specifications, to be furnished by UNIVERSAL and UNIVERSAL guarantees that such unit will be capable of a yield of not less than Fifty percent (50%) of Initial Boiling Point-End Point Navy Gasoline by distillation and cracking of average 24/25 gravity California crude oil, or Forty-five percent (45%) of average 19/25 gravity California fuel oil and this guaranty as to yield is to be determined upon completion of the erection of the unit under UNIVERSAL'S usual conditions as to test runs with UNIVERSAL'S own engineers and operators in charge covering the running of ten thousand (10,000) barrels of charging stock. The method of making tests for determining the percentage of gasoline yield guaranty, as herein defined, shall be according to the method prescribed in UNIVERSAL'S existing license contracts, namely by distilling the pressure distillate produced by the process in Engler flask with Hempel dephlegmator and the yield therefrom of Initial Boiling Point and End Point, herein defined, shall be considered to be the yield of gasoline produced by the process. SEKIGUCHI has the option to designate whether the test runs shall be made on the 24/25 gravity California crude oil or the 19/25 gravity California fuel oil. If the guaranties are not met as to yield, then under UNIVERSAL'S usual commitment UNIVERSAL is at SEKIGUCHI's option to reimburse SEKIGUCHI for the cost of the installation of the cracking unit with the right to remove the unit from the premises at UNIVERSAL'S Own expense and to cancel the contract, and in such event UNIVERSAL is to reimburse SEKIGUCHI for all monies actually paid by SEKIGUCHI to UNIVERSAL, in compliance with Paragraph 14 of this agreement, after crediting all monies received by SEKIGUCHI from licensees or others under this agreement or in pursuance thereof. This guaranty shall apply only to the first unit to be installed.

In the event of such cancelation, SEKIGUCHI is to re-assign all right, title, and interest in and to all patents and applications acquired by SEKIGUCHI under this contract and to convey to UNIVERSAL all other rights of any and every kind acquired by SEKIGUCHI from UNIVERSAL under this contract and to do all those things necessary to carry this into effect and to place in UNIVERSAL all the right UNIVERSAL Would have had as though this agreement had not been entered into and this agreement shall thereafter be canceled and have no effect and SEKIGUCHI shall thereafter have no rights whatsoever thereunder. It is specifically understood and agreed, however, that SEKIGUCHI, or such group or company as he may organize or license, is to proceed at once with the cracking installation and carry the work through to completion with all due diligence, under UNIVERSAL'S direction including the operation during the test period, so that the tests may be made and completed prior to October 1, 1929. After January 1, 1930, UNIVERSAL shall not be obligated to SEKIGUCHI for any continuing guaranty or for the reimbursement of the monies paid by SEKIGUCHI to UNIVERSAL under this agreement. In the event of unforseen and uncontrollable delays, due to earthquakes, serious fires, floods or acts of God, beyond the control of SEKIGUCHI, then and in such event, if the construction cannot be completed and the tests completed prior to October 1, 1929, it is the spirit of this agreement that reasonable extension of time shall be granted, but not later than one year beyond October 1, 1929; the period January 1, 1930 in this Paragraph referred to, shall in such event, but only in such event, be likewise extended for a like period.

(12) UNIVERSAL is to furnish SEKIGUCHI with an engineer to supervise the erection and the construction of the plant referred to in Paragraph 11 and also upon request from SEKIGUCHI the construction of any other installations of the cracking units licensed by SEKIGUCHI to others under SEKIGUCHI's rights under this contract, all at UNIVERSAL'S regular charge for the services of such engineer or engineers.

(13) UNIVERSAL is to send one or more operating engineers, at SEKIGUCHI'S expense, during the test period hereinabove referred to, and for the instruction of SEKIGUCHI'S regular operating crew.

(14) In consideration for all the above, subject to the specific exceptions enumerated, SEKIGUCHI is to pay UNIVERSAL One Million Dollars ($1,000,000) in funds current in New York or Chicago, payable as follows:

$100,000 upon the execution of this agreement. $150,000 on or before November 20, 1928.

$250,000 on or before October 1, 1929, with interest at 5% per annum. $250,000 on or before October 1, 1930, with interest at 5% per annum. $250,000 on or before October 1, 1931, with interest at 5% per annum.

