SAN ANTONIO -- J. Collier Sparks, CEO and President of MDI, Inc., announced that the company and Honeywell International, Inc. had reached a final agreement on certain matters related to the December 2002 sale to Honeywell of the company's CCTV Business. Under the agreement, Honeywell paid to the company the final $1.8 million installment it owed, together with interest. As part of the agreement, the company negotiated a favorable settlement of all matters related to three patents that it sold to Honeywell in December 2002 as part of the sale of the CCTV Business.
"I am pleased to report that we entered into a very favorable agreement with Honeywell and David Blackshear, the former owner of three patents covering video security dome units. Including attorney fees and royalties related to the three patents, the Company paid $305,000 as its part of the agreement with Honeywell and Mr. Blackshear. In return, Mr. Blackshear agreed that he has no future claims against either Honeywell or the company based on the three patents sold by the company to Honeywell or based on our past or future sale of video security dome units," said J. Collier Sparks.
Mr. Sparks went on to say that since December 2002, the Company had received all of the $5.4 million, together with interest, that Honeywell was entitled to hold back under the terms of the December 2002 Asset Purchase Agreement.
"In fact, said Mr. Sparks, "Honeywell actually paid the Company an additional $888,000 which reflected the higher value of the CCTV business we sold to them."