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More insider pontification that led to zero sales!
"TWST: What are Save the World Air's priorities for the next four to eight quarters?
Mr. Kyte: Next year to two. Well, in the next year, we want to become profitable. We are transitioning out of R&D and into sales.
TWST: How big is your sales staff at the moment?
Mr. Kyte: We have a unique model. About half a dozen consultants or consulting organizations would comprise our sales staff. This would encompass people and organizations who have existing relationships with fleet managers, the people for example who handle the transportation for McDonald's, Atlas Van lines, FedEx, UPS, Wal-Mart, etc., fleets that are comprised of hundreds and thousands of trucks. We have approached and developed relationships with consultants who can get these peoples ear. So, our sales force isn't what we call normal or traditional. We're more focused on working with organizations and people who have existing relationships -- 20, 30-year relationships -- with transportation managers in the industry."
They have used so called third party's but they are paid for and under the control of the company. Look what Tao said over 8 years ago! Glad the company not in charge of middle defense!
SCIENTIFIC TESTS CONFIRM VIABILITY OF STWA'S ELECTRA TECHNOLOGY IN IMPROVING OIL TRANSPORTATION AND REFINING PROCESSES
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MORGAN HILL, CA--(Marketwire - June 5, 2008) - Save the World Air, Inc. (OTCBB: ZERO) today announced that recently concluded tests that were conducted by the Temple University, Department of Physics, and which were sponsored by a major corporation in the petroleum industry, resulted in substantial reductions in the viscosity of heavy crude oil, when treated with a patent-pending pulsed electromagnetic device. These results confirmed earlier tests and hold direct benefits to a wide variety of processes associated with the oil and gasoline industry, including the more efficient transportation of fuels through pipelines, potential applications to oil refining processes, and improved fuel economy.
The sponsoring corporation, a major international engineering and oil refinery construction company, sponsored the tests and the results indicated substantial reductions in the viscosity of samples of heavy crude oil, with three differing densities. In the petroleum industry, the standard measure of crude oil is API (American Petroleum Institute) gravity and the higher the number, the "lighter" or less dense the crude oil. Crude oils with an API of less than 21.5 are considered "heavy crude oil." Typically, Brent crude is API 38, and is considered "light crude." The NYMEX crude oil futures contracts call for crude with not less than API 37, nor more than API 42. The oil in the test samples had densities of API 11, API 15 and API 21. The reduction in viscosity derived as a result of the use of the pulsed electromagnetic technology, without the heat factor, ranged from 16% for API 11 to 19% for API 21. The results of these tests indicate that oil can be moved more efficiently and at greater speed through pipelines from the wellhead, as well as a host of additional applications in the transportation and refining processes.
Light crude oils are simpler to refine than heavy crude oils and tend to trade at a premium price relative to heavy oils. At times this premium has been as much as $20 per barrel. Profit margins for companies with equipment and capacity to refine heavy grades of crude oil can be far larger than for refiners only capable of refining the most expensive grades of oil. This discovery can be of significant benefit to the oil industry, given the quantity of heavy crude available throughout the world, which has been prohibitive to extract in years past because of technological, refining, and market pressures.
In his report, Dr. Rongjia Tao, Temple University Physicist, estimated that substantial cost savings would be generated using the "Pulsed Electric and Magnetic Field" technology compared to other methods which add chemicals or gasoline to heavy crude oils. Within his scientific report, Dr. Tao stated, "We are very confident that STWA's licensed technology will be able to reduce the viscosity of crude oils, similar to AP 21 by 30% with the electromagnetic treatment technology. Dr. Tao also reported that in addition to the oil pipelines, this viscosity reduction method may also be useful for heavy crude oil production at oil wells." It is the intent of STWA and Temple University to pursue developing this specific application with major oil producers and refineries.
In his statement concerning these recent developments, STWA Chief Executive Officer, Chuck Blum related, "This most recent scientific study is another in a long line of tests conducted over the past ten years pertaining to the viability of using magnetic and electromagnetic fields to improve viscosity of fuels. STWA has been actively developing a series of devices based on this technology which we believe hold promise throughout a wide range of applications in the oil and automotive industries. With the recent surge in prices worldwide for crude oil and gasoline/diesel, the benefits of utilizing electromagnetic fields in the form of MagChargR and Elektra™ have become even more obvious. The company is continuing its efforts to develop strategic partnerships with oil producers, automotive companies, after-market manufacturers, and retail outlets to assure that this technology is available worldwide."
More truth from management:
SAVE THE WORLD AIR CLARIFIES ORDER SHIPMENTS
"
Download PDF
LOS ANGELES, CA -- (MARKET WIRE) -- May 2, 2007 -- Save The World Air, Inc. (OTCBB: ZEROE) ("STWA"), as a follow up to its press release dated April, 25, 2007, seeks to provide clarification on the timing and quantity of pending orders regarding shipments to its Vietnam and Indonesian distributors:
STWA originally stated that it has "entered into a binding distribution agreement under which Adtech (its distributor in Vietnam) has paid cash in advance to support its first shipment against an initial order of 10,000 units, which was shipped immediately." The first shipment of this initial order consisted of 2,000 units; STWA received payment for these 2,000 units. The balance of this order was originally scheduled to ship at various times through May 2007 and is now expected to ship, at the request of Adtech, at various times through December 2007. All shipments to Vietnam must be confirmed by the distributor and will be paid for by the distributor in cash against documents.
