that (A) identifies the restriction to be waived, (B) confirms, based on advice of counsel or other appropriate compliance review, that the waiver is permitted by applicable law and would not adversely affect the Company, any Series, the Manager or any Member, (C) is documented in the books and records of the Company or applicable Series, and (D) is applied in a manner consistent with the applicable Offering Document, Series Designation, transfer agent procedures and Alternative Trading System procedures. The Manager may suspend, limit or condition any Transfers through an approved Alternative Trading System if the Manager determines such action is necessary or appropriate to comply with applicable law, protect the Company or any Series, preserve the status of the Company or any Series for tax, regulatory or other purposes, enforce Series-specific restrictions, or administer the books and records of the Company or any Series.

 

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4.3 ATS Securities Compliance; Investor Eligibility; Transfer Controls.

 

(a) The Manager shall establish and maintain procedures reasonably designed to ensure that no Units are issued, sold, transferred or recognized on the books and records of the Company or any Series unless such issuance, sale, Transfer or recognition complies with this Agreement, the applicable Series Designation, the applicable Offering Document, applicable securities laws, and any conditions imposed by the Manager, the Broker, the transfer agent, any applicable Alternative Trading System, or any other service provider engaged in connection with such issuance, sale or Transfer.

 

(b) Before any issuance of Units or recognition of any Transfer, including any ATS Transfer, the Manager shall, and shall require the Broker, the transfer agent and any applicable Alternative Trading System, as applicable to their respective functions, to take commercially reasonable steps to verify and enforce all applicable investor eligibility requirements, investor suitability standards, investment limits, including the Individual Aggregate 12-Month Investment Limit to the extent applicable, beneficial-owner limits, resale limitations, holding periods, bad-actor disqualification requirements, anti-money laundering, counter-terrorist financing and sanctions requirements, tax withholding and reporting requirements, ERISA and plan asset requirements, and any Series-specific restrictions set forth in the applicable Series Designation or Offering Document.

 

(c) The Manager shall cause the Company or the applicable Series to maintain, directly or through the transfer agent, Broker, Alternative Trading System or other service provider, books and records sufficient to monitor Record Holders and, to the extent reasonably available to the Company or required by applicable law or the applicable Offering Document, beneficial owners of Units for purposes of compliance with the Exchange Act, the Securities Act, the Investment Company Act, the Investment Advisers Act, ERISA, tax requirements, anti-money laundering and sanctions requirements, and any ownership or transfer limitations applicable to the relevant Series.

 

(d) The Manager shall use commercially reasonable efforts to cause each Offering Document, Series Designation, Form of Adherence, Alternative Trading System procedure and transfer agent procedure to include disclosure and operational terms consistent with this Agreement and shall update or supplement such disclosure and procedures when the Manager determines that an update is necessary or appropriate to reflect material changes in the Company, any Series, the Units, transfer procedures, applicable law or regulatory requirements.

 

(e) In the event of any conflict between this Agreement, any Series Designation, any Offering Document, any Form of Adherence, any Alternative Trading System procedure or any transfer agent procedure, the provision that imposes the more restrictive compliance, investor eligibility, investment limit, resale, transfer, disclosure, tax, ERISA, anti-money laundering, sanctions or Series-specific requirement shall control, unless the Manager determines, based on advice of counsel, that another provision must control to comply with applicable law or preserve the intended regulatory, tax or liability status of the Company or the applicable Series.

 

4.4 Certain Obligations of the Manager.

 

(a) The Manager may Transfer any or all of its Units at any time and from time to time following the closing of an Initial Offering.

 

(b) The Economic Members hereby authorize the Manager to assign its rights, obligations and title as Manager to an Affiliate of the Manager without the prior consent of any other Person, and, in connection with such transfer, designate such Affiliate of the Manager as a successor Manager provided, that the Manager shall notify the applicable Economic Members of such change in the next regular communication to such Economic Members or by press release or the filing of a report with the SEC disclosing such change.

 

(c) Except as set forth in Section 4.4(b) above, in the event of the resignation of the Manager of its rights, obligations and title as Manager, the Manager shall nominate a successor Manager and the vote of a majority of the Units held by Economic Members shall be required to elect such successor Manager. The Manager shall continue to serve as the Manager of the Company until such date as a successor Manager is elected pursuant to the terms of this Section 4.4(c).

 

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4.5 Remedies for Breach. If the Manager shall at any time determine in good faith that a Transfer or other event has taken place that results in a violation of this Article IV, the Manager shall take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Company to redeem Units, refusing to give effect to such Transfer on the books of the Company or instituting proceedings to enjoin such Transfer or other event. 

 

ARTICLE V.
MANAGEMENT AND OPERATION OF THE COMPANY AND EACH SERIES

 

5.1 Power and Authority of Manager. Except as explicitly set forth in this Agreement, the Manager, as appointed pursuant to Section 3.1(h) of this Agreement, shall have full power and authority to do, and to direct the Officers to do, all things and on such terms as it determines to be necessary or appropriate to conduct the business of the Company and each Series, to exercise all powers set forth in Section 2.5 and to effectuate the purposes set forth in Section 2.4, in each case without the consent of the Economic Members, including but not limited to the following: 

 

(a) the making of any expenditures, the lending or borrowing of money, the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance of evidences of indebtedness, including entering into on behalf of a Series, an Operating Expense Reimbursement Obligation, or indebtedness that is convertible into Units, and the incurring of any other obligations;

 

(b) the making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the Company or any Series (including, but not limited to, the filing of periodic reports on Forms 1-K, 1-SA and 1-U with the SEC), and the making of any tax elections;

 

(c) the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation, or exchange of any or all of the assets of the Company or any Series or the merger or other combination of the Company with or into another Person and for the avoidance of doubt, any action taken by the Manager pursuant to this sub-paragraph shall not require the consent of the Economic Members;

 

(d) the use of the assets of the Company (including cash on hand) for any purpose consistent with the terms of this Agreement, including the financing of the conduct of the operations of the Company and the repayment of obligations of the Company, and the use of the assets of a Series (including cash on hand) for any purpose consistent with the terms of this Agreement, including the financing of the conduct of the operations of such Series and the repayment of obligations of such Series;

 

(e) the negotiation, execution and performance of any contracts, conveyances, or other instruments (including instruments that limit the liability of the Company or any Series under contractual arrangements to all or particular assets of the Company or any Series);

 

(f) the negotiation, execution, administration and enforcement of Brand Advisory Agreements and related collateral, payment, reporting, audit, and disclosure instruments on behalf of the applicable Series;

 

(g) the perfecting, maintaining, and enforcement of security interests securing a Client’s obligations under any Brand Advisory Agreement, including the authority to execute and file initial UCC financing statements, amendments, and continuations; deliver irrevocable payment instructions or payor notices; and pursue collection and enforcement remedies (including cooperating with lawful wage garnishments, court orders, or similar process) with respect to any Brand Advisory Agreement;

 

(h) the assignment, sale, pledge, or other transfer of a Series’ rights under any Brand Advisory Agreement, including rights to receive the Brand Amount and any related security interests, to an Affiliate, successor, financing vehicle, or acquirer, and the Manager is authorized to execute related consents, notices, and transfer instruments;

 

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(i) the action in the manager’s own name or on behalf of the applicable Series to enforce any Brand Advisory Agreement and related rights, to recover amounts due thereunder, and to administer proceeds for the account of such Series and its Members;

 

(j) the election and removal of Officers of the Company or associated with any Series;

 

(k) the selection, retention and dismissal of employees, agents, outside attorneys, accountants, consultants and contractors and the determination of their compensation and other terms of employment, retention or hiring, and the payment of fees, expenses, salaries, wages, and other compensation to such Persons;

 

(l) the solicitation of proxies from holders of any Series of Units issued on or after the date of this Agreement that entitles the holders thereof to vote on any matter submitted for consent or approval of Economic Members under this Agreement;

 

(m) the maintenance of insurance for the benefit of the Company, any Series and the Indemnified Persons and the reinvestment by the Manager in its sole discretion, of any proceeds received by such Series from an insurance claim in a replacement Series Asset which is substantially similar to that which comprised the Series Asset prior to the event giving rise to such insurance payment;

 

(n) the formation of, or acquisition or disposition of an interest in, and the contribution of property and the making of loans to, any limited or general partnership, joint venture, corporation, limited liability company or other entity or arrangement;

 

(o) the control of any matters affecting the rights and obligations of the Company or any Series, including the bringing, prosecuting, and defending of actions at law or in equity and otherwise engaging in the conduct of litigation, arbitration or remediation, and the incurring of legal expense and the settlement of claims and litigation, including in respect of taxes;

 

(p) the indemnification of any Person against liabilities and contingencies to the maximum extent permitted by law;

 

(q) the giving of consent of or voting by the Company or any Series in respect of any securities that may be owned by the Company or such Series;

 

(r) the waiver of any condition or other matter by the Company or any Series;

 

(s) the listing of any Units of a Series on any National Securities Exchange, over-the-counter market, or Alternative Trading System approved by the Manager, the entering into of listing agreements, Alternative Trading System participation agreements, transfer agent agreements, broker, dealer, settlement, custody, escrow, compliance, tax, regulatory, or other ancillary agreements or documentation in connection therewith, the taking of all actions that the Manager determines to be reasonably necessary or appropriate to effect, facilitate, maintain, administer, suspend or terminate any such listing or trading arrangement, and the delisting of some or all of the Units from, or requesting that trading be suspended on, any such exchange, market, or Alternative Trading System;

 

(t) the issuance, sale or other disposition, and the purchase or other acquisition, of Units or options, rights or warrants relating to Units;

 

(u) the registration of any offer, issuance, sale or resale of Units or other securities or any Series issued or to be issued by the Company under the Securities Act and any other applicable securities laws (including any resale of Units or other securities by Members or other security holders);

 

(v) the execution and delivery of agreements with Affiliates of the Company or other Persons to render services to the Company or any Series;

 

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(w) the adoption, amendment, and repeal of the Allocation Policy;

 

(x) the selection of auditors for the Company and any Series;

 

(y) the selection of any transfer agent, depositor, Alternative Trading System, broker, dealer, custodian, escrow agent or other service provider for any securities of the Company or any Series, and the entry into such agreements and provision of such other information as shall be required for such Person to perform its applicable functions; and

 

(z) unless otherwise provided in this Agreement or the Series Designation, the calling of a vote of the Economic Members as to any matter to be voted on by all Economic Members of the Company or if a particular Series, as applicable.

 

(aa) No Economic Member, by virtue of its status as such, shall have any management power over the business and affairs of the Company or any Series or actual or apparent authority to enter into, execute or deliver contracts on behalf of, or to otherwise bind, the Company or any Series.

 

5.2 Determinations by the Manager. In furtherance of the authority granted to the Manager pursuant to Section 5.1, the determination as to any of the following matters, made in good faith by or pursuant to the direction of the Manager consistent with this Agreement, shall be final and conclusive and shall be binding upon the Company and each Series and every holder of Units:  

 

(a) the amount of Free Cash Flow of any Series for any period and the amount of assets at any time legally available for the payment of distributions on Units of any Series;

 

(b) the amount of paid in surplus, net assets, other surplus, annual or other cash flow, funds from operations, net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged);

 

(c) any interpretation of the terms, preferences, conversion, or other rights, voting powers or rights, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of any Series;

 

(d) the number of Units within a Series;

 

(e) any matter relating to the acquisition, holding and disposition of any assets by any Series;

 

(f) the evaluation of any competing interests among the Series and the resolution of any conflicts of interests among the Series;

 

(g) each of the matters set forth in Section 5.1(a) through Section 5.1(aa); or

 

(h) any other matter relating to the business and affairs of the Company or any Series or required or permitted by applicable law, this Agreement or otherwise to be determined by the Manager.

 

5.3 Delegation. The Manager may delegate to any Person or Persons any of the powers and authority vested in it hereunder and may engage such Person or Persons to provide administrative, compliance, technological and accounting services to the Company, on such terms and conditions as it may consider appropriate. 

 

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5.4 Exculpation, Indemnification, Advances, and Insurance.

 

(a) Subject to other applicable provisions of this Article V, the Indemnified Persons shall not be liable to the Company or any Series for any acts or omissions by any of the Indemnified Persons arising from the exercise of their rights or performance of their duties and obligations in connection with the Company or any Series, this Agreement or any investment made or held by the Company or any Series, including with respect to any acts or omissions made while serving at the request of the Company or on behalf of any Series as an officer, director, member, partner, fiduciary or trustee of another Person, other than such acts or omissions that have been determined in a final, non-appealable decision of a court of competent jurisdiction to constitute fraud, willful misconduct or gross negligence. The Indemnified Persons shall be indemnified by the Company and, to the extent Expenses and Liabilities are associated with any Series, each such Series, in each case, to the fullest extent permitted by law, against all expenses and liabilities (including judgments, fines, penalties, interest, amounts paid in settlement with the approval of the Company and counsel fees and disbursements on a solicitor and client basis) (collectively, “Expenses and Liabilities”) arising from the performance of any of their duties or obligations in connection with their service to the Company or each such Series or this Agreement, or any investment made or held by the Company, each such Series, including in connection with any civil, criminal, administrative, investigative or other action, suit or proceeding to which any such Person may hereafter be made party by reason of being or having been a manager of the Company or such Series under Delaware law, an Officer of the Company or associated with such Series, or an officer, director, member, partner, fiduciary or trustee of another Person, provided that this indemnification shall not cover Expenses and Liabilities that arise out of the acts or omissions of any Indemnified Party that have been determined in a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to have resulted primarily from such Indemnified Persons fraud, willful misconduct or gross negligence. Without limitation, the foregoing indemnity shall extend to any liability of any Indemnified Person, pursuant to a loan guaranty or otherwise, for any indebtedness of the Company or any Series (including any indebtedness which the Company or any Series has assumed or taken subject to), and the Manager or the Officers are hereby authorized and empowered, on behalf of the Company or any Series, to enter into one or more indemnity agreements consistent with the provisions of this Section 5.4(a) in favor of any Indemnified Person having or potentially having liability for any such indebtedness. It is the intention of this Section 5.4(a) that the Company and each applicable Series indemnify each Indemnified Person to the fullest extent permitted by law, provided that this indemnification shall not cover Expenses and Liabilities that arise out of the acts or omissions of any Indemnified Party that have been determined in a final, non-appealable decision of a court, arbitrator or other tribunal of competent jurisdiction to have resulted primarily from such Indemnified Persons fraud, willful misconduct or gross negligence.

 

(b) The provisions of this Agreement, to the extent they restrict the duties and liabilities of an Indemnified Person otherwise existing at law or in equity, including Section 5.6, are agreed by each Member to modify such duties and liabilities of the Indemnified Person to the maximum extent permitted by law.

 

(c) Any indemnification under this Section 5.4 (unless ordered by a court) shall be made by each applicable Series. To the extent, however, that an Indemnified Person has been successful on the merits or otherwise in defense of any action, suit or proceeding described above, or in defense of any claim, issue, or matter therein, such Indemnified Person shall be indemnified against expenses (including attorney fees) actually and reasonably incurred by such Indemnified Person in connection therewith.

 

(d) Any Indemnified Person may apply to the Court of Chancery of the State of Delaware or any other court of competent jurisdiction in the State of Delaware for indemnification to the extent otherwise permissible under Section 5.4(a). The basis of such indemnification by a court shall be a determination by such court that indemnification of the Indemnified Person is proper in the circumstances because such Indemnified Person has met the applicable standards of conduct set forth in Section 5.4(a). Neither a contrary determination in the specific case under Section 5.4(c) nor the absence of any determination thereunder shall be a defense to such application or create a presumption that the Indemnified Person seeking indemnification has not met any applicable standard of conduct. Notice of any application for indemnification pursuant to this Section 5.4(d) shall be given to the Company promptly upon the filing of such application. If successful, in whole or in part, the Indemnified Person seeking indemnification shall also be entitled to be paid the expense of prosecuting such application.

 

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(e) To the fullest extent permitted by law, expenses (including attorney fees) incurred by an Indemnified Person in defending any civil, criminal, administrative or investigative action, suit or proceeding may, at the option of the Manager, be paid by each applicable Series in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by each such Series as authorized in this Section 5.4.

 

(f) The indemnification and advancement of expenses provided by or granted pursuant to this Section 5.4 shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under this Agreement, or any other agreement (including without limitation any Series Designation), vote of Members or otherwise, and shall continue as to an Indemnified Person who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and administrators of the Indemnified Person unless otherwise provided in a written agreement with such Indemnified Person or in the writing pursuant to which such Indemnified Person is indemnified, it being the policy of the Company that indemnification of the persons specified in Section 5.4(a) shall be made to the fullest extent permitted by law. The provisions of this Section 5.4(f) shall not be deemed to preclude the indemnification of any person who is not specified in Section 5.4(a) but whom the Company or an applicable Series has the power or obligation to indemnify under the provisions of the Delaware Act.

 

(g) The Company and any Series may, but shall not be obligated to, purchase and maintain insurance on behalf of any Person entitled to indemnification under this Section 5.4 against any liability asserted against such Person and incurred by such Person in any capacity to which they are entitled to indemnification hereunder, or arising out of such Persons status as such, whether or not the Company would have the power or the obligation to indemnify such Person against such liability under the provisions of this Section 5.4.

 

(h) The indemnification and advancement of expenses provided by, or granted pursuant to, this Section 5.4 shall, unless otherwise provided when authorized or ratified, inure to the benefit of the heirs, executors and administrators of any person entitled to indemnification under this Section 5.4.

 

(i) The Company and any Series may, to the extent authorized from time to time by the Manager, provide rights to indemnification and to the advancement of expenses to employees and agents of the Company or such Series.

 

(j) If this Section 5.4 or any portion of this Section 5.4 shall be invalidated on any ground by a court of competent jurisdiction each applicable Series shall nevertheless indemnify each Indemnified Person as to expenses (including attorney’s fees), judgments, fines, and amounts paid in settlement with respect to any action, suit, proceeding or investigation, whether civil, criminal or administrative, including a grand jury proceeding or action or suit brought by or in the right of the Company, to the full extent permitted by any applicable portion of this Section 5.4 that shall not have been invalidated.

 

(k) Each of the Indemnified Persons may, in the performance of his, her or its duties, consult with legal counsel, accountants, and other experts, and any act or omission by such Person on behalf of the Company or any Series in furtherance of the interests of the Company or such Series in good faith in reliance upon, and in accordance with, the advice of such legal counsel, accountants or other experts will be full justification for any such act or omission, and such Person will be fully protected for such acts and omissions; provided that such legal counsel, accountants, or other experts were selected with reasonable care by or on behalf of such Indemnified Person.

 

(l) An Indemnified Person shall not be denied indemnification in whole or in part under this Section 5.4 because the Indemnified Person had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

 

(m) The Manager shall, in the performance of its duties, be fully protected in relying in good faith upon the records of the Company and any Series and on such information, opinions, reports or statements presented to the Company by any of the Officers or employees of the Company or associated with any Series, or by any other Person as to matters the Manager reasonably believes are within such other Persons professional or expert competence.

 

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(n) Any amendment, modification or repeal of this Section 5.4 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the liability of or other rights of any indemnitee under this Section 5.4 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted and provided such Person became an indemnitee hereunder prior to such amendment, modification or repeal.

 

5.5 Duties of Officers.

 

(a) Except as set forth in Section 5.4 and 5.6, as otherwise expressly provided in this Agreement or required by the Delaware Act, (i) the duties and obligations owed to the Company by the Officers shall be the same as the duties and obligations owed to a corporation organized under the DGCL by its officers, and (ii) the duties and obligations owed to the Members by the Officers shall be the same as the duties and obligations owed to the stockholders of a corporation under the DGCL by its officers.

 

(b) The Manager shall have the right to exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it thereunder either directly or by or through the duly authorized Officers of the Company or associated with a Series, and the Manager shall not be responsible for the misconduct or negligence on the part of any such Officer duly appointed or duly authorized by the Manager in good faith.

 

5.6 Standards of Conduct and Modification of Duties of the Manager. Notwithstanding anything to the contrary herein or under any applicable law, including, without limitation, Section 18-1101(c) of the Delaware Act, the Manager, in exercising its rights hereunder in its capacity as the Manager of the Company, may consider such interests and factors as it deems appropriate, including its own interests. The Manager shall not owe any fiduciary duty to the Company, any Series, any Economic Member, or any other Person, including any fiduciary duty associated with self-dealing or corporate opportunities, all of which are hereby expressly waived to the fullest extent permitted by law; provided, that nothing in this Section shall eliminate or limit the implied contractual covenant of good faith and fair dealing owed by the Manager under applicable law. Additionally, the Manager shall also comply with its obligation under Section 18-215 of the Delaware Act to treat the assets and liabilities of each Series as separate and distinct from the assets and liabilities of the Company and of any other Series. This Section shall not in any way reduce or otherwise limit the specific obligations of the Manager expressly provided in this Agreement or in any other agreement with the Company or any Series. 

 

5.7 Reliance by Third Parties. Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Company or any Series shall be entitled to assume that the Manager and any Officer of the Company or any Series has full power and authority to encumber, sell or otherwise use in any manner any and all assets of the Company or such Series and to enter into any contracts on behalf of the Company or such Series, and such Person shall be entitled to deal with the Manager or any Officer as if it were the Company’s or such Series sole party in interest, both legally and beneficially. Each Economic Member hereby waives, to the fullest extent permitted by law, any and all defenses or other remedies that may be available against such Person to contest, negate or disaffirm any action of the Manager or any Officer in connection with any such dealing. In no event shall any Person dealing with the Manager or any Officer or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the Manager or any Officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Company or any Series by the Manager or any Officer or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this Agreement were in full force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Company or any Series and (c) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Company or the applicable Series. 

 

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ARTICLE VI.
FEES AND EXPENSES

 

6.1 Offering Expenses Each Series shall bear the following fees, costs, and expenses incurred in connection with any Initial Offering and the execution of any Brand Advisory Agreement, except as otherwise provided below: 

 

(a) Brokerage Fee;

 

(b) Offering Expenses;

 

(c) Negotiation Fee.

 

If an Offering is unsuccessful, all Abort Costs shall be borne by the Manager. The Manager may, at its discretion and in writing, assume any such expenses otherwise allocable to a Series.

 

6.2 Operating Expenses. Each Series shall be responsible for all Operating Expenses incurred in the ordinary course of its business, including the Maintenance Fee and all costs and expenses related to the termination and winding up of such Series in accordance with this Agreement and the applicable Series Designation. 

 

6.3 Excess Operating Expenses; Reimbursement Obligations If a Series lacks sufficient cash reserves or revenues to meet its Operating Expenses, the Manager may, in its sole discretion: 

 

(a) Issue additional Units in such Series in accordance with Section 3.4; and/or

 

(b) Pay such excess Operating Expenses and not seek reimbursement; and/or

 

(c) Enter into an agreement pursuant to which the Manager loans to the Series an amount equal to the remaining excess Operating Expenses (the “Operating Expense Reimbursement Obligation(s)”). The Manager, in its sole discretion, may impose a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Code)) on any Operating Expense Reimbursement Obligation. The Operating Expense Reimbursement Obligation(s) shall become repayable when cash becomes available for such purpose in accordance with Article VII.

 

6.4 Allocation of Expenses. Any Brokerage Fee, Offering Expenses, Issuance Fee, and Operating Expenses shall be allocated by the Manager in accordance with the Allocation Policy. 

 

6.5 Overhead of the Manager. The Manager shall pay, and the Economic Members shall not bear, the cost of: (a) any annual administration fee to the Broker or such other amount as is agreed between the Broker and the Manager from time to time; (b) all ordinary overhead and administrative expenses of the Manager, including, without limitation, rent, utilities, insurance, office supplies, equipment, payroll taxes, travel, entertainment, salaries, and bonuses, but excluding any Operating Expenses; (c) any Abort Costs; and (d) such other amounts in respect of any Series as the Manager shall agree in writing or as explicitly set forth in any Offering Document.  

 

6.6 Termination Fees. Each Series shall be responsible for its proportionate share of any costs and expenses related to the termination and winding up of the Company, as allocated in accordance with Article XI.

 

ARTICLE VII.
DISTRIBUTIONS

 

7.1 Free Cash Flow. The Manager shall determine, on the periodic basis set forth in each Series Designation, the Free Cash Flow, if any, available for distribution to Members of that Series. “Free Cash Flow” means, for any period: (a) The net cash generated by the Series from its operations (including revenue from its Brand Advisory Agreement), (b) Less any accrued and unpaid Operating Expenses of the Series for such period, (c) Less any Operating Expense Reimbursement Obligations, if any, (d) Less such reserves as the Manager may deem appropriate for the Series’ working capital and future expenses or liabilities. 

 

7.2 Distributions. Subject to Section 7.3, Article XI, any Preferred Unit Designation, each applicable Series Designation, and the availability of Free Cash Flow, the Manager shall cause each Series to make distributions to its Economic Members in accordance with the applicable Series Designation. Unless otherwise provided, distributions of Free Cash Flow shall be made pro rata in accordance with Members’ respective Units.

 

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7.3 Limitations on Distributions. No distribution shall be made if, after giving effect thereto, the Company or the applicable Series would not be able to pay its debts as they become due in the usual course of business, or if the net assets of the Series would be less than zero. The Manager may defer, adjust, or prohibit any distribution if necessary to comply with applicable law, contractual obligations, or to avoid adverse tax consequences. No distribution shall be made for the specific purpose of withdrawing any Member’s capital contribution. 

 

7.4 Application of Amounts upon the Liquidation of a Series. Subject to Section 7.3 and Article XI and any Preferred Unit Designation, any amounts available for distribution following the liquidation of a Series, net of any fees, costs and liabilities (as determined by the Manager in its sole discretion), shall be applied and distributed in accordance with the order of priority specified in Section 7.2.  

 

7.5 Distributions in Kind. Distributions in kind of the entire or part of a Series Asset to Members are prohibited. 

 

ARTICLE VIII.
BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

8.1 Records and Accounting.

 

(a) The Manager shall keep or cause to be kept at the principal office of the Company or such other place as determined by the Manager appropriate books and records with respect to the business of the Company and each Series, including all books and records necessary to provide to the Economic Members any information required to be provided pursuant to this Agreement or applicable law. Any books and records maintained by or on behalf of the Company or any Series in the regular course of its business, including the record of the Members, books of account and records of Company or Series proceedings, may be kept in such electronic form as may be determined by the Manager; provided, that the books and records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Company shall be maintained, for tax and financial reporting purposes, on an accrual basis in accordance with U.S. GAAP, unless otherwise required by applicable law or other regulatory disclosure requirement.

 

(b) Each Member shall have the right, upon reasonable demand for any purpose reasonably related to the Members Unit as a member of the Company (as reasonably determined by the Manager) to such information pertaining to the Company as a whole and to each Series in which such Member has an Unit, as provided in Section 18-305 of the Delaware Act; provided, that prior to such Member having the ability to access such information, the Manager shall be permitted to require such Member to enter into a confidentiality agreement in form and substance reasonably acceptable to the Manager. For the avoidance of doubt, except as may be required pursuant to Article X, a Member shall only have access to the information (including any Series Designation) referenced with respect to any Series in which such Member has an Unit and not to any Series in which such Member does not have an Unit.

 

(c) Except as otherwise set forth in the applicable Series Designation, within 120 calendar days after the end of the fiscal year and 90 calendar days after the end of the semi-annual reporting date, the Manager shall use its commercially reasonable efforts to circulate to each Economic Member electronically by e-mail or made available via the Platform:

 

(i) a financial statement of such Series prepared in accordance with U.S. GAAP, which includes a balance sheet, profit and loss statement and a cash flow statement; and

 

(ii) confirmation of the number of Units in each Series Outstanding as of the end of the most recent fiscal year; provided, that notwithstanding the foregoing, if the Company or any Series is required to disclose financial information pursuant to the Securities Act or the Exchange Act (including without limitations periodic reports under the Exchange Act or under Rule 257 under Regulation A of the Securities Act), then compliance with such provisions shall be deemed compliance with this Section 8.1(c) and no further or earlier financial reports shall be required to be provided to the Economic Members of the applicable Series with such reporting requirement.

 

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8.2 Fiscal Year. Unless otherwise provided in a Series Designation, the fiscal year for tax and financial reporting purposes of each Series shall be a calendar year ending December 31 unless otherwise required by the Code. The fiscal year for financial reporting purposes of the Company shall be a calendar year ending December 31.

 

8.3 Revenue Share Trust Reporting. In the event a Revenue Share Trust is established or post-dissolution receipts are administered under this Agreement and a Brand Advisory Agreement, the Manager shall include in the applicable Series’ financial reporting summaries of receipts and disbursements related thereto consistent with the timing and scope of reporting provided herein and any applicable regulatory reporting obligations. 

 

ARTICLE IX.
TAX MATTERS

 

The Company intends to be taxed as a partnership or a disregarded entity for federal income tax purposes and will not make any election or take any action that could cause it to be treated as an association taxable as a corporation under Subchapter C of the Code. The Company will make an election on IRS Form 8832 for each Series to be treated as an association taxable as a corporation under Subchapter C of the Code and not as a partnership under Subchapter K of the Code.

 

ARTICLE X.
REMOVAL OF THE MANAGER

 

Economic Members of the Company acting by way of a Super Majority Vote may elect to remove the Manager at any time if the Manager is found by a non-appealable judgment of a court of competent jurisdiction to have committed fraud in connection with a Series or the Company and which has a material adverse effect on the Company. The Manager shall call a meeting of all of the Economic Members of the Company within 30 calendar days of such final non-appealable judgment of a court of competent jurisdiction, at which the Economic Members may (i) by Super Majority Vote, remove the Manager of the Company and each relevant Series in accordance with this Article X and (ii) if the Manager is so removed, by a plurality, appoint a replacement Manager or approve the liquidation, dissolution and termination of the Company and each of the Series in accordance with Article XI. If the Manager fails to call a meeting as required by this Article X, then any Economic Member shall have the ability to demand a list of all Record Holders of the Company pursuant to Section 8.1(b) and to call a meeting at which such a vote shall be taken. In the event of its removal, the Manager shall be entitled to receive all amounts that have accrued and are then currently due and payable to it pursuant to this Agreement but shall forfeit its right to any future distributions. Prior to its admission as a Manager of any Series, any replacement Manager shall acquire the Units held by the departing Manager in such Series for fair market value and in cash immediately payable on the Transfer of such Units. For the avoidance of doubt, if the Manager is removed as Manager of the Company it shall also cease to be Manager of each of the Series.

 

ARTICLE XI.
DISSOLUTION, TERMINATION AND LIQUIDATION

 

11.1 Dissolution and Termination.

 

(a) The Company shall not be dissolved by the admission of Substitute Economic Members or Additional Economic Members or the withdrawal of a transferring Member following a Transfer associated with any Series. The Company shall dissolve, and its affairs shall be wound up, upon:

 

(i)an election to dissolve the Company by the Manager;

 

(ii)the sale, exchange, or other disposition of all or substantially all of the assets and properties of all Series (which shall include the obsolesce of the Series Assets) and the subsequent election to dissolve the Company by the Manager;

 

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(iii)the entry of a decree of judicial dissolution of the Company pursuant to the provisions of the Delaware Act;

 

(iv)at any time that there are no Members of the Company, unless the business of the Company is continued in accordance with the Delaware Act; or

 

(v)a vote by the Economic Members to dissolve the Company following the for-cause removal of the Manager in accordance with Article X

 

(b) A Series shall not be terminated by the admission of Substitute Economic Members or Additional Economic Members or the withdrawal of a transferring Member following a Transfer associated with any Series. Unless otherwise provided in the Series Designation, a Series shall terminate, and its affairs shall be wound up, upon:

 

(i)the dissolution of the Company pursuant to Section 11.1(a);

 

(ii)an event set forth as an event of termination of such Series in the Series Designation establishing such Series.

 

(b) The dissolution of the Company or any Series pursuant to Section 18-801(a)(3) of the Delaware Act shall be strictly prohibited.

 

11.2 Liquidator. Upon dissolution of the Company or termination of any Series, the Manager shall act as Liquidator, unless the Manager selects one or more Persons to act as Liquidator. In the case of a dissolution of the Company, (a) the Liquidator shall be entitled to receive compensation for its services as Liquidator; (b) the Liquidator shall agree not to resign at any time without 15 days prior notice to the Manager and may be removed at any time by the Manager; and (c) upon dissolution, death, incapacity, removal or resignation of the Liquidator, a successor and substitute Liquidator (who shall have and succeed to all rights, powers and duties of the original Liquidator) shall within 30 days be appointed by the Manager. The right to approve a successor or substitute Liquidator in the manner provided herein shall be deemed to refer also to any such successor or substitute Liquidator approved in the manner herein provided. Except as expressly provided in this Article XI, the Liquidator approved in the manner provided herein shall have and may exercise, without further authorization or consent of any of the parties hereto, all of the powers conferred upon the Manager under the terms of this Agreement (but subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers) necessary or appropriate to carry out the duties and functions of the Liquidator hereunder for and during the period of time required to complete the winding up and liquidation of the Company as provided for herein. In the case of a termination of a Series, other than in connection with a dissolution of the Company, the Manager shall act as Liquidator. 

 

11.3 Liquidation of a Series. In connection with the liquidation of a Series, whether as a result of the dissolution of the Company or the termination of such Series, the Liquidator shall proceed to dispose of the assets of such Series, discharge its liabilities, and otherwise wind up its affairs in such manner and over such period as determined by the Liquidator, subject to Sections 18-215 and 18-804 of the Delaware Act, the terms of any Series Designation and the following:  

 

(a) Subject to Section 11.3(c), the assets may be disposed of by public or private sale on such terms as the Liquidator may determine. The Liquidator may defer liquidation for a reasonable time if it determines that an immediate sale or distribution of all or some of the assets would be impractical or would cause undue loss to the Members associated with such Series;

 

(b) Liabilities of each Series include amounts owed to the Liquidator as compensation for serving in such capacity (subject to the terms of Section 11.2) as well as any Outstanding Operating Expense Reimbursement Obligations and any other amounts owed to Members associated with such Series otherwise than in respect of their distribution rights under Article VII. With respect to any liability that is contingent, conditional or unmatured or is otherwise not yet due and payable, the Liquidator shall either settle such claim for such amount as it thinks appropriate or establish a reserve of Free Cash Flows or other assets to provide for its payment. When paid, any unused portion of the reserve shall be applied to other liabilities or distributed as additional liquidation proceeds; and

 

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(c) Subject to the terms of any Series Designation (including, without limitation, the preferential rights, if any, of holders of any other class of Units of the applicable Series), all property and all Free Cash Flow in excess of that required to discharge liabilities as provided in Section 11.3(b) shall be distributed to the holders of the Units of the Series on an equal per Unit basis.

 

11.4 Cancellation of Certificate of Formation. In the case of a dissolution of the Company, upon the completion of the distribution of all Free Cash Flow and property in connection the termination of all Series (other than the reservation of amounts for payments in respect of the satisfaction of liabilities of the Company or any Series), the Certificate of Formation and all qualifications of the Company as a foreign limited liability company in jurisdictions other than the State of Delaware shall be canceled and such other actions as may be necessary to terminate the Company shall be taken by the Liquidator or the Manager, as applicable. 

 

11.5 Return of Contributions. None of any Member, the Manager or any Officer of the Company or associated with any Series or any of their respective Affiliates, officers, directors, members, shareholders, employees, managers, partners, controlling persons, agents or independent contractors will be personally liable for, or have any obligation to contribute or loan any monies or property to the Company or any Series to enable it to effectuate, the return of the Capital Contributions of the Economic Members associated with a Series, or any portion thereof, it being expressly understood that any such return shall be made solely from Series Assets. 

 

11.6 Waiver of Partition. To the maximum extent permitted by law, each Member hereby waives any right to partition of the Company or Series Assets.

 

11.7 Revenue Share Trust. If, in accordance with any Brand Advisory Agreement, payments of the Brand Percentage are required to be made after termination to a Revenue Share Trust upon a Client’s post-termination resumption of the Principal Business, the Manager is authorized to establish such trust and to serve as trustee for the benefit of the former Members of the applicable Series. Disbursements from such trust, net of any trust operating costs and expenses, shall be made on the same terms, timing, methodology, and waterfall as provided in such Brand Advisory Agreement. The Manager shall have authority to receive payments, direct payors, keep records, and provide reporting to beneficiaries consistent with this Agreement and the applicable Brand Advisory Agreement. 

 

ARTICLE XII.
AMENDMENT OF AGREEMENT, SERIES DESIGNATION

 

12.1 General. Except as provided in Section 12.2, the Manager may amend any of the terms of this Agreement or any Series Designation as it determines in its sole discretion and without the consent of any of the Economic Members. Without limiting the foregoing, the Manager, without the approval of any Economic Member, may amend any provision of this Agreement or any Series Designation, and execute, swear to, acknowledge, deliver, file, and record whatever documents may be required in connection therewith, to reflect: 

 

(a) a change that the Manager determines to be necessary or appropriate in connection with any action taken or to be taken by the Manager pursuant to the authority granted in Article V hereof;

 

(b) a change in the name of the Company, the location of the principal place of business of the Company, the registered agent of the Company or the registered office of the Company;

 

(c) the admission, substitution, withdrawal, or removal of Members in accordance with this Agreement, and any Series Designation;

 

(d) a change that the Manager determines to be necessary or appropriate to qualify or continue the qualification of the Company as a limited liability company under the laws of any state or to ensure that each Series will continue to be taxed as an entity for U.S. federal income tax purposes;

 

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(e) a change that the Manager determines to be necessary or appropriate to satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any federal or state agency or judicial authority or contained in any federal or state statute (including the Delaware Act);

 

(f) a change that the Manager determines to be necessary, desirable or appropriate to facilitate the trading of the Units (including, without limitation, the division of any class or classes or series of Outstanding Units into different classes or Series to facilitate uniformity of tax consequences within such classes or Series) or comply with any rule, regulation, guideline or requirement of any National Securities Exchange, over-the-counter market, or Alternative Trading System on which Units are or will be listed for trading, compliance with any of which the Manager deems to be in the best interests of the Company and the Members;

 

(g) a change that is required to effect the intent expressed in any Offering Document or the intent of the provisions of this Agreement or any Series Designation or is otherwise contemplated by this Agreement or any Series Designation;

 

(h) a change in the fiscal year or taxable year of the Company or any Series and any other changes that the Manager determines to be necessary or appropriate;

 

(i) an amendment that the Manager determines, based on the advice of counsel, to be necessary or appropriate to prevent the Company, the Manager, any Officers or any trustees or agents of the Company from in any manner being subjected to the provisions of the Investment Company Act, the Investment Advisers Act, or plan asset regulations adopted under ERISA, regardless of whether such are substantially similar to plan asset regulations currently applied or proposed by the United States Department of Labor;

 

(j) an amendment that the Manager determines to be necessary or appropriate in connection with the establishment or creation of additional Series pursuant to Section 3.3 or the authorization, establishment, creation or issuance of any class or series of Units of any Series pursuant to Section 3.4 and the admission of Additional Economic Members;

 

(k) any other amendment other than an amendment expressly requiring consent of the Economic Members as set forth in Section 12.2; and

 

(l) any other amendments substantially similar to the foregoing.

 

12.2 Certain Amendment Requirements. Notwithstanding the provisions of Section 12.1, no amendment to this Agreement shall be made without the consent of the Economic Members holding of a majority of the Outstanding Units, that: 

 

(a) decreases the percentage of Outstanding Units required to take any action hereunder;

 

(b) materially adversely affects the rights of any of the Economic Members (including adversely affecting the holders of any particular Series of Units as compared to holders of other series of Units);

 

(c) modifies Section 11.1(a) or gives any Person the right to dissolve the Company; or

 

(d) modifies the term of the Company.

 

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12.3 Amendment Approval Process. If the Manager desires to amend any provision of this Agreement or any Series Designation, other than as permitted by Section 12.1, then it shall first adopt a resolution setting forth the amendment proposed, declaring its advisability, and then call a meeting of the Members entitled to vote in respect thereof for the consideration of such amendment. Amendments to this Agreement or any Series Designation may be proposed only by or with the consent of the Manager. Such meeting shall be called and held upon notice in accordance with Article XIII of this Agreement. The notice shall set forth such amendment in full or a brief summary of the changes to be effected thereby, as the Manager shall deem advisable. At the meeting, a vote of Members entitled to vote thereon shall be taken for and against the proposed amendment. A proposed amendment shall be effective upon its approval by the affirmative vote of the holders of not less than a majority of the Units of all Series then Outstanding, voting together as a single class, unless a greater percentage is required under this Agreement or by Delaware law. The Company shall deliver to each Member prompt notice of the adoption of every amendment made to this Agreement or any Series Designation pursuant to this Article XII. 

 

ARTICLE XIII.
MEMBER MEETINGS

 

13.1 Meetings. The Company shall not be required to hold an annual meeting of the Members. The Manager and only the Manager may, whenever it deems necessary, convene meetings of the Company or any Series. The non-receipt by any Member of a notice convening a meeting shall not invalidate the proceedings at that meeting.  

 

13.2 Quorum. No business shall be transacted at any meeting unless a quorum of Members is present at the time when the meeting proceeds to business. In respect of meetings of the Company, Members holding thirty three percent (33%) of the Outstanding Units, and in respect of meetings of any Series, Members holding thirty three percent (33%) of the Outstanding Units in such Series, present in person or by proxy shall be a quorum. In the event a meeting is not quorate, the Manager may adjourn or cancel the meeting, as it determines in its sole discretion. 

 

13.3 Chairman. Any designee of the Manager shall preside as chairman of any meeting of the Company or any Series. 

 

13.4 Voting Rights. Subject to the provisions of any class or series of Units of any Series then Outstanding, the Members shall be entitled to vote only on those matters provided for under the terms of this Agreement. 

 

13.5 Manager Approval. Other than as provided for in Article X, the submission of any action of the Company or a Series to Members for their consideration shall first be approved by the Manager. 

 

13.6 Action By Members without a Meeting. Any action required or permitted to be taken by the holders of the Units may be taken without a meeting by the written consent of such holders or Members entitled to cast a sufficient number of votes to approve the matter as required by statute or this Agreement, as the case may be.  

 

ARTICLE XIV.
CONFIDENTIALITY

 

14.1 Confidentiality Obligations. All information contained in the accounts and reports prepared in accordance with Article VIII and any other information disclosed to an Economic Member under or in connection with this Agreement is confidential and non-public and each Economic Member undertakes to treat that information as confidential information and to hold that information in confidence. No Economic Member shall, and each Economic Member shall ensure that every person connected with or associated with that Economic Member shall not, disclose to any person or use to the detriment of the Company, any Series, any Economic Member or any Series Assets any confidential information which may have come to its knowledge concerning the affairs of the Company, any Series, any Economic Member, any Series Assets or any potential Series Assets, and each Economic Member shall use any such confidential information exclusively for the purposes of monitoring and evaluating its investment in the Company.  

 

14.2 Exempted Information. The obligations set out in Section 14.1 shall not apply to any information which: 

 

(a) is public knowledge and readily publicly accessible as of the date of such disclosure;

 

(b) becomes public knowledge and readily publicly accessible, other than because of a breach of this Article XIV; or

 

(c) has been publicly filed with the SEC.

 

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14.3 Permitted Disclosures. The restrictions on disclosing confidential information set out in Section 14.1 shall not apply to the disclosure of confidential information by an Economic Member: 

 

(a) to any person, with the prior written consent of the Manager (which may be given or withheld in the Managers sole discretion);

 

(b) if required by law, rule or regulation applicable to the Economic Member (including without limitation disclosure of the tax treatment or consequences thereof), or by any Governmental Entity having jurisdiction over the Economic Member, or if requested by any Governmental Entity having jurisdiction over the Economic Member, but in each case only if the Economic Member (unless restricted by any relevant law or Governmental Entity): (i) provides the Manager with reasonable advance notice of any such required disclosure; (ii) consults with the Manager prior to making any disclosure, including in respect of the reasons for and content of the required disclosure; and (iii) takes all reasonable steps permitted by law that are requested by the Manager to prevent the disclosure of confidential information (including (a) using reasonable endeavors to oppose and prevent the requested disclosure and (b) returning to the Manager any confidential information held by the Economic Member or any person to whom the Economic Member has disclosed that confidential information in accordance with this Section 14.3(b)); or

 

(c) to its trustees, officers, directors, employees, controlled Affiliates, financing sources, prospective financing sources, legal advisers, accountants, investment managers, investment advisers, other professional consultants, and customary investor representatives who would customarily have access to such information in the normal course of performing their duties, but subject to the condition that each such person is informed of the confidential nature of the information and is bound either by professional duties of confidentiality or by an obligation of confidentiality in respect of the use and dissemination of the information no less protective in all material respects than this Article XIV;

 

(d) to any transfer agent, Alternative Trading System, broker, dealer, custodian, escrow agent, administrator, Platform administrator, compliance provider, tax service provider, other required service provider, or any participant in an Alternative Trading System, in each case to the extent reasonably necessary to administer an Offering, Transfer, ATS Transfer, settlement, custody, investor eligibility review, investment limit review, tax reporting, regulatory compliance, anti-money laundering, sanctions, or books and records process, provided that each recipient is bound by professional duties of confidentiality, contractual confidentiality obligations, applicable law, or platform or trading-system rules restricting use and disclosure of such information; or

 

(e) with respect to a Client’s uncured material payment default or other material breach under a Brand Advisory Agreement, including the Client’s identity and the nature of the default, in any filings, reports, or public statements as permitted or required by such Brand Advisory Agreement and applicable law or regulation; provided that any notice and cure requirements in such Brand Advisory Agreement have been observed.

 

14.4 Protective Orders and Injunctive Relief. Nothing in this Agreement shall be construed as prohibiting or limiting the right of the Manager, on behalf of the Company or any Series, to seek or obtain a protective order, temporary restraining order, preliminary or permanent injunction, or any other form of equitable relief from any court of competent jurisdiction to prevent the threatened or actual disclosure, misuse, or unauthorized dissemination of confidential information (as described in Article XIV) by any Economic Member or any person acting on their behalf. The rights and remedies of the Manager under this Section are in addition to, and not in limitation of, any other rights or remedies available at law or in equity.

 

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ARTICLE XV.
GENERAL PROVISIONS

 

15.1 Addresses and Notices.

 

(a) Any notice to be served in connection with this Agreement shall be served in writing (which, for the avoidance of doubt, shall include e-mail) and any notice or other correspondence under or in connection with this Agreement shall be delivered to the relevant party at the address given in this Agreement (or, in the case of an Economic Member, in its Form of Adherence) or to such other address as may be notified in writing for the purposes of this Agreement to the party serving the document and that appears in the books and records of the relevant Series. The Company may make transmissions by electronic means and may also publish notices or reports on a secure electronic application to which all Members have access (including without limitation the Platform or any successor thereto), and any such transmission or publication shall constitute a valid method of serving notices under this Agreement if made in accordance with this Section 15.1.

 

(b) Except as otherwise expressly required by this Agreement or applicable law, any notice or correspondence shall be deemed to have been served as follows:

 

(i) in the case of hand delivery, on the date of delivery if delivered before 5:00 p.m. on a Business Day and otherwise at 9:00 a.m. on the first Business Day following delivery;

 

(ii) in the case of service by U.S. registered mail, on the third Business Day after the day on which it was posted;

 

(iii) in the case of e-mail, on the date of transmission if transmitted before 5:00 p.m. on a Business Day and otherwise at 9:00 a.m. on the first Business Day following transmission, provided that the sender does not receive an automated bounce-back or other system-generated notice of non-delivery; a read receipt or oral confirmation shall not be required unless this Agreement expressly requires confirmation for the applicable notice;

 

(iv) in the case of notices published on an electronic application, on the date of publication if published before 5:00 p.m. on a Business Day and otherwise at 9:00 a.m. on the first Business Day following publication, provided that the notice is posted in a manner reasonably designed to be accessible to the intended recipients and the Company sends an e-mail or other electronic alert of such posting to the intended recipients to the extent their contact information is available in the Company’s books and records.

 

(c) In proving service, it shall be sufficient to prove that the notice or correspondence was properly addressed and delivered, transmitted, posted or mailed in accordance with this Section 15.1, as applicable. If an e-mail is returned as undeliverable, a Platform is unavailable for a material period, or the Manager determines that the notice is material to voting rights, amendments, dissolution, liquidation, removal or replacement of the Manager, Transfer restrictions, default remedies, or any other matter that the Manager determines to be material to Members, the Company shall use a reasonable fallback method, which may include U.S. registered mail, recognized overnight courier, hand delivery, an alternate verified e-mail address, or posting on the Platform when available.

 

(d) Any notice to the Company (including any Series) shall be deemed given if received by any member of the Manager at the principal office of the Company designated pursuant to Section 2.3 or by any other method or address designated by the Manager for such purpose. The Manager and the Officers may rely and shall be protected in relying on any notice or other document from an Economic Member or other Person if believed by them to be genuine.

