Document kDpLnqkdQ7R32pbz3d2aD5ooD

FILE NAME: Square D(SQD) DATE: 1967 Aug 3 DOC#: SQD001 DOCUMENT DESCRIPTION: Johns Manville Overseas Investments I August 3, 1967 C. B. B urnett T echnical A ssistance A greem ents O verseas Licensing and Investm ents I have req u ested th a t this subject be placed on the A genda for the A ugust 16 S taff M eeting. R ecently, som e question has been ra ise d reg ard in g the in te rp re ta tio n of B asic P o lic y No. 839, dated D ecem ber 12, 1951. The point in question involves the v ery la s t sentence in the basic policy: "T he tech n ical in fo rm atio n and know-how to be supplied w ill be lim ited to th at alread y developed and in co m m ercial use by us in the U nited S tates an d /o r C anada." D uring the sixteen y e a rs since th is policy was firs t w ritten, the In tern atio n al D ivision, w ith the approval of the Senior O fficers in each instance, and the B oard of D irectors w here a cash investm ent was proposed, has e n te re d into a p p ro x im ate ly 30 a g re e m e n ts providing fo r continuing know how, and 6 p a te n t lic e n sin g o r 'one sh o t' a g re e m e n ts . At the p re se n t tim e, In tern atio n al is engaged in negotiations fo r 4 new ag reem en ts involving continuing know-how. I enclose M r. R. S .O lso n 's re p o rt to m e dated A ugust 3, 1967, which outlines the h isto ry of technical a ssistan ce ag reem en ts, and points out that fu rth e r negotiations of the 4 pending ag reem en ts cannot be c a rrie d out until the question of in te rp re ta tio n of the old b asic policy is settled . It should be noted th at continuing know -how ag reem en ts contain p ro v isio n for "flow back" of im provem ents to J-M , p a rtic u la rly in such rap id ly grow ing in d u strie s as fib er g lass. This "flow back" of inform ation can have financial benefits to J-M equivalent to those accruing fro m ro y alties and dividends. O ur in te rp re ta tio n of B asic P olicy No. 839 has alw ays been that: (a) It did not p re v e n t continuing know -how a g re e m e n ts, and (b) th e w o rd in g in th e l a s t s e n te n c e r e f e r s to th e fa c t th a t J -M w ill not p ass know-how to a licen see until this know -how is in co m m ercial use in the U .S . or C anada. I b elieve this too should be m odified to include J-M 's know-how in E urope in its ' se v era l m anufacturing facilities th ere. Dudley T. Colton ' COPY BASIC POLICY INDEX NO. 839 DATE: D ecem b er 12, 1951 Subject: INVESTMENT OUTSIDE OF THE UNITED STATES AND CANADA: Statem ent of Policy: Investm ents outside of the United States and Canada w ill be m ade for the follow ing purposes 1. To provide so u rces of supply of n e c e ssa r y a sb esto s fib re. 2. To provide lon g-term m arkets for the sa le of asb estos fibre to m anufacturers of asbestos-cem ent products. 