STWA also stated that its Indonesian distributor, PT CCI, "has increased its first order commitment from 10,000 pieces to 100,000 pieces with shipments beginning this month." STWA has received a cash deposit against the first 2,000 units, which are to be shipped immediately. A total of 10,000 pieces (including the original 2,000) are expected to be shipped at various times through October 2007, and paid for in cash against documents. STWA also received a purchase order from PT CCI for an additional 90,000 units, which are initially scheduled for shipment at various times through December 2008. All shipments to Indonesia must be confirmed by the distributor and will be paid for by the distributor in cash against documents.
About Save The World Air, Inc.
Save The World Air, Inc. is currently engaged in the product development and initial sales and marketing of its products which using proprietary technologies can be installed on motor vehicles, motorcycles and stationary engines to reduce harmful emissions. The company's ECOChargR™ and MAGChargR™ devices using these patented technologies have been proven in repeated independent laboratory testing to both reduce harmful emissions including Green House Gas (GHG) emissions normally caused by catalytic equipment while still improving fuel efficiency and to enhance overall engine performance. The company's patent-pending CAT-MATE® devices have been proven to reduce harmful CO, NOx, and HC emissions caused by internal combustion engines in repeated independent laboratory testing. For more information, visit the company's website at www.stwa.com.
Safe Harbor Statement
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as market acceptance, ability to attract and retain customers, success of marketing and sales efforts, product performance, competitive products and pricing, growth in targeted markets, risks of foreign operations, and other information detailed from time to time in the Company's filings with the United States Securities and Exchange Commission."
No other pr ever referenced this product again! Pivot onto magchgr and Elektra!
Penny press release are always the truth.
SAVE THE WORLD AIR RECEIVES FIRST ORDER FROM GOLDEN ALLIED FOR CHINA
Download PDF
LOS ANGELES, CA -- (MARKET WIRE) -- July 27, 2006 -- Save the World Air, Inc. ("STWA") (OTCBB: ZERO) today announced that it has received its first order from its exclusive distributor in China, Golden Allied Enterprise Group (GAE). The initial order is for 100,000 devices to begin shipping within the next 60 days, and to ship in installments through July 31, 2007. The devices will be distributed to motorcycle and small engine OEMs and the aftermarket throughout China.
This order fulfills the first part of the distribution agreement, signed with GAE earlier this year, in which the initial order is to be placed by July 31, 2006. The distribution agreement requires GAE to purchase 11,500,000 devices over a five-year period in order to remain STWA's exclusive distributor in China. The placing of the first order with GAE is a significant milestone for STWA as it marks the Company's transition to generating revenues through the commercial sale of its devices.
Company admits its products are not ready for prime time!
We believe the use of the word “proven,” in the context of the disclosures and discussion above, does not suggest that the AOT technology is, at this time, commercially viable. Nonetheless, to address the staff’s concerns, we will revise future filings by removing the word “proven” and replacing it with the word “demonstrates” or “shows.” Please advise.
TCP was an object failure.
In 2013, the Company entered into an Equipment Lease/Option to Purchase Agreement (“TransCanada Lease”) with TransCanada Keystone Pipeline, L.P. by its agent TC Oil Pipeline Operations, Inc. ("TransCanada") which agreed to lease and test the effectiveness of the Company’s AOT technology and equipment on one of TransCanada’s operating pipelines. As previously reported in our 10-K report filed with the SEC on March 16, 2015, in June 2014, the equipment was accepted by TransCanada and the lease commenced and the first full test of the AOT equipment on the Keystone pipeline was performed in July 2014 by Dr. Rongjia Tao of Temple University, with subsequent testing performed by an independent laboratory, ATS RheoSystems, a division of CANNON™ (“ATS”) in September 2014. [color=red]]Upon review of the July 2014 test results and preliminary report by Dr. Tao, QS Energy and TransCanada mutually agreed that this initial test was flawed due to, among other factors, the short term nature of the test, the inability to isolate certain independent pipeline operating factors such as fluctuations in upstream pump station pressures, and limitations of the AOT device to produce a sufficient electric field to optimize viscosity reduction. [/colorSubsequent testing by ATS in September 2014 demonstrated viscosity reductions of 8% to 23% depending on flow rates and crude oil types in transit. In its summary report, ATS concluded that i) data indicated a decrease in viscosity of crude oil flowing through the TransCanada pipeline due to AOT treatment of the crude oil; and ii) the power supply installed on our equipment would need to be increased to maximize reduction in viscosity and take full advantage of the AOT technology. While more testing is required to establish the efficacy of our AOT technology, we are encouraged by the findings of these field tests performed under commercial operating conditions. The TransCanada Lease was terminated by TransCanada, effective October 15, 2014. Upon termination of the TransCanada Lease, all equipment was uninstalled, returned, inspected and configured for re-deployment.
