Exhibit 10.20
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding, executed this 17th day of March, 2004, by and
PT Faryan Nusantara ("Faryan"), located at Xx. Xxxxxx 0 , Xx. 00 Xxxxxxx 00000,
Xxxxxxxxx, Crescent Aeronautical Technology ("CAT"), located at Taman Alfa Indah
H5/17, Xxxxxxx Xxxxxxx 00000, Xxxxxxxxx and Delta-Envirotech ("Envirotech"),
located at 0000 Xxxxxxx Xxxx, Xxxxxx, Xxxxxxxx, XXX.
WHEREAS, Faryan holds a contract to purchase oil sludge from Pertamina for
approximately 6,000,000 tons on an exclusive basis for a term of one year,
subject to performance effective the 18th day of March, 2004; and
WHEREAS, CAT has the ability to assist in the financing of the purchase of the
oil sludge, and can assist in the disposal of processed products, and
WHEREAS, Envirotech has the technology to process the oil sludge to yield
saleable products, and LIPI will be asked for approval of the technology on an
advisory basis and is willing to assist in the successful completion of the
project, and
WHEREAS, the parties have agreed to the responsibilities of each other to
accomplish successful fulfillment of each project;
NOW, THEREFORE, the parties have established the following responsibilities and
obligations to each other for the mutual benefit of all:
1 - Faryan will purchase the product from Pertamina, or other locations as
designated; transport the products and perform preliminary treatment to
facilitate transport.
2 - CAT will arrange the capital needed to purchase the oil sludge,
payment for transportation and required equipment and, in cooperation with
Faryan, assist in marketing the processed products.
3 - Envirotech will provide the technology and equipment to process the
oil sludge based upon Envirotech's analysis of the composition in
consultation with LIPI.
The parties agree that the profits from the project will be shared on an equal
after all costs have been charged to the project.
The parties agree that the activities will begin within thirty (30) days of the
execution of this Memorandum of Understanding as dated above.
By copy of this Memorandum of Understanding, Envirotech will begin discussions
with LIPI as to the specifications of the oil sludge and testing requirements.
Executed in Jakarta this 17th day of March, 2004 by:
PT Faryan Nusantara
BY: /S/ JAN LEIJEN
--------------------
Seal:
Crescent Aeronautical Technology
BY: /S/ XXXXXXXX THEIJS
--------------------
Delta-Envirotech, Inc.
BY: /S/ XXXXX XXXXXXX
--------------------
Seal:
--------------------------------------------------------------------------------
Page 29