3. To capitalize upon our know-how and techn ical sk ills. As in the p ast, Johns-M anville w ill continue to sea rch out and exp loit, wheife d esirab le, opportunities to further th ese ob jectives, within the lim its of the follow ing policies: Where to Invest For w hatever purpose the investm ent is m ade, the foreign country in which it is m ade should have a governm ent, a general econom y and so cia l conditions which w ill be favorable to fair treatm ent of investm ents by foreign ers. The lim itation s on the ability of our organization to se r v ic e such p rojects should not be exceeded, in order that our in terests in other field s w ill not suffer. A sbestos Fibre D eposits We m ust be on the lookout for n ecessa ry additional b asic deposits of a sb esto s fibre of m agnitude for the follow ing reasons: 1. Known w orld supply of asb estos fibre is b a sica lly lim ited. 2. Our u sage requirem ents are substantial and growing, 3. Increased sale of fibre offers our best chance for in creased profit, 4. We want to develop a m arket so as to se ll fib res for balanced production. 5. It is our objective to have se v e r a l so u rces of supply sca ttered geographically so that "all our eggs w ill not be in one basket". 6. We can u se to advantage other types of fibre lik e those we are now purchasing, and we should reduce our dependency on th ese outside purchases. COPY - 2- The G eneral M anager of the A sbestos F ibre D ivision w ill m aintain an exploration unit adequately manned and equipped for the purpose of undertaking continuous prospecting for asb estos deposits any place in the world. He w ill make quarterly reports of work done and planned to be done, and w ill present to the officers for consideration every practical prospect for exploration, acquisition, or for long term arrangem ent that w ill help us to im prove our lon g-term supply and a backlog of d ep o sits, even though we do not undertake im m ed iate developm ent of the property. An adequate budget for carrying out this program each year w ill be subm itted to the Board of D irectors for confirm ation. Additional appropriation requ ests required for m ore elaborate testing and core drilling of lik ely prospects w ill be subm itted under the sam e procedure as u tilized for approving capital expenditures in order to bring them to the attention'of top officers to secu re backing and approval. Investm ent in F oreign M anufacturers of A sb estos-C em en t Products The prim ary objective of our investm ents in foreign m anufacturers of a sb esto sc e m e n t p ro d u cts i s the s e c u r in g and m a in ta in in g o f a lo n g -t e r m m a r k e t fo'r a s b e s to s fibre. When it is n ecessa ry , as an inducem ent for the sale of J-M short grade fib res, we w ill make sm all cash investm ents in com panies of this type. W here we take such stock in te r e sts, it w ill be our policy to purchase sm all in terests in sev era l of th ese a sb est-cem en t com panies, rather than purchase large in terests in any one or a few com panies. W here an en tirely new enterprise or product line is being launched and we would be called upon to supply consid erable know-how, we would require in return free stock in the com pany and/or a contract for fees and ro y a lties. The annual net profit after taxes from the sa le of asb estos fibre by the J-M International Corp. w ill be adopted as the yardstick for the m axim um