BARTZ et al v. MOORE, JR. et al - Page 3


               Interference No. 104,180                                                                                               

                       At page 1 of its brief, the senior party Moore acknowledges the above items as issues,                         
               and asserts to the effect that there are no other issues.                                                              
                                                      Bartz’s Case for Priority                                                       
                       The record of the junior party is to the following effect.                                                     
                       In 1989, the California legislature was considering passing strict emissions requirements                      
               relating to carbon monoxide (CO) and oxides of nitrogen (NOx) for residential water heaters.                           
               Alzeta Corporation (Alzeta), for whom the junior party co-inventors worked, was in the business                        
               of producing burners for residential water heaters and saw a business opportunity.                                     
                       Alzeta initiated a project that was to lead to the development of a water heater to satisfy                    
               the emissions requirements.  On January 13, 1989, it sent a letter identified as Bartz Exhibit J6                      
               (BX-J6) to the South Coast Air Quality Management District of California (SCAQMD),                                     
               proposing the development of a radiant burner and an inspirator for residential water heaters that                     
               would produce low amounts of CO and NOx gases.  The letter stated Alzeta’s intention to                                
               develop and test both flat plate and cylindrical burner designs for inspirited (natural draft) and                     
               powered (fan or blower) water heaters, and to build a prototype to evaluate conformance of the                         
               water heaters with ANSI standards.                                                                                     
                       Alzeta’s letter generated interest at SCAQMD and Southern California Gas Company                               
               (SCG).  They agreed to provide funding for Alzeta’s research and development project and                               
               suggested that American Appliance Manufacturing Corporation (now American Water Heater                                 
               Corporation) be added to the project because American Water Heater Corporation (American)                              
               was the dominant manufacturer of water heaters in southern California at the time.  In response,                       
               Alzeta contacted American and requested that it enter the project.  American joined the project,                       




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