I like the content in this blurb as it provides some good visibility, BUT, I hope that there is good oversight and auditing of these TPL AND OUTSIDE EXPENSES.
Under terms of the Commercialization Agreement, the Company is required to pay a quarterly amount ranging between $500,000 and $1,000,000 (based upon a percentage of the working capital fund balance) to TPL for TPL’s supporting efforts to secure licensing agreements for the Company. During the years ended May 31, 2008, 2007 and 2006, the Company paid $2,952,362, $3,871,602 and $2,500,000, respectively, to TPL pursuant to the agreement. The Company is also required to reimburse TPL for payment of all legal and third-party expert fess and other related third party costs and expenses. During the years ended May 31, 2008, 2007 and 2006, the Company paid $12,894,053, $5,914,000 and $1,021,357, respectively, to TPL pursuant to the agreement. All of the amounts are recorded in general and administrative expense in the accompanying statements of income.