aggregate in v e stm e n t by J-IS# in the c a p ita l s to c k s of su c h c o m p a n ie s . In d ivid u al in v e s tm e n ts w ill continue to be p resen ted to the Board for final approval before consum m ation. It w ill also be our p olicy to get out of th ese foreign investm en ts a ll the dividends we p ossib ly can. If funds becom e available that cannot be withdrawn from the country, we w ill con sid er putting th ese funds to w ork by rein vestin g them in the foreign com pany or in other b u sin ess ventures, rather than leave the funds id le, subject to approval by the Board of D irectors. F oreign Investm ents in Other B u sin esses of our Type Our in terest in such foreign com panies should be acquired by secu rin g free stock in the com p anies, or by m aking contracts for fee s and/or ro y a lties, or som e com bination of stock and fees or ro y a lties, in return for our supplying the original know-how and/or the supplying of consultation and se rv ic e in the setting up and control of the b u sin ess. ...... <k. . COPY - 3- N atives of the fo reig n country sh a ll be resp o n sib le fo r the m anagem ent of the b u s in e s s , have w orking co n tro l o f it, and sh a ll in e v e r y c a se su p p ly the m a jo rity of the cap ital req u ired for the e n terp rise. We are not d esiro u s of in v estin g c a sh in fo reig n com p anies to w hich we p ro p ose to s e ll know-how, but w here unusual opportunity e x ists we w ill con sid er m aking exceptions by making a cash investm ent which m ust be sm a ll in relation to the total investm ent. The r e tu r n on s u c h in v e s tm e n ts sh o u ld be at le a s t 50% b e tte r than i s d em an d ed fr o m a dom estic project. The technical inform ation and know-how to be supplied w ill be lim ited to that already developed and in com m ercial use by us in the United States and/or Canada. A p p roved by:__________________________ Chairm an of the Board D ate: R e fe r e n c e s: {In C h airm an of B o a rd 's f ile s u n le ss o th e r w ise s p e c if ie d .) B asic P o licy - "A sbestos F ibre D eposits - E xploration and A cquisition",.N o. 78-331, dated Septem ber 1, 1949. B asic P o licy - "Investm ent by Johns-M anville in foreign M anufacturers of A sb estosC em en t P r o d u c ts " , N o. 839, d ated Jan u ary 3, 1951; L.. M . C a s s id y 's m em o ra n d u m " F o r e ig n I n v e stm e n ts (O ther th an A s b e s to s F ib r e D eposits and A sbestos Cem ent Com panies)", dated Novem ber 6, 1951. DHQ International August 3, 1967 D. T. Colton Technical A ssistance A greem ents O verseas Licensing and Investm ents E ver sin ce the ea rly 1950's, the International D ivision has vigorou sly pursued a policy of seek ing out licen sin g arrangem ents covering a wide range of products and p r o c e sse s. M ost of these arrangem ents provided for the supply, by J -M , of continuing know -how during the u su a l 15 y e a r life of the A greem ent. In return, J-M u su ally receiv ed , in addition to royalties on net sa les for the life of the A greem ent, initial fees in the form of cash or apport (free) sh a res, or both. In