PLEDGE AGREEMENT

DATE:                                  Please return to:
DONOR:                                 Marcus Hutter
ADDRESS:                               Daley Rd Bld.115 RSISE/ANU
PHONE:                                 Canberra ACT 0200, Australia
PLEDGE:
RESTRICTIONS:                        (e.g. maximal amount per year)

PURPOSE: The pledged contribution shall be used for the Human
Knowledge Compression Prize, or short H-Prize, hosted at
http://prize.hutter1.net.

MOTIVATION: The H-Prize intends to give incentives for advancing
the field of Artificial Intelligence through the compression of
human knowledge. A representative part of Wikipedia, an extensive
encyclopedia of human knowledge, has been chosen for this purpose.
The better one can compress it, the better one can predict; and
being able to predict well is key for being able to act
intelligently.

THE TASK: The contest is about compressing a snapshot of Wikipedia
(currently the 100MB file enwik8), as well as possible. The author
of a compressor that compresses X% better than the current record,
wins X% of the (virtual) prize fund Z.

THE PRIZE FUND: Initially, the fund contains 50'000 Euro donated
by Marcus Hutter. The fund is currently virtual, since the money
is directly transferred from the donor to the winners.

DONORS: Large pledges of more than 10'000 Euro will increase the
fund Z by the donated amount. In case the donor provides
restrictions, the increase may be lower. Small pledges may not
increase the fund Z, but may only be used to pay out winners.

EXPECTATIONS: Prior experience with smaller such competitions
leads us to expect a 3% improvement per year, that is, to pay out
only 3% of the prize fund Z per year, but larger pay outs cannot
be excluded.

AGREEMENT: Whenever the H-Prize committee announces a winner, one
or more donors will be selected. In case of selection, the Donor
agrees to transfer the money to the winner in a mutually agreed
upon way. The donor will be appreciated by placing his name
besides the winner in the table of records, unless he wants to
remain anonymous. A donor may have to pay more than one winner, up
to the pledged amount.

H-PRIZE COMMITTEE:
Jim Bowery:    verification of claims, public relations, finding sponsors.
Matt Mahoney:  running the compression competition.
Marcus Hutter: chair, arbiter, primary sponsor, manager of prize fund.

LEGAL BINDING: This pledge is a legal obligation of the Donor, and
may only be withdrawn on mutual agreement or in case the spirit of
the H-Prize changes. In witness whereof, Donor has signed this
pledge on the date set forth above.

DONOR      ______________      WITNESS        ______________

Signature  ______________      Signature      ______________

ACCEPTANCE OF PLEDGE. The H-Prize committee hereby accepts the
foregoing pledge and agrees to use the contributions from the
Donor in accordance with the purpose set forth above to the extent
it is practical to do so.

Approved by the H-Prize committee chair

Date __________  Signature _______________  Name _____________