Digital Client Onboarding & Legal Flow

These Platform Terms of Administration ("Terms") govern your use of the SplitSecond Royalties LLC ("Company," "we," or "us") administrative, tokenization, and payout platform. By creating an account, registering your assets, and utilizing our white-label business portals, you ("Client" or "you") agree to be bound by these Terms.

1. Scope of Administration Services

SplitSecond Royalties provides pre-engineered business application solutions to automate the ingestion, matching, and distribution of intellectual property, mineral, and trademark royalties. Client may register digital assets, configure automated payout split sheets, and monitor cleared proceeds in real-time.

2. Zero Upfront Setup Costs

There is no cost to register your account or onboard your portfolios onto our platform. The Company does not charge setup, database, or software licensing fees directly to B2B Operating Partners or Rights Owners. Platform operations are funded on autopilot through integrated, ledger-level transaction schedules.

3. Redirection of Revenues & Letters of Direction (LOD)

To activate your automated payout distributions, you must execute a legally binding Letter of Direction (LOD) authorizing the redirection of your gross revenue payments from your current distributors, performance rights organizations, or operating clearing houses directly to the Company's designated clearing coordinates. The Company cannot initiate payout distributions until cleared funds are received at our gateways.

4. Payout Distribution Waterfalls

4.1 Master Sound Recording & Physical Asset Net Splits — All cleared master and physical revenues received by the Company are instantly converted to secure digital dollars and distributed entirely fee-free to primary participants according to the following protocol-level waterfall:

• The Owner / Rights Holder: 35% Net Split (Locked, Fee-Free, and Untouchable).
• The B2B Partner (Operating/Recording Studio): 15% Net Split (Locked, Fee-Free, and Untouchable).
• SplitSecond Royalties: 35% Net Corporate Platform Cut.
• The Project Backer Pool: 15% Net Split (programmatically bifurcated on-chain: 12% is routed directly to active investor wallets as recurring net yield, and 3% is swept into the Company's platform reserve wallet to fund system hosting, wallet scaling, and database maintenance on autopilot).

4.2 Composition (Publishing) Administration splits — For underlying musical work copyrights, the Client designates the Company as its Publishing Administrator. Under this arrangement:

• The Company takes zero copyright ownership and acts solely as an administrative collection and metadata-matching agent.
• The songwriter/creator receives exactly 80% of all collected mechanical and performance royalties directly to their account.
• The Company retains a flat 20% publishing administration fee of composition revenues to cover registrations, matching metadata, and global collections.

5. Technical Ingestion, Hashing, and Storage

White-Glove Setup: Upon receipt of your metadata and standard spreadsheets, our delivery team will encrypt your files with AES-256 and anchor their unique SHA-256 cryptographic hashes directly to the XRP Ledger within 48 hours to prove unalterable provenance of your legal rights.

Underwriting Filter: Under rolling digital platform policies, the Company integrates an automated filter that screens out and excludes non-performing, under-threshold assets (specifically, music tracks averaging under 1,000 rolling annual streams) to protect capital stability and maximize yield.

6. Active Wallet Operations & Transaction Fees

Client accounts are provisioned with secure, non-custodial Multi-Party Computation (MPC) wallets. Client retains full ownership and control over their cleared yields, with the ability to sweep funds, execute peer-to-peer transfers, and route custom splits to collaborators. To maintain system velocity, the platform bills a flat volume fee of 5 basis points (0.05%) on asset creation, contract alignments, and secondary trades.

7. Account Termination and Offboarding

You may terminate your account at any time upon 30 days' written notice. Upon termination, you must submit a counter-LOD to your distributors to redirect your cash flows back to your personal coordinates. Within 30 days of termination, we will provide you with all decrypted files and historical transaction logs in a simple, standardized text format, programmatically close your sub-tenancy portals, and deactivate your split sheets.

I have read and agree to the SplitSecond Royalties Platform Terms of Administration.

LETTER OF DIRECTION (LOD) — ROYALTY REDIRECTION

Date: [System Date]
To: [Distributor, Registry, PRO, or Operator Name]
From: [Client Corporate Name]

This Letter of Direction serves as our formal, irrevocable authorization and instruction regarding the routing of all royalties, license fees, streaming proceeds, and performance revenues generated by our registered assets, catalogs, and properties administered under Account ID: [User Account ID].

1. Redirection of Payments

You are hereby authorized and directed to route 100% of our monthly gross revenue shares, cash balances, and performance distributions generated by the assets outlined in Schedule A directly to our designated administrative utility, SplitSecond Royalties LLC, using the following clearing coordinates:

Clearing House Name: SplitSecond Royalties LLC
Direct Wire / ACH Coordinates: [SSR Gateway Banking Details]
System routing ID: [Regulated Digital Gateway Partner Identifier]

2. Effective Term & Duration

These payment instructions shall take effect immediately and remain in full force and effect until you receive a formal, mutually executed release of administration signed in writing by both SplitSecond Royalties LLC and the undersigned.

3. Data Sharing Authorization

You are further authorized to provide SplitSecond Royalties LLC with direct API access, or monthly digital statements (CSV/unstructured formats) of our royalty accounting records to support and verify the automated settlement of our accounts on autopilot.

IN WITNESS WHEREOF, the undersigned has executed this Letter of Direction as of the date first written above.