m ost in sta n ces, J-M receiv ed s h a r e s in the new v e n tu r e , u s u a lly 15%. T h e s e a r r a n g e m e n ts have not b e e n a burden in tim e or expense to serv ice, and have been gen erally very sa tisfa cto ry to both J-M and the licen see; to J-M because of the substantial incom e provided together with asb estos fibre sa le s, in m any ca ses; and to the lic e n se e, as he has been kept up to date techn ically; and the m any renew als and exten sion of existin g A greem ents testify to th is. We have avoided, w here p ossib le, patent licen sin g and 'one shot' know how A greem ents because of the fact that, once the A greem ent had run its cou rse, J-M would receiv e no further incom e. C onsequently, we have, today, six active patent licen sin g or 'one shot' A greem en ts, as com pared to 30 A g ree m ents providing full know-how. Attachm ent A includes a graph showing resu lts of the past ten years incom e for 30 T echnical A ssistan ce'A greem en ts with continuing know-how. Included a lso is a d etailed lis t of incom e from each of th ese lic e n s e e s . The dip in 1962-'63 was a resu lt of reduction in dividends from M arinite Ltd. The growth in dividends and royalties per year of $551, 000 in 1957 to $1, 155, 000 in 1966, is the d irect resu lt of J-M 's continuing in terest in th ese op erations. Our se r v ic e in keeping our a ffilia te s up to date tech n ica lly has h elped u s, for the m ost part, in renew al of contracts when they expire. The slight downward trend shown in 1966 is a r esu lt of contract renew als at low er p ercen tage of roy a lty . In 1968, the pattern w ill be c o r re c te d and an upward growth again evident. The bottom of the graph shows our 6 Patent L icen se or lim ited T echnical A ssista n c e A greem en ts w ith ro yalty incom e of $53, 000 in 1957 r isin g to $170, 000 in 1966. In 1970, th is total royalty incom e stops due to expiration of Patent L icen ses in 1968 and 1970. D etails on this are a lso included in Attachment A. 2. Attachment B shows a typical exam ple of our 7 floor tile agreem ents, m o st of w hom have r e n e w e d th e ir c o n tr a c ts a fte r th e ir in it ia l 15 y e a r p erio d . D uring the p a st 10 y e a r s , we have r e c e iv e d $ 3 ,Z 8 5 ,0 0 0 in r o y a ltie s and dividends as w ell as accounting for 10 m illio n d ollars in fib re s a le s . In th is c a s e , our con tin u in g k n ow -h ow h a s ta k en the fo r m of- a s s is t a n c e in d e s ig n of new products, etc, as sev era l lic e n se es are w ell ahead of J-M in production te c h n iq u e s. Attachm ent C concerns our a sb esto s-cem en t and M arinite operations, which gave us approxim ately two m illion d ollars in royalties and dividends over the p ast 10 y e a r s . F ib re sa le s am ounted to 14 m illio n d o lla rs during this period. (See details in attachm ent). In other field s, such as packings, tex tiles, insulations, filter aid s, fiber g la ss, m ineral w ool, friction m aterials, and ACE, a constant flow (both w ays) of tech n ical inform ation is required in order to keep our a ffilia tes com petitive and give us