On July 15, 2014, the Company entered into an Equipment Lease/Option to Purchase Agreement (“Kinder Morgan Lease”) with Kinder Morgan Crude & Condensate, LLC (“Kinder Morgan”) under which Kinder Morgan agreed to lease and test the effectiveness of the Company’s AOT technology and equipment on one of Kinder Morgan’s operating pipelines. Equipment provided under the Lease includes a single AOT Midstream pressure vessel with a maximum flow capacity of 5,000 gallons per minute. The equipment was delivered to Kinder Morgan in December 2014 and installed in March 2015. In April 2015, during pre-start testing, low electrical impedance was measured in the unit, indicating an electrical short. A replacement unit was installed May 2015. The second unit also presented with low impedance when flooded with crude condensate from Kinder Morgan’s pipeline. Subsequent to design modifications, a remanufactured AOT unit was installed and tested at Kinder Morgan’s pipeline facility in in August 2015. Initial results were promising, with the unit operating generally as expected. However, voltage dropped as preliminary tests continued, indicating decreased impedance within the AOT pressure vessel. QS Energy personnel and outside consultants performed a series of troubleshooting assessments and determined that, despite modifications made to the AOT, conductive materials present in the crude oil condensate continued to be the root cause of the decreased impedance. Based on these results, QS Energy and Kinder Morgan personnel mutually agreed to hold on final acceptance of equipment under the lease and temporarily suspend in-field testing to provide time to re-test crude oil condensate in a laboratory setting, and thoroughly review and test selected AOT component design and fabrication. Subsequent analysis and testing led to changes in electrical insulation, inlet flow improvements and other component modifications. These design changes were implemented and tested by Industrial Screen and Maintenance (ISM), one of QS Energy's supply chain partners in Casper, Wyoming. Test performed by ISM at its Wyoming facility indicated significant improvements to system impedance and efficiency of electric field generation.
In February 2016, the modified AOT equipment was installed at Kinder Morgan’s facility. Pre-acceptance testing was performed in April 2016, culminating in more than 24 hours of continuous operations. In-field viscosity measurements and pipeline data collected during this test indicate the AOT equipment is operating as expected, resulting in viscosity reductions equivalent to those measured under laboratory conditions. Supervisory Control And Data Acquisition (“SCADA”) pipeline operating data collected by Kinder Morgan during this test indicated a pipeline pressure drop reduction consistent with expectations. Kinder Morgan has provided the Company with a number of additional crude oil samples to be tested in the laboratory for future test correlation and operational planning purposes. Subject to final review, Kinder Morgan and QS Energy will determine next steps which may include integration of Kinder Morgan’s SCADA system with the AOT control system, 30 days of continued operation during batched pipeline flow, and final installation and acceptance of the equipment under the lease.
Funny no 8k on Kmi acceptance of the companies one and only active full size field test. Must have missed that one!
Hopefully they can book lots of dog and pony lab demos for 10k a crack. I hear each customer gets a gold foil embossed certificate of "general greenery" as verified by the scale Aot-petite and all its Tao wizardry.
"
It's a NO BRAINER to contract for and install the AOT TODAY anywhere on their pipeline infrastructure. If their shareholders could learn of this managerial incompetence (but they can't because of an NDA), IMO, heads would roll.
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I'm sure Richard Kinder and his 7.1 billion in net worth is very concerned about burying the Quick strike gold! Hilarious comedy!
Point being Zinke isn't going anywhere near Qsep.
Really here's how Bloomberg saw it:
https://www.bloomberg.com/news/articles/2017-01-17/trump-s-interior-pick-consulted-for-a-company-with-no-customers
President-elect Donald Trump’s pick to head the Interior Department earned $85,000 from a company that has a stock price of 8 cents and an accumulated deficit of more than $100 million.
Before he was elected to Congress from Montana, Ryan Zinke was a board member and consultant for Save the World Air, according to disclosure forms released by the Office of Government Ethics this month. The company, founded in 1998 and now called QS Energy Inc., is marketing a system that it says will boost the flow of oil in pipelines.
According to a Security and Exchange Commission filing, Zinke, a former Navy Seal, was paid $5,000 a month to arrange introductions and meetings, including with state officials. His efforts appeared to pay off: After he joined the company, TransCanada Corp. agreed to pay the company for letting it test its equipment on the U.S. portion of the Keystone pipeline, resulting in QS Energy’s first revenue from that product, according to another SEC filing.
Company fabricated at least 4 of 5 units but does NOT do trade shows or advertise its product in the trades, like every other company operating in this space. I wonder why they have not taken the sale model to any trade exhibition that caters to pipeline operations. It's certainly not for a lack of funds. I have been personally informed they will never run out of money! Hehehe!
The lack of scientific legitimacy has been there since day 1 inspiration. Qsep have tried to reform themselves but the money was too lucrative. Realistically after Rand panned the technology, it should have been game over. Instead, they ramped up and found money and a University willing to play ball for cash! Bigger to blame.... somewhat as he rubber stamped every the CEO proposed. Cecil spent millions and he personally made bank and then was allowed to walk free with cash and stock in hand. All of Qsep management have been overpaid and are good at "appearing" to know what they are doing. They do not.
