TABLE OF CONTENTS for REVENUE ROYALTIES

Who Should Buy Royalties and Why Should They Do So?
The Investor’s Difference – Focusing on Company Revenues Versus Per-Share Profits
Profile and Questions Asked by Prospective Royalty Investors Regarding Royalty Issuers
Payment of Royalties
Royalties Are Particularly Appropriate for Use in Developing Countries
Royalties – the Better Way
“Always Seeking a Hedge” and What about Leverage?
Primary Reasons to Accept the Risk of Investing: Benefitting from Positive Valuation Change or Revenue Growth Participation
How Easy Is It to Buy a Royalty?
Can You Trust a Business Owner Who Is Willing to Sell a Part of His Business for Much Less Than the Predicted Future Value?
Are Royalties Best for You As an Investor?
Assuring Royalty Issuer Contractual Compliance for the Capital Protection and Benefit
of Royalty Investors
Why and How Angel Investors Should Invest in Early-Stage Companies
Considerations and Tools for Royalty Investment
What Do Royalty Investors Really Want from Pre-Revenue Companies?
The Challenge of Fairly Supporting and Profiting from Early-Stage Company Investment
Royalty Investor Due Diligence
Overcoming the Royalty Investor’s Inability to Influence Management.
Royalties Expose Angel Investors to Less Risk and Better Long-Term Results
Companies from Which Investors Should and Should Not Buy Royalties
Frequently Asked Questions Regarding Royalty Issuer Assured Return (REX-RIAR) Royalties
Securing Royalty Issuer Contractual Compliance by the Transfer or Assignment of
Assets
Possible Problems in Early-Stage Private Company Investment and Why Royalties
Are Better for the Investor
Royalties When Considering Risk of Ruin
Investor Royalty Protections
Investor Risk in Buying Royalties Can Be Significantly Reduced If Basic Principles Are Followed
Mind Fulfilling Benefits of Investing in Royalties Used to Enable Companies to Grow
and Benefit
Why Royalties Issued by Established Companies Have So Little Investor Risk of
Capital Loss
Protecting the Capital of Royalty Investors
Why It Is Difficult to Predict the Profitability of Privately-Owned Companies and Easier
to Project Revenues
Royalties Are Not Dividends and Dividends Are Not Royalties
Why Conservative Savers Seeking Higher Returns Are Better Served by Investing in Royalties
Business Owner Perspective
Reasons for Business Owners to Use Non-Equity Dilutive Royalties
How Royalties Benefit Business Owners
Internal Rate of Return Table:
Business Owners Offering Royalties to Obtain Growth Capital
Issuer Redemption Rights in the Royalty Agreement
Financial Intermediary and Other Fees Incurred in the Placement, Distribution, or Management of Royalties
Questions to Be Answered by the CEO of a Prospective Royalty Issuer
Persuading Business Owners to Use Royalties to Raise Growth Capital
Questions Asked by Business Owners Who Are Considering Using Royalties to
Raise Growth Capital
Funding Pre-Revenue Companies Using a REX-Structured Royalty
Using Revenue Royalties to Acquire Talent, Companies, or Other Assets
Royalty Financings for Pre-Revenue Companies with Great Potential
Why Some Business Owners Fail to Use Royalties in the Raising of Growth Capital
Getting What You Want for Your Company by Focusing on What Your Customers Want
The Royalty Advantage for Business Owners
How to Get Started with a Royalty Financing
Why Royalties Are the Better Way of Financing a Business
“Raising Capital for a New Business in the st Century Economy”
Structuring the Financing of a New Business
Is It All about Money?
Those Wishing to Sell Royalties to Investors Should.…
Analyzing the Risk and Reward of Starting a Business or Project
Business Plans – What They Should Do
Business Owner Presentation in Selling a Royalty
Financing Pre-Revenue Projects Using Royalties
Business Owners Using Royalties Should Seek More Funding Than Believed Required, But from Where?
Financing Companies in Low-Interest Rate Periods Using Royalty Compensated Bank Guarantees
What Are the Advantages of Selling a Royalty That Will Initially Result in a Decreased Profit Margin?
Royalties Can Be Used Effectively by Sophisticated Business Owners
Using Royalties in Acquisitions
Terms Successful Business Owners Will Naturally Want in a Royalty
What Can Go Wrong for a Royalty Issuer?
