Document:

gss_ex10-1.htm

    
      GSS
AND BLENDTEC AGREEMENT

      

      This GSS
and Blendtec Agreement (the "Agreement") is entered into as of and is effective
the 23rd
day of July, 2008. and is made at Orem, Utah, by and between Global Smoothie
Supply, Inc., a Texas corporation, located at 4428 University Boulevard. Dallas,
Texas 75205 ("GSS") and K-Tec, Inc., a Utah corporation d/b/a/ Blendtec
("Blendtec"), located at 1206 South 1680 West, Orem, Utah 84058.

      

      WHEREAS,
GSS and Blendtec wish GSS to act as a consultant to Blendtec for purposes of
identifying customers of GSS who desire Blendtec products, providing marketing
services and selling to and servicing those potential customers for Blendtec
products;

      

      NOW
THEREFORE, in consideration of the premises, the promises contained herein and
other good and valuable consideration, receipt whereof is hereby acknowledged,
Blendtec and GSS agree as follows:

      

      CONSULTANCY:

      1)    Blendtec
hereby appoints, and GSS agrees to act as a marketing and sales consultant to
Blendtec for purposes of identifying potential users of Blendtec products,
providing marketing services and selling Blendtec products to and servicing
those potential users; and

      

      2)    When GSS
identifies a potential user of Blendtec products, as in this Agreement below,
GSS will make commercially reasonable efforts to obtain the identified party as
a user for Blendtec products and will place or deliver all orders received,
subject to product availability, for Blendtec products to Blendtec. Blendtec
will take all commercially reasonable action necessary or desirable to encourage
such potential users to purchase, lease or otherwise use Blendtec's
products.

      

      POTENTIAL
CUSTOMER:

      3)    GSS hereby
identifies the following potential user of Blendtec products:

      

      Company
Name:                  7-ELEVEN,
INC.

      Address:                               Dallas,
Texas

      

      NON-CIRCUMVENTION:

      
        4)    Blendtec
represents that with respect to the identified potential customer, 7-ELEVEN.
Inc. ("Customer"), Blendtec will deal directly through GSS in filling orders of
the Customer for products and equipment from Blendtec that are the result of GSS
efforts. Blendtec will provide GSS with a custom part number for each product
GSS offers to 7-ELEVEN, Inc. Orders placed using the custom part numbers will be
the means of determining business that results from the efforts of GSS. Any
dispute regarding such GSS efforts shall be determined by 7-Eleven. Inc.
Blendtec represents that the identified Customer is already a Blendtec sales
lead being worked by Blendtec in-house and outside sales representatives.
Blendtec further represents that such activity shall not limit its obligations
under this Agreement.

      

      
        
        

      

       

      Blendtec
agrees not to:

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      a)           Circumvent
the GSS relationship to Customer;

      

      b)           Circumvent
GSS, directly or indirectly, with respect to any sale or lease to the Customer
of Blendtec products, including, but not limited to its MEGAblenderTM /
Self Serve Smoothie (S3); nor cause Customer to change contractual or commercial
negotiations, proposals or commercial arrangements which it may have with GSS or
which GSS may have or propose to have with Customer, including any contractual
add-ons, third party assigns, renewals, renegotiations, extensions, overages or
parallel contracts. Non-circumvention is limited to the Customer business that
results from the efforts of GSS.

      

      CONFIDENTIALITY:

      5)           GSS,
while acting as a consultant to Blendtec, will assist Blendtec in obtaining
orders, directly or indirectly, from the Customer, and in servicing Customer's
account. Thus, GSS and Blendtec will exchange proprietary information on
occasion and discuss sales in an effort to maximize the sales and service to
Customer. All information exchanged will be treated as confidential unless
otherwise stated by the provider of the information. Such information shall he
kept confidential by the other party, unless disclosure is required by law. If
disclosure is necessary or desirable to an employee or representative of a
party, such employee and representative shall agree to the confidentiality
described herein.

