Titan Technologies, Inc. signed a license agreement May 17th with three people -- Randall Gideon, Jim Samis and Patrick Teagarden -- for the exclusive right to build recycling facilities in North, Central and South America using Titan's tire recycling technology. The agreement provides for construction of up to twenty facilities within six years after the date of execution of the Agreement and seven facilities per year thereafter. The license fee for each plant of $1,000,000 will be payable to Titan in 40 equal monthly installments of $25,000 each beginning upon commencement of construction of each plant.
Additionally, the agreement provides that licensees will pay Titan royalty payments equal to 1.7 percent of total sales of all by-products produced with Titan's technology. Titan estimates that royalty payments will aggregate approximately $250,000 per year per plant at current market prices for the usual by-products of steel, oil and carbon black, assuming the processing of 150 tons of tires per day.
Titan will also receive a 10 percent ownership interest in the first plant, a 12 percent ownership interest in the second plant, a 14 percent ownership interest in the third plant, a 16 percent ownership interest in the fourth plant, an 18 percent ownership interest in the fifth plant, and a 20 percent ownership interest in the sixth and each subsequent plant. 
Licensees have indicated that the estimated cost of construction of each plant will be between $25-30 million, the entire cost of which they indicate will be financed; for a total construction cost of $500-600 million for the first 20 plants.