a return com m ensurate with the w ork involved. S um m arizin g over the p a st 10 y e a r s , total in com e r e c e iv e d fro m our 30 T echnical A ssista n ce A greem ents am ounted to approxim ately 10 m illio n d ollars as received , while our incom e from the 'one shot' and patent licen se agreem ents amounted to $1, 088, 000. A ttachm ent D su m m arizes our arrangem ent with Nippon G lass F iber C o ., Ltd. This is p articu larly interesting as it is an exam ple of a Patent L icense and 'one sh ot' A g r e e m e n t J -M in h e r ite d fr o m LO F w h ic h .w a s la te r r e n e g o tia te d to provide for continuing know-how which proved im portant to the custom er and financially rewarding to J-M . Attachment E sum m arizes our experience in licen sin g m ineral wool know how. This is in terestin g because it illu stra tes the benefits we have receiv ed from two arrangem ents involving full know-how w ith R oclaine in F ran ce, and Bradfords in A u stralia, as com pared with a patent lic e n se agreem ent only with four other m in eral w ool com p an ies, J-M 's incom e from the fir st two ap p roxim ated $5, 270, 000 for the 15 y e a r life of the A g r e e m e n t, as com p ared to $1, 451, 000 from the four patent licen se agreem ents. Furtherm ore, R oclaine's A g reem en t w as r en eg o tia ted and exten d ed fo r another 15 y e a r s c o v e rin g both m ineral wool and fiber glass wool, Bradfords have just signed an A greem ent fo r an ad d itio n a l 15 y e a r s c o v e r in g fu ll and con tin u in g k n ow -h ow on fib e r g la s s w ool, As a contrast, the four other agreem ents w ill term inate in about two years with no further p rosp ects of incom e for J-M . tru st that you w ill find th ese exam ples helpful in your d iscu ssio n s with the Senior O fficers this m onth when the policy on foreign licen sin g is to be review ed. * 3. As of the m om ent, a num ber of pending agreem ents providing for fu ll and continuing know-how are being held, exam p les of which are as fo llo w s:- 1. WOOD PERU - B rake B locks - P eru: The w riter negotiated this arrangem ent providing for continuing know how on brake blocks last January, subject, of cou rse, to approval of the Senior O fficers, I am quite sure Wood P eru w ill not be in terested in 'one shot' know-how, esp ecia lly sin ce I understand that their lo ca l com petition, already estab lish ed , re ce iv es continuing know-how from R ayb estos. 2. BRADFORD INSULATION - AUSTRALIA: The granting of fu ll know-how on fiber g la ss to B radford in A u stralia was approved by the Senior O fficers. A greem ents w ere prepared and subm itted, and during the past w eek I have receiv ed back th e sig n e d cop ies. T hese A greem ents rem ain to be signed and executed by JohnsM anville. T his, I am advised by W, P . S. B reese, cannot now be done until the policy m atter involving continuing know-how is reso lv ed . 3. BRAM EC-SURI - INDIA; This arrangem ent covers asb estos tex tiles and packings, and n ecessa ry approvals w ere receiv ed to'proceed with this arrangem ents. The signed A greem ent has just been received , and I am advised that it cannot be ex ecu ted by J -M , again until the m atter d e sc r ib e d in (2) above is c la r ifie d . 