- 6 - These shareholders were the only members of Cascade's board of directors, and each retained his ownership percentage until 1991. The 1979 Sales Agreement and Patent Assignment On January 9, 1979, Lea entered into an agreement (the 1979 sales agreement) with Cascade to sell "his entire right, title and interest in and to" the 525, the 690, and the 974 patents, U.S. Patent Application S.N. 800,288 (the patent application for the "Method of Making Self-Inflating Air Mattress"), and the British and Japanese patent applications for the mattress.2 The 1979 sales agreement, in relevant part, provided the following: a. The total sales price for such sale is three hundred thousand dollars ($300,000). Since it is recognized that Cascade Designs, Inc. does not at this time have the resources to make a cash payment of $300,000, it is agreed that payment can be made only out of the money received by Cascade Designs for sales of the air mattresses which it markets. Payment shall be made as follows: 1. For each air mattress sold by Cascade Designs, Inc., covered by any one of the patents or patent applications noted above, James M. Lea shall receive an amount of money equal to 5% of the gross selling price. * * * * * * * b. Payments shall continue to be paid as 2Anderson sold his interests in the 525 and the 974 patents, and the U.S., British, and Japanese patent applications, on Jan. 7, 1979, for 0.134 percent of the gross sales price of each air mattress. Payments made to Anderson for these properties are not at issue in this case.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