Payments will be made quarterly from Funded Global to ILOEX (Initial License Exchange) to you. You will be required to list your bank details upon checking out, so that ILOEX can make the quarterly transfer. A report on the Net Revenues received on which the 10% is calculated will be provided quarterly. An independent audited report will be provided at the end of 3 years to confirm accuracy of payments made for the contractual period.

An ILO Buyer (Licensee) purchases a 3-year licence from the Listing Company, who grants the buyer the right to promote its products or services. The Licensee owns the license and can hold onto it or sell it on the ILO Exchange to another ILO Buyer.

Licensees can also qualify for a yearly royalty payment by promoting the Listing Company’s products or services to its business network and social media accounts.

ILO Licensees have 3 different ways to make money:

• Earn yearly royalties
• Hold the ILO for 3 years and receive the buyback
• Trade the ILO on the ILOCX.com Exchange at the current market price after the license has hid the mid point mark (1.5 years in)

Fees on transactions on the ILOexchange.com platform are paid by Funded Global.

An ILO is neither equity or debt because:

• The company isn’t selling ownership or shares in exchange for capital. It is selling Revenue in the form of a royalty payment which is earned by the ILO purchaser.
• It is not Debt because the ILO purchaser has purchased the license and the revenue stream.
• It is income to the company; since it has sold a license.
• Similar to Convertible Debentures – At the end of 3 years the company can repurchase the ILO units or the ILO unitholder may receive an offer to exchange for equity/shares for the units; if an offering of shares has been made prior to the repurchase or is being made at the time. Rather than paying of the Debenture the company must repurchase the ILO Unit.
• ILO units are a royalty or revenue stream where the purchaser can participate in the growth of the business and the potential return is not limited to an established percentage like a debt instrument or convertible debenture.
• ILOCX (Initial License Offering Contract Exchange) creates buyers for ILO Units; so they are liquid and do not have to be held for the entire 3 years. This is similar to equity/shares that can be sold.
• The ILO unit is paying a percent of the revenue stream and not from the profits. So the ILO owner receives payments regardless of whether the business is profitable or not in the beginning years. With equity/shares dividends are only paid when the business is profitable.
• Finally, if the business proves to be successful and profitable the ILO unit holder has the opportunity to exchange the ILO units for equity in the company.

The ILO Purchase is a Commercial Transaction: When buying an ILO the purchaser is buying a license and not a security. The ILO purchaser and owner is buying/selling a license in a commercial transaction on the ILO platform located in the UK in London.