Is a Royalty-Based Financing Best for You?
Non-Equity Dilutive Financing Sought by Privately-Owned Companies Wishing to Sell
a Royalty
Considerations for the Seller of a Royalty
Are Royalties Best for You and Your Company?
Royalties Are the Most Natural and Best Means of Privately-Owned and For-Benefit Companies Raising Growth Capital
Negotiating and Valuing the Terms Wanted by Investors in a Pre-Revenue Start-Up
Crediting Royalties Paid for Redemption Right Calculation
Possible Terms for a
Royalty Issued by a Pre-Revenue Technology Issuer
Possible Terms for a Royalty Issued by a Pre-Revenue Technology Issuer
A Diversified Portfolio of Royalties, Issued by Companies with Increasing Revenues, Provides Increasing Benefit at Relatively Lower Risk
Royalty Fund Management Consideration
Thoughts for Managers of Royalty Income Funds
Why Investment Managers and Advisors Should Consider the Creation and
Management of Royalty Income Funds
Managing a Portfolio of Royalties
Royalties Are Better for Those Investing in Privately-Owned Companies and Also for Business Owners
Managing a Royalty Income Fund Requires Portfolio Investment Management
Practices and Skills
Royalty Fund Management Principles
Royalties and Impact Funds
Constructing a Portfolio of Royalties Issued by Local Companies
Possible No Cash Invested, Bank Loan Guaranteed, Royalty Income Fund
The mission of Royalty Income Funds Is to Preserve and Protect Investor’s Capital and Issuer’s Business Ownership
Organizing Community, Business Owner, and Investor Benefiting Royalty Investment Funds
The Profitability of Responsibly Managing a Royalty Income Fund for Investors
Creating a Royalty Income Fund by Acquiring Control of a Company with Liquefiable, Unproductive Assets
Royalty Income Funds Can Use Revenue Royalties to Target Specific Problems and Opportunities
Creating a Special Focus Royalty Income Fund (SFRIF)
Royalty “Put” or Guarantee Fund
Using the Skills and Experience of a Successful Lender to Become a Successful
Royalty Fund Manager – As Written for Real Estate Lenders and Arrangers
Investment Manager Questions about Starting a Royalty Income Fund
Community Guaranteed Royalty Income Fund
Introducing the Concept of Creating a Range of Royalty Income Funds
Contracts Required in Creating and Managing a Royalties Income Fund
Royalty Income Funds Would Make Sense for San Diego Native American Tribe Investment
Why Royalty Income Funds May Be Viewed Negatively
The Role of the Royalty Registrar and the Issuance of Royalty Units
A Diversified Royalty Income Fund Should Consider Using Leverage
The Ideal Royalty, from the Investment Manager’s Perspective
How and Why a Royalty Income Fund Using the REX Patented Approaches Can
Offer a Money-Back Guarantee
Investing in a Royalty Income Fund
Would Investors Be Attracted to a Royalty Income Fund with These Attributes?
The Income Focused Investor’s Advantages of a Royalty Income Fund
Forming Your First Royalty Income Fund
What’s Needed to Start Royalty Income Funds
Royalty Financing & Investing: Privately-Owned Growth Companies As Prepared for
a Major Investment Management Company
General Interest to Both Investors and Issuers
How Much Do You Know about Investing in or Financing Businesses Issuing
Royalties?
Could You As a Business Owner Answer These Tough Investor Questions?
Royalties Can Be Considered “Asset-Backed Securities” As the Issuers of a Royalty Contract Sell a Percentage of Their Revenues to Investors for an Agreed Period
Why I Believe Royalties Will Become a Standard Approach in Both Investing and Financing
Royalties Are Essentially User Fees and User Fees Are Based on Use
Can Royalties Be Convertible to Equity or Have Options to Buy an Agreed Amount of Issuer’s Stock?
Financing Pre-Revenue Companies – Royalties Versus Equities
Ten Questions to Determine If Investors Are Interested in Buying a -Year, Non
Equity Dilutive, Redeemable Royalty
Royalties and Regret
Understanding the Royalty Issuer Assured Return (RIAR)
Should Royalty Investors and Companies Pay Fees and Commissions and, If So, to Whom?