4. DEEGLAS FIBRES - ENGLAND; Another pending arrangem ent is with D eeglas in England, covering fu ll and continuing know -how on fiber g la ss continuous strand products and p r o c e sse s. You w ill reca ll that we offered this a.few w eeks ago for a 7-1/2 year period in return for certain fees and roy a lties. You m entioned the fact that you had clea red this m atter with C. B. Burnett prior to m aking the offer, and that it had h is approval. Attachs. / R. S. OLSON STY TAXES PRESENTLY WITHHELD AT SOURCE IN COUNTRIES IN WHICH J-M HAS LICENSING ARRANGEMENTS Australia - 'Tax oti Royalty - None Germany - Tax on Royalty - None Dalami, France ? Royalty - None Dividends - 15% Chile - Royalty - 37%% Dividends - 18%% Peru - Royalty - 26% Dividends - 26% Belgium - Royalty - None Dividends - 15% Argentina - Royalty - 10 - 38.36 - 15% Dividends - 8% The above is the present rate of tax withheld according to the information we have available. DETAILED TEN-YEAR INCOME FROM 30 TECHNICAL AS? 1957 D iv ... Roy. 1958 D iv. Roy. M arinite Ltd. 1 9,767 Fademac Belgium 1 5 ,3 5 6 R oclain e S.A . 4 ,2 7 5 Dalami S.A . 6 ,4 1 2 R oclain e Espanola Isorel* S.A . U niversal A sbestos A .B. Ifoverk en Dansk E te r n it > F o th e r g ill & Harvey M olnlycke V a fv e r ia k tie b o la g C o n t in e n t a l Gutmni Werke A sb estos de M exico 1 4 ,4 0 0 MEISA A sberit M agnebras Sociedad In d u str ia l P izarreno 10,998 Fabrica Peruana 4 ,5 6 6 M anufactures M u ltip les Fademac A rg en tin a P r a ti Vazquez Fibras A isla n te s Shree D igvijay Bradford In su la tio n 4 ,4 6 7 C olon ial Sugar Kubota K enzai F inanciere B eige / Nippon G lass F ib er Pibco P riv a te L td. Toko P e r lit e 27,503 112,106 4 3 ,2 1 0 5 0 ,3 8 0 4 ,3 7 5 70,753 4 8 ,0 2 0 3 1 ,0 7 9 8,083 6 ,5 0 0 1 2 ,2 5 0 2 6 ,6 6 9 3 9 ,7 9 9 3 1 ,5 7 2 20,908 6 ,4 2 2 8 ,9 3 0 4 0 ,7 4 1 1 3 3 ,0 7 9 4 8 ,6 9 7 6 0 ,8 6 2 4 ,2 6 4 500 7 9 ,3 5 6 4 4 ,1 9 2 1 9 ,4 9 5 5 ,1 8 7 437 18,707 6 ,7 7 4 9 ,8 6 1 9 ,7 5 0 7 ,0 0 8 2 5 ,1 6 2 5 7 ,5 8 6 $ 70,241 $ 480,709 $ 99,959 $ 539,531 $ 5 5 0 ,9 5 0 $ 6 3 9 ,4 9 0 TANCE AGREEMENTS WITH CONTINUING KNOW-HOW 1959 D iv. Roy. 1960 D lv. Roy. 1961 Div. Roy. 100,353 20,921 7 ,3 3 2 1 1 ,0 1 2 3 9 ,9 5 3 130,233 6 1 ,0 2 7 1 3 2 ,7 0 8 1 6 ,7 5 8 9 ,8 1 0 1 4 ,2 8 7 3 8 ,2 8 3 1 6 4 ,8 7 8 8 7 ,7 6 4 1 4 4 ,1 2 6 1 8 ,8 0 5 1 2 ,2 6 0 1 9 ,4 4 5 1 8 ,9 4 7 1 7 9 ,8 0 2 3 9 ,9 2 4 5 0 ,4 2 7 13,065 3 ,9 4 1 ' 375 6 ,3 4 4 6 1 ,6 1 8 4 ,1 2 2 1 ,7 0 7 9 3 ,1 9 6 4 4 ,1 9 2 4 5 ,2 2 2 . 1 6 ,6 3 2 6 ,2 4 5 1 0 ,0 4 4 9 ,3 0 0 1 9 ,4 8 0 1 9 ,0 5 0 6 5 ,2 7 1 2 ,3 6 2 1 ,6 8 2 1 0 1 ,5 6 3 5 ,0 0 0 1 1 ,0 1 2 5 ,9 0 2 1 6 ,4 5 2 9 ,6 2 3 2 9 ,4 3 0 7 1 ,6 7 8 9 ,4 3 4 4 8 ,4 0 8 7 7 ,6 4 9 723 3 5 ,5 0 4 80,05 2 5 8 ,4 9 1 575 232 9 5 ,7 2 2 1 2 ,0 0 0 8 ,0 2 3 1 2 ,0 3 1 1 ,0 2 2 1 7 ,5 8 6 5 ,1 9 3 3 3 ,1 0 4 1 7 ,2 9 8 3 5 ,3 2 0 6 5 ,8 9 8 6 5 ,1 5 0 5 1 ,6 2 7 " $213,770 $580,100 $266,749 $671,308 $331,084$661,549 $ 7 9 3 ,8 7 0 $ 9 3 8 ,0 5 7 $ 9 9 2 ,6 3 3 A-l DETAILED TEN-YEAR INCOME FROM 30 TECHNICAL 1962 D iv. Roy. 1963 D iv. Roy. M arinite Ltd. 8 5 ,8 5 1 Fademac B elgium 1 5 ,0 4 4 R oclaine S.A . 