[Letterhead of Xxxxx Family Trust]
Xxxxxxx X. Xxxxx, Vice President June 18, 1998
Electronic Fuel Control, Inc.
0000 Xxxxxxx Xxxxxxx 00
Xxxxx 000
Xxxxxx Xxxx, Xx., 00000
Re: Licensing Agreement between Xxxxx Family
Trust and Electronic Fuel Control, Inc.
Dear Xx. Xxxxx:
Following up on our various telephone conversations of the past several weeks,
this letter is intended as a summary of the agreement we have reached regarding
alterations in the existing Licensing Agreement between Electronic Fuel Control,
Inc. and the Xxxxx Family Trust. This agreement is subject to your company
meeting all of the conditions specified and fulfillment of those conditions by
the dates and times set forth.
The amount of the debt owed to the Xxxxx Trust by Electronic Fuel Control, Inc.
("EFC") as of December 31, 1997 was $133,635.08. EFC has proposed to liquidate
that debt on July 31, 1998 under the terms and conditions herein set forth. On
July 31, 1998 the amount EFC will owe the Xxxxx Trust, including interest
accrued from January 1, 1998 through and including that date, will be
$143,576.10. EFC will pay to the Trust the sum of $43,576.10 on July 31, 1998
and, in addition, EFC on that date will tender to the Trust 108,000
non-assessable, unencumbered, duly authorized and issued shares of EFC's common
stock. The Trust will then mark the existing, $150,000.00 promissory note "paid
in full" and will return the original of said note to EFC. Additionally, the
Trust will suspend the quotas in the Licensing Agreement for a period of three
(3) years as set forth in my letter to you of June 4, 1998.
If you agree that the contents of this letter accurately represents our
understanding, please sign where your name appears below and return a signed
copy of this document to me at the address set forth above.
Xxxxxxx X. Xxxxx, Vice President
Page Two
June 18, 1998
With kind regards, I remain
Sincerely yours,
/s/ Xxxx X. Xxxxxx
------------------
Xxxx X. Xxxxxx, acting
in his capacity as Trustee
of the Xxxxx Family Trust
MWC/mwc
cc: file
I agree that the contents of this letter accurately represents our
understanding.
/s/ Xxxxxxx X. Xxxxx
--------------------
Xxxxxxx X. Xxxxx, Vice President
06/19/98
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Date
