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SMITHSONIAN INSTITUTION 795
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Made By Baker-Vawter Co.
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litigation, unusual expenditures and for such other purposes as sound business practice would justify and safeguard the business against future contingencies. It is agreed, however, that only such sum shall be accumulated in said reserve as can be justified considering the nature of the business and the proper administration of the Letters Patent or process.

Research agrees to keep said reserve invested in the same type of securities as it selects for its surplus from other operations and the income from the investment of said reserve shall be added to the returns from the insecticide in computing net profits. After setting up the reserves as herein provided, fifty per cent (50%) of the net profits shall be paid to Smithsonian and fifty per cent (50%) to Research.

The fiscal year of the enterprise shall be January first to December thirty-first.

Research agrees that the name of Smithsonian shall not be used in any advertising matter, or in any way endorsing, recommending, or as responsible for the technical value of the insecticide, or its efficacy.

The quality of said insecticide when and if marketed shall be standard, and Research agrees to obtain the approval of the Bureau of Standards and/or the Department of Agriculture of the United States Government as to the quality of the said insecticide, provided it is within the province of the Bureau of Standards and/or the Department of Agriculture to grant such approval.

IT IS AGREED between the parties that nothing in this agreement shall be construed to make Smithsonian responsible for any of the losses that might be incident to the investigation and/or exploitation of said Letters Patent and Research agrees to save Smithsonian harmless from any losses whether by suit or otherwise growing out of the investigation and/or exploitation of said Letters Patent; and it is further agreed that nothing in this agreement shall be construed to make or constitute Research the agent of the Smithsonian for the development and/or exploitation of said Letters Patent.

Smithsonian reserves the right of recapture of said Letters Patent on six months' notice when the public interest appears to demand it. On receipt of said notice Research agrees to discontinue all negotiations in connection with the said Letters Patent and use its best efforts to liquidate said business in connection there with in accordance with said six months' notice and when liquidated distribute any net profits and unexpended reserve as may be on hand act the termination of said business--fifty per cent (50%) to Smithsonian and fifty per cent (50%) to Research.

IT IS AGREED that at any time during the commercial exploitation of said Letters Patent and/or the insecticide that Research may discontinue the commercial introduction of said insecticide, in which event Research will reassign to Smithsonian said patent, and distribute any net profits and/or any reserves that may be on hand at the termination of said business-- fifty per cent (50%) to Smithsonian and fifty per cent (50%)
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