the jda

I have my suspicions about the content of the intended JDA with the FMCG, announced a few days ago, so I put these to Mr Denison:

"I refer to yesterday's company announcement which refers to an FMCG having "commenced negotiations" with OBJ for a Joint Development Agreement "for the development and commercialisation of new products...". In this regard, could you please clarify the following:

1. Implicit in the announcement is the suggestion that OBJ and the FMCG have the intention of entering into a joint development agreement, but it's just a question of coming to mutually acceptable terms. Is that a correct interpretation of the announcement?

2. Furthermore, and in the same vein as 1. above, am I correct in inferring that it's not a question of "if" the FMCG develops and commercializes products using OBJ technology, but rather a question of "what" products and "when" they will be commercialized?

3. Will the subject matter of the JDA negotiations (and, indeed, the final terms JDA as executed assuming agreement is reached) include matters that are typical of licensing agreements, such as specified "milestone" payments, precise royalty amounts payable to OBJ, scope of exclusivity (i.e. specified product-types), and period of license?"

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His response:

"As announced, OBJ and the particular FMCG company are commencing negotiations for a JDA and these negotiations will cover a number of aspects concerning the development program. To that extent, when these discussions have reached a conclusion and an agreement has been reached, we will so inform the market as to the basic terms contained therein."

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Oh well ... at least he didn't dismiss my suggestions.