DE PA
Exhibit 10.2
SUB-LICENSE AGREEMENT
AGREEMENT made and entered into as of the 1st day of July, 1980, by and
between INSITUFORM OF NORTH AMERICA, INC., a corporation organized and existing
under the laws of the State of Delaware, hereinafter referred to as "North
America" and Insituform East, Inc. of Hyattsville, a Delaware corporation,
having a principal place of business at 0000 Xxxxxxxx Xxxx, Xxxxxxxxxxx,
Xxxxxxxx, hereinafter referred to as "Operator";
WITNESSETH:
WHEREAS, North America has valuable experience in the practice of
certain inventions, know-how and techniques comprising the subject matter of
this Agreement and possesses valuable information with respect thereto;
WHEREAS, North America is the exclusive licensee of INSITUFORM
INTERNATIONAL, INC., a corporation organized and existing under the laws of the
Netherland Antilles having a principal place of business at X.X. Xxx 000,
Xxxxxxx, Xxxxxxxxxx, Antilles, hereinafter referred to as "International",
throughout the United States of America except California, of certain know-how,
patent rights and inventions relating to methods, apparatus and materials used
in the lining of sewers, tunnels, pipelines and other passageways by
impregnating an absorbent layer with a synthetic resin, and retaining such layer
in place in such passageway while the layer cures or is cured and any
improvements thereon, and
WHEREAS, Operator is desirous of gaining knowledge of such inventions,
know-how, techniques, and information and an exclusive right and license within
and throughout the territory listed on Schedule A herein to use the same
together with any and all patent rights and copyrights relating thereto under
which North America has or obtains the right to grant licenses therein;
NOW, THEREFORE, in consideration of the mutual covenants and
undertakings set forth herein, the parties hereto agree, as follows:
I. DEFINITIONS. As employed herein:
A. "Territory" shall mean that geographical area set forth on Schedule
A within which Operator may exploit the various inventions, know-how, patent
rights, techniques and information granted herein.
B. "Subject Matter" shall mean and include all methods, apparatus and
materials used in the lining of sewers, tunnels, pipelines, and other
passageways excepting those used to carry aromatic hydrocarbons in a gaseous
state by impregnating an absorbent layer with a synthetic resin, and retaining
such layer in place in such passageway while the layer cures or is cured.
C. "Know-how" shall mean and include all technological information,
ideas and techniques relating to the Subject Matter now owned or subsequently
acquired by North America or which North America subsequently acquires the right
to communicate to its licensees within the United States of America except
California except any information, ideas or techniques which are common
knowledge to the industry or which are readily available from sources other than
North America.
D. "Patent Rights" shall mean and include the patents and patent
applications designated in Schedule B attached hereto and made a part hereof
together with any and all other patents and patent applications relating to the
Subject Matter in the Territory under which North America has, or hereafter
acquires, the right to license others.
E. "Copyrights" shall mean and include any and all copyrights at common
and/or statutory law within the Territory which relate to plans, brochures,
instructions or other means of expression having to do with the Subject Matter
including photographs, diagrams and other visual presentations, or useful in
connection with the commercialization thereof, which North America has, or
hereafter acquires, the right to license others.
F. "Materials" shall mean and include any and all compositions,
products, components and other materials, whether patented or unpatented, for
use in the practice of the Subject Matter. Such Materials shall include by way
of illustration but not of limitation, the resin absorbent material, the
impervious sheet material, the thermosetting resin and any and all other
materials which go into the lining of passageways or the like in accordance with
the Patent Rights except for such fuels as may be required for energy purposes.
G. "Apparatus" shall mean and include but not be limited to any and all
tools, equipment, instruments, machines, and devices, whether patented or
unpatented, for use in the practice of the Subject Matter.
H. "Royalty" shall mean an amount payable by Operator to North America
equivalent to 8% of the gross contract price of all contracts performed by
Operator utilizing the Subject Matter as further defined herein.
II. GRANT. North America hereby grants Operator an exclusive,
non-transferable right and license within and throughout the Territory:
A. To utilize the Know-how, to practice the inventions of the Patent
Rights relating to the Subject Matter, and to sell the resultant product;
however, the Subject Matter may not be used to line tunnels, pipelines and
passageways carrying aromatic hydrocarbons in the gaseous state;
B. To use any and all Copyrights, if there are any, as an adjunct to
the practice of such methods and the commercialization thereof; and
C. To use and display "Insituform" as a trademark in connection with
each and every aspect of the exploitation of the Process including but not
limited to all materials, apparatus and products sold hereunder purchased from
North America or a source recommended and approved by North America, all
equipment, letterheads, invoices, advertising signs of all types and printed
material shall bear appropriate insignia acknowledging such products, material
or equipment as under exclusive license from Insituform of North America, Inc.
