nder, or in any event not later than November 1,
1928, Licensee will decide whether it will proceed with the manufacture
of engines hereunder, or not. If Licensee decides in the affirmative
then it will pay Licensor forthwith the sum of Five Thousand Dollars
($5,000.00) as advance on royalties and as minimum royalty for the first
production year. If Licensee decides in the negative for reasons which
are under the influence of Licensor, then Licensee will give Licensor
notice and sufficient time to try to correct possible imperfections, and
the time for final decision will be correspondingly extended. If the
reasons for the negative decision are under the influence of Licensee,
then Licensee will grant to Licensor an oral conference at Detroit and
explain the reasons in detail. In event a negative decision is finally
rendered by Licensee this agreement may be terminated at any time
thereafter upon sixty (60) days' notice in writing to Licensee and both
parties released from all further obligations hereunder.

9. Licensee agrees that if after three (3) years from the date hereof
Licensee is not manufacturing and does not contemplate the manufacture
of, a certain size and type of aircraft engine which Licensor would like
to grant another manufacturer the right to build and which would not
reasonably compete with anything manufactured by Licensee, Licensee will
release such size and type aircraft engine from the exclusiveness of
this license and thereby permit Licensor to grant a license to such
other manufacturer to make, use and sell such engine and such engine
only.

10. Licensee agrees to pay royalty on all engines manufactured and sold
or used under this agreement, based on effective brake horsepower under
normal load, as follows:

On each of the first Five Thousand (5,000) such engines produced
and sold in any one calendar year, the royalty shall be at the rate
of Twenty-five Cents ($.25) per horsepower; and on all over Five
Thousand (5,000) in such calendar year, at the rate of Ten Cents
($.10) per horsepower;

provided that, after a total of Fifty Thousand Dollars ($50,000.00) has
been paid in royalties the royalties shall be reduced one-half (1/2).

11. After the beginning of the second year of production, Licensee
agrees that if the royalties under the above schedule amount to less
than Ten Thousand Dollars ($10,000.00) per year then the royalty shall
be Ten Thousand Dollars ($10,000.