Frequent questions

Investing is only available to registered users of the platform upvest. Registered user or investor leads upvest accountthrough which he/she Invests.Investor may, after logging in platform and its functions to the full extent. Among other things, he has an overview of his investments to date investments and can be contacted via the platform informed of their progress.

Any natural person who is at least 18 years old and any natural or legal person who has a bank account established and maintained with a Czech or Slovak financial institution or a branch of a foreign financial institution in the Czech or Slovak Republic.

To successfully register, you will need:

Individuals:

1. A copy of the front and back of your ID card (separately).
2. Copy of the front of your driver's license OR passport OR insurance card OR birth certificate OR firearms license.
3. Information about your bank account: prefix, number, bank code.
4. Mobile phone number

Legal persons:

1. A copy of the front and back of the ID card (separately) of all individuals who will act for the legal entity.
2. Copy of the front of the driving licence OR passport OR insurance card OR birth certificate OR firearms licence of all natural persons who will act for the legal person.
3. Information on the legal entity's bank account: prefix, number, bank code.
4. Mobile phone number of all natural persons who will act for the legal person.
5. If the ownership structure cannot be read from the commercial register, a copy of the document indicating the ownership structure (e.g. list of shareholders).
6. A copy of the front and back of the identity card (separately) of all of the beneficial owners.
7. The mobile phone number of the natural person actively acting on behalf of the legal person and the mobile phone numbers of the other natural persons acting on behalf of the legal person and their participation (physical presence or remote connection) in signing contractual documentation.

Confirmation of your registration will be sent to you by email together with the closed contract documentation. Please note that the contract documentation becomes effective on the date on which it is credited the first transfer to your account made through your bank account specified at registration. Invest You can start after we have checked the documents you have sent us. Confirmation of authorization Investing will also be sent to you by email.

Only a natural person or multiple natural persons who will actively act for the legal entity in this business relationship have the ability to log in to the user environment and enter payment orders. When entering a payment order for the purpose of acquiring participation, all natural persons acting on behalf of the legal entity will receive an SMS code, which, by copying it into the relevant fields within the application, will result in the execution of the payment order.

Legal entity information:

1. Identification number
2. Beneficial owners
3. Double-sided copy of the beneficial owner's ID card
4. Bank account number together with a declaration that the account is in the name of the legal entity and a declaration of authority to dispose of the account

Information on the natural persons actively acting on behalf of the legal person:

1. Name and surname
2. Birth number
3. Double-sided copy of ID card
4. Copy of the front of the driver's licence or passport or insurance card or birth certificate or firearms licence
5. Telephone number

Since we have been entered by the Czech National Bank in the register of small-scale payment service providers, we have become an obliged person under Act No. 253/2008 Coll. on certain measures against the legalization of proceeds of crime and terrorist financing (AML). In order to carry out the AML screening correctly, we require all information and documents from you during the registration process.

Investing is only for Investorsfor whom the potential loss of some or all of their of the investment will not mean a significant deterioration in their economic situation.

You need to be a registered user (investor), make Identification payment, have charged account at least the amount of the planned investment. You must also be logged in to platform and have your mobile phone handy.

The list of risks is part of contractual documentation (OPP), some risks are listed as part of the description for each investment opportunities.

If you want to make an investment with any of theinvestment opportunities, you must first log in to the platform. On the page dedicated to the presentation of the investment opportunity click on the "Invest" button. Then, in the appropriate field, select the amount of investment and click on the "Invest" button. A confirmation SMS code will be sent to the phone number you entered when you registered and you can enter it in the appropriate field. Then press the "Confirm" button. After this step, we will send you an email confirming the execution investment. At this point you will also receive conditional participation.

After the execution investment you are on your own account funds in the amount you have entered investment so that it cannot be disposed of for a period of the fundraising period. The funds will be unblocked if

1. the fundraising is unsuccessful
2. will not take place drawdown of the loan by the developer from any reason

Otherwise, when the fundraising is successful and the fundraising takes place the loan disbursement by the developer, a transfer of the invested amount (or part thereof) to the bank account will be made of the developer.

The dispatch of the funds to the developer we will inform you by e-mail. However, we will inform the developer when the funds have been sent to the developer does not constitute the moment of receipt participation. The acquisition of the participation occurs at the moment successful fundraising. The acquisition of participation we will inform you by sending you an e-mail.

Based on your participation are then transferred to you the proceeds fromloan between upvest and the developer until the loan is repaid in full.

After selecting the investment amount and clicking on the "invest by bank transfer" button, enter a payment order in your banking system containing your unique variable symbol and the specific symbol of the investment opportunity you wish to invest in. Once the payment has been credited to your upvest account, we will attempt to automatically invest the amount.

• If your investment is greater than the remaining amount of the investment opportunity, we will send you an email notifying you of the failure to make the investment and your funds will be credited to your Upvest account.
• If the investment is successful, we will send you an email confirming the investment investment. At this point you will also receive conditional participation.

Users can usually invest on Upvest from a minimum amount of CZK 5,000.

Invested amount must be within the range of minimum and maximum amount of the investment. This information is given in the the parameters of the investment on the page of the given of the investment opportunity.

