• Subscription-based license covers internal distribution within an organization and wholly-owned subsidiaries.
• Subscription fee is based on the total number of end-users during a one-year period, and may be upgraded as needed.
• An end-user is defined as any person or machine that has access to application functionality that is implemented in full or in part, in Allegro CL.

The subscription fee is based on the total number of end users using the software during a particular year.

A Value Added Reseller (VAR) is an organization who builds a product for resale that includes Allegro CL technology.

Franz Inc. offers two VAR licensing options:

1. Early Stage VAR License:

VAR pays a percentage of product revenue that includes the Allegro CL technology. This option is designed for start-up organizations to begin using our technology with minimal initial cost.

• VAR pays nominal initial Royalty Fee
• VAR pays a percentage of all Allegro CL-based product revenue on a quarterly basis

2. Established Business VAR License:

VAR makes an up-front payment commitment based on estimated product revenue that includes Allegro CL technology (lower per-unit pricing than with Early Stage License). This option is for mature organizations that are confident of their revenue stream.

• VAR pays a minimum Royalty Fee based on the percentage rate desired by the VAR.
• VAR pays a percentage of all Allegro CL-based product revenue on a quarterly basis.
• Percentage rate may be adjusted by committing to longer term contracts and by increasing the amount of committed revenue.