Non-Compliance, Late Regulatory Adherence & Enforcement Framework

(Pricing-Integrated Compliance Policy)

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I. AIINT Compliance Economics — Strategic Rationale

Grammaton6 AIINT operates as a regulatory intelligence and decision-assurance layer across AI, ERP, and critical infrastructure environments. Compliance is not optional—it is a priced operational requirement.

This framework establishes financial consequence, escalation pricing, and clawback authority as core enforcement mechanisms to ensure:

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• Continuous regulatory alignment

• Systemic risk reduction

• National-interest and public-safety protection

• Market discipline across AI-driven enterprises

 

II. Non-Compliance with AIINT Regulatory Standards

Definition

Failure by AI companies, ERP providers, cloud operators, data-center operators, or infrastructure partners to meet AIINT-mandated compliance, governance, auditability, or control requirements constitutes non-compliance.

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Pricing & Penalty Structure

1. Initial Non-Compliance Event

• $250,000 per violation, per system, per assessment cycle

2. Sustained Non-Compliance (Beyond 30 Days)

• $50,000 per week, cumulative, until full remediation and verification

3. Critical Compliance Failure
If non-compliance results in:

• Regulatory exposure

• Systemic governance failure

• Public safety or national-interest risk

Then the responsible party shall be liable for:

• Full remediation costs

• All downstream damages

• A $5,000,000 AIINT risk penalty

Grammaton6 reserves the right to immediate termination of the agreement without refund.

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III. Late Regulatory Adherence (Time-Based Pricing Escalation)

Definition

Failure to implement required regulatory updates, control enhancements, or governance changes within mandated timelines.

 

Escalation Schedule

1. Delay Beyond 15 Days

• $100,000 base penalty

• $10,000 per day until compliance is validated

2. Delay Beyond 60 Days

• Immediate contract termination rights

• $3,000,000 breach-of-contract fee

3. Repeated Delays (More than 2 incidents within 12 months)

• Automatic 10% increase in all AIINT licensing fees

• Mandatory compliance retraining, fully funded by the non-compliant party

• Elevated audit frequency at Grammaton6 discretion

 

IV. Dispute Resolution & Enforcement Authority

• Governing Law: United States federal law

• Standards: International regulatory and arbitration norms, where not in conflict with U.S. interests

Liability Protections

• All liability caps are waived in cases involving:

  • Regulatory non-compliance

  • Governance failure

  • Risk to public safety, national security, or AI governance integrity

 

V. Clawback Provisions — Financial, Reputational & Strategic

1. Financial Clawback

Trigger: Regulatory failures causing Grammaton6 financial loss

Obligations include:

• 100% reimbursement of fines, penalties, and legal costs

• 3× multiplier on operational losses or revenue disruption attributable to the failure

2. Reputational Harm Clawback

Trigger: Loss of trust, regulatory standing, or adverse media impact caused by partner non-compliance

Grammaton6 may:

• Impose a $5,000,000 reputational damage penalty

• Recover all lost revenue, including:

  • Terminated contracts

  • Withdrawn partnerships

  • Regulatory restrictions or delays

3. Contractual, Revenue & Equity Clawback

Trigger: Strategic or market damage attributable to non-compliance

Enforcement actions may include:

• Repayment of all fees paid to the counterparty in the prior 12 months

• Forced equity buyback (if applicable) at 50% of last valuation, in favor of Grammaton6

• Revenue redirection of up to 15% for a period of up to 3 years, subject to legal validation

 

VI. Termination, Asset Control & Restriction Rights

Trigger Conditions

• Severe governance breakdown

• Regulatory intervention

• Governmental or intelligence-driven enforcement action

Remedies

• Immediate termination with $10,000,000 breach penalty

• Retention of:

  • AI models

  • Datasets

  • Compliance frameworks
    developed or provided under the agreement

• Permanent restriction from participating in AIINT-governed compliance programs

 

VII. Escrow & Financial Assurance

• Mandatory Compliance Escrow: $3,000,000

• Held continuously and accessible by Grammaton6 upon verified breach

• Escrow does not limit additional penalties or remedies

 

VIII. Final Review, Amendment & Authority Clause

1. Unilateral Amendment Rights

Grammaton6 may revise this framework based on:

• Regulatory changes

• New compliance standards

• Emerging technological or operational risks

2. Mandatory Adoption

All revisions must be implemented within 30 days of written notice.

Failure triggers:

• Non-compliance penalties

• Fee escalation

• Termination rights

3. Final Authority

Grammaton6 retains exclusive authority over:

• Compliance determinations

• Enforcement actions

• Risk classification

No appeals, negotiations, or liability caps shall constrain enforcement.

 

IX. Exclusive Jurisdiction & Legal Control

• Exclusive Forum: U.S. federal courts (e.g., Washington, D.C.)

• No foreign jurisdiction may assert authority

• Class actions prohibited

• Jury trials waived

• Expedited proceedings prioritized

 

X. National Security & Public Interest Override

If an immediate risk arises:

• Grammaton6 may revoke access

• Terminate agreements

• Enforce penalties without prior notice

 

XI. Force Majeure (AIINT Context)

Reserved for events impacting global digital infrastructure, regulatory systems, or sovereign governance continuity.
Final language under development.

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