The scientific claims made by the company and its research professor have never been duplicated by an unbiased third party. The research has been criticized by peers and all disclosures of any field tests point to problems with device working as claimed. Only long term contracts that produce a cash flow can change this picture.
"MTV is a joke. Any company appearing on that show is seriously strapped for cash and looking to move paper. Legitimate companies don't go on garbage "stock awareness" programs to raise awareness, they are too busy running a business.
Proven? Nope not according to the SEC. who stated:
3. We reissue our prior comment 2 in part. You continue to suggest that your AOT technology has been “proven” to “increase the energy efficiency of oil pipeline pump stations.” Based on the information you provided on a supplemental basis and the related disclosures, and for the reasons cited in prior comment 2, please revise your disclosure to remove the claim that the technology has been “proven.”
4. Similarly, please revise to eliminate the suggestion at page 6 that you have “proven” your “ability to build, deliver and operate [your] AOT equipment on a high-volume commercial pipeline” in light of the details you supplied regarding the problems your equipment has encountered and the lack of any substantial commercial usage. As you state at page 10, you “have not proven the commercial viability of this product.”
"
Aot has been proven with billion dollar oil companies on a live pipeline test.
Next "
Who? Kmi has not accepted the device nor can Qsep advertise that its products are "commercially proven". So the above quote cannot be claimed by the company. In my mind the company is clearly suppressing the contract status so it can prevent its share price from entering a black hole. Legitimate companies don't need to play these games.
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QSEP is on the path to becoming a major player in the oil pipeline industry. It's been a journey and the fruits of all the labour are finally coming to fruition.
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Not a chance...all companies crawl before they can walk. This one tried to run a marathon first with a prop the size of 4 school buses strapped together! It failed miserably but was touted to have worked after it was terminated. How convenient! It did accomplish one goal very well. Extend the narrative...and once again investors eyes glazed over and they bought into the party line.
This application of oil flow Electro field treatment originally introduced with magnets has not been proven to do anything other than to de scale in certain applications but and has been as a dewatering system for decades. No other application has been adopted. Nobody has bought any of the half dozen concepts Qsep has actively promoted as " gamechanging". Until they do one must assume they will never.
The fallacy that the company will never run out of money because they haven't done so far breaks the absurdity meter! It can and has happened to much healthier companies that just failed to manage risk or made bad acquisitions. Qsep has spent 10 times the capital that a comparable size penny stock would be able to raise through legitimate means. Qsep had used dubious method to keep the dream alive like making house calls pitching doctors dentists in how revolutionary it products are... but history had shown they have been unable to deliver anything of value no matter what acronym they throw out!!
Here is just small partial list: magchgr, catmate, Elektra, joule heating, Aot, and Aot super size!
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Tick tock tick tock"
18 years ticking!
Thus the paint job at the end of day!
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Incorrect and flawed.
KM test was a success. TC had flaws.
Next
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So your saying that the KMI contract finally incepted and the term lease payment of 20K a month for 4 months has been paid? Great that buys another month!
What's really chunklelisus is the won ton assumption that pumping condensate is the same as dilbit and how Aot works great for both!
Really...in what way?
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KM still have the device. Silence dors not mean NON adoption. On the contrary. These are the facts. "
Huh? The contract info has been posted. The interpretation by shareholders may be positive but from a legal standpoint is basic and straightforward. The agreement requires a payment as consideration. That payment has not been reported and as IE noted the company admits acceptance has NOT taken place. There is no dispute regarding this fact. If you do then provide a link.
That does not constitute a contract anymore than the Tcp deal which was left on the line months after its official termination. Until Qsep does a real deal you have to assume they will never!
Here's the Kmi lease. There is no try before you buy or modify for SCADA integration garbage. It's pretty cut and dry. If they accept delivery they must pay. Since they haven't sent a check or bought the device outright, the only conclusion you can arrive at is that Kmi like Tcp isn't moving forward and that Qsep management is suppressing that news. In my book that's not protected by forward looking statements.
"EXHIBIT 10.1
STWA, Inc.
735 State Street, Suite 500
Santa Barbara, CA 93101
Toll Free +1(877) USA-STWA
Main +1(805) 845-3581
Fax +1(805) 845-4377
Web www.stwa.com
Lease Agreement No. TBD
EQUIPMENT LEASE/OPTION TO PURCHASE AGREEMENT
THIS EQUIPMENT LEASE/OPTION TO PURCHASE AGREEMENT (the "Lease") is made effective the day of July 15 , 2014 (" Effective Date ")
BETWEEN:
Save The World Air, Inc.
(the " Lessor ")
- and -
Kinder Morgan Crude & Condensate LLC
(" Kinder Morgan ")
collectively, the "Parties" or individually, a "Party")
RECITALS
WHEREAS Kinder Morgan operates a high pressure oil pipeline and related facilities and the Lessor has developed certain technology known as "Applied Oil Technology™ (AOT™) ("Technology");
AND WHEREAS Kinder Morgan wishes to lease and test the effectiveness of Lessor's Technology and Equipment (as described below);
AND WHEREAS the Lessor is prepared to lease the Equipment to Kinder Morgan on the terms and conditions set forth in this Lease, which includes an option for Kinder Morgan to purchase the Equipment during or upon termination of the Initial Term or Extended Term, if any (defined below).