The amount invested must also be rounded to the nearest thousand.

After implementation investment are on your account funds in the amount you entered investment so that it can be handled infundraising period cannot be disposed of during the fundraising period. The funds will be unblocked if

1. notsuccessful fundraising
2. will not take place the loan is drawn down by the developer for whatever reason

Otherwise, if the fundraising is successful and the the loan is drawn down by the developer, the amount invested (or part thereof) will be transferred to the bank account of the developer.

The dispatch of the funds to the developer we will inform you by e-mail. However, we will inform the developer when the funds have been sent to the developer does not constitute the moment of receipt participation. The acquisition of the participation occurs at the moment successful fundraising. The acquisition of participation we will inform you by sending you an e-mail.

Based on your participation the proceeds of your participation are then transferred to youloan between upvest and the developer until the loan is repaid in full.

Once made investment cannot be revoked or cancelled.Invested funds will be returned to you in accordance withthe parameters of the investment or in the case of unsuccessful fundraising.

Any blocked funds on your account in relation to the investment will be unblocked and you can dispose of them freely again.

The first transfer of funds must be made by transferring funds from the bank account you provided during registration. If you want to invest in Czech crowns, send the required amount to the upvest bank account designated for investment č. 7401552/0100 held at Komerční banka, a.s. and entering yourvariable symbol in the variable symbol field.

Account number for payments in CZK: 7401552/0100

Variable symbol: your variable symbol, which you will receive after registration by email and which is displayed next to your profile after logging in to platform.

You can make any further transfer from any bank account, but you must always enter your variable symbol as variable symbol.

The upvest bank account in which we record your funds is a crown bank account. If you make a transfer to this bank account designated for investments in a currency other than Czech crowns, we will transfer to your account the amount in Czech crowns that we receive after the transfer from the foreign currency at the current exchange rate offered by the bank with which we have an account (Komerční banka, a.s.).

In your user interface on platform after viewing your investment overview, you can enter a transfer of any amount up to the balance on account to the bank account you specified during registration.

Invest you can invest in your chosen loan agreementsthat Upvest enters into with developers through participations. Upvest enters intodeveloper a loan agreement for the purpose of providing funds for the real estate project described on the page given investment opportunity.

Participation establishes to the investor the right to participate in returns and losses arising from the loan agreemententered into by upvest withthe developer. Share of the Revenue and losses arising from loan agreement is proportional to the amount investmentfor which investor the participation was obtained.

Thus, if the investor acquires a participation worth CZK 100 000 (invests CZK 100 000) in loan the principal amount of which is CZK 10 000 000 (investment objective), he will receive 1% of the total proceeds attributable to investors arising from this loan agreement.

Method of participation in the loan agreement

Proceeds include repayment of principal and payment of interest, default interest, fees or contractual penalties. Allocation of income arising from loan agreement between the investor and the upvest is as follows:

Principal: 100% Investors

Interest: 100% To investors

Default interest: 100% Investors

Fees:

• Loan Arrangement Fee:
• 1. In case of no termination. of the loan agreement by the developer without giving any reason before drawdown of the loan: 100% upvest
  2. In the event that the loan agreement is terminated by the developer without giving a reason before drawdown of the loan: up to the amount of the fee according to a): 100% upvest, above the amount of the fee according to a): 100% Investors
• Fee for reservation of funds: 100% Investors
• Partial drawdown fee: 100% Investors
• Early repayment fee: 100% Investors
• Fee for partial early repayment of the loan:
• • Fixed part : 100% upvest
  • Variable part: 100% Investors

Contractual penalties:

• Contractual penalty for non-compliance with drawdown conditions
• 1. Intentional conduct: 100% Investors
  2. Unintentional: 100% Investors
• Other contractual penalties resulting from breach of a loan agreement: 50% Investors, 50% to Invest

Should there be a change in the above method of distribution of performance fromLoan in relation to a particular participation and Loan, Investor shall be clearly and conspicuously notified by the Company in advance of the execution of the investment.

The loss from loan agreementto which the investor after obtaining participation also participates, is limited to the amount of of the investmentfor which investor the participation was obtained.

Firstly, on the day on which we receive the payment to the bank account according to the loan agreementwe will transfer the appropriate portion of that payment to your account. However, no later than the second Business Day after the day on which we receive such payment.

You get participation if there issuccessful fundraising. From that moment on, you participate in the the loan agreement.

Conditional participation arises at the moment of execution of the investment and expires at one of the following times:

1. Successful fundraising
2. Unsuccessful fundraising

In the first case, you receive participation. In the second case, you are reimbursed for funds previously invested in the investment.

Direct legal relationship withDeveloper has only the company upvest.Mezi investor a the developer is not a legal relationship.

We have the right to terminate your participation during the term of your participation, and we are obligated to pay you any unpaid and unpaid proceeds in respect of such participation and to pay you the market value of such Participation. We have set up this right as a protection in case the law no longer allows us to carry on this business.

