American Gnuity Basic Terms and Conditions

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American Gnuity Basic Terms and Conditions

All participants must acknowledge and agree to the American Gnuity Basic Terms and Conditions prior to activating their online accounts.

American Gnuity Application Terms          

There is no fee to apply as a contestant on the American Gnuity reality TV show or for the accompanying online non-equity platform. Those who register have free access to attend one of four regional events to be held each season with information about the events located on our website and social media pages.

Non-Equity Funding Terms          

American Gnuity charges a 5% fee of the amount raised by non-equity contributions, much like the charges from many other crowdfunding sites. Project owners are also responsible for any and all online credit card fees (usually around 3.5%). If no money is obtained by the project owner, no 5% fee is charged. Entrepreneurs will determine must choose donation amounts, perks, and prices for the pre-purchase of their products. American Gnuity professionals are available tocan consult business owners during this process without any guarantees that the television and online audience will participate in funding their project.  

Equity Funding Terms           

American Gnuity goes beyond other crowd funding engines and provides a way for participants to raise equity capital fromtens of thousands of accredited investors from all over the country. To do so, the law requires that entrepreneurs Entrepreneurs wanting to allow accredited investors the opportunity to purchase a percent of their business have a 506c Reg. D must pay $19,900 for the Private Placement MemorandumOffering documen. Legal and preparation fees to create these documents and provide a third-party valuation are typically north of $35,000;American Gnuity offers these services to online applicants for$19,900, with financing options available for qualified applicants.

The top twenty television contestants (the season finalists) can choose to have this fee 100% financed. All other qualified participants will be offered 75% financing – with the amount financed being paid out of the first funds raised from the PPM. For businesses that have already created a legally binding 506c Reg. D Offering, we will reduce our fee to $7,900 which includes a full review of the Offering by an SEC attorney, the posting of the Offering and other essential documents on our website and a third-party VC valuation.

There will is a separate $199 administration fee to business owners for each signed Subscription Agreement with its investment commitment. This fee covers accreditation verification, escrow fees and online stock transfer fees. This fee only occurs with the commitment to invest from an accredited investor with an accompanying signed Subscription Agreement.

Project owners who choose not to offer any equity in their companies to the television and online audience can still participate with American Gnuity by utilizing our non-equity, marketing and business mentoring services.

Promotional & Consulting Considerations          

Throughout each season, American Gnuity will feature new and exciting projects that are posted on our website, but are not competing in the television series. During the pilot season there will be no fees associated with thesepowerful promotions.  The twenty finalistscompeting in the accelerator portion of the show will be asked to partner with American Gnuity 2014 LLC (AG 2014).  These companies will receive extended air timeand we anticipate that as a result of our marketing and mentoring efforts, participating businesses should enjoy substantial growth.

The partnership agreementwill assign Warrants equal to 2% to 10% Because of the exposure and assistance provided to these top 20 projects, these entrepreneurs will compensate Gnuity with a maximum of 10% of the increase in the value of their business to AG 2014. This percentage varies based on how many weeks the business remains on the show.Again, this is only a percent of the business’ increase in value. in stock. For example, if a company valued at a$1,000,000 enters the competition and remains in the accelerator portion of the show all eight weeks, becoming one of the three finalists and increases their valuation to $10,000,000 by the final episode; the company will issueWarrants to AG 2014 valued at $900,000 which is 10% of the increased valuation. 

The schedule for Warrants is:

Television Exposure Warrant Fee (Percentage of the Increase)
Weeks 1 & 2 2% from each of the 20 Finalists
Week 3 3% (total) from each of the remaining 12 Finalists
Week 4 4% (total) from each of the remaining 8 Finalists
Week 5 6% (total) from each of the remaining 5 Finalists
Week 6 8% (total) from each of the remaining 4 Finalists
Weeks 7 & 8 10% (total) from each of the remaining 3 Finalists