NOW, THEREFORE in consideration of the covenants set forth below and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the Parties, the Parties agree, as follows:
1. Equipment Leased .
The Lessor hereby leases, non-exclusively, to Kinder Morgan and Kinder Morgan leases from the Lessor the equipment, along with the equipment attached thereto or contained therein as specified in Schedule A attached to this Lease and made a part hereof (the " Equipment "), together with all parts, components, accessories, replacements, substitutions, additions and improvements now or in the future attached to or forming a part thereof.
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2. Delivery, Installation, Data Collection and Maintenance of the Equipment .
A. The Lessor, at Lessor's expense, shall deliver the Equipment to Kinder Morgan at a location designated by Kinder Morgan by a date no later than December 31, 2014. This date may be extended by mutual written consent of the Parties.
B. Installation shall be performed by and at the expense of Kinder Morgan in a professional and workmanlike manner in conformance with all recommendations of Lessor, and in compliance with good construction and engineering practices.
C. The Lessor shall provide Kinder Morgan with instructional service in the installation and operation of the Equipment.
D. Any alterations or modifications to the Equipment may be made only upon consultation with and written approval by the Lessor, which approval shall not be unreasonably withheld.
E. Kinder Morgan, at its expense, shall keep and maintain the Equipment in good working order and repair. In the event the Equipment, during the Term hereof, is lost, damaged, destroyed, in whole or in part, or stolen, Kinder Morgan shall pay to Lessor the replacement cost of the Equipment, and the obligations of this Lease shall end.
F. All repairs and maintenance of the Equipment shall be performed promptly by Kinder Morgan. Kinder Morgan shall supply labor, at Kinder Morgan's cost, and all materials shall be provided by Lessor, at Lessor's cost. Lessor shall provide Kinder Morgan with a designated person to assist in Kinder Morgan's repairs and maintenance of the Equipment.
G. Data acquisition will be collaborative and transparent between Lessor and Kinder Morgan, including, but is not limited to data described in Schedule C. All data collected will be subject to mutually binding confidentiality and nondisclosure agreements. Subject to Section 4 of that certain Mutual Confidentiality Agreement between the Parties of even date herewith data cannot be shared or released to any outside entity (other than Lessor or Kinder Morgan) or third party without the written consent of both Parties.
H. Lessor or Kinder Morgan may, from time to time, make changes, alterations, modifications or improvements to the Equipment ("Improvements"). Any such Improvements will be the sole intellectual property of Lessor. Kinder Morgan may not make any Improvements to the Equipment without the express written consent of Lessor.
3. Term and Lease Payment .
3.1 The term of this Lease of Equipment shall be for a period of four (4) months (the " Initial Term "), commencing on the date of successful completion of the Equipment's direct current power supply is successfully energized by Lessor following installation pre-startup safety review (PSSR) by Kinder Morgan, which shall be completed by Kinder Morgan no later than thirty (30) days following Lessor's delivery and Kinder Morgan's acceptance of the Equipment in accordance with Section 5.1 below. On sixty (60) days' written notice prior to the expiration of the Initial Term, Kinder Morgan shall have an option to extend the Lease for a minimum of twelve (12) and a maximum of eighty-four (84) additional months (" Extended Term "), subject to Kinder Morgan's exercise, if at all, of its option to purchase the Equipment in accordance with Section 12, below.
2
3.2 During the Initial Term and Extended Term, if any, Kinder Morgan shall pay to the Lessor, a monthly lease fee in U.S. Dollars in the amount of Twenty Thousand Dollars ($20,000) (" Monthly Lease Payment "). In the event the Equipment is removed from service at its initial location and re-installed to a new location during the Initial Term of the Lease, the Monthly Lease Payment during the Initial Term of the Lease shall be reduced to $5,000 per month (" Standby Lease Payment ") until the Equipment is placed back in service at its new location, at which time the Monthly Lease Payments shall again be Twenty Thousand Dollars ($20,000). If the Equipment is in service for a partial month, the Monthly Lease Payment and Standby Lease Payment shall be calculated and paid on a pro rata per day basis.
3.3 Kinder Morgan shall pay each Monthly Lease Payment to the Lessor within 15 days of invoicing by Lessor during the Initial Term and Extended Term, if any, of this Lease.
3.4 Kinder Morgan shall pay each Monthly Lease Payment to a bank account designated by the Lessor.
3.5 Kinder Morgan shall be responsible for payment of all licensing and registration fees in respect of the Equipment.
4. Title .
The Parties agree that title and ownership to the Equipment shall remain at all times with the Lessor, unless purchased by Kinder Morgan in accordance with Section 12, below.
