Doing Business with DevourX
The DevourX business model is based upon performance.
Machines are provided to Licensed Users at manufacturing cost by payment of an initial license fee. The license fee includes all costs associated with commissioning the machines on site anywhere in the world and the training of personnel in the operation of the machine.
Once operational, DevourX is paid an agreed processing fee per input tonne. The processing fee is generally based upon a percentage of the identifiable savings generated by using DevourX when compared to conventional equipment.
If the machine does not perform, DevourX does not generate any revenue, so it is in our interest to ensure the reliability and performance of every machine in operation for the benefit of both parties.
Performance information and feedback from sites throughout the world is used to accelerate development of the technology which is incorporated into new machine designs. This cooperative approach is to the benefit of all users who are guaranteed access to all improvements and the latest modifications.
DevourX generally enters into two types of license agreements:
1 - User Agreements:
Where individual user/company are licensed on a per tonne processing fee basis.
2 - Joint Venture (JV) Agreements:
Where a partnership is established and the partner is allocated exclusive regional and/or industry rights.
In this case our JV partner is responsible for business operations, marketing and distribution in their own defined region or industry.
Some of the features of a JV agreement are:
- A new company is formed the facilitate JV. (For illustration purposes, the new company is referred to herein as "NewCo").
- NewCo shareholding is split between DevourX and JV partner. (In most cases the majority shareholding is allocated to the regional/industry partner)
- DevourX is allocated at least one seat on the board of NewCo.
- NewCo is licensed to exploit DevourX Systems in the particular region or industry.
- NewCo pays processing fees to DevourX at a predetermined rate.
- All business in that region/industry is referred to NewCo.