EXHIBIT 10.3 TO FORM 10
MEMORANDUM OF UNDERSTANDING
BETWEEN CLEAN COAL TECHNOLOGIES, INC., AND SHANGHAI HUAYI (GROUP) COMPANY – DEPARTMENT OF DOMESTIC & FOREIGN COOPERATION.
This Memorandum of Understanding (hereinafter referred to as MOU) is made in Shanghai, and entered into by and between Clean Coal Technologies, Inc. (CCTI), whose address is 12518 West Atlantic Boulevard, Coral Springs, Florida 33071, United States of America, and Shanghai Huayi (Group) Company, Department of Domestic & Foreign Cooperation (HUAYI), whose address is Room 1707, Mansion of Hualun, 560, Xu Jia Hui Road, Shanghai, PRC. The Parties have reached the following mutual understanding in connection with certain business cooperation between the Parties. CCTI and HUAYI are collectively referred to as the “Parties” and each individually referred to as a “Party”.
The Parties will work collectively to determine the applicability of, and the utilization of CCTI’s technologies for HUAYI’s gasification and other coal, chemical, and related environmental technologies. Each Party agrees to disclose to the other Party certain proprietary information on a strictly confidential basis. The receiving party will take necessary measures to protect such proprietary information and is restricted from disclosing it to any third parties without prior consent by the disclosing party.
HUAYI will furnish to CCTI the characteristics of the coal to be used by the HUAYI gasification process, against which CCTI will provide an assessment as to the applicability of the CCTI technology in meeting these requirements. CCTI will also evaluate US coal samples that would meet these requirements, and provide the costs and test results as a means of HUAYI determining the availability and suitability of similar coal resources in China. Subsequently, HUAYI will provide to CCTI specific samples representative of the low grade coal (lignite bituminous, and low-grade bituminous) to be tested to determine whether the coal would be qualified as feed stock for HUAYIs gasification requirements using CCTIS technology. The coal sample test will be conducted and supervised by Science Applications International Corporation (SAIC) and Benham Co., at no cost to HUAYI. By these means both Parties will work together to define the most appropriate coal characteristics to meet HUAYIs requirements.
Should the outcome of these feasibility tests be positive, the two Parties would enter into a formal and binding business cooperation relationship, the terms and conditions of which to be further discussed and agreed between the Parties. While the interests of the two Parties would initially be focused on coal gasification, it is understood that CCTI’s technology could have broader applicability to HUAYI’s requirements, including the development of chemical by-products from coal. These business opportunities may be explored in conjunction with, or separately from the gasification initiative.
The effective date of this MOU is the date of the signature last affixed to this page.
IN WITNESS WHEREOF, the Parties to this MOU through their duly authorized representatives have executed this MOU on the days and dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this MOU as set forth herein.
CLEAN COAL TECHNOLOGIES, INC.
SHANGHAI HUAYI (GROUP) COMPANY, DEPARTMENT OF DOMESTIC & FOREIGN COOPERATION