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Furukawa, and Sumitomo negotiated to try to eliminate these
problems. They signed a memorandum of agreement and confidential
memorandum of understanding in 1968 to amend the 1962 basic
agreement.
The Burndy-Japan shareholders signed a memorandum of
understanding on October 24, 1972, which provided, among other
things, that Burndy-US was "to have complete management control
of Burndy-Japan" except that the following actions required the
approval of all Burndy-Japan shareholders: (1) Change of
capital; (2) license agreements with third parties; (3) purchase
or sale of shares in Burndy-Japan or other companies; and (4)
payment of dividends. Burndy-Japan paid Burndy-US a management
service fee based on gross sales.
3. 1973 Basic Agreement
Furukawa and Sumitomo continued to manufacture connectors
after Burndy-Japan was formed. Farley believed Furukawa and
Sumitomo gave higher priority to selling their own connectors
than Burndy-Japan’s connectors. The Burndy-Japan shareholders
signed an agreement on March 13, 1973, to address these and other
problems.
On March 19, 1973, the Burndy-Japan shareholders signed
another agreement (1973 basic agreement) which provided the
following:
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Last modified: May 25, 2011