ADTC Message Board - Msg: 2121888

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Jan 29 9:30 AM EST

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To: Richard N Lambert who wrote (66)	9/5/1997 7:39:00 AM
From: pres/ceo	of 329

Rich, You are quite correct on royalty equation. The duration is important. We estimate this royalty stream will be from 5-10 years, not two. Licensing fees "usually" are upfronts fee paid to acquire an initial license. They can be quite substantial depending upon scope and terms. For instance, we have received licensing fees in the past anywhere from a few thousand to more than million. There is no one formula, each case is negotiated on its own merit. In some cases we compete with our licensees. However, usually it is a level of polite competition. We are planning to place the equipment in our existing facility. However, other capacity expansion is under consideration which would require us to move warehousing out of our existing facility. Sage: try sage.com. I need to double check from my office. sincerely, G.J.Walters

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