 

15.2 Further Action. The parties to this Agreement shall execute and deliver all documents, provide all information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement. 

 

15.3 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 

 

15.4 Integration. This Agreement, together with any applicable Series Designation, constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto. 

 

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15.5 Creditors. None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Company or any Series. 

 

15.6 Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant, duty, agreement, or condition. 

 

15.7 Counterparts. This Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing its signature hereto (which signature may be provided electronically) or, in the case of a Person acquiring a Unit, upon acceptance of its Form of Adherence. 

 

15.8 Mandatory Arbitration.

 

(a) To the fullest extent permitted by law, any dispute, claim, or controversy, whether in contract, tort, statute, or otherwise, arising out of or relating to this Agreement or the formation, governance, management, operations, capitalization, or dissolution of the Company or any Series, or the rights, duties, or relationships among the Company, any Series, the Manager, any Member, or any of their respective Affiliates in such capacities (each, a “Dispute”), shall be resolved exclusively by binding arbitration administered by the American Arbitration Association (“AAA”) under the Federal Arbitration Act, 9 U.S.C. §§ 1–16 (the “FAA”), and pursuant to the AAA Commercial Arbitration Rules then in effect, as modified by this Section 15.8. The arbitration shall be conducted by a single neutral arbitrator, unless all parties to the Dispute (the “Dispute Parties”) agree in writing to a three-arbitrator panel. The seat and venue of the arbitration shall be Wilmington, Delaware, and hearings may be conducted by remote means at the election of the arbitrator after conferring with the Dispute Parties. The arbitrator shall apply the law specified in Section 15.11, without regard to any conflicts-of-law rule that would result in the application of the law of any other jurisdiction, except to the extent preempted by the FAA. The Dispute Parties understand and agree that, by consenting to arbitration, they waive the right to a trial by jury and to litigate Disputes in court, except as expressly provided in this Section 15.8 and in Section 15.10. Notwithstanding the foregoing, a Dispute Party may seek temporary, preliminary, or emergency injunctive relief or other provisional remedies from a court of competent jurisdiction within the geographical boundaries of Delaware in aid of arbitration or to protect confidential information or intellectual property, and the filing of such an action shall not be deemed a waiver of arbitration. Judgment on any arbitral award may be entered in any state or federal court located within the geographical boundaries of Delaware that has jurisdiction over the Dispute Parties and the subject matter. The Dispute Parties acknowledge and agree that mandatory arbitration is a forum-selection mechanism and does not waive, diminish, limit, or disclaim any substantive rights or remedies under the U.S. federal securities laws or the rules and regulations promulgated thereunder. Consistent with applicable law and Supreme Court guidance, claims arising under the U.S. federal securities laws are arbitrable, and the arbitrator shall afford the same rights and remedies, including statutory damages, rescission, injunctive relief, attorneys’ fees, and costs where authorized, as would be available in a court of competent jurisdiction. To the extent that applicable law does not permit a particular federal securities law claim or remedy to be the subject of mandatory arbitration, such claim or remedy may be brought in a court of competent jurisdiction as provided in Section 15.10 and is not subject to arbitration to that extent. Nothing in this Section 15.8 shall be construed to waive compliance with the U.S. federal securities laws. Any question relating to the formation, existence, validity, scope, interpretation, or enforceability of this agreement to arbitrate, including the arbitrability of any Dispute and the interpretation or enforceability of the class, collective, and representative action waiver and the Mass Arbitration Protocol set forth below, shall be decided by the arbitrator and not by a court, except that a court of competent jurisdiction shall decide any issue that, as a matter of nonwaivable law, must be decided by a court. The arbitrator shall have authority to award any relief available under applicable law and in equity, including monetary damages; declaratory, injunctive, or other equitable relief; and attorneys’ fees and costs where authorized by statute or contract. Arbitrations shall proceed on an individual basis only. There shall be no class, collective, private attorney general, derivative on behalf of other Members, or other representative arbitration, and claims of two or more persons or entities shall not be joined, consolidated, or heard together in a single arbitration, except with the express written consent of all affected parties or as expressly permitted under Section 15.8(b). For the avoidance of doubt, the foregoing does not restrict the arbitrator’s ability to grant public injunctive relief where such relief is nonwaivable under applicable law and is sought for the benefit of a party to the arbitration. If a Dispute is filed that is substantively related to the management or operations of a particular Series, the arbitration shall be limited to that Series, the Company as necessary, the Manager, and the Members or other parties whose rights or obligations are directly implicated by that Dispute. No award against a Series shall bind or be enforceable against the assets of any other Series unless such other Series is a Dispute Party and is specifically found liable by the arbitrator.

 

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(b) In the event of twenty-five (25) or more substantially similar arbitration demands asserting related claims against the Company, any Series, or the Manager, and brought by or with the assistance or coordination of the same or overlapping counsel, law firms, or litigation funding entities, and filed within any rolling one hundred eighty (180) day period (a “Mass Arbitration Event”), the following Mass Arbitration Protocol shall apply in lieu of any contrary AAA rule. First, the AAA’s Mass Arbitration Supplementary Rules shall apply to the extent not inconsistent with this Section 15.8, and a Process Arbitrator may be appointed to administer threshold and procedural issues. Second, the Mass Arbitration Event shall be organized into tranches of no more than fifty (50) individual cases per tranche, with an initial bellwether tranche of up to ten (10) cases to proceed to merits hearings. The selection of cases in each tranche shall be made by the AAA using a random, neutral selection method after soliciting input from the Dispute Parties; if the AAA declines to do so, the Process Arbitrator shall conduct the selection. All non-tranche cases shall be stayed, and no filing, case management, or arbitrator fees for stayed cases shall be due or payable until those cases are placed into an active tranche. Third, upon issuance of final awards in the bellwether tranche, the Dispute Parties shall participate in good-faith, non-binding global mediation with a mutually agreed mediator or, failing agreement, a mediator appointed by the AAA. If settlement is not reached within sixty (60) days after the last bellwether award, additional tranches of up to fifty (50) cases each shall proceed sequentially, with periodic good-faith mediations after each tranche unless the Dispute Parties jointly agree otherwise or the Process Arbitrator determines that further mediation would be futile. Fourth, all applicable statutes of limitation and repose for stayed cases shall be tolled from the date of the demand’s filing with the AAA until the stay is lifted for that case, and any contractual limitation period in this Agreement is likewise tolled during the stay. Fifth, the arbitrator or Process Arbitrator shall have authority to modify tranche size, sequencing, or other procedural aspects for efficiency and fairness, provided that no party shall be required to pay AAA or arbitrator fees for more than the number of cases actively proceeding in a then-current tranche. In any Mass Arbitration Event, each individual case shall be assigned to a single arbitrator unless all Dispute Parties agree to a panel. The arbitrator shall decide the case-specific merits and remedies without being bound by outcomes in other cases, except to the extent issue preclusion or claim preclusion would apply under applicable law as between the same parties. The arbitrator may, for efficiency, adopt procedures for coordinated discovery or motion practice across cases within a tranche, provided that each claimant preserves the right to present their individual evidence and arguments and to obtain the individualized relief to which the claimant is entitled under applicable law. The allocation and timing of administrative and arbitrator fees in a Mass Arbitration Event shall follow the AAA’s applicable fee schedules as modified herein, such that fees are due only for cases in an active tranche. The arbitrator may award costs, fees, and sanctions consistent with applicable law and the AAA rules for non-compliant or frivolous demands or defenses, including where a party or its counsel fails to comply with the Process Arbitrator’s case-management orders or engages in bad-faith tactics designed to manufacture or exploit a Mass Arbitration Event. Nothing in this Section 15.8 shall require any Member to pay more in arbitration fees or costs than the Member would be required to pay to file the same claim in a court of competent jurisdiction, where such a limitation is required by applicable law. The arbitrator shall preserve the confidentiality of the proceedings to the fullest extent permitted by law. Except as required by law or to enforce an award, neither the arbitrator nor any Dispute Party shall disclose the existence, content, or results of any arbitration under this Section 15.8, including orders and awards, without the prior written consent of all Dispute Parties. The arbitrator may issue protective orders to safeguard confidential information, trade secrets, personal data, and sensitive business information. Notwithstanding anything to the contrary, if the waiver of class, collective, private attorney general, derivative on behalf of other Members, or other representative arbitration in this Section 15.8 is found unenforceable with respect to a particular claim or remedy, then, unless prohibited by non-waivable law, the unenforceable portion shall be severed and that specific claim or remedy shall proceed in a court of competent jurisdiction as provided in Section 15.10, while the remainder of the Dispute proceeds in arbitration on an individual basis. If any other provision of this Section 15.8 is found unenforceable as applied to a particular claim or remedy, the remaining provisions, and the application of such provision to any other claim or remedy, shall remain in full force and effect. This Section 15.8 shall survive any termination of this Agreement and shall bind and inure to the benefit of the Company, each Series, the Manager, the Members, and their respective successors and permitted assigns.

 

34

 

15.9 Class Action Waiver. To the fullest extent permitted by law, the Company, each Series, the Manager, and each Member agree that any Dispute shall be adjudicated or arbitrated, as the case may be, only on an individual basis. No Dispute Party shall have the right to have any Dispute heard or decided as a class, collective, private attorney general, or other representative proceeding, or in any proceeding in which a party acts or proposes to act in a representative capacity, including on behalf of other Members or other persons who are not parties to the proceeding. Unless all Dispute Parties otherwise agree in a signed writing, no arbitration, litigation, or other proceeding shall be consolidated with, coordinated with, or joined to any other arbitration, litigation, or proceeding, and the arbitrator or court shall not have authority to order any such consolidation, coordination, or joinder. For the avoidance of doubt, the foregoing does not prohibit administrative case-management or batching measures expressly authorized by the Mass Arbitration Protocol in Section 15.8(b), which shall not be deemed consolidation, coordination, joinder, or a representative proceeding for any purpose, and under which each case remains an individual matter. The arbitrator or court shall have no authority to conduct any class, collective, private attorney general, derivative on behalf of other Members, or other representative proceeding, or to award relief on a classwide, collective, or representative basis, or to enter an order that purports to bind or grant relief to any person or entity that is not a party to the arbitration or litigation. Nothing in this Section 15.9 shall be construed to preclude a Dispute Party from seeking public injunctive or other nonwaivable relief to the extent such relief is required by nonwaivable applicable law; any such relief shall be sought and adjudicated on an individual basis in the forum required by applicable law. If a Dispute concerns the management or operations of a particular Series, any adjudication or arbitration shall be limited to that Series, the Company as necessary, the Manager, and the Members or other parties whose rights or obligations are directly implicated by that Dispute, and no award against a Series shall bind or be enforceable against the assets of any other Series unless such other Series is a party and is specifically found liable. To the extent a derivative claim on behalf of the Company or a particular Series is nonwaivable under applicable law, such claim may be brought only in accordance with the governing statute and this Agreement and only on behalf of the Company or the specific Series whose rights are at issue, and not on behalf of any Member or any other Series. The Dispute Parties acknowledge and agree that this Section 15.9 is intended to be separate and independent from Section 15.8 and shall apply in any forum described in Section 15.10. If any court or arbitrator determines that Section 15.8, or any part of Section 15.8, is unenforceable or inapplicable to a particular Dispute, the provisions of this Section 15.9 shall nevertheless govern the conduct of any resulting litigation or other proceeding to the fullest extent permitted by law, such that the Dispute proceeds only on an individual basis and not as a class, collective, private attorney general, or other representative proceeding. The Dispute Parties further acknowledge that agreements requiring individual proceedings and waiving class, collective, or representative procedures, including outside the arbitration context, have been enforced as contractual provisions subject to applicable law, and that such agreements address procedural mechanisms and do not waive, diminish, limit, or disclaim any substantive rights or remedies under the U.S. federal securities laws or the rules and regulations promulgated thereunder. If the waiver of class, collective, private attorney general, derivative on behalf of other Members, or other representative proceedings in this Section 15.9 is held unenforceable with respect to any claim or remedy for which classwide, collective, or representative relief is sought, then such specific claim or remedy shall proceed exclusively in a court of competent jurisdiction in accordance with Section 15.10, and the arbitration provisions of Section 15.8 shall be inapplicable to that claim or remedy; all remaining claims and remedies shall proceed on an individual basis in arbitration or court, as applicable. To promote efficiency and avoid inconsistent rulings, the arbitrator or court may stay any parallel individual arbitration or litigation of overlapping issues pending resolution of the court proceeding required by this paragraph, to the extent permitted by law. The Dispute Parties expressly agree that this fallback allocation of forum is a material term of this Agreement and would have been agreed even absent the arbitration provisions of Section 15.8. Nothing in this Section 15.9 is intended to waive compliance with any provision of the U.S. federal securities laws or the rules and regulations promulgated thereunder. Consistent with applicable law and the Supreme Court’s guidance that a mandatory arbitration provision is not a waiver of federal securities law rights, the individual-proceeding requirement and class and representative action waiver in this Section 15.9 operate solely as procedural limitations on the manner in which Disputes are brought and resolved, and not as a waiver of any substantive right or remedy available under applicable law. If any provision of this Section 15.9 is found to be unenforceable as applied to a particular claim or remedy, the remaining provisions, and the application of such provision to any other claim or remedy, shall remain in full force and effect. This Section 15.9 shall survive any termination of this Agreement and shall bind and inure to the benefit of the Company, each Series, the Manager, the Members, and their respective successors and permitted assigns.

 

35

 

15.10 Exclusive Forum. Except as otherwise required by the arbitration and class action waiver provisions set forth above, and subject to applicable federal securities laws, any legal action or proceeding arising under this Agreement, any Series Designation, any Form of Adherence, or any subscription agreement or other agreement relating to Units of the Company or any Series that is not subject to mandatory arbitration pursuant to Section 15.8, and any court proceedings related to or in support of arbitration, shall be brought exclusively in the federal or state courts located in the State of Delaware, unless the Manager provides written consent to the selection of an alternative forum. Unless the Manager consents in writing to the selection of an alternative forum, to the maximum extent permitted by the Delaware Act, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act to the extent that mandatory arbitration pursuant to Section 15.8 is determined by a court of law not to apply to such complaint, subject to and contingent upon a final adjudication in the State of Delaware of the enforceability of such exclusive forum provision. The provisions of this Section 15.10 are not intended to relieve the Company of its duty to comply with any federal securities laws and regulations, and shall not be construed as a waiver by any Member of compliance with such laws. Each Member acknowledges that the exclusive forum and venue provisions set forth in this Section 15.10, together with the arbitration and class action waiver provisions set forth in Section 15.8 and Section 15.9, may limit such Member's ability to bring a claim in a judicial venue or procedural posture that such Member finds favorable. Any Person purchasing or otherwise acquiring any Unit or other interest in any security of the Company or any Series shall be deemed to have notice of and consented to the provisions of this Agreement.

 

15.11 Applicable Law and Jurisdiction.

 

(a) This Agreement and the rights of the parties shall be governed by and construed in accordance with the laws of the State of Delaware. Non-contractual obligations (if any) arising out of or in connection with this agreement (including its formation) shall also be governed by the laws of the State of Delaware. The rights and liabilities of the Members in the Company and each Series and as between them shall be determined pursuant to the Delaware Act and this Agreement. To the extent the rights or obligations of any Member are different by reason of any provision of this Agreement than they would otherwise be under the Delaware Act in the absence of any such provision, or even if this Agreement is inconsistent with the Delaware Act, this Agreement shall control, except to the extent the Delaware Act prohibits any particular provision of the Delaware Act to be waived or modified by the Members, in which event any contrary provisions hereof shall be valid to the maximum extent permitted under the Delaware Act.

 

(b) Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with this Agreement, or the transactions contemplated hereby shall be brought in Chancery Court in the State of Delaware and each Member hereby consents to the exclusive jurisdiction of the Chancery Court in the State of Delaware (and of the appropriate appellate courts therefrom) in any suit, action or proceeding, and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum; provided, that if the Chancery Court in the State of Delaware shall not have jurisdiction over such matter, then such suit, action or proceeding may be brought in other federal or state courts located in the State of Delaware. Each Member hereby waives the right to commence an action, suit or proceeding seeking to enforce any provisions of, or based on any matter arising out of or in connection with this Agreement, or the transactions contemplated hereby or thereby in any court outside of the Chancery Court in the State of Delaware. Process in any suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any court. Without limiting the foregoing, each party agrees that service of process on such party by written notice pursuant to Section 15.1 will be deemed effective service of process on such party

 

(c) EVERY PARTY TO THIS AGREEMENT AND ANY OTHER PERSON WHO BECOMES A MEMBER OR HAS RIGHTS AS AN ASSIGNEE OF ANY PORTION OF ANY MEMBER’S MEMBERSHIP INTEREST HEREBY WAIVES ANY RIGHT TO A JURY TRIAL AS TO ANY MATTER UNDER THIS AGREEMENT, IN CONNECTION WITH SECTION 15.8, SECTION 15.9, SECTION 15.10 AND THIS SECTION 15.11, OR IN ANY OTHER WAY RELATING TO THE COMPANY OR THE RELATIONS UNDER THIS AGREEMENT OR OTHERWISE AS TO THE COMPANY AS BETWEEN OR AMONG ANY SAID PERSONS.

 

15.12 Invalidity of Provisions. If any provision of this Agreement is or becomes invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein shall not be affected thereby. 

 

15.13 Consent of Members. Each Member hereby expressly consents and agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or consent of less than all of the Members, such action may be so taken upon the concurrence of less than all of the Members and each Member shall be bound by the results of such action. 

 

[Manager Signature Page Follows]

 

36

 

MANAGER SIGNATURE PAGE

 

IN WITNESS WHEREOF, the undersigned Manager of Agentiq Sports 1 Series LLC, has executed this Limited Liability Company Operating Agreement as of the date first written above.

 

MANAGER
  Agentiq Sports, Inc.
   
  By:  /s/ Zach Kurtz
  Name: Zach Kurtz
  Title: Chief Executive Officer

 

37

 

EX1A-3 HLDRS RTS 6 ea029473701ex3-1.htm FORM OF SERIES DESIGNATION

Exhibit 3.1

 

CERTIFICATE OF DESIGNATION

 

OF

 

AGENTIQ SPORTS 1 SERIES [______]
(a Designated Series of Agentiq Sports 1 Series LLC)

 

 

 

In accordance with the Limited Liability Company Operating Agreement of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Company”), dated November 3, 2025 (the “Operating Agreement”), and upon the execution of this Series Designation by the Company and Agentiq Sports, Inc., a Delaware corporation, in its capacity as Manager of the Company and of Agentiq Sports 1 Series [______], a designated series of the Company (the “Series”), this Series Designation shall be attached to, and deemed incorporated in its entirety into, the Operating Agreement. References to Sections and Articles set forth herein are references to Sections and Articles of the Operating Agreement, as in effect as of the Effective Date of the Series set forth below. Capitalized terms that are not defined herein shall have the meaning given to them in the Operating Agreement.

 

Name of Series:

Agentiq Sports 1 Series [______]
   
Effective Date of Establishment: [______] (the “Effective Date”)
   

Manager:

 

Agentiq Sports, Inc. is appointed as the Manager of the Series (the “Manager”) with effect from the Effective Date of the Series and shall continue to act as the Manager of the Series until the earlier of dissolution of the Series pursuant to Section 11.1(b) or removal or replacement pursuant to Section 4.4 or Article X.
   

Series Asset:

 

The asset of the Series shall be comprised of all rights, title, and interest in and to that certain Brand Advisory Agreement, dated [______] (the “Brand Advisory Agreement”), by and between the Series and [______] (the “Client”).
   
Offered Securities; Purchase Price: The Series shall offer and sell in the Company’s Tier II Regulation A Offering (the “Offering”) up to [______] Units of membership interest (the “Units”) in the Series (the “Offered Units”), at $100.00 per Offered Unit, for an aggregate maximum Offering amount of $[______].
   
Minimum Investment: One (1) Unit, ($100.00) unless waived by the Manager in its sole discretion
   
Broker-Dealer; Broker-Dealer Fees: The broker-dealer for the Series is [______]Andes Capital Group LLC (the “Broker-Dealer”). The Series shall pay to the Broker-Dealer a cash commission of [__]% of the gross proceeds raised from the sale of the Offered Units. The Manager may change the Broker-Dealer for the Series at any time, from time to time, in its sole discretion.
   

Maintenance Fee:

 

Subject to the revenue condition set forth below, as an annual, ongoing expense of the Series, the Series shall pay to the Manager a maintenance fee (the “Maintenance Fee”) for the Manager’s management and administration of the Series, its business, its assets and the Brand Advisory Agreement. The Maintenance Fee shall be equal to [__]% per annum of the aggregate Capital Contributions made to the Series, calculated as of the applicable payment date or such other measurement date as the Manager may reasonably determine consistent with the Operating Agreement. The Maintenance Fee shall be payable quarterly in arrears from funds legally available therefor and shall be treated as an expense of the Series. Promptly following the closing of the applicable Offering for the Series, the Series shall pay to the Manager any portion of the Maintenance Fee that accrued prior to such closing but was not previously paid; provided, that the Maintenance Fee shall be pro-rated for any partial period during which it first becomes payable. Notwithstanding anything to the contrary in this Series Designation or the Operating Agreement, the Maintenance Fee shall not accrue, become due or be payable unless and until the Series is generating revenues. For the avoidance of doubt, any catch-up payment shall apply only to amounts that accrued in accordance with the revenue condition set forth in the immediately preceding sentence.

 

 

 

Negotiation Fee:

The Series shall pay to the Manager a one-time negotiation fee (the “Negotiation Fee”) in an amount not to exceed $[______], which amount is inclusive of the Manager’s compensation and associated out-of-pocket costs and expenses described in this section and represents [__]% of the $[______] initial advisory payment payable by the Series to the Client under the Brand Advisory Agreement; provided, that if, following the termination or completion of the Offering, the amount of such initial advisory payment actually paid to the Client is less than $[______], the Negotiation Fee shall be adjusted downward to equal [__]% of the amount actually paid. The Negotiation Fee covers costs and expenses incurred in identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement, including fees and expenses payable to any agent or intermediary of the Client and customary deal expenses such as travel and lodging, diligence and background checks, third-party research, legal and documentation costs and closing-related technology or data-room charges.

 

The Negotiation Fee shall be payable at or promptly following each closing of the Offering from the gross proceeds of the Offering.

   
Expense Reimbursement:

Subject to Section 6.3 of the Operating Agreement, the Manager may be reimbursed by the Series for operating expenses assumed or advanced by the Manager on behalf of the Series pursuant to an Operating Expense Reimbursement Obligation or as otherwise determined by the Manager in accordance with the Operating Agreement.

 

The Manager has waived its right to reimbursement for Offering expenses advanced on behalf of the Series.

   
Manager Loans The Manager is authorized, in its sole discretion, to make loans to the Series (including Operating Expense Reimbursement Obligations) on such terms, including interest, as the Manager determines, consistent with Article V, Section 5.1(a) and Article VI, Section 6.3 of the Operating Agreement.
   
Distributions: Distributions of Free Cash Flow, if any, shall be made to holders of Units pro rata in accordance with their respective Unit holdings, subject to the limitations and procedures set forth in Article VII. No distributions in kind of Series Assets shall be made.
   
Redemption: Units are not redeemable.
   
Voting Rights: As set forth in Article III.
   
Splits There shall be no subdivision of the Series Interests other than in accordance with Article III, Section 3.7
   
Transferability: Units may not be transferred except in accordance with Article IV, including the provisions thereof governing ATS Transfers, and, except to the extent Article IV provides otherwise, subject to the consent of the Manager, which may be withheld in its sole discretion, and the Subscription Agreement.
   
Officers: There shall initially be no specific officers, directors, or employees associated with the Series although the Manager may appoint officers of the Series from time to time, in its sole discretion.

 

2

 

Governing Law: This Series Designation shall be governed by and construed in accordance with the laws of the State of Delaware, as provided in the Operating Agreement.
   
No Other Rights: Investors in the Units shall have no equity interest in the Company as a whole, no conversion, exchange, sinking fund, redemption, or appraisal rights, no preemptive rights to subscribe for any securities of the Series or the Company, and no preferential rights to distributions except as otherwise specified in the Operating Agreement.
   
Information Reporting As stated in Article VIII, Section 8.1(c).
   
Dissolution and Termination: The Series shall terminate, and its affairs shall be wound up, upon the occurrence of any event set forth in Article XI.
   
Fiscal Year As stated in Article VIII, Section 8.2.
   
Amendment and Waiver:

This Series Designation may be amended, or any term hereof waived, in accordance with Article XII.

 

  AGENTIQ SPORTS 1 SERIES [______]
  a Designated Series of Agentiq Sports 1 Series LLC
   
  By and through its Manager
  Agentiq Sports, Inc.
     
  By:  
  Name:  
  Title:  

 

3

 

EX1A-3 HLDRS RTS 7 ea029473701ex3-2.htm SERIES DESIGNATION OF AGENTIQ SPORTS 1 SERIES RONNY CRUZ

Exhibit 3.2

 

CERTIFICATE OF DESIGNATION

 

OF

 

AGENTIQ SPORTS 1 SERIES RONNY CRUZ
(a Designated Series of Agentiq Sports 1 Series LLC)

 

 

 

In accordance with the Limited Liability Company Operating Agreement of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Company”), dated November 3, 2025 (the “Operating Agreement”), and upon the execution of this Series Designation by the Company and Agentiq Sports, Inc., a Delaware corporation, in its capacity as Manager of the Company and of Agentiq Sports 1 Series Ronny Cruz, a designated series of the Company (the “Series”), this Series Designation shall be attached to, and deemed incorporated in its entirety into, the Operating Agreement. References to Sections and Articles set forth herein are references to Sections and Articles of the Operating Agreement, as in effect as of the Effective Date of the Series set forth below. Capitalized terms that are not defined herein shall have the meaning given to them in the Operating Agreement.

 

Name of Series:   Agentiq Sports 1 Series Ronny Cruz
     
Effective Date of Establishment:   May 12, 2026 (the “Effective Date”)
     
Manager:     Agentiq Sports, Inc. is appointed as the Manager of the Series (the “Manager”) with effect from the Effective Date of the Series and shall continue to act as the Manager of the Series until the earlier of dissolution of the Series pursuant to Section 11.1(b) or removal or replacement pursuant to Section 4.4 or Article X.
     
Series Asset:     The asset of the Series shall be comprised of all rights, title, and interest in and to that certain Brand Advisory Agreement, dated May 12, 2026 (the “Brand Advisory Agreement”), by and between the Series and Ronny Cruz (the “Client”).
     
Offered Securities; Purchase Price:   The Series shall offer and sell in the Company’s Tier II Regulation A Offering (the “Offering”) up to 12,900 Units of membership interest (the “Units”) in the Series (the “Offered Units”), at $100.00 per Offered Unit, for an aggregate maximum Offering amount of $1,290,000.
     
Minimum Investment:   One (1) Unit, ($100.00) unless waived by the Manager in its sole discretion
     
Broker-Dealer; Broker-Dealer Fees:   The broker-dealer for the Series is Andes Capital Group LLC (the “Broker-Dealer”). The Series shall pay to the Broker-Dealer a cash commission of 1.00% of the gross proceeds raised from the sale of the Offered Units. The Manager may change the Broker-Dealer for the Series at any time, from time to time, in its sole discretion.

 

 

 

 

Maintenance Fee:     Subject to the revenue condition set forth below, as an annual, ongoing expense of the Series, the Series shall pay to the Manager a maintenance fee (the “Maintenance Fee”) for the Manager’s management and administration of the Series, its business, its assets and the Brand Advisory Agreement. The Maintenance Fee shall be equal to two and one-half percent (2.5%) per annum of the aggregate Capital Contributions made to the Series, calculated as of the applicable payment date or such other measurement date as the Manager may reasonably determine consistent with the Operating Agreement. The Maintenance Fee shall be payable quarterly in arrears from funds legally available therefor and shall be treated as an expense of the Series. Promptly following the closing of the applicable Offering for the Series, the Series shall pay to the Manager any portion of the Maintenance Fee that accrued prior to such closing but was not previously paid; provided, that the Maintenance Fee shall be pro-rated for any partial period during which it first becomes payable. Notwithstanding anything to the contrary in this Series Designation or the Operating Agreement, the Maintenance Fee shall not accrue, become due or be payable unless and until the Series is generating revenues. For the avoidance of doubt, any catch-up payment shall apply only to amounts that accrued in accordance with the revenue condition set forth in the immediately preceding sentence.
     
Negotiation Fee:  

The Series shall pay to the Manager a one-time negotiation fee (the “Negotiation Fee”) in an amount not to exceed $51,600, which amount is inclusive of the Manager’s compensation and associated out-of-pocket costs and expenses described in this section and represents four percent (4%) of the $1,200,000 initial advisory payment payable by the Series to the Client under the Brand Advisory Agreement; provided, that if, following the termination or completion of the Offering, the amount of such initial advisory payment actually paid to the Client is less than $1,200,000, the Negotiation Fee shall be adjusted downward to equal four percent (4%) of the amount actually paid. The Negotiation Fee covers costs and expenses incurred in identifying, sourcing, structuring, negotiating, documenting and closing the Brand Advisory Agreement, including fees and expenses payable to any agent or intermediary of the Client and customary deal expenses such as travel and lodging, diligence and background checks, third-party research, legal and documentation costs and closing-related technology or data-room charges.

 

The Negotiation Fee shall be payable at or promptly following each closing of the Offering from the gross proceeds of the Offering.

     
Expense Reimbursement:  

Subject to Section 6.3 of the Operating Agreement, the Manager may be reimbursed by the Series for operating expenses assumed or advanced by the Manager on behalf of the Series pursuant to an Operating Expense Reimbursement Obligation or as otherwise determined by the Manager in accordance with the Operating Agreement.

 

The Manager has waived its right to reimbursement for Offering expenses advanced on behalf of the Series.  

     
Manager Loans   The Manager is authorized, in its sole discretion, to make loans to the Series (including Operating Expense Reimbursement Obligations) on such terms, including interest, as the Manager determines, consistent with Article V, Section 5.1(a) and Article VI, Section 6.3 of the Operating Agreement.
     
Distributions:   Distributions of Free Cash Flow, if any, shall be made to holders of Units pro rata in accordance with their respective Unit holdings, subject to the limitations and procedures set forth in Article VII. No distributions in kind of Series Assets shall be made.

 

2

 

 

 

Redemption:   Units are not redeemable.
     
Voting Rights:   As set forth in Article III.
     
Splits   There shall be no subdivision of the Series Interests other than in accordance with Article III, Section 3.7
     
Transferability:   Units may not be transferred except in accordance with Article IV, including the provisions thereof governing ATS Transfers, and, except to the extent Article IV provides otherwise, subject to the consent of the Manager, which may be withheld in its sole discretion, and the Subscription Agreement.
     
Officers:   There shall initially be no specific officers, directors, or employees associated with the Series although the Manager may appoint officers of the Series from time to time, in its sole discretion
     
Governing Law:   This Series Designation shall be governed by and construed in accordance with the laws of the State of Delaware, as provided in the Operating Agreement.
     
No Other Rights:   Investors in the Units shall have no equity interest in the Company as a whole, no conversion, exchange, sinking fund, redemption, or appraisal rights, no preemptive rights to subscribe for any securities of the Series or the Company, and no preferential rights to distributions except as otherwise specified in the Operating Agreement.
     
Information Reporting   As stated in Article VIII, Section 8.1(c).
     
Dissolution and Termination:   The Series shall terminate, and its affairs shall be wound up, upon the occurrence of any event set forth in Article XI.
     
Fiscal Year   As stated in Article VIII, Section 8.2.
     
Amendment and Waiver:   This Series Designation may be amended, or any term hereof waived, in accordance with Article XII.  

 

AGENTIQ SPORTS 1 SERIES RONNY CRUZ
  a Designated Series of Agentiq Sports 1 Series LLC
     
  By and through its Manager
  Agentiq Sports, Inc.
     
  By: /s/ Zach Kurtz
  Name:  Zach Kurtz
  Title: Chief Executive Officer

 

3

 

EX1A-6 MAT CTRCT 8 ea029473701ex6-1.htm FORM OF BRAND ADVISORY AGREEMENT

Exhibit 6.1

 

BRAND ADVISORY AGREEMENT

 

This Brand Advisory Agreement (this “Agreement”) is made as of the latter date set forth on the signature page hereto (the “Effective Date”), by and between Agentiq Sports 1 Series [_________] (the “Company”), a designated series of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Master LLC”), and [________] (the “Client”). The Company and the Client are referred to herein individually as a “Party” and together as the “Parties.”

 

WHEREAS, the Master LLC, acting through the Company and Agentiq Sports, Inc. (the “Manager”), is engaged in the business of providing strategic brand enhancement and promotional advisory services, together with upfront capital, to a single athlete or public personality, in each case in exchange for a contractual right to receive a fixed percentage of such person’s future on-field revenue;

 

WHEREAS, the Client is a professional [__________] player engaged in the Principal Business (as defined below) who desires to enhance and develop the Client’s personal brand and commercial opportunities and to receive the upfront capital and Advisory Services (as defined below) offered by the Company;

 

WHEREAS, in consideration of the Client’s assignment to the Company of the contractual right to receive an amount equal to the Brand Percentage (as defined below) of the Client’s Brand Income (as defined below) during the Term, the Company has agreed to provide the Advisory Services to the Client and to pay to the Client cash payments aggregating $[________] (the “Initial Advisory Payment”), in each case on the terms and subject to the conditions set forth herein;

 

WHEREAS, the Initial Advisory Payment shall be funded as follows: (i) $[__________] of the Initial Advisory Payment shall be paid by the Company to the Client within thirty (30) days following the Effective Date, and (ii) the remaining balance shall be guaranteed by the Company and paid to the Client by the Outside Date (as defined in Section 4.1), which may be funded from the proceeds of an offering of membership interests in the Company conducted pursuant to Regulation A under the Securities Act of 1933, as amended (the “Series Offering”), as further described in Exhibit B (Offering Structure Summary), with payments to be made promptly following the initial closing of the Series Offering (the “Initial Closing”) and each additional closing thereof, in each case in accordance with Section 4.1 and subject to the Outside Date and the other terms and conditions set forth herein;

 

WHEREAS, the Company is a designated series of the Master LLC and operates as a separate legal entity, and Agentiq Sports, Inc. (the “Manager”), the sole manager of the Master LLC and of each series thereof (including the Company), has been duly authorized to act on behalf of the Company in entering into and administering this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1. Definitions. For purposes of this Agreement, the following capitalized terms have the meanings set forth below. Other terms may be defined contextually elsewhere in the Agreement.

 

Affiliate” means, with respect to any specified person or entity, any other person or entity that directly or indirectly controls, is controlled by, or is under common control with such person or entity.

 

Account Control Agreement” means the springing participation account control agreement among the Client, the Company or Manager, and the Designated Bank, providing for springing control and otherwise having the terms set forth in Section 4.3(c), in form and substance reasonably acceptable to the Company and the Client.

 

Brand Amount” means an amount equal to the product of (a) all Brand Income earned by the Client (whether earned by the Client directly or through any third party on the Client’s behalf, such as a personal services company or agent) during the Term, multiplied by (b) the Brand Percentage.

 

 

 

 

“Brand Income” means any and all gross monies, compensation, or other consideration of any kind earned by or payable to the Client (or the Client’s designee or agent for the Client’s benefit) after the Commencement Date solely as a result of the Client’s direct participation, performance, or employment as a professional athlete in the Principal Business, including but not limited to base salary, signing bonuses, performance bonuses, prize or award money, and any other earnings directly attributable to the Client’s on-field activities and services as a professional athlete. For the avoidance of doubt, Brand Income includes all compensation paid to the Client by any [___] Organization Entity, regardless of whether the Client is, at the time of payment, assigned to or performing services at the major league or minor league level, provided that such compensation is attributable to the Client’s services as a professional baseball player within the Principal Business; the identity of the payor entity (whether a major league club, minor league affiliate, or other [___] Organization Entity) shall not affect whether such compensation constitutes Brand Income. For the avoidance of doubt, Brand Income does not include any compensation, fees, royalties, or other consideration received by the Client for endorsements, sponsorships, appearances, licensing, merchandising, or any other off-field commercial activities, regardless of whether such activities are related to the Client’s persona or reputation as an athlete. In calculating Brand Income, such amounts shall be net of: (i) any reasonable, documented out-of-pocket legal fees incurred by the Client in securing, negotiating, or documenting any contract that generates such income (to the extent not reimbursed by a third party); (ii) any reasonable, documented travel, lodging, and per diem expenses incurred by the Client during the Term in connection with securing such income (to the extent not reimbursed by a third party); and (iii) any self-employment taxes owed by the Client in connection with such income; provided, however, that the aggregate amount deducted under this clause (iii) shall not exceed the amount of taxes that would be imposed on the Client under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101–3128) if the Client were treated as an employee (rather than a self-employed individual) with respect to such income; but without deduction for any commissions or fees payable to agents or representatives, any voluntary or elective deferrals or contributions by the Client, or any taxes payable on the Client’s gross income. For the avoidance of doubt, Brand Income expressly excludes any and all amounts received by the Client for off-field activities, including but not limited to endorsements, sponsorships, personal appearances, speaking engagements, licensing of name/image/likeness, and any other commercial activities not directly related to the Client’s on-field performance as a professional athlete. If a single contract, payment or consideration includes both Brand Income and Excluded Income, the Parties will allocate such compensation in good faith and on a commercially reasonable basis; provided that, absent manifest error, the Company’s reasonable determination will control pending final resolution, subject to the audit and dispute procedures herein. Any permitted deductions from gross amounts in computing Brand Income must be reasonable, documented, and substantiated by contemporaneous records; deductions not substantiated in an audit shall be disallowed. Compensation paid by teams/leagues to Client in exchange for on-field services is presumed to be Brand Income unless clearly and expressly documented as off-field consideration unrelated to on-field services.

 

“[_________] Organization Entity” means Major League Baseball, any Major League Baseball club, and any entity within the Major League Baseball organization, including any minor league affiliate, developmental league, or related entity, regardless of whether such entity is the Client’s direct employer or the payor of compensation to the Client.

 

Brand Percentage” means [__]%, the fixed percentage of the Client’s Brand Income that the Client agrees to pay to the Company as the Brand Amount; provided, that the Brand Percentage shall be subject to automatic adjustment following the Outside Date (as defined in Section 4.1) in accordance with Section 8.3(a), and from and after any such adjustment, all references in this Agreement to the “Brand Percentage” shall be deemed to refer to the Adjusted Brand Percentage (as defined in Section 8.3(a)).

 

Client Persona” means the Client’s name, likeness, image, voice, signature (including facsimile signature), biography, personal characteristics, and all other indicia of the Client’s identity or persona, including any live, recorded, or photographed performance or appearance by the Client.

 

Collection Failure” means any failure to establish, maintain, authorize, or give effect to the Participation Account, the direct deposit of one hundred percent (100%) of Brand Income into the Participation Account, the automatic bi-weekly transfer of the Brand Amount to the Company Account, or the Account Control Agreement, including any revocation, modification, redirection, termination, obstruction, suspension, or failure to renew any such direct deposit, automatic transfer, or Account Control Agreement, except to the extent caused solely by the Company’s breach of this Agreement.

 

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Commencement Date” means the date on which the Company first pays any portion of the Initial Advisory Payment to the Client.

 

Company” means Agentiq Sports 1 Series [__________], a designated series of Agentiq Sports 1 Series LLC, a Delaware series limited liability company.

 

Designated Bank” means the bank or other financial institution designated by the Company or Manager to hold the Participation Account.

 

Effective Date” means [__________], the latter date set forth on the signature page hereto.

 

Luxury Tax Value” means, with respect to any player contract between the Client and any team or entity within the MLB Organization Entity, the average annual value of such contract as calculated by Major League Baseball for purposes of the Competitive Balance Tax (as set forth in the applicable Major League Baseball Collective Bargaining Agreement), which is generally determined by dividing the total guaranteed compensation under the contract by the number of contract years, regardless of the actual payment schedule.

 

Excluded Income” means the following categories of income or payments, which are excluded from the definition of Brand Income:

 

(a) all proceeds paid to the Client (or the Client’s heirs, executors, administrators, successors or assigns) from any life, disability, or injury insurance policy, or from any insurance policy related to the Client’s status or eligibility to participate in the Principal Business, in each case to the extent such policy is purchased or in effect after the Commencement Date;

 

(b) all compensation or earnings attributable to services performed by the Client prior to the Commencement Date (including any deferred compensation or contingent payments earned from activities before the Commencement Date), regardless of when such amounts are actually paid; and

 

(c) any reimbursement or payment for reasonable, documented incidental expenses incurred by the Client (such as travel, lodging, or per diem expenses), or the fair market value or actual payment for any such expenses provided in kind or paid by a third party on the Client’s behalf; and

 

(d) all compensation, fees, royalties, or other consideration received by the Client for endorsements, sponsorships, personal appearances, speaking engagements, licensing of name, image, or likeness (“NIL”), merchandising, or any other off-field commercial activities, regardless of whether such activities are related to the Client’s persona or reputation as an athlete;

 

Initial Advisory Payment” shall have the meaning provided in Section 4.1.

 

Initial Closing” shall have the meaning provided in the recitals.

 

Manager” means Agentiq Sports, Inc., a Delaware corporation, which is the sole manager of the Master LLC and of each series thereof. The Manager is authorized to act on behalf of the Company as set forth in the Master LLC operating agreement, the Series Designation for the Company and herein.

 

Outside Date” shall have the meaning provided in Section 4.1.

 

Qualification Date” shall have the meaning provided in Section 4.1.

 

Participation Account” means the deposit account established by or for the Client at the Designated Bank for the receipt of Brand Income and subject to the Account Control Agreement.

 

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Personal Account” means the bank account designated by the Client for receipt of amounts remaining after the Company has swept or caused to be transferred the applicable Brand Amount and any other amounts then due and payable to the Company under this Agreement.

 

Principal Business” means the Client’s primary professional occupation as a professional athlete in any of the following [__________] leagues: [__________]. For the avoidance of doubt, compensation earned by the Client from any league, tournament, or competition not listed above (including, without limitation, independent leagues, winter leagues, and exhibition play) shall not constitute Brand Income, specifically limited to the Client’s on-field/court participation, performance, and services as a player, including receipt of salary, bonuses, and prize money, and excluding any off-field commercial, promotional, or endorsement activities.

 

Release Amount” means, with respect to any Brand Income deposited into the Participation Account, the amount remaining after deduction of the Brand Amount and any other amounts then due and payable to the Company under this Agreement.

 

Term” means the period of duration of this Agreement, as defined in Section 8.1 below.

 

Series Designation” means the written designation establishing the applicable designated series of the Master LLC, incorporated into and made part of the Master LLC operating agreement, which sets forth the name of the series and its rights, powers, preferences, duties, and other terms, as amended from time to time.

 

Series Offering” shall have the meaning provided in the recitals.

 

Sweep Deadline” means three (3) business days after Brand Income is credited to the Participation Account, or such other period as the Parties may agree in writing.

 

2. Advisory Services Provided by the Company

 

2.1 Commencement of Obligations. The Company’s obligations to commence the Advisory Services under this Section 2, the Client’s obligation to pay the Brand Amount under Sections 3 and 4.3, and all other rights and obligations of the Parties under this Agreement that are expressed to commence on, or that are conditioned upon, the Commencement Date shall become effective and commence automatically upon the Company’s payment to the Client of any portion of the Initial Advisory Payment pursuant to Section 4.1, in each case without the need for any further action, notice, or instrument by either Party.

 

2.2 Services Scope.  The Company (acting through the Manager and its affiliates, contractors, and agents) shall provide strategic brand enhancement and promotional advisory services to the Client (the “Advisory Services”). These services may include, without limitation:

 

(a) evaluation and development of the Client’s personal brand positioning;

 

(b) planning and execution of fan engagement initiatives;

 

(c) preparation and readiness consulting for sponsorships, endorsements, and other commercial opportunities related to the Client’s persona;

 

(d) development and execution of marketing campaigns and content to increase the Client’s public visibility and marketability; and

 

(e) ongoing advisory support regarding the Client’s branding and promotional activities.

 

For the avoidance of doubt, the Advisory Services provided under this Agreement expressly exclude any services that require certification or licensing as a player agent, contract advisor, or similar professional representative under applicable league, players’ association, or regulatory rules. The Company and its representatives will not negotiate, secure, or execute employment contracts, playing contracts, or other agreements on behalf of the Client that require such certification, nor will they represent the Client in employment-related negotiations with teams, leagues, or governing bodies. The Client remains solely responsible for engaging any certified agent or contract advisor as may be required for such matters.

 

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2.3 Brand Initiatives Funding. In connection with the Advisory Services, the Company shall fund brand-enhancement initiatives that may be agreed-upon by the Parties for the benefit of the Client. Such initiatives and the budget or amounts to be expended by the Company (if any) shall be determined by the Manager in consultation with the Client, consistent with the overall objectives of enhancing the Client’s brand and increasing the Client’s commercial opportunities. The Company shall administer any such funding and initiatives and may engage third-party service providers or partners to carry out specific campaigns or projects. All expenditures by the Company on brand initiatives are at the Company’s discretion (subject to any agreed plan or budget) and shall be part of the Company’s performance of the Advisory Services. Without limiting the foregoing, the Company shall commit advertising and media resources to promote and grow the Client’s personal brand and social-media presence, and the Company anticipates spending in excess of $[_______] on advertising and media that feature the Client and are designed to drive social awareness of the Client and the Client’s brand and to grow the Client’s social-media following.

 

2.4 No Guarantee. The Client acknowledges that, while the Advisory Services and funded initiatives are intended to enhance the Client’s brand and earnings potential, the Company has not made and does not make any guarantee or promise of any particular outcome or increase in the Client’s earnings or fame as a result of such services. The Client further acknowledges that the Client’s success in the Principal Business and related commercial endeavors depends on many factors beyond the Company’s control.

 

2.5 Planning Meetings. During the Term, the Client agrees to meet (which may be via teleconference or videoconference) with representatives of the Company or the Manager on a periodic basis, at least bi-annually (twice a year) to review recent developments and to plan upcoming brand strategy and initiatives. The Parties shall cooperate in good faith to schedule such meetings at mutually convenient times, and the Client shall use reasonable efforts to make himself/herself available for such meetings as part of the collaboration under this Agreement.

 

(a) Autograph Obligation. During the Term, the Client agrees to provide to the Company three hundred (300) autographed items (which may include, without limitation, photographs, memorabilia, trading cards, jerseys, or other items designated by the Company) for use by the Company in connection with fan engagement initiatives, promotional campaigns, or the Series Offering. The Company shall provide the items to be signed and shall coordinate with the Client on a mutually convenient schedule for the execution of such autographs. The Client shall complete the autograph obligation within a reasonable period following the Company’s request, and the Company shall use commercially reasonable efforts to minimize disruption to the Client’s training and competition schedule.

 

(b) Annual Fan Meet-Up. During each calendar year of the Term (or partial calendar year, as applicable), the Client agrees to participate in one (1) in-person fan engagement event organized by the Company (each, a “Fan Meet-Up”). The Company shall be responsible for all logistics, venue arrangements, and costs associated with the Fan Meet-Up. The Company shall provide the Client with at least thirty (30) days’ prior written notice of the proposed date, time, and location of each Fan Meet-Up, and the Parties shall cooperate in good faith to schedule such event at a mutually convenient time and location that does not conflict with the Client’s training, competition, or other professional obligations. Each Fan Meet-Up shall not exceed four (4) hours in duration (excluding reasonable travel time). For the avoidance of doubt, the Client shall have no obligation to participate in more than one (1) Fan Meet-Up per calendar year under this Section.

 

2.6 Use of Third Parties. The Client agrees that the Company and the Manager may utilize affiliated or third-party service providers, consultants, and agents to perform some or all of the Advisory Services or brand initiatives and may share necessary information (including Confidential Information and elements of the Client Persona) with such parties for the sole purpose of fulfilling the Company’s obligations under this Agreement. The Company shall remain responsible for the performance of any Advisory Services that it delegates to third parties.