For the duration of the credit relationship, we and the developer in contact with the developer and monitor compliance with the parameters of the loan agreementas well as the realised development project. For this reason, we are able to detect impending problems with possible default loanor identify their cause. Furthermore, in situations where there is a risk that the developer will default on any part of the of the loan, according to the loan agreement we can and will apply a number of sanction mechanisms to compel Developer the developer to properly perform its obligations under the agreement (liquidated damages, threat of acceleration loan etc.). We therefore have tools at our disposal to detect impending defaults loan and enforcement mechanisms to ensure proper repayment.

In the event that developer finds itself in default loan, we try to resolve the situation proactively and urgently, always taking into account the interests of of the investors and the specifics of the project in question. Specifically, we will examine the current property situation as soon as possible of the developer, our lawyers will propose possible procedures to recover the outstanding debt, prepare all necessary documents and, last but not least, we will try to reach an amicable agreement with the developer confirmed in the form of a notarial deed or other binding document (e.g. an agreement to pay the amount due in instalments, etc.). If no satisfactory out-of-court agreement is reached with developer and if judicial recovery of the outstanding debt appears expedient (i.e. the developer has assets to cover its liabilities or at least a reasonable part of them), following the sending of a pre-action notice to the developer we will initiate legal proceedings. Of course, this procedure is without prejudice to our efforts to obtain the maximum amount of funds from a particularloan agreement, we continue to look for effective ways to possibly replace the claim with a the developer into a more liquid asset - e.g. by selling the receivable to a third party, by entering into a court settlement within the framework of court proceedings or a mediation agreement, etc. If we find that the defaultloan is due to a breach of the legal duties of the persons representing developer, we will hold them personally liable, e.g. for breach of due diligence in the exercise of their functions as a statutory body of the developer. As a last resort, if we suspect that the default loan is due to criminal conduct of the developer or persons representing the developer, we are ready to contact the criminal authorities (Police of the Czech Republic, prosecutor's office) with such findings.

If you want to make an investment with any of theinvestment opportunities, you must first log in to the platform. On the page dedicated to the presentation of the investment opportunity click on the "Invest" button. Then, in the appropriate field, select the amount of investmentwhich must be between the minimum and maximum amount and click on the "Invest" button. A confirmation SMS code will be sent to the phone number you entered when you registered and you can enter it in the appropriate field. You then press the "Confirm" button. After this step, we will send you an email confirming the execution investment.

First you get conditional participationwhich, after successful fundraising automatically converts to participation.

Since investing through the platform increases the investor's wealth, the income from these investments is subject to taxation. The following is the taxation procedure for a Czech tax resident individual for whom this is an occasional income and this activity does not meet the characteristics of a business and does not have these investments in his business assets.

Taxation of income from investments through participations is subject to taxation under Section 10 (other income) of Act No. 586/1992 Coll., on Income Taxes, as amended (hereinafter referred to as "ITA"). In view of the opinion of the General Financial Directorate of 19 October 2017, income from loan participations should be taxed under the provisions of Section 10(1)(b) of the ITA under the following conditions. According to the provisions of Section 10(4) of the ITA, the tax base is the income from participation achieved in a given tax period, less the expenses incurred in achieving it, up to the amount that has not yet been applied in previous tax periods.

In Section 10, the expenditure is not linked to the tax year in which it was incurred, but is linked to the income (i.e. the year in which the increase in assets occurred). Since the different participations generate the same type of income, it is possible to offset expenditure and income between the different participations within the same tax year. Expenditure can only be claimed up to amounts not claimed in previous tax years and any loss cannot be carried forward to the next tax year.

Thus, in the case of the income of an investor in upvest Ltd, the taxable amount is the entire income received from the participation in the tax year (i.e. everything received) less the amount of the funds provided for the participation and the amount of the related fee, only to the extent not yet claimed in previous tax years. The taxable income occurs at the moment of crediting the investor's account, i.e. at the moment when the investor can further dispose of the funds (withdraw them, continue to invest them or leave them in the account).

Please note that upvest, s.r.o. does not provide tax advice and the above information is only informative and non-binding. Each investor is required to file his or her own tax return by April 1 of the following year. Please consult your tax advisor if necessary about the tax aspects of participations.

Upvest charges a fee for providing payment services. This fee applies only to Investorswho hold valid (not yet terminated) participation. It is expressed as a percentage of the amount of the investment, is charged annually but is paid only from the proceeds. Upvest charges this fee for the processing of payments in relation to a specific participation and the administration of the electronic payment system.

Value net proceeds is stated net of this fee.

For more information on the fees, please refer to the Fee Schedule and the Project Fee Schedule.

Above Fee for the provision of payment services depends on the specific participation and is set out in the project tariff, which can be found at investment opportunitiesto which the participation relates to. Fee is always charged annually (this does not mean that it is payable annually) and is expressed as a percentage of the amount investmentsfor which you received participation.

For more information on fees, please refer to the Fee Schedule and the Project Fee Schedule.

Fees shall be paid by offsetting against revenue in relation to a specific participation, unless otherwise specified in the project tariff.

For more information on fees, please refer to the Fee Schedule and the Project Fee Schedule.

Fees are only payable if the proceeds are paid in respect of the participation.

For more information on fees, please refer to the Fee Schedule and the Project Fee Schedule.

upvest s.r.o. acts in this agreement as the lender and developer acts as the borrower.

