License Considerations: Variations in population, residential and construction market opportunities, government housing requirements, consumer demand, demand for licensing in the territory, and various other factors will contribute to determining the market value of the license fees.

Manufacturing Considerations: Initial production capacity required, potential for increased capacity, core sizes of BuildBlock ICFs required, type and number of manufacturing facilities established, current steel and aluminum prices required for molds, components of the plant to be produced locally, the potential to use existing local EPS facilities, investing in web molds for BuildBlock plastic webs vs. importing the webs, and various other factors will determine the initial investment required to establish BuildBlock ICF manufacturing in your territory. Also, the prices of Raw Materials (Expanded Polystyrene Beads and Polypropylene) fluctuate with the market. BuildBlock will give your organization raw-material-per-block estimates for the product lines you will produce so that your organization can effectively estimate the production costs, price points for your market, revenue and profit margins for your BuildBlock ICF business. All of these areas will be addressed with serious licensing candidates through discussions and negotiations. icense agreements with BuildBlock typically include some combination of the following elements:

License Issue Fee – The initial license fee will secure exclusivity to manufacture, sell, distribute, display, use, and import the patent pending BuildBlock ICF products in the licensed territory. The fee will also cover some amount of training and technical consulting, transfer of “know how”, usage of BuildBlock trademarks, and sharing of technical and marketing materials. All current and future BuildBlock ICF products are included in the licensing agreement.

Performance Obligations and Developmental Milestones – The license agreement will establish pre-market entry commercialization milestones and post-market entry sales targets.

Running Royalties – Running Royalty fees are paid on sales of the licensed technology and may be calculated as a percentage of sales, or on a per-unit basis.

Annual License Fee – Re-occurring Annual License Fees may be used when it is difficult to determine royalties.

Minimum Annual Royalties – Minimum Royalties are established to assure the continued development and marketing of BuildBlock technology by the licensee. Actual royalties are expected to meet or exceed the minimum annual royalty requirement.