      

      BLENDTEC
WARRANTY:

      6)           As
the Customer may purchase any of Blendtec's products and equipment, including,
but not limited to its MEGAblenderTM and
S3, Blcndtec will provide support services to the Customer in the following
manner:

          Blendtec will
treat the Customer on a Best Customer basis with respect to pricing, service and
warranties on its products. No channel selling Blendtec products to the Customer
shall receive more favorable pricing, service or-product warranties than offered
to GSS by Blendtec.

      

      PRICING
& PAYMENT:

      7)           Blendtec
will provide product and equipment pricing to GSS. Current prices for the
MEGAblenderTM and
S3 are shown on "Exhibit A", attached hereto and are subject to change upon
90-day notice in writing. GSS will determine the amount of cost adder that will
be applied to the Blendtec's prices appearing on Exhibit A. GSS will provide the
GSS adder pricing to Blendtec for informational purposes, where appropriate. The
GSS adder element of such pricing shall be held in confidence as "proprietary
and confidential" by Blendtec. GSS will provide quotations to the customer and
the customer will place orders with GSS. GSS will then place orders with
Blendtec. Blendtec will accept orders from GSS once GSS has acquired credit
terms from Blendtec. All orders made by GSS with Blendtec are net 30 from the
date of shipment.

       

      8)          Should
Blendtec receive any payment from the Customer pursuant to this Agreement,
Blendtec will remit payments of the cost adder to GSS based on paid invoices by
the third Wednesday of each month following the month payment of the Customer's
invoice is received. Payment will be by check unless other arrangements are
specifically agreed in writing.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      TERM:

      9)          The
term of this Agreement shall be for a period of three (3) years, commencing on
the date first-above written and shall renew automatically as to the Customer
and GSS if Customer continues purchasing or whenever Customer
purchases
Blendtec equipment and it will run as long as the Customer purchases
equipment without a break in purchases over one (1) year. In the event that no
purchases are made over a one (1) year period, Blendtec and GSS will take all
reasonable steps to generate additional orders. In the event that reasonable
efforts do not generate sales, Blendtec may cancel this agreement on ninety (90)
days written notice to GSS at the above address. Notwithstanding the foregoing,
GSS may cancel this Agreement on ninety (90) days notice in writing to Blendtec
at the above address. This Agreement is not assignable by Blendtec without
express written agreement.

      

      LAWS
& ARBITRATION:

      10)          This
Agreement will
be governed by the laws of the State of Utah In the event there is any issue
GSS and Blendtec cannot resolve by direct
negotiation, GSS and Blendtcc agree to binding arbitration to be
conducted in Salt Lake or Utah County, Utah. Results of such binding arbitration
will be lodged as a judgment in any court with proper jurisdiction. Attorney
fees shall not be assessed to the losing party but costs of arbitration will be
awardable in arbitration of any claim of breach of this Agreement.
Notwithstanding the foregoing, any party may apply to any court of proper
jurisdiction for injunctive relief, specific performance or other equitable
relief appropriate to continue the performance of the parties under the
Agreement until there is a final award in arbitration.

      

      This
Agreement entered into as of the date first-above written. Each party hereto
acknowledges by its signature below that it is authorized to execute and deliver this Agreement
and has received an original counterpart of this Agreement.

      

      

      Global
Smoothie Supply, Inc.

      

      By:
/s/ David C.
Tiller

      Its:
CEO

      

      K-Tec,
Inc., d/b/a Blendtec

      

      By:
/s/ David M.
Beck

      Its:
Presidentgss_ex10-2.htm

    

    

     

    July 28,
2008 

     

    Dear
David,

    

    This is
in clarification of our Agreement, dated July 13,
2008 in connection with the future purchase of Blendtec products by
GSS.

    

    Blendtec
hereby grants GSS the first right to purchase Blendtec's production of its Self
Serve Smoothie blender (S3).

    

    If
Blendtec's production of the S3 exceeds GSS's orders for such production for
more than any 30-day period then GSS shall lose its right of first purchase of
such S3 production upon notice to that effect by Blendtec to GSS.

    

    Please
indicate Blendtec's approval of this amendment to its agreements regarding its
production with GSS by signing in the space provided below.

    

    Sincerely,

    

    Global
Smoothie Supply, Inc.