Each credit agreementon which they may investors obtain Participationis special purpose vehicles. The purpose of granting loan shall be specified in each contract. It is primarily to provide credit for the purpose of financing the costs of implementing a specific real estate project, such as the acquisition of a property or the construction of a property. of the loan is described on the page of the loan investment opportunity.

First, there must besuccessful fundraising.

In order to then developer can to take out a loan, he must first meet the conditions of the drawdown. The most relevant conditions of the loan are listed on the page given investment opportunities. However, they usually include: delivery of a valid building permit, delivery of valid insurance contracts, delivery of expert reports. However, it always depends on the type of specific project, the stage it is in, the method of financing the specific project and other factors. We also guard against a situation where, between the closing the loan agreement and the possible point in time drawdown the economic situation could deteriorate significantly of the developer or the object of the purpose (building, property, etc.) for which it is loan the purpose for which the loan is granted. It is up to us to assess such a situation and if we believe it occurs we may refuse the application for a drawdown.

Drawdown of the loan is based on a drawdown request submitted to us by the developer. If all the conditions for drawdown are met, we send to the developer the funds specified in the application, up to the maximum amount that was collected in the the fundraising period.

Credit is drawn in one lump sum. In some cases, we may also authorize incremental drawdown of the loan, but the proceeds Investors is protected in such cases a fee for reserving the funds.If there is no credit is not drawn down in full, the yield Investors until the date of to the next maturity date is protected a partial drawdown fee.

It is expected that credit will be repaid in one lump sum on date of expected maturity. Loan may be repaid gradually and prior to that date, but due to the early repayment fee a partial prepayment fee the yield Investors up to the date of of the next maturity date is protected.

Obligations enshrined in the the credit agreement allow the upvest to control the project from a technical point of view, e.g. the obligation to the developer to allow access to the construction site, to submit the construction diary on request, etc.

They allow the project to be audited financially, for example through the obligation to send bank statements, invoices, profit and loss statements including an analysis of receivables, payables, etc.

Allow for legal scrutiny of the project, e.g. obligation to submit all contracts and documentation developer upon request by upvest.

Protect upvest's position as a creditor, in particular as regards the agreed order of settlement, for example by requiring upvest to agree to the conclusion of any further loan agreement, a loan, a transaction in investment instruments or any other type of financing. the obligation to use a certain percentage of the proceeds developer to repay loan and in particular the revenues derived from the subject matter of the purpose of the loan of the loan (e.g. project implementation, real estate).

The statement is primarily a statement of facts reflecting the current legal and economic picture of the developer and, to some extent, a commitment to the manner of its future conduct and disposal of its assets. The declaration constitutes a certain protection for the upvest. If it turns out during the course of the of the loan agreementthat any of the representations made by the developer are untrue, Upvest may proceed in accordance withbreach of an obligation or representation under the loan agreement.

Upvest can choose one of the following procedures. The type of procedure chosen should always maximise the likelihood of successful implementation of the project for which it has been credit granted.

Upvest may

1. Challenge Developer to remedy
2. Demand a contractual penalty
3. Declare any debts fromloan as immediately due and payable
4. Rescind the loan agreement

If not already the loan has been drawn down by the developer, Upvest may reject, suspend or reduce the loan in the event of a default drawdown of the loan. Even in such a case, however, the proceeds Investors is protected until the date to the next maturity date. via a contractual penalty for non-compliance with the drawdown conditionsas one of the conditions of the loan is non-violation obligations or declaration.

Developers.

A mezzanine loan is a loan agreementthat is entered into with the developerthat has already closed or is about to close loan agreement with a bank or other financial institution.

More in what are the specifics of a mezzanine loan.

Mezzanine loan is subordinated to the loan agreementthat the developer has entered into with a bank or other financial institution. This subordination is dealt with contractually, namely by concluding a subordinated debt agreement (intercreditor agreement) between upvest and the financial institution.

In order for the financial institution developers to approve the conclusion of a loan agreement with upvest, such loan agreement must have certain specificities:

1. Final maturity date in credit agreement must be set after the final maturity date specified in the the credit agreement with the financial institution
2. Any proceeds arising from the loan agreement shall be payable either (i) upon full repayment of the debt owed to the financial institution or (ii) by set-off against the drawdown of the loan from upvest. This also applies to any penalties arising from a breach of obligations or in the extreme case of redemption loan.

Credit agreements For developers so we structure them with the financial institution in mind. This also applies to the method of control of the developer or its information obligations to the investment. Such loan agreement is dynamic and obligations of the developer and the method of control change depending on the achievement of predetermined project milestones, one such milestone being the repayment of the financial institution.

Ways in which upvest can provide to the developer loan to the developer are several:

1. By linking by establishing a loan directly to the project company
2. By linking credit to a company belonging to the group of the developer
3. By linking credit to the parent company of the developer

This means that the developer is either the project company, another company belonging to the group developer or a parent company.

If upvest provides credit directly to the project company a developer also has a loan agreement with a financial institution, it is then mezzanine loanwhich must meet the specifics of a mezzanine loan.