 

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2.7 Proportional Advisory Services. The Parties acknowledge that the scope and extent of the Advisory Services to be provided by the Company under this Agreement are commensurate with the full Initial Advisory Payment. In the event that, following the Initial Closing, the Company does not pay the full Initial Advisory Payment to the Client (whether because the Series Offering does not raise the full amount or for any other reason), the Company’s obligation to provide Advisory Services under Section 2.2 shall be reduced on a pro rata basis in proportion to the amount of the Initial Advisory Payment actually received by the Client (the “Funded Amount”) relative to the full Initial Advisory Payment. By way of illustration, if the Funded Amount equals fifty percent (50%) of the full Initial Advisory Payment, the Company shall be obligated to provide Advisory Services at a level of effort, resource commitment, and funding of brand-enhancement initiatives under Section 2.3 that is proportionate to fifty percent (50%) of the Advisory Services contemplated hereunder. The Manager shall determine, in its reasonable discretion and in consultation with the Client, the manner in which the scope of the Advisory Services shall be adjusted to reflect any such proportional reduction, including the frequency of planning meetings under Section 2.5, the budget for brand-enhancement initiatives under Section 2.3, and the breadth of services described in Section 2.2(a) through (e). For the avoidance of doubt, any such reduction in Advisory Services shall not relieve the Client of the Client’s obligation to pay the Brand Amount at the applicable Brand Percentage (or, if the Brand Percentage has been adjusted pursuant to Section 8.3(a), the Adjusted Brand Percentage) on all Brand Income earned during the Term.

 

3. Grant of Revenue Sharing Interest

 

3.1 Assignment of Brand Income Percentage. The Client hereby sells, assigns and grants to the Company, as of the Commencement Date and continuing through the Term, the contractual right to receive a portion of the Client’s future Brand Income equal to the Brand Percentage. In other words, the Client agrees to pay to the Company an amount equal to the Brand Amount from the Client’s Brand Income, as and when such Brand Income is earned or received, subject to the terms and conditions of this Agreement. The Advisory Services and the Initial Advisory Payment are provided as consideration for the right of the Company to receive the Brand Amount from the Client. The Client’s obligation to pay the Brand Amount to the Company, which does not constitute a loan or a debt, shall be absolute and unconditional, and shall exist regardless of whether the Client is employed, contracted, or self-employed in generating the Brand Income and regardless of through whom or how the Brand Income is paid.

 

3.2 No Ownership in Persona or Business. The Parties acknowledge and agree that the Company’s rights in the Brand Income are purely contractual. The Company does not acquire any ownership or equity interest in the Client’s persona, brand, publicity rights, or in any entity or enterprise owned or operated by the Client. Except for the share of future revenue explicitly granted hereunder and the related rights necessary to enforce or collect such revenue share, all other rights in the Client’s earnings and assets remain solely those of the Client.

 

3.3 Excluded Income. The Company has no right to and makes no claim on any Excluded Income of the Client. The Client shall have no obligation to share with the Company any income or amounts classified as Excluded Income, except that if a single contract or payment includes both Brand Income and Excluded Income components, the Brand Income portion (if reasonably ascertainable) will remain subject to the Brand Percentage. The Parties agree to cooperate in good faith to fairly allocate any mixed sources of compensation between Brand Income and Excluded Income, consistent with the definitions herein.

 

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4. Payments and Collection of Brand Amount

 

4.1 Initial Advisory Payment to Client. As consideration for the rights granted to the Company by the Client hereunder, and subject to the terms and conditions set forth herein, the Company shall pay to the Client cash payments totaling $[________] (such aggregate amount, the “Initial Advisory Payment”). The Initial Advisory Payment is not a loan and shall not be considered principal on a debt. All payments of the Initial Advisory Payment shall be made via wire transfer or other immediately available funds to an account designated by the Client. The Client acknowledges that the Initial Advisory Payment (whether paid in one or more installments), together with the funding of brand initiatives and provision of services, constitutes fair and adequate consideration for the rights and payment obligations assumed by the Client under this Agreement. The Company shall pay to the Client $[________] of the Initial Advisory Payment within 30 days following the Effective Date. The remaining unpaid balance of the Initial Advisory Payment shall be guaranteed by the Company and shall be payable to the Client by the Outside Date. The Company may fund such remaining balance from the proceeds of the Series Offering; provided, however, that to the extent the Series Offering does not generate sufficient proceeds to pay the remaining balance in full by the Outside Date, the Company shall be obligated to pay any shortfall from its own funds. Unless otherwise agreed by the Parties in writing, the full remaining balance of the Initial Advisory Payment must be paid no later than the earlier of (i) the date that is five (5) months following the date on which the SEC issues a notice of qualification for the Series Offering under Regulation A (the “Qualification Date”) and (ii) the date that is twelve (12) months following the Restatement Date (such earlier date, the “Outside Date”). The Company’s obligation to pay the remaining balance of the Initial Advisory Payment in full by the Outside Date is unconditional and shall not be subject to the occurrence of the Initial Closing or any closing of the Series Offering; provided, however, that the sole and exclusive consequence of the Company’s failure to pay the full Initial Advisory Payment by the Outside Date (whether such failure results from insufficient proceeds of the Series Offering, inadequacy of the Company’s other funds, or any other reason) shall be the automatic adjustment set forth in Section 8.3(a), and neither Party shall have any other right, remedy, or claim (at law, in equity, or otherwise) with respect to any unpaid portion of the Initial Advisory Payment after the Outside Date. If, as of the Outside Date, the Company has not paid the full Initial Advisory Payment to the Client, the Brand Percentage shall be automatically adjusted as of the Outside Date in accordance with Section 8.3(a), without any further action, notice, election, or instrument by either Party. All other obligations of the Parties under this Agreement, including the Company’s obligation to provide Advisory Services (as adjusted pursuant to Section 2.7) and the Client’s obligation to pay the Brand Amount (at the Adjusted Brand Percentage, if applicable), shall commence on the Commencement Date and shall not otherwise be affected by whether the Initial Advisory Payment has been paid in full. For the avoidance of doubt, following payment in full of the Initial Advisory Payment, the Company shall have no obligation to pay any proceeds from the Offering to the Client.

 

4.2 Taxes on Initial Advisory Payment. The Client shall be solely responsible for the payment of all taxes that may be due in relation to his receipt of the Initial Advisory Payment. The Company shall not be required to indemnify or “gross up” the Client for the amount of any such taxes. The Client shall indemnify the Company for and hold it harmless from and against any taxes of the Client, which may be sought against, imposed upon or suffered by the Company or which the Company may incur as a result of the Company’s failure to deduct and withhold such taxes from the Initial Advisory Payment

 

4.3 Collection of Brand Amount. During the Term, the Brand Amount shall be collected from the Client’s Brand Income through (i) the deposit of one hundred percent (100%) of the Client’s Brand Income directly into the Participation Account established at the Designated Bank and subject to the Account Control Agreement on a springing-control basis as set forth in Section 4.3(c), and (ii) an automatic recurring transfer, established and maintained by the Client, of the Brand Amount from the Participation Account to an account designated by the Company in the name of Agentiq Sports 1 Series [__________] (the “Company Account”) on a bi-weekly basis as set forth in Section 4.3(e), in each case with the direct remittance obligations set forth in Section 4.3(g) serving as the fallback mechanism. The timing and procedures for such collections are as follows:

 

(a) Primary Collection Mechanism. As the primary method for collecting Brand Amounts, the Client shall: (i) open and maintain the Participation Account at a bank or financial institution that is willing to execute the Account Control Agreement and is otherwise reasonably acceptable to the Company; (ii) execute and deliver the Account Control Agreement providing for springing control as described in Section 4.3(c); (iii) designate and direct one hundred percent (100%) of the Client’s Brand Income to be deposited directly into the Participation Account, including by establishing direct deposit with, and delivering payment directions to, each team, league, employer, and other current and future payor of Brand Income, and shall promptly provide the Company with documentary proof thereof; and (iv) establish and maintain the automatic bi-weekly transfer of the Brand Amount from the Participation Account to the Company Account as described in Section 4.3(e), and shall promptly provide the Company with documentary proof of the establishment and maintenance of such transfer. The Client shall take all further actions reasonably requested by the Company or the Manager to establish, perfect, maintain, and give effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer, and the Account Control Agreement.

 

(b) Direct Deposit of Brand Income. All Brand Income shall be paid directly into the Participation Account. The Client shall not direct, request, permit, or cause any payor to deposit Brand Income into any other account or to pay Brand Income to the Client directly, except as expressly permitted under Section 4.3(g) or Section 4.3(j).

 

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(c) Account Control Agreement; Springing Control; Company Sweep and Release of Balance. The Account Control Agreement shall be a three-party agreement among the Company (acting through the Manager), the Client, and the Designated Bank, and shall provide that: (1) the Designated Bank acknowledges the Company’s security interest in the Participation Account from and after the execution of the Account Control Agreement; (2) the Client shall retain ordinary control over the Participation Account, including the right to operate the account and to direct the disposition of funds therein, unless and until a Control Trigger Event occurs; (3) upon the occurrence and during the continuance of a Control Trigger Event, the Company or the Manager may deliver a notice of exclusive control to the Designated Bank, after which the Designated Bank shall comply solely with the instructions of the Company or the Manager and shall not comply with any instructions of the Client concerning the Participation Account; and (4) the Designated Bank subordinates, and agrees not to exercise, any right of setoff, recoupment, or banker’s lien against the Participation Account, except with respect to returned items, chargebacks, and the Designated Bank’s customary account fees and charges. A “Control Trigger Event” means a payment default by the Client under this Agreement that remains uncured beyond the thirty (30) day cure period set forth in Section 4.5. While a notice of exclusive control is in effect, Within the Sweep Deadline after any Brand Income is credited to the Participation Account, the Company or the Manager may instruct the Designated Bank to transfer to the Company Account an amount equal to the Brand Amount applicable to such Brand Income, plus any accrued and unpaid amounts then due and payable by the Client to the Company under this Agreement, and, Promptly following such transfer, shall instruct the Designated Bank to transfer the Release Amount to the Client’s Personal Account. Once the applicable payment default has been cured, control of the Participation Account shall spring back to the Client and the Company or the Manager shall promptly rescind any notice of exclusive control.

 

(d) Ministerial Control Over Client Funds. The Company’s control over the Participation Account is solely for collection, verification, sweep, release, and enforcement purposes. The Company has no ownership interest in the Release Amount, and shall cause the Release Amount to be released to the Client’s Personal Account within the period required by Section 4.3(c), subject to returned items, bank holds, payor reversals, bona fide disputes, applicable law, and the terms of the Account Control Agreement.

 

(e) Automatic Bi-Weekly Transfer of Brand Amount. The Client shall establish and maintain an automatic transfer, on a bi-weekly basis, of the Brand Amount (i.e., the Brand Percentage of all Brand Income deposited into the Participation Account) from the Participation Account to the Company Account. The Client shall configure such transfer in an amount and with a frequency sufficient to remit the full Brand Amount as and when Brand Income is received, shall not cancel, revoke, reduce, suspend, or modify such transfer without the Company’s prior written consent, and shall provide the Company with reasonable evidence of the establishment and maintenance of such transfer upon request. The Client’s retention of the balance of Brand Income remaining in the Participation Account after each such transfer shall not affect the Company’s security interest in, or right to receive, the Brand Amount.

 

(f) No Revocation or Modification. The Client shall not revoke, amend, supersede, replace, terminate, or otherwise interfere with the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer described in Section 4.3(e), the Participation Account, or the Account Control Agreement without the Company’s prior written consent, except to the extent required by applicable law, league rules, collective bargaining agreement requirements, or payor policy. Any change required by such law, rule, or policy shall be implemented in a manner that preserves the Company’s economic and collection rights to the maximum extent practicable.

 

(g) Fallback Direct Remittance by Client. If, for any reason, any Brand Income is not deposited into the Participation Account, or any Brand Amount is not transferred to the Company Account (including by reason of a Collection Failure, the absence of an effective Account Control Agreement, the failure of any payor to deposit Brand Income into the Participation Account, the failure or cancellation of the automatic bi-weekly transfer, or any direction by the Client in contravention of this Section 4.3), the Client shall receive such Brand Income as agent of the Company and shall hold the Brand Amount portion thereof in trust for the Company. In such event, the Client shall, acting as the Company’s agent solely for purposes of receiving and remitting such funds, remit such Brand Amount to the Company by wire transfer in immediately available funds no later than fifteen (15) days after the Client (or any person on the Client’s behalf) receives the corresponding Brand Income payment. This Section 4.3(g) shall apply automatically without any requirement that the Company prove the Client caused or contributed to the failure of direct deposit or transfer, and shall be in addition to (and not in lieu of) the Client’s obligations under Sections 4.3(a) through (f) and the Company’s remedies under this Agreement.

 

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(h) Reconciliation and Overpayments. The Company shall reconcile sweeps from the Participation Account against actual Brand Income on a periodic basis. If the Company sweeps more than the Brand Amount properly payable with respect to any Brand Income, the Company shall return or credit the excess to the Client’s Personal Account within ten (10) business days after discovery or final determination of the overage. If the Company sweeps less than the Brand Amount properly payable with respect to any Brand Income (including by reason of a Collection Failure or amounts that bypassed the Participation Account), the Client shall pay the deficiency to the Company in accordance with the procedure set forth in Section 4.3(g).

 

(i) Bank Fees, Returned Items, and Reversals. As between the Client and the Company, the Client shall be responsible for all account opening and maintenance fees, returned items, chargebacks, bank holds, reversals, insufficient funds charges, and similar items relating to the Participation Account or to Brand Income deposits, except that the Company shall be responsible for fees and charges attributable solely to its own administrative instructions to the Designated Bank unless otherwise agreed in writing. Allocation of such items as between the Client, the Company or Manager, and the Designated Bank shall be governed by the Account Control Agreement.

 

(j) Compliance Savings Clause. The collection mechanism set forth in this Section 4.3 shall apply only to the extent permitted by applicable law, league rules, collective bargaining agreement requirements, payroll rules, and payor policies. If any component of the mechanism is not permitted with respect to any payor or payment, the Parties shall cooperate in good faith to implement the closest lawful alternative that preserves the Company’s right to receive the Brand Amount, and the fallback remittance obligation under Section 4.3(g) shall continue to apply with respect to any Brand Income not captured by the Participation Account until such alternative is implemented.

 

(k) No Set-off; Taxes. All amounts payable by the Client to the Company hereunder shall be paid in full without set-off, deduction, or counterclaim, except as may be otherwise expressly provided in this Agreement. The Client shall be responsible for any taxes applicable to the Client’s receipt of Brand Income (as between the Client and the Company), and the Client’s payments of the Brand Amount shall be made without deduction for taxes, except to the extent that any withholding may be required by law. If the Client is required by law to withhold any portion of a Brand Amount payment as tax and remit such withholding to a taxing authority, the Client shall promptly notify the Company, provide evidence of such withholding and remittance, and cooperate with the Company to ensure the Company receives credit for such tax payment. Any amounts withheld and paid to the government on the Company’s behalf shall be treated as paid to the Company for purposes of the Client’s obligations. The Company (or Manager) will be responsible for its own income taxes on amounts it receives. The Company agrees to indemnify and hold the Client harmless from any taxes imposed on the Company (as a separate taxpayer) that are sought from the Client solely because the Client failed to withhold such taxes from payments to the Company, provided the Client has complied with its obligations under this Section.

 

4.4 Blocked Payments. In the event that the Client, the Company, the Manager, the Designated Bank, or any payor is prohibited by any law, regulation (including currency control regulations), league rule, or other legal or regulatory restriction from establishing, maintaining, or giving effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer described in Section 4.3(e), the Account Control Agreement, the fallback remittance obligation under Section 4.3(g), or any other component of the collection mechanism, the affected Party shall immediately notify the other Party. At the Company’s option, the Client shall either: (a) deposit the affected amounts in an interest-bearing account in the name of the Company (or for the benefit of the Company) in a jurisdiction where such deposit is permitted, or (b) cooperate with the Company to promptly find an alternative lawful method to transfer or credit the funds to the Company that preserves the Company’s economic and collection rights to the maximum extent practicable. The Client’s obligation to ultimately pay such amount to the Company shall not be extinguished by the blocking law or restriction, and any such payment shall be made as soon as legally allowed, and any costs of compliance or financial loss due to delay may be allocated as appropriate between the Parties in good faith or pursuant to applicable law.

 

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4.5 Late Payments; Interest; Late Fees. Time is of the essence in the collection and remittance of Brand Amounts. As used herein, a “payment default” means any failure to deposit Brand Income into the Participation Account, to transfer the Brand Amount to the Company Account, to release the Brand Amount to the Company, or to remit the Brand Amount under Section 4.3(g), in each case when required under this Agreement. The Client shall have a cure period of thirty (30) days after the date the applicable Brand Amount became due to cure any payment default. If a payment default is not cured, the following late fees shall apply, in each case based on the number of days the applicable Brand Amount remains unpaid after its due date, as liquidated damages and not as a penalty: (i) for amounts unpaid for twenty (20) days or fewer, no late fee shall apply (grace period); (ii) for amounts that remain unpaid for more than twenty (20) days but not more than thirty (30) days, a late fee equal to the greater of $5,000 or five percent (5%) of the unpaid Brand Amount; (iii) for amounts that remain unpaid for more than thirty (30) days but not more than sixty (60) days, a late fee equal to the greater of $15,000 or ten percent (10%) of the unpaid Brand Amount; and (iv) for amounts that remain unpaid for more than sixty (60) days, a late fee equal to the greater of $25,000 or fifteen percent (15%) of the unpaid Brand Amount, plus, at the Company’s election, acceleration of all Brand Amount obligations payable in respect of Brand Income reasonably anticipated to be earned by the Client through the end of the then-current calendar year, which accelerated amount shall become immediately due and payable. In addition to the foregoing late fees, the unpaid amount shall accrue interest in favor of the Company from the date due until the date paid at the lesser of: (a) the Prime Rate plus 3% per annum, compounded monthly (where “Prime Rate” means the prime lending rate as published in the Wall Street Journal on the first business day of the applicable month), or (b) the maximum rate permitted by applicable law. Interest on late payments shall be due and payable upon demand. Any late fees and accrued interest payable under this Section 4.5 shall, when owed, constitute amounts due and payable by the Client to the Company under this Agreement, and the Company (or the Manager on its behalf) may deduct and collect such amounts directly from the Participation Account, including by instructing the Designated Bank to transfer such amounts to the Company Account, in the same manner as, and together with, the Brand Amount under Section 4.3(c). The Parties acknowledge that the late fees set forth in this Section 4.5 are a reasonable estimate of the damages the Company would incur (including administrative, monitoring, investor reporting, and enforcement burdens), which would be difficult or impracticable to calculate at the time of contracting. The accrual or payment of interest or late fees under this section shall not limit any other rights or remedies of the Company due to the Client’s failure to pay amounts when due.

 

4.6 Disclosure of Material Breach. The Client acknowledges that the Company may have investors or stakeholders entitled to information about the Company’s assets and agreements. Accordingly, the Client agrees that in the event the Client materially breaches this Agreement, including by reason of any failure to pay any Brand Amount when due, any material Collection Failure, any revocation, modification, or repudiation of the direct deposit of Brand Income or the automatic bi-weekly transfer, or any failure to execute or maintain the Account Control Agreement, in each case that is not cured within any applicable cure period, the Company (or the Manager on the Company’s behalf) shall have the right to disclose the existence of such breach (including the Client’s name and the nature of the default), but only to the extent legally required, in any required filings, reports, or investor communications. The Company shall not make any voluntary public statement regarding such breach beyond what is necessary to comply with applicable law and the Company’s investor-reporting obligations. the Company must give the Client at least fifteen (15) days’ prior written notice of its intent to make such a disclosure (unless a shorter period is required to comply with law or regulation) and an opportunity within that time to cure the default, and any such disclosure shall be reviewed by the Company’s securities counsel prior to publication. If the Client cures the default within the notice period, the Company shall refrain from publicly disclosing the default. Nothing in this section shall prevent the Company from pursuing any other legal or equitable remedies for breach.

 

4.7 Payments Upon Dissolution or Non-Existence of the Company. In the event that the Company (the designated series of the Master LLC that is a party to this Agreement) is dissolved, ceases to exist, or is otherwise unable to receive payments under this Agreement for any reason, the Client’s obligation to pay the Brand Amount and any other amounts due hereunder shall continue in full force and effect. In such event, all such payments shall be made directly to the Manager, on the Company’s members’ behalf in accordance with the procedures specified in Section 8.8(b) or to such other person or entity as the Manager may designate in writing, and the Manager or its designee shall be entitled (i) to enforce all rights and remedies of the Company under this Agreement, (ii) to receive sweeps from the Participation Account in lieu of the Company, and (iii) to issue instructions to the Designated Bank under the Account Control Agreement and to deliver replacement payment directions to payors, in each case as control party or successor servicer. The Client shall be provided with written notice of any such change in payment instructions and shall comply with such instructions promptly upon receipt and shall reasonably cooperate with the Manager or its designee, the Designated Bank, and any payor to give effect to the foregoing.

 

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4.8 Security. To secure the prompt and complete payment and performance of all obligations of the Client under this Agreement, the Client hereby grants to the Company a continuing security interest in and to all of the Client’s right, title, and interest in and to all of the following, in each case whether now existing or hereafter arising: (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income; (b) the Participation Account and any successor accounts, and all funds and other property at any time credited to or held therein; (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement; and (d) all proceeds of any of the foregoing (collectively, the “Collateral”). The security interest granted hereby shall attach immediately upon the Company’s payment to the Client of any portion of the Initial Advisory Payment (including the initial installment under Section 4.1), without regard to whether the full Initial Advisory Payment has been paid, and shall continue in full force and effect until all obligations of the Client under this Agreement have been satisfied in full. For the avoidance of doubt, partial payment of the Initial Advisory Payment shall be sufficient to cause the security interest to attach, and the security interest shall secure all present and future obligations of the Client hereunder, including those arising from subsequent payments of the Initial Advisory Payment. The Client hereby authorizes the Company to file one or more UCC-1 financing statements, and any amendments or continuations, in any jurisdiction deemed necessary by the Company, describing the collateral as “all of the Client’s right, title, and interest in and to all (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income; (b) the Participation Account and any successor accounts, and all funds and other property at any time credited to or held therein; (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement; and (d) all proceeds of any of the foregoing, in each case as defined in the Brand Advisory Agreement between the Client and the Company, dated as of the Effective Date thereof.” The Client further agrees to execute and deliver the Account Control Agreement and such other control agreements, account control acknowledgments, financing statements, perfection certificates, and other documents, and to take such further actions, as the Company may reasonably request to perfect, maintain, and enforce the Company’s security interest in the Collateral. If, as of the Outside Date, less than the full Initial Advisory Payment has been paid to the Client and the Brand Percentage is adjusted to the Adjusted Brand Percentage pursuant to Section 8.3(a), the Company shall, promptly following the Outside Date, file an amendment to each UCC-1 financing statement then on file to reflect the resulting proportionate reduction in the Brand Amount, and shall provide the Client with evidence of such filing upon request. Furthermore, in the event of a final, non-appealable judgment in favor of the Company for unpaid Brand Amounts or other amounts due under this Agreement, the Client agrees to cooperate with the Company in any lawful process to collect such judgment, including but not limited to providing information regarding the Client’s employers, payors, and income sources, and not contesting any lawful wage garnishment or similar collection proceedings initiated by the Company in accordance with applicable law. In the event of a payment default by the Client under this Agreement that remains uncured after any applicable notice and cure period, the Company (or the Manager on its behalf) shall have the right to notify any third-party payor of Brand Income (including, without limitation, any team, league, employer, or other entity obligated to pay Brand Income to or for the benefit of the Client) of the Company’s security interest in the Brand Income and to enforce the Account Control Agreement and the payment directions in accordance with their respective terms. If the Company obtains a court order, garnishment order, or similar legal process with respect to the Brand Income, the Company may provide such order to the applicable payor, and the payor shall be authorized and directed to comply with such order, including by remitting directly to the Company any amounts specified therein. The Client shall not take any action to interfere with or prevent any payor’s compliance with such notice or order and shall cooperate in good faith with the Company to facilitate the enforcement of the Company’s rights. In furtherance of the Company’s rights under this agreement and this Section 4.8, the Client hereby irrevocably constitutes and appoints the Manager, acting on behalf of the Company, with full power of substitution and resubstitution, as the Client’s true and lawful proxy and attorney-in-fact, with full power and authority in the Client’s name, place, and stead, and in the name of the Company or otherwise, to take any and all actions and to make, execute, acknowledge, swear to, deliver, file, record, and publish any and all agreements, instruments, certificates, financing statements (including UCC-1 financing statements and any amendments, continuations, terminations, or assignments thereof), control agreements (including the Account Control Agreement), payment directions, notifications to payors, consents, amendments, releases, endorsements, assignments, instructions to the Designated Bank, instructions to any other depository institution, and other writings, as the Manager may determine to be necessary or appropriate to establish, maintain, perfect, continue, protect, preserve, evidence, or enforce the Company’s security interest in, lien on, or other rights with respect to the Collateral, including the Participation Account and all funds and other property credited thereto, all rights under the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement, all Brand Income, and all proceeds of any of the foregoing. Without limiting the generality of the foregoing, the Manager is authorized to (a) endorse the Client’s name on any check, draft, instrument, or other item of payment representing Brand Income or proceeds of Collateral; (b) deliver, replace, renew, or modify payment directions to any payor in accordance with Section 4.3; (c) issue instructions to the Designated Bank under the Account Control Agreement; (d) execute and file any document required to perfect or continue the Company’s security interest in the Collateral in any jurisdiction; and (e) take any other action contemplated by Sections 4.3 or 4.8 of this Agreement. Notwithstanding anything to the contrary in this Section 4.8, the foregoing proxy and power of attorney is limited to, and the Manager shall exercise it solely for, the following purposes: (i) filing, maintaining, amending, and continuing UCC financing statements with respect to the Collateral; (ii) executing and delivering the initial Account Control Agreement and payment directions; and (iii) taking ministerial collection actions, but, with respect to clause (iii), only following a payment default that has been adjudicated by a court or determined in arbitration and that remains uncured after any applicable notice and cure period. The Manager shall exercise the proxy and power of attorney only in good faith and for cause. The Client hereby ratifies and confirms, and agrees to ratify and confirm, all actions taken by the Manager in accordance with this proxy and power of attorney. This proxy and power of attorney is coupled with an interest, is granted to secure the performance of the Client’s obligations under this Agreement and to protect the Company’s security interest in the Collateral, and is irrevocable, and shall not be terminated or otherwise affected by the death, disability, incapacity, dissolution, insolvency, or bankruptcy of the Client, by any subsequent revocation or attempted revocation by the Client, or by the expiration or termination of this Agreement, and shall continue in full force and effect until all obligations of the Client under this Agreement have been fully and indefeasibly satisfied. If the Manager is replaced as the manager of the Company or the Master LLC, the successor manager shall automatically be substituted as the proxy and attorney-in-fact under this paragraph. Nothing in this paragraph shall obligate the Manager to take any action, and the Manager shall have no liability to the Client for any action taken or not taken in good faith under this proxy and power of attorney, except for its own gross negligence or willful misconduct.

 

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Notwithstanding anything to the contrary in this Section 4.8, the security interest granted hereunder, and the Collateral, shall not extend to, attach to, or otherwise encumber any Excluded Income, any funds held in or credited to the Personal Account, or any other assets, property, income, or rights of the Client that do not constitute the Brand Amount, the Client’s contractual right to receive the Brand Percentage portion of Brand Income, the Participation Account, the rights described in clause (c) above, or the proceeds of any of the foregoing.

 

The Company shall not exercise any rights or remedies with respect to the security interest granted hereunder—other than taking such actions as are necessary to create, perfect, continue, or maintain the perfection of such security interest—unless and until a payment default has occurred and remains uncured beyond the thirty (30) day cure period set forth in Section 4.5. This limitation mirrors, and is consistent with, the springing-control arrangement applicable to the Participation Account under Section 4.3(c).

 

For the avoidance of doubt, any UCC-1 financing statement (and any amendment or continuation thereof) filed by the Company in connection with this Agreement shall describe the Collateral solely by reference to the specific categories set forth in this Section 4.8, and shall not describe the Collateral as “all assets,” “all personal property,” or using any similarly broad or generic description.

 

The Parties further acknowledge and confirm, as set forth above in this Section 4.8 and in Section 8.3(a), that if the Brand Percentage is adjusted downward to the Adjusted Brand Percentage following the Outside Date, the Company shall promptly file an amendment to each UCC-1 financing statement then on file to reflect the resulting proportionate reduction in the Brand Amount and the Collateral, demonstrating that the security interest is self-limiting and contracts in proportion to the portion of the Initial Advisory Payment actually funded.

 

4.9 Deferred Compensation Election. If the Client enters into any player contract that includes material deferred compensation (meaning deferred compensation exceeding $1,000,000 in the aggregate), the Client shall promptly notify the Company of such contract, including the total guaranteed value, payment schedule, and Luxury Tax Value. Within thirty (30) days after such notice, the Company shall elect one of the following:

 

(a) Cash Basis. The Brand Amount shall be calculated and paid on each actual cash payment as received by the Client in accordance with Section 4.3; or

 

(b) Luxury Tax Value Basis. The Brand Amount shall be calculated on the Luxury Tax Value for each contract year and paid within thirty (30) days after the start of each such contract year, subject to a true-up upon the final payment under such contract.

 

If the Company does not timely elect, the Cash Basis under clause (a) shall apply. The Company’s election shall be irrevocable with respect to each contract. For the avoidance of doubt, the Parties acknowledge that if the Company elects the Luxury Tax Value Basis, the Client may be required to pay Brand Amounts in years when the Client does not receive corresponding cash payments, and the Client shall be solely responsible for ensuring sufficient liquidity to make such payments.

 

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5. Reporting and Audit Rights

 

5.1 Books and Records. The Client (and, to the extent applicable, the Client’s Affiliates involved in the receipt of Brand Income) shall maintain complete and accurate books and records of all contracts generating Brand Income, Brand Income earned or received, and calculations of Brand Amounts payable to the Company, in accordance with generally accepted accounting principles or other recognized basis reasonably acceptable to the Company. Such records shall include, without limitation, copies of contracts evidencing Brand Income, pay stubs, earning statements, invoices, bank statements showing receipt of Brand Income, and records of any expenses or deductions claimed under the definition of Brand Income. The Client shall retain all such records at least throughout the Term and for a period of 12 months following the termination or expiration of this Agreement (or such longer period as may be required by law). This recordkeeping obligation does not apply to periods before the Commencement Date. In addition to the foregoing, the Client shall provide to the Company (or authorize the Company or Manager to obtain directly from the applicable payor or Designated Bank) Participation Account statements, deposit confirmations, payor confirmations of receipt and implementation of the direct deposit of Brand Income, and payroll direct deposit records evidencing the routing of Brand Income into the Participation Account. The Company’s audit rights set forth in Section 5.3 shall extend to any Brand Income that bypasses the Participation Account, regardless of the reason therefor.

 

5.2 Periodic Reporting. Prior to the execution of this Agreement by the Parties, the Client shall provide to the Manager a copy of his contract pursuant to which the Brand Income is earned. Within 10 business days after the June 30th and December 31st during the Term, the Client shall deliver to the Manager a written report (each, a “Semi-Annual Report”) in a format reasonably specified or agreed to by the Company, which shall include: (a) the total Brand Income earned or received by the Client during that six month period (itemized by source or contract, and by payment date and amount); (b) the calculation of the Brand Amount owed to the Company for that six month period (including any deductions permitted under the Brand Income definition, with reasonable detail); (c) year-to-date summaries of Brand Income and Brand Amount; and (d) any other information reasonably requested by the Company and related to the Client’s performance of this Agreement or the Client’s activities in the Principal Business that may affect current or future Brand Income. Together with each Semi-Annual Report, the Client shall provide copies of any documentation evidencing the Brand Income reported, such as copies of pay stubs, remittance advices, royalty statements, or similar documents for that six-month period.

 

5.3 Audit Rights. The Company (or the Manager or any designee acting on the Company’s behalf) shall have the right, during the Term and for 12 months after the Term (the “Audit Period”), to examine, audit, and copy the relevant books, records, and accounts of the Client and the Client’s Affiliates to verify the accuracy of any Semi-Annual Reports and the payments of the Brand Amount. Any such audit shall be limited to the books, records, and accounts directly related to Brand Income; provided, however, that the Company shall retain the right to audit Brand Income from all sources, including any Brand Income that bypasses or is not deposited into the Participation Account or any other designated payment mechanism. The Company may not audit the same period more than twice, and any audit shall not cover periods earlier than the then-current and two (2) immediately preceding calendar years at the time of audit (except that audits during the Audit Period after termination may cover the entire Term). Any such audit shall be conducted at the Company’s expense, provided that if an audit reveals an underpayment of more than five percent (5%) of the Brand Amount due for the period examined, the Client shall reimburse the Company for the reasonable, documented costs of the audit. If an audit or review reveals that the Client has underpaid the Brand Amount, the Client shall promptly (and in any event within 10 days of notice) pay to the Company the amount of the underpayment plus any applicable interest as set forth in Section 4.5. If an audit reveals the Client overpaid the Brand Amount, the Company shall promptly refund the overpaid amount to the Client (or, at the Client’s election, the Client may credit such overpayment against the next installment(s) of Brand Amount coming due, if any).

 

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5.4 Audit Procedure. The Company shall provide the Client with at least fourteen (14) days’ advance written notice of its intention to conduct an audit under this Agreement and will reasonably accommodate the Client’s schedule and operations in terms of timing and scope. Any audit shall be conducted by a nationally recognized independent accounting firm or another firm reasonably acceptable to the Client, during normal business hours at the location(s) where the relevant records are maintained, and in such a manner as not to unreasonably interfere with the Client’s business. The Client may require the auditor to sign a reasonable non-disclosure agreement if the auditor is not already under a duty of confidentiality to the Company or Manager. The Parties shall direct any third-party payors (such as teams or leagues) to cooperate with requests to provide confirmation of payments made to the Client as needed for the audit.

 

5.5 Confidentiality of Audit Findings. All information reviewed or obtained by the Company or its auditors during any audit shall be deemed Confidential Information of the Client, and the Company shall not use or disclose such information for any purpose other than verification of compliance with this Agreement and enforcement of the Company’s rights. The Parties shall, however, be entitled to use the results of any audit in any dispute resolution or legal proceedings concerning this Agreement, subject to appropriate protective orders or confidentiality arrangements.

 

6. Restrictions and Negative Covenants

 

6.1 Exclusive Relationship; No Similar Agreements. The Client represents and warrants that, as of the Effective Date, the Client has not entered into any contract or arrangement (other than this Agreement) under which the Client has sold, assigned, or otherwise transferred to any third party any right to receive payments or income based on the Client’s future earnings or revenue from the Principal Business. During the Term, the Client shall not, without the prior written consent of the Company, enter into any agreement or transaction with any other party that is similar in nature to this Agreement. Specifically, the Client shall not agree to pay or assign to any third party any portion of the Client’s future Brand Income (or any income substantially similar to Brand Income) in exchange for upfront or ongoing payments or services. This restriction does not prohibit the Client from engaging professional agents, managers, or advisors in the ordinary course of the Client’s career, even if such representatives are paid a percentage of the Client’s income as commission or fees. However, any such arrangement must not conflict with the Client’s obligations to pay the Brand Amount to the Company or diminish the Company’s rights with respect to any installment of the Brand Amount. Notwithstanding the foregoing, if the Client receives a bona fide offer from any third party to enter into a transaction that would require consent under this Section 6.1 (a “Third-Party Offer”), the Client shall first deliver to the Company written notice of the material terms thereof, including the identity of the counterparty and all material economic terms (a “ROFR Notice”). The Company shall have fifteen (15) business days following receipt of the ROFR Notice to elect to enter into a transaction with the Client on the same or more favorable terms. If the Company does not timely elect to match, or if the Parties fail to execute a definitive agreement within thirty (30) days of the Company’s election, the Client may consummate the transaction with the third party on terms no more favorable to the third party than those in the ROFR Notice, provided such transaction closes within ninety (90) days, after which the Client must re-comply with this process. For the avoidance of doubt, this Section 6.1 and the right of first refusal hereunder apply only to a sale, assignment, pledge, or similar monetization of Brand Income or of future on-field income substantially similar to Brand Income, and shall not apply to any ordinary-course agent, management, endorsement, sponsorship, name, image, or likeness, or other off-field commercial arrangement entered into by the Client.

 

6.2 No Circumvention. The Client shall not take any action for the purpose of defeating, reducing, or delaying the Company’s right to receive the Brand Amount. Without limiting the generality of the foregoing, the Client shall not intentionally defer or decline any Brand Income, or divert any revenue that would otherwise constitute Brand Income into forms or channels that would constitute Excluded Income or would be paid to a third party (except for legitimate payments to Affiliates or agents as permitted herein), with the primary intent of preventing the Company from receiving the Brand Amount in full. The Client also shall not form or use any corporation, partnership, trust, or other entity or contractual arrangement to hide or shield Brand Income from the Company. Any entity through which the Client earns Brand Income (e.g., if the Client forms a personal services company to receive income) shall be deemed an Affiliate of the Client and the Client shall cause such entity to comply with the Client’s obligations under this Agreement, including payment of Brand Amount and cooperation with audits.

 

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6.3 Limits on Publicity and Fundraising. The Client shall not use the Company’s or the Manager’s name or trademarks, or refer to this Agreement, in any press release or public statement except as permitted under Section 11.4 or with the Company’s prior written consent. Further, the Client agrees not to promote, market, or solicit investments in any securities of the Company, Agentiq Sports 1 Series LLC, or any other Company thereof, or other securities offering related to this Agreement, unless specifically requested or approved in writing by the Company or Manager. Unsolicited inquiries the Client receives from potential investors or media regarding the Company shall be referred to the Manager.

 

6.4 Secondary Trading Launch; Automatic Opt-In; Promotional Support. The Company (acting through the Manager) or an affiliate may operate or make available an alternative trading system (the “ATS”) on which the Company’s membership interests may be traded in secondary transactions, subject to applicable law and platform rules. Upon written notice from the Company (acting through the Manager) that secondary trading functionality for the trading of the Company’s membership interests has launched on the ATS (the “Secondary Trading Launch”), the Company’s membership interests, if eligible, will be automatically enabled for secondary trading under applicable platform rules and this Agreement. The Company shall retain the irrevocable right to enable the Company’s membership interests for secondary trading on the ATS. For the avoidance of doubt, such automatic opt-in applies only to the Company’s membership interests and does not create any new obligation for the Client, and the Client shall have no obligation to participate in or promote secondary trading on the ATS absent a separate written agreement. The Parties acknowledge that the Secondary Trading Launch may, in the future, enable the Client to repurchase membership interests in the Company, which shall give him an indirect interest in the Company’s rights to receive and be paid the Brand Percentage. Following the Secondary Trading Launch, any promotional activities by the Client related to the ATS will be documented in a separate agreement or statement of work between the Company and the Client, which will set the specific deliverables, timing, and fees. Such activities will be limited to platform-level awareness and user education, subject to Company guidance and approval, and must comply with applicable law (including broker-dealer/finder restrictions) and clear, conspicuous influencer endorsement disclosures. No compensation will be tied to securities transactions, trading volume, proceeds, or other success-based or transaction-based metrics.

 

6.5 Compliance with Laws and League Rules. The Client shall perform his/her obligations under this Agreement, and shall pursue the Principal Business, in compliance with all applicable laws, regulations, and (if applicable) the rules and policies of any professional league or governing body relevant to the Client. The Client represents that nothing in this Agreement violates or causes a breach of any rule of any league, players’ association, or sanctioning body to which the Client is subject, and if any such conflict arises, the Client will promptly notify the Company. To the extent any provision of this Agreement is deemed to violate a mandatory rule or non-waivable regulation of a league or governing body, the Parties will cooperate in good faith to modify this Agreement as minimally as necessary to comply with such requirement while preserving the Parties’ economic intentions.

 

6.6 Player Not Issuer, Seller, or Solicitor; No Securities Activities. The Parties acknowledge and agree that the Client is not, and shall not be deemed to be, the issuer, promoter, seller, underwriter, placement agent, broker, dealer, finder, or solicitor of any securities in connection with the Series Offering, the ATS, or any other offering of membership interests in the Company, the Master LLC, or any series thereof. The securities offered in the Series Offering are membership interests issued by the Company, and the Series Offering is conducted by the Company through the Manager and its offering partners, including the registered broker-dealer (Andes Capital Group, LLC), the escrow agent (North Capital Private Securities Corporation), the transfer agent (Continental Stock Transfer & Trust Company), and the offering platform (Agentiq Sports, Inc.) engaged by the Company for such purpose. The Company shall not require the Client to engage in any activity constituting the offer, sale, or solicitation of securities without the Client’s prior written consent and a separate written agreement compliant with applicable securities laws. Nothing in this Agreement shall be construed to require the Client to participate in, promote, or make any statement in connection with any securities offering.

 

6.7 Nature of Promotional Obligations. The Parties acknowledge and agree that the autograph obligation under Section 2.5(a), the annual Fan Meet-Up under Section 2.5(b), the Ambassador Activities under Section 12.6, and any similar promotional or advisory obligations of the Client under this Agreement are brand-advisory promotional obligations forming part of the Advisory Services, and are not promotional obligations relating to the offer, sale, or solicitation of securities. Such obligations support the development of the Client’s personal brand and the value of the Advisory Services, and shall not be construed as the offer, sale, or solicitation of any securities.

 

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7. Representations and Warranties

 

7.1 Authority and Capacity. Each Party represents and warrants that it has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder. The individual signing this Agreement on behalf of the Company (through the Manager) is duly authorized to do so. If the Client is an individual, the Client is of legal age and capacity to contract in his/her jurisdiction of residence. If the Client has any legal guardian or other person with legal authority over the Client’s affairs (e.g., due to minor status or incapacity), such guardian has approved and co-signed this Agreement (or a separate consent) to validate the Client’s entry into this Agreement.

 

7.2 Independent Advice. The Client represents and warrants that the Client fully understands the terms and conditions of this Agreement, and that the Client has had the opportunity to be represented by an attorney, tax advisor, and other professional representatives of the Client’s choosing in the review, negotiation, and execution of this Agreement and performance of the Client’s obligations hereunder.

 

7.3 Binding Obligation. This Agreement constitutes a valid and binding obligation of each Party, enforceable against such Party in accordance with its terms, except as enforcement may be limited by bankruptcy or similar laws and general principles of equity. Each Party acknowledges that it had the opportunity to obtain independent legal advice with respect to this Agreement and that it has entered into this Agreement voluntarily, and each Party agrees not to challenge the validity or enforceability of this Agreement, except on the grounds of fraud in the inducement.

 

7.4 No Conflicts. The execution, delivery, and performance of this Agreement by the Parties does not and will not: (a) violate, conflict with, or result in a breach of any agreement, contract, or obligation to which such Party is a party or by which it is bound; or (b) require any consent, approval, or notice to any third party (except as has been obtained or provided). The Client specifically represents that he/she is not subject to any agreement or court order (including any with a sports team, league, sponsor, or prior financial partner) that would prohibit or materially impair the Client’s ability to perform this Agreement or to pay the Brand Amount to the Company as required.

 

7.5 Litigation and Compliance. The Client represents that there are no existing or, to the Client’s knowledge, threatened actions, suits, or proceedings at law or in equity before any court, tribunal, governmental authority or arbitrator that could reasonably be expected to adversely affect the Client’s ability to perform its obligations under this Agreement. The Client further represents that he/she is not in material violation of any law, regulation, or order applicable to the Client that would impact the Client’s performance or the benefits intended to be conferred on the Company hereunder.

 

7.6 Accuracy of Information. The Client confirms that all information provided by the Client to the Company or Manager regarding the Client’s personal and professional background, current contract(s), compensation, and other facts relevant to this Agreement (including any personal information schedule or disclosure provided as of the Effective Date) is true, correct, and complete in all material respects. The Client will promptly notify the Company of any material changes to such information.

 

7.7 Brokerage. Each Party represents that it has not engaged or used any broker or finder in connection with the negotiation or execution of this Agreement, and no person or entity is or will be entitled to any brokerage commission, finder’s fee, or similar compensation in connection herewith by reason of any action of that Party. The Client shall be solely responsible for any commission or fee owed to any agent or representative engaged by the Client in connection with this Agreement or the transactions contemplated (including any commission to an agent who assisted the Client in negotiating this Agreement).

 

7.8 No Other Revenue Assignments. The Client reaffirms that, except as disclosed to the Company in writing, the Client has not previously assigned, pledged, or granted to any person or entity a security interest in, or other lien or claim on, any portion of the Client’s Brand Income or future earnings from the Principal Business.

 

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7.9 Intellectual Property. The Client represents that the use of the Client Persona and any other intellectual property provided by the Client for the Company’s use (for example, photographs, logos, or content the Client supplies for marketing) will not infringe or violate the rights of any third party, including any copyright, trademark, privacy, publicity, or contractual rights of others. To the Client’s knowledge, any statements or endorsements made by the Client as part of the Advisory Services or any campaigns will be truthful and comply with applicable endorsement guidelines or laws.

 

7.10 Company Representations. The Company represents and warrants that: (a) it is validly formed and in good standing under the laws of Delaware as a designated series of Agentiq Sports 1 Series LLC; (b) the Manager has all necessary authority from Agentiq Sports 1 Series LLC and under the Company’s governing documents to enter into this Agreement on the Company’s behalf and to perform the obligations herein on behalf of the Company; (c) the execution and performance of this Agreement by the Company has been duly authorized by all necessary company action; and (d) the Company’s provision of Advisory Services to the Client will be performed in a professional and workmanlike manner by individuals or entities appropriately skilled and experienced in such services.

 

7.11 No Investment Advice. The Company and the Manager are not providing, and have not provided, the Client with any legal, tax, or investment advice regarding this Agreement. The Client acknowledges that he/she has been advised and encouraged to seek independent advice as to the legal and tax implications of this arrangement. The Company makes no representation regarding the tax treatment of the Initial Advisory Payment or the Brand Amount payments as to the Client.

 

7.12 No Prior Income Assignments, Liens, or Security Interests. The Client represents and warrants that, as of the Effective Date, the Client has not granted, assigned, pledged, or otherwise conveyed any security interest, lien, or other encumbrance in or to any portion of the Brand Income or any rights or proceeds relating thereto to any third party. The Client further represents that no person or entity other than the Company has any right, claim, or interest in the Brand Income that would conflict with the rights granted to the Company under this Agreement.

 

7.13 No Conflicting Account or Deposit Arrangements. The Client represents and warrants that, as of the Effective Date, the Client has not granted, executed, or delivered any deposit instructions, payment direction, lien, assignment, account control right, or other arrangement with respect to any payor of Brand Income or any deposit account that would conflict with, impair, or prevent the establishment, maintenance, or operation of the Participation Account, the direct deposit of Brand Income, the automatic bi-weekly transfer, or the Account Control Agreement, in each case as contemplated by Section 4.3.

 

8. Term and Termination

 

8.1 Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless earlier terminated as provided herein, shall continue until the earlier of: (a) the date that is two years after the Client’s official retirement or permanent cessation from actively engaging in the Principal Business (the “Termination Tolling Period”); provided, however, that if the Client resumes actively engaging in the Principal Business at any time during the Termination Tolling Period, this Agreement shall not terminate pursuant to this clause (a) and shall remain in full force and effect; and (b) the 25th anniversary of the Effective Date. The Term may also be terminated earlier by mutual written agreement of the Parties or as otherwise provided below.

 

8.2 Survival. Notwithstanding the end of the Term by expiration or early termination, the rights and obligations of the Parties with respect to any Brand Income earned by the Client during the Term (even if paid after the Term) shall survive and remain enforceable until fully satisfied. In addition, any provisions of this Agreement that by their nature are intended to survive, including but not limited to, Sections 4, 9.5, 10, 11, 13, 8.4 and 8.8(b), shall survive termination.

 

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8.3 Early Termination.

