ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT (a) Coal Sales Agreement. On March 3, 2006, Geotec Thermal Generators, Inc. ("Geotec" or the "Company"), executed a purchase order agreement with Island Sales Limited ("Island Sales") (a copy of which is attached hereto) whereby the Company agreed to sell 500,000 tons of Pennsylvania processed clean coal to Island Sales between April and December, 2006, at the price of $47.10 per ton, subject to processing and delivery specifications. The coal is part of the 20,000,000 tons of Pennsylvania processed clean coal sold to Geotec by Ecotec Coal, LLC, a Florida limited liability company in December, 2005.
(b) Coal Processing Test Results. On January 27, 2006 the Company received coal washing test results from SGS Commercial Testing & Engineering Co. of Denver, Colorado, which provided independent verification and validation that chemical modification of the Pennsylvania coal utilizing the Company's proprietary recombinant protein/enzyme technology increased the commercial value of such coal. The test results from the chemically processed coal demonstrate that the processed coal qualifies as "Refined Coal" as such term is defined in Section 45 of the Internal Revenue Code of 1986, as amended.
(c) Technical Testing Data. The results showed a 15.6 % increase in Btu per lb to 13,209 Btu; a decrease in Ash of 58% to 7.33% and a 20.2% decrease in lb. S02/mm Btu.
-------------------- money for nothing!!
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