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RTA had been aware of EDS’s efforts to sell the TTS as early as
January 1991, when RTA sent a memorandum to Charles White, a
principal shareholder of TRI, warning of its interest in the TTS.
Conclusion of the Lawsuit
The lawsuit continued until the fall of 1992, when
negotiations between RTA and EDS produced a settlement agreement
(the settlement agreement), which the parties executed on
December 24, 1992. The settlement agreement terminated the
lawsuit and provided that EDS would pay RTA $2.1 million (the
settlement amount). Payment of approximately one-half of the
settlement amount was dependant upon successful completion of the
TRI agreement. The remainder of the settlement payment was
dependent on EDS' making future sales of products, equipment, or
intangible rights. The parties executed an addendum to the
settlement agreement in February 1993, which granted RTA an
option to purchase all products or services of EDS at the lowest
prices offered by EDS to other purchasers, as well as a territory
in which RTA would have marketing rights for future sales of the
tire transformation system technology.
Continued Development of the TTS
EDS and TRI continued to develop the TTS over the next
several years (1993-95). Nevertheless, as of the date of trial
of this case, the TTS had not been placed into service, and,
consequently, RTA had received no reimbursement as a result of
the settlement agreement.
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