 

(a) Failure of Series Offering; Automatic Adjustment. The Parties acknowledge that the Company has paid, or is obligated to pay, $[______] of the Initial Advisory Payment to the Client within thirty (30) days following the Effective Date, and that this Agreement shall remain in full force and effect regardless of whether the Initial Closing of the Series Offering occurs or whether the Qualification Date occurs. Accordingly, neither Party shall have any right to terminate this Agreement solely on account of the failure of the Initial Closing or the Qualification Date to occur, or on account of the Company’s failure to pay the full Initial Advisory Payment by the Outside Date. If, as of the Outside Date, the Company has not paid the full Initial Advisory Payment, then, automatically and without any further action by either Party, effective as of the Outside Date: (i) the Company shall have no further obligation to pay, and neither Party shall have any further obligation or liability with respect to, any unpaid portion of the Initial Advisory Payment, and the Initial Advisory Payment shall be fixed at the aggregate amount actually paid to the Client on or prior to the Outside Date (the “Funded Amount”); and (ii) the Brand Percentage shall be adjusted to equal the product of (x) the Brand Percentage as originally set forth herein, multiplied by (y) a fraction, the numerator of which is the Funded Amount and the denominator of which is the Initial Advisory Payment (such adjusted percentage, the “Adjusted Brand Percentage”), and all references in this Agreement to the “Brand Percentage” shall thereafter refer to the Adjusted Brand Percentage. The foregoing adjustment is self-executing and requires no further calculation, notice, consent, or amendment; provided, that the Company shall notify the Client of the Adjusted Brand Percentage, as calculated from the Company’s books and records, which calculation shall be controlling absent manifest error, and the Client may request reasonable supporting documentation to verify such calculation. For the avoidance of doubt: (A) if the Funded Amount equals the full Initial Advisory Payment, the Brand Percentage shall not be adjusted; (B) by way of illustration, if neither the Qualification Date nor the Initial Closing occurs and the Funded Amount is $[Funded Amount], the Adjusted Brand Percentage would equal approximately [__]% ([Brand Percentage]% multiplied by $[Funded Amount]/$[Initial Advisory Payment]); and (C) any Brand Amount accrued with respect to Brand Income earned prior to the Outside Date shall remain payable at the rate then in effect. For the further avoidance of doubt, this Agreement shall continue in full force and effect following the Outside Date in accordance with its terms, with the Initial Advisory Payment fixed at the Funded Amount and the Brand Percentage as adjusted pursuant to this Section 8.3(a). The adjustments set forth in this Section 8.3(a) shall apply regardless of the reason the Company has not paid the full Initial Advisory Payment by the Outside Date (including, without limitation, the failure of the Series Offering, the failure of the Qualification Date to occur, the insufficiency of the Company’s other funds, or any other circumstance), and effective as of the Outside Date, each Party hereby irrevocably waives and releases any and all claims, demands, or causes of action (whether at law, in equity, in contract, in tort, or otherwise) against the other Party arising out of or relating to the Company’s failure to pay the full Initial Advisory Payment, including any claim for breach of the Company’s payment obligation under Section 4.1.

 

(b) Breach of this Agreement. If either Party materially breaches this Agreement, the non-breaching Party may give written notice to the breaching Party describing the breach in reasonable detail. The breaching Party shall have 30 days (or 10 days, in the case of a payment default or breach of Section 6.1) from receipt of such notice to cure the breach to the reasonable satisfaction of the non-breaching Party. If the breaching Party fails to cure within the cure period, the non-breaching Party may terminate this Agreement immediately by providing written notice of termination to the breaching Party. Termination of the Agreement for breach shall be without prejudice to any other rights or remedies the non-breaching Party may have, including the right to seek damages or specific performance. If the Company is the non-breaching Party and terminates due to the Client’s breach, (without limiting any other remedy) the Company shall be entitled to seek and recover the Brand Amount on any Brand Income earned by the Client through the date of termination and any additional equitable relief necessary to put the Company in the position it would have been had the Client performed its obligations.

 

(c) Collection Failures and Diversion. Without limiting Section 8.3(b), each of the following shall constitute a material breach of this Agreement by the Client: (i) any Collection Failure that is not cured within seven (7) business days after written notice from the Company; (ii) any revocation, modification, or repudiation of the direct deposit of Brand Income or the automatic bi-weekly transfer in contravention of Section 4.3(f); (iii) any refusal or failure by the Client to execute, deliver, or maintain the Account Control Agreement; and (iv) any intentional diversion, redirection, or instruction to redirect Brand Income away from the Participation Account, which clause (iv) shall be deemed an immediate material breach with no cure period and shall entitle the Company to exercise all remedies under this Agreement, including termination, recovery of unpaid Brand Amounts, and equitable relief.

 

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8.4 Clawback on Voluntary Early Exit. The Client acknowledges that the Company is entering into this Agreement and paying the Initial Advisory Payment (whether in one or more installments) with the expectation of sharing in the Client’s future Brand Income over a multi-year period. Accordingly, if the Client voluntarily ceases to engage in the Principal Business prior to the fifth anniversary of the Effective Date (the “Early Termination Date”) (for any reason other than Good Reason, as defined below), the Client shall repay to the Company, except as otherwise set forth below, the aggregate amount of the Initial Advisory Payment actually received by the Client by way of liquidated damages. Specifically, in the event of such early voluntary exit, the Client shall pay the Company an amount equal to (a) the aggregate Initial Advisory Payment actually received by the Client (whether in a single payment at Initial Closing or through multiple payments over additional closings), plus the lesser of (i) the Prime Rate plus 5% per annum, compounded monthly from the Early Termination Date to the date of repayment and (ii) the maximum rate permitted by applicable law, (b) minus all Brand Amount payments actually made by the Client to the Company prior to the Early Termination Date. Such repayment shall be due in full within 30 days after the Client’s cessation of the Principal Business; provided, that if such Brand Amounts paid to the Company exceeds the sum of (a) above, then no amounts shall be owed to the Company. The Parties agree that this repayment obligation is a reasonable estimate of a portion of the damages the Company would incur from the loss of anticipated Brand Income, and is not a penalty. Notwithstanding the foregoing, the repayment amount otherwise due under this Section 8.4 shall be reduced by fifteen percent (15%) for each of the first six (6) full years of the Client’s participation in the Principal Business following the Effective Date, and by an additional ten percent (10%) for the seventh (7th) full year of such participation, such that no amount shall be repayable under this Section 8.4 from and after the seventh (7th) anniversary of the Effective Date; and, in addition, no amount shall be repayable under this Section 8.4 if, as of the Early Termination Date, the aggregate Brand Amount payments actually made by the Client to the Company equal or exceed the sum of the aggregate Initial Advisory Payment actually received by the Client plus a twenty percent (20%) per annum internal rate of return thereon. This Section 8.4 shall not apply if the Client’s early cessation of the Principal Business is for Good Reason.

 

8.5 Definition of Good Reason. “Good Reason” for the Client’s voluntary early cessation of the Principal Business (e.g., retirement from professional athletics) shall exist only if the Client’s exit is due to a significant, documented injury, illness, or medical condition (a “Major Injury”) that either renders the Client physically or mentally unable to continue performing in the Principal Business or which, if the Client were to continue, would pose a substantial risk of permanent harm to the Client’s physical or mental health beyond the ordinary risks of the profession. For the avoidance of doubt, a documented mental-health condition shall constitute a Major Injury and Good Reason if it is certified by a licensed mental-health professional, subject to the same independent verification process set forth below for medical determinations. The existence of Good Reason shall be determined in good faith by the Parties. In the event of a disagreement as to whether a Major Injury constitutes Good Reason, the Parties shall submit the matter for determination by a qualified independent physician or, in the case of a mental-health condition, a qualified independent licensed mental-health professional: the Parties shall jointly select a physician or professional with relevant expertise, or if they cannot agree, each Party shall select one and those two shall jointly select a third with relevant expertise to make a final and binding determination. The Client shall be responsible for any costs of obtaining medical or mental-health evaluations, and the Parties shall share equally any fees of an independent deciding physician or professional.

 

8.6 Effect of Death or Incapacity. If the Client dies or becomes permanently and totally disabled during the Term, such that the Client can no longer continue in the Principal Business, the Term shall be deemed to end as of the date of death or determination of permanent disability. In the case of death, the Client’s estate shall be obligated to pay any Brand Amounts due for Brand Income earned up to the date of death (e.g., any salary or bonus earned prior to death but paid after death), but no further Brand Amount shall accrue after death except to the extent payments contractually earned prior to death are made posthumously. In the case of permanent disability, the Parties (or the Client’s legal representative) will confer in good faith regarding an equitable resolution of any ongoing obligations, but generally the occurrence of total and permanent disability (as reasonably determined by medical evidence) shall be treated similar to a retirement for Good Reason, and the clawback provisions of Section 8.4 shall not apply. Except as provided in Section 8.4, in no event shall the Client, the Client’s legal representative or the Client’s estate, as the case may be, be obligated or otherwise required to return the Initial Advisory Payment, or any portion thereof, to the Company.

 

8.7 Mutual Termination. The Parties may at any time mutually agree in writing to terminate this Agreement on an agreed date. In such event, they will also set forth in the termination agreement the handling of any future Brand Income or outstanding obligations. Unless otherwise agreed, if the Agreement is terminated by mutual agreement, the Company will only be entitled to the Brand Amount from Brand Income earned by the Client up to the date of termination, and the Client will have no further obligation to pay Brand Amount on income earned after termination (and no clawback would apply unless expressly agreed as part of the termination provisions). Any mutual termination agreement must be signed by both the Client and the Manager on behalf of the Company.

 

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8.8 Resumption of Principal Business Before or After Termination.

 

(a) Resumption within Termination Tolling Period. If, the Client resumes active participation in the Principal Business at any time during the Termination Tolling Period: (i) this Agreement shall be deemed not to have terminated pursuant to Section 8.1(a) and shall automatically continue in full force and effect from and after the date of such resumption; and (ii) all payment systems, methods, schedules, and obligations agreed upon under this Agreement-including, without limitation, the Brand Percentage and all related payment, reporting, withholding, and audit obligations-shall be reinstated as of the date of such resumption and shall apply to Brand Income earned on and after such date.

 

(b) Resumption after Termination Tolling Period. If the Client resumes active participation in the Principal Business after the end of the Termination Tolling Period and, as a result, this Agreement has terminated pursuant to Section 8.1(a), the Client shall, from and after such resumption, pay the Brand Percentage with respect to the Client’s Brand Income to a trust to be established for such purpose (the “Revenue Share Trust”). The manager shall serve as the sole trustee of the Revenue Share Trust, and the former members of the Company shall be the beneficiaries thereof. Disbursements from the Revenue Share Trust, net of any trust operating costs and expenses, if any, shall be made on the same terms, timing, methodology, and waterfall as provided in this Agreement for Brand Percentage payments. The Client shall cooperate in good faith and execute all documents and take all actions reasonably necessary or desirable to establish the Revenue Share Trust and to effect the payment of the Brand Percentage to the Revenue Share Trust (including, where applicable, directing counterparties and payors of Brand Income to remit the Brand Percentage directly to the Revenue Share Trust).

 

(c) No additional consideration. For the avoidance of doubt, no additional Initial Advisory Payment or other consideration shall be due to the Client upon any continuation or reinstatement under Section 8.8(a) or upon payments to the Revenue Share Trust under Section 8.8(b). The Initial Advisory Payment made as of the Commencement Date shall be deemed full and adequate consideration for the entire Term and for the payment obligations described in this Section 8.8.

 

(d) Notice. The Client shall provide written notice to the Company of any intention or plan to resume participation in the Principal Business and, in any event, shall notify the Company in writing no later than ten (10) business days after any such resumption. Failure to provide such notice within the required timeframe shall constitute a material breach of this Agreement, entitling the Company to all remedies available under Section 8.3, including, without limitation, equitable relief and the right to enforce the obligations set forth in this Section 8.8.

 

9. Additional Covenants of Client

 

9.1 Right to Purchase Insurance. The Client agrees that the Company (or its designee) shall have the right, at its own expense, to purchase and maintain one or more life insurance and/or disability insurance policies on the life and/or health of the Client. The Company (or its designee) shall be the sole owner and beneficiary of any such policy, and the Company shall be responsible for payment of all premiums associated with such insurance. The Client shall have no right, title, or interest in any such policy or its proceeds. The Client shall cooperate in good faith with the Company and any insurance carrier in connection with the application for and maintenance of such insurance, including by (a) submitting to reasonable medical examinations, (b) providing truthful and complete information as required by the insurer, (c) executing any documents reasonably necessary to effectuate or maintain such insurance, and (d) promptly forwarding to the Company any correspondence, notices, or documents relating to any such policy that the Client may receive. The Company shall be registered as the owner on all such policies. The Company shall have no obligation to purchase or maintain any such insurance, and the decision to do so shall be at the Company’s sole discretion. Any insurance policy obtained under this Section shall be held for the benefit of the Company and any proceeds therefrom shall be considered assets of the Company. No such proceeds shall not be payable to the Client or any of the Client’s Affiliates, representatives, heirs, executors, administrators, successors, or assigns.

 

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9.2 Professional Conduct. The Client shall use good-faith efforts to maintain an active career in the Principal Business during the Term, subject to the Client’s personal and professional circumstances. While this Agreement does not impose a duty on the Client to achieve any specific performance milestones, the Client agrees not to intentionally take actions that would foreseeably and materially diminish the Client’s ability to generate Brand Income (except as might be reasonable for health or family considerations). The Client agrees to abide by all material contractual obligations the Client has in the Principal Business (e.g., the terms of any team or league contracts) and to conduct himself/herself in a manner consistent with professional standards, to the extent that a failure to do so could cause a material decrease in Brand Income (for example, the Client will not willfully incur a suspension or ban from the Principal Business without good cause). This Section does not grant the Company any control or decision-making power over the Client’s career decisions, personal behavior, or professional training but rather expresses the expectation that the Client will act in good faith not to deliberately undermine the value of the revenue sharing arrangement.

 

9.3 Further Assurances. The Client shall execute and deliver such additional documents, and take such further actions, as may be reasonably requested by the Company or Manager to carry out the purpose and intent of this Agreement. This includes, without limitation, executing any certifications or notices needed for the Company to perfect its contractual rights to receive the Brand Amount (such as separate irrevocable payment instruction letters to third-party payors, or UCC financing statements if applicable to establish a security interest to secure payment). The Client shall also cooperate with the Company in good faith to adjust the mechanism of payment, or to modify this Agreement, if required by changes in law or regulation (including league rules or collective bargaining outcomes) in order to give effect to the original intent of the Parties in a lawful manner. The Client’s obligations under this Section 9.3 are in addition to, and not in limitation of, the irrevocable proxy and power of attorney granted to the Manager under Section 4.8.

 

9.4 Spousal Consent. If the Client is married or subsequently marries during the Term, the Client shall use best efforts to obtain his/her spouse’s signature on a spousal consent or acknowledgement in a form reasonably requested by the Company. Such consent will acknowledge the spouse’s awareness of this Agreement (including the security interest in the Collateral and the irrevocable proxy and power of attorney granted to the Manager under Section 4.8) and, to the extent applicable under state marital or community property laws, will confirm that the spouse waives or releases any claim that this Agreement (including such security interest and proxy and power of attorney) is not fully enforceable against the Client’s share of marital property or community income. If the Client’s spouse declines to sign a consent, the Client shall promptly notify the Company and discuss in good faith whether alternate arrangements (such as additional security or escrow of funds) are necessary to protect the Company’s interests.

 

9.5 Confidentiality of Company Information. The Client recognizes that, through interaction with the Company and Manager, the Client may receive or have access to non-public information regarding the Company’s business, financing, investors, and plans. The Client agrees to hold in confidence any confidential or proprietary information of the Company or Manager provided to the Client and not to disclose it to any third party (except the Client’s advisors who are under duties of confidentiality) without the Company’s consent, except as required by law. Nothing herein limits the Client’s ability to disclose information about his/her own financial arrangements as needed for personal business or tax reasons, so long as the Client takes reasonable steps to ensure any third-party recipients (e.g., financial advisors, accountants) also keep such information confidential.

 

9.6 Disclosure of Material Events.

 

(a) The Client shall promptly notify the Company in writing of the occurrence of any Material Event (as defined below) during the Term of this Agreement and for a period of twelve (12) months thereafter, to the extent such Material Event relates to or could reasonably be expected to affect the Client’s performance under this Agreement, the Client’s reputation, or the value of the Company’s rights hereunder.

 

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(b) For purposes of this Agreement, a “Material Event” includes, but is not limited to, the following:

 

(i) The commencement, threatened commencement, or written notice of any litigation, arbitration, or other legal proceeding involving the Client, whether as a plaintiff, defendant, or witness, that alleges or could reasonably be expected to allege claims of fraud, breach of contract, violation of law, or any other matter that could materially impact the Client’s ability to perform under this Agreement or the Client’s reputation;

 

(ii) Any actual or alleged breach by the Client of any material contract, including but not limited to employment, endorsement, sponsorship, or agency agreements, or any contract relevant to the Client’s participation in the Principal Business;

 

(iii) Any written or formal allegation, investigation, or charge by a league, governing body, regulatory authority, or law enforcement agency regarding unlawful activity, rule violations, or misconduct by the Client, including but not limited to allegations of doping, match-fixing, gambling, or other conduct that could result in suspension, fines, or disciplinary action;

 

(iv) The imposition of any fine, suspension, ban, or other disciplinary measure by any league, team, governing body, or regulatory authority in connection with the Client’s professional activities;

 

(v) Any public or media allegation of misconduct, unethical behavior, or other conduct that could reasonably be expected to materially harm the Client’s reputation or the value of the Company’s rights under this Agreement;

 

(vi) Any event or circumstance that results in or could reasonably be expected to result in a material adverse effect on the Client’s ability to generate Brand Income, including but not limited to injury, illness, or loss of eligibility to participate in the Principal Business (other than as already covered by Section 8.6).

 

(c) The Client shall provide written notice to the Manager of any Material Event as soon as practicable, and in any event within ten (10) business days after the Client becomes aware of such Material Event. The notice shall include reasonable details regarding the nature of the event, the parties involved, the potential or actual consequences, and any steps being taken to address or resolve the matter.

 

(d) The Client shall keep the Company reasonably informed of any material developments or changes relating to any disclosed Material Event, including the resolution or settlement of any such matter.

 

(e) The Company agrees to treat all information disclosed pursuant to this Section as Confidential Information, subject to the confidentiality provisions of this Agreement, except to the extent disclosure is required by law, regulation, or as necessary to protect the Company’s interests or enforce its rights under this Agreement.

 

(f) The failure by the Client to timely disclose a Material Event as required by this Section shall constitute a material breach of this Agreement, entitling the Company to exercise its rights and remedies as set forth herein, including but not limited to the right to terminate the Agreement for cause pursuant to Section 8.3.

 

9.7 No Grant of Security Interests. During the Term of this Agreement, the Client shall not, without the prior written consent of the Company, grant, assign, pledge, or otherwise convey any security interest, lien, or other encumbrance in or to any portion of the Brand Income or any rights or proceeds relating thereto to any third party. Any attempt to do so shall be null and void and shall constitute a material breach of this Agreement.

 

9.8 No Diversion of Brand Income. During the Term, the Client shall not (a) divert, redirect, or cause to be diverted or redirected any Brand Income away from the Participation Account, (b) instruct, request, or permit any payor to disregard, modify, or fail to honor any direct deposit of Brand Income or payment direction, or (c) take any other action intended or reasonably likely to cause Brand Income to be paid other than directly into the Participation Account, except in each case as expressly permitted under Section 4.3(g) or Section 4.3(j). Any breach of this Section 9.8 shall constitute a material breach of this Agreement.

 

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9.9 Maintenance of Collection Mechanism. During the Term, the Client shall: (a) designate and direct one hundred percent (100%) of the Client’s Brand Income to be deposited directly into the Participation Account established under the Account Control Agreement; (b) open and maintain the Participation Account at a bank or financial institution that is willing to execute the Account Control Agreement and is otherwise reasonably acceptable to the Company; (c) establish and maintain an automatic bi-weekly transfer of the Brand Amount from the Participation Account to the Company Account; and (d) not cancel, revoke, reduce, suspend, or modify any such direct deposit designation or automatic transfer, or close or replace the Participation Account, without the Company’s prior written consent. Any unauthorized cancellation, revocation, reduction, suspension, or modification of any of the foregoing shall constitute a Collection Failure and a material breach of this Agreement, entitling the Company to all remedies available under this Agreement, including under Sections 4.5 and 8.3.

 

10. Indemnification

 

10.1 Indemnification by Client. The Client shall indemnify, defend, and hold harmless the Company, the Manager, and their respective affiliates, and each of their officers, directors, employees, and agents (collectively, the “Company Parties”), from and against any and all losses, liabilities, damages, costs, or expenses (including reasonable attorneys’ fees) (collectively, “Losses”) arising out of or relating to: (a) any breach or alleged breach by the Client of any representation, warranty, or covenant in this Agreement; (b) any failure by the Client to pay any required taxes or fulfill other obligations related to the Client’s receipt of Brand Income (except to the extent the failure was due to the Company’s breach of its obligations); (c) any claim by a third party (including any agent or former business partner of the Client) that it is entitled to any portion of the Brand Amount or that it suffered harm due to the Client’s granting of rights to the Company hereunder; or (d) the Client’s gross negligence or willful misconduct in the performance of this Agreement or in the Client’s activities generating Brand Income (for example, a third-party personal injury claim arising from the Client’s actions in the Principal Business, to the extent the Company or Manager is named as a defendant solely because of this Agreement). The Client’s indemnification obligation shall not apply to the extent any Losses are finally determined to result from a Company Party’s own fraud, gross negligence, or willful misconduct.

 

10.2 Indemnification by Company. The Company (on behalf of itself and the Manager) shall indemnify, defend, and hold harmless the Client and the Client’s heirs, executors, and assigns (the “Client Parties”) from and against any and all Losses arising out of or relating to: (a) any breach or alleged breach by the Company of any representation, warranty, or covenant in this Agreement; (b) any claim by a third party arising from the Company’s use of the Client Persona beyond what is permitted in this Agreement or otherwise from the Company’s marketing or promotional activities for the Client (except to the extent such claim arises from information or materials provided by the Client for such use, in which case the Client will indemnify as provided above); (c) the gross negligence or willful misconduct of the Company, the Manager, or any of their agents in performing the Advisory Services or other obligations under this Agreement; or (d) any claim, action, or proceeding brought against the Client under federal or state securities laws solely as a result of the Company’s offering activities in connection with the Series Offering, the ATS, any other offering of membership interests in the Company, the Master LLC, or any series thereof, or any capital-raising, disclosure, or regulatory activity conducted by or on behalf of the Company, provided that the Client did not solicit investors, make any offering-related statement, make any misrepresentation or omission, breach this Agreement, or otherwise engage in conduct giving rise to such claim. The indemnification obligation under clause (d) shall be subject to the procedures set forth in Section 10.3, including prompt notice, the Company’s right to control the defense, and no settlement without the Client’s consent. The Company’s indemnification obligation shall not apply to the extent any Losses are determined to result from the Client’s own fraud, gross negligence, or willful misconduct.

 

10.3 Procedure. A Party seeking indemnification (the “Indemnified Party”) shall promptly notify the other Party (the “Indemnifying Party”) in writing of any third-party claim or action for which indemnification is sought, and shall reasonably cooperate with the Indemnifying Party in the defense of the claim. The Indemnifying Party shall have the right to control the defense and settlement of any such claim, except that it may not settle any claim in a manner that imposes any liability or admission of fault on the Indemnified Party without the Indemnified Party’s prior written consent (such consent not to be unreasonably withheld). The Indemnified Party may participate in the defense with its own counsel at its own expense. Failure to promptly notify the Indemnifying Party of a claim shall only relieve the Indemnifying Party of its obligations to the extent it was materially prejudiced by the delay.

 

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10.4 Survival. The provisions of this Section 10 shall survive the termination or expiration of this Agreement.

 

11. Confidentiality

 

11.1 Confidential Information. Each Party acknowledges that in connection with this Agreement it may receive or have access to confidential or proprietary information of the other Party (“Confidential Information”). Confidential Information includes, without limitation, non-public business plans, strategies, financial information, projections, personal or medical information about the Client, the terms and existence of this Agreement (until publicly disclosed by mutual agreement or as required by law), any non-public materials related to the Company’s investors or financing, and any other information designated as confidential or that should reasonably be understood to be confidential given its nature and the circumstances of disclosure.

 

11.2 Nondisclosure and Use. Each Party agrees that it will not disclose the Confidential Information of the other Party to any third party, and will not use the other Party’s Confidential Information for any purpose outside the scope of this Agreement, without the prior written consent of the other Party. Each Party may share Confidential Information of the other with its own affiliates, employees, legal or financial advisors, or agents who have a need to know it for purposes of this Agreement, provided they are under obligations of confidentiality at least as protective as those herein. Each Party shall protect the confidentiality of the other’s Confidential Information using the same degree of care as it uses to protect its own confidential information of similar importance, and at least reasonable care.

 

11.3 Exceptions. The obligations of confidentiality in this Section shall not apply to information which: (a) is or becomes generally available to the public other than through a breach of this Agreement; (b) is received by the receiving Party on a non-confidential basis from a third party who is not known to be bound by a confidentiality obligation to the disclosing Party; (c) was already known or independently developed by the receiving Party without use of the disclosing Party’s Confidential Information, as evidenced by the receiving Party’s written records; or (d) is required to be disclosed by law, regulation, or court order, provided that (if legally permitted) the receiving Party gives prompt notice to the disclosing Party of the intended disclosure and cooperates in any effort to limit or protect the disclosure.

 

11.4 Public Announcements. Neither Party will issue any press release or public statement regarding this Agreement or the relationship between the Parties without the prior written consent of the other (which consent shall not be unreasonably withheld). It shall not be a violation of this Section for the Company to include general, non-identifying references to its Brand Advisory Agreement with the Client in routine business descriptions or required regulatory filings (for example, referring to the existence of a contract with “a professional athlete in [Sport] executed on [Date]” without naming the Client, unless such naming is legally required in a filing). Likewise, the Client may disclose the existence of this Agreement in confidence to financial advisors or as necessary for personal business, provided those persons are bound to confidentiality as noted above. Notwithstanding the foregoing, either Party may disclose this Agreement, or file it to the extent required by applicable securities laws or regulations. Where legally permitted and practicable, the disclosing Party will give the other Party advance notice, consider good-faith comments and limit disclosure to what is required. Disclosures made in compliance with this paragraph (including disclosures compelled by law or governmental inquiry) do not violate this Section or any confidentiality obligations.

 

11.5 Remedies. Each Party acknowledges that unauthorized use or disclosure of the other’s Confidential Information may cause irreparable harm for which monetary damages may be difficult to ascertain or an insufficient remedy. Accordingly, each Party agrees that the other Party shall be entitled to seek injunctive relief (without the necessity of posting bond) to prevent any actual or threatened breach of this Section 11, in addition to any other rights and remedies available at law or in equity.

 

12. Publicity Rights and Use of Client Persona

 

12.1 License to Use Client Persona. The Client hereby grants to the Company and the Manager a non-exclusive, worldwide, royalty-free right and license to use the Client Persona during the Term, and in any event until this Agreement is terminated or expires, in connection with the Company’s performance under this Agreement and the promotion thereof. This license includes the right for the Company and Manager to use, reproduce, distribute, and publicly display the Client’s name, image, likeness, and other elements of the Client Persona in advertising, marketing, press releases, investor communications, social media, and on the Agentiq Sports online platform or app, solely for the purpose of describing or promoting: (a) the Advisory Services and brand initiatives being performed for the Client; (b) the Client’s association with the Company as a client; and/or (c) the Client’s background and achievements as relevant to the Company’s business. Any such use shall be consistent with professional standards and shall not be disparaging or defamatory toward the Client. The Company will consult with the Client on major publicity materials where feasible, but final editorial control remains with the Company for materials it produces.

 

24

 

 

12.2 No Endorsement of Third Parties. Except as expressly agreed by the Client, the license granted in Section 12.1 does not include the right to use the Client Persona to endorse or advertise any specific third-party product or service (unrelated to this Agreement or the Company’s own services). The Company will not, for example, use the Client’s persona in a manner that suggests the Client is directly endorsing a product, sponsor, or commercial entity, unless such use is part of a campaign or initiative that has been discussed with and approved by the Client. If the Company desires the Client to participate in any endorsements or promotional events beyond the scope of this Agreement, including any compensation or additional terms for such activities, the Parties may separately agree to any such arrangements in writing.

 

12.3 Public Statements by Client. The Client agrees not to make any public statement or engage in any publicity that disparages or places in a negative light the Company, the Manager, or any of their affiliated entities, or that reveals confidential aspects of this Agreement. The Client may state factual information such as “I have partnered with [Company Name] to build my brand” or similar positive or neutral descriptions. The Client shall refer any media inquiries about the Company or this Agreement to the Manager. The Client’s obligations under this Section shall not restrict the Client’s ability to comment on general industry topics or on his/her personal career outside the scope of this Agreement, and shall not apply to truthful statements made in legal or arbitral proceedings.

 

12.4 Approval of Materials. To avoid conflicts with the Client’s other endorsement deals or personal branding, the Company agrees to consider in good faith any reasonable requests by the Client to modify or remove specific uses of the Client Persona that the Client believes conflict with the Client’s existing personal brand or contractual commitments. The Client will notify the Company of any known restrictions (e.g., if the Client has an exclusive apparel sponsor and cannot appear wearing competing logos) so that the Company can take those into account in advance. The Company shall use commercially reasonable efforts to accommodate such restrictions in any public-facing materials or events involving the Client.

 

12.5 Ownership and Goodwill. All goodwill arising from the Company’s authorized use of the Client Persona shall inure to the benefit of the Client. The Company acknowledges that, except for the license rights granted herein, it has no ownership or proprietary interest in the Client Persona. Conversely, the Client acknowledges that any materials (e.g., promotional videos, articles, or content) created by the Company or Manager that include elements of the Client Persona and are used to promote the Company’s business may also include the Company’s or Manager’s intellectual property (logos, trademarks, creative content), and the Company retains ownership of those materials (subject to the Client’s continuing rights in his/her persona). Neither Party will challenge the other’s ownership of its pre-existing intellectual property or persona rights.

 

12.6 Ambassador Activities. At the Company’s reasonable request and subject to the Client’s professional schedule, the Client agrees to participate in two promotional events or media appearances per year (“Ambassador Activities”) to help promote the brand partnership or the Company’s platform (such as interviews, social media live sessions, or client spotlights). For the avoidance of doubt, any Fan Meet-Up conducted pursuant to Section 2.5(b) shall count toward the Client’s Ambassador Activities obligation for the applicable calendar year, such that the Client’s combined obligation under this Section 12.6 and Section 2.5(b) shall not exceed a total of two (2) promotional events or appearances per calendar year. The specific nature and timing of any Ambassador Activities shall be mutually agreed, and the Client shall not be obligated to engage in any activity that would unreasonably interfere with the Client’s duties in the Principal Business or other prior commitments. Unless otherwise agreed, the Client will not receive separate compensation for such agreed Ambassador Activities beyond the consideration provided in this Agreement, but the Company will reimburse any reasonable pre-approved travel or lodging expenses incurred for an agreed event.

 

25

 

 

13. Dispute Resolution

 

13.1 Negotiation. In the event of any dispute, controversy, or claim arising out of or relating to this Agreement or the breach thereof (a “Dispute”), the Parties shall first attempt in good faith to resolve the Dispute informally. Either Party may initiate this negotiation process by providing written notice to the other Party of the issue. The Parties (and their representatives, if applicable) shall meet and confer within 10 business days of such notice (whether in person or by teleconference) to discuss the Dispute and seek a mutually agreeable solution. If the Dispute involves financial calculations or accounting matters, the Parties may involve accountants or advisors in the discussion.

 

13.2 Arbitration. If the Parties are unable to resolve any Dispute through negotiation within 10 days from the initial notice of the Dispute (or such longer period as they may mutually agree), then the Dispute shall be finally settled by binding arbitration. The arbitration shall be administered by JAMS (or, if JAMS is unavailable, a comparable reputable arbitration organization) and held in a place determined by the Company or virtually, if mutually agreeable to the Parties. The arbitration shall be conducted by a single arbitrator knowledgeable in contract and commercial law, selected by mutual agreement of the Parties from the JAMS panel, or if the Parties cannot agree, then in accordance with the JAMS rules for arbitrator selection. The arbitration shall follow the JAMS Streamlined Arbitration Rules & Procedures (or, if the amount in controversy exceeds $250,000, the Comprehensive Rules) then in effect, except as modified herein.

 

13.3 Arbitration Procedure. The arbitrator shall allow reasonable discovery, taking into account the needs of the Parties and the importance of the issues. The arbitrator is empowered to grant any remedy or relief that the Parties could have received in court, including injunctive relief and attorney’s fee awards, subject to the limitations of this Agreement. The arbitrator’s award shall be written, shall state the essential findings and conclusions upon which the award is based, and shall be final and binding on the Parties. Judgment on the arbitration award may be entered in any court having jurisdiction.

 

13.4 No Class Actions. The Parties further agree that any arbitration shall be conducted in their individual capacities only and not as a class action or other representative action, and the Parties expressly waive their right to file a class action or seek relief on a class basis. THE PARTIES AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. If any court or arbitrator determines that the class action waiver set forth in this paragraph is void or unenforceable for any reason or that an arbitration can proceed on a class basis, then the arbitration provision set forth above shall be void in its entirety and the Parties shall be deemed to have not agreed to arbitrate disputes.

 

13.5 Confidentiality of Proceedings. The Parties agree that any arbitration (or negotiation) conducted under this Section 13 shall be confidential. The existence of the arbitration, any non-public information provided in the arbitration, and any oral or written arguments or decisions made in the arbitration shall not be disclosed to any third party, except to the extent necessary to enforce an award, to pursue a legal right, or as required by law.

 

13.6 Interim Relief. Notwithstanding the foregoing arbitration provisions, either Party may at any time seek interim or preliminary injunctive relief from a court of competent jurisdiction (consistent with Section 14.7) in order to prevent irreparable harm, maintain the status quo, or enforce the confidentiality or intellectual property provisions of this Agreement, pending the outcome of arbitration. Seeking such relief shall not be deemed a waiver of the right to arbitrate.

 

13.7 Fees and Expenses. The Parties shall share equally the administrative fees and arbitrator’s fees of the arbitration. Each Party shall otherwise bear its own attorneys’ fees and costs, provided that the arbitrator may, in his or her discretion, award reasonable costs and attorneys’ fees to the prevailing Party if the arbitrator determines that the positions taken by the other Party were frivolous or in bad faith.

 

26

 

 

14. Miscellaneous Provisions

 

14.1 Assignment. The Client may not assign, delegate, or transfer (by operation of law or otherwise) this Agreement or any of the Client’s rights or obligations hereunder without the prior written consent of the Company. Because the Agreement involves personal services and the personal future income of the Client, any attempted assignment by the Client shall be null and void unless approved by the Company in writing. The Company may assign its rights and obligations under this Agreement, in whole or in part, to: (a) any Affiliate or successor of the Company; (b) any transferee of all or substantially all of the Company’s rights in the Brand Amount (for example, a collateral assignment to a trust or other entity for the benefit of investors, or a sale of the Company’s interest subject to the Client’s obligations remaining unchanged); or (c) any person or entity that acquires the Company or a controlling interest in the Company (such as through a merger or consolidation of Agentiq Sports 1 Series LLC or sale of the Company’s assets), provided that any such assignee agrees in writing to be bound by the terms of this Agreement. After any permitted assignment by the Company, the Company shall be released from the obligations so assigned, and the assignee shall have all rights (and related obligations) of the Company assigned to it. The security interest granted under Section 4.8 and the irrevocable proxy and power of attorney granted thereunder shall, in connection with any such permitted assignment, automatically inure to the benefit of the assignee or successor (and, with respect to the proxy and power of attorney, the manager of such assignee or successor), without any further action by the Client; provided that, upon the Company’s reasonable request, the Client shall execute and deliver a confirmatory grant of such proxy and power of attorney in favor of the manager of the assignee or successor. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns.

 

14.2 Authority of Manager. The Client acknowledges that the Manager is the sole manager of the Company and that, pursuant to the Company’s governing documents, the Manager has the exclusive authority to manage and control the affairs of the Company, including the administration and enforcement of this Agreement. Accordingly, any rights, elections, consents or actions of the Company under this Agreement may be exercised or performed by the Manager on the Company’s behalf (including the irrevocable proxy and power of attorney granted to the Manager under Section 4.8), and any notice to be given to the Company under this Agreement should be given to the Manager (as provided in the Notice section below). The Client agrees that the Manager is an intended third-party beneficiary of this Agreement to the extent necessary to enable the Manager to enforce the Company’s rights and to perform the Company’s obligations hereunder (including the right to receive payments on the Company’s behalf and the right to act as proxy and attorney-in-fact under Section 4.8). If the Manager is replaced, the new Manager shall automatically be substituted as the “Manager” for purposes of this Agreement, including for purposes of the proxy and power of attorney granted under Section 4.8.

 

14.3 Entire Agreement. This Agreement (including any exhibits or schedules hereto, which are hereby incorporated by reference) constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral, between the Parties concerning such subject matter. Each Party acknowledges that it has not relied on any representations, warranties, or covenants not expressly contained in this Agreement in deciding to enter into this Agreement.

 

14.4 Amendment and Waiver. This Agreement may not be modified or amended except by a written instrument executed by both Parties (and, with respect to the Company, signed by an authorized officer of the Manager). No waiver of any provision of this Agreement shall be effective unless set forth in a written waiver signed by the Party waiving the provision. No failure or delay by either Party in exercising any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any further exercise of that or any other right or remedy.

 

14.5 Severability. If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid, illegal, or unenforceable by a court or arbitrator of competent jurisdiction, such provision shall be enforced to the maximum extent permissible, and the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby. The Parties shall negotiate in good faith to modify the Agreement to implement the intent of the invalid or unenforceable provision to the fullest extent possible in a valid and enforceable manner.

 

27

 

 

14.6 Notices. All notices, requests, consents, and other communications required or permitted under this Agreement (each, a “Notice”) shall be in writing and shall be deemed given: (a) on the date of personal delivery, if personally delivered; (b) on the date of confirmed transmission, if emailed (with confirmation of successful transmission and a copy sent by another method for confirmation); (c) one business day after being sent by a nationally recognized overnight courier with tracking; or (d) three days after being sent by registered or certified U.S. mail, return receipt requested, postage prepaid. Notices shall be sent to the Parties at the addresses (including email addresses) specified below, or such other address as a Party may designate by Notice to the other:

 

If to the Company:

 

Agentiq Sports 1 Series LLC c/o Agentiq Sports, Inc., Manager
445 Bryant St,
San Francisco, CA 94107
Email: zach@agentiqsports.com

 

With a copy to:

 

Bevilacqua PLLC

800 Connecticut Avenue, N.W., Suite 300

Washington, DC 20036

Attention: Lou Bevilacqua, Esq

lou@bevilacquapllc.com

 

If to the Client:

 

To the email address most recently provided in writing by the Client to the Company for notice purposes.

 

Either Party may change its notice address by providing Notice to the other Party in accordance with this Section. Notices given in electronic form (email) should be supplemented by a physical copy by mail or courier, but failure to send the physical copy will not invalidate the notice if the email is confirmed received.

 

14.7 Governing Law. This Agreement and any disputes arising under or related to it (including any arbitration proceedings) shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any conflict of law principles that would result in the application of the laws of another jurisdiction. Subject to the arbitration provisions above, and for the limited purposes of court actions described in Section 13 or enforcement of arbitration awards, each Party hereby consents to the exclusive jurisdiction of the state and federal courts located in Delaware. Each Party waives any objection based on forum non conveniens or any objection to venue of any such court.

 

14.8 Relationship of Parties. The Parties are independent contractors, and nothing in this Agreement shall be construed to create a partnership, joint venture, agency, franchise, or employment relationship between the Parties. The Client is not an employee or agent of the Company or Manager, and the Company is not an agent of the Client. Neither Party has the authority to bind the other to any third party, contractually or otherwise, except as explicitly set forth herein. The Client acknowledges that the Company’s role is limited to providing the Advisory Services and receiving the Brand Amount; the Company is not undertaking the management of the Client’s career or assuming the role of a professional agent or manager for the Client.

 

14.9 No Third-Party Beneficiaries. Except for the Manager and related indemnitees as expressly provided herein (who shall be third-party beneficiaries to the extent stated), this Agreement is for the sole benefit of the Company and the Client and their permitted successors and assigns. Nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit, or remedy of any nature under or by reason of this Agreement.

 

14.10 Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, email (pdf), or by an electronic signing service (e.g., DocuSign) shall be effective and binding as original signatures. Each Party agrees that the electronic signatures of the Parties, whether digital or encrypted, are intended to authenticate this writing and to have the same force and effect as manual signatures.

 

14.11 Headings; Interpretation. The headings and section numbers in this Agreement are for convenience only and shall not affect its interpretation. References to “Sections” or “Exhibits” are to sections of or exhibits to this Agreement unless otherwise noted, and the exhibits to this Agreement (including Exhibit A (Client Acknowledgment) and Exhibit B (Offering Structure Summary)) are incorporated into and made part of this Agreement for all purposes. “Including” means “including without limitation.” Both Parties have participated in the negotiation and drafting of this Agreement, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

 

[Signature Page Follows]

 

28

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Brand Advisory Agreement as of the last date set forth below.

 

COMPANY

 

Agentiq Sports 1 Series [_________],
a series of Agentiq Sports 1 Series LLC

 

By and through its Manager,
Agentiq Sports, Inc.

 

  By:    
  Name:  Zach Kurtz  
  Title: Chief Executive Officer  

 

     
  (Date)  

 

  CLIENT
   
   
  (Signature)
   
   
  (Print Name)
   
   
  (Date)

 

[Exhibits Follow]

 

29

 

 

EXHIBIT A

 

Client Acknowledgment

 

(See Attached)

 

 

 

 

 

 

 

 

 

 

 

A-1

 

 

CLIENT ACKNOWLEDGMENT

 

In connection with the Brand Advisory Agreement (the “Agreement”) between [__________] (the “Client”) and Agentiq Sports 1 Series [__________], a designated series of Agentiq Sports 1 Series LLC (the “Company”), the Client acknowledges and confirms each of the statements below by placing the Client’s initials next to such statement. Capitalized terms used but not otherwise defined in this Exhibit A have the meanings given to them in the Agreement.

 

Instructions: Please place your initials in the space provided next to each statement to confirm your understanding.

 

1. By signing the Agreement, you may receive up to $[______] USD as the Initial Advisory Payment.    
  Initial
   
2. In exchange for the Initial Advisory Payment, you agree to pay the Company the Brand Amount, which is equal to [__]% of your Brand Income (as defined in the Agreement) during the Terma    
  Initial
   
3. For example, if the Company pays you the full Initial Advisory Payment of $[___] USD and you earn $50,000,000 USD in Brand Income during the Term, you will pay the Company $[_______] USD in the aggregate (representing [___]% of that Brand Income) as you earn that income.     
  Initial
   
4. If, for any reason (including, without limitation, the failure of the Series Offering to generate sufficient proceeds or the insufficiency of the Company’s other available funds), the Company has not paid the full Initial Advisory Payment by the Outside Date, the Agreement will not terminate and will remain in full force and effect; however, as provided in Section 8.3(a), no further Initial Advisory Payment will be owed to you, and the Brand Percentage will automatically adjust on a pro rata basis to reflect the portion of the Initial Advisory Payment actually paid to you, in each case as set forth in the Agreement. You understand that, following such adjustment, you will have no claim against the Company for any unpaid portion of the Initial Advisory Payment.    
  Initial
   
5. You will pay the Brand Amount to the Company through the Participation Account, the direct deposit of one hundred percent (100%) of your Brand Income, the automatic bi-weekly transfer of the Brand Amount, and the Account Control Agreement, and otherwise in accordance with the terms of the Agreement.    
  Initial
   
6. If you do not pay the Company when required under the Agreement, you will be in material breach of the Agreement, and the Company may seek to enforce the Agreement against you. If the Company is successful, you will be required to pay all amounts owed under the Agreement, including any unpaid Brand Amount, accrued interest on unpaid amounts, and reasonably incurred expenses of enforcement and collection (including reasonable attorneys’ fees and other collection costs).    
  Initial
   
7. You understand that, in the future, if you propose to transfer or assign any additional interest in any future earnings from the Principal Business that would constitute Brand Income, you must provide the Company with prior written notice of your intent to proceed with the opportunity, and the Company will have the right to evaluate that opportunity and will have a right of first refusal to acquire the additional interest in such earnings on substantially similar terms.    
  Initial

 

[Signature Page Follows]

 

A-2

 

 

IN WITNESS WHEREOF, the Client has executed and delivered this Exhibit A (Client Acknowledgment) as of the date set forth below, and hereby confirms that the Client has read and understood each of the acknowledgments set forth above and has initialed each such acknowledgment in the space provided.

 

CLIENT:

 

   
(Signature)  
   
   
(Print Name)  
   
   
(Date)  

 

A-3

 

 

EXHIBIT B

 

Offering Structure Summary

 

(See Attached)

 

 

 

 

 

 

 

 

 

 

 

 

B-1

 

 

OFFERING STRUCTURE SUMMARY

 

The Company relies on Tier 2 of Regulation A under Section 3(b)(2) of the Securities Act of 1933, as amended, for each series offering. Each offering must be qualified by the SEC before sales may occur; qualification does not constitute approval of the investment’s merits. The aggregate offering limit under Rule 251(a)(2) is $75,000,000 in any rolling twelve-month period. Units may only be sold to “qualified purchasers” (accredited investors under Rule 501(a) of Regulation D, or non-accredited investors whose investment does not exceed 10% of the greater of their annual income or net worth). As a Tier 2 issuer, the Company is subject to ongoing SEC reporting obligations (Forms 1-K, 1-SA, and 1-U) and the offering is exempt from state Blue Sky registration requirements (subject to state filing and anti-fraud provisions) provided Units are sold only to qualified purchasers.

 

The issuer is Agentiq Sports 1 Series LLC, a Delaware series limited liability company. Each series is a separate legal entity with segregated assets and liabilities under Section 18-215 of the Delaware LLC Act; creditors of one series have no claim against assets of another. Units represent an investment solely in a particular series and its Brand Advisory Agreement—not in the Company as a whole. The offering is conducted on a best-efforts, continuous basis at $100.00 per Unit through Andes Capital Group, LLC (broker-dealer), with North Capital Private Securities Corporation as escrow agent, Continental Stock Transfer & Trust Company as transfer agent, and the Agentiq Sports online investment platform (www.agentiqsports.com) as the offering platform. The Operating Agreement permits the Manager to approve an alternative trading system (ATS) for secondary trading of Units; no public trading market currently exists.

 

B-2

EX1A-6 MAT CTRCT 9 ea029473701ex6-3.htm FORM OF PROMISSORY NOTE

Exhibit 6.3

 

THIS NOTE HAS NOT BEEN REGISTERED FOR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWSTHIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR OTHER APPLICABLE SECURITIES LAWS OR, IN THE ABSENCE THEREOF, AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. THIS NOTE IS SUBJECT TO THE TRANSFER RESTRICTIONS SET FORTH HEREIN.

  

CONVERTIBLE PROMISSORY NOTE

 

Note No. [__]

Principal Amount: $[___________]

Date: [________]

 

FOR VALUE RECEIVED, Agentiq Sports 1 Series [_______] (the “Series” or “Series [__]”), a Series of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Company”), or its permitted assignees, hereby promise(s) to pay to the order of Agentiq Sports, Inc., the Company’s Manager and manager of Series [__] pursuant to its Certificate of Designation (“Lender”), or its permitted assignees, in lawful money of the United States of America and in immediately available funds, the principal amount of [_________] & 00/100 dollars ($[_____]) (the “Principal Amount”), as set forth below in this note (this “Note”).

 

This Note constitutes the consideration payable to the Lender. The proceeds hereof will be used for Series purposes consistent with the Operating Agreement and applicable Series Designation, including funding Offering Expenses or Operating Expenses as determined by the Manager.

 

1. Definitions. As used in this Note, the following terms shall have the following meanings: 

 

Brand Advisory Agreement” means that certain brand advisory agreement entered into by the Series and [__], dated [______].

 

Business Day” means every day other than a Saturday, Sunday, or day on which the banks in the State of New York are required or authorized to close in New York City. “Non-Business Day” means every day that is not a Business Day. 

 

Maturity Date” shall mean the date on which the earliest of the following occurs: (a) payment in full of the Initial Advisory Amount; or (b) termination of the Offering.

 

Initial Advisory Amount” shall mean the initial advisory amount payable pursuant to the Brand Advisory Agreement.

 

Person” shall mean any natural person or individual, firm, company, general partnership, limited partnership, limited liability partnership, joint venture association, corporation, limited liability company, trust, business trust, estate, other legal entity. 

 

Offering” shall mean the offering of units of membership interest in Series [__] to be conducted by Series [__] following the qualification of the Company’s offering circular contained in its Form 1-A filed with the Securities and Exchange Commission in accordance with and in compliance with the provisions of Regulation A under the Securities Act of 1933, as amended.

 

Offering Start Date” shall mean the date on which the Offering of the Series [__] units commences.

 

Initial Advisory Amount” shall mean the initial advisory amount payable pursuant to that certain Brand Advisory Agreement entered into by the Series and [____], dated [____] (the “Brand Advisory Agreement”).

 

 

 

 

2. Interest; Default Interest; Usury Savings. Except as otherwise provided herein, the unpaid Principal Amount shall bear interest at a per annum rate of 1.0%, computed on the basis of a 360-day year of twelve 30-day months, and payable on the Maturity Date or any permitted prepayment; provided that if any advance constitutes an Operating Expense Reimbursement Obligation under the Operating Agreement, the interest rate shall not be less than the Applicable Federal Rate then in effect for instruments of comparable term. Upon and during the continuance of an Event of Default, all outstanding amounts shall bear interest at a per annum rate equal to the rate set forth above plus 6.0%, to the maximum extent permitted by applicable law. Notwithstanding the foregoing, in no event shall interest or other amounts payable hereunder exceed the maximum lawful rate, and any amounts collected in excess thereof shall be credited against the remaining Principal Amount or refunded.

