11-Jan-2011
Other Events
Item 8.01 Other Events.
Ecosphere Technologies, Inc. (the "Company") and its majority owned subsidiary Ecosphere Energy Services, LLC ("EES") have signed a non-binding term sheet for an exclusive technology licensing agreement with a company that will deploy the Company's patented Ozonix technology in the U.S. oil and gas exploration and production industries. The term sheet calls for the Company initially to build 16 of its new EF60 mobile high volume water treatment units over the next 24 months for the licensee to deploy exclusively in onshore oil and gas shale plays across the United States. EES will receive approximately $2,750,000 for each EF60 unit that the Company manufactures as well as ongoing licensing and royalty payments. EES will pay the Company its costs and a manufacturing fee; in addition, the Company will receive profit distributions from EES which will be derived from the licensing and royalty payments. The term sheet calls for two EF60's to be delivered by Ecosphere to the licensee each quarter for the next eight quarters starting May 15, 2011. The term sheet is subject to execution of a definitive agreement that the parties are currently moving forward to complete.
