(herein referred to as "Initial Purchaser") and SEVENTH BROTHER, LLC. having its place of business at 6612 NW 38TH STREET, #1646, BETHANY OK 73008 (herein referred to as "7BRO") that is represented by Managing Members of 7BRO
WHEREAS 7BRO is a private Purchase group of Purchase groups investing in small businesses within 7BRO’s portfolio, to buy, sell, and trade goods and services in unique ways attempting to make a profit for its benefactors
.
WHEREAS Initial Purchaser wishes to purchase items from K-CO Distributing via 7BRO, for resale, and 7BRO wishes to accept these funds in exchange for contracted dividends paid on item purchased and future sales of the items via K-CO Distributing, LLC..
In consideration of the provisions and obligations in this Agreement, Initial Purchaser and 7BRO agree to the following terms:
1. Purpose of the contract
The purpose of this contract is to protect Initial Purchaser's purchase via 7BRO,
7BRO's terms for a return on Initial Purchaser's Purchase Amount, 7BRO's Confidential Information, and 7BRO's market position in its industry.
2. Purchase
Initial Purchaser shall invest/purchase at least $340.00 in product at $34 per item ("Purchase Amount") in exchange for a contracted percentage of the gross return based on achieving the contracted goals set between K-CO Distributing, LLC. And 7BRO. Initial Purchaser shall pay the Purchase Amount via check or wire transfer to 7BRO upon the Effective Date of this Agreement. Initial Purchaser
has agreed to provide the Purchase Amount on a one-time basis. For sales on a recurring basis by K-CO Distributing, LLC., Initial Purchaser will receive the agreed upon percentage for the current automatically renewing contracted period of five (5) years. Initial Purchaser and 7BRO may agree to alternative purchase terms, including adjustments to the Purchase Amount and frequency of Purchases deposited, with a separate addendum signed by both Initial Purchaser and 7BRO's Representative. Initial Purchaser and 7BRO agree the Purchase
period will be over a minimum term of 5 years in which the Purchase
shall not be withdrawn.
3. Management and control
7BRO shall be managed by executives.
7BRO's majority shareholder shall have explicit authority to approve all Board members and executive hires. Executives shall handle
7BRO management in the utmost professional conduct, including mechanisms for talent acquisition, training, SOP's, employee retention, promoting from within, and ethical standards.
4. Distribution
Net income (“Net Income”) earned by 7BRO shall be distributed to K-CO Distributing and no longer accepted from Initial Purchasers when one of the below is satisfied:
I. the total Purchase from all Initial Purchasers (“Total Purchase”) is greater than or equal $1,000,008
II. the first unit of King Plunger is sold
The amount of distribution to Initial Purchaser (“Initial Purchaser Distribution”) is according to the following on a monthly basis:
The total amount to be distributed (“Total Distribution”) = Net Income x Payout % Whereas Payout % is equal to:
15%
Initial Purchaser Distribution =
$59.99 (Sale Price ea.) – $34.00 (Purchase Amount) = $ 25.99 profit. 15% of that ($3.90) is divided among the Initial Purchasers based on the percentage of the total purchase from K-CO Distributing, LLC. Via 7BRO that the Initial Purchaser initially purchased Distributions shall be made to all Initial Purchasers and stake holders via check or bank direct deposit on
the 5th day of the month. Initial Purchaser agrees that distributions may be paused or postponed under circumstances in which 7BRO needs to retain income to maintain a healthy and positive financial
condition.
5. Dissolution
If a dissolution event occurs before this Agreement is terminated by
Initial Purchaser and 7BRO, initial purchase is only refundable in the form of product purchased. Initial Purchaser shall not have the right to
payment based on physical assets of 7BRO.
6. Non-disclosure
For the purposes of this clause, Confidential Information means any information used by 7BRO to develop trade secrets, including documents, reports, programs, data, models, designs, financial plans, procedures, software, formula, patents, patent applications, or general know-how that was communicated verbally, electronically, or in print. Trade Secrets mean information possessed and developed by 7BRO that holds inherent economic value because it is not known by the general public or 7BRO's competitors. This may include but is not limited to formulas, programs, data, techniques, processes, patterns, or other information as deemed by 7BRO. Initial Purchaser
agrees to keep all Confidential Information and Trade Secrets in the strictest of confidence and shall not disclose Confidential Information or Trade Secrets to any unauthorized third party. Failure to keep Confidential Information and Trade Secrets confidential may result in legal action taken by 7BRO against Initial Purchaser, and Initial Purchaser will be required to pay any and all of 7BRO's attorney fees.
7. Non-competition
Initial Purchaser agrees that during the duration of the
Purchase relationship between Initial Purchaser and 7BRO, Initial Purchaser shall not be employed or financially interested, either directly or indirectly, in the same or similar business as 7BRO. If this Agreement expires or is terminated, Initial Purchaser is bound to this non-competition clause for a period of three (3) years.
8. Termination
To terminate this Agreement, Initial Purchaser and 7BRO must agree to and sign a termination contract pursuant to this section. The termination request shall be initiated by the Initial Purchaser no later than 60 days prior to the intended termination. In the event Initial Purchaser wishes to terminate this Agreement, the majority shareholder shall have the first right of refusal to purchase
Initial Purchaser 's interests. If the majority shareholder does not purchase Initial Purchaser's interests, others stakeholders shall have the first right of refusal before Initial Purchaser seeks to sell their interests to another third party. Initial Purchaser shall not sell interests
to any individual or company that is in the same industry as 7BRO. The Company's majority stakeholder shall have final approval of who may purchase Initial Purchaser's interests
9. Severability
If a court of competent jurisdiction finds that any section, paragraph, clause, or provision of this Agreement is invalid or otherwise unenforceable, the remaining clauses in the Agreement shall remain in full force and effect. If the invalidity or illegality of any section, paragraph, clause, or provision of this Agreement greatly impacts the ability of Initial Purchaser and 7BRO to achieve the purposes of this Agreement, Initial Purchaser and 7BRO shall draft and sign a new agreement as soon as possible.