EXHIBIT 10.1
[OPTICAL CABLE CORPORATION LOGO]
ROYALTY AGREEMENT
This agreement is made effective this first day of November, 1993, by and
between Robert Kopstein and Optical Cable Corporation (herein referred to as
OCC).
WHEREAS Robert Kopstein as an owner of the rights to certain cable manufacturing
techniques and equipment designs (hereinafter referred to as TECHNOLOGY) granted
him by Cable Technology, Inc., by agreement dated June 30, 1983.
WHEREAS Robert Kopstein desires to receive Royalty Payments for the continued
use of the TECHNOLOGY by OCC.
WHEREAS it is in the best interest of OCC to have the exclusive rights to the
use of the TECHNOLOGY without restriction.
Now THEREFORE the parties do hereby agree as follows:
1. Robert Kopstein hereby grants to OCC the exclusive license to use the
TECHNOLOGY without restriction for a period of one year.
2. Robert Kopstein shall not sell, transfer or further license the
TECHNOLOGY to any other parties for a period of one year.
3. OCC agrees to pay Robert Kopstein in Royalty Payment equal to 4.5% of
its net sales under the license granted herein. For each new
manufacturing facility established outside the continental United
States (utilizing the TECHNOLOGY), OCC agrees to pay Robert Kopstein an
additional 1.5% Royalty Payment. Total Royalty Payment shall be limited
to 10% of net sales generated by OCC and future affiliates utilizing
the TECHNOLOGY.
Example
Optical Cable Corporation Royalty (%)
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OCC + 1 additional overseas facilities 4.5
OCC + 2 additional overseas facilities 6.0
OCC + 3 additional overseas facilities 7.5
OCC + 4 additional overseas facilities 10.0
Said Royalty Payments are to be made by the close of each OCC fiscal year.
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Shipping Address: Phone No. (703) 265-0690 Mailing Address:
TELEX 705-290
5290 Concourse Drive FAX (703) 265-0724 P.O. Box 11967
Roanoke, VA 24019 Sales Dept. 1-800-622-7711 Roanoke, VA 24022-1967
/s/ Robert Kopstein /s/ Robert Kopstein
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Robert Kopstein Robert Kopstein
Optical Cable Corporation
[Notary Signature] /s/ Kenneth W. Harber
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Notary Kenneth W. Harber, Secretary/Treasurer
Optical Cable Corporation