KBx Membership Agreement Overview

Member Benefits

The Company uses its best efforts to:

• negotiate agreements with suppliers of Products which may include negotiating discounts, allowances, special services and/or rebates for the benefit of Members from such suppliers;
• provide marketing programs, training programs and management programs as developed from time to time by the Company for residential contract cabinet and countertop members;
• provide a license to use some of the Marks upon the terms and conditions set forth in this Agreement;
• pay Members a patronage dividend based upon the quantity or value of the member’s business which is done through the Company cooperative. Member rebates incentives are paid into the cooperative. 

Member Duties

Member will use all commercially reasonable efforts to:

• conduct business in a first-class manner and according to the highest standards of integrity in the cabinet, countertop and advertising industries;
• promote the unity and strength of the network with the attendance of key management personnel at the annual FEI Group National Conference or Convention. In addition, member shall endeavor to participate in the regional trade shows in which KBx is an exhibitor;
• comply with the Company’s requirement that each Member purchase a certain percentage of its products from the Company’s partnered suppliers. It is critically important to the success of the group that all members endeavor to support the Company’s partnered suppliers by meeting purchase requirements through suppliers who provide incentives or rebates to Company members (“Approved Suppliers”).

Agreement Term and Consideration

Upon acceptance by the Company, the Agreement is for three (3) years. The agreement includes a provision where it shall automatically renew for additional one year periods unless either party gives the other party written notice not to renew this agreement, at least sixty days prior to the end of the then current term.

One-Time Membership Fee

• Member shall pay Company a one-time membership fee of $7,500 as follows: $2,500 payable upon execution of this Agreement and the balance paid through the withholding of the first $5,000 of patronage dividends earned by the Member through the Company’s incentive programs.
• Member must also purchase one share of cooperative stock for $100.
• Down payment for the membership fee and one share of stock totals $2,600.

Monthly Membership Dues

• All Members pay monthly network dues of $195.