1m devices sold, page-109

P&G license the MicroArray Technology.

P&G place an order for MicroArrays directly to 3M.

3M currently manufacture & cut the MicroArrays and then forward them to P&G's preferred product manufacturing/assembly facility.

P&G assemble the MicroArrays into the relevant Magnetic Device products.

OBJ receive a royalty for individual Magnetic Device products and also for any product packages that incorporate a Magnetic device.

P&G sell these products to their Distributors @ Wholesale and OBJ receive 2-3% Royalty depending on the respective products and Licensing Term Sheets that are scheduled to the Master Licensing Agreement.

OBJ are paid 45 days in arrears following each quarter.

If any particular independent bricks & mortar or online retailer chooses to discount any products, it has no material effect on OBJ's or P&G's bottom-line, as both have already been paid on the Wholesale amount.