- 7 -
Paragraph 18 of the Marketing agreement stated:
This Agreement shall be initially valid for a period of
5 (five years) from the date of its signing by the last
of the two Parties. Unless terminated in accordance
with the provision of paragraph 19 (nineteen) below, it
shall be automatically renewed thereafter on a year by
year basis.[4]
The Marketing agreement was signed by Mr. Fares as president of
Matrix and by Mr. Werner as president of petitioner.
At the time the Marketing agreement was signed, petitioner
began incurring expenses, building inventory, and accruing
receivables. Petitioner also began accruing royalties owed to
Matrix under the terms of the Marketing agreement. Petitioner,
however, has never paid any of the accrued royalties to Matrix.
Prior to Matrix's first shareholders' meeting in April of
1984, Matrix estimated that by August of 1985 petitioner would
have positive cash-flow. Also, the shareholders of Matrix agreed
that although Matrix expected to accrue over $2 million in
royalties from petitioner by August 1985, Matrix would cause the
royalties to be retained by petitioner until petitioner's cash-
4Paragraph 19 states:
This Agreement may be terminated by either Party at any
time during its validity in case of breach of any of
its provisions by the other Party and failure to
correct the breach within 30 (thirty) days from
notification to that effect by the complaining Party to
the breaching Party.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011