D. The Operator hereby acknowledges that the Subject Matter is a new,
specialized and highly technological process and the exploitation thereof
throughout the United States will best be served by the grant of exclusive
licenses to carefully selected Operators for various defined Territories in the
United States.
E. It is specifically understood and agreed that the grant of this
exclusive license for the Territory is based upon the size and ability of the
Operator to exploit the demand for the Subject Matter within the Territory and
the nature and scope of the Territory has been determined accordingly. The
Operator further understands and agrees that North America retains the right to
grant exclusive Licenses to other Operators in other defined Territories; and
F. It is mutually anticipated that Operator will exploit the Subject
Matter in the Territory for the benefit of the Community involved. If however,
the Operator should seek to exploit the Subject Matter outside of his exclusive
Territory and in an area where an exclusive license has already been granted, he
shall pay the exclusive licensee of such Territory a royalty of 8% of the gross
contract price of all installations utilizing the Subject Matter in such areas
in addition to the normal royalty payable to North America as set forth in
Paragraph IX herein. The Operator performing the work must also ensure that
satisfactory arrangements are made to provide a full and complete after-sales
service for the job involved; and
G. North America is granting exclusive licenses for the exploitation of
the Insituform process in certain defined Territories, however, it reserves the
right to vary or otherwise modify the nature and scope of subsequent licenses
granted to subsequent licensees to accommodate specific territories and
population considerations and other factors.
H. In connection with his exploitation of the exclusive license granted
herein, Operator understands the importance of his after sales responsibilities
and agrees to provide prompt and efficient service to all those whether within
or outside of his Territory, for whom it has performed any functions utilizing
the practice of the Subject Matter.
III. ADEQUACY OF CONSIDERATION. It is specifically understood and
agreed that the exclusive licenses defined in Paragraph II above relating to the
specific territory set forth on Schedule A, and the Royalty defined in Paragraph
IX shall be deemed adequate consideration for this Agreement.
IV. AVAILABILITY. Since the Insituform Process and the installation
thereof is highly technical, its success in large part, is dependent upon
quality materials made to exacting specifications and North America shall make
available for purchase by Operator, Apparatus and Materials designated by and
for North America as required properly to operate hereunder. Such Apparatus and
Materials which are not covered by any of the Patent Rights or Copyrights hereof
may be purchased from any source Operator desires. However, all such purchases
by Operator will be subject to North America's approval of the quality and
specifications thereof. North America may in its sole discretion improve, vary
or otherwise upgrade the specifications and quality standards to which the
Operator must abide.
V. DISCLOSURE AND TRAINING. Promptly upon execution of this Agreement,
Operator shall purchase the Apparatus and Materials required properly to operate
hereunder, and North America thereupon shall fully disclose to Operator all
Know-how, Patent Rights and Copyrights, if any, required in the practice of the
methods of the Subject Matter, and shall train at least four (4) representatives
of the Operator in the practice of the methods described above. Further, North
America shall provide a continuing education program to the end that all lining
of sewers, tunnels, pipelines and other passageways in accordance with the
Subject Matter shall be effectively and efficiently performed and the resultant
product of uniformly high quality. The content, extent, and frequency of the
educational program shall be solely at the discretion of North America. At the
request of Operator and subject to availability, North America will provide a
technician experienced in the operation of the Subject Matter to assist the
Operator and to render advice subject to payment by the Operator of all direct
traveling and hotel expenses and a per diem rate which shall be agreed upon
between the parties.
VI. PRESERVATION OF SECRECY. As North America considers its know-how
and technique to be a key element in the successful exploitation of the
Insituform process, it insists that the Operator exert every reasonable effort
to keep in strict secrecy the improvements therein, and modifications thereof
disclosed to Operator by or on behalf of North America and all plans, drawings,
specifications and other data and documents relating thereto and to the Subject
Matter, except as may be necessary, and only to the extent necessary, to
exercise its rights hereunder; and shall not reveal or communicate, or permit,
or cause to be revealed or communicated, the same to any person, firm or
corporation, except as above noted; and shall make diligent effort to see to it
that its officers, employees, agents, sub-contractors, and all others under its
direction or control to whom the same is communicated properly pursuant to the
purposes of this Agreement fully observe and abide by such obligations of
secrecy. Such Operator will sign the form of Non-Disclosure Agreement attached
hereto as Schedule C contemporaneous with the execution of this Sub-license
Agreement and will cause its employees and others to execute such non-disclosure
agreement.
