The License Agreement provided for a third potential payment to Leonardo, which is the
subject of this litigation: An $89 million payment “contingent upon the Plant operating at the
same level (or better) at which Validation was achieved for a period of 350 days (even if not
consecutive) within a 400 day period commencing on the date immediately following delivery of
the Plant to the Company,” which the License Agreement described as “Guaranteed
Performance.” License Agreement §§ 3.2(c), 5; Compl. ¶ 46. That delivery, Plaintiffs allege,
occurred in August 2013: “In or around August 2013, the E-Cat Unit was delivered from
Ferrara, Italy to IH at its facility in Raleigh, North Carolina, where preparations began for the
final Guaranteed Performance Test.” Compl. ¶ 59. Plaintiffs’ purported “Guaranteed
Performance Test,” however, was not commenced until “on or about February 19, 2015” and not
“concluded” until “February 15, 2016.” Id. ¶¶ 66, 71.
The Complaint alleges that the Second Amendment to the License Agreement (“Proposed
Second Amendment”), which is attached as Exhibit D to the Complaint, “formally eliminated the
requirement that the Guaranteed Performance test period be commenced immediately upon
delivery of the plant and instead requiring [sic.] that the Guaranteed Performance Test period
would commence on a date agreed to in writing by the parties.” Compl. ¶ 62. The Proposed
Second Amendment, however, clearly states that “[t]his Amendment may be executed in
counterparts, none of which need contain the original signatures of all Parties, provided that one
or more counterparts collectively shall contain the signatures of all Parties to this
Amendment.” Proposed Second Amendment § 3 (emphasis added). AmpEnergo, Inc. (“AEG”),
a party to the License Agreement and the Proposed Second Amendment, never signed the
Proposed Second Amendment. Id. at 3. The Proposed Second Amendment also addressed the
testing of a “Six Cylinder Unit,” not the E-Cat unit alleged in the Complaint to have been tested.
Id. § 1