Abstract
A method for structuring residential access agreements in which an early-stage company provides equity compensation to a property owner in lieu of cash rent. The method uses a dynamic equity formula that calculates an annual equity accrual rate based on the fair market rental value of the property divided by the company valuation, with a two-phase structure that automatically transitions from a risk-discounted pre-financing rate to a post-money rate upon the occurrence of a qualifying financing event. A cumulative equity cap limits total dilution to the company regardless of property value or term length.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Burton, Aaron, "Dynamic Equity Accrual Method for Residential Access Agreements Between Early-Stage Companies and Property Owners", Technical Disclosure Commons, (April 16, 2026)
https://www.tdcommons.org/dpubs_series/9815