Under the terms of the agreement, Flatfree-Korea will pay an annual license fee, purchase manufacturing equipment and purchase chemical systems.
The agreement grants Flatfree-Korea a license to manufacture and market the products for distribution in South Korea and other Asian markets. The license to market the products in South Korea is exclusive, provided Flatfree-Korea makes minimum license payments to Amerityre of $100,000 per year over an initial term of 10 years.
Under the agreement, Amerityre will sell Flatfree-Korea a $1 million equipment package and will assist Flatfree-Korea with equipment installation and setup, training and manufacturing support. Amerityre will also sell Flatfree-Korea the proprietary chemical systems necessary for the production of Amerityre’s closed-cell polyurethane foam tyre products.
