Offering of Licensing Agreements

PD3 at times selects companies to consider an investment into seed and growth companies. Our reason for doing this is to follow a model that has us working with a company for the first 25% of their product launch window. Between 25% and 50% of their work calendar, if all parties are in agreement we will consider having a convertible debt issued for a ratio to be determined. Typically these ratios will include a 70/30 to 50/50 split of the cost of labor or productions during this second phase of the product launch calendar. Convertible debt is debt that PD3 has the options of converting into equity into the company at a predetermined level based on the expected budget and growth of the company as well as the level of debt to be converted.

Companies who continue to work with PD3 and who wish to have an equity investment in their company in exchange for labor by PD3 will then enter into negotiations at the 50% mark of the product launch. At mutually agreed levels, PD3 will convert debt for the second phase and establish a work to equity ratio for the remainder of the project.

This model is a guideline for our typical work to equity mechanism but each agreement requires customization and good faith negotiations by all parties involved.