Link credit to a group company developer is necessary if the financing financial institution does not allow the loan to be concluded with another entity. This is most often the case when the project is already at an advanced stage of implementation. The loan is then usually granted to a company within the group of the developerthrough which the developer contributes its own resources into the project. This may also be because such a company provides better security for the upvest (e.g. it owns real estate on which the upvest can have a lien, etc.). This last reason is also the main reason for granting loan through the parent company of the developer.

Regardless of the scheme chosen above, the loan is always earmarked and the funds are used for the implementation of a specific project.

Credit is not secured, unless stated in the information on the page of the relevant investment opportunity. The fact that credit is not secured is reflected in a higher interest rate at loan and by setting up more detailed control mechanisms in the the loan agreement.

Yes.To change the terms and conditions of the loan We may proceed, for example, if the developer is in default or heading towards default. However, we always do so in order to maximize revenue.

For the duration of the credit relationship, we and the developer in contact with the developer and monitor compliance with the parameters of the loan agreementas well as the realised development project. For this reason, we are able to detect impending problems with possible default loanor identify their cause. Furthermore, in situations where there is a risk that the developer will default on any part of the of the loan, according to the loan agreement we can and will apply a number of sanction mechanisms to compel Developer to properly perform its obligations under this agreement (contractual penalty, threat of loan repayment, etc.). We therefore have tools at our disposal to detect impending defaults loan and enforcement mechanisms to ensure proper repayment.

In the event that developer finds itself in default loan, we try to resolve the situation proactively and urgently, always taking into account the interests of of the investors and the specifics of the project in question. Specifically, we will examine the current property situation as soon as possible of the developer, our lawyers will propose possible procedures to recover the outstanding debt, prepare all necessary documents and, last but not least, we will try to reach an amicable agreement with the developer confirmed in the form of a notarial deed or other binding document (e.g. an agreement to pay the amount due in instalments, etc.). If no satisfactory out-of-court agreement is reached with developer and if judicial recovery of the outstanding debt appears expedient (i.e. the developer has assets to cover its liabilities or at least a reasonable part of them), following the sending of a pre-action notice to the developer we will initiate legal proceedings. Of course, this procedure is without prejudice to our efforts to obtain maximum funds from a particularloan agreement, we continue to look for effective ways to possibly replace the claim with a the developer into a more liquid asset - e.g. by selling the receivable to a third party, by entering into a court settlement within the framework of court proceedings or a mediation agreement, etc. If we find that the defaultloan is due to a breach of the legal duties of the persons representing developer, we will hold them personally liable, e.g. for breach of due diligence in the exercise of their functions as a statutory body of the developer. As a last resort, if we suspect that the default loan is due to criminal conduct of the developer or persons representing the developer, we are ready to contact the criminal authorities (Police of the Czech Republic, prosecutor's office) with such findings.

The fee that the upvest takes from developer if there is no termination of the loan agreement and which is agreed on the basis of the loan agreement. If termination occurs of the credit agreement, upvest takes a fee of the same amount but Investors receive the remainder of the fee, which is the amount that the investors would have received if that amount had been repaid on the of the next maturity date.

The fee paid by the developer for the opportunity to to take out a loan calculated from the second day after the expected last day of the fundraising period until the day drawdown of the loan. It is expressed as a % p.a. of the total amount that can be developer can be drawn which has been collected infundraising period. Unless otherwise stated, the amount of the fee is the same as the interest rate.

The fee that developer pays in the event that does not draw down the entire loan. The amount of the fee is calculated on the undrawn amount and is the amount that would be investor would have received on that amount in interest income if that amount had been drawn down until the date of the next maturity date.

The fee that developer pays if the developer repays the loan before the of the next maturity date. The amount of the fee is calculated on the amount drawn amount and is the amount that would be investor would have received in interest income on that amount if it had been repaid on the of the nearest maturity date.

The fee that developer pays in the event that it repays a portion of the provided loan before the date of the loan before the next maturity date. The fee has two components:

1. A fixed one, which is normally CZK 15,000 and goes up to CZK 15,000. It is a fee for processing payments.
2. The variable one, which goes to the investor and it's the amount that would be investor would have earned on that amount in interest income if that amount had been repaid on the date of the nearest maturity.

The fine, which developer paid if the developer fails to comply with the conditions of the drawdown. Two different amounts of this penalty are set as standard and the amount chosen depends on what conditions of drawdown and whether the failure was intentional or unintentional.

1. Developer has failed, either intentionally or unintentionally, to comply with any of theof the conditions of drawdown except that there has been no significant deterioration in the economic situation of the project to be financed loan or the developer or that there have been no changes in the input assumptions which adversely affect or could affect the implementation of the project or the repayment loanif the disbursed. In such a case developer shall pay an up payment penalty in the amount that would have been investor the developer would receive from itsinvestment in interest income if the investment was repaid on the date of its next maturity.
2. Developer deliberately failed to comply with the condition that there has been no significant deterioration in the economic situation of the project and/or of the developerfor which the financing is to be loan or that there have been no changes in the input assumptions which adversely affect or could affect the implementation of the project or the repayment loanhad it been drawn down. In such a case, the developer shall pay a prepayment penalty in the amount that would have been the investor received from itsinvestment in interest income if the investment was repaid on the date of its next maturity.
3. Developer has inadvertently failed to meet the condition that there has been no significant deterioration in the economic situation of the project and/or of the developerfor which the financing is to be loan or that there have been no changes in the input assumptions which adversely affect or could affect the implementation of the project or the repayment loanif it had been disbursed. In such a case developer shall pay an up payment penalty in the amount that would have been investor the developer would receive from itsinvestment in interest income if the investment was repaid on the date of its next maturity a the interest rate would be ¼ the interest rate at loan.

