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As Cameron was not financially ready to make such a commitment; the options were either to wait for a year in order to generate more profits and financial stability, or to license the production of the flexible coupling.
In the spring of 2004 Alex signed a five years licensing agreement with McTaggart Supplies Ltd., McTaggart had to pay $100,000 fee in advance for the help of Cameron to set things up and a royalty of 3% on the first ?1 million of sales and 2% on the second million. McTaggert was obliged to give a free technology flow-back to Cameron in case they reached any improvements.
Important to know that Alex signed the licensing agreement within a week; he did not take advice from his managers, he did not have any legal aid or lawyers, he was not fully aware of the licensing agreements and royalty rates...
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