5. Acceptance of Delivery .
5.1 Upon receipt of Equipment delivery, Kinder Morgan shall inspect Equipment and either promptly report any deficiencies to Lessor or accept possession. By accepting possession of the Equipment under this Lease, Kinder Morgan accepts the condition of the Equipment.
5.2 Upon consultation with and written approval by Lessor, the Parties agree that Kinder Morgan is authorized, at its sole expense, to furnish or install on the Equipment new or renewed replacement parts and to make any additions or improvements which Kinder Morgan deems necessary for the proper maintenance and operation of the Equipment. All such parts, additions and Improvements shall be deemed a part of the Equipment, and subject to Section 4, above. Notwithstanding anything to the contrary, contained herein, installation materials and components such as hardware, pipe, flanges, fittings, valves, wiring, computers, controllers and electronics procured and installed by Kinder Morgan, as necessary to install the Equipment to Kinder Morgan's pipeline, shall remain property of Kinder Morgan. Installation materials and components as described above procured and installed by Lessor, shall remain property of Lessor.
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6. Operating Use .
Kinder Morgan shall operate the Equipment during the Initial Term and Extended Term, if any, for the purpose only as set forth in the Recitals, above.
7. Limitations of Liability .
7.1 Each Party shall be liable to the other Party, its agents and employees for all losses or damages arising out of or attributable to the acts or omissions, willful misconduct or breach of this Lease by such Party.
7.2 Kinder Morgan acknowledges that Kinder Morgan will obtain the Equipment on an "as is where is basis" without relying on the Lessor. The Lessor makes no warranty or representation, express or implied, statutory or otherwise, as to the design, quality, capacity or fitness of the Equipment for any particular purpose.
7.3 Kinder Morgan agrees that no defect or unfitness of the Equipment shall relieve Kinder Morgan of the obligation to pay the Monthly Lease Payments throughout the Initial Term and Extended Term, if any, hereof.
7.4 Kinder Morgan acknowledges and agrees that the Lessor shall not be liable or responsible for any non-compliance with any statute, law, ordinance, rule or regulation relating to the installation, operation, use or maintenance of the Equipment, it being expressly understood that all such liability shall be the responsibility of Kinder Morgan. Lessor shall be responsible to confirm the manufacturing of the Equipment is within compliance with all applicable state and federal regulations and codes.
7.5 IN NO EVENT SHALL EITHER PARTY HERETO BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT CONSEQUENTIAL OR PUNITIVE DAMAGE, WHETHER BASED ON TORT OF CONTRACT.
8. Indemnity.
8.1 Each Party ("Indemnitor") shall indemnify and hold harmless the other Party "(Indemnitee"), its affiliates and each of their representatives, directors, officers, employees and agents from and against all claims, demands, losses, costs (including attorneys' fees), damages, suits or proceedings by third parties (collectively referred to as "Claims") that arise out of or are attributable to:
(i) Kinder Morgan's installation, operation and maintenance of the Equipment;
(ii) any breach of this Lease by the Indemnitor, or its personnel, agents or subcontractors;
(iii) Kinder Morgan's obligations to pay taxes and fees as a result of this Lease, and any related penalties imposed by any governmental or other authority having jurisdiction.
(iv) in the case of Lessor, any claim or suit for alleged infringement of any patent, industrial design, license, copyright or trademark resulting from or arising in connection with the manufacture, sale, or use or other disposition of the Equipment. If the Equipment or any portion thereof constitutes an infringement, Lessor shall, in addition to its other obligations under this Agreement, at its own expense and as directed by Kinder Morgan, either procure for Kinder Morgan the right to continue using such Equipment without liability for such infringement, or modify or replace such Equipment with non-infringing Equipment accomplishing the same purpose as the replaced Equipment.
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8.2 The Indemnitor will assume on behalf of the Indemnitee, and conduct with due diligence and in good faith, the defense of any Claims with counsel reasonably satisfactory to the Indemnitee; provided that the Indemnitee and their insurer shall have the right to be represented therein by advisory counsel of their own selection and at their own expense; provided further that if the defendants in any such action include both the Indemnitor and the Indemnitee, and if the Indemnitee will have reasonably concluded that there may be legal defenses available to it which are different from, additional to, or inconsistent with those available to the Indemnitor, then the Indemnitee and their insurer shall have the right to select separate cousel to participate in the defense of such Claims on its own behalf and that the Indemnitor's expense. Without the prior consent of the Indemnitee, the Indemnitor will not enter into any settlement of any Claim which would lead to liability or create any financial or other obligation on the part of the Indemnitee.
9. Insurance .
Kinder Morgan shall bear the risk, responsibility and liability for the installation, operation and maintenance of the Equipment. Kinder Morgan shall maintain, at its cost, all such insurance on the Equipment with losses payable to Lessor against fire, theft, destruction, property damage, personal injury, general liability and other risks as are appropriate and specified by Lessor. Kinder Morgan shall provide Lessor proof of such insurance.
10. Default .
10.1 Kinder Morgan shall be in default hereunder if Kinder Morgan fails to pay the Monthly Lease Payment as required hereunder within fifteen (15) business days of the due date thereof.
