To: Michael Bidder who wrote (1695 ) 8/11/1998 8:22:00 AM From: Q. Read Replies (3) | Respond to
Some highly-touted TRBD marketing deals that resulted in extremely disappointing salessedar.com )a minimum of 15,000 units in 1996 at an aggregate cost of $9,375,000 US and 50,000 units at an aggregate cost of $31,250,000 US in each subsequent year in order to maintain its distributorship rights. Turbodyne Systems completed the initial delivery of 85 Turbopac products under the Grand Agreement during the week of October 14 - 18, 1996. These units were not recorded as sales as they were delivered for product evaluation purposes. Turbodyne Systems completed a subsequent delivery of 125 Turbopac products during the period ending December 31, 1996, which deliveries also were not recorded as sales. The Turbopac products shipped were produced in limited scale production runs at Turbodyne Systems' Carpenteria facility. While Grand did not meet the minimum purchase requirement of 15,000 units in 1996, Turbodyne Systems elected not to terminate the Grand Agreement for failure to meet the minimum distribution requirement in 1996 as Turbodyne Systems has been satisfied with the marketing efforts of Grand to date and because Turbodyne Systems commenced limited production of the 1500 Turbopac Product in late 1996. Through June 30, 1997, Grand has not made any significant additional purchases from Turbodyne Systems. There is no assurance that Grand will satisfy its purchase obligations for 1997 or in subsequent years or that Turbodyne Systems will realize these revenues. Turbodyne Systems has agreed that it will not terminate the Grand Agreement for failure to meet these minimum orders if Grand has been diligent in promoting sales. 200,000 Turbopac units per year upon completion of successful evaluations by Viessman.to date, the Company has not received any purchase orders from Viessman.
