From today's SEC report
"As stated above, TPID’s 5% Revenue Share from the AQSIQ Chinese National Gas Tank Contract alone is conservatively estimated to be $15 Million per year. TPID will also receive the same revenue share from any other project and contract with AQSIQ under AQSIQ’s 2007 Official National Special Equipment Security Standards Circular to anti-counterfeit other Chinese special equipment, including medical gas tanks, elevator parts, automobile manufacturing equipment, amusement park apparatus, and cell phone batteries. AQSIQ has advised Saddington that Saddington should immediately commence the preparations needed to roll out a commensurate Chinese national campaign for a second category of special equipment, elevator parts, which revenues are expected to be comparable to those for the Chinese National Gas Tank Project.
TPID will also receive the same revenue share from the Chinese National Car and Motorcycle Part Contract with the China Federation of Industry and Commerce Auto & Motorbike Parts articles for Use Chamber of Commerce (as reported in TPID’s press release on Business Wire on October 24, 2006), the Chinese Painting and Calligraphy Contract with the Beijing & Calligraphy Collector Association (as reported in TPID’s press release on Business Wire on March 8, 2007 and November 16, 2007), and the Chinese Pharmaceutical Contract with Helida (Xinyang) Pharmaceuticals Co., Ltd.
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Under the first agreement, TPID shall also have the exclusive rights (exclusive even to Saddington) to market and distribute the technology perfected by Saddington in the course of the AQSIQ Chinese National Gas Tank Contract for the United States, Europe, and other parts of the world outside Asia. For an initial five year term, TPID shall be able exclusively market and distribute the perfected technology in the United States on a royalty-free basis. For Europe and other parts of the world outside Asia, TPID’s exclusive distribution rights are subject to the same revenue 5% sharing arrangement which Saddington has given to TPID for the AQSIQ Chinese National Gas Tank Contract and other Chinese contracts. Saddington will help TPID market and fund contracts in the United States and Europe. TPID and Saddington have entered to a separate License Agreement memorializing and consistent with the above license arrangement.
In return, Saddington will receive the all rights to the intellectual property of TPID, TPID Beijing, and TPID Hong Kong, including all trademarks, patents, marks, and logos; all rights of TPID, TPID Beijing and TPID Hong Kong to all contracts with AQSIQ, including the AQSIQ Gas Tank Contract; the AQSIQ Gas Tank Joint Venture; and any and all other contracts in Asia; all of TPID’s and TPID Hong Kong’s fixed assets in Asia; all of TPID’s and TPID Hong Kong’s business in Asia, including the right to use the business name of TPID in Asia; TPID’s interest in TPID Beijing; and the entire share capital of TPID Hong Kong. Consistent with these above terms in the Asset Sale Agreement, TPID, TPID Beijing and Saddington have entered into separate Irrevocable Bill of Sale and Deed of Indemnity in respect of taxation. Consistent with these above terms in the Asset Sale Agreement, TPID, TPID Beijing and Li Ning (who was the inventor listed on TPID Beijing’s Chinese patent application) have entered into separate Assignment of Patent Rights."