 

3. Repayment; Application of Offering Proceeds; Payment Waterfall. Subject to Section 4, the Series shall repay the outstanding Principal Amount and all accrued but unpaid interest from the net proceeds of the Offering within fourteen (14) days after the Maturity Date; provided, however, that no amount under this Note shall be due or payable unless and until either the Initial Advisory Amount has been paid in full or the Offering has terminated. If, before termination of the Offering, any closing of the Offering occurs in which the proceeds therefrom exceed the outstanding balance of the Initial Advisory Amount, the Series shall first apply such proceeds to payment in full of the Initial Advisory Amount and then apply such excess proceeds to the repayment of amounts due to the Lender under this Note. Thereafter, the Series shall pay all net proceeds of the Offering, as set forth in the Offering Statement on Form 1-A and the Offering Circular forming a part thereof, to the Series. During any period in which the Series’ payment obligations under this Note are stayed pending payment in full of the Initial Advisory Amount, interest shall continue to accrue on the outstanding Principal Amount and any accrued but unpaid interest in accordance with Section 2. The Company shall apply payments received under this Note in the following order: (a) fees, expenses and other amounts then due hereunder; (b) accrued and unpaid interest; and (c) outstanding principal. Payments shall be made in lawful money of the United States in immediately available funds to the account designated in writing by Lender.

 

4. Prepayment. Subject to Section 3 and except as otherwise provided in Section 12, the Series may prepay all or any part of the Principal Amount of this Note, together with accrued but unpaid interest, if any, at any time or from time to time on or after the Maturity Date without premium, or penalty of any kind whatsoever.

 

 5. Limited Recourse; Series Separateness; Non-Petition. This Note is an obligation solely of the Series identified herein, enforceable only against the assets associated with such Series, and not against the Company or the assets associated with any other series of the Company. Lender shall not seek, and shall have no recourse to, the assets of the Company generally or any other series thereof. Lender agrees that it shall not institute against, or join any other Person in instituting against, the Company or any series thereof any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding until at least one year and one day after all obligations hereunder have been paid in full.

 

6. Negative Covenants. Until all amounts owed under this Note are paid in full, the Company shall not, without the Lender’s prior written consent: (a) create, incur, or permit to exist any security interest, mortgage, pledge, charge, or other encumbrance on any assets of the Series, other than (i) a lien in favor of the Lender, (ii) a lien arising by operation of law that secures amounts not yet due, or (iii) a lien expressly approved in writing by the Lender; (b) incur any debt for borrowed money or any other debt evidenced by a note or a similar instrument that ranks ahead of, or equally with, this Note in right of payment; or (c) declare or make any distribution with respect to equity interests in the Series while any default under this Note has occurred and is continuing, or if making the distribution would cause such a default.

 

7. Use of Proceeds; Priority. The proceeds of this Note shall be used for Series purposes in a manner consistent with the Operating Agreement and the Series [__] Certificate of Designation. Net proceeds of the Offering for this Series shall be applied to repay this Note only in accordance with Section 3.

 

8. Events of Default. The occurrence of any one or more of the following events shall be deemed an “Event of Default”: 

 

(a) The failure to pay any amounts when due hereunder and such failure continues for five (5) Business Days. 

 

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(b) Breach by the Series of any other term of this Note and, if curable, such breach remains uncured for ten (10) Business Days after written notice

 

(c) The Series shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) make an assignment for the benefit of its creditors; or (iii) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property. 

 

(d) The Series shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States or any state or district or territory thereof. 

 

(e) A court of competent jurisdiction shall enter an order, judgment or decree appointing, without the consent of the Series, a receiver for the Series or of the whole or any substantial part of its property, or approving a petition filed against the Series seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state or district or territory thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within thirty (30) days from the date of the entry thereof.

 

(f) Under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Series or of the whole or any substantial part of their property, and such custody or control shall not be terminated or stayed within thirty (30) days from the date of assumption of such custody or control. 

 

(g) A final judgment or order for the payment of money, or any final order granting equitable relief, shall be entered against the Series and such judgment or order has or will have a materially adverse effect on the financial condition of the Series. 

 

Subject to Section 3, upon and during any Event of Default, Lender may declare all obligations under this Note immediately due and payable and may pursue any rights or remedies available at law or in equity, including obtaining a money judgment. At Lender’s option, any outstanding principal and accrued interest may be converted, in whole or in part, into Series membership interests on the same terms as the Offering. For the avoidance of doubt, conversion is an optional remedy and is not Lender’s sole remedy.

 

9. Governing lawTHE LAWS OF THE STATE OF DELAWARE, EXCLUDING THEIR CONFLICTS OF LAWS PROVISIONS, SHALL GOVERN THIS NOTE IN ALL RESPECTS, INCLUDING CONSTRUCTION, VALIDITY, TERMS, PERFORMANCE, AND WAIVER. Any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Note shall be brought exclusively in the Court of Chancery of the State of Delaware (and, if such court lacks jurisdiction, then the state or federal courts located within the State of Delaware), and each party irrevocably submits to such courts’ jurisdiction and waives any objection as to venue or forum non conveniens. In lieu of the foregoing forum clause, disputes shall be resolved by binding arbitration administered by the American Arbitration Association in Wilmington, Delaware in accordance with the AAA Commercial Arbitration Rules, with the seat in Delaware, as provided in the Operating Agreement.

 

10. Successors and Assigns. All of the covenants, stipulations, promises, and agreements in this Note contained by or on behalf of the Series shall bind its successors and assigns, whether so expressed or not. The Series may not assign this Note without the prior written consent of Lender. This Note may be transferred or assigned by Lender, in whole or in part, to any Person without the prior written consent of the Series, provided that any assignee agrees in writing to be bound by the limited-recourse and series-separateness provisions herein.

 

11. Headings; Construction. The headings of the sections of this Note are inserted for convenience only and shall not be deemed to constitute a part hereof. Words used herein of any gender shall be construed to include any other gender where appropriate, and words used herein that are either singular or plural shall be construed to include the other where appropriate. 

 

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12. Payments. In any case where a payment of principal is due on a Non-Business Day, the Company shall be entitled to delay such payment until the next succeeding Business Day. Each payment or prepayment hereon must be paid at the address of Lender set forth below (or as otherwise notified to the Series in accordance with Section 9) in lawful money as therein specified and may be made at the Series’ election by the Series’ check, by wire transfer, or by bank or cashier’s check. Once due and payable in accordance with this Note, the Series’ obligations to make payments hereunder are absolute and unconditional and shall not be subject to any abatement, reduction, setoff, defense, counterclaim, interruption, deferment or recoupment of any kind.

 

13. Notices. Any notices required or permitted to be given under this Note by the Company to Lender or by Lender to the Company, as the case may be, shall be given in writing and shall be deemed received (a) when personally delivered to Lender at the address set forth below or to the Company at the address set forth below or (b) if sent by mail, on the third Business Day following the date when deposited in the United States mail, certified or registered mail, postage prepaid, to Lender at the address set forth below. 

 

14. Waiver and Amendments. Except as expressly provided in this Note, the Series does hereby waive presentment and demand for payment, protest, notice of protest and nonpayment, and notice of the intention to accelerate, and agrees that its liability on this Note shall not be affected by any renewal or extension in the time of payment hereof, by any indulgences, or by any release or change in any security for the payment of this Note. No provision of this Note may be amended, waived or otherwise modified unless such amendment, waiver or other modification is in writing and is signed or otherwise approved by the Series and the Lender.

 

15. Maximum Interest Rate. It is the intention of Lender hereof to conform strictly to applicable usury laws now or hereafter in force, and therefore all agreements between the Series and Lender are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance hereof, or otherwise, shall the amount paid or agreed to be paid to Lender hereof, for the use, forbearance, or detention of the money to be advanced hereunder exceed the highest lawful rate permitted under the laws of the State of Delaware. 

 

16. Unsecured Obligations. The obligations of the Series under this Note shall be unsecured obligations of the Series.

 

17. Optional Conversion. At any time prior to repayment in full or the Maturity Date, Lender may, upon not less than ten (10) Business Days’ prior written notice, elect to convert all or a portion of the then-outstanding Principal Amount and all accrued but unpaid interest into a number of securities being sold in the Offering by the Series equal to (i) the sum of the outstanding Principal Amount plus all accrued but unpaid interest, divided by (ii) the offering price per security in the Offering.

 

18. Authority; No Consents. The Series represents that (a) execution, delivery and performance of this Note have been duly authorized by the Manager pursuant to the Operating Agreement and applicable Series Designation, including authority to issue evidences of indebtedness and to borrow money; and (b) no consent of Economic Members is required in connection herewith.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

 

COMPANY:

 

AGENTIQ SPORTS 1 SERIES [____________],

A DESIGNATED SERIES OF AGENTIQ SPORTS 1 SERIES, LLC

 

By: AGENTIQ SPORTS, INC., as the Series [__] Manager  

 

By:  
Name:     
Title:    

 

THE FOREGOING NOTE IS HEREBY

AGREED TO AND ACCEPTED BY THE UNDERSIGNED:

  

AGENTIQ SPORTS, INC.

 

By:  
Name:     
Title:    

 

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EX1A-6 MAT CTRCT 10 ea029473701ex6-4.htm SOFTWARE AND SERVICES AGREEMENT BY AND BETWEEN NORTH CAPITAL INVESTMENT TECHNOLOGY INC. AND AGENTIQ SPORTS, INC.

Exhibit 6.4

 

SOFTWARE AND SERVICES LICENSE AGREEMENT

 

This Software and Services License Agreement (including the Schedules, the Privacy Policy and the Terms of Use, any addenda and any other applicable company policies referenced herein and therein, as in effect from time to time, collectively and in their entirety, this Agreement), is made and effective as of the date set forth on the signature page below (the Effective Date), contains the terms and conditions upon which North Capital Investment Technology, Inc. (NCIT) grants to the undersigned as licensee (Licensee) a license to use certain software, computer programs, business processes, integrated services and documentation more particularly described on Schedule A.

 

1. Definitions

 

When used in this Agreement, the following terms shall have the respective meanings indicated, such meanings to be applicable to both the singular and plural forms of the terms defined:

 

Access Credentials” means any username, identification number, password, license or security key, security token, PIN or other security code, method, technology or device used, alone or in combination, to verify an individual’s identity and authorization to access and use Hosted Services.

 

Action” has the meaning set forth in Section 12.1.

 

Administrative User” means the Licensee’s agent set forth on the signature page below, if any.

 

Agreement” has the meaning set forth in the preamble.

 

Authorized User” means each of the individuals authorized by or on behalf of Licensee to use the Services pursuant to Section 3.1, including, without limitation, the Administrative User and its personnel.

 

Confidential Information” means, as set forth in Section 9.1 and including, without limitation, the Services, the NCIT Materials and terms and conditions of this Agreement.

 

Data Privacy Law” means Law regarding consumer data privacy rights.

 

Disclosing Party” has the meaning set forth in Section 9.1.

 

Documentation” means the documentation for the Software and Services such as any manuals, instructions or other documents or materials that NCIT provides or makes available to Licensee in any form or medium and which describe the functionality, components, features or requirements of the Services or NCIT Materials, including any aspect of the installation, configuration, integration, operation, use, support or maintenance thereof.

 

Effective Date” has the meaning set forth in the preamble.

 

Error” means a material and continuing failure of the Software and Services to function in conformity with the Specifications.

 

Fees” has the meaning set forth in Section 8.1.

 

Force Majeure Event” has the meaning set forth in Section 14.1.

 

Harmful Code” means any software, hardware or other technology, device or means, including any virus, worm, malware or other malicious computer code, the purpose or effect of which is to: (a) permit unauthorized access to, or to destroy, disrupt, disable, distort or otherwise harm or impede in any manner any (i) computer, software, firmware, hardware, system or network or (ii) any application or function of any of the foregoing or the security, integrity, confidentiality or use of any data Processed thereby; or (b) prevent Licensee or any Authorized User from accessing or using the Services or NCIT Systems as intended by this Agreement. Harmful Code does not include any NCIT Disabling Device.

 

 

Hosted Services” has the meaning set forth in Section 2.1.

 

Indemnitee” has the meaning set forth in Section 12.3.

 

Indemnitor” has the meaning set forth in Section 12.3.

 

Initial Term” has the meaning set forth in Section 10.1.

 

Intellectual Property Rights” means any and all registered and unregistered rights granted, applied for or otherwise now or hereafter in existence under or related to any patent, copyright, trademark, trade secret, database protection or other intellectual property rights laws or practice, and all similar or equivalent rights or forms of protection, in any part of the world.

 

Law” means any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree or other requirement of any federal, state, local or foreign government or political subdivision thereof, regulatory agency or arbitrator, mediator, court or tribunal of competent jurisdiction.

 

Licensee” has the meaning set forth in the preamble.

 

Licensee Data” means, other than Resultant Data, information, data and other content, in any form or medium, that is collected, downloaded or otherwise received, directly or indirectly from Licensee or an Authorized User by or through the Services.

 

Licensee Failure” has the meaning set forth in Section 4.2.

 

Licensee Party” means Licensee and Administrative User, if any.

 

Licensee Systems” means Licensee’s information technology infrastructure, including computers, software, hardware, databases, electronic systems (including database management systems) and networks, whether operated directly by Licensee or through the use of third party services.

 

Losses” means any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys’ fees and the costs of enforcing any right hereunder, collection and pursuing any insurance providers.

 

NCIT” has the meaning set forth in the preamble.

 

NCIT Disabling Device” means any software, hardware or other technology, device or means (including any back door, time bomb, time out, drop dead device, software routine or other disabling device) used by NCIT or its designee to disable any Person’s (including, without limitation, Licensee’s or any Authorized User’s) access to or use of the Services automatically with the passage of time or under the positive control of NCIT or its designee.

 

NCIT Indemnitee” has the meaning set forth in Section 12.2.

 

NCIT Materials” means the Software, Documentation, Specifications and NCIT Systems and any and all other information, data, documents, materials, works and other content, devices, methods, processes, hardware, software and other technologies and inventions, including any Licensee and other customizations, developments, deliverables, technical or functional descriptions, requirements, plans or reports, that are provided, developed or used by NCIT or any Subcontractor in connection with the Services or otherwise comprise or relate to the Services or NCIT Systems. For the avoidance of doubt, NCIT Materials include Resultant Data and any information, data or other content derived from NCIT’s monitoring of Licensee’s access to or use of the Services, but do not include Licensee Data.

 

NCIT Personnel” means all individuals involved in the performance of Services as employees, agents or independent contractors of NCIT or any Subcontractor.

 

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NCIT Systems” means the information technology infrastructure used by or on behalf of NCIT in performing the Services, including all computers, software, hardware, databases, electronic systems (including database management systems) and networks, whether operated directly by NCIT or through the use of third party services.

 

Person” means an individual, corporation, partnership, joint venture, limited liability entity, governmental authority, unincorporated organization, trust, association or other entity.

 

Privacy Policy” means NCIT’s and its affiliates’ data privacy policies, as posted on a Website, as may be amended by NCIT or its affiliates from time to time.

 

Process” means to take any action or perform any operation or set of operations that the Services are capable of taking or performing on any data, information or other content, including to collect, receive, input, upload, download, record, reproduce, store, organize, compile, combine, log, catalog, cross-reference, manage, maintain, copy, adapt, alter, translate, process, retrieve, output, consult, use, perform, display, disseminate, transmit, submit, post, transfer, disclose or otherwise provide or make available, or block, erase or destroy. Processing and Processed have correlative meanings.

 

Receiving Party” has the meaning set forth in Section 9.1.

 

Renewal Term” has the meaning set forth in Section 10.2.

 

Representatives” means, with respect to a Person, that Person’s affiliates and their affiliates’ employees, officers, directors, consultants, agents (including with respect to Licensee, Administrative User), independent contractors, service providers, sub-licensees, subcontractors and legal, tax, financial and other advisors.

 

Resultant Data” means information, data and other content that is derived by or through the Services from Processing or aggregating Licensee Data and is sufficiently different from such Licensee Data that such Licensee Data cannot be reverse engineered or otherwise identified from the inspection, analysis or further Processing of such information, data or content.

 

Scheduled Downtime” has the meaning set forth in Section 5.2.

 

Service Software” means the NCIT software application or applications and any third party or other software, and all new versions, updates, revisions, improvements, customizations (including, without limitation, in connection with this Agreement for or on behalf of Licensee) and modifications of the foregoing, that NCIT provides remote access to and use of as part of the Services.

 

Services” means any services provided by NCIT or its contractors to Licensee in connection with this Agreement and supplemental time and materials (T+M) contracts, including software as a service (SaaS), installation, configuration, integration, customization, training, technical support, payment processing facilitation services, suitability verification services, identity verification services and reporting facilitation services, as may be specified in Schedule A or by addendum, including Hosted Services.

 

Software” means the computer programs specified in Schedule A in machine-readable, object code form, and any computer programs delivered to Licensee in machine-readable, object code form and any updates thereto, or provided by NCIT in connection with any Services hereunder, and the Service Software.

 

Specifications” means NCIT’s current published product release definitions.

 

Subcontractor” has the meaning set forth in Section 2.5.

 

Term” has the meaning set forth in Section 10.2.

 

Terms of Use” means NCIT’s and its affiliates’ website terms of use, as posted on a Website, as may be amended by NCIT or its affiliates from time to time.

 

Third Party Materials” means materials and information, in any form or medium, including any software, documents, data, content, specifications, products, equipment or components of or relating to the Services that are not proprietary to NCIT.

 

Third Party Services” has the meaning set forth in Section 15.15.

 

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Website” means https://www.northcapital.com, https://portal.northcapital.com/home, https://api.norcapsecurities.com/admin_v3/login, https://www.accredited.am, https://www.ppex.com, https://www.northcapital.com/opera-ip, https://www.operaalts.com/ and NCIT’s or its Representative’s other websites from time to time (including all data and information services owned or operated by, on behalf of or through NCIT or its Representatives).

 

2. Services

 

2.1 Services. Subject to and conditioned on Licensee’s and its Authorized Users’ compliance with the terms and conditions of this Agreement, during the Term NCIT shall use commercially reasonable efforts to provide to Licensee and its Authorized Users the Software and Services in accordance with the terms and conditions hereof, including to host, manage, operate and maintain the Service Software for remote electronic access and use by Licensee and its Authorized Users (Hosted Services) on an ongoing basis, except for:

 

(a)Scheduled Downtime in accordance with Section 5.2;

 

(b)Service downtime or degradation due to a Force Majeure Event;

 

(c)Any other circumstances beyond NCIT’s reasonable control, including Licensee’s or any Authorized User’s use of Third Party Materials, misuse of Hosted Services, or use of the Services other than in compliance with the express terms of this Agreement; and

 

(d)Any suspension or termination of Licensee’s or any Authorized Users’ access to or use of Hosted Services as a result of a Licensee Failure or as otherwise permitted by this Agreement.

 

2.2 Service and System Control. Except as otherwise expressly provided in this Agreement, as between the parties:

 

(a)NCIT has and will retain sole control over the operation, provision, maintenance and management of the Services and NCIT Materials, including the: (i) NCIT Systems; (ii) selection, deployment, modification and replacement of the Service Software; and (iii) performance of maintenance, upgrades, corrections and repairs; and

 

(b)Licensee has and will retain sole control over the operation, maintenance and management of, and all access to and use of, the Licensee Systems, and sole responsibility and liability for all access to and use of the Services and NCIT Materials by any Person by or through the Hosted Services, Licensee Systems or any other means controlled by Licensee or any Authorized User, including any information, instructions or materials provided by any of them to NCIT or Subcontractors.

 

2.3 Service Management. Licensee agrees throughout the Term to maintain within its organization a service manager to serve as NCIT’s primary point of contact for day-to-day communications, consultation and decision-making regarding the Services. Licensee shall ensure its service manager has the requisite organizational authority, skill, experience and other qualifications to perform in such capacity. If Licensee’s service manager ceases to be employed by it or it otherwise wishes to replace its service manager, Licensee shall promptly name a new service manager by written notice to NCIT.

 

2.4 Changes. NCIT reserves the right, in its sole discretion, to make any changes to the Services and NCIT Materials that it deems necessary or useful to: (a) maintain or enhance (i) the quality or delivery of NCIT’s services to its customers, (ii) the competitive strength of or market for NCIT’s services or (iii) the Services’ cost efficiency or performance; or (b) to comply with Law.

 

2.5 Subcontractors. NCIT may from time to time in its sole discretion engage third parties to perform Services (each, a Subcontractor).

 

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2.6 Suspension or Termination of Services. NCIT may, directly or indirectly, and by use of a NCIT Disabling Device or any lawful means, suspend, terminate or otherwise deny Licensee’s, any Authorized User’s or any other Person’s access to or use of all or any part of the Services or NCIT Materials, without incurring any resulting obligation or liability, if: (a) NCIT receives a judicial or other governmental or regulatory demand or order, subpoena or law enforcement request that expressly or by reasonable implication requires NCIT to do so; or (b) NCIT believes, in its sole discretion, that (i) Licensee, any Authorized User or any other Person has failed to comply with Law or any term of this Agreement, or accessed or used the Services beyond the scope of the rights granted or for a purpose not authorized under this Agreement, (ii) Licensee, any Authorized User or any other Person is, has been, or is likely to be involved in any fraudulent, misleading or unlawful activities, (iii) Licensee, any Authorized User or any other Person fails for any reason to successfully complete NCIT’s or its affiliate’s due diligence process for any product or service, (iv) this Agreement expires or is terminated, or (v) fair use of concurrent connections exceed 100 connections at any time. This Section 2.6 does not limit any of NCIT’s other rights or remedies, whether at law, in equity or under this Agreement.

 

3. Authorization and Licensee Restrictions; Testing

 

3.1 Authorization. Subject to and conditioned on Licensee Party’s payment of the Fees and compliance and performance in accordance with all other terms and conditions of this Agreement, NCIT hereby authorizes Licensee to nonexclusive, nontransferable access and use, subject to the terms and conditions herein and during the Term, the Services and such NCIT Materials as NCIT may supply or make available to Licensee solely for the use by and through Authorized Users in accordance with the conditions and limitations set forth in this Agreement. This authorization is non-exclusive and, other than as may be expressly set forth in Section 15.7, non-transferable.

 

3.2 Reservation of Rights. Except for the limited license in Section 3.1, nothing in this Agreement grants any right, title or interest in or to (including any license under) any Intellectual Property Rights in or relating to, the Services, NCIT Materials or Third Party Materials, whether expressly, by implication, estoppel or otherwise. All right, title and interest in and to (including all license under) any Intellectual Property Rights in or relating to, the Services, NCIT Materials and Third Party Materials are and will remain with NCIT and the respective rights holders in the Third Party Materials.

 

3.3 Authorization Limitations and Restrictions. Licensee shall not, and shall not permit any other Person to, access or use the Services or NCIT Materials except as expressly permitted by this Agreement and, in the case of Third Party Materials, the applicable third party license agreement. For purposes of clarity and without limiting the generality of the foregoing, Licensee shall not, and shall not permit any other Person to, except as this Agreement expressly permits:

 

(a)modify or create derivative works or improvements of the Services or NCIT Materials;

 

(b)copy the Software and Documentation, unless for archival or backup purposes only; in such case, all titles, trademarks, and copyright, proprietary and restricted rights notices shall be reproduced in all such copies, and all copies shall be subject to the terms of this Agreement;

 

(c)rent, lease, lend, sell, sublicense, assign, distribute, publish, transfer or otherwise make available any Services or NCIT Materials to any Person, including on or in connection with the internet or any time-sharing, service bureau, SaaS, cloud or other technology or service;

 

(d)reverse engineer, disassemble, decompile, decode, adapt or otherwise attempt to derive or gain access to the source code of the Services or NCIT Materials, in whole or in part;

 

(e)bypass or breach any security device or protection used by the Services or NCIT Materials or access or use the Services or NCIT Materials other than by an Authorized User through the use of such Authorized User’s own then valid Access Credentials;

 

(f)input, upload, transmit or otherwise provide to or through the Services or NCIT Systems, any information or materials that are unlawful or injurious, or contain, transmit or activate any Harmful Code;

 

(g)test, damage, destroy, disrupt, disable, impair, interfere with or otherwise impede or harm in any manner the Services, NCIT Systems or NCIT’s provision of services to any third party, in whole or in part;

 

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(h)remove, delete, alter or obscure any trademarks, Documentation, Specification, warranties or disclaimers, or any copyright, trademark, patent or other intellectual property or proprietary rights notices from any Services or NCIT Materials, including any copy thereof;

 

(i)access or use the Services or NCIT Materials in any manner or for any purpose that infringes, misappropriates or otherwise violates any Intellectual Property Right or other right of NCIT or any third party (including by any unauthorized access to, misappropriation, use, alteration, destruction or disclosure of the data of any other NCIT customer), or that violates any Law;

 

(j)take any action that might lead a third party (including an Authorized User) to conclude that the Services or NCIT Materials involve the provision of investment advice or recommendations;

 

(k)access or use the Services or NCIT Materials for purposes of competitive analysis of the Services or NCIT Materials, the development, provision or use of a competing software service or product or any other purpose that is to NCIT’s detriment or commercial disadvantage; or

 

(l)otherwise access or use the Services or NCIT Materials beyond the scope of the authorization granted under Section 3.1.

 

3.4 Testing. Licensee shall not, directly or indirectly, conduct security, technical or other testing of the Services or NCIT Materials without providing NCIT with at least 10 business days’ prior written notice and obtaining NCIT’s prior written authorization of such testing. All relevant information about the type and scope of testing shall accompany Licensee’s written notice to NCIT, and in the event NCIT provides its written authorization, no testing shall be conducted other than as authorized by NCIT. Licensee shall promptly provide NCIT with any results of testing.

 

4. Licensee Obligations

 

4.1 Licensee Systems and Cooperation. Licensee shall at all times during the Term: (a) set up, maintain and operate in good repair all Licensee Systems on or through which the Software or the Services are accessed or used; and (b) provide all cooperation and assistance as NCIT may reasonably request to enable NCIT to exercise its rights and perform its obligations under and in connection with this Agreement.

 

4.2 Effect of Licensee Failure or Delay. NCIT is not responsible or liable for any delay or failure of performance caused in whole or in part by Licensee’s delay in performing, or failure to perform, any of its obligations under this Agreement (each, a Licensee Failure).

 

4.3 Corrective Action and Notice. If Licensee becomes aware of any actual or threatened activity prohibited by Section 3.3, Licensee shall, and shall cause its Authorized Users to, immediately: (a) take all reasonable and lawful measures within their respective control that are necessary to stop the activity or threatened activity and to mitigate its effects (including, where applicable, by discontinuing and preventing any unauthorized access to the Services and NCIT Materials and permanently erasing from their systems and destroying any data to which any of them have gained unauthorized access); and (b) notify NCIT of any such actual or threatened activity.

 

4.4 Consent to Use Licensee Data. Licensee hereby irrevocably grants a license and all such other rights and permissions in or relating to Licensee Data: (a) to NCIT, its Subcontractors and the NCIT Personnel as are necessary or useful to perform the Services or comply with Law; and (b) to NCIT as are necessary or useful to enforce this Agreement and exercise its rights and perform its obligations hereunder.

 

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4.5 Export Laws. Licensee shall adhere to all US Export Administration Law and shall not export or re-export any technical data or products received by or on behalf of NCIT, or the direct products of such technical data, to any proscribed country listed in the then-current US Export Administration Law unless properly authorized by both NCIT and the US Government.

 

4.6 General. Licensee shall ensure its Representatives’ compliance with, and be responsible and liable for, any of its Representatives’ non-compliance with, the terms of this Agreement as if such non-compliance had been by Licensee.

 

5. Service Levels

 

5.1 Service Levels. Subject to the terms and conditions of this Agreement, NCIT will use commercially reasonable efforts to make Hosted Services available for access and use by Licensee and its Authorized Users over the Internet at least 99% of the time as measured over the course of each calendar month during the Term excluding unavailability due, in whole or in part, to any: (a) act or omission by Licensee or any Authorized User, access to or use of Hosted Services by Licensee or any Authorized User, or using Licensee’s or an Authorized User’s Access Credentials, that does not strictly comply with this Agreement; (b) Licensee Failure; (c) Licensee’s or its Authorized User’s Internet connectivity; (d) Force Majeure Event; (e) failure, interruption, outage or other problem with any software, hardware, system, network, facility or other matter not supplied by NCIT pursuant to this Agreement; (f) Scheduled Downtime; or (g) disabling, suspension or termination of the Services pursuant to Section 2.6. Service levels cannot be guaranteed and NCIT shall not be liable to Licensee or Authorized Users in the event Hosted Services are unavailable.

 

5.2 Scheduled Downtime. NCIT will use commercially reasonable efforts to: (a) schedule downtime for routine maintenance of Hosted Services between the hours of 12:00 a.m. and 6:00 a.m., Eastern Standard Time; and (b) give Licensee at least 24 hours prior notice of all scheduled outages of Hosted Services (Scheduled Downtime).

 

6. Data Backup

 

To the extent required by Law applicable to NCIT or its affiliates, NCIT will use commercially reasonable efforts to maintain regular data backups of Licensee Data; provided however, that NCIT HAS NO OBLIGATION OR LIABILITY FOR ANY LOSS, ALTERATION, DESTRUCTION, DAMAGE, CORRUPTION OR RECOVERY OF LICENSEE DATA.

 

7. Privacy

 

7.1 NCIT Systems and Obligations. This Agreement incorporates by reference the Privacy Policy and the Terms of Use. In the event of any conflict between this Agreement and the Terms of Use, the terms of this Agreement shall prevail. To the extent an Authorized User will be disclosing information using the Services, Licensee shall ensure that its privacy policy and terms of use incorporate by reference a link to and an acknowledgement by Authorized Users of the Privacy Policy and Terms of Use or otherwise incorporate terms with substantially the same effect and permit the use of such information by NCIT and its Representatives in connection with the Services.

 

7.2 Prohibited Data. Licensee acknowledges that the Services are not designed with security and access management for Processing the following categories of information: (a) data that is classified and or used on the U.S. Munitions list, including software and technical data; (b) articles, services and related technical data designated as defense articles or defense services; (c) ITAR (International Traffic in Arms Regulations) related data; or (d) protected health information (each of the foregoing, Prohibited Data). Licensee shall not, and shall not permit any Authorized User or other Person to, provide any Prohibited Data to, or Process any Prohibited Data through, the Services, the NCIT Systems or any NCIT Personnel. Licensee is solely responsible for reviewing all Licensee Data and shall ensure that no Licensee Data constitutes or contains any Prohibited Data.

 

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7.3 Licensee Control and Responsibility. Licensee has and will retain sole responsibility for: (a) all Licensee Data (excluding data transmitted directly into the NCIT Systems by an Authorized User unaffiliated with Licensee), including its content and use, except as set forth in the Privacy Policy; (b) all information, instructions and materials provided by or on behalf of Licensee or any Authorized User in connection with the Services; (c) Licensee Systems; (d) the security and use of Licensee’s and its Authorized Users’ Access Credentials; (e) all access to and use of the Services and NCIT Materials directly or indirectly by or through the Licensee Systems or its or its Authorized Users’ Access Credentials, with or without Licensee’s knowledge or consent, including all results obtained from, and all conclusions, decisions and actions based on, such access or use; and (f) compliance with Data Privacy Law in connection with Licensee Data.

 

7.4 Access and Security. Licensee shall employ all physical, administrative and technical controls, screening and security procedures and other safeguards necessary to: (a) securely administer the distribution and use of all Access Credentials and protect against any unauthorized access to or use of Hosted Services; (b) control the content and use of Licensee Data, including the uploading or other provision of Licensee Data for Processing by Hosted Services; and (c) prevent access and use of the Services and NCIT Materials other than by Authorized Users through the use of each such Authorized User’s own then valid Access Credentials. Licensee agrees only Authorized Users will access and use the Services and NCIT Materials through the use of such Authorized User’s own then valid Access Credentials and Licensee assumes all responsibility with respect thereto.

 

8. Fees; Payment Terms

 

8.1 Fees. Administrative User shall pay NCIT the fees set forth on Schedule B and Schedule C (Fees) in accordance with this Section 8; provided that if Administrative User fails to timely pay the Fees for any reason, or if there is no Administrative User, Licensee shall pay NCIT the Fees in accordance with this Section 8. Subject to this Section 8.1, Licensee Party shall be jointly and severally liable to NCIT for the payment of all Fees.

 

8.2 Fee Increases. After the Initial Term (as defined below), NCIT may increase Fees by providing written notice to Licensee Party at least 30 days prior to the effective date of the Fee increase, and the Fees will be deemed amended accordingly without further notice or consent; provided that NCIT will not increase Fees during the Initial Term. Licensee may terminate this Agreement upon providing written notice to NCIT within 30 days of receipt of the notice of Fee increase.

 

8.3 Taxes. All Fees and other amounts payable by Licensee Party under this Agreement are exclusive of taxes and similar assessments. Licensee Party is responsible for all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any federal, state or local governmental or regulatory authority on any amounts payable by Licensee Party hereunder, other than any taxes levied or imposed on NCIT’s income.

 

8.4 Payment. All Fees will be invoiced monthly by the 10th of the month and will be charged automatically on the 15th (or the next business day, if the 15th falls on a weekend or holiday) of each month, or as otherwise set forth on Schedule B and Schedule C, to the credit card or other payment method used for the purchase under this Agreement or in creating Licensee Party’s account (as set forth on the signature page below). Licensee Party consents to NCIT retaining and using Licensee Party’s payment information for future invoices and as provided in this Agreement. Licensee Party agrees and acknowledges that NCIT and its third party vendors may retain and use Licensee Party’s payment information to facilitate the payments provided for in this Agreement. Licensee Party agrees to promptly provide NCIT with written notice of any update of or changes to your payment information. All payments shall be in US dollars in immediately available funds.

 

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8.5 Late Payment. If Licensee Party fails to make any payment when due then, in addition to all other remedies that may be available:

 

(a)NCIT may charge interest on the past due amount at the rate of 1.5% per month, calculated daily and compounded monthly, or if lower, the highest rate permitted under Law; such interest may accrue after as well as before any judgment relating to collection of the amount due;

 

(b)Licensee Party shall reimburse NCIT for all costs incurred by NCIT in collecting any late payments or interest, including attorneys’ fees, court costs and collection agency fees; and

 

(c)if such failure continues for 10 days following written notice thereof, NCIT may suspend performance of the Services until all past due amounts and interest thereon have been paid, without incurring any obligation or liability to Licensee Party or any other Person by reason of such suspension;

 

provided that cumulative late payments are subject to the overall limits set forth in Schedule B. A default under this Agreement by Licensee Party shall constitute a default by Licensee Party or its affiliates under all other agreements any of them have then in effect with NCIT or its affiliates. NCIT may offset for any amounts owed or payable to it or its affiliates under this Agreement against any amounts held by, on deposit with or received by them for any Loss for which Licensee may be responsible under this Agreement (including, without limitation, any unpaid Fees), whether or not indemnified as described in Section 12 of this Agreement.

 

8.6 No Deductions or Setoffs. All amounts payable to NCIT under this Agreement shall be paid by Licensee Party to NCIT in full without any setoff, recoupment, counterclaim, deduction, debit or withholding for any reason (other than any deduction or withholding of tax as may be required by Law).

 

9. Confidentiality

 

9.1 Confidential Information. In connection with this Agreement, each party (Disclosing Party) may disclose or make available Confidential Information to the other party (Receiving Party). Subject to Section 9.2, Confidential Information means information in any form or medium (whether oral, written, electronic or other) that Disclosing Party considers confidential or proprietary, including information consisting of or relating to Disclosing Party’s or its affiliates’ technology, trade secrets, know-how, business operations, plans, strategies, customers, and pricing, and information with respect to which Disclosing Party has contractual or other confidentiality obligations, in each case whether or not marked, designated or otherwise identified as confidential. Without limiting the foregoing, all Services and NCIT Materials, including the terms of this Agreement, are the Confidential Information of NCIT.

 

9.2 Exclusions. Confidential Information does not include information that Receiving Party can demonstrate by written or other documentary records: (a) was lawfully known to Receiving Party without restriction on use or disclosure prior to such information’s being disclosed or made available to Receiving Party in connection with this Agreement; (b) was or becomes generally known by the public other than by Receiving Party’s or any of its Representatives’ noncompliance with this Agreement; (c) was or is received by Receiving Party on a non-confidential basis from a third party that was not or is not, at the time of such receipt, under any obligation to maintain its confidentiality; or (d) Receiving Party can demonstrate by written or other documentary records was or is independently developed by Receiving Party without reference to or use of any Confidential Information.

 

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9.3 Protection of Confidential Information. As a condition to being provided with any disclosure of or access to Confidential Information, Receiving Party shall:

 

(a)not access or use Confidential Information other than as necessary to exercise its rights or perform its obligations under and in accordance with this Agreement;

 

(b)except as may be permitted by and subject to its compliance with Section 9.4, not reveal, disclose or permit access to Confidential Information other than to its Representatives who: (i) need to know such Confidential Information for purposes of Receiving Party’s exercise of its rights or performance of its obligations under and in accordance with this Agreement; (ii) have been informed of the confidential nature of the Confidential Information; and (iii) are bound by confidentiality and restricted use obligations in substantially similar effect as the terms set forth in this Section 9.3;

 

(c)safeguard and protect the Confidential Information from theft, piracy or unauthorized use, access or disclosure using at least the degree of care it uses to protect its similarly sensitive information and in no event less than a reasonable degree of care;

 

(d)ensure its Representatives’ compliance with, and be responsible and liable for any of its Representatives’ non-compliance with, the terms of this Agreement, including this Section 9; and

 

(e)notify Disclosing Party upon discovery of any prohibited use or disclosure of the Confidential Information, or any other breach of these confidentiality obligations by Receiving Party, and shall cooperate with Disclosing Party to help Disclosing Party regain possession of the Confidential Information and prevent the further prohibited use or disclosure of the Confidential Information.

 

9.4 Compelled Disclosures. If Receiving Party or any of its Representatives is compelled by Law to disclose any Confidential Information then, to the extent permitted by Law, Receiving Party shall: (a) promptly, and prior to such disclosure, notify Disclosing Party in writing of such requirement so that Disclosing Party can seek a protective order or other remedy or waive its rights under Section 9.3; and (b) provide reasonable assistance to Disclosing Party in opposing such disclosure or seeking a protective order or other limitations on disclosure. If Disclosing Party waives compliance or, after providing the notice and assistance required under this Section 9.4, Receiving Party remains required by Law to disclose any Confidential Information, Receiving Party shall disclose only that portion of the Confidential Information that Receiving Party is legally required to disclose and, on Disclosing Party’s request, shall use commercially reasonable efforts to obtain assurances from the applicable court or other presiding authority that such Confidential Information will be afforded confidential treatment.

 

Notwithstanding the foregoing, the restrictions and requirements in this Section 9 shall not apply to, and NCIT and its Representatives may disclose and retain copies of, Confidential Information in connection with NCIT’s or its Representatives’ compliance with legal, financial or regulatory filings, audits or examinations or as otherwise required by Law.

 

10. Term and Termination

 

10.1 Initial Term. The initial term of this Agreement commences as of the Effective Date and, unless terminated earlier pursuant any of the Agreement’s express provisions, will continue in effect for one year (the Initial Term).

 

10.2 Renewal. This Agreement will automatically renew for additional successive one-year terms unless earlier terminated pursuant to this Agreement’s express provisions or either party gives the other party written notice of non-renewal at least 30 days prior to the expiration of the then-current term (each a Renewal Term and, collectively with the Initial Term, the Term). Renewal of promotional or one-time priced subscriptions will be at NCIT’s list price in effect at the time of the applicable renewal.

 

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10.3 Termination. In addition to Section 8.2 and Section 10.2:

 

(a)NCIT may terminate this Agreement, effective on written notice to Licensee, if Licensee: (i) fails to pay any amount when due hereunder, and such failure continues more than 30 days after NCIT’s delivery of written notice thereof; (ii) breaches any of its obligations under Section 3.3 (Authorization Limitations and Restrictions), Section 7.2 (Prohibited Data) or Section 9 (Confidentiality); or (iii) fair use of concurrent connections exceed 100 connections at any time;

 

(b)Either party may terminate this Agreement, effective on written notice to the other party, if the other party materially breaches this Agreement, and such breach: (i) is incapable of cure within three business days of written notice to the breaching party of the breach and the non-breaching party’s intent to terminate this Agreement; or (ii) being capable of cure, remains uncured 30 days after the non-breaching party provides the breaching party with written notice of such breach;

 

(c)Either party may terminate this Agreement, effective immediately upon written notice to the other party, if the other party: (i) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due; (ii) files or has filed against it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law; (iii) makes or seeks to make a general assignment for the benefit of its creditors; or (iv) applies for or has appointed a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business; and

 

(d)Either party may terminate this Agreement upon 30 days written notice to the other for any commercial or business reason.

 

10.4 Effect of Expiration or Termination. Upon any expiration or termination of this Agreement, except as expressly otherwise provided in this Agreement (including Section 10.5 below):

 

(a)all rights, licenses, consents and authorizations granted by either party to the other hereunder will immediately terminate;

 

(b)NCIT shall promptly cease all use of any Licensee Data or Licensee’s Confidential Information and erase all Licensee Data and Licensee’s Confidential Information from all systems NCIT controls; provided that, (i) for clarity, NCIT’s obligations under this Section 10.4(b) do not apply to any Resultant Data, (ii) NCIT and its affiliates may retain, use and disclose Licensee Data or Licensee Confidential Information as required by Law, and (iii) NCIT and its affiliates may retain Licensee Data and Licensee Confidential Information in its regular backup, archived or disaster recovery systems or files;

 

(c)Licensee shall promptly cease all use of any Services or NCIT Materials and (i) promptly return to NCIT, or at NCIT’s written request destroy, all documents and tangible materials containing, reflecting, incorporating or based on any NCIT Materials or NCIT’s Confidential Information; and (ii) permanently erase all NCIT Materials and NCIT’s Confidential Information from all systems Licensee directly or indirectly controls; provided that Licensee may retain NCIT Materials or NCIT’s Confidential Information in its regular backup, archived or disaster recovery systems or files, or as permitted by Section 9.4; provided, further, any Confidential Information retained hereunder shall be retained in confidence and not otherwise used, except as required by applicable law, rule, regulation or judicial order; an officer or director of Licensee shall, within 30 days from the effective date of the termination, certify in writing that all copies of the Software and Documentation have been returned, deleted and destroyed;

 

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(d)NCIT may disable all Licensee and Authorized User access to Hosted Services and NCIT Materials;

 

(e)if Licensee terminates this Agreement pursuant to Section 10.3(b), Licensee will be relieved of any obligation to pay any Fees attributable to the period after the effective date of such termination; and

 

(f)if NCIT terminates this Agreement pursuant to Section 10.3(a), Section 10.3(b) or Section 10.3(c), all Fees that would have become payable had the Agreement remained in effect until expiration of the Term will become immediately due and payable, and Licensee shall pay such Fees, together with all previously-accrued but not yet paid Fees, on receipt of NCIT’s invoice therefor.

 

Upon Licensee’s request and subject to NCIT’s availability, during the period between a party’s notice of termination and termination, NCIT will use commercially reasonable efforts to assist Licensee in effecting a transition of the Services provided by NCIT hereunder to Licensee or another vendor chosen by Licensee, including the exporting of Licensee Data. Licensee shall pay NCIT for such services on a time and material (T+M) basis pursuant to Schedule C.

 

ALL SALES ARE FINAL; NO REFUNDS OR EXCHANGES.

 

10.5 Surviving Terms. The provisions set forth in the following sections, and any other rights or obligations of the parties in this Agreement that, by their nature, should survive termination or expiration of this Agreement, will survive any expiration or termination of this Agreement (including, without limitation, Section 9 (Confidentiality), Section 8 (Fees; Payment Terms), Section 10 (Term and Termination), Section 12 (Indemnification), Section 13 (Limitations of Liability) and Section 15 (Miscellaneous)).

 

11. Representations, Warranties and Covenants

 

11.1 Mutual Representations and Warranties. Each party represents and warrants to the other party that:

 

(a)it is duly organized, validly existing and in good standing as a corporation or other entity under the laws of the jurisdiction of its incorporation or other organization;

 

(b)it has the full right, power and authority to enter into and perform its obligations and grant the rights, licenses, consents and authorizations it grants or is required to grant under this Agreement;

 

(c)the execution of this Agreement has been duly authorized by all necessary corporate or organizational action of such party;

 

(d)its signatory to this Agreement is authorized to execute this Agreement on such party’s behalf; and

 

(e)this Agreement constitutes the legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms.

 

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11.2 Additional NCIT Representations, Warranties and Covenants. NCIT represents, warrants and covenants to Licensee that NCIT will perform the Services using personnel of required skill, experience and qualifications and in a professional and workmanlike manner in accordance with generally recognized industry standards for similar services and will devote adequate resources to meet its obligations under this Agreement. NCIT also represents to Licensee that: (a) during the Term, the Software shall operate without any material Errors; and (b) upon notification to NCIT of any Errors, NCIT’s sole liability, and Licensee’s sole remedy, will be NCIT’s use of reasonable efforts during its normal business hours and at no cost to Licensee to correct such Errors that are verifiable and reproducible by NCIT, excluding any Errors caused by uses of the Software and Services not in accordance with the Specifications. Alternatively, in NCIT’s sole discretion, NCIT may refund the portion of the prepaid Fees applicable to the portion of the Software that is defective.

 

11.3 Additional Licensee Representations, Warranties and Covenants. Licensee represents, warrants and covenants to NCIT that Licensee owns or otherwise has and will have the necessary rights and consents in and relating to the Licensee Data so that, as received by NCIT and Processed in accordance with this Agreement, they do not and will not infringe, misappropriate or otherwise violate any Intellectual Property Rights, or any privacy or other rights of any third party or violate any Law. Licensee acknowledges and agrees that the Services provided by NCIT under this Agreement are administrative and technological in nature and that NCIT is not providing investment advice, or otherwise acting in an investment advisory capacity, to Licensee or any Authorized User.

 

11.4 DISCLAIMER OF WARRANTIES. EXCEPT FOR NCIT’S EXPRESS WARRANTIES SET FORTH IN SECTION 11.1, SECTION 11.2 AND SECTION 11.3, ALL SERVICES AND NCIT MATERIALS ARE PROVIDED AS IS AND NCIT HEREBY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHER, AND NCIT SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT, AND ALL WARRANTIES ARISING FROM COURSE OF DEALING, USAGE OR TRADE PRACTICE. NCIT DOES NOT PROVIDE ANY INVESTMENT ADVISORY SERVICE, DUE DILIGENCE, BROKERAGE, FINANCIAL MANAGEMENT, TAX, ACCOUNTING OR ANY OTHER PROFESSIONAL SERVICE, AND ANY ADVICE OR OTHER INFORMATION OBTAINED THROUGH NCIT’S PRODUCTS AND SERVICES WILL BE USED BY LICENSEE AND ITS AUTHORIZED USERS SOLELY AT THEIR OWN RISK. WITHOUT LIMITING THE FOREGOING, NCIT MAKES NO WARRANTY OF ANY KIND THAT THE SERVICES OR NCIT MATERIALS, OR ANY PRODUCTS OR RESULTS OF THE USE THEREOF, WILL MEET LICENSEE’S OR ANY OTHER PERSON’S REQUIREMENTS, OPERATE WITHOUT INTERRUPTION, ACHIEVE ANY INTENDED RESULT, BE COMPATIBLE OR WORK WITH ANY SOFTWARE, SYSTEM OR OTHER SERVICES, OR BE SECURE, ACCURATE, COMPLETE, FREE OF HARMFUL CODE OR ERROR FREE. ALL THIRD PARTY MATERIALS ARE PROVIDED AS IS AND ANY REPRESENTATION OR WARRANTY OF OR CONCERNING ANY THIRD PARTY MATERIALS IS STRICTLY BETWEEN LICENSEE AND THE THIRD PARTY OWNER OR DISTRIBUTOR OF THE THIRD PARTY MATERIALS.

 

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12. Indemnification

 

12.1 NCIT Indemnification. Subject to the limitations on liability in this Agreement, including as set forth in Section 13, NCIT shall release, indemnify, defend and hold harmless Licensee from and against any and all Losses incurred by Licensee arising out of or relating to any legal suit, dispute, claim, action, exam, audit, inquiry or proceeding (each, an Action) by a third party (other than an affiliate of Licensee) to the extent that such Losses arise from Licensee’s or an Authorized User’s use of the Services (excluding Licensee Data and Third Party Materials) in compliance with this Agreement infringes a U.S. Intellectual Property Right. The foregoing obligation does not apply to any Action or Losses arising out of or relating to any:

 

(a)access to or use of the Services or NCIT Materials in combination with any hardware, system, software, network or other materials or service not provided or authorized in writing by NCIT;

 

(b)modification of the Services or NCIT Materials other than: (i) by or on behalf of NCIT; or (ii) with NCIT’s written approval in accordance with NCIT’s written specification;

 

(c)failure to timely implement any modifications, upgrades, replacements or enhancements made available to Licensee by or on behalf of NCIT; or

 

(d)act, omission or other matter described in Section 12.2(a)-(g), whether or not the same results in any Action against or Losses by any NCIT Indemnitee.