     

    /s/ John W. Gohsman
President

    

    

    Read,
Approved & Agreed:

    

    

    K-Tec,
Inc., d/b/a Blendtec

    

    /s/ David
Beck

    By: David
Beck

    Presidentgss_ex10-3.htm

    
      June 01,
2009

       

       

      Tracking
The Trends

       

      It
was wild ride for the nation's convenience stores in 2008, but despite the
stagnant economy and unprecedented fuel prices, industry profits held
strong.

       

      By CSD
Staff

       

      An
otherwise tough year for convenience stores was balanced out by strong retail
fuel margins from the unprecedented drop in wholesale fuels prices during the
fourth quarter of 2008, according to National Association of Convenience Stores’
(NACS) 2009 State of the Industry report. However, credit card fees continue to
take a toll on industry profitability. 

       

      Overall
convenience store industry profits rose 54% in 2008 to reach $5.2 billion,
reversing a two-year decline where profits dropped 42% over that period.
Industry sales jumped 8.1% to reach $624.1 billion, with both motor fuels sales
(up 10.1% to $450.2 billion) and in-store sales (up 3.2% to $173.9 billion) showing
growth.

       

      The
growth of in-store sales defied the overall trend in U.S. retail sales, which
fell 0.6% based on U.S. Department of Commerce data. It also came despite a rare
decline in the number of convenience stores, NACS reported. For only the third
time in the past 15 years, the industry store count fell 1% to 144,875, as many
stores closed because of the punishing economic conditions and record-low motor
fuels margins the industry faced during the first three quarters of
2008.

       

      The
convenience store industry sells an estimated 80% of the fuels purchased in the
U.S., and motor fuels sales continue to dominate industry revenues, accounting
for 74.5% of all sales dollars, in examining same-firm sales data. However,
overall fuel gallons sold declined 2.4%, according to NACS. Meanwhile because of
low gross margins on fuel (5.7%), only 31.7% of all profit dollars came from
fuels sales. 

      Credit
card fees continue to be the industry’s top pain point, surging another 10.5% in
2008 to reach a record $8.4 billion—-nearly three times the level just five
years ago.

       

      In-Store
Performance

      Once
again, cigarettes dominated in-store sales, accounting for nearly one in every
three dollars spent in stores, but cigarette gross margins continued to plummet,
falling to 15.3%. These low cigarette margins dropped the category to third in
terms of gross margin contribution. Meanwhile, foodservice, which includes
dispensed beverages and food prepared on site, continues to show strong growth,
accounting for nearly one in four in-store profit dollars.

       

      
        	 
      	 
      	
                As of the end of 2008, the number of locations now
      stands at 144,875 stores, a 1% decline from 2007.

                U.S. Convenience stores (as of
      12/31/08): 

                2008:
      144,875

                2007:
      146,294

                2006:
      145,119

                2005:
      140,655

                2004:
      138,205

                For
      just the third time in the last 15 years the industry’s store count
      decreased. The count also declined in 1994 and 2003.

              	 
      
	 
      	 
      	
                 

                TOP
      STATES FOR

                CONVENIENCE
      STORES

                (as
      of 12/31/08): 

                Texas:
      14,112 stores

                California:
      10,298

                Florida:
      9,303

                New
      York: 7,580

                Georgia:
      6,320

                North
      Carolina: 6,130

                Ohio:
      5,149

                Michigan:
      4,824

                Illinois:
      4,541

                Virginia:
      4,487 

                The
      bottom three states are Alaska (198 stores), Delaware (315) and Wyoming
      (350).

              
	 
      	
                 

                Nearly
      75% of in-store sales were from the top five categories:   •
      Cigarettes, 32.7% of in-store sales • Packaged beverages, 14.1% •
      Foodservice, 13.9% • Beer, 10.2% • Other tobacco products,
      3.9%

              
	
                 

                Nearly
      70% of gross margin dollars were from the top five categories, NACS
      REPORTED:   • Foodservice, 23.9% • Packaged bevs, 16.6% • Cigarettes,
      16% • Beer, 6.9% • Candy, 4.8%

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