What’s Good and Bad about Revenue Royalties
Considerations and Tools for Royalty Investment
Data Needed to Create a Possible Royalty Financing
University and Other Non-Profit Research Institutions Use of Royalties in Project Financing
Discovering Which University Research Projects Will Be Licensable and Should Be Financed Using Royalties
Tax Issues for Royalty Issuers and Investors
Flippers Versus Keepers – at Times Earnings Don’t Matter
Will Venture Capital Firms Ever Embrace Royalties?
It Is Better to Contribute a Portfolio of Royalties Than Cash as Royalties Provide a
Greater and Longer-Term Benefit
The Natural Enemies of Royalty Financing
Using Royalties to Rescue a Failed Equity Offering
“If It Works” Questions for Inventors Seeking Royalty-Based Development Funding
Why Chinese and Other Investors Make a Mistake in Buying Stock in U.S. Privately-Owned Companies
Helping Churches and Other Community Organizations Assist Local Businesses
Using Royalties
Almost All Transactions Using Royalties Are Socially Constructive and Create
Community Value
Comparing Royalties to Other Investments
Comparing Rates of Return and Royalties
My Royalties Wish List
Helping Non-NASDAQ Publicly Traded Zombie Companies Go Private
Constructive Royalty/Equity Swaps – Undoing Mistakes and Taking Advantage of Circumstance
Using Revenue Royalties to Acquire and Market Assets
When “Reported Revenues” Are More Appropriate Than Achieved Revenues
Proposal for Royalty Investor Instruction and Investment Opportunity Exposure
Initial Questions Royalty Issuers Should Expect and Answer
Questions for Companies Nominated for Further Negotiations Regarding Terms of Royalties to Be Purchased by the Fund
Personal and Company Royalties
The Reasons VC Firms Should Be Buying Royalties from a Range of Interesting Companies
Needing Funds to Develop a Product or Service Is Not a Weakness, It Can Be an Investor’s Opportunity
Royalties Meet the Need for Fiduciary Comfort
Royalties Issued in Pre-Revenue Companies Make Sense for Both Investors and
Issuers
Why -Year Royalties Are Likely to Be Redeemed Prior to Maturity
Royalty Investor Protective Terms Are Also in the Royalty Issuer’s Best Interest
Non-Traditional Uses for Royalties
What Can Go Wrong in Royalties Used to Finance or Invest in a Business
Using Multiples of Cost as a Measure of Royalty Investment Performance
Internal Rate of Return Table
Valuing Royalties Post-Issuance
Possible Due Diligence for Royalty-Based Transactions
Possible Discussions and Possible Solutions
Documentation Relating to a Royalty Transaction
The Royalty Forum
Investors Financing Businesses with Royalties: What’s Right and What’s Wrong?
What’s Fair and What’s Unfair?
Private Company Investing – Equity Versus Royalties
Doing Well by Doing Good
Development Potential Resulting from Encouraging Donors to Contribute Royalties
and the Associated Payment Income
Royalty Related Administrative Service Functions
REX Royalty Writings and Calculators
Terminating a Business with Honor and Dignity
Reasons for Business Owners and Investors NOT to Use Royalties
Should a Royalty Investor Use Leverage to Increase the Return?
