FAQ

Q: Who are the parties to the agreement? A: The contract is between AthleteGEM™ LLC (AthleteGEM™) and the Athlete (individual). The agreement starts on day of submission with signature. Q: What is the main purpose of the agreement? A: The purpose is to collaborate in creating unique, limited-edition diamond collectibles, utilizing the Athlete's name, image, and likeness (NIL), and to develop signature diamond products that reflect the Athlete's legacy.

Q: Is this agreement exclusive? A: No, this agreement is non-exclusive. Both AthleteGEM™ and the Athlete are free to collaborate with others, provided it does not interfere with the obligations of this agreement.

Q: What are the objectives of this collaboration? A: Create unique, limited-edition diamond collectibles. Use the Athlete's NIL (name, image, and likeness) in promoting the collectibles. Celebrate the Athlete’s legacy through signature diamond products. Q: Who is responsible for product creation and design? A: AthleteGEM™ will oversee design and production. The Athlete retains full creative control over the designs, ensuring the final product reflects their identity and values.

Q: How long does the agreement last? A: The contract has an initial term of one (1) year, starting on 12/18/2024. After the first year, the contract can be renewed yearly. Renewal requires written consent from both parties, and discussions must begin 90 days before the current term ends. Q: What is the geographic scope of the agreement? A: The contract grants worldwide sales and promotion rights. This means the products can be marketed, sold, and promoted anywhere globally.

Q: What is the base royalty rate for the Athlete? A: The initial base royalty rate is 20% of net revenue generated by the signature diamond collectibles. Q: Are there tiered royalty rates? A: Yes, the royalties are structured in tiers: Base Tier (0 - $199,999): 20% royalty. Growth Tier ($200,000 - $499,999): 25% royalty. Expansion Tier ($500,000 - $999,999): 30% royalty. Premium Tier ($1,000,000+): 35% royalty. Q: How is net revenue calculated for royalties? A: Net Revenue is calculated as: Gross Revenue minus the following: Production Costs: Capped at 30% of Gross Revenue. Marketing Expenses: Capped at 20% of Gross Revenue. Product Returns: Capped at 10% of Gross Revenue. Q: Are the royalty tiers applied incrementally? A: Yes, royalties are calculated incrementally, with the royalty rate increasing once the total revenue crosses into a higher tier. Q: How often will royalty reports be provided? A: Monthly reports will be provided, detailing the breakdown of net revenue and the calculation of royalties. Q: How are tier calculations handled? A: The tier calculations are reset annually, meaning each year starts fresh for royalty purposes. Q: Are there any performance bonuses? A: Yes, performance bonuses can be awarded for: Milestone achievements. Unique design collaborations. Social media engagement metrics. Quarterly performance reviews (process to be agreed upon mutually). Potential additional marketing support.

Q: Who owns the intellectual property (IP) rights? A: The Athlete retains full ownership of their personal intellectual property (e.g., name, likeness). Both the Athlete and AthleteGEM™ will have joint ownership of any new trademarks created for the AthleteGEM™ collection. Q: Can the Athlete use AthleteGEM™ designs? A: Yes, the Athlete can use AthleteGEM™ designs for personal marketing. However, any promotional activity must be approved by AthleteGEM™ and must align with the Athlete’s brand image.

Q: Are there compliance requirements for NIL usage? A: Yes, the agreement follows NCAA and professional sports regulations regarding NIL. If these guidelines change significantly, either party can terminate the agreement. Q: What promotional commitments does the Athlete have? A: The Athlete agrees to: Social media mentions promoting the products. Participate in limited product launch events. Provide approved images for marketing and promotional use. Q: Does the Athlete get paid for these promotional activities? A: No, the Athlete is not paid directly for promotional activities. However, these efforts are part of the overall revenue-sharing structure. Q: Who controls the promotional efforts? A: AthleteGEM™ has non-exclusive rights to use the Athlete's NIL for promotional purposes, but all promotions must be pre-approved by the Athlete. These promotions must align with the Athlete’s image and personal brand.

Q: How can the agreement be terminated? A: Either party can terminate the agreement with 60 days’ written notice. However, any ongoing projects at the time of termination must be completed. Q: What happens to the rights after termination? A: Upon termination, all rights related to the Athlete’s intellectual property and name/image/likeness return to the Athlete.

Q: What extra benefits does the Athlete receive? A: The Athlete will receive: Wholesale pricing for personal jewelry purchases (wholesale + 15%). Access to AG-NETWORK vendors.

Q: Which state's law governs this agreement? A: The agreement is governed by the laws of Arkansas. Q: Can the terms of the agreement be changed? A: Yes, but any changes must be agreed to in writing by both parties. Q: Should the Athlete seek legal advice? A: Yes, the Athlete is strongly encouraged to seek independent legal advice before signing the agreement.

Q: What does indemnification mean? A: Both parties agree to protect each other from losses caused by: Breach of contract. Intentional misconduct that is proven in court. Violations of NCAA or professional sports regulations. Q: What are the limits on indemnification? A: The total liability for indemnification is capped at 100% of the annual contract revenue. The indemnification period is the contract term, plus an additional six months. Q: How long does the party have to notify the other of a potential claim? A: The party must provide written notice of a potential claim within 30 days of discovering it. Q: How long does the alleged breaching party have to address a breach? A: The breaching party has 15 business days to fix any alleged breach after receiving notice.

Q: How are disputes resolved? A: The parties will first attempt to resolve disputes through good-faith negotiations. If these negotiations fail, the next step is mediation before resorting to legal action. Q: Who pays for mediation? A: Mediation costs are split equally between the parties, unless otherwise agreed upon.

Q: How is the agreement finalized? A: The agreement is finalized when Athlete sign via the website form, indicating that they have reviewed and understood the terms.

Licensing Agreement, Not a Partnership: This is a standard licensing agreement. The success of the sale of your Signature Diamond is primarily in your hands. AthleteGEM builds the universal brand, provides authentic product, and adds credibility.

Answer: No, your royalty will never be reduced. Once your royalty percentage is set based on sales volume, that is the percentage you will continue to receive, regardless of discounts or promotions.

Answer: Royalties are based on net revenue, which is the gross revenue minus capped expenses: Production Costs: Capped at 30% of gross revenue. Marketing Expenses: Capped at 20% of gross revenue. Product Returns: Capped at 10% of gross revenue. Royalties are calculated incrementally across revenue tiers. You will receive monthly breakdowns of expenses to ensure transparency.

Answer: AthleteGEM™ plans to grow its marketing presence gradually through public relations and mainstream media channels. As we move through the initial cohort of athletes, we will scale efforts. We will collaborate with athletes to provide marketing materials and will share diamond-related assets for your personal promotion. However, you will have full control over your brand and personal marketing strategies.

Answer: AthleteGEM™ focuses on enhancing the AthleteGEM™ brand as well as amplifying the athlete’s personal brand through high-quality Signature Diamonds. While AthleteGEM™ builds general awareness, the athlete’s personal marketing efforts are crucial.

Answer: If you wish to design bespoke jewelry using your Signature Diamond, there may be upfront costs for the design process. We will collaborate digitally, using CAD modeling to visualize the jewelry before production. These costs range from a few hundred to a few thousand dollars, depending on the platform used. This upfront investment ensures the athlete's personal preference in design.