The following is a new business plan that is under development here. The current goal is to have it in place and ready to test by the middle of the year. I plan to start the company growth in earnest by the end of 2008, and then steadily take on more Developers as the growth can support it.

Division of Profits

This outlines the general direction of how profits will be divided up and directed per each concept that is placed.

1. Standard Deal for only developing a Concept to the point that it is licensed:
   1. Inventor Share of Royalties - 50%
   2. Sales and Marketing Share of Royalties - 30%
   3. Development Share of Royalties - 20%
2. External Concepts - a concept submitted by either an outside inventor or a non-Development employee.
   
   1. In the event that advance monies are requested by the inventor, the company will cover this rather than the licensee. 
      1. This advance money would be credited back to the company prior to the inventor receiving additional royalty monies.
         
   2. All agreements will be created so that the licensee will be responsible for the annual guarantee in the event that they decide to not pursue the production of the concept after confirming the license deal. 
3. Internal Concepts - a concept submitted by a Development staff.
   1. Standard Deal is the same as External Concepts.
   2. All salary money (not compensated for with paid project work) for that period would be deducted from royalty payments prior to further distribution to the inventor(s).
4. In the event that the licensee would like to continue the development of the item with the company resources, an additional percentage amount will be added to the deal to compensate for this. For example, if the deal is for 6%, then the final deal may be for 7%, with the extra percentage directed solely to the company. 
   1. The details of the amount of this additional share will depend on the project. It will be calculated based on the projected cost of the development services and the estimated first year sales projection. Effectively, the company would be able to amortize the cost of development over the products.
   2. In the event that the licensee did not decide to go ahead with production of the concepts, the company would retain the rights to the development work performed on the concept. This includes work done in conjunction with the licensee company.