VII. STANDARDS AND INSPECTION. Operator shall maintain a high standard
of quality in all products made with the practice of the methods of the Subject
Matter and in all other products sold hereunder under the trademark
"Insituform". Pursuant to the maintenance of such standards, North America may
periodically inspect Operator's practice of the methods of the Subject Matter.
Operator shall cooperate fully with North America in such inspections and shall
promptly put in effect all suggested improvements in its practices of the
methods of the Patent Rights made by North America which are economically
practical and are reasonably calculated to result in an improved product and
service. At all times Operator shall exert diligent effort to practice the
methods and techniques in accordance with the best available technical
information and advice received from North America for the general benefit of
the Community within the specific territory.
VIII. IMPROVEMENTS AND MODIFICATIONS.
If during the term of this Agreement, the Operator or his
employees, develop any improvements or modifications in the Subject Matter, all
such information must be disclosed immediately to North America and will become
the property of North America. North America is obliged to disseminate all such
information and material to all of its licensees for their mutual benefit and
the benefit of those they serve.
IX. ROYALTY.
A. The Operator will pay to North America a gross Royalty equal to 8%
of the invoiced price of all contracts for the installation of the Subject
Matter including preparatory and finishing work therefor carried out by the
Operator in his or any other Territory, such invoiced price being calculated
after adding back trade discounts and other preferences and deducting packaging
and shipping charges and any applicable taxes, provided however that such price
is invoiced at the going commercial rate and in the event that the Operator
carries out installations in the Territory at other than a fair commercial price
then for the purposes of calculation of royalty due in respect of such work, it
will be assumed that the Operator performed such installations at the current
market price.
Within 45 days after the end of each calendar quarter or
portion thereof the Operator shall submit to North America full details of all
work performed utilizing the Subject Matter during such calendar quarter, the
total of amounts invoiced and a computation of the royalty due, such computation
being accompanied by payment in full in favor of North America for the Royalties
due.
B. Minimum Royalty Obligation
During the year commencing twelve (12) months from the date hereof,
Operator undertakes and agrees to pay North America a total royalty of not less
than US $115,000.00. Should Operator fail to generate sufficient royalties as
per Paragraph IX A above to achieve such minimum payment, he may contribute such
additional amounts so as to meet the minimum set forth herein. In meeting the
minimum royalty obligation hereunder, only royalties realized from work
performed within the Operator's Territory will be included in such calculation.
The Operator is further obligated, beginning twenty-four (24) months from the
date hereof and continuing for each and every subsequent and successive twelve
(12) month period during the term of this agreement, to pay to North America, a
total Royalty of not less than US $115,000.00 subject however, to increases or
decreases of such amount as related to the Cost of Living Index as compiled by
the U.S. Department of Labor for each 12 month period. Any such contribution due
from the Operator to North America to meet the minimum set forth herein shall be
made within 45 days after the end of each relevant 12 month period.
C. Non-Payment.
Should Operator fail to pay the Royalties set forth in this Paragraph
IX herein a timely manner, North America shall have the right pursuant to
Paragraph XIV hereof, TERMINATION, to terminate its agreement with the Operator.
X. RECORDS. Operator shall keep true and accurate records of all
operations of the Subject Matter. Such records shall be adequate to permit North
America to verify the accuracy of the Royalty Paragraph IX hereof and to perform
inspection called for in Paragraph VII. Such records shall be open at reasonable
times during regular business hours for inspection and copying by North America
and its duly authorized agents and representatives. North America shall make
such periodic inspection of the records as it may consider necessary, provided
always that International, the owner of the Patent Rights sub-licensed
hereunder, or North America may from time to time require a specific audit to be
carried out on Operator's operations hereunder and in such event such audit
shall be undertaken by North America with a representative of International in
attendance if International so elects. Such audits shall be at the expense of
the party requiring the audit unless the audit discloses a violation of this
Agreement in which event the party requiring the audit shall be reimbursed the
expenses of the audit by the party in violation.
XI. WARRANTY.
By North America. North America represents and warrants that it is the
exclusive licensee of International throughout the United States to the Patent
Rights described on Exhibit A and fully entitled to enter into this Agreement.
