On April 24, 2007, we entered into a Licensing Agreement with Beaufort Energy Solutions, Inc. (“BESI”). Under the terms of the agreement, we agreed to grant licensing rights for our gasification technology in the Province of British Columbia, Canada. The term of the agreement is 20 years and is renewable at expiration for a further period of 10 years. BESI must pay us a royalty of 10% of defined net income, to be paid within 30 days after the end of each quarterly accounting period. Pursuant to the agreement, BESI will seek opportunities for our products throughout British Columbia to provide electric power generation and liquid fuels to supply local consumers, businesses, BC Hydro, government and semi-government end users. Also, we anticipate that BESI will pursue installation of our technologies for waste disposal, power generation, and productions of liquid fuels.2
Energy Quest entered into a Licensing Agreement with Blue Diamond Equities Inc. The commercial agreement provides for Blue Diamond to represent EQI exclusively in the countries of Kenya, Uganda, Rwanda, Tanzania and Burundi (The East African Community) for marketing and sales of the M2 Fluid Bed Gasifier process and other gasification technologies. The East African Community (EAC) is the regional intergovernmental organization of the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi with its headquarters in Arusha, Tanzania. BDE will seek opportunities for EQI products throughout the licensed countries to provide electric power generation and heating/cooling energy to supply local consumers, businesses, utilities, and government and semi-government end users.
Blue Diamond representatives have already received several inquiries from Kenya. Other countries are expected to follow as BDE principals have established and maintained relationships in the EAC for over three decades.