EXHIBIT 10.1
Letter of Intent
This Letter of Intent is made by and between Duquesne Light Company of
Pennsylvania and Telenetics Corporation of California, in order to set forth the
general conditions for delivery of interface cabinet equipment to Duquesne
Light, and to authorize Telenetics to begin incurring the costs necessary to
proceed.
Duquesne Light is currently engaged in an automated meter reading and outage
reporting project. Telenetics is the manufacturer of an AlphaMeter Interface
Cabinet (AMIC) to be used for wired and wireless communications between multiple
and single metering sites connected through a central host processing unit to
provide automated reading of ABB Alpha meters in Duquesne's service area.
Duquesne Light hereby agrees to purchase 12,000 to 16,000 units of AMIC's in
three different configurations, conditioned on the performance of 30 units (10
of each configuration) to be delivered for testing on or about June 15, 1998.
The price per unit, price basis and conditions of sale are set forth in
Telenetics letters dated May 22 and May 27, 1998 (copies attached hereto).
Duquesne Light will assign a purchase order number by May 29, 1998, and the
parties agree to work out details of the master purchase agreement by June 12,
1998, including the following issues:
Shipment Schedule
Progress Payment Plan
Acceptable Payment Terms
Flexible Number of Each Configuration
Duquesne Light and Telenetics also agree to discuss a long term strategic
marketing alliance to promote this product and other products they may choose,
in Pennsylvania and the six states contiguous states. Details of such Agreement
are to be worked out by June 12, 1998.
Provided that all other terms and conditions are defined in a timely manner,
Telenetics will make its best effort to meet the following delivery schedule:
1,000 units of Model AMIC-I, by July 3, 1998.
400 units of Model AMIC-III, by July 10, 1998.
400 units of Model AMIC-II, by July 17.
An agreed mix of Models 1, 11 & III per week thereafter at a rate
necessary to complete all deliveries by November 15, 1998.
Based on the foregoing, Duquesne Light authorizes Telenetics to proceed with
purchasing the parts and materials needed to begin the manufacturing and
delivery of AMIC units.
Signed on this 28th day of May, 1998 by:
/s/ XXXXXXX ARMANI /s/ XXXXXXX X. XXXXXXX
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Xxxxxxx Armani Xxxxxxx X. Xxxxxxx
President General Manager
Telenetics Corporation Duquesne Light
