Investor's Memorandum of
Understanding and Equity Agreement
for Fluxx
This document serves as a comprehensive memorandum of understanding and equity agreement
between Fluxx, the blockchain project, and prospective investors purchasing Fluxx Tokens during
the private presale phase. It delineates the critical terms governing equity allocation, token purchase
limits, resale conditions, rights, and obligations of the Investor as they relate to their investment in
Fluxx tokens. The Agreement emphasizes transparent governance, investor protections, and clearly
defines legal and operational frameworks to ensure a secure and mutually beneficial partnership.
Investors are encouraged to review the following sections thoroughly to understand their rights,
responsibilities, and the equity structure tied to their token holdings.
by Fluxx Development.
Equity Holding Terms and Token-Escrow Relationship
Investors who purchase Fluxx Tokens during the initial private presale phase are granted equity
stakes in the Fluxx Project directly proportional to the volume of their Token acquisition as detailed
in this Agreement. Equity entitles holders to both profits and losses attributable to the payment
gateway income and any valuations accruing upon public listing on the stock exchange. This linkage
between Token ownership and equity incentivizes early engagement and aligns investor and project
interests.
The Agreement stipulates minimum purchase amounts to qualify for equity holdings: a minimum of
$1,000 worth of Tokens during the closed-door private presale and at least $5,000 during the open
private presale. Each $1,000 invested translates into a 0.1% equity share, establishing a transparent
and precise calculation basis for determining ownership percentage.
This arrangement ensures that equity stakes are clearly quantifiable and directly correlated with
investment volume, providing both parties clarity in their financial relationship and potential returns
from Fluxx's operational revenue streams and future valuation increases.
Token Purchase Limits and Approval
Procedures
To maintain an equitable distribution of equity and manage project risk exposure, individual
investors are capped at a maximum token purchase of $10,000 for equity holding without additional
approval. Should an investor wish to exceed this threshold, a formal written request must be
submitted to the Fluxx project team for review and consideration.
Upon approval, the maximum individual purchase cap for equity holding can extend up to $30,000
worth of Tokens. This tiered approach balances broad participation with the potential for strategic
larger investments, ensuring project governance retains oversight over substantial equity allocations
and mitigates concentration risk.
Investors exceeding the $10,000 baseline without prior approval will not be eligible for increased
equity holding benefits. These mechanisms exemplify the Project's commitment to prudent capital
governance and transparency in managing investor relations.
Token Sale Conditions and Partial
Investment Recovery
Token holders with equity stakes are granted the right to recoup partial investments by selling up to
25% of their Tokens at the payment gateway launch without reducing their equity ownership
percentages. This provision allows investors liquidity options while preserving their proportional
interest in the Project's equity pool.
Crucially, the sale of this Token fraction must occur directly back to Fluxx at the Token launch price,
which is fixed to guarantee profitable returns for investors. This mechanism is designed to foster
confidence by providing a secure exit option that yields immediate profit, minimizing risk for initial
investors.
Such terms demonstrate a balanced approach to investor incentives, combining potential long-term
equity gains with short-term liquidity assurances, enhancing the attractiveness of Fluxx¾s private
presale.
Investor Rights: Updates, Forums, and
Right of First Refusal
The Agreement secures privileged access for Investors to timely, first-hand updates regarding all
developments and upgrades within the Fluxx Ecosystem. This transparency is operationalized
through mandatory participation in quarterly investors¾ forums, providing a structured platform for
dialogue, progress reports, and strategic discussions.
Further, Investors are accorded the critical right of first refusal concerning new income streams and
business opportunities emerging within the Fluxx ecosystem that are made publicly available. This
right affords Investors priority consideration in expanding their involvement or capitalizing on
emerging projects, reinforcing their active status and influence within Fluxx¾s commercial ventures.
Collectively, these rights underscore Fluxx¾s commitment to ongoing investor engagement, fostering
a collaborative and informed relationship that aligns development momentum with investor
participation
Restrictions on Equity
Transfer and Token
Redemption
The equity interest granted through Token purchase is
expressly non-transferable, ensuring stable, controlled
equity ownership within the Fluxx Project. Should an
Investor decide to exit the investment, their Tokens may
only be sold back to Fluxx, thereby revoking the
corresponding equity holding.
This restriction is designed to preserve the integrity and
distribution of ownership among committed investors,
preventing unauthorized transfers or speculative trading
that might destabilize project governance or equity
calculus.
By centralizing equity revocation and Token buyback
authority with Fluxx, the Project safeguards its capital
structure from dilution and ensures orderly management
of investor turnover, important for maintaining regulatory
compliance and sustained investor confidence.
Governing Law and Dispute Resolution
This Agreement is governed by the laws of the specified jurisdiction, which provide the legal
framework for interpreting and enforcing its terms. Any disputes arising between Fluxx and the
Investor under this Agreement shall be resolved through arbitration, pursuant to the rules set forth
by the designated arbitration body.
Arbitration offers a confidential, efficient alternative to traditional litigation, streamlining dispute
resolution and minimizing potential disruptions to the Project operations and investor relationships.
This provision protects both parties by ensuring a neutral, binding process for addressing any
conflicts.
Investors are advised to carefully consider the jurisdiction and arbitration details as part of their due
diligence process when entering into this Agreement, as these elements critically impact legal
recourse and enforcement mechanisms.
Entire Agreement and
Investor
Acknowledgment
This document constitutes the entire Agreement
between Fluxx and the Investor, superseding all prior
communications, understandings, or agreements related
to the Token presale and associated equity holding. It is
comprehensive and legally binding upon signature from
both parties.
The Investor's act of purchasing Fluxx Tokens and
signing this Agreement confirms full reading,
understanding, and consent to all stipulated terms,
conditions, and obligations contained herein. This
acknowledgment protects both parties and formalizes
the investment relationship under clear legal and
operational standards.
Investors should retain copies of the signed Agreement
for their records and consult legal counsel if needed to
clarify any provisions or implications arising from their
investment commitment in the Fluxx Project.