BioGenesisSM . . . Cleaning today for tomorrow™ September 20, 2005 Keith Parker, Chairman/CEO Summit Environmental Corporation, Inc.
BioGenesisSM .
. .
Cleaning
today for tomorrow™
September
20, 2005
Xxxxx
Xxxxxx, Chairman/CEO
Summit
Environmental Corporation, Inc.
000
X.
Xxxxx Xxxxxx
Longview,
TX 75601
Re:
Reduction of periodic royalty, Letter of Intent dated April 27, 1998, between
BioGenesis
Enterprises, Inc. and Summit Technologies, Inc., subsequently Summit
Enterprises, Inc. and Summit Technologies, Inc., subsequently Summit
Environmental
Corporation, Inc.
Dear
Xx.
Xxxxxx:
This
letter serves to document the agreement between BioGenesis Enterprises, Inc.
(BGE) and Summit Environmental Corporation, Inc. (SECI) to modify the royalty
provisions of the Agreement dated April 27, 1998, with Amendments 1 to 6,
and
associated correspondence in December 1999, in which BGE transferred to SECI
the
intellectual property rights to a unique fire suppressant technology in exchange
for certain cash payments and periodic royalties.
Paragraph
4 of the Agreement established a periodic royalty of $0.50 per aerosol fire
extinguisher and an equivalent (approx. 7%) on all other product categories
using the fire suppressant technology. One-half of all periodic royalty fees
due
to BioGenesis shall be credited against the Advance Royalty fee (until fully
recovered) and one-half shall be paid to BioGenesis in cash on the
30th
of each
month based upon invoiced sales through the close of the preceding
month.
During
May 1999, the price and availability of one of the components of the aerosol
fire extinguisher significantly escalated such that the extinguisher could
not
be competitively priced to the market without reducing its cost. To assist
SECI
in managing the extinguisher cost, BGE agreed to reduce its periodic royalty
from $0.50 to $0.40 per aerosol fire extinguisher, effective May 1, 1999,
with
all other terms of paragraph 4 of the Agreement remaining the same.
The
agreement to reduce the royalty was not documented at the time due to
administrative oversight. This letter corrects that oversight. If you agree
with
this modification, please signify by your signature in the space
below.
|
Very
truly yours,
|
Acknowledged
and Agreed:
|
|
BioGenesis
Enterprises, Inc.
|
Summit
Environmental Corporation, Inc.
|
|
/s/
Xxxxxx X. Xxxxxx
|
/s/
Xxxxx Xxxxxx
|
|
Xxxxxx
X. Xxxxxx
|
Xxxxx
Xxxxxx
|
|
President/CEO
|
Chairman/CEO
|
__________________________________________BioGenesis
Enterprises, Inc.
0000
Xxxxx Xxxxxxx Xxxx. Suite B-208 Springfield, Virginia 22150 USA TEL (000)
000-0000 FAX (000) 000-0000
Exhibit
10.9
