Re: Joint Projects; License and Consulting Agreement
December 10, 2003
Mr. Xxx Xxxxx | BY FAX: 000-000-0000 |
President and CEO | |
Centripetal Dynamics, Inc. | |
Xxxx, Xxxxxxx 00000 |
Re: | Joint Projects; License and Consulting Agreement |
Dear Xxx:
Further to your recent discussions with Xx. Xxxxx Xxxxxx, a director of Encore Clean Energy, Inc (“Encore”), (and formerly named Cryotherm, Inc) , this letter is to both reaffirm and amend the Joint Projects License and Consulting Agreement of June 26, 2003 signed between Cryotherm ("Cryotherm") and you, as an individual, and your company, Centripetal Dynamics, Inc. (collectively “CD”). This agreement supercedes any prior agreements.
It is agreed by Encore and CD that the exclusivity provisions of the Agreement as they pertain to the Centripetal Engine and Wind Technologies remain in full force and effect, except as follows:
1. | CD is granting to Encore an extension to the terms
signed by CD and Cryotherm, in regard to exclusive rights for sales and
marketing of the technologies described in the prior Agreement dated June
26, 2003. |
2. | The extension will be granted until June 2, 2004.
At such time, Encore will be obligated to pay all the consulting expenses
that have yet to be paid, by this date, to retain the exclusive sales
and marketing rights to the technologies. The consulting fee would total
$75,000, if the final payment was made as of June 2, 2004. |
3. | Encore also acknowledges that it will make its best
effort to start the consulting payments sooner as funds are secured by
Encore. |
4. | Encore shall additionally compensate Xxxxx with 350,000
warrants post-split on a 3-new-for-1-old share basis, which forward split
of the Company’s stock is anticipated to occur in 2004. Each warrant
will entitle Xxxxx to purchase Encore stock having the same term as and
at a statutory discount price equal to 85% of the $1.00 per share price
being offered to investors in the Private Placement Memorandum of December
2003. As of this date, the 350,000 post-split warrants payable to Xxxxx
would be equivalent to 116,667 pre-split warrants in Encore, exercisable
at $.85 per share). In consideration of these warrants being granted to
Xxxxx, Xxxxx and CD will grant Cryotherm exclusive rights to the engine
technology for the Saudi Arabia market place. |
5. | The parties acknowledge Cryotherm’s October
1, 2003 merger with Forge, Inc. and subsequent name change to Encore Clean
Energy, Inc. For purposes of this Agreement, all obligations of Cryotherm
to CD and benefits from CD to Cryotherm under the June 26, 2003 Agreement
are now the obligations of and inure to the benefit of the merged company,
now known as Encore Clean Energy, Inc. |
This letter, which shall be effective upon execution, constitutes the entire agreement between the parties, is intended to be legally binding. The parties further agree to negotiate, execute and deliver such further documents and agreements, as may be necessary or desirable to implement the terms of this letter.
If you are in agreement with the foregoing, kindly execute and return a duly executed counterpart, whereupon it will become a binding agreement in accordance with its terms.
Very truly yours, | ||
ENCORE CLEAN ENERGY, INC | ||
By: | ||
Xxx Xxxxxx – CEO | ||
Dated December 10, 2003 | ||
ACCEPTED AND AGREED: | ||
By: | ||
Xxx Xxxxx, President, Centripetal Dynamics | ||
Dated: December 10, 2003 |