Award Election Proposal

And how PureEnergySystems can be self-funded in part

(This is a brainstorm document, not a final statement)

Proposed by Sterling on 11/19/03

Preface Note:
The following proposal will need to be reviewed carefully by someone familiar with SEC provisions.  The following entity should be an international guild.  Perhaps we could even set up the jurisdiction of this entity as being a common law jurisdiction, thereby bring it into the fore.

Related Site:

halfbakery.com - submit an idea, have it voted on by others as to its feasibility.

Voting/Investing/Donations Toward Each Entry -- Award Election Process

1. Each user of the site (visitors, administrators, inventors, etc.) will have an opportunity to register and vote for what they believe to be the best idea(s).
2. Each user can put forth an "investment." (see note below about Investments).
3. Each user can put forth a "donation" toward an entry. (see note below about Donations).
4. Users can change their votes and investment/donation amount up until the deadline for voting, prior to award selection.
5. Entry submitters can vote for and invest/donate in their own entry.  (Entrant's contribution will not count more than 1/2 of the amount invested and/or donated by other users)
6. Award will be weighed by the following criterion:
   1. 15%: Peer review by Field-Professional Judges elected by the users.  These judges will state before-hand which technology they are going to elect.
   2. 15% Panel of Judges/Engineers provided by PureEnergySystems.  This panel will also state before-hand which technology they are going to elect
   3. 15% Number of votes.  An individual user has 1 - 10 votes depending on their standing in PureEnergySystems.com
   4. 20% Amount invested
   5. 25% Amount contributed toward entry. (weighed the most, to encourage this the most.)
   6. 5% Legal panel elected by users to determine uniqueness of idea.

Schedule (6 month voting cycle)

Repeated every 6 months.

• Month 1:1 - 2:15 entries received; votes, donations, "investments" taken.
• Month 2:15 - 5:31 no more entries; but users may vote, donate, and "invest," and can switch from one entry to another (with exception of "donations," after day 2:31).
• Day 2:31 - deadline for removing donations or changing donations from one entry to another.  Hereafter, all donations are final.
• Day 3:31 deadline for "investment dumping" from non-1,2or3rd award winner from previous round.
• Day 4:15 legal panel gives its opinion of uniqueness of top five contestants as of Day 2:31.
• Day 4:31 judges/panel declare which technology they elect.
• Month 5:1 - 5:31 users make final selections, via votes, donations, and "investments."

Awards

Each contestant (entrant) in each award round receives the contributed amount minus 15%.  10% goes toward PureEnergySystems administration.  5% goes toward the legal panel.  The amount "invested" is not refunded if the technology is not purchased by a final buyer.

Technology Purchases

1. A company/entity (hereafter "the company") may purchase an awarded technology at the price set by the combination of donations and investment money.  50% of the purchase price goes toward PureEnergySystems to finance its operation (e.g. compensate legal, engineering, administration).
2. The company shall provide a royalty of not less than 3% to the inventor, if the idea is shown to be uniquely the purported inventor's.
3. The company has the onus of doing a full legal investigation into any possible patent infringements.
4. The company shall adopt all investors into its contract terms, and
   1. give them first option for stock purchases, proportionate to the amount they invested during the election process.
   2. count their investment amount during election at a rate of 2x the stock price.
5. The technology remains an "open source" technology for future development, but may not be utilized by another company for profit.

Rollover

If a technology entry is not purchased within six months of its award, it can be rolled over into a "leftovers" category, that has equal standing with new entries, marked "leftover," or "leftover x n" where n is the number of times it has been a "leftover."  The entrant or a user who "invested" in the entry may roll it over.  The funds "invested" in entries that are not rolled over become the property of PureEnergySystems.

New entries may utilize "leftover" technology so long as they add sufficient alterations to render it a "patentable" change.

Investments

Dumping Investments

Users who "invested" in a technologies that did not win first, second, or third place have a grace period of three months after the awards date to remove their investment and place it in another technology in the current election.

Donations

Non-refundable after deadlines of day 2:31 and

Terms

The terms of the election set forth herein may be changed by a 2/3 vote of the peer review panel (user elected) and or the PureEnergySystems panel.

The peer review panel may remove a member of the PureEnergySystems panel by a 3/4 vote.

Page composed by SDA Nov. 19, 2003
Last updated December 02, 2003