10.2 Either Party will be in default under this Lease if the Party defaults in the performance of an obligation required from the Party under this Lease.
10.3 If either Party defaults in performance of any of its obligations under this Lease, the other Party shall provide a written notice of the default to the defaulting Party and if the defaulting Party does not remedy the default within ten (10) business days after the receipt of such notice, the other Party may rely on any legal or equitable remedy available in law or equity.
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11. Return Condition .
11.1 Subject to Kinder Morgan's option to purchase under Section 12, below, upon the expiration or termination of this Lease, Kinder Morgan shall, at Kinder Morgan's expense, disconnect and prepare the Equipment. The Equipment shall be free and clear of oil and in substantially the same condition as received except for ordinary wear and tear. Lessor will retrieve Equipment from the site at Lessor's expense.
12. Option to Purchase .
12.1 Provided Kinder Morgan is not in default with respect to any obligations or payments required to be made under this Lease, the Lessor grants to Kinder Morgan, during the Initial Term and Extended Term, if any, hereof, an option to purchase the Lessor's interest in the Equipment for the amounts set forth in the attached Schedule B.
12.2 This option may be exercised by Kinder Morgan giving the Lessor written notice (the "Notice") of its intention to exercise the option. The Notice shall set forth the time for the closing of the sale which shall be the date which is sixty (60) days after the date of the notice or in the event there are less than sixty (60) days remaining in the Initial Term or Extended Term, if any, at the end of such term (the "Closing date"). On the Closing Date, Kinder Morgan shall pay the purchase price set forth in Schedule B to the Lessor by way of certified check or money order and the Lessor shall transfer its interest in the Equipment to Kinder Morgan whereupon this Lease shall cease.
12.3 Kinder Morgan shall pay any and all taxes, license or registration fees, or other fees, costs, or charges payable in connection with any such sale and purchase of the Equipment. The bill of sale from the Lessor to Kinder Morgan shall contain warranties on the part of the Lessor that it has done not act nor created any security interest in the Equipment that would adversely affect the title to it.
13. Encumbrances, Taxes and Other Laws .
Kinder Morgan shall keep the Equipment free and clear of any liens or other encumbrances, and shall not permit any act where Lessor's title or rights may be negatively affected. Kinder Morgan shall be responsible for complying with and conforming to all laws, regulations, ordinances and statutes relating to the possession, use, operation or maintenance of the Equipment. Furthermore, Kinder Morgan shall promptly pay all taxes, fees, licenses and governmental charges, together with any penalties or interest thereon, relating to the possession, use, operation or maintenance of the Equipment.
14. Termination .
During the Initial Term, either Party may terminate this Agreement at any time for any reason on forty-five (45) days written notice to the other.
6
15. Mutual Representations and Warranties . Each Party agrees, represents and warrants to the other Party that:
(a) This Lease constitutes a valid and legally binding obligation of the Party, enforceable against the Party in accordance with its terms and all applicable laws;
(b) Neither the entering into or the delivery of this Lease nor the completion of the transactions contemplated in this Lease by the Party will result in the violation of any agreement or other instrument to which the Party is a party or by which the Party is bound or in a violation of any laws applicable to the Party;
(c) Lessor owns all right, title and interest in and to the Equipment and any parts, additions and Improvements made thereon or thereto.
16. Address .
Any notice or documentation required under this Lease must be provided either by personal service to the address below, or e-mail to the address below, or delivery by registered mail to the Party's address below."
This company has been claiming success for decades...although its always accompanied by safe harbor speech and never has been monetized into anything tangible except insider comps and the idiotic licensing deals that Temple and Tao get , put together by the gang that couldn't shoot straight! Every Qsep CEO has announced some sort of game changing development and its all BS to get more people to invest in this penny pipe dream.
If they are really going to start make progress after years of failure... (highly unlikely) the prudent strategy would be to wait until they actually get a major contract that's can be verified and scale in as they become profitable. I'm sure this strategy will be met with " you'll miss the train" rants throughout the internet as the company always pitches itself as virtual rocket to the moon. It's not even close...they have misrepresented the truth for so long I doubt they would actually know what to do with positive news.
"The only logical conclusion is that they're figuring out what to do next."
That not what Qsep and Kmi contracted for. This was an evaluation field test with options to buy or extend the lease long term. There was no try it first then decide clause. They must fork over 20k a month or Qsep must explain why they haven't.
Yeah how's that 8 month review going? Will Kmi be sending the 20k per month they agreed to pay over 2 years ago? I bet not. It's funny how no one can answer that most basic question...with a straight face that is!
Now at 5k a day the newest ray of hope is a scale model of the full size units which are rusting in some desolate Texas salvage yard. Heck scrap those hunks of metal and make more testing units. Especially for overseas where you can say just about anything!
An NDA is meaningless except for acting as a shield where management can continue its cat and mouse game of hiding from investors. They have become so disconnected from reality it has to be the company's intentional modus operandi.
Now the press release of the start of a 10 day scale model lab test are reported with an 8k but the 2 year old Kmi contract is yet to be resolved or finalized. This after months of stalling and excuses. I'll bet Qsep gets into the "lab field test business" next! That will be the icing for me.
