Open Market Announces $18 Million Distribution
Agreement For Folio and Commerce Products
Wednesday June 9, 4:55 pm Eastern Time
Company Press Release
SOURCE: Open Market, Inc.
Open Market Announces $18 Million Distribution
Agreement For Folio and Commerce Products
Focuses on fast-growing Internet commerce business
BURLINGTON, Mass., June 9 /PRNewswire/ -- Open Market (Nasdaq:
OMKT - news), a leading provider of Internet
commerce software, announced today the formation of a strategic
relationship with ABSB, L.C., a Provo, UT-based company
backed by private investors and headed by Brad Pelo, one of Folio's original
founders. The agreement enables Open Market to
concentrate resources on its fast-growing Internet commerce business, serve
publishers more effectively through an exclusive
Folio product reseller, and also establishes ABSB as a significant reseller of
Open Market commerce products into the publishing
market. Concurrent with the effective date of this relationship, ABSB will
launch the new Folio product distribution business under
a new company name.
The agreement:
-- Under the terms of the agreement, Open Market is to receive a minimum
of $14 million in guaranteed royalties for the Folio line of electronic
publishing products over three years.
-- ABSB is granted the following:
-- Exclusive worldwide marketing and distribution rights for three years
to Open Market's Folio products.
-- Rights to sell, support, maintain and further develop the Folio
products.
-- Non-exclusive worldwide rights to market and distribute Open Market's
Internet commerce software products to the commercial publishing
industry. ABSB will pay Open Market a minimum of $4 million over the
next two years in license fees for the commerce software.
-- An option, at the end of the three-year period, to obtain all rights,
title and interests to the Folio Products for fair-market value
consideration. |