Using Royalties to Become the World’s Leader in Private Company Financing and
Income Investor Satisfaction
Larry and Barry Dialogues
Larry and Barry as Investors
Larry and Barry Assess Potential for a Royalty Seeking Company
Larry and Barry, As Investors, Exit Planning for a Royalty REX-PV.com
Larry and Barry, As Investors, Considering the Advantages of Royalty Issuer Assured Return Royalties
Larry and Barry, As Royalty Investors, Consider Appropriate Penalties for Scaled
Royalties Revenue Shortfalls
Larry and Barry, As Investors, Reviewing a Private Company Investment
Larry and Barry, As Investors, Question Why They Should Buy a Royalty If It Can Be Redeemed If and When the Issuer Becomes a Real Winner
Larry and Barry Buying Royalties from Mature Companies
Larry and Barry As Business Owners
Larry and Barry Using REXScaledRoyalties.com
Larry and Barry Considering REXdebt-shareRoyalties.com
Larry and Barry Discuss the Cost of Royalty Funding
Larry and Barry Analyze and Learn from Losing
Larry and Barry Consider Both Investing in a Royalty Income Fund and Selling a
Royalty to Raise Growth Capital
Larry and Barry Consider Selling a Royalty to Finance the Acquisition of a Competitor
Larry and Barry Wondering Why Royalties Are Not Already the Standard Way of
Financing Companies
Larry and Barry Discuss a Bad Idea Proposed by Royalty Investors for the Terms of a Royalty
Larry and Barry on Recapturing Equity and Regaining the Advantages of Being Privately-Owned
Larry and Barry, as Business Owners, Reviewing a Private Company Investment
Larry and Barry Consider Using Royalties to Sell Their Business
Larry and Barry Using Royalties in Making an Acquisition
Larry and Barry Using Royalties for Their Company’s Benefit
Larry and Barry As Larger Company Owners Who Have Acquired a Smaller Company
with an Outstanding Royalty
Larry and Barry, As Business Owners, Consider Using a Redemption Right
Larry and Barry on the Bad Choices Made by So Many Early-Stage Private Company Owners
Larry and Barry General Interest
Larry and Barry Explore “What’s Wrong with Royalties”
Larry and Barry Present Royalties to an Aggressive and Sophisticated Investor
Larry and Barry Present Royalties to a Practical Owner of a Successful Business
Larry and Barry Present Royalties to a Cautious Institutional Investment Manager
Larry and Barry Discuss the Folly of Belief
Larry and Barry Consider Starting a Royalty Income Fund
Larry and Barry on the Stupidity of So Many Early-Stage Private Company Investors
Larry and Barry Discuss How Debt Plus a Modest Royalty Can Be Best for Both
Business Owners and Investors
Larry and Barry Discuss Fees Incurred in Buying and Selling Royalties
Larry and Barry Review the Mistakes Made in Buying and Selling Royalties
Revenue Royalties: General Interest
Highly Speculative Royalty Financing of Early-Stage, Pre-Revenue, Technology
Oriented Companies
Financing a New Concept through the Use of Royalties
The Difference in Deciding to Buy a Royalty As Opposed to a Stock
Business Owner’s Perspective
Royalty Terms Can Be Scaled to Reflect the Revenues Achieved Versus the
Revenues Projected
Protecting the Interests of Royalty Investors
Donation of Royalties to Non-Profits by Royalty-Issuing Companies
Is It Better to Contribute a Portfolio of Royalties to a Non-Profit Given That Royalties Provide Greater, Longer-Term Benefit?
Advantages of Royalties in Financing a Business
Why Royalties Are the Better Way for Business Owners to Finance Their Company
Why Royalties Issued by Early-Stage Companies May Not Be Considered Attractive
and What to Do about It
Royalty Investors Getting Paid the Royalties Due
Analytics
Royalties – Questions and Answers
Financing for Early-Stage, Women-Owned, Scientific Research Companies
What’s Good and Bad about Revenue Royalties?
Who Profits from Royalty Creation, Management, and Transactions?
Royalty Investing and Financing
Use of Royalties in University Project Financing
Creating a Royalty Exchange
Atychiphobia: Fear of Failure, and Achievemephobia: Fear of Success
Using Royalties to Provide and Profit If the Use of the Funding Will Quickly Generate Significant Revenue Increase
Arthur’s Ancient Arabic Sayings
Proposal for a Possible Future Annual REX Royalty Use Competition
Proposal for a Possible Certified Royalty Advisors (CRA) Program
Conversation with a Venture Capitalist: Possible Discussions and Solutions
Are Venture Capital Firms Ever Likely to Embrace Royalties?
Is It a Good Idea, if Possible, to Borrow Money to Buy Royalties?
Why Is It Difficult to Predict the Profitability of Privately-Owned Companies and Easier to
Project Revenues?
Contractual Agreements Which Can Be Created As Models for Use in Royalty Transactions
Financial Service Organizations Can Use Royalties As a Profitable Extension of Their Business
Why Royalties Will Ultimately Become a Standard Approach in Both Investing and Financing
Proposal for a Future Weekend Workshop for Royalty Issuers, Investors, and
Investment Fund Managers