North America further represents and warrants that the Subject Matter can
successfully line many types of sewers, tunnels, pipelines and other passageways
when said methods are properly performed and that it will instruct Operator in
such performance. Every reasonable precaution will be taken by North America in
producing all Materials and Apparatus, compiling all data, and offering
instructions in the methods of use of the Materials and Apparatus purchased from
North America for operation hereunder to assure that they comply with North
America's exacting standards and that the ultimate lining for sewers and other
passageways maintains a high standard of quality. To the best of North America's
knowledge, all information given will be correct and the Materials and Apparatus
are believed by North America to be adequately suited to the purposes intended.
However, it is impossible to anticipate every possible variation in the manner
of use or the conditions under which the Operator will apply the Materials,
Apparatus, Know-how, data, and methods and North America makes no warranty as to
the results which the Operator will attain, and shall under no circumstances be
held responsible for any such results that occur as a consequence of a departure
from the instructions provided or from negligence or malfeasance on the part of
Operator except as may be contained in the specific written warranty provided by
North America with regard to any materials furnished by North America. North
America makes no representation nor warranty as to the validity of any of the
Patent Rights hereof, other than that it has no knowledge of any basis on which
any of the issued patents is invalid; no representation nor warranty that
performance in accordance with this Agreement will not infringe any existing or
subsequently issued or pending patent, other than that it has no knowledge of
the existence of any such patent, and no representation nor warranty that
"Insituform" is available for use as a tradename, trademark, and/or certificate
xxxx in the United States other than it believes it to be. Further, North
America shall not be held responsible for use by the Operator of any such
Materials, Apparatus, Know-how, data or method in such a manner as to infringe
any patent, trademark or copyright owned by another. North America agrees not to
sell its Materials or Apparatus hereof below its cost in violation of any
applicable provision of any antitrust or unfair trade practice statute and to
charge all Sub-Licensees of the Patent Rights Royalties according to the same
scale or formula.
By Operator. Operator agrees to indemnify, defend and hold North
America harmless from any and all claims for bodily injury including death,
personal injury and damage to property of Operator, North America and/or others,
which arise from the alleged negligence or malfeasance of Operator or from the
existence or use of Materials and/or Apparatus acquired from sources other than
North America or which are produced by Operator.
The Operator also agrees at its expense to procure a policy or policies
of insurance from an insurance company or companies satisfactory to North
America, providing coverage for the operations of the Operator, including
product and completed operations, with minimum limits of Two Million Dollars
($2,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) annual
aggregate for injury to persons and Two Million Dollars ($2,000,000.00) annual
aggregate for damage to property. The operator also agrees to have North America
named as an additional named insured under the above described policy or
policies and to cause North America to be furnished with a Certificate of such
insurance which shall contain a requirement that North America be notified
thirty (30) days prior to any cancellation or any reduction in coverage or
limits. The insurance required above shall commence prior to the time the
Operator commences operations under this Sub-License Agreement and shall
continue in force throughout the life of the Sub-License Agreement until it
expires or is terminated.
XII. DILIGENCE. Operator understands that the Subject Matter has been
designed to meet the growing needs of Community and Commerce within his
exclusive Territory and his license has been specifically granted on the
understanding that he will use all reasonable endeavors to create a demand
within the Territory for the Insituform products, and shall fill such demand all
as good businesslike conduct requires. It is specifically understood and agreed
that nothing herein provided shall be construed as requiring Operator to operate
in accordance with any designated marketing plan or system which, except for the
maintenance of high standards of quality, the exercise of diligence and the
performance in accordance with the terms and conditions hereof, are left to the
determination of Operator.
XIII. TERM. The Term of this Agreement shall commence on the date first
above written and shall continue for the life of the last to expire of the
patents or the Patent Rights including any improvements or modifications thereto
extending such life, unless sooner terminated as hereinafter provided.
XIV. TERMINATION
A. By Operator. The Operator may terminate this Agreement at any time
by service of written notice to such effect on North America two (2) calendar
quarters in advance of the effective date thereof and by complying with the
applicable terms and conditions of Paragraph XIII C hereof. During such period
after notice but prior to actual termination, Operator shall not bid or accept
any additional jobs without the written consent of North America.