2 2 ,0 2 4 DaIami S.A . 2 3 ,4 0 9 R oclain e E spanola I s o r e l S.A. U niversal A sbestos A .B. Ifoverken Dansk E tern it F o th e r g ill & Harvey M olnlycke V a fv e r ia k tie b o la g C o n t in e n t a l Gumml Werke A sb esto s de M exico MEISA A sberlt M agnebras Sociedad In d u str ia l P izarreno Fabrica Peruana 2 1 ,9 8 2 M anufactures M u ltip les Fademac A rgen tin a 1,275 P r a ti Vazquez Fibras A iSlantes Shree D igvijay Bradford In su la tio n 1 9 ,4 2 7 C olon ial Sugar ; Kubota K enzai F inanciere B eige Nippon G lass F ib er Pibco P riv a te Ltd. Toko P e r lit e 1 6 ,0 5 8 2 0 9 ,6 2 8 3 9 ,7 8 8 62,182 336 1,630 89,107 12,000 8 ,1 6 8 4 3 ,4 3 1 8 ,0 0 0 7 6 ,1 2 1 6 2 ,6 2 1 16,251 9 3 ,4 6 9 * $ 1 8 9 ,0 1 2 $ 7 3 8 ,4 6 9 $927,481 3 8 ,0 7 5 1 3 ,2 4 9 3 9 ,1 5 0 2 8 ,6 1 1 a 1 2 ,8 7 1 2 1 5 ,7 3 2 4 6 ,2 3 7 7 0 ,0 7 3 620 1 ,1 2 0 8 4 ,7 8 5 12,941 13,285 1 6 ,3 0 5 6 ,8 8 0 2 7 ,3 7 9 6 ,1 5 9 424 2 4 ,0 0 9 8 7 ,3 3 8 6 0 ,3 8 3 3 1 ,1 3 9 7 0 ,3 4 0 1 8 ,0 0 0 $169,744 $755,361 $925,105 ISTANCE AGREEMENTS WITH CONTINUING KNOW-HOW 1964 D iv. Roy. 1965 D iv. Roy. 1966 D iv. Roy. 7 0 ,5 6 1 1 6 ,9 3 6 4 3 ,8 4 2 3 6 ,3 9 1 1 2 ,0 3 4 219,215 5 4 ,5 2 8 5 7 ,4 9 6 6 6 ,1 5 0 420 504 7 2 ,5 3 8 8 3 ,2 8 6 7 ,2 4 2 5 7 ,6 4 2 1 4 ,2 9 9 8 ,0 9 3 3 6 ,4 9 8 1 0 ,8 6 4 1 1 ,9 0 9 110,099 77,085 2 4 ,3 0 4 109,271 9 5 ,9 4 5 2 5 ,2 4 5 5 2 ,6 1 1 . 3 9 ,0 2 0 4 ,2 6 0 2 2 8 ,0 9 1 3 6 ,6 5 4 1 1 ,3 2 0 7 6 ,8 0 6 2 7 ,9 1 3 5 9 ,5 2 2 265 689 6 4 ,9 1 1 2 ,0 0 0 101,825 3 1 ,5 2 9 4 9 ,7 7 3 4 4 ,2 1 5 1 9 ,2 1 3 . 2 ,9 0 0 1 8 9 ,8 8 2 1 5 ,0 0 0 5 ,0 5 9 4 8 ,6 4 1 6 7 ,4 3 8 1 ,1 1 4 529 729 1 5 ,0 0 0 9 ,6 6 6 1 9 ,2 5 7 1 0 ,0 0 0 1 4 ,4 2 9 5 9 ,5 1 2 2 1 ,0 6 3 1 0 ,2 3 7 2 2 ,1 2 8 2 9 ,0 0 6 1 3 3 ,2 7 3 8 3 ,4 8 3 w aived 1 1 8 ,8 7 7 2 0 ,4 6 2 2 2 ,0 0 0 6 ,6 4 6 4 6 ,6 4 0 1 9 ,6 0 8 1 5 ,1 7 1 2 0 ,3 9 7 2 0 ,7 4 7 2 1 ,3 4 4 1 3 5 ,0 0 0 9 5 ,7 3 1 w aived 1 2 8 ,2 7 0 $373,396 $827,811 $ 1 ,2 0 1 ,2 0 7 $404,145 $842,372 $ 1 ,2 4 6 ,5 1 7 $342,303 $812,226 $ 1 ,1 5 4 ,5 2 9 A -2 DETAILED TEN-YEAR INCOME FROM 6 PATENT LICENSE OR LIMITED TECHNICAL ASSISTANCE D eutsche Rockwool A. S . Rockwool Rockwool Akt. I/S Kahler Hyderabad A sb estos Cement P rod u cts F lbraceT -S.A . 1957 R02^, 1958 Roy. 1959 Roy. 1960 Roy. 1961 Roy. 1962 Roy. 1963 Roy. 1964 Roy. 1965 Roy. 1966 Roy. 4 ,4 9 3 5 ,5 8 7 2 1 ,6 9 1 8 ,7 1 8 7,406 6,813 26,111 10,925 6 ,4 1 2 8 ,5 6 2 3 0 ,4 9 9 1 2 ,7 0 1 9 ,8 7 4 1 1 ,7 5 0 3 8 ,1 4 7 1 7 ,4 2 0 12,988 9,000- 9 ,0 0 0 9 ,0 0 0 1 1 ,1 2 6 1 5 ,0 5 9 . 4 2 ,1 1 0 2 1 ,1 7 4 1 0 ,7 7 3 17,743 4 8 ,2 3 2 2 5 ,0 3 4 8 ,6 9 8 8 ,6 9 6 8 ,9 0 0 1 8 ,7 7 7 5 1 ,7 2 6 2 8 ,3 7 0 8 ,7 0 6 1 0 ,0 0 6 2 1 ,2 4 1 6 2 ,6 9 0 2 9 ,5 1 2 8 ,6 8 6 1 2 ,4 2 9 12,292 2 5 ,7 4 9 2 2 ,5 8 7 7 0 ,1 8 7 8 4 ,8 1 6 35,305 39,151 .