Megola Signs $50M Agreement With Vulcan Technologies for 10 Year Railroad Contract
Tuesday January 20, 4:00 pm ET
Agreement Provides for Megola to Receive $750,000 Working Capital Advance on Future Royalty Payments
POINT EDWARD, ON--(MARKET WIRE)--Jan 20, 2009 -- Megola Inc. (Other OTC:MGOA.PK - News) announced the signing of a Distribution and Sale Agency and Royalty Agreement with Vulcan Technologies, LLC, for the Hartindo line of Anti-Fire Products.
Joel Gardner, President and CEO of Megola Inc., stated, "Megola continues to move forward with its goal of bringing the Hartindo Line of Anti-Fire Products to the North American marketplace. With the successes of the advanced testing to date, we continue to demonstrate that Hartindo products are the next generation of fire inhibiting and extinguishing products from both an industry efficacy and environmental impact point of view. Attracting a company such as Vulcan shows how far reaching and lucrative the product applications can be."
Highlights of the Agreement include, but are not limited to, the following:
-- Vulcan is granted exclusive distribution/sales representative rights
for the Hartindo Product Line in the countries of Canada and Mexico
to the railroad industry (the "Railroad Industry") for a ten (10)
year term.
-- Vulcan is granted co-exclusive distribution/sales representative rights
for the Hartindo Product Line in the United States of America
(the "U.S."), to the railroad industry (the "Railroad Industry") for a
ten (10) year term.
-- In consideration of its appointments set forth in the Agreement, Vulcan
agrees to pay Megola the sum of Seven Hundred Fifty Thousand
($750,000.00) USD, as follows:
(i) a partial payment of $400,000 to Megola due five (5) business
days after the execution and delivery of this Agreement by all
parties, and;
(ii) a payment of $350,000 ninety (90) days following the date of this
Agreement.
-- Vulcan shall pay to Megola a commission payment equal to twenty-five
(25%) percent of Vulcan's profit on Hartindo Products.
-- Vulcan hereby commits to generate aggregate gross sales of the Hartindo
Products in the Railroad Industry of no less than $3 Million USD on or
before the second anniversary of this Agreement, and, thereafter,
agrees to increase such aggregate gross sales by fifteen (15%) percent
for each year thereafter, commencing with the third year of the term.
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About Vulcan Technologies, LLC:
Vulcan Technologies, LLC (Vulcan), incorporated in the State of New Jersey, was founded with the sole purpose of distributing a complete line of proprietary and environmentally-friendly "green" products. Vulcan's management has extensive investment banking experience and contacts in many different sectors throughout the United States and Canada, including the real estate, garment, and hospital industries, and is actively conducting business with major North American railroads. In addition to management, several Vulcan advisors have years of experience securing military, municipal and security contracts throughout North America, which will assist in establishing a substantial market presence for the Hartindo product line.
For more info on Megola Inc., please visit www.megola.com
