Tom. W. Benoist letter to Edwin L. Reed & Company - September 23, 1915

Transcript

[St. Louis Car Company letterhead] St. Louis U.S.A. [September] 23 [1915] Mr Tom W. Benoist, c/o St. Louis Car Co., St. Louis [Missouri] Dear Sir:- Referring to contract dated [September] 20th., between the ST. LOUIS CAR COMPANY and EDWIN L. REED & CO, of Chicago, [Illinois], covering the construction and sale of one sample Benoist type hydroplane, it is hereby understood and agreed as follows:- That you are to furnish all designs, specifications, etc., in accordance with those originally furnished Reed & Company on this type of hydroplane, and that you are to superintend the construction of this machine in our shops. You are also to furnish all details, information and assistance essential for a successful demonstration to Reed & Company, or their Principals, or others. You likewise hereby grant permission to the St. Louis Car Company to build this machine, based on your patents and designs, and should the demonstration result in quantity order now being negotiated, you agree, in consideration of royalties you are to receive as provided for, to protect the St. Louis Car Company against any infringement litigation. We are to furnish shop space, and all labor and material necessary, with the exception of services performed by you personally, and are to render every assistance possible to facilitate completion of first machine. The selling price as embodied in contract with Edwin L. Reed Y Co. referred to above, is $6500.00 which on delivery of machine, is to be divided as follows:- $3800.00 is to be paid St. Louis Car Company for labor, materials, shop expense, etc. 500.00 is to be paid to you for royalty and use of your designs. Out of the $6500.00 also is to be paid whatever expense becomes necessary incidental to the demonstration and delivery of machine. Balance is to be divided evenly between you and your Associates (50%) and the St. Louis Car Company (50%) as profit. Should Reed & Co. earn $1000. refund provided for in contract dated [September] 20th. that amount is to be paid out of $6500. deposit before profits are divided. It is further agreed and understood that designs used in construction are to remain your property, and that in the event that we succeed in obtaining a quantity order through other sources than Reed & Company, your charge for royalty is not to exceed $500.00 per machine, contract for this amount of royalty having already been executed with Reed & Company, covering your royalty protection on their prospective quantity contract. Mr Benoist