Repository: UIHistories Project: Board of Trustees Minutes - 1920 [PAGE 159]

EXTRACTED TEXT FROM PAGE:

1918]

UNIVERSITY OF ILLINOIS

155

nois in cooperation with the party of the second part, and to apply for patents in such foreign countries as may hereafter be designated by the party of the first part. 2. It is agreed that all expense connected with the application for said patent, whether to the Patent Office of the United States or to some similar office in a foreign country, shall be borne and paid by the party of the second part. 3. In the event that patents on the process mentioned shall be issued to the parties of the third part, then the parties of the third part shall immediately after such issue assign and quit-claim the same to the party of the first part for a consideration of one dollar ($1.00) for each patent issued. 4. In consideration of the contribution of funds for the prosecution of the investigation of the coking of coal as aforesaid, and the expenses which shall be incurred in obtaining patents on the process, amounting to a total expenditure of over twelve thousand dollars ($12,000.00), the party of the first part agrees to execute to the party of the second part a license to the party of the second part for the use of the said patents, under the following terms: (a) That the license shall provide for the exclusive use of the patent by the licensee for a term of eight years from the date of this instrument; that the licensee shall have the right to use the patent in the operation of any corporation or company organized by him and in which he shall have a substantial financial interest; that the licensee shall not sublet the right to use the patent to any person, corporation or company except upon the approval of the party of the first part, and that the license shall become void at any time that the licensee shall fail to prosecute diligently the commercial development of the process for the coking of coal specified in said patent or patents. (b) That if at any time during the said period of eight years the party of the second part shall have become fully reimbursed for all expenditures connected with the commercial development of this process, he shall thereafter pay to the party of the first part such royalty as may be agreed upon at that time, based upon the weight of coal coked in the plant or plants which have been constructed. If an agreement concerning the amount of such royalty cannot be reached by the party of the first part and the party of the second part (licensee), then each of said parties shall appoint an arbitrator; and in the event the arbitrators thus appointed shall fail to reach an agreement, they shall be authorized to appoint a third arbitrator. A majority report of the three arbitrators thus appointed shall be binding upon both parties to this agreement. (c) That the initial license shall provide for its extension for the use of the patent or patents for the remainder of the life thereof, in such plants as may have been developed by the party of the second part (licensee), during the initial term of eight years: Provided, however, that the licensee shall pay to the party of the first part a royalty such as may be agreed upon at that time for all coal coked in said plants during the period covered by the second license. (d) That after the expiration of the initial license for the exclusive use of the patent or patents during the term of eight years aforesaid, the party of the first part will grant additional licenses covering the operation of new plants, which the party of the second part may desire to develop under such terms and royalties as may at