* 4 2 ,3 0 0 * 4 ,7 0 0 7,686 6,705 $ 5 3 ,4 7 7 $60,255 $67,174 $86,191 $ 9 8 ,1 6 7 $110,478$116,143 $132,135 $193,656 $170,251 * I n it ia l Fee A -3 0-20 ROYALTY __________ A4 DECEMBER I 966 RECEIVED FROM: INCOME 4 th QUARTER 12 MONTHS General Headquarters F oreign Agreements Floor T ile C olonial Sugar R efining C o n tin e n ta l Guirnni - Werk, A.G. Fabrica Peruana E te rn it S.A. Dalami -S.A. Fademac - A rg en tin a S,A, Fademac - Belgium Soc. Ind. Pizarreno A sbestos Cement James Hardie Francaise E te rn it A sbestos De Mexico E ternit P hillippines Ifoverken Kubuta K enzai Kogyo K aboshi K aisha Shree D ig v ijay Cement Co. L td . Hyderabad Asb. Cement Prod. L td. Dansk, E te rn it F in a n c ie r B eige De L 'A sb e sto s Cement , James Douglas S tre e t Rock Wool A. S. Rockwool Bradford In su latio n Deutsche Rockwobl M ineral G e se llsc h a ft H. J . H endrikson & C. K ahler Rockwool A ktieb o lab et R oclaine Co. S ociete-Isorel Sanecoustic T ile Otto S. Jensen Widen & Wigle Thermo F le x F e l t Delaney .G alley, L td. In su la tin g Board F ib r a c e l S.A . Mexico.. A sbestos - M illb o a rd ... Indabest - F ilasbest T ex tiles & Packings A sb e rit S.A. F rictio n M aterial M anufaeturas M u ltip les S.A. P ra ti -Vasquez Ig le sia s Spun M in eral Wool Pibco P riv ate Ltd. Armstrong Cork P la stic Sheeting U n iv e rsa l Ash. Mfg. Co. L td . Accounting Dept. *Contra* TOTAL 2 , 310 21,063 6,539 25,505 1,000 135,091 i 1,019 1,170 1,680 195,377 95,731 15,000 15,172 15, 000 V 5, 060/ 2 ,3 2 0 / 4o,671 V 5,000 * 900* 3,515. 67,438 311 21,412 ' 4,700 26,114 20,000 1,000 22,587 135,091 13,311 39,151 84,816 189,882 ,, 5,059 1,012 7,736 1,170 6,705 17,7443,800 865,608 xrri-sfvbTiH.-V: 0-20 ROYALTY AS DECEMBER 1966 RECEIVED FROM: ______________INCOME +th QUARTER 12 MONTHS Spun M in e ra l Wool U nited S tates Baldwin-Ehret H ill, Inc. . Chem Rock Corp. Tex Ark Rockwool Corp. U .S . M in e ra l Wool Co. U .S. Pipe & Foundry Co. R a tio n a l Gypsum Canada - Holmes Foundry C o ., L td . A ssoc. M in e ra l Wool M odigliani Glass F iber American A ir F i l t e r Co. D rico In d u s tria l Corp. Standard E le c tric Co. U .S . Gypsum Dolomite G lass F ib res In c. M l Other N icolet Ind. Inc. Dynatech Corp. Wood C onversion Co. S tre s s k in P rod. Co. Phoenix P recisio n Instrum ent U.S.- Pipe & Foundry H. I . Thompson F ib e r G lass Co. F lin tk o te Turner B rothers Asb, Co. L td. K eller p o tte ry Co. P ittsb u rg h P late Glass Johns-M anville F ib e r Glass Products U nited S tates F iber Glass In d u stries Langley Processing E xter M anufacturing Corp. Coast M anufacturing & Supply Hess, Goldsmith & C o., Inc. J . P. Stevens Crown C e n tr a l P etro leu m Corp. C lark -S eh w ab el F o re ig n Molnlycke V a fv e ria k tieb o la g Nippon G lass F ib ers F o th e rg ill & Harvey L td. A ccounting D ept. 2/6/67 ' TOTAL TOTAL TOTAL , TOTAL TOTAL GHQ TOTAL GRAND TOTAL C ontra* 5,316 1,093 1*58 7,903 2,613 " 17,383 r 559. 1.233 1,792 lo, 1*16 3,029 6,599 11,332 61,376 399 52 260 1,063 54,984 4,475 61,233 ~ 337,161 37 15 119 1* 2l* 29 87,056 67,284 424,1*45 32,159 6,385 4,548 7,682 34,1*00 10,909 96,063 1,936 4,526 6,462 122,907 . 12,065 26,563 33,746 5,873 201,154 1,200 907 207 960 14,837 237 166,365 20,951 l4o 15,666 221,470 1 , 390,777 60 271 149 4o 74 115 . 729^ 195,396 529' 197,363 1,588,140 f e > v >(.v