 

12.2 Licensee Indemnification. Licensee shall and shall cause its affiliates, jointly and severally, to release, indemnify, defend and hold harmless NCIT and its Subcontractors and their Representatives and successors and assigns (each, a NCIT Indemnitee) from and against any and all Losses incurred by such NCIT Indemnitee, and no NCIT Indemnitee shall be liable for any Losses, in connection with any Action regardless of the source that arises out of or relates to this Agreement or any of the following:

 

(a)Licensee Data, including any Processing of Licensee Data by or on behalf of NCIT in accordance with this Agreement;

 

(b)securities offering facilitated by Licensee or its affiliates or their Representatives, including any and all data and documentation related to such offering, the due diligence related to such offering, and/or the determination of suitability or qualification of a prospective investor for an offering;

 

(c)any other materials or information (including any documents, data, specifications, software, content or technology) provided by or on behalf of Licensee or any Authorized User, including NCIT’s compliance with any specifications or directions provided by or on behalf of Licensee or any Authorized User, to the extent prepared without any contribution by NCIT;

 

(d)brokerage services or investment advice; recommendations regarding any particular investment, security or course of action; offers to invest or to provide financial analysis or management services; or similar advice, offers or guidance to Authorized Users, which shall remain the sole responsibility of Licensee;

 

(e)allegation of facts that, if true, would constitute Licensee’s breach of any of its representations, warranties, covenants or obligations under this Agreement;

 

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(f)negligence or more culpable act or omission (including recklessness or willful misconduct) by Licensee, any Authorized User, or any third party on behalf of Licensee or any Authorized User, in connection with this Agreement; or

 

(g)transaction for which the Services or NCIT Materials is being used by or on behalf of Licensee or an Authorized User.

 

Notwithstanding, Licensee will not be responsible for any Losses primarily caused by NCIT’s fraud, willful misconduct or gross negligence as determined by a court of competent jurisdiction pursuant to Section 15.11 by final unappealed or unappealable order and NCIT agrees to immediately refund any indemnification payments made to a NCIT Indemnitee upon such determination.

 

12.3 Indemnification Procedure. Each party shall promptly notify the other party in writing of any Action for which such party believes it is entitled to be indemnified pursuant to Section 12.1 or Section 12.2, as the case may be. The party seeking indemnification (the Indemnitee) shall cooperate with the other party (the Indemnitor) at the Indemnitor’s sole cost and expense. The Indemnitor shall immediately take control of the defense and investigation of such Action and shall employ counsel reasonably acceptable to the Indemnitee to handle and defend the same, at the Indemnitor’s sole cost and expense. The Indemnitee’s failure to perform any obligations under this Section 12.3 will not relieve the Indemnitor of its obligations under this Section 12 except to the extent that the Indemnitor can demonstrate that it has been materially prejudiced as a result of such failure. The Indemnitee may participate in and observe the proceedings at its own cost and expense with counsel of its own choosing.

 

12.4 Mitigation. If any of the Services or NCIT Materials are, or in NCIT’s opinion are likely to be, claimed to infringe, misappropriate or otherwise violate any third party Intellectual Property Right, or if Licensee’s or any Authorized User’s use of the Services or NCIT Materials is enjoined or threatened to be enjoined, NCIT may, at its option:

 

(a)at NCIT’s sole cost and expense, obtain the right for Licensee to continue to use the Services and NCIT Materials materially as contemplated by this Agreement;

 

(b)at NCIT’s sole cost and expense, modify or replace the Services and NCIT Materials, in whole or in part, to seek to make the Services and NCIT Materials (as so modified or replaced) non-infringing, while providing substantially equivalent features and functionality, in which case such modifications or replacements will constitute Services and NCIT Materials, as applicable, under this Agreement; or

 

(c)by written notice to Licensee, terminate this Agreement and require Licensee to immediately cease any use of and destroy or return all copies of the Services and NCIT Materials in its possession or under its control.

 

THIS SECTION 12 SETS FORTH LICENSEE’S SOLE REMEDIES AND NCIT’S SOLE LIABILITY AND OBLIGATION FOR ANY ACTUAL, THREATENED OR ALLEGED CLAIMS THAT THIS AGREEMENT OR ANY SUBJECT MATTER HEREOF (INCLUDING THE SERVICES AND NCIT MATERIALS) INFRINGES, MISAPPROPRIATES OR OTHERWISE VIOLATES ANY THIRD PARTY INTELLECTUAL PROPERTY RIGHT.

 

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13. Limitations of Liability

 

13.1 EXCLUSION OF DAMAGES. NCIT AND ITS AFFILIATES AND THEIR SERVICE PROVIDERS AND SUPPLIERS (NCIT PARTIES) SHALL NOT BE LIABLE UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, INDEMNIFICATION, BREACH OF WARRANTY, MISREPRESENTATIONS OR OTHERWISE, FOR ANY: (a) LOSS OF PRODUCTION, USE, BUSINESS, REVENUE OR PROFIT OR DIMINUTION IN VALUE; (b) IMPAIRMENT, INABILITY TO USE OR LOSS, INTERRUPTION OR DELAY OF THE SERVICES; (c) LOSS, DAMAGE, CORRUPTION OR RECOVERY OF DATA, OR BREACH OF DATA OR SYSTEM SECURITY; OR (d) CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, ENHANCED OR PUNITIVE DAMAGES, REGARDLESS OF WHETHER SUCH PERSONS WERE ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES OR SUCH LOSSES OR DAMAGES WERE OTHERWISE FORESEEABLE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. BOTH PARTIES UNDERSTAND AND AGREE THAT THE REMEDIES AND LIMITATIONS HEREIN ALLOCATE THE RISKS OF PRODUCT AND SERVICE NONCONFORMITY BETWEEN THE PARTIES AS AUTHORIZED BY LAW. THE FEES HEREIN REFLECT, AND ARE SET IN RELIANCE UPON, THIS ALLOCATION OF RISK AND THE EXCLUSION OF CONSEQUENTIAL DAMAGES SET FORTH IN THIS AGREEMENT.

 

13.2 CAP ON MONETARY LIABILITY. IN ANY EVENT, THE COLLECTIVE AGGREGATE LIABILITY OR OBLIGATION OF NCIT PARTIES UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER, UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF WARRANTY, MISREPRESENTATIONS, INDEMNIFICATION OR OTHERWISE, SHALL BE LIMITED TO THE AMOUNT PAID TO NCIT BY LICENSEE IN LICENSING FEES UNDER THIS AGREEMENT IN THE PRECEDING 12 MONTHS. THE FOREGOING LIMITATION APPLIES NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

 

14. Force Majeure

 

14.1 No Breach or Default. In no event will NCIT be liable or responsible to Licensee, or be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any payment obligation) when and to the extent such failure or delay is caused by any circumstances beyond such party’s reasonable control (a Force Majeure Event), including acts of God, flood, fire, earthquake or explosion, pandemic, war, terrorism, invasion, riot or other civil unrest, embargoes or blockades in effect on or after the date of this Agreement, national or regional emergency, strikes, labor stoppages or slowdowns or other industrial disturbances, passage of Law or any action taken by a governmental or public authority, including imposing an embargo, export or import restriction, quota or other restriction or prohibition or any complete or partial government shutdown, or national or regional shortage of adequate power or telecommunications or transportation. NCIT may terminate this Agreement if a Force Majeure Event continues substantially uninterrupted for a period of 30 days or more.

 

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14.2 Affected Party Obligations. In the event of any failure or delay caused by a Force Majeure Event, NCIT will give prompt written notice to Licensee stating the period of time the occurrence is expected to continue and use commercially reasonable efforts to end the failure or delay and minimize the effects of such Force Majeure Event.

 

15. Miscellaneous

 

15.1 Relationship of the Parties. The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever.

 

15.2 Public Announcements. Neither party shall issue or release any announcement, statement, press release or other publicity or marketing materials relating to this Agreement or otherwise use the other party’s trademarks, service marks, trade names, logos, domain names or other indicia of source, affiliation or sponsorship, in each case, without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that NCIT may, without Licensee’s consent, include Licensee’s name and logo in NCIT’s promotional and marketing materials.

 

15.3 Notices. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (notices) have binding legal effect only if in writing and addressed to NCIT as follows (or to such other address or such other Person that NCIT may designate from time to time in accordance with this Section 15.3):

 

North Capital Investment Technology, Inc. Attention: Legal Department 623 E. Fort Union Boulevard, Suite 101 Midvale, Utah 84047

 

With a copy to (which shall not constitute notice):

 

North Capital Investment Technology, Inc. Attention: James P. Dowd, President & CEO 623 E. Fort Union Boulevard, Suite 101 Midvale, Utah 84047 Email: jdowd@northcapital.com

 

Notices sent in accordance with this Section 15.3 will be deemed effectively given: (a) when received, if delivered by hand, with signed confirmation of receipt; (b) when received, if sent by a nationally recognized overnight courier, signature required; or (c) on the third day after the date mailed by certified or registered mail, return receipt requested, postage prepaid.

 

Notwithstanding, Licensee Party agrees that NCIT can provide notices to Licensee Party through NCIT or its affiliates’ website or by mailing them to the email or physical addresses on file with NCIT (as may be initially set forth on the signature page hereto). Such delivery of notices has the same legal effect as if NCIT provided Licensee Party with a physical copy and will be deemed to have been received within 24 hours of the time a notice is posted or sent.

 

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15.4 Interpretation. The parties intend this Agreement to be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. Further, the headings used in this agreement are for convenience only and are not intended to be used as an aid to interpretation.

 

15.5 Entire Agreement. This Agreement constitutes the sole and entire agreement between the parties with respect to the subject matter of this Agreement and supersedes and merges all prior and contemporaneous proposals, understandings, agreements, representations and warranties, both written and oral, between the parties relating to such subject matter.

 

15.6 Licensee Information Sharing. To the extent Licensee will be sharing personal or financial information of a third party in connection with this Agreement, Licensee shall maintain and obtain the agreement of each such third party, which shall permit the sharing of such third party’s information with NCIT and its affiliates and service providers for NCIT and its affiliates and service providers to use, disclose and retain it in connection with this Agreement and the provision of the services hereunder and as required by Law. NCIT and its affiliates each shall be a third party beneficiary to such agreement.

 

15.7 Assignment. Licensee shall not assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance, under this Agreement, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without NCIT’s prior written consent. No delegation or other transfer will relieve Licensee of any of its obligations or performance under this Agreement. Any purported assignment, delegation or transfer in violation of this Section 15.7 is void. Subject to this Section 15.7, this Agreement is binding upon and inures to the benefit of the parties and their respective successors and assigns.

 

15.8 No Third Party Beneficiaries. Subject to Section 12 and Section 15.7, this Agreement is for the sole benefit of the parties and their respective successors and assigns, and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

15.9 Amendment and Modification; Waiver. Except as set forth herein, no amendment to or modification of this Agreement is effective unless it is in writing and signed by an authorized representative of each party. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

15.10 Severability. If any provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible.

 

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15.11 Governing Law; Submission to Jurisdiction. This Agreement is governed by and shall be construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule that would require or permit the application of the laws of any other jurisdiction. Any Action arising out of or related to this Agreement, the licenses granted hereunder or the transactions contemplated hereby shall be instituted exclusively in the federal courts of the United States of America or the courts of the State of Utah, in each case located in Salt Lake City, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such Action. In the event of any Action arising out of or related to this Agreement, the licenses granted hereunder or the transactions contemplated hereby, the prevailing party thereto shall be entitled to, in addition to any other damages assessed, its reasonable attorneys’ fees and all other costs and expenses incurred in connection therewith, including, without limitation, cost of collection and enforcement and in pursuit of insurance claims; provided that any obligation by NCIT hereunder remains subject to Section 13.

 

15.12 WAIVER OF JURY TRIAL. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE LICENSES GRANTED HEREUNDER OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

15.13 Equitable Relief. Each party acknowledges and agrees that a breach or threatened breach by such party of any of its obligations under this Agreement may cause the other party irreparable harm for which monetary damages would not be an adequate remedy and agrees that, in the event of such breach or threatened breach, the other party will be entitled to seek equitable relief, including a restraining order, an injunction, specific performance and any other relief that may be available from any court, without any requirement to post a bond or other security, or to prove actual damages or that monetary damages are not an adequate remedy. Such remedies are not exclusive and are in addition to all other remedies that may be available at law, in equity or otherwise.

 

15.14 Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. A signed copy of this Agreement by facsimile, email or other means of electronic transmission or signature is deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

15.15 Third Party Services. NCIT and its affiliates may reference or provide access to third party services, products and promotions that utilize, integrate or provide ancillary services to the Services (Third Party Services). These Third Party Services are provided for Licensee convenience only and do not constitute NCIT’s or its affiliates’ endorsement, approval, or recommendation of any such Third Party Services. Licensee’s access and use of any Third Party Service is based on Licensee’s own evaluation and at Licensee’s own risk. If Licensee decides to use a Third Party Service, Licensee will be responsible for reviewing, understanding and accepting the terms and conditions associated with such use. NCIT and its affiliates expressly disclaim all responsibility and liability for Licensee use of any Third Party Service. Licensee use of a Third Party Service is subject to that Third Party Service’s own terms of use and privacy policies.

 

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In witness whereof, the Parties have executed this Agreement as of the Effective Date.

 

Effective Date: 1/13/2026

 

 

LICENSEE     NCIT
 

Agentiq Sports, Inc.

    North Capital Investment Technology Inc.
         
By: /s/ Zach Kurtz   By: /s/ James Dowd
Name: Zach Kurtz   Name: James Dowd
Title: Founder and CEO   Title: CEO
Address: 445 Bryant Street, San Francisco CA 94107, United States      
Email: zach@agentiqsports.com      

 

Administrative User, if any, is signing below for the limited purposes of Section 8 (Fees; Payment Terms), Section 9 (Confidentiality), Section 10.5 (Surviving Terms), 15.3 (Notices) and 15.11 (Governing Law; Submission to Jurisdiction) and shall not otherwise be a party to this Agreement.

 

ADMINISTRATIVE USER (if any):  
     
   
   
By:    
Name:    
Title:    
Date:    
Address:    

 

LICENSEE PARTY PAYMENT INFORMATION:

 

Licensee to select from the following options for payment of the Fees set forth in Schedule B and Schedule C:

 

  Credit Card*
     
    Name on Card:___________________________________________________________
    Credit Card Number:_______________________________________________________
    Expiration Date (Month/Year):_______________________________________________
    Billing Address:__________________________________________________________
    Telephone Number:_______________________________________________________
     
  ACH Draw
     
    Bank Name:_____________________________________________________________
    Account Holder Name:_____________________________________________________
    Routing Number:__________________________________________________________
    Account Number:_________________________________________________________
    Account Type (Checking or Savings):__________________________________________

 

*An additional 3.15% convenience charge on Licensee Party’s invoice will apply when paying via credit card.

 

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Please include the billing contact for Licensee below:

 

Main Contact:

 

  Contact Name:  Zach Kurtz  
  Contact Email:  zach@agentiqsports.com  
  Contact Phone:  6109525547  

 

Alternate:

 

  Contact Name:  Alex Sosa  
  Contact Email:  alex@agentiqsports.com  
  Contact Phone:  (1408) 679-7510T  

 

  ADMINISTRATIVE USER (if any) will provide payment instructions in the section below.

 

ADMINISTRATIVED USER (if any) to select from the following options for payment of the Fees set forth in Schedule B and Schedule C:

 

  Credit Card*
     
    Name on Card:_______________________________________________________

  Credit Card Number:__________________________________________________ Expiration Date
  (Month/Year):_______________________________________________________ Billing Address:____
  Telephone Number:___________________________________________________  

 

  ACH Draw
       
    Bank Name:________________________________________________________ Account Holder
    Name:____________________________________________________________ Routing Number:____
    Account Number:____________________________________________________ Account Type
    (Checking or Savings):________________________________________________  

 

*An additional 3.15% convenience charge on Licensee Party’s invoice will apply when paying via credit card.

 

Please include the billing contact for Administrative

 

User below: Main Contact:

 

  Contact Name:______________________________________________________ Contact Email:______
  Contact Phone:______________________________________________________  
     
  Alternate:  
     
  Contact Name:______________________________________________________ Contact Email:______
  Contact Phone:______________________________________________________  

 

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SCHEDULE A

 

SOFTWARE AND SERVICES

 

The following Services will be provided under this Agreement (as marked below), subject to Licensee Party’s payment of the applicable fees and expenses listed in Schedule B:

 

Summary of Services (mark with “X” below; include number of subscriptions, as applicable)
     
1. TransactAPI
     
    One instance of TransactAPI to be used in a live production environment (PROD).
       
    One instance of TransactAPI to be used for pre-production testing purposes (STAGING).
       
    Installation and functional configuration of the two instances above, according to the software and services specifications for TransactAPI.
       
2. Opera IP (White Label Investor Portal) – Multi Offering
     
    All of the services in (1.) above.
       
    One instance of Opera IP technology to be used in a live production environment (PROD).
       
    Installation and functional configuration of the two instances above, according to the software and services specifications.
       
    Supports unlimited number of offerings.
       
3. Opera IP (White Label Investor Portal) – Single Offering
     
    All of the services in (1.) above.
       
    One instance of Opera IP technology to be used in a live production environment (PROD).
       
    Installation and functional configuration of the two instances above, according to the software and services specifications.
       
    Supports one offering.
       
4. Opera IQ (Investor Qualification)
     
    TransactAPI Client ID and access to the Client Admin Environment.
       
    One instance of Opera IQ technology to be used in a live production environment (PROD).
       
5. NCIT Affiliate Facilitation of Third Party Payment Processing Services
     
    As set forth in, and subject to the terms and conditions of, that certain Payment Processing Facilitation Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.
       
6. NCIT Affiliate Facilitation of Accredited Investor Verification Services
     
    As set forth in, and subject to the terms and conditions of, that certain Accredited Investor Verification Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.
       
7. NCIT Affiliate Facilitation of Identity Verification Services
     
    As set forth in, and subject to the terms and conditions of, that certain Identity Verification Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.
       
8. NCIT Affiliate Facilitation of Reporting Services
     
    As set forth in, and subject to the terms and conditions of, that certain Reporting Facilitation Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.

 

Each of the Services may be updated or modified from time to time, and tools and features may be added or removed, as determined in NCIT’s sole discretion.

 

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SCHEDULE B

 

FEES AND EXPENSES

 

The following fees and expenses shall apply to the Services to be provided by NCIT to Licensee, as applicable as set forth on Schedule A, which Licensee Party shall pay or cause to be paid to or deposited with NCIT as set forth below and in Section 8:

 

(1)TransactAPI Basic Licensing and Service Fee

 

A.Installation and set-up fee of $3,000, which includes basic installation of a client instance in the TAPI Admin Console, support and troubleshooting during the integration period, to be paid within three business days of the Effective Date.

 

B.Basic licensing and service fee of $750 (Tier 1), $1,000 (Tier 2) or $1,250 (Tier 3) per month (or part thereof) based on use, to be paid monthly in advance, beginning at the earlier of: (i) 90 days from the Effective Date; or (ii) upon installation or receipt of production credentials.

 

(2)Opera IP (White Label Investor Portal) – Multi Offering Basic Licensing and Service Fee

 

A.Installation and set-up fee of $2,500, which includes basic installation of a dedicated portal, configuration and support, and troubleshooting during the integration period, to be paid within three business days of the Effective Date.

 

B.Basic licensing and service fee of $1,500 per month (or part thereof), to be paid monthly in advance, beginning at the earlier of: (i) 30 days from the Effective Date; or (ii) deployment to production as specified by Licensee.

 

(3)Opera IP (White Label Investor Portal) – Single Offering Basic License and Service Fee

 

A.Installation and set-up fee of $500, which includes basic installation of a dedicated portal, configuration and support, and troubleshooting during the integration period, to be paid within three business days of the Effective Date.

 

B.Basic licensing and service fee of $500 per month (or part thereof), to be paid monthly in advance, beginning at the earlier of: (i) 30 days from the Effective Date; or (ii) deployment to production as specified by Licensee.

 

(4)Opera IQ (Investor Qualification) Basic License and Service Fee

 

A.Installation and set-up fee of $250, which includes basic set-up and configuration of one Opera IQ instance, support and troubleshooting during integration period, to be paid within three business days of the Effective Date and used within 90 days of the Effective Date.

 

B.Basic licensing and service fee of $250 per month, or part thereof, beginning at the earlier of: (i) 30 days from the date of installation; or (ii) the “go-live date” as specified by Licensee, to be paid at the beginning of each month.

 

(5)Payment Processing Facilitation Services Fees and Deposit (if applicable)

 

A.As set forth in that certain Payment Processing Facilitation Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.

 

(6)Accredited Investor Verification Services Fees and Retainer (if applicable)

 

A.As set forth in that certain Accredited Investor Verification Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.

 

(7)Identity Verification Services Fees and Retainer (if applicable)

 

A.As set forth in that certain Identity Verification Services Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.

 

(8)Reporting Services Facilitation Fees and Retainer (if applicable)

 

A.As set forth in that certain Reporting Services Facilitation Addendum to Software and Services License Agreement incorporated herein by reference and in effect from time to time pursuant to the terms thereof.

 

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* Integration period limited to 30 days post-installation; support and troubleshooting after the integration period subject to “T+M” rates set forth in Schedule C below.

 

** TransactAPI basic licensing and service fee includes usage limits of a maximum of 10,000 (Tier 1), 50,000 (Tier 2) or 100,000 (Tier 3) API calls per month and a fair use of concurrent connections limit of 100 connections. For Tier 1 and Tier 2, if API calls in a month exceed the maximum for such tier, Licensee Party shall pay the basic licensing and service fee for the next tier. Licensee Party shall pay NCIT $0.005 for each API call in excess of 100,000 API calls in any given month.

 

*** Licensee is solely responsible for any regulatory or other filings or registrations in connection with the license or use of NCIT’s technology products or services.

 

**** The fees payable under this Agreement, plus the other relevant fees attributable to any public offering, shall be capped at an aggregate amount not to exceed as permitted by applicable FINRA rules.

 

Any contractual agreements with third party vendors are not subject to the terms of this Agreement, unless otherwise provided for herein. References to third party fees, expenses, expense rates and cost estimates are for indicative purposes only. Such fees may include, but are not limited to, the following:

 

Design and branding

 

UX design

 

Independent project management

 

Custom development

 

System integration services

 

Testing services

 

System configuration, administration, support

 

Dedicated servers

 

Backups and storage

 

Disaster recovery

 

Bandwidth and load balancing

 

DNS management

 

Email marketing and support

 

Electronic document management systems (Docusign/Echosign)

 

Identity verification (KYC/OFAC/AML) and accreditation checks

 

Payment processing fees

 

SSL Certificates

 

ALL SALES ARE FINAL; NO REFUNDS OR EXCHANGES.

 

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SCHEDULE C

 

T+M FEES AND EXPENSES

 

This Schedule C is provided for information purposes only. Any and all project management and general technical support, including, without limitation, troubleshooting and debugging, will be charged on a time and material (T+M) basis.

 

The following hourly rates will apply, which NCIT reserves the right to update with 30 days’ prior written notice.

 

Role

Rate
Senior Consultant $250
Project Manager $150

 

Discount Rate
100 hour prepaid block 5%
250 hour prepaid block 10%

 

Materials and services provided under this Schedule C by parties other than NCIT or its affiliates will be billed at cost.

 

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EX1A-6 MAT CTRCT 11 ea029473701ex6-5.htm AMENDED AND RESTATED BRAND ADVISORY AGREEMENT, DATED AS OF JUNE 12, 2026, BY AND BETWEEN AGENTIQ SPORTS 1 SERIES RONNY CRUZ AND RONNY CRUZ

Exhibit 6.5

 

AMENDED AND RESTATED BRAND ADVISORY AGREEMENT

 

This Amended and Restated Brand Advisory Agreement (this “Agreement”) is made as of the latter date set forth on the signature page hereto (the “Restatement Date”), by and between Agentiq Sports 1 Series Ronny Cruz (the “Company”), a designated series of Agentiq Sports 1 Series LLC, a Delaware series limited liability company (the “Master LLC”), and Ronny Cruz (the “Client”). The Company and the Client are referred to herein individually as a “Party” and together as the “Parties.” This Agreement amends and restates in its entirety that certain Brand Advisory Agreement, dated as of May 12, 2026, by and between the Company and the Client (the “Original Agreement”).

 

WHEREAS, the Company and the Client entered into that certain Brand Advisory Agreement dated as of May 12, 2026 (the “Original Agreement”), pursuant to which the Company agreed to provide Advisory Services and the Initial Advisory Payment to the Client, and the Client agreed to pay the Brand Amount to the Company, all on the terms and subject to the conditions set forth therein;

 

WHEREAS, the Parties desire to amend and restate the Original Agreement in its entirety to reflect certain modifications to the terms thereof, and upon the effectiveness of this Agreement, the Original Agreement shall be superseded and replaced in its entirety by this Agreement;

 

WHEREAS, the Master LLC, acting through the Company and Agentiq Sports, Inc. (the “Manager”), is engaged in the business of providing strategic brand enhancement and promotional advisory services, together with upfront capital, to a single athlete or public personality, in each case in exchange for a contractual right to receive a fixed percentage of such person’s future on-field revenue;

 

WHEREAS, the Client is a professional baseball player engaged in the Principal Business (as defined below) who desires to enhance and develop his personal brand and commercial opportunities and to receive the upfront capital and Advisory Services (as defined below) offered by the Company;

 

WHEREAS, in consideration of the Client’s assignment to the Company of the contractual right to receive an amount equal to the Brand Percentage (as defined below) of the Client’s Brand Income (as defined below) during the Term, the Company has agreed to provide the Advisory Services to the Client and to pay to the Client cash payments aggregating $1,200,000 (the “Initial Advisory Payment”), in each case on the terms and subject to the conditions set forth herein;

 

WHEREAS, the Initial Advisory Payment shall be funded as follows: (i) $350,000 of the Initial Advisory Payment shall be paid by the Company to the Client within thirty (30) days following the Restatement Date, and (ii) the remaining balance shall be guaranteed by the Company and paid to the Client within five (5) months following the Restatement Date, which may be funded from the proceeds of an offering of membership interests in the Company conducted pursuant to Regulation A under the Securities Act of 1933, as amended (the “Series Offering”), as further described in Exhibit B (Offering Structure Summary), with payments to be made promptly following the initial closing of the Series Offering (the “Initial Closing”) and each additional closing thereof, in each case in accordance with Section 4.1 and subject to the Outside Date and the other terms and conditions set forth herein;

 

WHEREAS, the Company is a designated series of the Master LLC and operates as a separate legal entity, and Agentiq Sports, Inc. (the “Manager”), the sole manager of the Master LLC and of each series thereof (including the Company), has been duly authorized to act on behalf of the Company in entering into and administering this Agreement.

 

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1. Definitions. For purposes of this Agreement, the following capitalized terms have the meanings set forth below. Other terms may be defined contextually elsewhere in the Agreement.

 

Affiliate means, with respect to any specified person or entity, any other person or entity that directly or indirectly controls, is controlled by, or is under common control with such person or entity.

 

Account Control Agreement” means the springing participation account control agreement among the Client, the Company or Manager, and the Designated Bank, providing for springing control and otherwise having the terms set forth in Section 4.3(c), in form and substance reasonably acceptable to the Company and the Client.

 

Brand Amount” means an amount equal to the product of (a) all Brand Income earned by the Client (whether earned by the Client directly or through any third party on the Client’s behalf, such as a personal services company or agent) during the Term, multiplied by (b) the Brand Percentage.

 

Brand Income” means any and all gross monies, compensation, or other consideration of any kind earned by or payable to the Client (or the Client’s designee or agent for the Client’s benefit) after the Commencement Date solely as a result of the Client’s direct participation, performance, or employment as a professional athlete in the Principal Business, including but not limited to base salary, signing bonuses, performance bonuses, prize or award money, and any other earnings directly attributable to the Client’s on-field activities and services as a professional athlete. For the avoidance of doubt, Brand Income does not include any compensation, fees, royalties, or other consideration received by the Client for endorsements, sponsorships, appearances, licensing, merchandising, or any other off-field commercial activities, regardless of whether such activities are related to the Client’s persona or reputation as an athlete. In calculating Brand Income, such amounts shall be net of: (i) any reasonable, documented out-of-pocket legal fees incurred by the Client in securing, negotiating, or documenting any contract that generates such income (to the extent not reimbursed by a third party); (ii) any reasonable, documented travel, lodging, and per diem expenses incurred by the Client during the Term in connection with securing such income (to the extent not reimbursed by a third party); and (iii) any self-employment taxes owed by the Client in connection with such income; provided, however, that the aggregate amount deducted under this clause (iii) shall not exceed the amount of taxes that would be imposed on the Client under the Federal Insurance Contributions Act (26 U.S.C. §§ 3101–3128) if the Client were treated as an employee (rather than a self-employed individual) with respect to such income; but without deduction for any commissions or fees payable to agents or representatives, any voluntary or elective deferrals or contributions by the Client, or any taxes payable on the Client’s gross income. For the avoidance of doubt, Brand Income expressly excludes any and all amounts received by the Client for off-field activities, including but not limited to endorsements, sponsorships, personal appearances, speaking engagements, licensing of name/image/likeness, and any other commercial activities not directly related to the Client’s on-field performance as a professional athlete. If a single contract, payment or consideration includes both Brand Income and Excluded Income, the Parties will allocate such compensation in good faith and on a commercially reasonable basis; provided that, absent manifest error, the Company’s reasonable determination will control pending final resolution, subject to the audit and dispute procedures herein. Any permitted deductions from gross amounts in computing Brand Income must be reasonable, documented, and substantiated by contemporaneous records; deductions not substantiated in an audit shall be disallowed. Compensation paid by teams/leagues to Client in exchange for on-field services is presumed to be Brand Income unless clearly and expressly documented as off-field consideration unrelated to on-field services.

 

Brand Percentage” means 10%, the fixed percentage of the Client’s Brand Income that the Client agrees to pay to the Company as the Brand Amount; provided, that the Brand Percentage shall be subject to automatic adjustment following the Outside Date in accordance with Section 8.3(a), and from and after any such adjustment, all references in this Agreement to the “Brand Percentage” shall be deemed to refer to the Adjusted Brand Percentage (as defined in Section 8.3(a)).

 

Client Persona” means the Client’s name, likeness, image, voice, signature (including facsimile signature), biography, personal characteristics, and all other indicia of the Client’s identity or persona, including any live, recorded, or photographed performance or appearance by the Client.

 

Collection Failure” means any failure to establish, maintain, authorize, or give effect to the Participation Account, the direct deposit of one hundred percent (100%) of Brand Income into the Participation Account, the automatic bi-weekly transfer of the Brand Amount to the Company Account, or the Account Control Agreement, including any revocation, modification, redirection, termination, obstruction, suspension, or failure to renew any such direct deposit, automatic transfer, or Account Control Agreement, except to the extent caused solely by the Company’s breach of this Agreement.

 

2

 

 

Commencement Date” means the date on which the Company first pays any portion of the Initial Advisory Payment to the Client.

 

Company” means Agentiq Sports 1 Series Ronny Cruz, a designated series of Agentiq Sports 1 Series LLC, a Delaware series limited liability company.

 

Designated Bank” means the bank or other financial institution designated by the Company or Manager to hold the Participation Account.

 

Effective Date” means May 12, 2026, the effective date of the Original Agreement.

 

Excluded Income” means the following categories of income or payments, which are excluded from the definition of Brand Income:

 

(a) all proceeds paid to the Client (or the Client’s heirs, executors, administrators, successors or assigns) from any life, disability, or injury insurance policy, or from any insurance policy related to the Client’s status or eligibility to participate in the Principal Business, in each case to the extent such policy is purchased or in effect after the Commencement Date;

 

(b) all compensation or earnings attributable to services performed by the Client prior to the Commencement Date (including any deferred compensation or contingent payments earned from activities before the Commencement Date), regardless of when such amounts are actually paid; and

 

(c) any reimbursement or payment for reasonable, documented incidental expenses incurred by the Client (such as travel, lodging, or per diem expenses), or the fair market value or actual payment for any such expenses provided in kind or paid by a third party on the Client’s behalf; and

 

(d) all compensation, fees, royalties, or other consideration received by the Client for endorsements, sponsorships, personal appearances, speaking engagements, licensing of name, image, or likeness (“NIL”), merchandising, or any other off-field commercial activities, regardless of whether such activities are related to the Client’s persona or reputation as an athlete;

 

Initial Advisory Payment” shall have the meaning provided in Section 4.1.

 

Initial Closing” shall have the meaning provided in the recitals.

 

Manager” means Agentiq Sports, Inc., a Delaware corporation, which is the sole manager of the Master LLC and of each series thereof. The Manager is authorized to act on behalf of the Company as set forth in the Master LLC operating agreement, the Series Designation for the Company and herein.

 

Original Agreement” means that certain Brand Advisory Agreement, dated as of May 12, 2026, by and between the Company and the Client.

 

Participation Account” means the deposit account established by or for the Client at the Designated Bank for the receipt of Brand Income and subject to the Account Control Agreement.

 

Personal Account” means the bank account designated by the Client for receipt of amounts remaining after the Company has swept or caused to be transferred the applicable Brand Amount and any other amounts then due and payable to the Company under this Agreement.

 

Principal Business” means the Client’s primary professional occupation as a professional athlete in any of the following professional baseball leagues: (i) Major League Baseball and its affiliated minor league system, (ii) Nippon Professional Baseball in Japan, (iii) the Korea Baseball Organization, and (iv) the Mexican League (Liga Mexicana de Béisbol). For the avoidance of doubt, compensation earned by the Client from any league, tournament, or competition not listed above (including, without limitation, independent leagues, winter leagues, and exhibition play) shall not constitute Brand Income, specifically limited to the Client’s on-field/court participation, performance, and services as a player, including receipt of salary, bonuses, and prize money, and excluding any off-field commercial, promotional, or endorsement activities.

 

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Release Amount” means, with respect to any Brand Income deposited into the Participation Account, the amount remaining after deduction of the Brand Amount and any other amounts then due and payable to the Company under this Agreement.

 

Restatement Date” means the latter date set forth on the signature page hereto.

 

Term” means the period of duration of this Agreement, as defined in Section 8.1 below.

 

Series Designation” means the written designation establishing the applicable designated series of the Master LLC, incorporated into and made part of the Master LLC operating agreement, which sets forth the name of the series and its rights, powers, preferences, duties, and other terms, as amended from time to time.

 

Series Offering” shall have the meaning provided in the recitals.

 

Sweep Deadline” means three (3) business days after Brand Income is credited to the Participation Account, or such other period as the Parties may agree in writing.

 

Territory” means worldwide, to the extent applicable to the rights and obligations under this Agreement.

 

2. Advisory Services Provided by the Company

 

2.1. Commencement of Obligations. The Company’s obligations to commence the Advisory Services under this Section 2, the Client’s obligation to pay the Brand Amount under Sections 3 and 4.3, and all other rights and obligations of the Parties under this Agreement that are expressed to commence on, or that are conditioned upon, the Commencement Date shall become effective and commence automatically upon the Company’s payment to the Client of any portion of the Initial Advisory Payment pursuant to Section 4.1, in each case without the need for any further action, notice, or instrument by either Party.

 

2.2 Services Scope.  The Company (acting through the Manager and its affiliates, contractors, and agents) shall provide strategic brand enhancement and promotional advisory services to the Client (the “Advisory Services”). These services may include, without limitation:

 

(a) evaluation and development of the Client’s personal brand positioning;

 

(b) planning and execution of fan engagement initiatives;

 

(c) preparation and readiness consulting for sponsorships, endorsements, and other commercial opportunities related to the Client’s persona;

 

(d) development and execution of marketing campaigns and content to increase the Client’s public visibility and marketability; and

 

(e) ongoing advisory support regarding the Client’s branding and promotional activities.

 

For the avoidance of doubt, the Advisory Services provided under this Agreement expressly exclude any services that require certification or licensing as a player agent, contract advisor, or similar professional representative under applicable league, players’ association, or regulatory rules. The Company and its representatives will not negotiate, secure, or execute employment contracts, playing contracts, or other agreements on behalf of the Client that require such certification, nor will they represent the Client in employment-related negotiations with teams, leagues, or governing bodies. The Client remains solely responsible for engaging any certified agent or contract advisor as may be required for such matters.

 

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2.3. Brand Initiatives Funding. In connection with the Advisory Services, the Company shall fund brand-enhancement initiatives that may be agreed-upon by the Parties for the benefit of the Client. Such initiatives and the budget or amounts to be expended by the Company (if any) shall be determined by the Manager in consultation with the Client, consistent with the overall objectives of enhancing the Client’s brand and increasing the Client’s commercial opportunities. The Company shall administer any such funding and initiatives and may engage third-party service providers or partners to carry out specific campaigns or projects. All expenditures by the Company on brand initiatives are at the Company’s discretion (subject to any agreed plan or budget) and shall be part of the Company’s performance of the Advisory Services. Without limiting the foregoing, the Company shall commit advertising and media resources to promote and grow the Client’s personal brand and social-media presence, and the Company anticipates spending in excess of twenty-five thousand dollars ($25,000) on advertising and media that feature the Client and are designed to drive social awareness of the Client and his brand and to grow the Client’s social-media following.

 

2.4. No Guarantee. The Client acknowledges that, while the Advisory Services and funded initiatives are intended to enhance the Client’s brand and earnings potential, the Company has not made and does not make any guarantee or promise of any particular outcome or increase in the Client’s earnings or fame as a result of such services. The Client further acknowledges that the Client’s success in the Principal Business and related commercial endeavors depends on many factors beyond the Company’s control.

 

2.5. Planning Meetings. During the Term, the Client agrees to meet (which may be via teleconference or videoconference) with representatives of the Company or the Manager on a periodic basis, at least bi-annually (twice a year) to review recent developments and to plan upcoming brand strategy and initiatives. The Parties shall cooperate in good faith to schedule such meetings at mutually convenient times, and the Client shall use reasonable efforts to make himself available for such meetings as part of the collaboration under this Agreement.

 

2.5A. Autograph Obligation. During the Term, the Client agrees to provide to the Company three hundred (300) autographed items (which may include, without limitation, photographs, memorabilia, trading cards, jerseys, or other items designated by the Company) for use by the Company in connection with fan engagement initiatives, promotional campaigns, or the Series Offering. The Company shall provide the items to be signed and shall coordinate with the Client on a mutually convenient schedule for the execution of such autographs. The Client shall complete the autograph obligation within a reasonable period following the Company’s request, and the Company shall use commercially reasonable efforts to minimize disruption to the Client’s training and competition schedule.

 

2.5B. Annual Fan Meet-Up. During each calendar year of the Term (or partial calendar year, as applicable), the Client agrees to participate in one (1) in-person fan engagement event organized by the Company (each, a “Fan Meet-Up”). The Company shall be responsible for all logistics, venue arrangements, and costs associated with the Fan Meet-Up. The Company shall provide the Client with at least thirty (30) days’ prior written notice of the proposed date, time, and location of each Fan Meet-Up, and the Parties shall cooperate in good faith to schedule such event at a mutually convenient time and location that does not conflict with the Client’s training, competition, or other professional obligations. Each Fan Meet-Up shall not exceed four (4) hours in duration (excluding reasonable travel time). For the avoidance of doubt, the Client shall have no obligation to participate in more than one (1) Fan Meet-Up per calendar year under this Section.

 

2.6 Use of Third Parties. The Client agrees that the Company and the Manager may utilize affiliated or third-party service providers, consultants, and agents to perform some or all of the Advisory Services or brand initiatives and may share necessary information (including Confidential Information and elements of the Client Persona) with such parties for the sole purpose of fulfilling the Company’s obligations under this Agreement. The Company shall remain responsible for the performance of any Advisory Services that it delegates to third parties.

 

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2.7 Proportional Advisory Services. The Parties acknowledge that the scope and extent of the Advisory Services to be provided by the Company under this Agreement are commensurate with the full Initial Advisory Payment. In the event that, following the Initial Closing, the Company does not pay the full Initial Advisory Payment to the Client (whether because the Series Offering does not raise the full amount or for any other reason), the Company’s obligation to provide Advisory Services under Section 2.2 shall be reduced on a pro rata basis in proportion to the amount of the Initial Advisory Payment actually received by the Client (the “Funded Amount”) relative to the full Initial Advisory Payment. By way of illustration, if the Funded Amount equals fifty percent (50%) of the full Initial Advisory Payment, the Company shall be obligated to provide Advisory Services at a level of effort, resource commitment, and funding of brand-enhancement initiatives under Section 2.3 that is proportionate to fifty percent (50%) of the Advisory Services contemplated hereunder. The Manager shall determine, in its reasonable discretion and in consultation with the Client, the manner in which the scope of the Advisory Services shall be adjusted to reflect any such proportional reduction, including the frequency of planning meetings under Section 2.5, the budget for brand-enhancement initiatives under Section 2.3, and the breadth of services described in Section 2.2(a) through (e). For the avoidance of doubt, any such reduction in Advisory Services shall not relieve the Client of the Client’s obligation to pay the Brand Amount at the applicable Brand Percentage (or, if the Brand Percentage has been adjusted pursuant to Section 8.3(a), the Adjusted Brand Percentage) on all Brand Income earned during the Term.

 

3. Grant of Revenue Sharing Interest

 

3.1. Assignment of Brand Income Percentage. The Client hereby sells, assigns and grants to the Company, as of the Commencement Date and continuing through the Term, the contractual right to receive a portion of the Client’s future Brand Income equal to the Brand Percentage. In other words, the Client agrees to pay to the Company an amount equal to the Brand Amount from the Client’s Brand Income, as and when such Brand Income is earned or received, subject to the terms and conditions of this Agreement. The Advisory Services and the Initial Advisory Payment are provided as consideration for the right of the Company to receive the Brand Amount from the Client. The Client’s obligation to pay the Brand Amount to the Company, which does not constitute a loan or a debt, shall be absolute and unconditional, and shall exist regardless of whether the Client is employed, contracted, or self-employed in generating the Brand Income and regardless of through whom or how the Brand Income is paid.

 

3.2. No Ownership in Persona or Business. The Parties acknowledge and agree that the Company’s rights in the Brand Income are purely contractual. The Company does not acquire any ownership or equity interest in the Client’s persona, brand, publicity rights, or in any entity or enterprise owned or operated by the Client. Except for the share of future revenue explicitly granted hereunder and the related rights necessary to enforce or collect such revenue share, all other rights in the Client’s earnings and assets remain solely those of the Client.

 

3.3. Excluded Income. The Company has no right to and makes no claim on any Excluded Income of the Client. The Client shall have no obligation to share with the Company any income or amounts classified as Excluded Income, except that if a single contract or payment includes both Brand Income and Excluded Income components, the Brand Income portion (if reasonably ascertainable) will remain subject to the Brand Percentage. The Parties agree to cooperate in good faith to fairly allocate any mixed sources of compensation between Brand Income and Excluded Income, consistent with the definitions herein.

 

4. Payments and Collection of Brand Amount

 

4.1. Initial Advisory Payment to Client. As consideration for the rights granted to the Company by the Client hereunder, and subject to the terms and conditions set forth herein, the Company shall pay to the Client cash payments totaling $1,200,000 (such aggregate amount, the “Initial Advisory Payment”). The Initial Advisory Payment is not a loan and shall not be considered principal on a debt. All payments of the Initial Advisory Payment shall be made via wire transfer or other immediately available funds to an account designated by the Client. The Client acknowledges that the Initial Advisory Payment (whether paid in one or more installments), together with the funding of brand initiatives and provision of services, constitutes fair and adequate consideration for the rights and payment obligations assumed by the Client under this Agreement. The Company shall pay to the Client $350,000 of the Initial Advisory Payment within 30 days following the Restatement Date. The remaining unpaid balance of the Initial Advisory Payment shall be guaranteed by the Company and shall be payable to the Client within five (5) months following the Restatement Date. The Company may fund such remaining balance from the proceeds of the Series Offering; provided, however, that to the extent the Series Offering does not generate sufficient proceeds to pay the remaining balance in full within such five-month period, the Company shall be obligated to pay any shortfall from its own funds. Unless otherwise agreed by the Parties in writing, the full remaining balance of the Initial Advisory Payment must be paid no later than the date that is five (5) months following the Restatement Date (the “Outside Date”). The Company’s obligation to pay the remaining balance of the Initial Advisory Payment in full by the Outside Date is unconditional and shall not be subject to the occurrence of the Initial Closing or any closing of the Series Offering. If, as of the Outside Date, the Company has not paid the full Initial Advisory Payment to the Client, the Brand Percentage shall be automatically adjusted as of the Outside Date in accordance with Section 8.3(a), without any further action, notice, election, or instrument by either Party. All other obligations of the Parties under this Agreement, including the Company’s obligation to provide Advisory Services (as adjusted pursuant to Section 2.7) and the Client’s obligation to pay the Brand Amount (at the Adjusted Brand Percentage, if applicable), shall commence on the Commencement Date and shall not otherwise be affected by whether the Initial Advisory Payment has been paid in full. For the avoidance of doubt, following payment in full of the Initial Advisory Payment, the Company shall have no obligation to pay any proceeds from the Offering to the Client.

 

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4.2. Taxes on Initial Advisory Payment. The Client shall be solely responsible for the payment of all taxes that may be due in relation to his receipt of the Initial Advisory Payment. The Company shall not be required to indemnify or “gross up” the Client for the amount of any such taxes. The Client shall indemnify the Company for and hold it harmless from and against any taxes of the Client, which may be sought against, imposed upon or suffered by the Company or which the Company may incur as a result of the Company’s failure to deduct and withhold such taxes from the Initial Advisory Payment

 

4.3 Collection of Brand Amount. During the Term, the Brand Amount shall be collected from the Client’s Brand Income through (i) the deposit of one hundred percent (100%) of the Client’s Brand Income directly into the Participation Account established at the Designated Bank and subject to the Account Control Agreement on a springing-control basis as set forth in Section 4.3(c), and (ii) an automatic recurring transfer, established and maintained by the Client, of the Brand Amount from the Participation Account to an account designated by the Company in the name of Agentiq Sports 1 Series Ronny Cruz (the “Company Account”) on a bi-weekly basis as set forth in Section 4.3(e), in each case with the direct remittance obligations set forth in Section 4.3(g) serving as the fallback mechanism. The timing and procedures for such collections are as follows:

 

(a) Primary Collection Mechanism. As the primary method for collecting Brand Amounts, the Client shall: (i) open and maintain the Participation Account at a bank or financial institution that is willing to execute the Account Control Agreement and is otherwise reasonably acceptable to the Company; (ii) execute and deliver the Account Control Agreement providing for springing control as described in Section 4.3(c); (iii) designate and direct one hundred percent (100%) of the Client’s Brand Income to be deposited directly into the Participation Account, including by establishing direct deposit with, and delivering payment directions to, each team, league, employer, and other current and future payor of Brand Income, and shall promptly provide the Company with documentary proof thereof; and (iv) establish and maintain the automatic bi-weekly transfer of the Brand Amount from the Participation Account to the Company Account as described in Section 4.3(e), and shall promptly provide the Company with documentary proof of the establishment and maintenance of such transfer. The Client shall take all further actions reasonably requested by the Company or the Manager to establish, perfect, maintain, and give effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer, and the Account Control Agreement.

 

(b) Direct Deposit of Brand Income. All Brand Income shall be paid directly into the Participation Account. The Client shall not direct, request, permit, or cause any payor to deposit Brand Income into any other account or to pay Brand Income to the Client directly, except as expressly permitted under Section 4.3(g) or Section 4.3(j).