B. By North America. In the event Operator becomes insolvent such that
his liabilities exceed his assets or files a petition in bankruptcy, or commits
an act of bankruptcy, or a receiver is appointed for Operator, or in the event
Operator breaches any material term or condition of this Agreement and fails to
correct the same within fifteen (15) days following written notice thereof by
North America, or once having been notified and having corrected such a breach
repeats the same North America may then at its sole option, declare the
agreement terminated immediately. Further, in the event Operator fails to
provide computations of royalty or stops paying royalty within fifteen (15) days
of when due or Operator fails to meet his minimum royalty obligation in
accordance with Paragraph VIII hereof, North America may terminate this
Agreement at any time by service of written notice of termination hereof on
Operator a calendar quarter in advance of the effective date hereof.
C. Consequences. Upon termination of this Agreement by either of the
parties hereto, Operator shall immediately pay North America all Royalties then
due from it; terminate all use by it of the word "Insituform" as a tradename,
trademark, and certification xxxx; avoid all subsequent use of all tradenames,
trademarks, and certification marks likely to be confused with "Insituform" as
well as all stationery, invoices, signs or other visual devices displaying or
otherwise associated with "Insituform"; terminate all use of the methods, as
well as the manufacture, use and sale of the products of the Patent Rights,
Copyrights, and Know-how; and assign to North America free of charge all claims
to and any and all rights arising from the use of "Insituform", or combination
involving "Insituform", in the specific Territory, and return to North America
all materials, instruction manuals, devices and other apparatus. Operator herein
agrees to abide by all of the terms and conditions of the non-disclosure
agreement despite the termination of the license agreement.
XV. Notices. Any notice required or permitted to be given or served
upon either party hereto pursuant to this Agreement shall be sufficiently given
or served if sent to such party by certified mail, postage prepaid addressed to
such party as set forth below or by telex, or to such other address as it shall
designate by written notice to the other party, as follows:
In case of notice to North America:
x/x Xxxxxxxx Xxxxxx & Xxxxx
Professional Corporation
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
In case of Notice to Operator:
Insituform East, Inc.
c/o Sadur and Xxxxxxx
0000 X Xxxxxx XX
Xxxxxxxxxx XX
XVI. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns with the specific understanding that the Operator shall not assign this
Agreement without written permission of North America except to a wholly owned
subsidiary and on the express condition that the assignor guarantee the
performance of its assignee hereto strictly in accordance with the terms and
provisions hereof.
XVII. EXCLUSIVE LICENSE. North America has herein granted an exclusive
license to the Operator together with its Know-how, technical experience and
training program for the exploitation of the Insituform process within and
throughout the defined Territory. If, despite North America's best efforts to
maintain the exclusivity of its licenses and defend its Patent, Trademark and
Copyright protections, should such exclusivity and/or protections be terminated
for any reason whatsoever, the Operator hereunder is nevertheless obligated to
comply in full with each and every term and condition of this agreement
including, but not limited to the payment of Royalties to North America and the
maintenance of high standards of quality and service.
XIX. EXCLUSIONS. In the event that any one or more of the provisions of
this Agreement is, or are, held to be invalid it is agreed between the parties
that if legally practical said provision or provisions shall be considered never
to have been contained herein and the Agreement shall otherwise continue in
force and effect.
XX. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto with respect to the Subject Matter hereof and
supersedes all prior oral and written understandings and agreements between the
parties hereto concerning the Subject Matter. The provisions of this Agreement
shall not be waived, modified or amended, except by a subsequent writing signed
by both parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
INSITUFORM OF NORTH AMERICA, INC. OPERATOR
By /s/ Xxxx X. Church /s/ Xxxxxx X. Xxxx III
SCHEDULE A
STATE OF DELAWARE
and the following counties in the State of Pennsylvania
Xxxx Xxxxx
Susquehanna Bradford
Tioga Clinton
Lycoming Xxxxxxxx
Wyoming Lackawanna
Monroe Carbon
Luzerne Columbia
Montour Northumberland
Xxxxxx Union
Centre Xxxxx
Xxxxxxx Huntingdon
Mifflin Juniata
Perry Delaware
Dauphin Philadelphia
Lebanon Lancaster
Schuylkill York
Northampton Xxxxx
Lehigh Cumberland
Bucks Xxxxxxxx
Xxxxx Xxxxxx
Xxxxxxxxxx Xxxxxxx
Xxxxxxx Somerset
SCHEDULE
UNITED STATES PATENT
#4,064,211
INSITUFORM OF NORTH AMERICA, INC.
x/x Xxxxxxxx Xxxxxx & Xxxxx
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
July 10, 1980
Insituform East, Inc.
