The agreement, and its related Manufacturing Agreement, were signed following several meetings between W2e and SHBV and government authorities in both Shanghai and Yancheng last week.
Under the 10 year agreement, W2e will, with the exception of some geographic regions, exclusively procure W2e’s proprietary cBOS and sBOS products from SHBV.
In return for W2e placing orders for proprietary products and waste heat boiler systems of at least $60m per year, SHBV will initially pay W2e $5m in three tranches payable within 30, 60 and 120 days of the execution of the agreement respectively.
A further $5m will be paid to W2e over the life of the agreement in equal installments on subsequent anniversaries of the agreement. In the event that W2e fails to meet the minimum order values, the agreement provides for a prorated adjustment of the annual payments from SHBV.