 

(c) Account Control Agreement; Springing Control; Company Sweep and Release of Balance. The Account Control Agreement shall be a three-party agreement among the Company (acting through the Manager), the Client, and the Designated Bank, and shall provide that: (1) the Designated Bank acknowledges the Company’s security interest in the Participation Account from and after the execution of the Account Control Agreement; (2) the Client shall retain ordinary control over the Participation Account, including the right to operate the account and to direct the disposition of funds therein, unless and until a Control Trigger Event occurs; (3) upon the occurrence and during the continuance of a Control Trigger Event, the Company or the Manager may deliver a notice of exclusive control to the Designated Bank, after which the Designated Bank shall comply solely with the instructions of the Company or the Manager and shall not comply with any instructions of the Client concerning the Participation Account; and (4) the Designated Bank subordinates, and agrees not to exercise, any right of setoff, recoupment, or banker’s lien against the Participation Account, except with respect to returned items, chargebacks, and the Designated Bank’s customary account fees and charges. A “Control Trigger Event” means a payment default by the Client under this Agreement that remains uncured beyond the thirty (30) day cure period set forth in Section 4.5. While a notice of exclusive control is in effect, Within the Sweep Deadline after any Brand Income is credited to the Participation Account, the Company or the Manager may instruct the Designated Bank to transfer to the Company Account an amount equal to the Brand Amount applicable to such Brand Income, plus any accrued and unpaid amounts then due and payable by the Client to the Company under this Agreement, and, Promptly following such transfer, shall instruct the Designated Bank to transfer the Release Amount to the Client’s Personal Account. Once the applicable payment default has been cured, control of the Participation Account shall spring back to the Client and the Company or the Manager shall promptly rescind any notice of exclusive control.

 

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(d) Ministerial Control Over Client Funds. The Company’s control over the Participation Account is solely for collection, verification, sweep, release, and enforcement purposes. The Company has no ownership interest in the Release Amount, and shall cause the Release Amount to be released to the Client’s Personal Account within the period required by Section 4.3(c), subject to returned items, bank holds, payor reversals, bona fide disputes, applicable law, and the terms of the Account Control Agreement.

 

(e) Automatic Bi-Weekly Transfer of Brand Amount. The Client shall establish and maintain an automatic transfer, on a bi-weekly basis, of the Brand Amount (i.e., the Brand Percentage of all Brand Income deposited into the Participation Account) from the Participation Account to the Company Account. The Client shall configure such transfer in an amount and with a frequency sufficient to remit the full Brand Amount as and when Brand Income is received, shall not cancel, revoke, reduce, suspend, or modify such transfer without the Company’s prior written consent, and shall provide the Company with reasonable evidence of the establishment and maintenance of such transfer upon request. The Client’s retention of the balance of Brand Income remaining in the Participation Account after each such transfer shall not affect the Company’s security interest in, or right to receive, the Brand Amount.

 

(f) No Revocation or Modification. The Client shall not revoke, amend, supersede, replace, terminate, or otherwise interfere with the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer described in Section 4.3(e), the Participation Account, or the Account Control Agreement without the Company’s prior written consent, except to the extent required by applicable law, league rules, collective bargaining agreement requirements, or payor policy. Any change required by such law, rule, or policy shall be implemented in a manner that preserves the Company’s economic and collection rights to the maximum extent practicable.

 

(g) Fallback Direct Remittance by Client. If, for any reason, any Brand Income is not deposited into the Participation Account, or any Brand Amount is not transferred to the Company Account (including by reason of a Collection Failure, the absence of an effective Account Control Agreement, the failure of any payor to deposit Brand Income into the Participation Account, the failure or cancellation of the automatic bi-weekly transfer, or any direction by the Client in contravention of this Section 4.3), the Client shall receive such Brand Income as agent of the Company and shall hold the Brand Amount portion thereof in trust for the Company. In such event, the Client shall, acting as the Company’s agent solely for purposes of receiving and remitting such funds, remit such Brand Amount to the Company by wire transfer in immediately available funds no later than fifteen (15) days after the Client (or any person on the Client’s behalf) receives the corresponding Brand Income payment. This Section 4.3(g) shall apply automatically without any requirement that the Company prove the Client caused or contributed to the failure of direct deposit or transfer, and shall be in addition to (and not in lieu of) the Client’s obligations under Sections 4.3(a) through (f) and the Company’s remedies under this Agreement.

 

(h) Reconciliation and Overpayments. The Company shall reconcile sweeps from the Participation Account against actual Brand Income on a periodic basis. If the Company sweeps more than the Brand Amount properly payable with respect to any Brand Income, the Company shall return or credit the excess to the Client’s Personal Account within ten (10) business days after discovery or final determination of the overage. If the Company sweeps less than the Brand Amount properly payable with respect to any Brand Income (including by reason of a Collection Failure or amounts that bypassed the Participation Account), the Client shall pay the deficiency to the Company in accordance with the procedure set forth in Section 4.3(g).

 

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(i) Bank Fees, Returned Items, and Reversals. As between the Client and the Company, the Client shall be responsible for all account opening and maintenance fees, returned items, chargebacks, bank holds, reversals, insufficient funds charges, and similar items relating to the Participation Account or to Brand Income deposits, except that the Company shall be responsible for fees and charges attributable solely to its own administrative instructions to the Designated Bank unless otherwise agreed in writing. Allocation of such items as between the Client, the Company or Manager, and the Designated Bank shall be governed by the Account Control Agreement.

 

(j) Compliance Savings Clause. The collection mechanism set forth in this Section 4.3 shall apply only to the extent permitted by applicable law, league rules, collective bargaining agreement requirements, payroll rules, and payor policies. If any component of the mechanism is not permitted with respect to any payor or payment, the Parties shall cooperate in good faith to implement the closest lawful alternative that preserves the Company’s right to receive the Brand Amount, and the fallback remittance obligation under Section 4.3(g) shall continue to apply with respect to any Brand Income not captured by the Participation Account until such alternative is implemented.

 

(k) No Set-off; Taxes. All amounts payable by the Client to the Company hereunder shall be paid in full without set-off, deduction, or counterclaim, except as may be otherwise expressly provided in this Agreement. The Client shall be responsible for any taxes applicable to the Client’s receipt of Brand Income (as between the Client and the Company), and the Client’s payments of the Brand Amount shall be made without deduction for taxes, except to the extent that any withholding may be required by law. If the Client is required by law to withhold any portion of a Brand Amount payment as tax and remit such withholding to a taxing authority, the Client shall promptly notify the Company, provide evidence of such withholding and remittance, and cooperate with the Company to ensure the Company receives credit for such tax payment. Any amounts withheld and paid to the government on the Company’s behalf shall be treated as paid to the Company for purposes of the Client’s obligations. The Company (or Manager) will be responsible for its own income taxes on amounts it receives. The Company agrees to indemnify and hold the Client harmless from any taxes imposed on the Company (as a separate taxpayer) that are sought from the Client solely because the Client failed to withhold such taxes from payments to the Company, provided the Client has complied with its obligations under this Section.

 

4.4. Blocked Payments. In the event that the Client, the Company, the Manager, the Designated Bank, or any payor is prohibited by any law, regulation (including currency control regulations), league rule, or other legal or regulatory restriction from establishing, maintaining, or giving effect to the Participation Account, the direct deposit of Brand Income into the Participation Account, the automatic bi-weekly transfer described in Section 4.3(e), the Account Control Agreement, the fallback remittance obligation under Section 4.3(g), or any other component of the collection mechanism, the affected Party shall immediately notify the other Party. At the Company’s option, the Client shall either: (a) deposit the affected amounts in an interest-bearing account in the name of the Company (or for the benefit of the Company) in a jurisdiction where such deposit is permitted, or (b) cooperate with the Company to promptly find an alternative lawful method to transfer or credit the funds to the Company that preserves the Company’s economic and collection rights to the maximum extent practicable. The Client’s obligation to ultimately pay such amount to the Company shall not be extinguished by the blocking law or restriction, and any such payment shall be made as soon as legally allowed, and any costs of compliance or financial loss due to delay may be allocated as appropriate between the Parties in good faith or pursuant to applicable law.

 

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4.5. Late Payments; Interest; Late Fees. Time is of the essence in the collection and remittance of Brand Amounts. As used herein, a “payment default” means any failure to deposit Brand Income into the Participation Account, to transfer the Brand Amount to the Company Account, to release the Brand Amount to the Company, or to remit the Brand Amount under Section 4.3(g), in each case when required under this Agreement. The Client shall have a cure period of thirty (30) days after the date the applicable Brand Amount became due to cure any payment default. If a payment default is not cured, the following late fees shall apply, in each case based on the number of days the applicable Brand Amount remains unpaid after its due date, as liquidated damages and not as a penalty: (i) for amounts unpaid for twenty (20) days or fewer, no late fee shall apply (grace period); (ii) for amounts that remain unpaid for more than twenty (20) days but not more than thirty (30) days, a late fee equal to the greater of $5,000 or five percent (5%) of the unpaid Brand Amount; (iii) for amounts that remain unpaid for more than thirty (30) days but not more than sixty (60) days, a late fee equal to the greater of $15,000 or ten percent (10%) of the unpaid Brand Amount; and (iv) for amounts that remain unpaid for more than sixty (60) days, a late fee equal to the greater of $25,000 or fifteen percent (15%) of the unpaid Brand Amount, plus, at the Company’s election, acceleration of all Brand Amount obligations payable in respect of Brand Income reasonably anticipated to be earned by the Client through the end of the then-current calendar year, which accelerated amount shall become immediately due and payable. In addition to the foregoing late fees, the unpaid amount shall accrue interest in favor of the Company from the date due until the date paid at the lesser of: (a) the Prime Rate plus 3% per annum, compounded monthly (where “Prime Rate” means the prime lending rate as published in the Wall Street Journal on the first business day of the applicable month), or (b) the maximum rate permitted by applicable law. Interest on late payments shall be due and payable upon demand. Any late fees and accrued interest payable under this Section 4.5 shall, when owed, constitute amounts due and payable by the Client to the Company under this Agreement, and the Company (or the Manager on its behalf) may deduct and collect such amounts directly from the Participation Account, including by instructing the Designated Bank to transfer such amounts to the Company Account, in the same manner as, and together with, the Brand Amount under Section 4.3(c). The Parties acknowledge that the late fees set forth in this Section 4.5 are a reasonable estimate of the damages the Company would incur (including administrative, monitoring, investor reporting, and enforcement burdens), which would be difficult or impracticable to calculate at the time of contracting. The accrual or payment of interest or late fees under this section shall not limit any other rights or remedies of the Company due to the Client’s failure to pay amounts when due.

 

4.6. Disclosure of Material Breach. The Client acknowledges that the Company may have investors or stakeholders entitled to information about the Company’s assets and agreements. Accordingly, the Client agrees that in the event the Client materially breaches this Agreement, including by reason of any failure to pay any Brand Amount when due, any material Collection Failure, any revocation, modification, or repudiation of the direct deposit of Brand Income or the automatic bi-weekly transfer, or any failure to execute or maintain the Account Control Agreement, in each case that is not cured within any applicable cure period, the Company (or the Manager on the Company’s behalf) shall have the right to disclose the existence of such breach (including the Client’s name and the nature of the default), but only to the extent legally required, in any required filings, reports, or investor communications. The Company shall not make any voluntary public statement regarding such breach beyond what is necessary to comply with applicable law and the Company’s investor-reporting obligations. the Company must give the Client at least fifteen (15) days’ prior written notice of its intent to make such a disclosure (unless a shorter period is required to comply with law or regulation) and an opportunity within that time to cure the default, and any such disclosure shall be reviewed by the Company’s securities counsel prior to publication. If the Client cures the default within the notice period, the Company shall refrain from publicly disclosing the default. Nothing in this section shall prevent the Company from pursuing any other legal or equitable remedies for breach.

 

4.7 Payments Upon Dissolution or Non-Existence of the Company. In the event that the Company (the designated series of the Master LLC that is a party to this Agreement) is dissolved, ceases to exist, or is otherwise unable to receive payments under this Agreement for any reason, the Client’s obligation to pay the Brand Amount and any other amounts due hereunder shall continue in full force and effect. In such event, all such payments shall be made directly to the Manager, on the Company’s members’ behalf in accordance with the procedures specified in Section 8.8(b) or to such other person or entity as the Manager may designate in writing, and the Manager or its designee shall be entitled (i) to enforce all rights and remedies of the Company under this Agreement, (ii) to receive sweeps from the Participation Account in lieu of the Company, and (iii) to issue instructions to the Designated Bank under the Account Control Agreement and to deliver replacement payment directions to payors, in each case as control party or successor servicer. The Client shall be provided with written notice of any such change in payment instructions and shall comply with such instructions promptly upon receipt and shall reasonably cooperate with the Manager or its designee, the Designated Bank, and any payor to give effect to the foregoing.

 

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4.8 Security. To secure the prompt and complete payment and performance of all obligations of the Client under this Agreement, the Client hereby grants to the Company a continuing security interest in and to all of the Client’s right, title, and interest in and to all of the following, in each case whether now existing or hereafter arising: (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income; (b) the Participation Account and any successor accounts, and all funds and other property at any time credited to or held therein; (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement; and (d) all proceeds of any of the foregoing (collectively, the “Collateral”). The security interest granted hereby shall attach immediately upon the Company’s payment to the Client of any portion of the Initial Advisory Payment (including the initial installment under Section 4.1), without regard to whether the full Initial Advisory Payment has been paid, and shall continue in full force and effect until all obligations of the Client under this Agreement have been satisfied in full. For the avoidance of doubt, partial payment of the Initial Advisory Payment shall be sufficient to cause the security interest to attach, and the security interest shall secure all present and future obligations of the Client hereunder, including those arising from subsequent payments of the Initial Advisory Payment. The Client hereby authorizes the Company to file one or more UCC-1 financing statements, and any amendments or continuations, in any jurisdiction deemed necessary by the Company, describing the collateral as “all of the Client’s right, title, and interest in and to all (a) the Brand Amount and the Client’s contractual right to receive the Brand Percentage portion of Brand Income; (b) the Participation Account and any successor accounts, and all funds and other property at any time credited to or held therein; (c) all rights of the Client under, in connection with, or arising out of the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement; and (d) all proceeds of any of the foregoing, in each case as defined in the Brand Advisory Agreement between the Client and the Company, dated as of the Effective Date thereof.” The Client further agrees to execute and deliver the Account Control Agreement and such other control agreements, account control acknowledgments, financing statements, perfection certificates, and other documents, and to take such further actions, as the Company may reasonably request to perfect, maintain, and enforce the Company’s security interest in the Collateral. If, as of the Outside Date, less than the full Initial Advisory Payment has been paid to the Client and the Brand Percentage is adjusted to the Adjusted Brand Percentage pursuant to Section 8.3(a), the Company shall, promptly following the Outside Date, file an amendment to each UCC-1 financing statement then on file to reflect the resulting proportionate reduction in the Brand Amount, and shall provide the Client with evidence of such filing upon request. Furthermore, in the event of a final, non-appealable judgment in favor of the Company for unpaid Brand Amounts or other amounts due under this Agreement, the Client agrees to cooperate with the Company in any lawful process to collect such judgment, including but not limited to providing information regarding the Client’s employers, payors, and income sources, and not contesting any lawful wage garnishment or similar collection proceedings initiated by the Company in accordance with applicable law. In the event of a payment default by the Client under this Agreement that remains uncured after any applicable notice and cure period, the Company (or the Manager on its behalf) shall have the right to notify any third-party payor of Brand Income (including, without limitation, any team, league, employer, or other entity obligated to pay Brand Income to or for the benefit of the Client) of the Company’s security interest in the Brand Income and to enforce the Account Control Agreement and the payment directions in accordance with their respective terms. If the Company obtains a court order, garnishment order, or similar legal process with respect to the Brand Income, the Company may provide such order to the applicable payor, and the payor shall be authorized and directed to comply with such order, including by remitting directly to the Company any amounts specified therein. The Client shall not take any action to interfere with or prevent any payor’s compliance with such notice or order and shall cooperate in good faith with the Company to facilitate the enforcement of the Company’s rights. In furtherance of the Company’s rights under this agreement and this Section 4.8, the Client hereby irrevocably constitutes and appoints the Manager, acting on behalf of the Company, with full power of substitution and resubstitution, as the Client’s true and lawful proxy and attorney-in-fact, with full power and authority in the Client’s name, place, and stead, and in the name of the Company or otherwise, to take any and all actions and to make, execute, acknowledge, swear to, deliver, file, record, and publish any and all agreements, instruments, certificates, financing statements (including UCC-1 financing statements and any amendments, continuations, terminations, or assignments thereof), control agreements (including the Account Control Agreement), payment directions, notifications to payors, consents, amendments, releases, endorsements, assignments, instructions to the Designated Bank, instructions to any other depository institution, and other writings, as the Manager may determine to be necessary or appropriate to establish, maintain, perfect, continue, protect, preserve, evidence, or enforce the Company’s security interest in, lien on, or other rights with respect to the Collateral, including the Participation Account and all funds and other property credited thereto, all rights under the direct deposit of Brand Income, the automatic bi-weekly transfer, and the Account Control Agreement, all Brand Income, and all proceeds of any of the foregoing. Without limiting the generality of the foregoing, the Manager is authorized to (a) endorse the Client’s name on any check, draft, instrument, or other item of payment representing Brand Income or proceeds of Collateral; (b) deliver, replace, renew, or modify payment directions to any payor in accordance with Section 4.3; (c) issue instructions to the Designated Bank under the Account Control Agreement; (d) execute and file any document required to perfect or continue the Company’s security interest in the Collateral in any jurisdiction; and (e) take any other action contemplated by Sections 4.3 or 4.8 of this Agreement. Notwithstanding anything to the contrary in this Section 4.8, the foregoing proxy and power of attorney is limited to, and the Manager shall exercise it solely for, the following purposes: (i) filing, maintaining, amending, and continuing UCC financing statements with respect to the Collateral; (ii) executing and delivering the initial Account Control Agreement and payment directions; and (iii) taking ministerial collection actions, but, with respect to clause (iii), only following a payment default that has been adjudicated by a court or determined in arbitration and that remains uncured after any applicable notice and cure period. The Manager shall exercise the proxy and power of attorney only in good faith and for cause. The Client hereby ratifies and confirms, and agrees to ratify and confirm, all actions taken by the Manager in accordance with this proxy and power of attorney. This proxy and power of attorney is coupled with an interest, is granted to secure the performance of the Client’s obligations under this Agreement and to protect the Company’s security interest in the Collateral, and is irrevocable, and shall not be terminated or otherwise affected by the death, disability, incapacity, dissolution, insolvency, or bankruptcy of the Client, by any subsequent revocation or attempted revocation by the Client, or by the expiration or termination of this Agreement, and shall continue in full force and effect until all obligations of the Client under this Agreement have been fully and indefeasibly satisfied. If the Manager is replaced as the manager of the Company or the Master LLC, the successor manager shall automatically be substituted as the proxy and attorney-in-fact under this paragraph. Nothing in this paragraph shall obligate the Manager to take any action, and the Manager shall have no liability to the Client for any action taken or not taken in good faith under this proxy and power of attorney, except for its own gross negligence or willful misconduct.

 

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Notwithstanding anything to the contrary in this Section 4.8, the security interest granted hereunder, and the Collateral, shall not extend to, attach to, or otherwise encumber any Excluded Income, any funds held in or credited to the Personal Account, or any other assets, property, income, or rights of the Client that do not constitute the Brand Amount, the Client’s contractual right to receive the Brand Percentage portion of Brand Income, the Participation Account, the rights described in clause (c) above, or the proceeds of any of the foregoing.

 

The Company shall not exercise any rights or remedies with respect to the security interest granted hereunder—other than taking such actions as are necessary to create, perfect, continue, or maintain the perfection of such security interest—unless and until a payment default has occurred and remains uncured beyond the thirty (30) day cure period set forth in Section 4.5. This limitation mirrors, and is consistent with, the springing-control arrangement applicable to the Participation Account under Section 4.3(c).

 

For the avoidance of doubt, any UCC-1 financing statement (and any amendment or continuation thereof) filed by the Company in connection with this Agreement shall describe the Collateral solely by reference to the specific categories set forth in this Section 4.8, and shall not describe the Collateral as “all assets,” “all personal property,” or using any similarly broad or generic description.

 

The Parties further acknowledge and confirm, as set forth above in this Section 4.8 and in Section 8.3(a), that if the Brand Percentage is adjusted downward to the Adjusted Brand Percentage following the Outside Date, the Company shall promptly file an amendment to each UCC-1 financing statement then on file to reflect the resulting proportionate reduction in the Brand Amount and the Collateral, demonstrating that the security interest is self-limiting and contracts in proportion to the portion of the Initial Advisory Payment actually funded.

 

5. Reporting and Audit Rights

 

5.1. Books and Records. The Client (and, to the extent applicable, the Client’s Affiliates involved in the receipt of Brand Income) shall maintain complete and accurate books and records of all Brand Income Contracts, Brand Income earned or received, and calculations of Brand Amounts payable to the Company, in accordance with generally accepted accounting principles or other recognized basis reasonably acceptable to the Company. Such records shall include, without limitation, copies of contracts evidencing Brand Income, pay stubs, earning statements, invoices, bank statements showing receipt of Brand Income, and records of any expenses or deductions claimed under the definition of Brand Income. The Client shall retain all such records at least throughout the Term and for a period of 12 months following the termination or expiration of this Agreement (or such longer period as may be required by law). This recordkeeping obligation does not apply to periods before the Commencement Date. In addition to the foregoing, the Client shall provide to the Company (or authorize the Company or Manager to obtain directly from the applicable payor or Designated Bank) Participation Account statements, deposit confirmations, payor confirmations of receipt and implementation of the direct deposit of Brand Income, and payroll direct deposit records evidencing the routing of Brand Income into the Participation Account. The Company’s audit rights set forth in Section 5.3 shall extend to any Brand Income that bypasses the Participation Account, regardless of the reason therefor.

 

5.2. Periodic Reporting. Prior to the execution of this Agreement by the Parties, the Client shall provide to the Manager a copy of his contract pursuant to which the Brand Income is earned. Within 10 business days after the June 30th and December 31st during the Term, the Client shall deliver to the Manager a written report (each, a “Semi-Annual Report”) in a format reasonably specified or agreed to by the Company, which shall include: (a) the total Brand Income earned or received by the Client during that six month period (itemized by source or contract, and by payment date and amount); (b) the calculation of the Brand Amount owed to the Company for that six month period (including any deductions permitted under the Brand Income definition, with reasonable detail); (c) year-to-date summaries of Brand Income and Brand Amount; and (d) any other information reasonably requested by the Company and related to the Client’s performance of this Agreement or the Client’s activities in the Principal Business that may affect current or future Brand Income. Together with each Semi-Annual Report, the Client shall provide copies of any documentation evidencing the Brand Income reported, such as copies of pay stubs, remittance advices, royalty statements, or similar documents for that six-month period.

 

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5.3. Audit Rights. The Company (or the Manager or any designee acting on the Company’s behalf) shall have the right, during the Term and for 12 months after the Term (the “Audit Period”), to examine, audit, and copy the relevant books, records, and accounts of the Client and the Client’s Affiliates to verify the accuracy of any Semi-Annual Reports and the payments of the Brand Amount. Any such audit shall be limited to the books, records, and accounts directly related to Brand Income; provided, however, that the Company shall retain the right to audit Brand Income from all sources, including any Brand Income that bypasses or is not deposited into the Participation Account or any other designated payment mechanism. The Company may not audit the same period more than twice, and any audit shall not cover periods earlier than the then-current and two (2) immediately preceding calendar years at the time of audit (except that audits during the Audit Period after termination may cover the entire Term). Any such audit shall be conducted at the Company’s expense, provided that if an audit reveals an underpayment of more than five percent (5%) of the Brand Amount due for the period examined, the Client shall reimburse the Company for the reasonable, documented costs of the audit. If an audit or review reveals that the Client has underpaid the Brand Amount, the Client shall promptly (and in any event within 10 days of notice) pay to the Company the amount of the underpayment plus any applicable interest as set forth in Section 4.5. If an audit reveals the Client overpaid the Brand Amount, the Company shall promptly refund the overpaid amount to the Client (or, at the Client’s election, the Client may credit such overpayment against the next installment(s) of Brand Amount coming due, if any).

 

5.4. Audit Procedure. The Company shall provide the Client with at least fourteen (14) days’ advance written notice of its intention to conduct an audit under this Agreement and will reasonably accommodate the Client’s schedule and operations in terms of timing and scope. Any audit shall be conducted by a nationally recognized independent accounting firm or another firm reasonably acceptable to the Client, during normal business hours at the location(s) where the relevant records are maintained, and in such a manner as not to unreasonably interfere with the Client’s business. The Client may require the auditor to sign a reasonable non-disclosure agreement if the auditor is not already under a duty of confidentiality to the Company or Manager. The Parties shall direct any third-party payors (such as teams or leagues) to cooperate with requests to provide confirmation of payments made to the Client as needed for the audit.

 

5.5. Confidentiality of Audit Findings. All information reviewed or obtained by the Company or its auditors during any audit shall be deemed Confidential Information of the Client, and the Company shall not use or disclose such information for any purpose other than verification of compliance with this Agreement and enforcement of the Company’s rights. The Parties shall, however, be entitled to use the results of any audit in any dispute resolution or legal proceedings concerning this Agreement, subject to appropriate protective orders or confidentiality arrangements.

 

6. Restrictions and Negative Covenants

 

6.1. Exclusive Relationship; No Similar Agreements. The Client represents and warrants that, as of the Effective Date, the Client has not entered into any contract or arrangement (other than this Agreement) under which the Client has sold, assigned, or otherwise transferred to any third party any right to receive payments or income based on the Client’s future earnings or revenue from the Principal Business. During the Term, the Client shall not, without the prior written consent of the Company, enter into any agreement or transaction with any other party that is similar in nature to this Agreement. Specifically, the Client shall not agree to pay or assign to any third party any portion of the Client’s future Brand Income (or any income substantially similar to Brand Income) in exchange for upfront or ongoing payments or services. This restriction does not prohibit the Client from engaging professional agents, managers, or advisors in the ordinary course of the Client’s career, even if such representatives are paid a percentage of the Client’s income as commission or fees. However, any such arrangement must not conflict with the Client’s obligations to pay the Brand Amount to the Company or diminish the Company’s rights with respect to any installment of the Brand Amount. Notwithstanding the foregoing, if the Client receives a bona fide offer from any third party to enter into a transaction that would require consent under this Section 6.1 (a “Third-Party Offer”), the Client shall first deliver to the Company written notice of the material terms thereof, including the identity of the counterparty and all material economic terms (a “ROFR Notice”). The Company shall have fifteen (15) business days following receipt of the ROFR Notice to elect to enter into a transaction with the Client on the same or more favorable terms. If the Company does not timely elect to match, or if the Parties fail to execute a definitive agreement within thirty (30) days of the Company’s election, the Client may consummate the transaction with the third party on terms no more favorable to the third party than those in the ROFR Notice, provided such transaction closes within ninety (90) days, after which the Client must re-comply with this process. For the avoidance of doubt, this Section 6.1 and the right of first refusal hereunder apply only to a sale, assignment, pledge, or similar monetization of Brand Income or of future on-field income substantially similar to Brand Income, and shall not apply to any ordinary-course agent, management, endorsement, sponsorship, name, image, or likeness, or other off-field commercial arrangement entered into by the Client.

 

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6.2. No Circumvention. The Client shall not take any action for the purpose of defeating, reducing, or delaying the Company’s right to receive the Brand Amount. Without limiting the generality of the foregoing, the Client shall not intentionally defer or decline any Brand Income, or divert any revenue that would otherwise constitute Brand Income into forms or channels that would constitute Excluded Income or would be paid to a third party (except for legitimate payments to Affiliates or agents as permitted herein), with the primary intent of preventing the Company from receiving the Brand Amount in full. The Client also shall not form or use any corporation, partnership, trust, or other entity or contractual arrangement to hide or shield Brand Income from the Company. Any entity through which the Client earns Brand Income (e.g., if the Client forms a personal services company to receive income) shall be deemed an Affiliate of the Client and the Client shall cause such entity to comply with the Client’s obligations under this Agreement, including payment of Brand Amount and cooperation with audits.

 

6.3. Limits on Publicity and Fundraising. The Client shall not use the Company’s or the Manager’s name or trademarks, or refer to this Agreement, in any press release or public statement except as permitted under Section 11.4 or with the Company’s prior written consent. Further, the Client agrees not to promote, market, or solicit investments in any securities of the Company, Agentiq Sports 1 Series LLC, or any other Company thereof, or other securities offering related to this Agreement, unless specifically requested or approved in writing by the Company or Manager. Unsolicited inquiries the Client receives from potential investors or media regarding the Company shall be referred to the Manager.

 

6.4. Secondary Trading Launch; Automatic Opt-In; Promotional Support. The Company (acting through the Manager) or an affiliate may operate or make available an alternative trading system (the “ATS”) on which the Company’s membership interests may be traded in secondary transactions, subject to applicable law and platform rules. Upon written notice from the Company (acting through the Manager) that secondary trading functionality for the trading of the Company’s membership interests has launched on the ATS (the “Secondary Trading Launch”), the Company’s membership interests, if eligible, will be automatically enabled for secondary trading under applicable platform rules and this Agreement. The Company shall retain the irrevocable right to enable the Company’s membership interests for secondary trading on the ATS. For the avoidance of doubt, such automatic opt-in applies only to the Company’s membership interests and does not create any new obligation for the Client, and the Client shall have no obligation to participate in or promote secondary trading on the ATS absent a separate written agreement. The Parties acknowledge that the Secondary Trading Launch may, in the future, enable the Client to repurchase membership interests in the Company, which shall give him an indirect interest in the Company’s rights to receive and be paid the Brand Percentage. Following the Secondary Trading Launch, any promotional activities by the Client related to the ATS will be documented in a separate agreement or statement of work between the Company and the Client, which will set the specific deliverables, timing, and fees. Such activities will be limited to platform-level awareness and user education, subject to Company guidance and approval, and must comply with applicable law (including broker-dealer/finder restrictions) and clear, conspicuous influencer endorsement disclosures. No compensation will be tied to securities transactions, trading volume, proceeds, or other success-based or transaction-based metrics.

 

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6.5 Compliance with Laws and League Rules. The Client shall perform his/her obligations under this Agreement, and shall pursue the Principal Business, in compliance with all applicable laws, regulations, and (if applicable) the rules and policies of any professional league or governing body relevant to the Client. The Client represents that nothing in this Agreement violates or causes a breach of any rule of any league, players’ association, or sanctioning body to which the Client is subject, and if any such conflict arises, the Client will promptly notify the Company. To the extent any provision of this Agreement is deemed to violate a mandatory rule or non-waivable regulation of a league or governing body, the Parties will cooperate in good faith to modify this Agreement as minimally as necessary to comply with such requirement while preserving the Parties’ economic intentions.

 

6.6. Player Not Issuer, Seller, or Solicitor; No Securities Activities. The Parties acknowledge and agree that the Client is not, and shall not be deemed to be, the issuer, promoter, seller, underwriter, placement agent, broker, dealer, finder, or solicitor of any securities in connection with the Series Offering, the ATS, or any other offering of membership interests in the Company, the Master LLC, or any series thereof. The securities offered in the Series Offering are membership interests issued by the Company, and the Series Offering is conducted by the Company through the Manager and its offering partners, including the registered broker-dealer (Andes Capital Group, LLC), the escrow agent (North Capital Private Securities Corporation), the transfer agent (Continental Stock Transfer & Trust Company), and the offering platform (Agentiq Sports, Inc.) engaged by the Company for such purpose. The Company shall not require the Client to engage in any activity constituting the offer, sale, or solicitation of securities without the Client’s prior written consent and a separate written agreement compliant with applicable securities laws. Nothing in this Agreement shall be construed to require the Client to participate in, promote, or make any statement in connection with any securities offering.

 

6.7. Nature of Promotional Obligations. The Parties acknowledge and agree that the autograph obligation under Section 2.5A, the annual Fan Meet-Up under Section 2.5B, the Ambassador Activities under Section 12.6, and any similar promotional or advisory obligations of the Client under this Agreement are brand-advisory promotional obligations forming part of the Advisory Services, and are not promotional obligations relating to the offer, sale, or solicitation of securities. Such obligations support the development of the Client’s personal brand and the value of the Advisory Services, and shall not be construed as the offer, sale, or solicitation of any securities.

 

7. Representations and Warranties

 

7.1. Authority and Capacity. Each Party represents and warrants that it has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder. The individual signing this Agreement on behalf of the Company (through the Manager) is duly authorized to do so. If the Client is an individual, the Client is of legal age and capacity to contract in his/her jurisdiction of residence. If the Client has any legal guardian or other person with legal authority over the Client’s affairs (e.g., due to minor status or incapacity), such guardian has approved and co-signed this Agreement (or a separate consent) to validate the Client’s entry into this Agreement.

 

7.2. Independent Advice. I fully understand the terms and conditions of the Agreement, and I have had the opportunity to be represented by an attorney, tax advisor and other professional representatives of my choosing in the review, negotiation and execution of the Agreement and performance of my obligations hereunder.

 

7.3 Binding Obligation. This Agreement constitutes a valid and binding obligation of each Party, enforceable against such Party in accordance with its terms, except as enforcement may be limited by bankruptcy or similar laws and general principles of equity. Each Party acknowledges that it had the opportunity to obtain independent legal advice with respect to this Agreement and that it has entered into this Agreement voluntarily, and each Party agrees not to challenge the validity or enforceability of this Agreement, except on the grounds of fraud in the inducement.

 

7.4. No Conflicts. The execution, delivery, and performance of this Agreement by the Parties does not and will not: (a) violate, conflict with, or result in a breach of any agreement, contract, or obligation to which such Party is a party or by which it is bound; or (b) require any consent, approval, or notice to any third party (except as has been obtained or provided). The Client specifically represents that he/she is not subject to any agreement or court order (including any with a sports team, league, sponsor, or prior financial partner) that would prohibit or materially impair the Client’s ability to perform this Agreement or to pay the Brand Amount to the Company as required.

 

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7.5. Litigation and Compliance. The Client represents that there are no existing or, to the Client’s knowledge, threatened actions, suits, or proceedings at law or in equity before any court, tribunal, governmental authority or arbitrator that could reasonably be expected to adversely affect the Client’s ability to perform its obligations under this Agreement. The Client further represents that he/she is not in material violation of any law, regulation, or order applicable to the Client that would impact the Client’s performance or the benefits intended to be conferred on the Company hereunder.

 

7.6. Accuracy of Information. The Client confirms that all information provided by the Client to the Company or Manager regarding the Client’s personal and professional background, current contract(s), compensation, and other facts relevant to this Agreement (including any personal information schedule or disclosure provided as of the Effective Date) is true, correct, and complete in all material respects. The Client will promptly notify the Company of any material changes to such information.

 

7.7. Brokerage. Each Party represents that it has not engaged or used any broker or finder in connection with the negotiation or execution of this Agreement, and no person or entity is or will be entitled to any brokerage commission, finder’s fee, or similar compensation in connection herewith by reason of any action of that Party. The Client shall be solely responsible for any commission or fee owed to any agent or representative engaged by the Client in connection with this Agreement or the transactions contemplated (including any commission to an agent who assisted the Client in negotiating this Agreement).

 

7.8. No Other Revenue Assignments. The Client reaffirms that, except as disclosed to the Company in writing, the Client has not previously assigned, pledged, or granted to any person or entity a security interest in, or other lien or claim on, any portion of the Client’s Brand Income or future earnings from the Principal Business.

 

7.9. Intellectual Property. The Client represents that the use of the Client Persona and any other intellectual property provided by the Client for the Company’s use (for example, photographs, logos, or content the Client supplies for marketing) will not infringe or violate the rights of any third party, including any copyright, trademark, privacy, publicity, or contractual rights of others. To the Client’s knowledge, any statements or endorsements made by the Client as part of the Advisory Services or any campaigns will be truthful and comply with applicable endorsement guidelines or laws.

 

7.10. Company Representations. The Company represents and warrants that: (a) it is validly formed and in good standing under the laws of Delaware as a designated series of Agentiq Sports 1 Series LLC; (b) the Manager has all necessary authority from Agentiq Sports 1 Series LLC and under the Company’s governing documents to enter into this Agreement on the Company’s behalf and to perform the obligations herein on behalf of the Company; (c) the execution and performance of this Agreement by the Company has been duly authorized by all necessary company action; and (d) the Company’s provision of Advisory Services to the Client will be performed in a professional and workmanlike manner by individuals or entities appropriately skilled and experienced in such services.

 

7.11. No Investment Advice. The Company and the Manager are not providing, and have not provided, the Client with any legal, tax, or investment advice regarding this Agreement. The Client acknowledges that he/she has been advised and encouraged to seek independent advice as to the legal and tax implications of this arrangement. The Company makes no representation regarding the tax treatment of the Initial Advisory Payment or the Brand Amount payments as to the Client.

 

7.12. No Prior Income Assignments, Liens, or Security Interests. The Client represents and warrants that, as of the Effective Date, the Client has not granted, assigned, pledged, or otherwise conveyed any security interest, lien, or other encumbrance in or to any portion of the Brand Income or any rights or proceeds relating thereto to any third party. The Client further represents that no person or entity other than the Company has any right, claim, or interest in the Brand Income that would conflict with the rights granted to the Company under this Agreement.

 

7.13. No Conflicting Account or Deposit Arrangements. The Client represents and warrants that, as of the Effective Date, the Client has not granted, executed, or delivered any deposit instructions, payment direction, lien, assignment, account control right, or other arrangement with respect to any payor of Brand Income or any deposit account that would conflict with, impair, or prevent the establishment, maintenance, or operation of the Participation Account, the direct deposit of Brand Income, the automatic bi-weekly transfer, or the Account Control Agreement, in each case as contemplated by Section 4.3.

 

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8. Term and Termination

 

8.1. Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless earlier terminated as provided herein, shall continue until the earlier of: (a) the date that is two years after the Client’s official retirement or permanent cessation from actively engaging in the Principal Business (the “Termination Tolling Period”); provided, however, that if the Client resumes actively engaging in the Principal Business at any time during the Termination Tolling Period, this Agreement shall not terminate pursuant to this clause (a) and shall remain in full force and effect; and (b) the 25th anniversary of the Effective Date. The Term may also be terminated earlier by mutual written agreement of the Parties or as otherwise provided below.

 

8.2. Survival. Notwithstanding the end of the Term by expiration or early termination, the rights and obligations of the Parties with respect to any Brand Income earned by the Client during the Term (even if paid after the Term) shall survive and remain enforceable until fully satisfied. In addition, any provisions of this Agreement that by their nature are intended to survive, including but not limited to, Sections 4, 9.5, 10, 13, 8.4 and 8.8(b), shall survive termination.

 

8.3. Early Termination.

 

(a) Failure of Series Offering; Automatic Adjustment. The Parties acknowledge that the Company has paid, or is obligated to pay, $350,000 of the Initial Advisory Payment to the Client within thirty (30) days following the Restatement Date, and that this Agreement shall remain in full force and effect regardless of whether the Initial Closing of the Series Offering occurs. Accordingly, neither Party shall have any right to terminate this Agreement solely on account of the failure of the Initial Closing to occur by the Outside Date. If, as of the Outside Date, the Company has not paid the full Initial Advisory Payment, then, automatically and without any further action by either Party, effective as of the Outside Date: (i) the Company shall have no further obligation to pay, and neither Party shall have any further obligation or liability with respect to, any unpaid portion of the Initial Advisory Payment, and the Initial Advisory Payment shall be fixed at the aggregate amount actually paid to the Client on or prior to the Outside Date (the “Funded Amount”); and (ii) the Brand Percentage shall be adjusted to equal the product of (x) the Brand Percentage as originally set forth herein, multiplied by (y) a fraction, the numerator of which is the Funded Amount and the denominator of which is $1,200,000 (such adjusted percentage, the “Adjusted Brand Percentage”), and all references in this Agreement to the “Brand Percentage” shall thereafter refer to the Adjusted Brand Percentage. The foregoing adjustment is self-executing and requires no further calculation, notice, consent, or amendment; provided, that the Company shall notify the Client of the Adjusted Brand Percentage, as calculated from the Company’s books and records, which calculation shall be controlling absent manifest error, and the Client may request reasonable supporting documentation to verify such calculation. For the avoidance of doubt: (A) if the Funded Amount equals $1,200,000, the Brand Percentage shall not be adjusted; (B) by way of illustration, if no Initial Closing occurs and the Funded Amount is $350,000, the Adjusted Brand Percentage would equal approximately 2.92% (10% multiplied by $350,000/$1,200,000); and (C) any Brand Amount accrued with respect to Brand Income earned prior to the Outside Date shall remain payable at the rate then in effect. For the further avoidance of doubt, this Agreement shall continue in full force and effect following the Outside Date in accordance with its terms, with the Initial Advisory Payment fixed at the Funded Amount and the Brand Percentage as adjusted pursuant to this Section 8.3(a).

 

(b) Breach of this Agreement. If either Party materially breaches this Agreement, the non-breaching Party may give written notice to the breaching Party describing the breach in reasonable detail. The breaching Party shall have 30 days (or 10 days, in the case of a payment default or breach of Section 6.1) from receipt of such notice to cure the breach to the reasonable satisfaction of the non-breaching Party. If the breaching Party fails to cure within the cure period, the non-breaching Party may terminate this Agreement immediately by providing written notice of termination to the breaching Party. Termination of the Agreement for breach shall be without prejudice to any other rights or remedies the non-breaching Party may have, including the right to seek damages or specific performance. If the Company is the non-breaching Party and terminates due to the Client’s breach, (without limiting any other remedy) the Company shall be entitled to seek and recover the Brand Amount on any Brand Income earned by the Client through the date of termination and any additional equitable relief necessary to put the Company in the position it would have been had the Client performed its obligations.

 

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(c) Collection Failures and Diversion. Without limiting Section 8.3(b), each of the following shall constitute a material breach of this Agreement by the Client: (i) any Collection Failure that is not cured within seven (7) business days after written notice from the Company; (ii) any revocation, modification, or repudiation of the direct deposit of Brand Income or the automatic bi-weekly transfer in contravention of Section 4.3(f); (iii) any refusal or failure by the Client to execute, deliver, or maintain the Account Control Agreement; and (iv) any intentional diversion, redirection, or instruction to redirect Brand Income away from the Participation Account, which clause (iv) shall be deemed an immediate material breach with no cure period and shall entitle the Company to exercise all remedies under this Agreement, including termination, recovery of unpaid Brand Amounts, and equitable relief.

 

8.4. Clawback on Voluntary Early Exit. The Client acknowledges that the Company is entering into this Agreement and paying the Initial Advisory Payment (whether in one or more installments) with the expectation of sharing in the Client’s future Brand Income over a multi-year period. Accordingly, if the Client voluntarily ceases to engage in the Principal Business prior to the fifth anniversary of the Effective Date (the “Early Termination Date”) (for any reason other than Good Reason, as defined below), the Client shall repay to the Company, except as otherwise set forth below, the aggregate amount of the Initial Advisory Payment actually received by the Client by way of liquidated damages. Specifically, in the event of such early voluntary exit, the Client shall pay the Company an amount equal to (a) the aggregate Initial Advisory Payment actually received by the Client (whether in a single payment at Initial Closing or through multiple payments over additional closings), plus the lesser of (i) the Prime Rate plus 5% per annum, compounded monthly from the Early Termination Date to the date of repayment and (ii) the maximum rate permitted by applicable law, (b) minus all Brand Amount payments actually made by the Client to the Company prior to the Early Termination Date. Such repayment shall be due in full within 30 days after the Client’s cessation of the Principal Business; provided, that if such Brand Amounts paid to the Company exceeds the sum of (a) above, then no amounts shall be owed to the Company. The Parties agree that this repayment obligation is a reasonable estimate of a portion of the damages the Company would incur from the loss of anticipated Brand Income, and is not a penalty. Notwithstanding the foregoing, the repayment amount otherwise due under this Section 8.4 shall be reduced by fifteen percent (15%) for each of the first six (6) full years of the Client’s participation in the Principal Business following the Effective Date, and by an additional ten percent (10%) for the seventh (7th) full year of such participation, such that no amount shall be repayable under this Section 8.4 from and after the seventh (7th) anniversary of the Effective Date; and, in addition, no amount shall be repayable under this Section 8.4 if, as of the Early Termination Date, the aggregate Brand Amount payments actually made by the Client to the Company equal or exceed the sum of the aggregate Initial Advisory Payment actually received by the Client plus a twenty percent (20%) per annum internal rate of return thereon. This Section 8.4 shall not apply if the Client’s early cessation of the Principal Business is for Good Reason.

 

8.5. Definition of Good Reason. “Good Reason” for the Client’s voluntary early cessation of the Principal Business (e.g., retirement from professional athletics) shall exist only if the Client’s exit is due to a significant, documented injury, illness, or medical condition (a “Major Injury”) that either renders the Client physically or mentally unable to continue performing in the Principal Business or which, if the Client were to continue, would pose a substantial risk of permanent harm to the Client’s physical or mental health beyond the ordinary risks of the profession. For the avoidance of doubt, a documented mental-health condition shall constitute a Major Injury and Good Reason if it is certified by a licensed mental-health professional, subject to the same independent verification process set forth below for medical determinations. The existence of Good Reason shall be determined in good faith by the Parties. In the event of a disagreement as to whether a Major Injury constitutes Good Reason, the Parties shall submit the matter for determination by a qualified independent physician or, in the case of a mental-health condition, a qualified independent licensed mental-health professional: the Parties shall jointly select a physician or professional with relevant expertise, or if they cannot agree, each Party shall select one and those two shall jointly select a third with relevant expertise to make a final and binding determination. The Client shall be responsible for any costs of obtaining medical or mental-health evaluations, and the Parties shall share equally any fees of an independent deciding physician or professional.

 

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8.6. Effect of Death or Incapacity. If the Client dies or becomes permanently and totally disabled during the Term, such that the Client can no longer continue in the Principal Business, the Term shall be deemed to end as of the date of death or determination of permanent disability. In the case of death, the Client’s estate shall be obligated to pay any Brand Amounts due for Brand Income earned up to the date of death (e.g., any salary or bonus earned prior to death but paid after death), but no further Brand Amount shall accrue after death except to the extent payments contractually earned prior to death are made posthumously. In the case of permanent disability, the Parties (or the Client’s legal representative) will confer in good faith regarding an equitable resolution of any ongoing obligations, but generally the occurrence of total and permanent disability (as reasonably determined by medical evidence) shall be treated similar to a retirement for Good Reason, and the clawback provisions of Section 8.4 shall not apply. Except as provided in Section 8.4, in no event shall the Client, the Client’s legal representative or the Client’s estate, as the case may be, be obligated or otherwise required to return the Initial Advisory Payment, or any portion thereof, to the Company.

 

8.7. Mutual Termination. The Parties may at any time mutually agree in writing to terminate this Agreement on an agreed date. In such event, they will also set forth in the termination agreement the handling of any future Brand Income or outstanding obligations. Unless otherwise agreed, if the Agreement is terminated by mutual agreement, the Company will only be entitled to the Brand Amount from Brand Income earned by the Client up to the date of termination, and the Client will have no further obligation to pay Brand Amount on income earned after termination (and no clawback would apply unless expressly agreed as part of the termination provisions). Any mutual termination agreement must be signed by both the Client and the Manager on behalf of the Company.

 

8.8 Resumption of Principal Business Before or After Termination.

 

(a) Resumption within Termination Tolling Period. If, the Client resumes active participation in the Principal Business at any time during the Termination Tolling Period: (i) this Agreement shall be deemed not to have terminated pursuant to Section 8.1(a) and shall automatically continue in full force and effect from and after the date of such resumption; and (ii) all payment systems, methods, schedules, and obligations agreed upon under this Agreement-including, without limitation, the Brand Percentage and all related payment, reporting, withholding, and audit obligations-shall be reinstated as of the date of such resumption and shall apply to Brand Income earned on and after such date.

 

(b) Resumption after Termination Tolling Period. If the Client resumes active participation in the Principal Business after the end of the Termination Tolling Period and, as a result, this Agreement has terminated pursuant to Section 8.1(a), the Client shall, from and after such resumption, pay the Brand Percentage with respect to the Client’s Brand Income to a trust to be established for such purpose (the “Revenue Share Trust”). The manager shall serve as the sole trustee of the Revenue Share Trust, and the former members of the Company shall be the beneficiaries thereof. Disbursements from the Revenue Share Trust, net of any trust operating costs and expenses, if any, shall be made on the same terms, timing, methodology, and waterfall as provided in this Agreement for Brand Percentage payments. The Client shall cooperate in good faith and execute all documents and take all actions reasonably necessary or desirable to establish the Revenue Share Trust and to effect the payment of the Brand Percentage to the Revenue Share Trust (including, where applicable, directing counterparties and payors of Brand Income to remit the Brand Percentage directly to the Revenue Share Trust).

 

(c) No additional consideration. For the avoidance of doubt, no additional Initial Advisory Payment or other consideration shall be due to the Client upon any continuation or reinstatement under Section 8.8(a) or upon payments to the Revenue Share Trust under Section 8.8(b). The Initial Advisory Payment made as of the Commencement Date shall be deemed full and adequate consideration for the entire Term and for the payment obligations described in this Section 8.8.

 

(d) Notice. The Client shall provide written notice to the Company of any intention or plan to resume participation in the Principal Business and, in any event, shall notify the Company in writing no later than ten (10) business days after any such resumption. Failure to provide such notice within the required timeframe shall constitute a material breach of this Agreement, entitling the Company to all remedies available under Section 8.3, including, without limitation, equitable relief and the right to enforce the obligations set forth in this Section 8.8.

