| DevourX intends to implement two types
of agreements which have been designed to generate maximum revenue
for the Company. Joint Venture (JV) agreements will be established
with industry leaders who will be responsible for marketing and
distribution in their own defined industry. Other agreements will
be established on an individual user basis where a contract will
be entered in which each company pays a per tonne processing fee.
The template for JV agreements has already been established by
DevourX and its partners in mining, food processing and quarry processing.
The template includes the following features:
- 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 its industry partner. The majority shareholding is allocated
to the industry partner.
- DevourX is allocated at least one seat
on the board of NewCo.
- DevourX allocates a license to NewCo, which
allocates exclusive rights to exploit DevourX Systems in a particular
industry or region.
- NewCo pays a processing fee to DevourX
at a predetermined rate.
- NewCo pays the equivalent cost of each
machine it requires in advance.
- All business in that industry is referred
to NewCo.
- NewCo is to establish a separate and dedicated
sales and marketing division for the purpose of promoting DevourX.
Each of our joint venture partners have agreed to conduct on-site
tests to establish the most efficient operational parameters of
the machinery, including the configuration required to operate multiple
machines simultaneously. On-site testing yields a number of benefits
to DevourX and its partners, such as:
- The acceleration of research and development.
- The ability to conduct tests in numerous
industries concurrently.
- A substantial reduction in the amount of
internal testing required, resulting in significant cost reductions
and time savings to DevourX.
- An accelerated inflow of knowledge and
industry specific information.
- All resulting developments are the intellectual
property of DevourX.
- Machine improvements from each industry
are incorporated into new generation machinery which is then made
available to all DevourX joint venture partners.
DevourX has inbuilt protection mechanisms for its technology. The
on-board controlling mechanisms are tamper-proof and the machines
can be monitored and controlled from remote locations by inbuilt
satellite transmitter.
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