The three deferred payments $250.000 each, payable respectively October 1, 1929, October 1, 1930, and October 1, 1931, are to be evidenced by promissory notes or acceptances in form satisfactory to UNIVERSAL, payable in New York or Chicago, and to be guaranteed to UNIVERSAL'S satisfaction by an acceptable bank operating

or licensed under the New York State Banking laws, or by other guaranty acceptable to UNIVERSAL, SEKIGUCHI is also to furnish UNIVERSAL with suitable guaranty of New York bank, or surety company, or firm, or corporation, acceptable to UNIVERSAL, or by the deposit of securities acceptable to UNIVERSAL, to guarantee all the terms, conditions, and obligations to be performed by SEKIGUCHI under this contract.

(15) If after the payment of the $100,000 payable on the execution of this agreement, there should be default in SEKIGUCHI'S further payment of the $150,000 due and payable November 20, 1928, and the delivery of the three notes, as above specified, then the $100,000 payment made upon the execution of this agreement shall be considered to be liquidated damages to UNIVERSAL for SEKIGUCHI's failure to meet the payment of November 20, 1928, and the delivery of the three notes, as above specified, and the acceptable guaranty of this contract, and this contract shall then and thereafter be null and void without any rights to SEKIGUCHI thereunder, as though this agreement had not been made.

(16) Co-incident with receipt of the $150,000, due and payable November 20, 1928, and the delivery to UNIVERSAL of the three notes of $250,000 each, as herein specified, and the delivery to UNIVERSAL of acceptable guaranty, as herein provided, for this entire contract, UNIVERSAL is to assign, transfer, and deliver to SEKIGUCHI all UNIVERSALS right, title, and interest in and to UNIVERSAL's patents and patent application in Japan, as herein specified, and all UNIVERSAL's right, title, and interest in and to the existing license agreement with Nippon Oil Company, all subject to the conditions and obligations set forth in Paragraphs 11 and 15 of this agreement. Said notes shall not be effective unless all the patents, applications for patents, and titles thereto are properly transferred to SEKIGUCHI, as herein provided.

(17) This agreement is assignable by either or both parties hereto, but only upon the written acceptance by the assignee of all the terms, conditions, and obligations of this agreement and also with the written consent of the guarantor herein referred to, with guarantor's continuing obligations, and the delivery of such written acceptance and consent, in proper form, by each party to the other party to this agreement.

(18) In view of Mr. K. Tsunoda's familiarity with the operations of UNIVERSAL'S process and familiarity with the oil industry generally through his connection therewith for the past years, it is understood and agreed that he is to be retained by SEKIGUCHI or his assignee of this contract in an advisory and active capacity until all the payments obligated herein by SEKIGUCHI to be made to UNIVERSAL are fully paid.

(19) It is specifically understood and agreed that SEKIGUCHI is to keep UNIVERSAL promptly informed from time to time of any cracking installations to be erected, in pursuance of this agreement, where located, when completed and put into operation and to keep UNIVERSAL generally informed of its operations and to give UNIVERSAL or its representatives access thereto so that both parties to this agreement may keep each other well informed to their mutual advantage.

THIS AGREEMENT, entered into and executed, in duplicate, in City of New York, State of New York, U. S. A., this 19th day of July, 1928, upon the payment of $100,000 to be herewith made by SEKIGUCHI to UNIVERSAL shall constitute a binding contract between the parties hereto, and this contract shall be construed and controlled by the laws of the United States of America.

[Japan Gasoline-Universal Oil Products acknowledgment of transfer from Sekiguchi to Japan Gasoline Company]

WHEREAS a certain contract dated the 19th day of July 1928 was entered into by and between UNIVERSAL OIL PRODUCTS COMPANY, a corporation organized and existing under and by virtue of the laws of the State of South Dakota, and

HISASHI SEKIGUCHI of Tokio, Japan, in behalf of and for the benefit of himself or such group as he might designate or such Company as may be organized or might by him be designated to take over the said contract and the assignment of the same under the terms and conditions in said contract specified; and

WHEREAS, NIHON KIHATSUYU KABUSHIKI KAISHA was heretofore, and after the making of said contract, organized, and is now existing, under and by virtue of the laws of the Empire of Japan, for the purpose of taking over said contract and an assignment of the same, conditioned upon the written acceptance and assumption by such assignee of all the terms, conditions, and obligations of said contract on the part of said Hisahi Sekiguchi to be carried out and performed as in said contract provided; and

