Under the terms of the License, Great Wall Alternative Power Systems (GWAPS) will develop in China a production prototype of Cyclone’s biomass-to-power generator system—a portable power plant capable of producing 10kW or more of electricity from the combustion of dry vegetative biomass.

Pending completion of production prototyping for Cyclone’s Mark V engine in the United States, as well as successful implementation of the intellectual property protection systems in China designed by both GWAPS and Cyclone, GWAPS will also develop the larger 95 hp Mark V engine for electric power production by late 2010.

GWAPS has agreed to pay Cyclone $125,000 in development fees, an additional $400,000 in licensing fees, and then on-going royalties from the sale of Cyclone engines for use in electric power production in China. Engine systems other than biomass-to-power and the Mark V for non-motive power applications would require added development and license fees.

Additionally, GWAPS will invest capital to provide for legal and financial structuring, government outreach, and intellectual property protection, including retaining professional organizations to monitor and, if necessary, prosecute patent infringement cases in China. Cyclone has also retained legal counsel in China to audit the IP protocols that GWAPS establishes.

GWAPS was formed by a group of veteran China operators and investors for the purpose of developing Cyclone technologies for the China market.