- 4 - was resolved. He, however, did not have the necessary resources to exploit his rights in the patent. Petitioner was willing to put money into Leland Prentice’s business in order to share in the profits when it became successful. During October or November 1987, Color Trick was organized pursuant to Florida law. Leland Prentice and his wife, Faye Prentice, were issued 700 shares of Color Trick’s stock, Leland Prentice’s son, Stanley Prentice, and his wife were issued 100 shares, and petitioner was issued 200 shares, a 20-percent interest in the corporation. Petitioner paid $5,000 for the shares. The directors of the corporation were Leland Prentice, Faye Prentice, and petitioner. Color Trick was an S corporation. On January 28, 1988, Leland Prentice assigned the patent to Color Trick. From 1987 through 1989, petitioner advanced funds and made and guaranteed loans to Color Trick. Petitioner continued to make loans to Color Trick because he believed its business could be profitable. Petitioner received promissory notes for some of the advances and loans. Petitioner’s loans and advances to Color Trick were used to finance its operations and to purchase equipment. From 1987 through 1989, petitioner devoted time and effort to Color Trick’s business but received no compensation from Color Trick. During the period of its operation, Color Trick experienced continuing difficulties due to lack of sales, equipment problems, and an excessive number of employees.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011