Ahhhhh....that info from the 10q. I didn't make it up. The crack team at Qsep were force to disclose it because that's what these docs are designed to do! They shed light on the real situation and not some pipe dream.
For the record, they have been forced to sell ownership at historic lows without one credit line or a loan from bank! This coming from a guy supposedly started a bank! What idiot banker can arrange debt financing when they are on the cusp of a billion dollar business? As for the rumblings about not running out money well that's patently false....they have done so on every occasion they reported a shortfall. They will again if not already. This latest flurry of 8k reporting is intentional as they are obviously trying to pump this so more notes can be peddled.
NOT TRUE. The funds raised were used to develop the PROVEN AOT. Sales of the PROVEN AOT are FAST APPROACHING. The PROVEN AOT is here to stay. This is about the PRESENT, NOW & the FUTURE, not what happened 15 years ago.
At September 30, 2016, the Company had cash on hand in the amount of $385,360. Management estimates that the current funds on hand will be sufficient to continue operations through January 2017. Management is currently seeking additional funds, primarily through the issuance of debt and equity securities for cash to operate our business, including without limitation the expenses it will incur in connection with the license and research and development agreements with Temple; costs associated with product development and commercialization of the AOT technology; costs to manufacture and ship the products; costs to design and implement an effective system of internal controls and disclosure controls and procedures; costs of maintaining our status as a public company by filing periodic reports with the SEC and costs required to protect our intellectual property. In addition, as discussed below, the Company has substantial contractual commitments, including without limitation, payment of license and other fees to Temple University, salaries to our executive officers pursuant to employment agreements, certain payments to a former officer and consulting fees, during the remainder of 2016 and beyond.
Even if we ignore all of Qsep expenses and debt. Paying just salaries alone this 50K buys them only 2 months. That's if they don't pay rent , utilities , attorneys, accountants, Golden parachutes, Licensing fees, patent fees, securities compliance and host off other additional expenses. This doesn't even consider making actual industrial products and the expense that this entails.
Dude...all you need to do is calculate the contract obligations which have been disclosed and your at -5k a day in a heartbeat. If your contending this point then please show us how Bigger and Blum are getting paid their salaries, health benefits? Then consider the other SG&A expenses and the soon to be a million dollar debt owed to Temple and this company is conservatively destined to loose another 2-3 million for 2017.
"Re: mr_sano Post# 37368
INCORRECT. That's for last year. For 2017, sales of the PROVEN AOT are FAST APPROACHING. "
Management salaries are 1k a day. Corporate Compliance will add another 1-2k a day. Add Temples overdue licensing and bloated Accounts Payables and don't forget all that R and D that went into renewing the magic pipes!
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The 10k is due to be filed by mid March. I expect to see $25,000 - $50,000 as revenue as per the filing below. From the RECENT 8K about the "large" Canadian oil company & the NDA :
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Big whoop buys only 5-10 operating days.
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Well considering the test was on dilbit I highly doubt the diluent crowd is shaking in their boots
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Yeah so the feedstock tested already contained a diluent...lol! What's the point? If the idea is to reduce the reliance on diluents how would they get tar sand oil to flow at all? No explanation or description of its product application beyond web friendly graphics ,cryptic press copy and few barrels of good old fashion wishful thinking. Management must believe its investors cannot understand the most basic principals of science.
That's all just ink on paper. Nothing has been substantiated or proven. Qsep management can't even close a testing deal booked years ago. Honestly I can see how one could cut a new issue some slack, at the onset ,as they try to get the word out but here after 17 years and several management changes, the story is old and dried up! This company has tried to market at least a half dozen products , all based on the same magic. From autos to pipelines, nothing has clicked and now it's somehow touted as the "best" of times. This makes me chuckle on rainy day!
Yeah God forbid the technical or fundamental merits of Qsep should be discussed in an open fashion. I imagine the AGM would be a real barn burner, if current management had to field real questions about its technology or lack of operating funds.
Well since the mini-Aot knocked it out of the park with the Alberta company aka "COC" wink wink. I wonder if a full size rig will soon be on a truck heading north! Hopefully that test will not take as long as the Kmi SCADA integration which is going on 2 years.
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what is it that AOT cannot do ?
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Ans: generate sales
Minilab was likely constructed to debug issues at Kmi. Where is that deal? Seriously no wonder this CEO will not face his shareholders...in a word its pathetic to release his vision of the market and hide behind safe harbor statements yet not mention a single statement about the two biggest issues facing the company today. Namely;
1. Financial plan to capitalize the company for next 12-24 months
2. Status of sales...or lack of it!
That's it. No need for oils of the world part 3 or to blab about viscosity reduction numbers not presented with any real backup data or flow volumes. How about duration
of effect Mr CEO? If this reduction last for only 5 minutes, then it's worthless other than a pump booster. It is still not even clear if the original feed material has a diluent or heat trace to get thicker crude to initially flow. Until company reveals unbiased technical facts....nothing can be relied on.
second! Even when long time investors are critical of the silence they get slammed by the rank and file. We are in truly in Alice's
Upside down world!