Whether or not there was intent and whether the above condition was met is always assessed by the creditors. The exact amount interest rate in case 3) will always be indicated for the specific investment opportunity.

Your personal data is safely stored in our secure data centres. The transmission of data containing your personal data is always encrypted using SSL.

In addition to upvest, your personal data can be accessed by Česká spořitelna, a.s. ("ČS") and Komerční banka a.s. ("KB"), with which upvest s.r.o. has a bank account where the funds of third parties (you) are recorded. investors) and which it allocates internally to your accounts. We provide your personal information to CS to the following extent: First name, last name, residential address, social security number. In addition, upvest employees have access to your personal information. Subsequently, your personal data may be accessed by entities pursuant to relevant legislation, court decisions or decisions of the state or local government or similar institutions.

By agreeing to the rules for processing personal data, you also grant consent to upvest to forward your e-mail address for the purpose of promoting the services and products of upvest s.r.o. or companies belonging to the holding structure of upvest, also for the purpose of promoting their services and products.

On a bank account maintained by Komerční banka, a.s. under a special regime, where third-party funds (you investors).

Access to your account is protected by the name and password you entered when registering on app.upvest.cz. Actions related to signing contracts and investing are further protected by 2-factor authentication by sending a code to your mobile phone, which you must use to confirm the action.

Your money is deposited in a bank account with Komerční banka, a.s. Our electronic system communicates via an encrypted channel using the Account direct access API of the commercial bank and thanks to it we can automatically detect incoming payments and credit them to your account at upvest.cz according to the variable symbol and account number of the sender. Our electronic system has read-only rights over the bank account held with Komerční banka, and therefore there is no risk of incorrect manipulation of your funds due to an error in our electronic system.

Average daily rate for renting a unit

Profit after tax

Profit before tax

Free cash flow available to property owners after all costs, excluding Upvest loan costs

Free cash flow available to property owners after all costs have been paid

A proxy for the ability to meet interest costs. A value of less than 1 indicates a possible problem with the payment of interest costs during the credit relationship

Where EBIT is the free cash flow available for interest payments.

There are several ways of calculating interest coverage ratios and the appropriate approach is always chosen in relation to the case at hand.

The internal rate of return, this is the discount rate, which is the solution to the equation:

where

CF_t is the cash flow over time t

r is the discount rate

Ratio of total debt to the value of the property, used, among other things, in assessing the riskiness of the loan, determining the maximum amount of credit granted

Net floor area for rent.

Net operating profit of income property

A letter of intent (LOI) is a document declaring a preliminary commitment by one party to execute a transaction with a given counterparty. The LOI outlines the main terms of the future agreement.

Revenue per rented unit

Return on invested capital. It is given as a multiple of the investment cost of the project without taking into account the time component.

Weighted average of the time to the end of the lease contracts. The weights are the annual rental amounts under the current lease agreements. Expressed in years.

Return on invested equity. This is reported as a percentage of the pre-tax profit on the equity provided to the project by the developer, excluding the time component.

Net floor area

Gross floor area

Debt yield = net operating income (NOI) / total debt

Debt yield is a debt metric that tracks the capacity of a financed asset to generate operating cash flows with respect to its total debt. For example, Upvest monitors this metric to ensure that there is a conservative gap between the Debt Yield and the market capitalization rate for the asset.

Debt-Service Coverage Ratio

The DSCR or Debt Service Coverage Ratio measures the ratio of net operating profit (NOI) and the lender's debt service (principal and interest payments for the period).

The ratio of total debt to total project costs, used, among other things, in assessing the riskiness of a loan or in determining the maximum amount of credit provided.

Non-residential premises that cannot be approved as residential units for failure to meet sanitary standards. As a rule, studios and studios do not comply with noise limits, or the premises do not meet the standard for glare.

We calculate using the equation for calculating IRR, where we add all cash flows in relation to a given loan (assumed fees, interest payments, etc.).

The price to be received by the general contractor from the developer for the execution of the construction. This price is agreed in the construction contract.

Payments from credit agreementdue to to investors based on their participations after deducting any fees. It is expressed as a % p.a. of the amount of the investment.

If we state the value of the net return, we calculate only the interest yield and the fee for reserving the fundswhich is paid by the developer. This means that the resulting net yield may be higher (especially if there is a payment of any of the fees or contractual penalties paid by the by the developer). It may also be one hundredth of a percent lower if the transfer of payment from the developer from loan agreement upvest does not process the same day. The net yield, unless otherwise stated, is calculated from the second day after the expected last day of the fundraising period or from the day the drawdown of the loanwhichever is the earlier.

