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Despite its efforts, the FDER did not award RTA a waste tire
disposal contract.
Cessation of RTA’s Business Operations
Following RTA’s failure to obtain a FDER waste tire disposal
contract, the shareholders collectively determined that RTA would
cease all further business activities. In May 1991, RTA
discharged its employees and ceased operations. RTA did not
further pursue obtaining a FDER permit, attracting additional
investors, or marketing or promoting the TTS technology.
EDS’s Agreement with Tire Recyclers, Inc.
At the time RTA discontinued payments to EDS in mid-1990,
EDS began marketing the TTS and underlying technology to new
investors. On November 6, 1991, EDS entered into an agreement to
sell the equipment to an unrelated company, Asset Holding Co.,
which assigned its rights to Tire Recyclers, Inc. (the TRI
agreement and TRI, respectively). Pursuant to the TRI agreement,
TRI agreed to purchase the TTS (i.e., the partially constructed
TTS that EDS originally had been constructing for RTA) for a
purchase price of $3 million plus costs incurred in transporting
the TTS to TRI's business location in Virginia. One-fourth of
the purchase price ($750,000) was payable to EDS prior to
shipment of the TTS, and the balance was due to EDS once the TTS
had been successfully constructed and, among other things, had
satisfied all governmental requirements for continued operation.
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