WHEREAS, said Hisahi Sekiguchi did no the seventh (7th) day of November 1928 assign and transfer said contract to Nihon Kihatsuyu Kabushiki Kaisha, to which transfer and assignment said Universal Oil Products Company has consented and does by the acceptance of these presents consent, subject, however, to the terms and conditions of said contract, and upon the written acceptance and assumption by said Nihon Kihatsuyu Kabushiki Kaisha of all the terms, conditions and obligations of said contract on the part of said Hisashi Sekiguchi to be carried out and performed;

NOW, THEREFORE, in consideration of One Dollar ($1) and other good and valuable considerations by Nihon Kihatsuyu Kabushiki Kaisha and by Universal Oil Products Company, each to the other in hand paid, the receipt of which is hereby acknowledged, and in consideration of the transfer and assignment of the above contract by the said Hisashi Sekiguchi to said Nihon Kihatsuyu Kabushiki Kaisha, and of the consent of said Universal Oil Products Company to said transfer and assignment, the undersigned, Nihon Kihatsuyu Kabushiki Kaisha (a corporation organized and existing under and by virtue of the laws of the Empire of Japan), hereby accepts all of the terms, conditions, and obligations of said contract, and does hereby assume and agree to perform each and all of the terms, conditions, and obligations of said contract on the part of said Hisashi Sekiguchi to be carried out and performed, as fully to all intents and purposes, and with the same effect, as though said Nihon Kihatsuyu Kabushiki Kaisha had originally executed the same as a signatory party thereto, a copy of which said contract is for greater certainty hereto attached, marked "Exhibit A" and made a part hereof, the same to all intents and purposes as if said contract were written into these presents.

IN WITNESS WHEREOF, the said NIHON KIHATSUYU KABUSHIKI KAISHA has hereunto, in the City of Chicago, County of Cook, and State of Illinois, caused its corporate name to be set, and its corporate seal to be affixed by its duly authorized officers this 28th day of December 1928.

NIHON KIHATSUYU KABUSHIKI KAISHA,
By MASAO SANEYOCHI, Its President.

Attest:

K. TSUNODA,

Its Managing Director.

EXHIBIT No. 444

[Letter from Masao Saneyoshi, President of Japan Gasoline Company to Universal Oil Products Company, dated March 17, 1937]

DEAR SIRS: Owing to the urgent need to produce high octane gasoline for aviation, there is a strong tendency to develop the Polymerization Process in Japan.

Therefore we are going to investigate thoroughly the process under Prof. Horie to prepare the actual construction and operation.

We are sure we have had already many valuable communications between us, but owing to Mr. Sakurai's resignation, we find almost all the correspondence regarding the above item missing. Therefore we hope you are kind enough to give us the informations even if you feel them duplicated.

1

In our opinion in Japan the capacity of the individual cracking plants are too small to justify the construction of the polymerization plants as their auxiliary parts, considering the high construction and operating cost per gallon of the polymer gasoline. To avoid this difficulty the plan to collect the refinery gases of several fineries with cracking plants located between Tokyo and Yokohama is considered. The names and nominal cracking capacities of the above refineries are as follows:

Yokohama Refinery, Ogura Oil Co., 1,000 barrels, Cross type.
Yokohama Refinery, Ogura Oil Co., 1,500 barrels, Ogura type.
Tsurumi Refinery, Nippon Oil Co., 2,000 barrels, Dubbs type.
Tsurumi Refinery, Nippon Oil Co.. 1.500 barrels, N. N. C. type.
Kawasaki Refinery, Mitsubishi Oil Co., 2,000 barrels, Cross type.
Kawasaki Refinery, Mitsubishi Oil Co., 2.000 barrels (plan).
Kawasaki Refinery, Hayama Oil Co., 1,000 barrels, Schwalz type.
Kawasaki Refinery, Aikoku Oil Co., 1.000 barrels, N. N. C type.

N. N. C. is the abbreviation of New Nippon Cracking, designed by Nippon Oil Co. and protected by their patents. The general design resembles Winkler Koch. Schwalz is practically the modified Platt type.

2

The above refineries are located within the area of about 7,000 M. by 2,000 M.

