I have been emailing Glyn over the past few weeks to try and...

I have been emailing Glyn over the past few weeks to try and clear up my uncertainties as to the wording of the Performance Rights Milestones. I believe I now understand their meaning and thought I'd share these communications as they might help other shareholders. The reason for seeking this clarifications is not just to know how to vote on the resolutions at the AGM. Its also so we can evaluate the meaning of updates in probability of success that we
will receive over the next 3 years at the end of each reporting period. Knowing what these milestones mean will help us know where we are and where we are heading.

[Note : All questions/replies below were sent by me and replied to by Glyn;  Some of these responses I have posted previously. Other hc users have asked similar questions]

this one requires no clarification but I include it here for completeness. This clearly refers to Coty. The only interesting thing is that the milestone is pegged to the royalty receipt rather than a license agreement. If you go with P&G as the example, its a full year after the license agreement is signed before we are likely to see a royalty payment. Add to that a 6 month margin of safety, and we are looking at signing with Coty no later than mid 2016 (hopefully a lot sooner).

My interpretation of all of that is that Milestone 2 could be met in many different ways including :

• GSK analgesic
• GSK oral (toothbrush)
• P&G laundry care or similar
• BodyGuard

You might be surprised I included GSK oral.  Well I think its clear that oral care is not skincare/beauty/grooming, and even though it has been labelled as FIM in OBJ communications, there is no way to know that is does not contain ETP tech (unless someone has heard this from management). Refer to the trial toothbrush design shown in OBJ's annual reports.  The tech is contained in flat V shaped bits of plastic on the brush side, and a flat piece of plastic on the back side.  These may or may not contain ETP tech.

So basically all income types (more or less) will contribute towards meeting this milestone.  Its not what I would have thought from reading the Notice, but its good that its cleared up before the AGM.