IV. The party of the second part agrees to put forth their best efforts and use due diligence in the manufacture and sale of the Metallic Railroad-Ties containing the said patented improvements, and if the royalties do not amount to five hundred dollars semi-annually, the party of the first part may terminate this license by serving a written notice upon the party of the second part.
V. Upon the failure of the party of the second part to make returns or to make payment of license fees, as herein provided, for thirty days after the days herein named, the party of the first part may terminate this license by serving a written notice upon the party of the second part; but the party of the second part shall not thereby be discharged from any liability to the party of the first part for any license fees due at the time of the service of such notice.
_In witness whereof_, the parties above named have hereto set their hands the day and year first above written, at Chicago, County of Cook, and State of Illinois.
RICHARD DOE, _Metallic Railway Tie Company_, Per John Roe, President.
LICENSE:--EXCLUSIVE--WITH ROYALTY
_This agreement_, made this tenth day of January, 1901, between Richard Doe, of Boston, State of Ma.s.sachusetts, party of the first part, and the Roe Vending Machine Company, a corporate body under the laws of the State of New Jersey, located and doing business at the city of New York, in the State of New York, party of the second part,
_Witnesseth_, that whereas, Letters Patent of the United States, No. 000,000, were, on the first day of January, 1901, granted to the said party of the first part, for improvements in Coin-Controlled Machines, and whereas said party of the second part is desirous of manufacturing and selling said patented article: Now, therefore, the parties hereto have agreed as follows:
I. The party of the first part gives to the party of the second part the exclusive right to manufacture and sell the said patented improvements, to the end of the term of said patent, subject to the conditions hereinafter named.
II. The party of the second part agrees to make full and true returns, on the first days of January and July in each year, of all machines manufactured and sold by them containing the said patented improvements in the six calendar months next preceding the date of any such notice; and if the party of the first part shall not be satisfied in any respect with any such return, then shall the party of the first part have the right, either by himself or by his attorney, to examine any and all books of account of said party of the second part concerning any items, charges, memoranda, or information relating to the manufacture or sale of said patented Coin-Controlled Machines; and upon request made, said party of the second part shall produce all such books for said examination.
III. The party of the second part agrees to pay the party of the first part five dollars as a license fee upon every one of the said patented Coin-Controlled Machines manufactured by them, the whole of said license fee for each term of six months to be due and payable on the days hereinabove provided for semi-annual returns; provided, that if said fee be paid upon the days herein provided, or within fifteen days thereafter, a discount of fifty per cent, shall be made from said fee for prompt payment.
IV. The party of the second part agrees to pay the party of the first part at least two thousand dollars, less discount, as said license fee upon each of the semi-annual terms, even though they should not make enough of said patented machines to amount to that sum at the regular royalty of five dollars each.
V. The party of the second part shall cast, or otherwise permanently place, upon every such machine made under this license the word "Doe," and in close relation thereto the word "Patented," and the number and date of said patent.
VI. The party of the second part shall not, during the life of this license, make or sell any article which can compete in the market with said Coin-Controlled Machines.
VII. Upon the failure of the party of the second part to keep each and all of the conditions of this license and agreement, the party of the first part may, at his option, terminate this license, and such termination shall not release said party of the second part from any liability due at such time to the party of the first part.
_In witness whereof_, the above-named parties (the said Roe Vending Machine Company, by its president) have hereto set their hands the day and year first above written,
RICHARD DOE, _Roe Vending Machine Company_, By John Roe, President.
No general legal forms should be relied upon too implicitly as suiting particular cases, and an inventor, in order to fully protect his interests, should consult a reliable patent attorney, and have the forms properly prepared to suit his individual case.
[Ill.u.s.tration: Map of Continental USA]