Axial Vector Energy Corporation recently announced the sale of its first license to produce its multi fuel “work horse engines” in Malaysia. Premier Group, with headquarters in Kuala Lumpur, Malaysia signed the exclusive license agreement covering Malaysia, Indonesia and parts of Southeast Asia. The company agreed to produce a minimum of 5,000 workhorse engines to be configured for palm oil use only. The agreement calls for a non-refundable fee of $500,000 dollars as well as a durability pilot site for 5,000 hours. On completion of the durability testing, Premier will provide contract production in SE Asia for the engines, or may choose to open its own production facility.
Payment of $1,000,000 will be received both at the start up of the production facility and when the first engine is completed. The company will receive further milestone payments of $500,000 at completion of technology transfer to the production facility. After the first 500 engines are produced, AVEC will receive $2,000 per engine royalty on a perpetual basis.
AVEC has agreed to provide the first right of refusal to purchase the continuing royalty should it decide to sell its forward revenue stream. As part of this agreement, Premier shall also receive a first right of refusal to license AVEC electric motors or coreless generators after the initial payments of $3,000,000 are complete.
Rahim Mahmud, Managing Director of Premier Group, stated, “We are very pleased to be the first licensee to be able to produce this extraordinary engine. The enormous torque band allowing operation without a transmission and its ability to run on Palm Oil only or many other fuels creates an ideal situation for our country and most of Southeast Asia. As the world’s largest producer of Palm Oil, our country has enormous ability to use these engines for very low cost power using “non fossil fuel”. We believe this sets the standard for the future of clean power without hydrocarbons and we will be bringing officials of the Malaysian Government to the AVEC Technology Demonstration in Virginia Beach, USA on July 14th.”
Ahmed Khalifa, AVEC Chairman, added, “This license and the revenue received under it represent what we believe will be the first of many revenue streams in 2009. Mr. Mahmud’s background in Oil and Gas and their company’s ability to deploy the engines using value added Palm Oil will be very profitable for all and provide a springboard of commercial credibility which can then be expanded to other areas of the world.”
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