3

To concentrate the gases from the above refineries to one polymerization plant, It is necessary for us to promote the plan at our own risk, with their participation in the enterprise or, if they prefer, simply with their support as gas supplier.

4

Keeping in your mind the above facts, will you please give us the necessary items for our fundamental investigation to construct and operate the polymerization plant as a new independent enterprise?

5

Further to the above information, please give us your opinion.

(a) The Analysis of the refinery gases from the above refineries are not yet in our hand, but those from N. N. C. and Schwalz might not be rich in olefin. Please give your opinion the desirability of pyrolysis before polymerization; further, if it is desirable, please give us the data regarding the same.

(b) Under the circumstances prevailing in Japan, we think it more profitable to utilize the polymer gasoline for aviation purpose, instead of using it as a means to raise the octane number of usual gasoline. Therefore, give us the data of chemical treating (or reformation) of the products necessary for this purpose (provided our specification of aviation gasoline is same with yours).

(c) Give us the details of your investigation regarding the hydrogenation of the polymer gasoline. In one of your essay, you mentioned "mild hydrogenation." Please give us the actual method of the same.

(d) Please inform us the patent relation of the commercial hydrogenation of the polymer and also that of the manufacturing of the hydrogen for this purpose in your country.

84949-44-pt. 16

-15

6

Give us full information relating to the catalyser. What is your condition if we use the same in Japan? Can we buy it from elsewhere? What is the f. o. b. cost?

Hoping you are kind enough to give us speedy reply,

Yours very sincerely,

JAPAN GASOLINE CO., LTD., /s/ MASAO SANEYOSHI,

President.

EXHIBIT No. 445

[Letter from Fukio Horie, chief engineer, Japan Gasoline Company to Universal Oil Products Company, dated January 14, 1938]

JAPAN GASOLINE COMPANY, LTD.

(Nippon Kihatsuyu Kabushiki Kaisha)

UCHISAIWAICHO, TOKYO

TOKYO, Jan. 14, 1938.

UNIVERSAL OIL PRODUCTS COMPANY,

310 South Michigan Avenue, Chicago, Illinois, U. S. A.

(Attn. Mr. R. E. Nagel.)

Re: Aviation Gasoline.

DEAR SIRS: We thank you for your reply of November 5th to our inquiry of October 23rd, concerning aviation-gasoline production.

As you related in your reply, it may require a great deal of discussion with various authorities in your company, and it, we perceive, be annoyance to your people, yet our clients are waiting enthusiastically for your further information. Concerning production of gasoline, our situation differs greatly with yours. Where we have only 200,000 automobiles you have over 26 millions, and your refineries supply all of necessary gasoline for them by means of distillation and cracking, while our refineries supply only half of our demand, another half is imported as finished product. On the other hand, we have apparently much more airplanes than the above ratio in automobiles. This is the reason we want to have special cracking and isooctane plant which can produce large quantity of aviation gasoline even at the sacrifice of motor gasoline.

Our air corps require keenly 100-octane fuel, therefore the quantity of isooctane becomes the most essencial [sic] point in our client's plan.

In connection with the above, following processing idea, which is formulated by one of our engineers, is mentioned for your comment.

1st. All of crude oil be cracked so as to produce high-octane gasoline and large quantity of gas.

(a) Heavy part of crude oil (e. g., gas oil and fuel oil) be cracked by nonresiduum type of Dubbs plant.

(b) Pressure distillate of Dubbs plant and light part of crude oil (e. g., straight gasoline and naphtha) be together fed into vapour phase cracking plant so as to produce above 82 octane gasoline. Residual heavy oil of this plant is also fed into the above Dubbs.

2nd. Gas from both of the cracking plants be charged into selective and nonselective polymerization plant, in order to get isooctane and regular polymer. Isooctane is then hydrogenated by your process.

3rd. Cracked gasoline and regular polymer be together hydrogenated. This hydrogenation is successfully carried out by our Navy process. If octane number of cracked gasoline is over 82, it becomes experimentally plus 77 after hydrogenation, and the yield is reported to amount to nearly 100%. 4th. Aviation gasolines are finished by following formulas.

In the above, we cannot find suitable cracking data to the present purpose, and to this very point we beg you your kind assistance. As the results of cost calcula