Conac Software Signs MOU With Keelor Corporation for US$ 6 Million and 10% Royalty for Marketing Rights of Its Software and B2B E-Commerce Platform in Europe, Australia & South America.Business Editors/Technology Writers RICHMOND, British Columbia--(BUSINESS WIRE)--March 25, 2002 CONAC CONAC Continental Air Command CONAC Center of North America Coalition for Rural Development (North Dakota, USA) SOFTWARE CORPORATION ('COT-V"). Conac Software Corporation ("Conac") has signed a Memorandum Of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. ("MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ") with Keelor Corporation Limited ("Keelor Corp") to form a Joint Venture Company ("European JV Co") for the purpose of marketing the Conac suite of Construction Management Software and B2B e-commerce (Business to Business Electronic-COMMERCE) Refers to one business selling to another business via the Web. See e-commerce. Construction Portal services in Europe, Australia and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. (the "Marketing Region"). According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the terms of the MOU, Conac and Keelor Corp ("the Parties") will leverage off each of others collective strengths to develop, market, service and support the Conac suite of products in Europe, Australia, and South America. Terms and Conditions of the MOU: 1. Conac will provide the European JV Co. the exclusive rights to market its software and B2B e-commerce platform in Europe, Australia and South America. 2. The European JV Co. shall pay Conac US $6 million over a 2-year period starting from the 4th month of the signing of the Definitive Agreement for the European JV Co. This payment is for the exclusive marketing rights to the Conac products in the Marketing Region. Payments to Conac will be dispersed in 8 quarterly payments of US$750,000 each 3. US $3 million will be kept in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. , Conac being named as sole beneficiary, for a 24-month period following the incorporation of the European JV Co. The escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money shall be reduced by US$750,000 per quarter after the 13th month onwards as payment are made to Conac by the European JV Co. 4. Conac will provide the European JV Co., on-going software development and technical support. 5. Conac will provide the European JV Co. all customization for the Marketing Regions, for which the European JV Co. will pay Conac C$600,000 for each Marketing Region where customization is required. 6. Conac shall have 1 seat on the European JV Co. Board of Directors. 7. The European JV Co. shall have 1 seat on the Conac Board of Directors. 8. Conac shall have a 15% non-diluted shareholding in the European JV Co. 9. Keelor Corp. shall have a 85% shareholding in the European JV Co. 10. Keelor Corp. will inject US $10 million into the European JV Co. over 2 year period, either through direct funding or through sale of equity shares from its 85% shareholding in the European JV Co. 11. Conac shall receive from the European JV Co, a 10 % royalty payments for product sales, payable on a quarterly basis, after the 25th month of the European JV Co. operations. 12. Keelor Corp. will provide the European JV Co. a detailed Business Plan with Financial Projections, by April 30/02. 13. The Parties plan to sign a Definitive Agreement for the European JV Co. by April 30th, 2002. 14. The MOU is subject to Regulatory approval Conac's vision is to grow through mergers and alliances, we continue to focus our efforts in developing our products to stay abreast with leading edge technology and continues to search out "new alliances" with strong synergistic companies looking to market Conac's comprehensive "end-to-end" suite of software products designed for Project Oriented Businesses in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and overseas. Conac sees this strategy to be a key factor in growing the business and establishing itself and it's products as worldwide leaders. Conac Software Corporation is the leading edge specialist in project oriented and financial software for the Construction Industries. Since 1984, Conac's innovative and easy-to-use products have grown in market acceptance among general contractors, home builders, sub trades, designers and engineers and has become the standard for the construction industry in Canada. The Company's integrated software Separate software components or applications that have been combined into one package. See integrated software package. products control every fact of the Construction Management process. Keelor Corporation Limited is a holding company based out the United Kingdom, with offices in Europe and Australia. Keelor Corp. has interests in shipping, oil and gas rigging rigging, the wires, ropes, and chains employed to support and operate the masts, yards, booms, and sails of a vessel. Standing rigging is semipermanent, consisting mainly of mast supports, the fore-and-aft stays, and the stays running from the masthead to each side , engineering and construction. It has existing partnerships and alliances with several major construction companies in Europe and Australia and South America. To learn more about Conac Software Corporation, visit our website at: www.conac-ir.com or www.conac.com Investor Relations Investor relations The process by which the corporation communicates with its investors. : PacWest Group, Mike Marrandino, PH: 604-684-6999 or TF: 877-684-6999 investor@conac-ir.com On behalf of Conac Software Corporation, "Jacqueline Michael" Jacqueline Michael, President The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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