This is the last possible day that can be credit fully repaid without being developer sanctioned for late repayment or instalments (e.g. default interest, which is normally 12%-20% p.a.) or not subject to legal action. The date of the final due date is stated in the the loan agreement and should not precede the final maturity date set by the developer in the loan agreement with the senior lender, if the Loan granted to the same developer.

On the second business day after the day on which upvest identifies the payment received as being received for the performance of a specific creditin respect of which upvest records that at least one participation.

A legal entity with which upvest plans or has an agreement a credit agreement.

These are the costs associated with financing the project (most often debt financing). Costs include the estimated amount of interest payments and fees associated with external financing.

First transfer of funds from a bank account of the investorwhich was provided by the investor during registration, to the upvest bank account no.7401552/0100 designated for investment with the following your variable symbol in the variable symbol field. The funds so transferred will then be deposited by upvest into account investor's account.

It represents either Participationor the amount of the nominal value participation or the amount of money for which the participation acquired. The same applies in relation tocontingent participation.

The amount, or range thereof, to be collected in fundraising period which constitutes the principal of the loan u a loan agreement concluded between upvest and developer.

These are the costs associated with the implementation of the project. Specifically, costs related to civil engineering works, but also costs that do not directly translate into a tangible result on the construction project. Thus, the main capital costs of a construction project are mainly: costs of surveys, land acquisition, preparation of project documentation, utilities, rough engineering, relocations, landscaping, construction, project management, legal costs, marketing. As far as financial costs are concerned, it depends on whether they are paid during the project implementation. If so, we include them in the investment costs. If they are to be paid out of project revenues, we do not include them in investment costs.

Credit Agreement, which can be used to obtain Participation or a website under platformthat contains a detailed description and all information regarding the loan agreement which can be accessed participation.

User platformswho has successfully completed registration.

The process of obtaining conditional participationwhich, after successful fundraising turns into participation.

Interest is only charged on the investment. Interest calculation:

Where
r is the annual interest rate
m is the interest rate frequency

Most often these are residential units, studios, commercial / retail space.

Analysis of liabilities of the project company with a maturity of more than 180 days, if it is developer directly by the project company. In the event that upvest finances the project through another schemethe capital structure of the project means the analysis of the claims of the entities actually financing the project (either directly or indirectly) the investment costs of the project.

Approval of the use of the completed building by the building authority on the basis of the approval of the building permit.

It is an estimate of the price of an asset determined on the basis of the net annual cash flow generated by the asset and a discount rate that reflects the valuation for the risk taken associated with that cash flow.

We assume zero growth in net annual cash flows unless we state otherwise.

The nearest possible due date of the loan.

This is usually the date on which the loan would be developer if, for example, the developer were to accelerate construction or achieve an unexpected sale units of the project (upwards). Although such a scenario is not expected, it is realistic and developer the developer has the option to do so on and after that date credit to repay the loan without early repayment fees.

The fact that the above invested funds of investors vfundraising period has not reached investment objective.

The content of the notarial deed of agreement with consent to enforcement is the debtor's commitment to duly fulfil his debt to the creditor within a specified period of time and if he fails to do so, the creditor may request the bailiff to execute the debtor's property without further court proceedings. Thus, there is no need to go through a court procedure with court fees and often a duration of several years before enforcement, in which the debtor is first ordered to pay the debt before enforcement can be proposed.

A period in which he can developer apply for drawdown of the loan. This is normally the period beginning successful fundraising.

The time span in which they can investors to acquire conditional participationswhich, at the time of successful fundraising automatically converts to participation.

To avoid possible pressure on investorswho might be under time pressure to make decisions in smaller fundraisings due to the expected fast pace of fundraising, we have decided to introduce the so-called Delayed Fundraising Start. This consists in the fact that on the first days of the fundraising the entire detailed investment analysis will be exposed online without the possibility of investment so that everyone has time to get acquainted with the analysis in order to make a decision whether to participate in a given loan / project financing participate or not.

This is net income and putting maturity given by investment.

Website www.upvest.cz upvest s.r.o..

The most relevant conditions Drawing the loan are listed on the page given investment opportunities. However, these usually include: delivery of a valid building permit, delivery of valid insurance contracts, delivery of expert reports, or that there has been nobreach of obligations or declarations under the loan agreement. However, it always depends on the type of specific project, the stage it is in, the method of financing the specific project and other factors. We also guard against a situation where, between the closing the loan agreement and the possible point in time drawdown the economic situation could deteriorate significantly of the developer or the object of the purpose (building, property, etc.) for which the loan is granted. It is for us to assess such a situation and, if in our opinion it arises, we may refuse the drawdown request without forfeiting the right to a contractual penalty for non-compliance with the drawdown conditions.

Expected date due date of the loan.

Based on the financial analysis and technical evaluation, we will determine the anticipated construction schedule for the project and the expected sales or occupancy rate. We will then determine the date on which we expect full repayment of the loan.

Purpose-built legal entity owned by by the developer or directly developerwhich directly owns, or is intended to own, the property, building or land. Project companies upvest provides, either directly or indirectly, funds for the purpose of construction or acquisition of real estate or for any other purpose of financing or refinancing a real estate project specified on the site investment opportunities.

