Letter Agreement between N-Viro International and Power Generation Plant
TOLEDO OHIO – July 23, 2012 – N-Viro International Corporation (NVIC:OTCQB) has entered into a Letter Agreement of Intent (the “Agreement”) with a Pennsylvania power generation company for the final phase of N-Viro Fuel™ testing. The Agreement provides revenue to our mobile N-Viro Fuel™ pilot project via a one-time, non exclusive license fee for the use of the N-Viro Fuel™ technology during the test period. An N-Viro Fuel™ purchase agreement for the test fuel is contained within the Agreement. N-Viro Fuel™ will be used to execute a 20% substitution of the commercial energy heating value required by the electric producer.
The Agreement acknowledges the success of the previous 10% N-Viro Fuel™ test conducted in September 2011, and upon the completion of this 20% substitution test and reasonable mutual consent the test was successful, the parties will agree to evaluate the full-scale commercialization of a permanent N-Viro Fuel™ facility. The Agreement identifies parameters for commercialization of the N-Viro Fuel™ technology and incentivizes the power generator’s investment by entering into a twenty year N-Viro Fuel™ purchase agreement. The Agreement provides early termination by either party with penalty or mutual termination without penalty. The parties anticipate completion of this 20% test by the end of 2012.
