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NOTE 10: COMMITMENTS AND CONTINGENCIES
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12 Months Ended |
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Dec. 31, 2012
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| Commitments and Contingencies Disclosure [Text Block] |
NOTE
10: COMMITMENTS AND CONTINGENCIES
On
June 26, 2012, upon the increase to the Company’s
authorized common stock, the Company granted Archean Group,
in conjunction with a March 2012 joint venture agreement, the
right to acquire up to 20% of the outstanding common stock of
the Company at a discount to the market price on the date of
exercise. Archean had the right to acquire the common stock
at a 20% discount to the market price between June 26, 2012
and June 30, 2012. Archean did not exercise this right.
Contingent upon the successful commissioning of a pilot
plant, Archean also has the right to acquire 20% of the
outstanding common stock of the Company at a 15% discount to
the market price if the commissioning of the pilot plant
occurs prior to March 2013. The Company does not expect the
commission of the pilot plant to take place prior to March
2013. On December 18, 2012, Clean Coal sent a notice of
termination, effective immediately, to Archean pursuant to
the termination provisions of the joint venture agreement
based on Archean’s continuing failure to cure
non-payment to SAIC.
Litigation
Clean
Coal was served with a statement on or about January 23, 2013
in an international arbitration proceeding titled Beijing
Deheng Law Firm v. Clean Coal Technologies, Inc., #x20230033,
filed with the China International Economic and Trade
Arbitration Commission (“CIETAC”). The Beijing
Deheng Law Firm (“Deheng”) has filed a claim
against the Company for alleged breach of a Settlement
Agreement to pay legal fees and costs in the alleged amount
of approximately $115,908 plus fees and costs. The Company
intends to contest the claim due to misrepresentations
concerning the lack of qualifications of the purported
attorney rendering the services as well as apparent conflicts
of interest among parties related to Deheng that are
currently under investigation by the Company. Clean Coal has
accrued an aggregate of $129,375 payable to Deheng as of
December 31, 2012 which is included as accounts payable in
the balance sheet herein.
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