Component 1: Equity Share Agreement

DISCLAIMER: This documentation is intended to provide a summary overview only; the details are discussed in full in the actual Equity Sharing Agreement (ESA), and under some circumstances, may conflict with the generalizations described herein. If there is any inconsistency between this documentation and the contents defined in the actual ESA, then the provisions defined in the formal ESA shall supersede any content described henceforth.

The Equity Sharing Agreement (ESA) is the centerpiece to how Tadaima Co-Ownership works. It is responsible for being the core agreement which co-owners bind themselves via the Assumptions and Release of Obligations Form to which forms the co-owner chain. It provides the covenants and entitlements that each party to the ESA is due or expected to uphold. And lastly, it safeguards its own integrity with a Performance Security Deed to ensure each party acts according to its covenants and entitlements. These functions together, is what makes, by and large, Sequential Co-ownership possible. Let’s Dive into detail about what all the ESA entails.

ESA Covenants and Entitlements

The ESA also defines what each party is responsible for and what rights they have. This is by and large the majority of what the body of the document explains. It covers a lot of what the expectations are of any individual partaking in Tadaima Co-ownership, and what to expect from it, but doesn’t include all aspects entirely of what co-ownership looks like. What is defined is mostly what are considered critical elements of Co-ownership. For more detail on all things that could come about during Co-Owning, please checkout the section Life as a Co-Owner. To then go over at a high level, the ESA has 6 main sections:

• Buyer Covenants During Ownership Period - This section essentially establishes that a Buyer (someone who want’s to buy-in as a co-owner) agrees to be responsible for the property just as a normal homeowner of the property would be, for their duration in the property, otherwise know as their ownership period. Some of which are things like, being responsible for maintenance and overseeing maintenance of the property, making sure mortgage, HOA, property taxes are all paid, and to report to Tadaima any noteworthy incidents that impact the property.

• Buyer Covenants For Termination - This section goes over what a Buyer agrees to do when they’re looking to move out, or if they’re the last co-owner in the chain, what they agree to do to make sure all prior owners get their portion of their investment. If they’re looking to move out, it just defines what they agree to allow Tadaima to do on their behalf and how they will cooperate to help find the next co-owner. If they are the last co-owner in the chain when the ESA ends, the ESA explains the options they have, how to preform them to wrap up the ESA, and lastly make’s sure each prior owner get’s their portion.

• Buyer Covenants For Tadaima Fees and Other Amounts Owed to Tadaima - This Section simply explains what a given Buyer is expected to Pay to Tadaima, and in response to what events is such a payment required, payment terms essentially.

• Tadaima Covenants - In exchange for monetary compensation as outlined in the prior section, the Tadaima covenants are the responsibilities Tadaima will uphold on behalf of the Buyer and all previous co-owners. Simply put, Tadaima will be responsible for accurate accounting of the ESA, reporting and notices to their prior co-owners, and Tadaima’s responsibilities for enforcement if something goes wrong during the co-ownership period.

• Default - Now all that said all the prior sections, the Default section essentially goes over what to do if something goes wrong in the prior sections, and it defines what’s known as the Option Price. The Option Price is the price that co-owners will handoff the property amongst one another, but it’s also the basis at which Tadaima reserves the right to reclaim the property at, in the event of default. And in the event of default how Tadaima will try to resolve the situation with the current co-owner or by going ahead to market the property publicly to solicit a new buyer to become a co-owner and resolve the current solvency issue.

• Prior Owner Rights - And lastly, this section is just for anyone who was a prior owner to the property, but no longer currently resides in it as a co-owner, but still has an interest in the ESA. It goes over their requirement to provide up-to-date contact information, so Tadaima can properly keep them informed, and let’s them know the risks of letting a buyer assume responsibilities and join as a co-owner.

These sections together, cover the entirety of the ESA and its contents and function.