Financial institutions (and upvest) prefer or require the project to be carried out by the project company for the following reasons in particular: to separate the risk of the project or the operation of the property from other activities developer and clearer control of the financial flows associated with the project.

All costs associated with the operation of the income property, primarily property management costs

Average annual occupancy of all units in an income property calculated as the sum of the occupied units within a year divided by the sum of the vacant units within a year.

First transfer of funds from a bank account of the investorwhich was provided by the investor during registration, to the upvest bank account no.7401552/0100 designated for investment with the followingyour variable symbol in the variable symbol field. The funds so transferred will then be deposited by upvest into account investor's account.

A senior loan granted by a bank or other financial institution.

The fact from which the damage has arisen and which could give rise to a right to insurance benefits.

According to Act No.253/2008 Coll. on Certain Measures against the Legalization of the Proceeds of Crime and the Financing of Terrorism, a beneficial owner is a natural person who has the factual or legal ability to exercise, directly or indirectly, a decisive influence in a legal entity, trust fund or other legal arrangement without legal personality. It shall be deemed that, where the conditions of the first sentence are met, the beneficial owner is

(a) in the case of a commercial corporation, a natural person,

1. who, alone or jointly with persons acting in concert with him, holds more than 25 % of the voting rights of that business corporation or has a share in the share capital of more than 25 %,
2. who, alone or jointly with persons acting in concert with him, controls a person referred to in point 1,
3. which is to receive at least 25 % of the profits of that business corporation, or
4. who is a member of the statutory body, a representative of the legal person in that body or in a position similar to that of a member of the statutory body, if he is not the beneficial owner or cannot be determined in accordance with points 1 to 3,

(b) in the case of an association, a public benefit corporation, a community of unit owners, a church, a religious society or any other legal person under the law governing the status of churches and religious societies, a natural person,

1. who holds more than 25 % of its voting rights,
2. which is to receive at least 25 % of the funds distributed to it, or
3. who is a member of the statutory body, a representative of the legal person in that body or in a position similar to that of a member of the statutory body, if he or she is not the beneficial owner or cannot be identified pursuant to point 1 or 2,

(c) in the case of a foundation, institute, endowment fund, trust fund or other legal arrangement without legal personality, a natural person or the beneficial owner of a legal person who is in a position

1. founder,
2. trustee,
3. an obligee,
4. the person in whose interest the foundation, institute, endowment, foundation fund, trust fund or other arrangement without legal personality has been established or is operating, unless a nominee is designated, and
5. the person authorised to supervise the administration of the foundation, institute, endowment fund, trust fund or other legal arrangement without legal personality.

Interest is also accrued on the interest accrued so far:

Where

r is is the interest rate

m  is the interest rate frequency (by default we choose annual, where m =1 unless otherwise stated)

The contract concluded between the developer A contract between a developer and a general contractor, under which the general contractor undertakes to construct the building in accordance with the design documentation and then to hand over the completed building without any defects or damages at a specified price and within a specified time to the developer.

Credit Agreement entered into between upvest as lender and Developer as the borrower and on which the Investors obtain Participation.

A contract for a future purchase agreement that the developer enters into with a prospective purchaser of a project unit. On the basis of this agreement, a deposit of 10 - 15% of the total purchase price of the project unit is normally paid and sometimes the full purchase price is paid after the project unit is approved. This agreement sets out the terms and conditions for concluding the purchase contract for the project unit.

The day when the instalment is due of the loan or part thereof is received in the upvest bank account.

Payment account of the investorfrom which he invests under the platform.

In the event of default on any debt from loan agreement, the developer shall pay default interest. Unless otherwise stated, default interest is payable on the last day of the calendar month commencing with the calendar month in which the default occurs.

This is the interest rate stated in the the loan agreement.

The fact that the above invested funds of investors vfundraising period reached investment target.

Either it is a credit agreementor an amount that has been collected from investors during the fundraising period, or the amount drawn amount by the developer.

A contract between upvest and a financial institution that provides senior credit to the same developer. It is a contract under which upvest acknowledges full subordination of the repayment of the loan from the financial institution. At the same time, upvest waives its rights to intervene in any insolvency proceedings.

The website after you log in to platformwhere you can find your personal data and through which you can handle account.

This is the numerical combination you will receive at the time of closing of the contractual documentation during the registration process. The variable symbol will be emailed to you after registration is complete and can be found in the header of the framework agreement. You use your variable symbol as identification when communicating with upvest and you also include the variable symbol when transferring funds to your account.

Financial resources of the developerthat have been invested in project company a contribution to the equity, a loan or a credit from an economically related entity (other group company developer's group).

The period of time during which the rental space is vacant and during which a new tenant is sought.

Property generating regular rental income.

Payments from credit agreementdue to to investors based on their participations. Where the terms "yield" and "principal" are used in the same sentence, yield means only payments from loan agreementwhich are not payments of principal.

It is calculated as a ratio NOI to the value of real estate. It shows the performance of a given income property and includes the impact of individual operating costs.

An event independent of the will of the insured caused by natural causes, which results in the operation of the property being impossible or the possible operation and use of the property would endanger the insured's employees or residents, owners or tenants units of the project.