I would like to add some clarification with regard
Post# of 3601
(Total Views: 318)
Posted On: 01/06/2017 12:06:39 PM
I would like to add some clarification with regard to George's 12-15-16 PR referencing the license agreement between Coates and Secure Supplies. You will note the following.
1. The $75MM up-front licensing fee was reduced to $1MM to expedite the transaction (Concession made by Coates?) and has nothing to do with product sales.
2. Coates is to provide a gen set to Secure, modified with the CSRV and ignition injection system for testing and demonstration. (George didn't mention this in his PR.)
3. Money will change hands only when orders are received and gen sets are shipped. Nothing will happen unless #2 above passes the smell test and if, as Burned Twice said in his post, the buyer and seller agree on a price.
4. There is no mention in this section of a time line on anything but if you read the entire text of Exhibit 10.1 you will note that it was filed on 12-5-16.
So, be patient my friends. These things take time.
Here is the text of Exhabit 10.1 of the 8K filing relative to license fees.
ARTICLE V – PAYMENTS
EXCLUSIVE LICENSE FEE
This Distribution, Use, Sale and Lease Exclusive License fee is $75,000,000 USD (Seventy Five Million US Dollars).
Based on the size of this project and order presented to the Company and the vast potential expansion of hydrogen applications, Company management has agree to forgive the exclusive license fee of $75,000,000 USD and work with Secure Supplies HK LLC to move this project forward in an expedited fashion.
5.1 PAYMENTS AND ROYALTIES
Upon execution of this agreement, the Licensee shall pay a one-time fee of $1,000,000 USD to Licensor.
A royalty of $50 USD will be paid per engine or gen set sold to Licensee, to the Coates Trust regardless of the size or type of CSRV engine.
Licensor shall proceed with the process of modifying of a 100 to 150 KW CSRV gen set to demonstrate the successful operation of Secure Supply HK LLC HH2 Gas POD and Injection Ignition system for commercial use.
Licensee shall deliver one 6-cylinder fuel injection system and one gas POD for testing and demonstration for scale up to CSRVv12 and CSRVv16 1 mw to 5 mw Models.
5.2 Sublicensing.
No Sublicense will be sold without the written permission from Licensor and must be executed by Licensor. 50% of Sublicense Fee shall be paid to Licensor. Any Sublicense must be executed by Licensor and Licensee.
5.3 CSRV PRODUCT PAYMENTS
A 50% down payment on all CSRV products shall be paid to the Licensor with each order presented. The balance due on each order shall be paid at the time the order has been staged for delivery from Licensor’s manufacturing plant.
You can find the entire text of Exhabit 10.1 here:
https://www.sec.gov/Archives/edgar/data/94842...sinter.htm
1. The $75MM up-front licensing fee was reduced to $1MM to expedite the transaction (Concession made by Coates?) and has nothing to do with product sales.
2. Coates is to provide a gen set to Secure, modified with the CSRV and ignition injection system for testing and demonstration. (George didn't mention this in his PR.)
3. Money will change hands only when orders are received and gen sets are shipped. Nothing will happen unless #2 above passes the smell test and if, as Burned Twice said in his post, the buyer and seller agree on a price.
4. There is no mention in this section of a time line on anything but if you read the entire text of Exhibit 10.1 you will note that it was filed on 12-5-16.
So, be patient my friends. These things take time.
Here is the text of Exhabit 10.1 of the 8K filing relative to license fees.
ARTICLE V – PAYMENTS
EXCLUSIVE LICENSE FEE
This Distribution, Use, Sale and Lease Exclusive License fee is $75,000,000 USD (Seventy Five Million US Dollars).
Based on the size of this project and order presented to the Company and the vast potential expansion of hydrogen applications, Company management has agree to forgive the exclusive license fee of $75,000,000 USD and work with Secure Supplies HK LLC to move this project forward in an expedited fashion.
5.1 PAYMENTS AND ROYALTIES
Upon execution of this agreement, the Licensee shall pay a one-time fee of $1,000,000 USD to Licensor.
A royalty of $50 USD will be paid per engine or gen set sold to Licensee, to the Coates Trust regardless of the size or type of CSRV engine.
Licensor shall proceed with the process of modifying of a 100 to 150 KW CSRV gen set to demonstrate the successful operation of Secure Supply HK LLC HH2 Gas POD and Injection Ignition system for commercial use.
Licensee shall deliver one 6-cylinder fuel injection system and one gas POD for testing and demonstration for scale up to CSRVv12 and CSRVv16 1 mw to 5 mw Models.
5.2 Sublicensing.
No Sublicense will be sold without the written permission from Licensor and must be executed by Licensor. 50% of Sublicense Fee shall be paid to Licensor. Any Sublicense must be executed by Licensor and Licensee.
5.3 CSRV PRODUCT PAYMENTS
A 50% down payment on all CSRV products shall be paid to the Licensor with each order presented. The balance due on each order shall be paid at the time the order has been staged for delivery from Licensor’s manufacturing plant.
You can find the entire text of Exhabit 10.1 here:
https://www.sec.gov/Archives/edgar/data/94842...sinter.htm
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