Letter of Intent Between CLEAN ENERGY & JIE LI
Letter of Intent
Between
CLEAN ENERGY & XXX XX
January 25, 2001
Xx. Xxxx X. Xxxxx, President
Clean Energy Combustion Systems Inc. ("Clean Energy")
0000 XxxXxxxxxx Xxx.
Burnaby, B.C.
Dear Sir:
RE: PULSE BLADE COMBUSTION PRODUCT/TECHNOLOGY
As outlined in our previous letter of intent dated for reference May 31, 2000, Clean Energy and Xxx Xx International Environmental Technologies Group Ltd. ("Xxx Xx") have agreed to undertake a marketing program for Clean Energy's high-frequency pulse blade coal-burning combustion units ("burners") in the People's Republic of China ("PRC" or "China") under a licensing agreement. In order to obtain that license, Xxx Xx has provided Clean Energy with assurances that they have sufficient contacts in the Asia Pacific region that will provide numerous potential channels through which Clean Energy products and/or technology may be distributed.
After a number of contact meetings between Clean Energy, Xxx Xx and some of the many contacts available to us as potential customers for the technology in China, and having received expressions of interest and/or letters of intent from one or more potential customers in the PRC, Xxx Xx is now able to provide Clean Energy with an initial Letter of Intent for purchase of burners:
- Xxx Xx has secured a partner in China who has agreed to supply Xxx Xx and Clean Energy with an industrial test site (the "test site") at which to install and test Clean Energy's burners.
- Xxx Xx wishes to secure Clean Energy's services in conducting this burner installation and test in the PRC.
- The test site will involve the providing of two burner units and the retrofitting of one 10 tonne steam boiler.
- Pending the successful installation of the PBC burners, and a period of testing and monitoring of emission levels and burning efficiencies, Xxx Xx intends to make burner purchases from Clean Energy and to provide retro-fitting services to its customers in the PRC.
- Xxx Xx intends to make an initial purchase of sufficient burners to allow for the retrofitting of up to 500 boilers, such purchases to be scheduled as mutually agreed between the parties. Payment for the burners shall be FOB Vancouver, B.C. on delivery. Price shall be mutually agreed upon at a later date, but shall be in the approximate range of US$20,000 per 12.5 million BTU burner, as previously agreed.
We trust this outlines the intent and agreement between Xxx Xx and Clean Energy. We remind you that this letter of intent is issued for the express purpose of providing assurance to assist Clean Energy in its efforts to raise equity capital through the sale of Class "C" preference shares in a private placement. Any use of the information provided in this letter for any other purpose is prohibited.
Yours very truly,
/s/ Xxxxxxx X. Xxx
Xxxxxxx X. Xxx, President
Xxx Xx International Environmental Technologies Group Ltd.