0000 Xxxxxxxx Xxxx
Xxxxx 000
Xxxxxxxxxxx, Xxxxxxxx 00000
Gentlemen:
This is to confirm our various discussions with regard to Section IX
Warranty, as described in the Sub-License Agreement dated July 10, 1980.
North America hereby agrees to replace any faulty bag manufactured by
North America in which there is a proven defect in either workmanship or
material where Insituform East ("East") can provide physical proof of such
defect and has so notified North America within twelve (12) hours of discovery
thereof and allowed them to inspect such defect.
In addition to replacing the defective bag, North America will also
reimburse East for all of its out of pocket costs for chemicals and resins
utilized in connection with the installation of the bag provided such costs are
fully supported by original vouchers, receipts, invoices and checks in payment
thereof.
Further, North America will also reimburse East for the labor and other
incidental costs up to a maximum of $2,000 that may be incurred by East as a
result of the defective bag. East shall support these costs with original
vouchers, receipts, invoices and checks. Such maximum payment of $2,000 shall be
adjusted yearly in accordance with fluctuations, if any, in the Cost of Living
Index as compiled by the United States Department of Labor.
East agrees, in addition to notifying North America of any defective
bag and retaining any physical proof thereof, to take any and all possible
action to minimize monetary or other damage resulting from such defect.
If this letter sets forth our agreement, kindly execute the enclosed
copy and return it at your earliest convenience.
Very truly yours,
/s/ Xxxx X. Church
ACCEPTED AND AGREED
/s/ Xxxxxx X. Xxxx, III
INSITUFORM OF NORTH AMERICA, INC.
x/x Xxxxxxxx Xxxxxx & Xxxxx
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
July 10, 1980
Insituform East, Inc.
0000 Xxxxxxxx Xxxx
Xxxxx 000
Xxxxxxxxxxx, Xxxxxxxx 00000
Gentlemen:
This is to acknowledge our agreement that to the extent that Insituform
East Inc. as a sub-licensee from North America of more than one exclusive
territory pays an amount in excess of its annual minimal royalty obligation in
one territory and is unable to pay its annual minimum obligation in another of
its territories, the excess paid in one territory may be applied in full toward
meeting its annual minimum royalty commitment to North America, Inc. on the
other territory.
If this agreement confirms to our understanding, kindly execute a copy
of this letter and return it to me.
Very truly yours,
/s/ Xxxx X. Church
ACCEPTED AND AGREED
/s/ Xxxxxx X. Xxxx, III
INSITUFORM OF NORTH AMERICA, INC.
x/x Xxxxxxxx Xxxxxx & Xxxxx
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Insituform East, Inc.
000 Xxxxxxxx Xxxx
Xxxxx 000
Xxxxxxxxxxx, Xxxxxxxx 00000
Gentlemen:
We would refer to the Insituform Licenses granted by us to your company
and dated 10th July 1980.
In relation to Clause IX headed Royalty we confirm that in computing
the invoiced price of all contracts involving the installation of the Insituform
Process you may deduct the following:
(a) Fees billed for preparatory T.V. survey work but not including the
immediate T.V. survey which is recommended as part of the installation process.
(b) Fees billed for overpumping provided that these shall not exceed
$2,000 per line.
(c) Fees billed for incidentals including cleaning not directly
relating to the installation but performed in conjunction therewith provided
these do not exceed 3.5% of the total contract price.
We believe the above reflects our understanding of the discussions
between us and we should be grateful if you would confirm same by signing and
returning to us within 7 days the duplicate copy of this letter.
Yours faithfully,
/s/ Xxxx X. Church
P.A. Church
Director - Insituform of North America, Inc.
STATE OF NEW YORK )
: SS
COUNTY OF NEW YORK )
On this 10th day of July, in the year of 1980, before me Xxxxxx X.
Xxxxxxxx, a Notary Public in and for said County and State, residing therein
duly commissioned and sworn, personally appeared Xxxxxx Xxxx, known to me to be
the Vice-President of the corporation that executed the attached instrument and
acknowledged to me that he knows the seal of said corporation, that the seal
affixed to the attached instrument is the said corporate seal, that it was
thereunto affixed pursuant to its by-laws as a resolution of its Board of
Directors and that he executed the instrument in behalf of the corporation by
like authority.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
XXXXXX X. XXXXXXXX /s/ Xxxxxx X. Xxxxxxxx
----------------------------------------------
Notary Public, State of New York Notary Public in and for Said County and State
No. 00-0000000 My Commission Expires:
Qualified in Rockland County
Certificate Filed in New York County
Commission Expires March 30, 1982