 

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9. Additional Covenants of Client

 

9.1. Right to Purchase Insurance. The Client agrees that the Company (or its designee) shall have the right, at its own expense, to purchase and maintain one or more life insurance and/or disability insurance policies on the life and/or health of the Client. The Company (or its designee) shall be the sole owner and beneficiary of any such policy, and the Company shall be responsible for payment of all premiums associated with such insurance. The Client shall have no right, title, or interest in any such policy or its proceeds. The Client shall cooperate in good faith with the Company and any insurance carrier in connection with the application for and maintenance of such insurance, including by (a) submitting to reasonable medical examinations, (b) providing truthful and complete information as required by the insurer, (c) executing any documents reasonably necessary to effectuate or maintain such insurance, and (d) promptly forwarding to the Company any correspondence, notices, or documents relating to any such policy that the Client may receive. The Company shall be registered as the owner on all such policies. The Company shall have no obligation to purchase or maintain any such insurance, and the decision to do so shall be at the Company’s sole discretion.

 

9.2 Professional Conduct. The Client shall use good-faith efforts to maintain an active career in the Principal Business during the Term, subject to the Client’s personal and professional circumstances. While this Agreement does not impose a duty on the Client to achieve any specific performance milestones, the Client agrees not to intentionally take actions that would foreseeably and materially diminish the Client’s ability to generate Brand Income (except as might be reasonable for health or family considerations). The Client agrees to abide by all material contractual obligations the Client has in the Principal Business (e.g., the terms of any team or league contracts) and to conduct himself/herself in a manner consistent with professional standards, to the extent that a failure to do so could cause a material decrease in Brand Income (for example, the Client will not willfully incur a suspension or ban from the Principal Business without good cause). This Section does not grant the Company any control or decision-making power over the Client’s career decisions, personal behavior, or professional training but rather expresses the expectation that the Client will act in good faith not to deliberately undermine the value of the revenue sharing arrangement.

 

9.3. Further Assurances. The Client shall execute and deliver such additional documents, and take such further actions, as may be reasonably requested by the Company or Manager to carry out the purpose and intent of this Agreement. This includes, without limitation, executing any certifications or notices needed for the Company to perfect its contractual rights to receive the Brand Amount (such as separate irrevocable payment instruction letters to third-party payors, or UCC financing statements if applicable to establish a security interest to secure payment). The Client shall also cooperate with the Company in good faith to adjust the mechanism of payment, or to modify this Agreement, if required by changes in law or regulation (including league rules or collective bargaining outcomes) in order to give effect to the original intent of the Parties in a lawful manner. The Client’s obligations under this Section 9.3 are in addition to, and not in limitation of, the irrevocable proxy and power of attorney granted to the Manager under Section 4.8.

 

9.4. Spousal Consent. If the Client is married or subsequently marries during the Term, the Client shall use best efforts to obtain his/her spouse’s signature on a spousal consent or acknowledgement in a form reasonably requested by the Company. Such consent will acknowledge the spouse’s awareness of this Agreement (including the security interest in the Collateral and the irrevocable proxy and power of attorney granted to the Manager under Section 4.8) and, to the extent applicable under state marital or community property laws, will confirm that the spouse waives or releases any claim that this Agreement (including such security interest and proxy and power of attorney) is not fully enforceable against the Client’s share of marital property or community income. If the Client’s spouse declines to sign a consent, the Client shall promptly notify the Company and discuss in good faith whether alternate arrangements (such as additional security or escrow of funds) are necessary to protect the Company’s interests.

 

9.5. Confidentiality of Company Information. The Client recognizes that, through interaction with the Company and Manager, the Client may receive or have access to non-public information regarding the Company’s business, financing, investors, and plans. The Client agrees to hold in confidence any confidential or proprietary information of the Company or Manager provided to the Client and not to disclose it to any third party (except the Client’s advisors who are under duties of confidentiality) without the Company’s consent, except as required by law. Nothing herein limits the Client’s ability to disclose information about his/her own financial arrangements as needed for personal business or tax reasons, so long as the Client takes reasonable steps to ensure any third-party recipients (e.g., financial advisors, accountants) also keep such information confidential.

 

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9.6. Disclosure of Material Events.

 

(a) The Client shall promptly notify the Company in writing of the occurrence of any Material Event (as defined below) during the Term of this Agreement and for a period of twelve (12) months thereafter, to the extent such Material Event relates to or could reasonably be expected to affect the Client’s performance under this Agreement, the Client’s reputation, or the value of the Company’s rights hereunder.

 

(b) For purposes of this Agreement, a “Material Event” includes, but is not limited to, the following:

 

(i) The commencement, threatened commencement, or written notice of any litigation, arbitration, or other legal proceeding involving the Client, whether as a plaintiff, defendant, or witness, that alleges or could reasonably be expected to allege claims of fraud, breach of contract, violation of law, or any other matter that could materially impact the Client’s ability to perform under this Agreement or the Client’s reputation;

 

(ii) Any actual or alleged breach by the Client of any material contract, including but not limited to employment, endorsement, sponsorship, or agency agreements, or any contract relevant to the Client’s participation in the Principal Business;

 

(iii) Any written or formal allegation, investigation, or charge by a league, governing body, regulatory authority, or law enforcement agency regarding unlawful activity, rule violations, or misconduct by the Client, including but not limited to allegations of doping, match-fixing, gambling, or other conduct that could result in suspension, fines, or disciplinary action;

 

(iv) The imposition of any fine, suspension, ban, or other disciplinary measure by any league, team, governing body, or regulatory authority in connection with the Client’s professional activities;

 

(v) Any public or media allegation of misconduct, unethical behavior, or other conduct that could reasonably be expected to materially harm the Client’s reputation or the value of the Company’s rights under this Agreement;

 

(vi) Any event or circumstance that results in or could reasonably be expected to result in a material adverse effect on the Client’s ability to generate Brand Income, including but not limited to injury, illness, or loss of eligibility to participate in the Principal Business (other than as already covered by Section 8.6).

 

(c) The Client shall provide written notice to the Manager of any Material Event as soon as practicable, and in any event within ten (10) business days after the Client becomes aware of such Material Event. The notice shall include reasonable details regarding the nature of the event, the parties involved, the potential or actual consequences, and any steps being taken to address or resolve the matter.

 

(d) The Client shall keep the Company reasonably informed of any material developments or changes relating to any disclosed Material Event, including the resolution or settlement of any such matter.

 

(e) The Company agrees to treat all information disclosed pursuant to this Section as Confidential Information, subject to the confidentiality provisions of this Agreement, except to the extent disclosure is required by law, regulation, or as necessary to protect the Company’s interests or enforce its rights under this Agreement.

 

(f) The failure by the Client to timely disclose a Material Event as required by this Section shall constitute a material breach of this Agreement, entitling the Company to exercise its rights and remedies as set forth herein, including but not limited to the right to terminate the Agreement for cause pursuant to Section 8.3.

 

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9.7 No Grant of Security Interests. During the Term of this Agreement, the Client shall not, without the prior written consent of the Company, grant, assign, pledge, or otherwise convey any security interest, lien, or other encumbrance in or to any portion of the Brand Income or any rights or proceeds relating thereto to any third party. Any attempt to do so shall be null and void and shall constitute a material breach of this Agreement.

 

9.8 No Diversion of Brand Income. During the Term, the Client shall not (a) divert, redirect, or cause to be diverted or redirected any Brand Income away from the Participation Account, (b) instruct, request, or permit any payor to disregard, modify, or fail to honor any direct deposit of Brand Income or payment direction, or (c) take any other action intended or reasonably likely to cause Brand Income to be paid other than directly into the Participation Account, except in each case as expressly permitted under Section 4.3(g) or Section 4.3(j). Any breach of this Section 9.8 shall constitute a material breach of this Agreement.

 

9.9 Maintenance of Collection Mechanism. During the Term, the Client shall: (a) designate and direct one hundred percent (100%) of the Client’s Brand Income to be deposited directly into the Participation Account established under the Account Control Agreement; (b) open and maintain the Participation Account at a bank or financial institution that is willing to execute the Account Control Agreement and is otherwise reasonably acceptable to the Company; (c) establish and maintain an automatic bi-weekly transfer of the Brand Amount from the Participation Account to the Company Account; and (d) not cancel, revoke, reduce, suspend, or modify any such direct deposit designation or automatic transfer, or close or replace the Participation Account, without the Company’s prior written consent. Any unauthorized cancellation, revocation, reduction, suspension, or modification of any of the foregoing shall constitute a Collection Failure and a material breach of this Agreement, entitling the Company to all remedies available under this Agreement, including under Sections 4.5 and 8.3.

 

10. Indemnification

 

10.1. Indemnification by Client. The Client shall indemnify, defend, and hold harmless the Company, the Manager, and their respective affiliates, and each of their officers, directors, employees, and agents (collectively, the “Company Parties”), from and against any and all losses, liabilities, damages, costs, or expenses (including reasonable attorneys’ fees) (collectively, “Losses”) arising out of or relating to: (a) any breach or alleged breach by the Client of any representation, warranty, or covenant in this Agreement; (b) any failure by the Client to pay any required taxes or fulfill other obligations related to the Client’s receipt of Brand Income (except to the extent the failure was due to the Company’s breach of its obligations); (c) any claim by a third party (including any agent or former business partner of the Client) that it is entitled to any portion of the Brand Amount or that it suffered harm due to the Client’s granting of rights to the Company hereunder; or (d) the Client’s gross negligence or willful misconduct in the performance of this Agreement or in the Client’s activities generating Brand Income (for example, a third-party personal injury claim arising from the Client’s actions in the Principal Business, to the extent the Company or Manager is named as a defendant solely because of this Agreement). The Client’s indemnification obligation shall not apply to the extent any Losses are finally determined to result from a Company Party’s own fraud, gross negligence, or willful misconduct.

 

10.2. Indemnification by Company. The Company (on behalf of itself and the Manager) shall indemnify, defend, and hold harmless the Client and the Client’s heirs, executors, and assigns (the “Client Parties”) from and against any and all Losses arising out of or relating to: (a) any breach or alleged breach by the Company of any representation, warranty, or covenant in this Agreement; (b) any claim by a third party arising from the Company’s use of the Client Persona beyond what is permitted in this Agreement or otherwise from the Company’s marketing or promotional activities for the Client (except to the extent such claim arises from information or materials provided by the Client for such use, in which case the Client will indemnify as provided above); (c) the gross negligence or willful misconduct of the Company, the Manager, or any of their agents in performing the Advisory Services or other obligations under this Agreement; or (d) any claim, action, or proceeding brought against the Client under federal or state securities laws solely as a result of the Company’s offering activities in connection with the Series Offering, the ATS, any other offering of membership interests in the Company, the Master LLC, or any series thereof, or any capital-raising, disclosure, or regulatory activity conducted by or on behalf of the Company, provided that the Client did not solicit investors, make any offering-related statement, make any misrepresentation or omission, breach this Agreement, or otherwise engage in conduct giving rise to such claim. The indemnification obligation under clause (d) shall be subject to the procedures set forth in Section 10.3, including prompt notice, the Company’s right to control the defense, and no settlement without the Client’s consent. The Company’s indemnification obligation shall not apply to the extent any Losses are determined to result from the Client’s own fraud, gross negligence, or willful misconduct.

 

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10.3. Procedure. A Party seeking indemnification (the “Indemnified Party”) shall promptly notify the other Party (the “Indemnifying Party”) in writing of any third-party claim or action for which indemnification is sought, and shall reasonably cooperate with the Indemnifying Party in the defense of the claim. The Indemnifying Party shall have the right to control the defense and settlement of any such claim, except that it may not settle any claim in a manner that imposes any liability or admission of fault on the Indemnified Party without the Indemnified Party’s prior written consent (such consent not to be unreasonably withheld). The Indemnified Party may participate in the defense with its own counsel at its own expense. Failure to promptly notify the Indemnifying Party of a claim shall only relieve the Indemnifying Party of its obligations to the extent it was materially prejudiced by the delay.

 

10.4. Survival. The provisions of this Section 10 shall survive the termination or expiration of this Agreement.

 

11. Confidentiality

 

11.1Confidential Information. Each Party acknowledges that in connection with this Agreement it may receive or have access to confidential or proprietary information of the other Party (“Confidential Information”). Confidential Information includes, without limitation, non-public business plans, strategies, financial information, projections, personal or medical information about the Client, the terms and existence of this Agreement (until publicly disclosed by mutual agreement or as required by law), any non-public materials related to the Company’s investors or financing, and any other information designated as confidential or that should reasonably be understood to be confidential given its nature and the circumstances of disclosure.

 

11.2. Nondisclosure and Use. Each Party agrees that it will not disclose the Confidential Information of the other Party to any third party, and will not use the other Party’s Confidential Information for any purpose outside the scope of this Agreement, without the prior written consent of the other Party. Each Party may share Confidential Information of the other with its own affiliates, employees, legal or financial advisors, or agents who have a need to know it for purposes of this Agreement, provided they are under obligations of confidentiality at least as protective as those herein. Each Party shall protect the confidentiality of the other’s Confidential Information using the same degree of care as it uses to protect its own confidential information of similar importance, and at least reasonable care.

 

11.3. Exceptions. The obligations of confidentiality in this Section shall not apply to information which: (a) is or becomes generally available to the public other than through a breach of this Agreement; (b) is received by the receiving Party on a non-confidential basis from a third party who is not known to be bound by a confidentiality obligation to the disclosing Party; (c) was already known or independently developed by the receiving Party without use of the disclosing Party’s Confidential Information, as evidenced by the receiving Party’s written records; or (d) is required to be disclosed by law, regulation, or court order, provided that (if legally permitted) the receiving Party gives prompt notice to the disclosing Party of the intended disclosure and cooperates in any effort to limit or protect the disclosure.

 

11.4. Public Announcements. Neither Party will issue any press release or public statement regarding this Agreement or the relationship between the Parties without the prior written consent of the other (which consent shall not be unreasonably withheld). It shall not be a violation of this Section for the Company to include general, non-identifying references to its Brand Advisory Agreement with the Client in routine business descriptions or required regulatory filings (for example, referring to the existence of a contract with “a professional athlete in [Sport] executed on [Date]” without naming the Client, unless such naming is legally required in a filing). Likewise, the Client may disclose the existence of this Agreement in confidence to financial advisors or as necessary for personal business, provided those persons are bound to confidentiality as noted above. Notwithstanding the foregoing, either Party may disclose this Agreement, or file it to the extent required by applicable securities laws or regulations. Where legally permitted and practicable, the disclosing Party will give the other Party advance notice, consider good-faith comments and limit disclosure to what is required. Disclosures made in compliance with this paragraph (including disclosures compelled by law or governmental inquiry) do not violate this Section or any confidentiality obligations.

 

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11.5. Remedies. Each Party acknowledges that unauthorized use or disclosure of the other’s Confidential Information may cause irreparable harm for which monetary damages may be difficult to ascertain or an insufficient remedy. Accordingly, each Party agrees that the other Party shall be entitled to seek injunctive relief (without the necessity of posting bond) to prevent any actual or threatened breach of this Section 11, in addition to any other rights and remedies available at law or in equity.

 

12. Publicity Rights and Use of Client Persona

 

12.1. License to Use Client Persona. The Client hereby grants to the Company and the Manager a non-exclusive, worldwide, royalty-free right and license to use the Client Persona during the Term, and in any event until this Agreement is terminated or expires, in connection with the Company’s performance under this Agreement and the promotion thereof. This license includes the right for the Company and Manager to use, reproduce, distribute, and publicly display the Client’s name, image, likeness, and other elements of the Client Persona in advertising, marketing, press releases, investor communications, social media, and on the Agentiq Sports online platform or app, solely for the purpose of describing or promoting: (a) the Advisory Services and brand initiatives being performed for the Client; (b) the Client’s association with the Company as a client; and/or (c) the Client’s background and achievements as relevant to the Company’s business. Any such use shall be consistent with professional standards and shall not be disparaging or defamatory toward the Client. The Company will consult with the Client on major publicity materials where feasible, but final editorial control remains with the Company for materials it produces.

 

12.2. No Endorsement of Third Parties. Except as expressly agreed by the Client, the license granted in Section 12.1 does not include the right to use the Client Persona to endorse or advertise any specific third-party product or service (unrelated to this Agreement or the Company’s own services). The Company will not, for example, use the Client’s persona in a manner that suggests the Client is directly endorsing a product, sponsor, or commercial entity, unless such use is part of a campaign or initiative that has been discussed with and approved by the Client. If the Company desires the Client to participate in any endorsements or promotional events beyond the scope of this Agreement, including any compensation or additional terms for such activities, the Parties may separately agree to any such arrangements in writing.

 

12.3. Public Statements by Client. The Client agrees not to make any public statement or engage in any publicity that disparages or places in a negative light the Company, the Manager, or any of their affiliated entities, or that reveals confidential aspects of this Agreement. The Client may state factual information such as “I have partnered with [Company Name] to build my brand” or similar positive or neutral descriptions. The Client shall refer any media inquiries about the Company or this Agreement to the Manager. The Client’s obligations under this Section shall not restrict the Client’s ability to comment on general industry topics or on his/her personal career outside the scope of this Agreement, and shall not apply to truthful statements made in legal or arbitral proceedings.

 

12.4. Approval of Materials. To avoid conflicts with the Client’s other endorsement deals or personal branding, the Company agrees to consider in good faith any reasonable requests by the Client to modify or remove specific uses of the Client Persona that the Client believes conflict with the Client’s existing personal brand or contractual commitments. The Client will notify the Company of any known restrictions (e.g., if the Client has an exclusive apparel sponsor and cannot appear wearing competing logos) so that the Company can take those into account in advance. The Company shall use commercially reasonable efforts to accommodate such restrictions in any public-facing materials or events involving the Client.

 

12.5. Ownership and Goodwill. All goodwill arising from the Company’s authorized use of the Client Persona shall inure to the benefit of the Client. The Company acknowledges that, except for the license rights granted herein, it has no ownership or proprietary interest in the Client Persona. Conversely, the Client acknowledges that any materials (e.g., promotional videos, articles, or content) created by the Company or Manager that include elements of the Client Persona and are used to promote the Company’s business may also include the Company’s or Manager’s intellectual property (logos, trademarks, creative content), and the Company retains ownership of those materials (subject to the Client’s continuing rights in his/her persona). Neither Party will challenge the other’s ownership of its pre-existing intellectual property or persona rights.

 

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12.6. Ambassador Activities. At the Company’s reasonable request and subject to the Client’s professional schedule, the Client agrees to participate in two promotional events or media appearances per year (“Ambassador Activities”) to help promote the brand partnership or the Company’s platform (such as interviews, social media live sessions, or client spotlights). The specific nature and timing of any Ambassador Activities shall be mutually agreed, and the Client shall not be obligated to engage in any activity that would unreasonably interfere with the Client’s duties in the Principal Business or other prior commitments. Unless otherwise agreed, the Client will not receive separate compensation for such agreed Ambassador Activities beyond the consideration provided in this Agreement, but the Company will reimburse any reasonable pre-approved travel or lodging expenses incurred for an agreed event.

 

13. Dispute Resolution

 

13.1. Negotiation. In the event of any dispute, controversy, or claim arising out of or relating to this Agreement or the breach thereof (a “Dispute”), the Parties shall first attempt in good faith to resolve the Dispute informally. Either Party may initiate this negotiation process by providing written notice to the other Party of the issue. The Parties (and their representatives, if applicable) shall meet and confer within 10 business days of such notice (whether in person or by teleconference) to discuss the Dispute and seek a mutually agreeable solution. If the Dispute involves financial calculations or accounting matters, the Parties may involve accountants or advisors in the discussion.

 

13.2. Arbitration. If the Parties are unable to resolve any Dispute through negotiation within 10 days from the initial notice of the Dispute (or such longer period as they may mutually agree), then the Dispute shall be finally settled by binding arbitration. The arbitration shall be administered by JAMS (or, if JAMS is unavailable, a comparable reputable arbitration organization) and held in a place determined by the Company or virtually, if mutually agreeable to the Parties. The arbitration shall be conducted by a single arbitrator knowledgeable in contract and commercial law, selected by mutual agreement of the Parties from the JAMS panel, or if the Parties cannot agree, then in accordance with the JAMS rules for arbitrator selection. The arbitration shall follow the JAMS Streamlined Arbitration Rules & Procedures (or, if the amount in controversy exceeds $250,000, the Comprehensive Rules) then in effect, except as modified herein.

 

13.3. Arbitration Procedure. The arbitrator shall allow reasonable discovery, taking into account the needs of the Parties and the importance of the issues. The arbitrator is empowered to grant any remedy or relief that the Parties could have received in court, including injunctive relief and attorney’s fee awards, subject to the limitations of this Agreement. The arbitrator’s award shall be written, shall state the essential findings and conclusions upon which the award is based, and shall be final and binding on the Parties. Judgment on the arbitration award may be entered in any court having jurisdiction.

 

13.4. No Class Actions. The Parties further agree that any arbitration shall be conducted in their individual capacities only and not as a class action or other representative action, and the Parties expressly waive their right to file a class action or seek relief on a class basis. THE PARTIES AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. If any court or arbitrator determines that the class action waiver set forth in this paragraph is void or unenforceable for any reason or that an arbitration can proceed on a class basis, then the arbitration provision set forth above shall be void in its entirety and the Parties shall be deemed to have not agreed to arbitrate disputes.

 

13.5 Confidentiality of Proceedings. The Parties agree that any arbitration (or negotiation) conducted under this Section 13 shall be confidential. The existence of the arbitration, any non-public information provided in the arbitration, and any oral or written arguments or decisions made in the arbitration shall not be disclosed to any third party, except to the extent necessary to enforce an award, to pursue a legal right, or as required by law.

 

13.6 Interim Relief. Notwithstanding the foregoing arbitration provisions, either Party may at any time seek interim or preliminary injunctive relief from a court of competent jurisdiction (consistent with Section 14.7) in order to prevent irreparable harm, maintain the status quo, or enforce the confidentiality or intellectual property provisions of this Agreement, pending the outcome of arbitration. Seeking such relief shall not be deemed a waiver of the right to arbitrate.

 

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13.7. Fees and Expenses. The Parties shall share equally the administrative fees and arbitrator’s fees of the arbitration. Each Party shall otherwise bear its own attorneys’ fees and costs, provided that the arbitrator may, in his or her discretion, award reasonable costs and attorneys’ fees to the prevailing Party if the arbitrator determines that the positions taken by the other Party were frivolous or in bad faith.

 

14. Miscellaneous Provisions

 

14.1. Assignment. The Client may not assign, delegate, or transfer (by operation of law or otherwise) this Agreement or any of the Client’s rights or obligations hereunder without the prior written consent of the Company. Because the Agreement involves personal services and the personal future income of the Client, any attempted assignment by the Client shall be null and void unless approved by the Company in writing. The Company may assign its rights and obligations under this Agreement, in whole or in part, to: (a) any Affiliate or successor of the Company; (b) any transferee of all or substantially all of the Company’s rights in the Brand Amount (for example, a collateral assignment to a trust or other entity for the benefit of investors, or a sale of the Company’s interest subject to the Client’s obligations remaining unchanged); or (c) any person or entity that acquires the Company or a controlling interest in the Company (such as through a merger or consolidation of Agentiq Sports 1 Series LLC or sale of the Company’s assets), provided that any such assignee agrees in writing to be bound by the terms of this Agreement. After any permitted assignment by the Company, the Company shall be released from the obligations so assigned, and the assignee shall have all rights (and related obligations) of the Company assigned to it. The security interest granted under Section 4.8 and the irrevocable proxy and power of attorney granted thereunder shall, in connection with any such permitted assignment, automatically inure to the benefit of the assignee or successor (and, with respect to the proxy and power of attorney, the manager of such assignee or successor), without any further action by the Client; provided that, upon the Company’s reasonable request, the Client shall execute and deliver a confirmatory grant of such proxy and power of attorney in favor of the manager of the assignee or successor. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns.

 

14.2. Authority of Manager. The Client acknowledges that the Manager is the sole manager of the Company and that, pursuant to the Company’s governing documents, the Manager has the exclusive authority to manage and control the affairs of the Company, including the administration and enforcement of this Agreement. Accordingly, any rights, elections, consents or actions of the Company under this Agreement may be exercised or performed by the Manager on the Company’s behalf (including the irrevocable proxy and power of attorney granted to the Manager under Section 4.8), and any notice to be given to the Company under this Agreement should be given to the Manager (as provided in the Notice section below). The Client agrees that the Manager is an intended third-party beneficiary of this Agreement to the extent necessary to enable the Manager to enforce the Company’s rights and to perform the Company’s obligations hereunder (including the right to receive payments on the Company’s behalf and the right to act as proxy and attorney-in-fact under Section 4.8). If the Manager is replaced, the new Manager shall automatically be substituted as the “Manager” for purposes of this Agreement, including for purposes of the proxy and power of attorney granted under Section 4.8.

 

14.3. Entire Agreement. This Agreement (including any exhibits or schedules hereto, which are hereby incorporated by reference) constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral, between the Parties concerning such subject matter, including the Original Agreement. Each Party acknowledges that it has not relied on any representations, warranties, or covenants not expressly contained in this Agreement in deciding to enter into this Agreement. For the avoidance of doubt, this Agreement amends and restates the Original Agreement in its entirety, and, effective as of the Restatement Date, the Original Agreement is of no further force or effect.

 

14.4. Amendment and Waiver. This Agreement may not be modified or amended except by a written instrument executed by both Parties (and, with respect to the Company, signed by an authorized officer of the Manager). No waiver of any provision of this Agreement shall be effective unless set forth in a written waiver signed by the Party waiving the provision. No failure or delay by either Party in exercising any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any further exercise of that or any other right or remedy.

 

14.5. Severability. If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid, illegal, or unenforceable by a court or arbitrator of competent jurisdiction, such provision shall be enforced to the maximum extent permissible, and the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby. The Parties shall negotiate in good faith to modify the Agreement to implement the intent of the invalid or unenforceable provision to the fullest extent possible in a valid and enforceable manner.

 

26

 

 

14.6. Notices. All notices, requests, consents, and other communications required or permitted under this Agreement (each, a “Notice”) shall be in writing and shall be deemed given: (a) on the date of personal delivery, if personally delivered; (b) on the date of confirmed transmission, if emailed (with confirmation of successful transmission and a copy sent by another method for confirmation); (c) one business day after being sent by a nationally recognized overnight courier with tracking; or (d) three days after being sent by registered or certified U.S. mail, return receipt requested, postage prepaid. Notices shall be sent to the Parties at the addresses (including email addresses) specified below, or such other address as a Party may designate by Notice to the other:

 

If to the Company:

 

Agentiq Sports 1 Series LLC
c/o Agentiq Sports, Inc., Manager
445 Bryant St,
San Francisco, CA 94107
Email: zach@agentiqsports.com

 

With a copy to:

 

Bevilacqua PLLC

800 Connecticut Avenue, N.W., Suite 300

Washington, DC 20036

Attention: Lou Bevilacqua, Esq

lou@bevilacquapllc.comlou@bevilacquapllc.com

 

If to the Client:

 

To the email address most recently provided in writing by the Client to the Company for notice purposes.

 

Either Party may change its notice address by providing Notice to the other Party in accordance with this Section. Notices given in electronic form (email) should be supplemented by a physical copy by mail or courier, but failure to send the physical copy will not invalidate the notice if the email is confirmed received.

 

14.7. Governing Law. This Agreement and any disputes arising under or related to it (including any arbitration proceedings) shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any conflict of law principles that would result in the application of the laws of another jurisdiction. Subject to the arbitration provisions above, and for the limited purposes of court actions described in Section 13 or enforcement of arbitration awards, each Party hereby consents to the exclusive jurisdiction of the state and federal courts located in Delaware. Each Party waives any objection based on forum non conveniens or any objection to venue of any such court.

 

14.8. Relationship of Parties. The Parties are independent contractors, and nothing in this Agreement shall be construed to create a partnership, joint venture, agency, franchise, or employment relationship between the Parties. The Client is not an employee or agent of the Company or Manager, and the Company is not an agent of the Client. Neither Party has the authority to bind the other to any third party, contractually or otherwise, except as explicitly set forth herein. The Client acknowledges that the Company’s role is limited to providing the Advisory Services and receiving the Brand Amount; the Company is not undertaking the management of the Client’s career or assuming the role of a professional agent or manager for the Client.

 

14.9. No Third-Party Beneficiaries. Except for the Manager and related indemnitees as expressly provided herein (who shall be third-party beneficiaries to the extent stated), this Agreement is for the sole benefit of the Company and the Client and their permitted successors and assigns. Nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit, or remedy of any nature under or by reason of this Agreement.

 

14.10. Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, email (pdf), or by an electronic signing service (e.g., DocuSign) shall be effective and binding as original signatures. Each Party agrees that the electronic signatures of the Parties, whether digital or encrypted, are intended to authenticate this writing and to have the same force and effect as manual signatures.

 

14.11. Headings; Interpretation. The headings and section numbers in this Agreement are for convenience only and shall not affect its interpretation. References to “Sections” or “Exhibits” are to sections of or exhibits to this Agreement unless otherwise noted, and the exhibits to this Agreement (including Exhibit A (Client Acknowledgment) and Exhibit B (Offering Structure Summary)) are incorporated into and made part of this Agreement for all purposes. “Including” means “including without limitation.” Both Parties have participated in the negotiation and drafting of this Agreement, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

 

[Signature Page Follows]

 

27

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Amended and Restated Brand Advisory Agreement as of the last date set forth below.

 

COMPANY

 

Agentiq Sports 1 Series Ronny Cruz,
a series of Agentiq Sports 1 Series LLC

 

By and through its Manager,
Agentiq Sports, Inc.

 

  By: /s/ Zach Kurtz  
  Name:  Zach Kurtz  
  Title: Chief Executive Officer  

 

  June 12, 2026  
  (Date)  

 

  CLIENT
   
  /s/ Ronny Cruz
  (Signature)
   
  Ronny Cruz
  (Print Name)
   
  June 11, 2026
  (Date)

 

[Exhibits Follow]

 

28

 

 

EXHIBIT A

 

Client Acknowledgment

 

(See Attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A-1

 

 

CLIENT ACKNOWLEDGMENT

 

In connection with the Brand Advisory Agreement (the “Agreement”) between Ronny Cruz (the “Client”) and Agentiq Sports 1 Series Ronny Cruz, a designated series of Agentiq Sports 1 Series LLC (the “Company”), the Client acknowledges and confirms each of the statements below by placing the Client’s initials next to such statement. Capitalized terms used but not otherwise defined in this Exhibit A have the meanings given to them in the Agreement.

 

Instructions: Please place your initials in the space provided next to each statement to confirm your understanding.

 

1. By signing the Agreement, you may receive up to $1,200,000 USD as the Initial Advisory Payment.   RC
  Initial
   
2. In exchange for the Initial Advisory Payment, you agree to pay the Company the Brand Amount, which is equal to 10% of your Brand Income (as defined in the Agreement) during the Term.    RC
  Initial
   
3. For example, if the Company pays you the full Initial Advisory Payment of $1,200,000 USD and you earn $50,000,000 USD in Brand Income during the Term, you will pay the Company $5,000,000 USD in the aggregate (representing 10% of that Brand Income) as you earn that income.    RC
  Initial
   
4. If, for any reason (including, without limitation, the failure of the Series Offering to generate sufficient proceeds or the insufficiency of the Company’s other available funds), the Company has not paid the full Initial Advisory Payment by the Outside Date, the Agreement will not terminate and will remain in full force and effect; however, as provided in Section 8.3(a), no further Initial Advisory Payment will be owed to you, and the Brand Percentage will automatically adjust on a pro rata basis to reflect the portion of the Initial Advisory Payment actually paid to you, in each case as set forth in the Agreement. You understand that, following such adjustment, you will have no claim against the Company for any unpaid portion of the Initial Advisory Payment.   RC
  Initial
   
5. You will pay the Brand Amount to the Company through the Participation Account, the direct deposit of one hundred percent (100%) of your Brand Income, the automatic bi-weekly transfer of the Brand Amount, and the Account Control Agreement, and otherwise in accordance with the terms of the Agreement.   RC
  Initial
   
6. If you do not pay the Company when required under the Agreement, you will be in material breach of the Agreement, and the Company may seek to enforce the Agreement against you. If the Company is successful, you will be required to pay all amounts owed under the Agreement, including any unpaid Brand Amount, accrued interest on unpaid amounts, and reasonably incurred expenses of enforcement and collection (including reasonable attorneys’ fees and other collection costs).   RC
  Initial
   
7. You understand that, in the future, if you propose to transfer or assign any additional interest in any future earnings from the Principal Business that would constitute Brand Income, you must provide the Company with prior written notice of your intent to proceed with the opportunity, and the Company will have the right to evaluate that opportunity and will have a right of first refusal to acquire the additional interest in such earnings on substantially similar terms.   RC
  Initial

 

[Signature Page Follows]

 

A-2

 

 

IN WITNESS WHEREOF, the Client has executed and delivered this Exhibit A (Client Acknowledgment) as of the date set forth below, and hereby confirms that the Client has read and understood each of the acknowledgments set forth above and has initialed each such acknowledgment in the space provided.

 

  CLIENT
   
  /s/ Ronny Cruz 
  (Signature)
   
  Ronny Cruz 
  (Print Name)
   
  June 11, 2026
  (Date)

 

A-3

 

 

EXHIBIT B

 

Offering Structure Summary

 

(See Attached)

 

 

 

 

 

 

 

B-1

 

 

OFFERING STRUCTURE SUMMARY

 

The Company relies on Tier 2 of Regulation A under Section 3(b)(2) of the Securities Act of 1933, as amended, for each series offering. Each offering must be qualified by the SEC before sales may occur; qualification does not constitute approval of the investment’s merits. The aggregate offering limit under Rule 251(a)(2) is $75,000,000 in any rolling twelve-month period. Units may only be sold to “qualified purchasers” (accredited investors under Rule 501(a) of Regulation D, or non-accredited investors whose investment does not exceed 10% of the greater of their annual income or net worth). As a Tier 2 issuer, the Company is subject to ongoing SEC reporting obligations (Forms 1-K, 1-SA, and 1-U) and the offering is exempt from state Blue Sky registration requirements (subject to state filing and anti-fraud provisions) provided Units are sold only to qualified purchasers.

 

The issuer is Agentiq Sports 1 Series LLC, a Delaware series limited liability company. Each series is a separate legal entity with segregated assets and liabilities under Section 18-215 of the Delaware LLC Act; creditors of one series have no claim against assets of another. Units represent an investment solely in a particular series and its Brand Advisory Agreement—not in the Company as a whole. The offering is conducted on a best-efforts, continuous basis at $100.00 per Unit through Andes Capital Group, LLC (broker-dealer), with North Capital Private Securities Corporation as escrow agent, Continental Stock Transfer & Trust Company as transfer agent, and the Agentiq Sports online investment platform (www.agentiqsports.com) as the offering platform. The Operating Agreement permits the Manager to approve an alternative trading system (ATS) for secondary trading of Units; no public trading market currently exists.

 

B-2

EX1A-6 MAT CTRCT 12 ea029473701ex6-6.htm PROMISSORY NOTE OF AGENTIQ SPORTS 1 SERIES RONNY CRUZ DATED MAY 12, 2026

Exhibit 6.6

 

THIS NOTE HAS NOT BEEN REGISTERED FOR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE SECURITIES LAWSTHIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR OTHER APPLICABLE SECURITIES LAWS OR, IN THE ABSENCE THEREOF, AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. THIS NOTE IS SUBJECT TO THE TRANSFER RESTRICTIONS SET FORTH HEREIN.

  

CONVERTIBLE PROMISSORY NOTE

 

Note No. 1

Principal Amount: $350,000.00

Date: May 12, 2026

 

FOR VALUE RECEIVEDAgentiq Sports 1 Series RONNY CRUZ (the “Series” or “Series RC”), a Series of Agentiq Sports 1 Series, LLC, a Delaware series limited liability company (the “Company”), or its permitted assignees, hereby promise(s) to pay to the order of AGENTIQ SPORTS, INC., the Company’s Manager and manager of Series RC pursuant to its Certificate of Designation (“Lender”), or its permitted assignees, in lawful money of the United States of America and in immediately available funds, the principal amount of Three Hundred and Fifty Thousand & 00/100 Dollars ($350,000) (the “Principal Amount”), as set forth below in this note (this “Note”).

 

This Note constitutes the consideration payable to the Lender. The proceeds hereof will be used for Series purposes consistent with the Operating Agreement and applicable Series Designation, including funding Offering Expenses or Operating Expenses as determined by the Manager.

 

1. Definitions. As used in this Note, the following terms shall have the following meanings: 

 

Brand Advisory Agreement” means that certain brand advisory agreement entered into by the Series and Ronny Cruz, dated May 12, 2026.

 

Business Day” means every day other than a Saturday, Sunday, or day on which the banks in the State of New York are required or authorized to close in New York City. “Non-Business Day” means every day that is not a Business Day. 

 

Maturity Date” shall mean the date on which the earliest of the following occurs: (a) payment in full of the Initial Advisory Amount; or (b) termination of the Offering.

 

Initial Advisory Amount” shall mean the initial advisory amount payable pursuant to the Brand Advisory Agreement.

 

Person” shall mean any natural person or individual, firm, company, general partnership, limited partnership, limited liability partnership, joint venture association, corporation, limited liability company, trust, business trust, estate, other legal entity. 

 

Offering” shall mean the offering of units of membership interest in Series RC to be conducted by Series RC following the qualification of the Company’s offering circular contained in its Form 1-A filed with the Securities and Exchange Commission in accordance with and in compliance with the provisions of Regulation A under the Securities Act of 1933, as amended.

 

Offering Start Date” shall mean the date on which the Offering for the Series RC units commences.

 

 

 

 

2. Interest; Default Interest; Usury Savings. Except as otherwise provided herein, the unpaid Principal Amount shall bear interest at a per annum rate of 1.0%, computed on the basis of a 360-day year of twelve 30-day months, and payable on the Maturity Date or any permitted prepayment; provided that if any advance constitutes an Operating Expense Reimbursement Obligation under the Operating Agreement, the interest rate shall not be less than the Applicable Federal Rate then in effect for instruments of comparable term. Upon and during the continuance of an Event of Default, all outstanding amounts shall bear interest at a per annum rate equal to the rate set forth above plus 6.0%, to the maximum extent permitted by applicable law. Notwithstanding the foregoing, in no event shall interest or other amounts payable hereunder exceed the maximum lawful rate, and any amounts collected in excess thereof shall be credited against the remaining Principal Amount or refunded.

 

3. Repayment; Application of Offering Proceeds; Payment Waterfall. Subject to Section 4, the Series shall repay the outstanding Principal Amount and all accrued but unpaid interest from the net proceeds of the Offering within fourteen (14) days after the Maturity Date; provided, however, that no amount under this Note shall be due or payable unless and until either the Initial Advisory Amount has been paid in full or the Offering has terminated, whichever occurs first. If, before termination of the Offering, any closing of the Offering occurs in which the proceeds therefrom exceed the outstanding balance of the Initial Advisory Amount, the Series shall first apply such proceeds to payment in full of the Initial Advisory Amount and then apply such excess proceeds to the repayment of amounts due to the Lender under this Note. Thereafter, the Series shall pay all net proceeds of the Offering, as set forth in the Offering Statement on Form 1-A and the Offering Circular forming a part thereof, to the Series. During any period in which the Series’ payment obligations under this Note are stayed pending payment in full of the Initial Advisory Amount, interest shall continue to accrue on the outstanding Principal Amount and any accrued but unpaid interest in accordance with Section 2. The Company shall apply payments received under this Note in the following order: (a) fees, expenses and other amounts then due hereunder; (b) accrued and unpaid interest; and (c) outstanding principal. Payments shall be made in lawful money of the United States in immediately available funds to the account designated in writing by Lender.

 

4. Prepayment. Subject to Section 3 and except as otherwise provided in Section 12, the Series may prepay all or any part of the Principal Amount of this Note, together with accrued but unpaid interest, if any, at any time or from time to time on or after the Maturity Date without premium, or penalty of any kind whatsoever.

 

 5. Limited Recourse; Series Separateness; Non-Petition. This Note is an obligation solely of the Series identified herein, enforceable only against the assets associated with such Series, and not against the Company or the assets associated with any other series of the Company. Lender shall not seek, and shall have no recourse to, the assets of the Company generally or any other series thereof. Lender agrees that it shall not institute against, or join any other Person in instituting against, the Company or any series thereof any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding until at least one year and one day after all obligations hereunder have been paid in full.

 

6. Negative Covenants. Until all amounts owed under this Note are paid in full, the Company shall not, without the Lender’s prior written consent: (a) create, incur, or permit to exist any security interest, mortgage, pledge, charge, or other encumbrance on any assets of the Series, other than (i) a lien in favor of the Lender, (ii) a lien arising by operation of law that secures amounts not yet due, or (iii) a lien expressly approved in writing by the Lender; (b) incur any debt for borrowed money or any other debt evidenced by a note or a similar instrument that ranks ahead of, or equally with, this Note in right of payment; or (c) declare or make any distribution with respect to equity interests in the Series while any default under this Note has occurred and is continuing, or if making the distribution would cause such a default.

 

7. Use of Proceeds; Priority. The proceeds of this Note shall be used for Series purposes in a manner consistent with the Operating Agreement and the Series RC Certificate of Designation. Net proceeds of the Offering for this Series shall be applied to repay this Note only in accordance with Section 3.

 

8. Events of Default. The occurrence of any one or more of the following events shall be deemed an “Event of Default”: 

 

(a) The failure to pay any amounts when due hereunder and such failure continues for five (5) Business Days. 

 

2

 

 

(b) Breach by the Series of any other term of this Note and, if curable, such breach remains uncured for ten (10) Business Days after written notice

 

(c) The Series shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) make an assignment for the benefit of its creditors; or (iii) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property. 

 

(d) The Series shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States or any state or district or territory thereof. 

 

(e) A court of competent jurisdiction shall enter an order, judgment or decree appointing, without the consent of the Series, a receiver for the Series or of the whole or any substantial part of its property, or approving a petition filed against the Series seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state or district or territory thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within thirty (30) days from the date of the entry thereof.

 

(f) Under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Series or of the whole or any substantial part of their property, and such custody or control shall not be terminated or stayed within thirty (30) days from the date of assumption of such custody or control. 

 

(g) A final judgment or order for the payment of money, or any final order granting equitable relief, shall be entered against the Series and such judgment or order has or will have a materially adverse effect on the financial condition of the Series. 

 

Subject to Section 3, upon and during any Event of Default, Lender may declare all obligations under this Note immediately due and payable and may pursue any rights or remedies available at law or in equity, including obtaining a money judgment. At Lender’s option, any outstanding principal and accrued interest may be converted, in whole or in part, into Series membership interests on the same terms as the Offering. For the avoidance of doubt, conversion is an optional remedy and is not Lender’s sole remedy.

 

9. Governing lawTHE LAWS OF THE STATE OF DELAWARE, EXCLUDING THEIR CONFLICTS OF LAWS PROVISIONS, SHALL GOVERN THIS NOTE IN ALL RESPECTS, INCLUDING CONSTRUCTION, VALIDITY, TERMS, PERFORMANCE, AND WAIVER. Any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Note shall be brought exclusively in the Court of Chancery of the State of Delaware (and, if such court lacks jurisdiction, then the state or federal courts located within the State of Delaware), and each party irrevocably submits to such courts’ jurisdiction and waives any objection as to venue or forum non conveniens. In lieu of the foregoing forum clause, disputes shall be resolved by binding arbitration administered by the American Arbitration Association in Wilmington, Delaware in accordance with the AAA Commercial Arbitration Rules, with the seat in Delaware, as provided in the Operating Agreement.

 

10. Successors and Assigns. All of the covenants, stipulations, promises, and agreements in this Note contained by or on behalf of the Series shall bind its successors and assigns, whether so expressed or not. The Series may not assign this Note without the prior written consent of Lender. This Note may be transferred or assigned by Lender, in whole or in part, to any Person without the prior written consent of the Series, provided that any assignee agrees in writing to be bound by the limited-recourse and series-separateness provisions herein.

 

11. Headings; Construction. The headings of the sections of this Note are inserted for convenience only and shall not be deemed to constitute a part hereof. Words used herein of any gender shall be construed to include any other gender where appropriate, and words used herein that are either singular or plural shall be construed to include the other where appropriate. 

 

3

 

 

12. Payments. In any case where a payment of principal is due on a Non-Business Day, the Company shall be entitled to delay such payment until the next succeeding Business Day. Each payment or prepayment hereon must be paid at the address of Lender set forth below (or as otherwise notified to the Series in accordance with Section 9) in lawful money as therein specified and may be made at the Series’ election by the Series’ check, by wire transfer, or by bank or cashier’s check. Once due and payable in accordance with this Note, the Series’ obligations to make payments hereunder are absolute and unconditional and shall not be subject to any abatement, reduction, setoff, defense, counterclaim, interruption, deferment or recoupment of any kind.

 

13. Notices. Any notices required or permitted to be given under this Note by the Company to Lender or by Lender to the Company, as the case may be, shall be given in writing and shall be deemed received (a) when personally delivered to Lender at the address set forth below or to the Company at the address set forth below or (b) if sent by mail, on the third Business Day following the date when deposited in the United States mail, certified or registered mail, postage prepaid, to Lender at the address set forth below. 

 

14. Waiver and Amendments. Except as expressly provided in this Note, the Series does hereby waive presentment and demand for payment, protest, notice of protest and nonpayment, and notice of the intention to accelerate, and agrees that its liability on this Note shall not be affected by any renewal or extension in the time of payment hereof, by any indulgences, or by any release or change in any security for the payment of this Note. No provision of this Note may be amended, waived or otherwise modified unless such amendment, waiver or other modification is in writing and is signed or otherwise approved by the Series and the Lender.

 

15. Maximum Interest Rate. It is the intention of Lender hereof to conform strictly to applicable usury laws now or hereafter in force, and therefore all agreements between the Series and Lender are expressly limited so that in no contingency or event whatsoever, whether by reason of advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance hereof, or otherwise, shall the amount paid or agreed to be paid to Lender hereof, for the use, forbearance, or detention of the money to be advanced hereunder exceed the highest lawful rate permitted under the laws of the State of Delaware. 

 

16. Unsecured Obligations. The obligations of the Series under this Note shall be unsecured obligations of the Series.

 

17. Optional Conversion. At any time prior to repayment in full or the Maturity Date, Lender may, upon not less than ten (10) Business Days’ prior written notice, elect to convert all or a portion of the then-outstanding Principal Amount and all accrued but unpaid interest into a number of securities being sold in the Offering by the Series equal to (i) the sum of the outstanding Principal Amount plus all accrued but unpaid interest, divided by (ii) the offering price per security in the Offering.

 

18. Authority; No Consents. The Series represents that (a) execution, delivery and performance of this Note have been duly authorized by the Manager pursuant to the Operating Agreement and applicable Series Designation, including authority to issue evidences of indebtedness and to borrow money; and (b) no consent of Economic Members is required in connection herewith.

 

[Signature Page Follows]

 

4

 

 

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

  

COMPANY:

 

AGENTIQ SPORTS 1 SERIES RONNY CRUZ,
A DESIGNATED SERIES OF AGENTIQ SPORTS 1 SERIES, LLC

 

By: AGENTIQ SPORTS, INC., the Series RC Manager  

 

By: /s/ Zach Kurtz  
Name:  Zach Kurtz  
Title: Chief Executive Officer  

 

THE FOREGOING NOTE IS HEREBY

AGREED TO AND ACCEPTED BY THE UNDERSIGNED:

  

AGENTIQ SPORTS, INC.

 

By: /s/ Zach Kurtz  
Name:  Zach Kurtz  
Title: Chief Executive Officer  

 

5

 

EX1A-11 CONSENT 13 ea029473701ex11-1.htm CONSENT OF ARTESIAN CPA, LLC

Exhibit 11.1

 

 

CONSENT OF INDEPENDENT AUDITOR

 

We consent to the use in the Offering Circular constituting a part of this Offering Statement on Form 1-A, as it may be amended, of our Independent Auditor’s Report dated January 22, 2026 relating to the financial statements of Agentiq Sports 1 Series LLC as of December 31, 2025 and for the period from November 3, 2025 (inception) to December 31, 2025, and the related notes to the financial statements.

 

/s/ Artesian CPA, LLC

Denver, CO

May 21, 2026

 

 

 

 

 

Artesian CPA, LLC

 

1312 17th Street, #462 | Denver, CO 80202

p: 877.968.3330 f: 720.634.0905

info@ArtesianCPA.com | www.ArtesianCPA.com

 

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