Legal Disclaimer
Expandaco Stakeholder Agreement and Legal Disclaimer
Introduction and Stakeholder Definition
By participating as a stakeholder in Expandaco, you enter into a revenue-sharing arrangement designed to provide periodic royalty payments based on Expandaco’s performance. Stakeholders are defined as participants who hold a passive financial interest, without any ownership, equity, or active involvement in Expandaco’s management. This agreement does not establish any rights or privileges associated with shareholders, investors, or company owners.
1. No Ownership, Equity, or Voting Rights
Participation as a stakeholder in Expandaco does not confer any ownership interest, equity stake, voting rights, or control within the company or its acquired businesses. This agreement establishes a passive financial role and does not grant stakeholders any authority over corporate governance, strategic decisions, or daily operations.
2. Stakeholder Role and Royalties
Stakeholders are eligible to receive royalty payments based on specific revenue performance metrics as defined by Expandaco. These payments represent a share of revenue—not profits—and are variable, contingent on Expandaco’s revenue generation. Royalty payments are not guaranteed and may vary in frequency and amount. This revenue-sharing arrangement does not imply a long-term financial obligation from Expandaco and does not create any expectation of continuous income or capital gains.
3. Not an Investment, Security, or Financial Product
Participation in Expandaco’s stakeholder program is not an investment, does not involve the purchase or sale of securities, and should not be construed as such. Stakeholders do not possess investor status, and royalty payments should not be interpreted as dividends or returns on investment. Expandaco provides no guarantee of future payments, financial appreciation, or growth, as this program operates outside of traditional investment and securities structures and is not governed by investment-related laws.
4. No Stakeholder Liability or Operational Involvement
Stakeholders hold no liability, responsibility, or claim to Expandaco’s operations, debts, or obligations. Expandaco retains full control and authority over all business decisions, financial strategies, and day-to-day operations. Stakeholders bear no responsibility for financial outcomes, operational decisions, or any company liabilities.
5. Terms of Royalty Payments
Royalty payments are made at Expandaco’s discretion based on company revenue performance metrics and may fluctuate. Payment timing and amount are subject to change, and Expandaco reserves the right to adjust, delay, or discontinue payments based on operational, financial, or strategic considerations. This agreement establishes no fixed schedule or amount for royalty payments.
6. Confidentiality and Non-Disclosure Requirements
Stakeholders agree to uphold confidentiality with respect to Expandaco’s proprietary information, trade secrets, business practices, and financial data. Confidentiality obligations remain effective beyond the termination of this agreement. Breach of confidentiality may result in termination of stakeholder status, suspension of royalty payments, and legal action.
7. Tax and Reporting Responsibility
Stakeholders are solely responsible for reporting and managing any tax liabilities related to royalty payments under this agreement. Expandaco does not assume responsibility for tax guidance, documentation, or reporting beyond providing any required IRS forms (e.g., Form 1099, if applicable). Stakeholders should consult their tax professionals for advice on reporting income derived from royalty payments.
8. Compliance with State and Federal Laws
This agreement is governed by the laws of the State of California. Expandaco operates in compliance with all relevant local, state, and federal regulations regarding revenue-sharing arrangements. Any disputes arising from this agreement will be resolved within California’s jurisdiction and may be subject to arbitration or mediation.
9. Acknowledgment and Waiver of Rights
By entering into this stakeholder agreement, you acknowledge that you are not an owner, investor, or shareholder of Expandaco and waive any claims to company ownership, equity, or future profits beyond royalty payments. You further agree that your role as a stakeholder does not entitle you to any claim on the company’s assets, management, or potential equity offerings.
Summary of Stakeholder Role
As a stakeholder, your role is strictly passive and limited to receiving royalty payments based on Expandaco’s revenue performance, as specified in this agreement. You bear no liability, management responsibilities, or decision-making rights, and you expressly waive any ownership or equity claims related to the company.