Subject: Letter of Intent - Incorporation of Cooperative and Ownership Distribution

Dear Community,

This Letter of Intent is drafted on behalf of Novlr. It expresses our intentions regarding the future incorporation of a cooperative or trust and the distribution of ownership among the members of our community.

As you may be aware, we (Novlr) have been diligently working towards achieving significant milestones that will let us trigger the incorporation of a member-owned cooperative or a trust with the aim of fostering a sense of shared ownership and collaborative decision-making among the individuals who have actively supported Novlr.

The specific milestones that we have identified as triggers for the incorporation of the cooperative are as follows:

  • Membership count: The incorporation of a member-owned cooperative or a trust will be initiated when Novlr reaches a Membership count of at least 1000 individuals. This milestone signifies the growth and engagement of our community. By Membership we mean our ‘co-ownership’ membership.
  • Resource Capacity: It’s important that Novlr has reached a point where we have the means to support the creation and ongoing management of the member-owned entity.

Upon the incorporation of the member-owned cooperative or the trust, we aim to ensure that the early contributors, represented by existing credit holders, are duly recognised for their support and dedication.

All credits accrued before the creation of the entity will be recognised and given value as part of the distribution mechanism for revenue distributed to members.

Distribution of Profit based on Contributions

Novlr will introduce a "contribution credit" to account for actions taken by the community towards achieving these milestones. These credits will be earned based on support provided and be a measure of how future profit is distributed.

The distribution of credits will determine the distribution of profit to members. The credit system will be transparent and its intent unchanged, incentivizing progress towards milestones and expediting the launch of the co-operative or trust (for more information, see section 1: Earning contributions in the addendum below).

Revenue Generation through Membership Sales

In order to enhance the financial sustainability of Novlr and support its growth, we will generate revenue by offering memberships for sale. Memberships are available for purchase directly through Novlr.

Conviction to uphold our Intent

Novlr is committed to transparency, fairness, and inclusivity in the formation and operation of the cooperative or trust. We believe that incorporating a member-owned entity will not only strengthen the bond between Novlr and our community but also foster a collaborative environment for future growth and success.

We understand that the details mentioned in this letter are of utmost importance to you as future co-owners. Therefore, we assure you that our legal team will diligently work towards finalizing the necessary legal documentation, including the bylaws, to ensure a smooth transition to the new structure.

If you have any questions, concerns, or suggestions regarding the future incorporation of the cooperative or trust, or the distribution process, please do not hesitate to contact us. We value your input and look forward to your continued support as we work together to achieve these milestones.

Thank you for your trust and dedication to Novlr. We are excited about the prospect of creating a cooperative or trust that truly reflects the collective effort and commitment of our community members.

Yours sincerely,

Thomas Muirhead and Kim Montgomery



Addendum: Contribution Credits and Future Profit Distribution

To further clarify the mechanism by which community members, particularly writers and contributors, can earn profit distribution, we introduce the concept of a "contribution credit." This credit will serve as a means to account for actions taken by the community that contribute to the achievement of our milestones. All details outlined below:

  1. 1. Earning contributions
    1. As Novlr acknowledges the invaluable role played by writers and contributors in our journey, we recognize their ability to earn future profit distribution from the member-owned entity through the acquisition of contribution credits. This means that:
    2. 1.1 Writers and contributors within our community will have the opportunity to earn credits based on their supportive actions.
    3. 1.2 The allocation of contribution credits will be directly proportional to the level of support provided by writers and contributors.
    4. 1.3 As the community of writers grows, their influence and ownership of Novlr will increase.
    5. 1.4 The credits earned by individual community members, specifically writers, will be converted into profit-share distributions and influence, reflecting their contribution to Novlr.
    6. 1.5 The actions that warrant a credit grant will always be designed to further our progress towards Novlr’s milestones. Novlr remains dedicated to this purpose.
  2. 2. Distributing contributions
    1. Novlr commits to maintaining the integrity of our credit-based ownership distribution system and assures the community that material changes to this logic will not be made. We believe that this approach will incentivize and reward those who actively support Novlr, aligning their interests with the collective goal of achieving Novlr’s milestones and launching the cooperative or trust.
    2. 2.1 The credit distribution system will serve as the source of truth for determining the distribution of future profit. It is a transparent and equitable mechanism that allows every community member to contribute and be duly recognized.
    3. 2.2 The number of credits available for distribution within the community is unlimited.
    4. 2.3 Every supportive action by community members can be recognized and rewarded.
    5. 2.4 The distributed profit to a writer within the member-owned entity will be determined by the number of credits they hold in relation to the total credit circulation.