This will leave you a 30 or 35 per cent. interest to sell to others later on, when you have a working model and your patent is granted, to furnish the capital necessary for equipping a factory to make the device and to provide funds to market it—that is if you work out a plan along these lines.
But take my advice and keep a 55 per cent. interest in the invention for yourself; otherwise the control of it is taken out of your hands, and whenever it suits those who hold the controlling interest to freeze you out they will do so with pleasure.
By using the following form you can save the expense of having a lawyer draw up one for you and moreover you can also be sure there is no joker in it.
FORM OF AN INTEREST AGREEMENT
Memorandum of Agreement made this third day of September, 1916, between William Franklin, of Peoria, Illinois (inventor), and George Wilson, of Peoria, Illinois, WITNESSETH: That
WHEREAS, the said William Franklin has invented what he verily believes to be a new and useful improvement in gas engines and for which he will apply for letters patent of the United States, provided certain tests which he shall make shall work out satisfactorily, and
WHEREAS, the said George Wilson is desirous of obtaining an interest in the net profits arising from the sale or working of the said invention after the said letters patent of the United States has been granted:
NOW, THEREFORE, in consideration of the premises and of One Dollar to each in hand paid by the other, the receipt whereof is hereby acknowledged, the parties hereunto do covenant and agree as follows: