Document:

Exhibit 10.9

                                                              Execution Version

           SECOND AMENDMENT TO CREDIT AGREEMENT, WAIVER AND RELEASE OF
                         EUROPEAN INVESTMENT COLLATERAL

     THIS SECOND AMENDMENT TO CREDIT  AGREEMENT,  WAIVER AND RELEASE OF EUROPEAN
INVESTMENT COLLATERAL (this "Amendment") is made and entered into as of this 7th
day  of  January,  2005  by and  among  COMPX  INTERNATIONAL  INC.,  a  Delaware
corporation (the "Borrower"),  the banks and lending  institutions  party to the
Credit Agreement referred to below (the "Lenders"),  and WACHOVIA BANK, NATIONAL
ASSOCIATION,  a national banking association,  in its capacity as administrative
agent for the Lenders (the "Administrative Agent").

     The  Lenders  have  extended  certain  credit  facilities  to the  Borrower
pursuant to the Credit  Agreement dated as of January 22, 2003, by and among the
Borrower,  the  Lenders  and the  Administrative  Agent (as amended by the First
Amendment to Credit  Agreement  dated as of October 20,  2003,  and as otherwise
amended,  restated,  supplemented  or  modified  from time to time,  the "Credit
Agreement").

     The Borrower desires to dispose of its European subsidiaries (the "European
Subsidiary  Sale")  through a sale of all of the capital  stock of CompX  Europe
B.V., a Netherlands corporation ("CompX Europe").

     The Borrower has requested that the  Administrative  Agent and the Lenders:
(i) waive the asset  sale  prohibition  in the  Credit  Agreement  to the extent
necessary  to permit the  European  Subsidiary  Sale,  (ii) waive the  mandatory
commitment reduction  requirements in the Credit Agreement as it pertains to the
European Subsidiary Sale, (iii) waive the investment restriction covenant in the
Credit  Agreement  to the extent  necessary  to permit the  Borrower  to receive
partial  payment for the European  Subsidiary Sale in the form of a subordinated
note from the purchaser  thereof (the  "Subordinated  Note");  (iv) delete CompX
Europe and each of its  direct and  indirect  subsidiaries  from the  subsidiary
schedule to the Credit  Agreement,  and (v) release  that portion of the capital
stock of CompX  Europe  which is  pledged  to the  Administrative  Agent for the
benefit of the Lenders  pursuant to the Collateral  Agreement (as defined in the
Credit Agreement).

     NOW  THEREFORE,  for good  and  valuable  consideration,  the  receipt  and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:

     1.  Capitalized  Terms.  All  capitalized  undefined  terms  used  in  this
Amendment shall have the meanings assigned thereto in the Credit Agreement.

     2. Waivers under Credit  Agreement.  So long as (a) immediately  before and
after  giving  effect  hereto  there  shall exist no Default or Event of Default
under the Credit Agreement, (b) the proceeds to Borrower represented by cash and
the  principal  amount  of any note  issued  by the  purchaser  of CompX  Europe
(including  but  not  limited  to  the  Subordinated  Note)  from  the  European

<PAGE>
Subsidiary Sale shall be at least US$20,000,000, and (c) the European Subsidiary
Sale shall be consummated pursuant to a sale agreement in substantially the form
and on  substantially  the  terms  furnished  to the  Administrative  Agent  and
approved by it in its reasonable  discretion,  the Lenders hereby waive: (i) the
provisions  of Section  10.5 of the  Credit  Agreement  (Limitations  on Sale of
Assets) to the extent necessary to permit the European Subsidiary Sale; (ii) the
provisions of Section 2.7 of the Credit  Agreement  (Permanent  Reduction of the
Aggregate  Commitment and the Alternative  Currency Commitment) to eliminate the
requirement  that the  Aggregate  Commitment  be reduced by the  proceeds of the
European Subsidiary Sale, it being agreed that the Aggregate  Commitment will be
unchanged  thereby;  and (iii) the  provisions  of  Section  10.3 of the  Credit
Agreement (Limitation on Loans,  Advances,  Investments and Acquisitions) to the
extent necessary to permit the Borrower to accept non-cash consideration for the
European  Subsidiary Sale in the form of a subordinated  note from the purchaser
of CompX Europe in an aggregate principal amount not to exceed  (euro)4,000,000;
each of such  foregoing  waivers  to take  effect as of the  Effective  Time (as
defined below).

     3. Amendment to Schedule  6.1(b) to Credit  Agreement.  Effective as of the
Effective  Time (as  defined  below),  Schedule  6.1(b) to the Credit  Agreement
(Subsidiaries)  is hereby amended to delete the references to CompX Europe B.V.,
Thomas Regout Holding B.V., Thomas Regout Nederland B.V., Thomas Regout B.V. and
Thomas Regout International B.V.

     4. Release of Pledged Stock. Effective as of the Effective Time (as defined
below), the  Administrative  Agent and the Lenders hereby release their lien and
security  interest in the capital stock of CompX Europe pledged  pursuant to the
Collateral Agreement.

     5. Effective Time of this Amendment;  Deadline for European Subsidiary Sale
Permissions.  This  Amendment  shall become  effective  (the  "Effective  Time")
simultaneously  with the closing of the  European  Subsidiary  Sale,  subject to
fulfillment of the following conditions:

          (a) Amendment Documents.  The Administrative Agent shall have received
     this Amendment executed by the Borrower,  each of the Subsidiary Guarantors
     and each of the Lenders.

          (b) Amendment Fee. The Administrative  Agent shall have received,  for
     the account of each Lender on or prior to the date of execution  hereof, an
     amendment fee in an amount equal to 0.05% of the  aggregate  amount of each
     Lender's Commitment,  which amendment fee shall be nonrefundable whether or
     not the European  Subsidiary  Sale is  consummated  and whether or not this
     Amendment ever becomes effective.

          (c)  European  Subsidiary  Sale  Conditions;   Deadline  for  European
     Subsidiary  Sale.  Each of the conditions set forth in clauses (a), (b) and
     (c) of  Section  2  hereof  shall  have  been  satisfied  and the  European
     Subsidiary  Sale shall have closed no later than the first  anniversary  of
     the date hereof (as set forth in the preamble hereto).

          (d) Sale Agreement;  Other Documents.  The Administrative  Agent shall
     have  received a true and correct copy of the sale  agreement and any other
     relevant  associated  agreements  effecting the European Subsidiary Sale in
     substantially  the final form  thereof  and shall have  received  any other
     documents, certificates or instruments reasonably requested thereby.
<PAGE>

If any of the foregoing  conditions to the effectiveness of this Amendment shall
remain  unsatisfied  at  the  closing  of the  European  Subsidiary  Sale,  then
notwithstanding the prior execution hereof by the parties hereto, this Amendment
and the waivers,  amendment and release  otherwise  effected hereby shall become
null and void and of no further force and effect,  without any further action on
the part of any party  hereto,  and the Credit  Agreement,  Loan  Documents  and
Collateral  shall  continue  as in effect  without  giving  effect to any of the
waiver,  amendment  or release  provisions  hereof;  provided,  however,  that ,
notwithstanding the foregoing, Borrower shall remain obligated for the amendment
fee and all costs and expense reimbursements provided for herein.

     6. Effect of the Amendment. Except as expressly modified hereby, the Credit
Agreement  and the other  Loan  Documents  shall be and remain in full force and
effect. This Amendment shall not be deemed (a) to be a waiver of, or consent to,
a  modification  or  amendment  of,  any other term or  condition  of the Credit
Agreement  or any other Loan  Document  or (b) to  prejudice  any other right or
rights which the Administrative Agent or the Lenders may now have or may have in
the future under or in  connection  with the Credit  Agreement or the other Loan
Documents or any of the  instruments or agreements  referred to therein,  as the
same may be amended or modified from time to time.

     7. Representations and Warranties/No Default.

          (a) By its execution  hereof,  the Borrower hereby  certifies that (i)
     each  of the  representations  and  warranties  set  forth  in  the  Credit
     Agreement  and the other Loan  Documents is true and correct as of the date
     hereof (before and after giving effect to the European  Subsidiary Sale and
     the  waivers   hereunder)   as  if  fully  set  forth  herein  unless  such
     representations  and  warranties  relate to a specific  date, in which case
     such  representations  and warranties  shall be true and correct as of such
     specific  date and (ii) no Default or Event of Default has  occurred and is
     continuing  as of the date hereof nor will such Default or Event of Default
     exist under the Credit Agreement (including without limitation,  Article IX
     (Financial Covenants) thereof) after giving effect to this Amendment and to
     the European Subsidiary Sale.

          (b) By its execution hereof, the Borrower represents and warrants that
     as of the date hereof there are no claims or offsets against or defenses or
     counterclaims  to any of the  obligations of the Borrower or any Subsidiary
     Guarantor under the Credit Agreement or any other Loan Document.

          (c) By its  execution  hereof,  the  Borrower  hereby  represents  and
     warrants  that the Borrower and each  Subsidiary  Guarantor  has the right,
     power and authority and has taken all necessary  corporate and other action
     to authorize the execution,  delivery and performance of this Amendment and
     each other document executed in connection  herewith to which it is a party
     in accordance with their  respective  terms.  This Amendment and each other
     document  executed  in  connection  herewith  has been  duly  executed  and
     delivered  by the  duly  authorized  officers  of  the  Borrower  and  each
     Subsidiary  Guarantor,  and each such document constitutes the legal, valid
     and binding  obligation  of the  Borrower  and each  Subsidiary  Guarantor,
     enforceable in accordance with its terms.

<PAGE>

     8.  Acknowledgement  by Subsidiary  Guarantors.  By their execution hereof,
each of the Subsidiary  Guarantors hereby expressly (a) consents to the waivers,
release, modifications and amendments set forth in this Amendment, (b) reaffirms
all  of  its  respective  covenants,   representations,   warranties  and  other
obligations  set forth in the Subsidiary  Guaranty  Agreement and the other Loan
Documents  to which it is a party and (c)  acknowledges,  represents  and agrees
that its respective covenants, representations, warranties and other obligations
set forth in the Subsidiary  Guaranty  Agreement and the other Loan Documents to
which it is a party remain in full force and effect.

     9. Costs and Expenses. The Borrower shall pay all reasonable  out-of-pocket
costs and  expenses of the  Administrative  Agent  invoiced  to the  Borrower in
connection  with the  preparation,  execution  and  delivery of this  Amendment,
including,  without limitation, the reasonable fees and disbursements of counsel
for the Administrative Agent.

     10.  Governing  Law. THIS  AMENDMENT AND THE RIGHTS AND  OBLIGATIONS OF THE
PARTIES  HEREUNDER  SHALL BE GOVERNED BY,  CONSTRUED  AND ENFORCED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT REFERENCE TO THE CONFLICTS
OR CHOICE OF LAW PRINCIPLES THEREOF.

     11. Counterparts.  This Amendment may be executed in separate counterparts,
each of which when  executed and delivered is an original but all of which taken
together constitute one and the same instrument.

     12. Fax Transmission.  A facsimile,  telecopy or other reproduction of this
Amendment may be executed by one or more parties hereto, and an executed copy of
this  Amendment  may be delivered by one or more parties  hereto by facsimile or
similar  instantaneous  electronic  transmission  device  pursuant  to which the
signature  of or on behalf of such  party can be seen,  and such  execution  and
delivery shall be considered valid,  binding and effective for all purposes.  At
the request of any party hereto, all parties hereto agree to execute an original
of this  Amendment  as well as any  facsimile,  telecopy  or other  reproduction
hereof.

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Amendment to be
duly executed as of the date and year first above written.

                            BORROWER:

                            COMPX INTERNATIONAL INC., as Borrower

                            By:
                                  --------------------------------------
                            Name:
                                  --------------------------------------
                            Title:
                                  --------------------------------------

<PAGE>

                            SUBSIDIARY GUARANTORS:

                            COMPX SECURITY PRODUCTS, INC.

                            By:
                                  -------------------------------------
                            Name:
                                  -------------------------------------
                            Title:
                                  -------------------------------------

                             THOMAS REGOUT USA, INC.

                             By:
                                    ------------------------------------
                             Name:
                                    ------------------------------------
                             Title:
                                    ------------------------------------

                             AGENT AND LENDERS:

                             WACHOVIA BANK, NATIONAL ASSOCIATION,
                             as Administrative Agent and Lender

                             By:
                                    -----------------------------------
                             Name:
                                    -----------------------------------
                             Title:
                                    -----------------------------------

                             COMPASS BANK, as Lender

                             By:
                                   ------------------------------------
                             Name:
                                   ------------------------------------
                             Title:
                                   ------------------------------------

                             COMERICA BANK, as Lender

                             By:
                                    ----------------------------------
                             Name:
                                    ----------------------------------
                             Title:
                                    ----------------------------------Exhibit 10.22

<TABLE>
<CAPTION>

U.S. DOE Cooperative Agreement No. DE-FC26-05NT42307

DOE F 4600.1#                                            U.S. DEPARTMENT OF ENERGY
(10/04)                                            NOTICE OF FINANCIAL ASSISTANCE AWARD

Under the authority of Public Law    95-91 DOE Organization Act
                                 ---------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>
  1. PROJECT TITLE "Low-Cost Options for Moderate Levels of Mercury      2. INSTRUMENT TYPE
     Control"
                                                                            | | GRANT               |X| COOPERATIVE AGREEMENT
------------------------------------------------------------------------------------------------------------------------------------
  3. RECIPIENT (Name, address, zip code, area code and telephone no.)    4. INSTRUMENT NO.              5. AMENDMENT NO.
       ADA-ES, Inc.                                                         DE-FC26-05NT42307              A000
       8100 SouthPark Way, Unit B
       Littleton, CO  80120

------------------------------------------------------------------------------------------------------------------------------------
                                                                        6.  BUDGET PERIOD               7. PROJECT PERIOD

                                                                     FROM: 02/10/05  THRU: 02/09/08   FROM: 02/10/05  THRU: 02/09/08
------------------------------------------------------------------------------------------------------------------------------------
  8. RECIPIENT PROJECT DIRECTOR (Name and telephone no.)               10. TYPE OF AWARD
       David Muggli (303) 734-1727 Ext. 129 davidm@adaes.com
                                                                            |X|  NEW             | |  CONTINUATION     | | RENEWAL

                                                                            | |  REVISION        | |  SUPPLEMENT
------------------------------------------------------------------------------------------------------------------------------------
  9. RECIPIENT BUSINESS OFFICER (Name and telephone no.)
      Richard Schlager (303) 734-1727 Ext. 101 richards@adaes.com
------------------------------------------------------------------------------------------------------------------------------------
11. DOE PROJECT OFFICER (Name, address, zip code, telephone no.)      12. ADMINISTERED FOR DOE BY (Name, address, zip code,
    Andrew O'Palko 304-285-4715 E-mail: Andrew.OPalko@netl.doe.gov        telephone no. Keith R. Miles  412-386-5984
    U.S. Department of Energy, National Energy Technology Laboratory      E-mail: miles@netl.doe.gov
    3610 Collins Ferry Road,                                              U. S. Department of Energy, National Energy Technology
    P. O. Box 880, MS C04                                                 Laboratory
    Morgantown, WV 26507-0880                                             P. O. Box 10940,  MS 921-143
                                                                          626 Cochrans Mill Road
                                                                          Pittsburgh, PA 15236-0940
------------------------------------------------------------------------------------------------------------------------------------
13. RECIPIENT TYPE

     | |  STATE GOV'T        | |   INDIAN TRIBAL GOV'T        | |   HOSPITAL          |X|  FOR PROFIT           | |  INDIVIDUAL
                                                                                           ORGANIZATION
     | |  LOCAL GOV'T        | |   INSTITUTION OF             | |   OTHER NONPROFIT   |X|  C  | |  P   | |  SP  | |  OTHER (Specify)
                                   HIGHER EDUCATION                 ORGANIZATION
------------------------------------------------------------------------------------------------------------------------------------

14. ACCOUNTING AND APPROPRIATIONS DATA: 26-05NT42307.000              15. EMPLOYER I.D. NUMBER

                                                                          a. TIN: 84-1341182
                                                                          b. DUNS: 13-331-4067
------------------------------------------------------------------------------------------------------------------------------------
a. Appropriation Symbol    b. B&R Number    c. FT/AFP/OC    d. CFA Number

------------------------------------------------------------------------------------------------------------------------------------
16. BUDGET AND FUNDING INFORMATION
------------------------------------------------------------------------------------------------------------------------------------
a. CURRENT BUDGET PERIOD INFORMATION                                            b. CUMULATIVE DOE OBLIGATIONS
------------------------------------------------------------------------------------------------------------------------------------
(1)  DOE Funds Obligated This Action                $   600,000.00         (1) This Budget Period                 $600,000.00
(2)  DOE Funds Authorized for Carry Over            $         0.00             [Total of lines a.(1) and a.(3)]
(3)  DOE Funds Previously Obligated in this Budget Period$    0.00
(4)  DOE Share of Total Approved Budget             $ 3,946,323.00         (2) Prior Budget Periods               $      0.00
(5)  Recipient Share of Total Approved Budget       $ 1,501,588.00
(6)  Total Approved Budget                          $ 5,447,910.00         (3) Project Period to Date             $600,000.00
                                                                               [Total of lines b.(1) and b.(2)]
------------------------------------------------------------------------------------------------------------------------------------
17. TOTAL ESTIMATED COST OF PROJECT, INCLUDING DOE FUNDS TO FFRDC: $5,447,910.00
    (This is the current estimated cost of the project. It is not a promise to award nor an authorization to expend funds in this
    amount.)
------------------------------------------------------------------------------------------------------------------------------------
18. AWARD AGREEMENT TERMS AND CONDITIONS
    This award/agreement consists of this form plus the following:
    a. Special terms and conditions.
    b. Applicable program regulations (specify)
    (Date)                            .
           ---------------------------
    c. DOE Assistance Regulations, 10 CFR Part 600at http://ecfr.gpoaccess.gov or, if the award is a grant to a Federal
    Demonstration Partnership (FDP) institution, the FDP Terms & Conditions and the DOE FDP Agency Specific Requirements at
    http://www.nsf.gov.
    d. Application/proposal as approved by DOE.
    e. National Policy Assurances to Be Incorporated as Award Terms at http://grants.pr.doe.gov.
------------------------------------------------------------------------------------------------------------------------------------
19. REMARKS

------------------------------------------------------------------------------------------------------------------------------------
20. EVIDENCE OF RECIPIENT ACCEPTANCE                                  21. AWARDED BY

    /s/ Richard J Schlager                           2/17/05              /s/ Richard D Rogus                               2/10/05
    --------------------------------------------------------              ----------------------------------------------------------
    (Signature of Authorized Recipient Official)      (Date)              (Signature)                                       (Date)

    Richard Schlager                                                      Richard D. Rogus
    --------------------------------------------------------              ----------------------------------------------------------
                              (Name)                                                                 (Name)

    Vice President                                                        Contracting Officer
    --------------------------------------------------------              ----------------------------------------------------------
                              (Title)
                                                                                                     (Title)
------------------------------------------------------------------------------------------------------------------------------------
<PAGE>

                                               TABLE OF CONTENTS

SECTION I - SPECIAL TERMS AND CONDITIONS..........................................................................4
-------------------------------------------------------------------------------------------------------------------

   RESOLUTION OF CONFLICTING CONDITIONS (OCT 2004)................................................................4
   -----------------------------------------------
   LIMITATION OF GOVERNMENT LIABILITY.............................................................................4
   PAYMENT PROCEDURES - REIMBURSEMENT THROUGH THE AUTOMATED STANDARD
   -----------------------------------------------------------------
   APPLICATION FOR PAYMENTS (ASAP) SYSTEM (OCT 2004)..............................................................4
   -------------------------------------------------
   COST SHARING (OCT 2004)........................................................................................5
   -----------------------
   INCREMENTAL FUNDING (OCT 2004).................................................................................5
   ------------------------------
   STATEMENT OF FEDERAL STEWARDSHIP (OCT 2004)....................................................................6
   -------------------------------------------
   STATEMENT OF SUBSTANTIAL INVOLVEMENT (OCT 2004)................................................................6
   -----------------------------------------------
   SITE VISITS (OCT 2004).........................................................................................6
   ----------------------
   REPORTING REQUIREMENTS (OCT 2004)..............................................................................7
   ---------------------------------
   PUBLICATIONS (OCT 2004)........................................................................................7
   -----------------------
   FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS OCT 2004)...........................................................8
   ----------------------------------------------------
   INTELLECTUAL PROPERTY PROVISIONS (OCT 2004)....................................................................8
   -------------------------------------------
   NATIONAL SECURITY: CLASSIFIABLE RESULTS ORIGINATING UNDER AN AWARD (OCT 2004)..................................8
   -----------------------------------------------------------------------------
   LOBBYING RESTRICTIONS (OCT 2004)...............................................................................9
   --------------------------------
   NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS -- SENSE OF CONGRESS (OCT 2004)..........9
   -----------------------------------------------------------------------------------------------------
   COMPLIANCE WITH BUY AMERICAN ACT (OCT 2004)....................................................................9
   -------------------------------------------
   ANNUAL INDIRECT COST PROPOSAL AND RECONCILIATION (OCT 2004)....................................................9
   -----------------------------------------------------------
   REAL PROPERTY - NONE (JAN 1999)................................................................................9
   -------------------------------
   RECIPIENT ACQUIRED PROPERTY - FOR-PROFIT ORGANIZATIONS (JAN 2004).............................................10
   -----------------------------------------------------------------
   FEDERALLY OWNED PROPERTY (GOVERNMENT-FURNISHED) - NONE (JAN 1999).............................................10
   -----------------------------------------------------------------
   ACKNOWLEDGMENT OF FEDERAL FUNDING (NOV 1998)..................................................................10
   --------------------------------------------
   PUBLIC ACCESS TO INFORMATION (APR 2000).......................................................................10
   ---------------------------------------
   NOTICE REGARDING UNALLOWABLE COSTS AND LOBBYING ACTIVITIES (NOV 1998).........................................10
   ---------------------------------------------------------------------
   RECIPIENT PRESS RELEASES (APR 1998)...........................................................................10
   -----------------------------------
   HAZARDOUS WASTES MANIFESTS AND LABELS (MAR 2003)..............................................................11

SECTION II - INTELLECTUAL PROPERTY PROVISIONS....................................................................12
-------------------------------------------------------------------------------------------------------------------

   INTELLECTUAL PROPERTY PROVISIONS (FOR-PROFIT R&D) (JAN 2004)..................................................12
   ------------------------------------------------------------
   CONFIDENTIAL BUSINESS INFORMATION (JAN 2004)..................................................................12
   --------------------------------------------
   52.227-1 AUTHORIZATION AND CONSENT (JUL 1995) - ALTERNATE I (APR 1984)........................................12
   ----------------------------------------------------------------------
   52.227-2 NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG 1996).........................12
   -------------------------------------------------------------------------------------
   PATENT RIGHTS (SMALL BUSINESS FIRMS AND NONPROFIT ORGANIZATIONS) (OCT 2003)...................................13
   ---------------------------------------------------------------------------
   RIGHTS IN DATA - GENERAL (OCT 2003)...........................................................................19
   -----------------------------------
   LIMITED RIGHTS DATA (JAN 2004)................................................................................24
   ------------------------------
   52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL). (JUN 1987).....................................................25
   ---------------------------------------------------------

SECTION III -  LIST OF ATTACHMENTS...............................................................................26
-------------------------------------------------------------------------------------------------------------------

   ATTACHMENT A -- STATEMENT OF PROJECT OBJECTIVES...............................................................27
   -----------------------------------------------
   ATTACHMENT B - FEDERAL ASSISTANCE REPORTING CHECKLIST.........................................................42
   -----------------------------------------------------
   ATTACHMENT C - BUDGET PAGE(S).................................................................................50
   --------------------------
   ATTACHMENT D -- RECIPIENT ACQUIRED PROPERTY...................................................................51
   -------------------------------------------

                                                                3
</TABLE>
<PAGE>

                    SECTION I - SPECIAL TERMS AND CONDITIONS

RESOLUTION OF CONFLICTING CONDITIONS (OCT 2004) )
-------------------------------------------------

Any apparent inconsistency between Federal statutes and regulations and the
terms and conditions contained in this award must be referred to the DOE Award
Administrator identified in Block 12 of the Notice of Financial Assistance Award
for guidance.

LIMITATION ON PERFORMANCE AND MAXIMUM GOVERNMENT LIABILITY
----------------------------------------------------------

In performing the Statement of Project Objectives (Attachment A) under this
Cooperative Agreement, the Recipient intends to evaluate two technologies
(TOXECON IITM and high-temperature sorbents) at four (4) different sites. The
Recipient plans on testing TOXECON IITM at AEP Gavin (high S bituminous), and
Entergy Independence (PRB), and will test high-temperature sorbents at
MidAmerican's Council Bluffs and Louisa (PRB) sites. It is recognized that the
sequence of field testing may change; however, regardless of the order in which
the field testing is conducted host site agreements will be executed and
furnished to DOE for each site PRIOR to the conduct of specific testing.

(a) The Recipient must provide to DOE a fully executed host site for each of the
proposed field testing locations prior to the conduct of any field testing.

(b) For the selected sequence of field testing, the Recipient is authorized to
perform associated (site specific) activities including: Task 1 for each site
entitled "Site Coordination, Kickoff Meeting, Test Plan, and QA/QC Plan," the
portion (i.e., limited to pre-site testing) of Task 2 for each site entitled
"Design and Install Site Specific Equipment," and associated Task 11 "Management
and Reporting," but not authorized to incur project expenditures exceeding the
DOE share shown below:

     o    Louisa - $50,000
     o    Council Bluffs - $404,000
     o    Gavin - $370,000
     o    Independence - $345,000

until such time as an executed host site agreement is furnished to the DOE
which:

          (1)  provides for the use of the selected (AEP Gavin; Entergy
               Independence (PRB); MidAmerican Council Bluffs; or Louisa)
               facility for the project, or
          (2)  provides the use of an alternate host site that is acceptable to
               DOE.

(c) In the event the Recipient has not satisfied the conditions set forth above,
DOE shall have the right to declare the cooperative agreement concluded. In such
event, DOE shall not be liable for any costs in excess of the amounts shown
above.

PAYMENT PROCEDURES - REIMBURSEMENT THROUGH THE AUTOMATED STANDARD APPLICATION
FOR PAYMENTS (ASAP) SYSTEM (OCT 2004)
-----------------------------------------------------------------------------

a.   Method of Payment. Payment will be made by reimbursement through the
     Department of Treasury's ASAP system.

                                       4
<PAGE>

b.   Requesting Reimbursement. Requests for reimbursements must be made through
     the ASAP system. Your requests for reimbursement should coincide with your
     normal billing pattern, but not more frequently than every two weeks. Each
     request must be limited to the amount of disbursements made for the federal
     share of direct project costs and the proportionate share of allowable
     indirect costs incurred during that billing period.

c.   Adjusting payment requests for available cash. You must disburse any funds
     that are available from repayments to and interest earned on a revolving
     fund, program income, rebates, refunds, contract settlements, audit
     recoveries, credits, discounts, and interest earned on any of those funds
     before requesting additional cash payments from DOE.

d.   Payments. All payments are made by electronic funds transfer to the bank
     account identified on the ASAP Bank Information Form that you filed with
     the U.S. Department of Treasury.

COST SHARING (OCT 2004)
-----------------------

a.   Notwithstanding the recipient's cost share described below in paragraph b,
     you must cost share a minimum of 27.6 percent of the total allowable
     Project Costs (Total allowable Project Costs are the sum of the Government
     share and the Recipient share of allowable project costs). Your cost share
     must come from non-Federal sources. By accepting federal funds under this
     award, you agree that you are liable for your percentage share of the total
     allowable Project Costs incurred even if the project is terminated early or
     is not funded to its completion.

b.   Total Estimated Project Cost is the sum of the Government share and
     Recipient share of the estimated project costs. This cost is shared as
     follows:

           Total Estimated Cost of Project:          $5,447,910
                                    DOE:             $3,946,323        72.4%
                                    Participant:      1,501,588        27.6%

c.   If you discover that you may be unable to provide cost sharing of at least
     the amount identified in paragraph b of this article, you should
     immediately provide written notification to the DOE Award Administrator
     identified in Block 12 of the Notice of Financial Assistance Award
     indicating whether you will continue or phase out the project. If you plan
     to continue the project, the notification must describe how replacement
     cost sharing will be secured.

d.   You must maintain records of all project costs that you claim as cost
     sharing, including in-kind costs, as well as records of costs to be paid by
     DOE. Such records are subject to audit.

e.   Failure to provide the cost sharing required in paragraphs a and b may
     result in the subsequent recovery by DOE of some or all the funds provided
     under the award.

INCREMENTAL FUNDING (OCT 2004)
------------------------------

This budget period is funded on an incremental basis. The maximum obligation of
the DOE is limited to $600,000.00 (the amount shown in Block 16.b. (3)
"CUMULATIVE DOE OBLIGATIONS Project Period to Date" on the Notice of Financial
Assistance Award). You are not obligated to continue performance of the project

                                       5
<PAGE>

beyond the total amount shown in Block 16.b. (3) and your pro rata share of the
project costs, if cost sharing is required. Subject to the availability of
additional funds, DOE anticipates obligating the total amount shown in Block
16.a. (4) for the current budget period.

STATEMENT OF FEDERAL STEWARDSHIP (OCT 2004)
-------------------------------------------

DOE will exercise normal Federal stewardship in overseeing the project
activities performed under this award. Stewardship activities include, but are
not limited to, conducting site visits; reviewing performance and financial
reports; providing technical assistance and/or temporary intervention in unusual
circumstances to correct deficiencies which develop during the project; assuring
compliance with terms and conditions; and reviewing technical performance after
project completion to insure that the award objectives have been accomplished.

STATEMENT OF SUBSTANTIAL INVOLVEMENT (OCT 2004)
-----------------------------------------------

RECIPIENT'S RESPONSIBILITIES.  The Recipient is responsible for:

     Performing the activities supported by this award, including providing the
     required personnel, facilities, equipment, supplies and services;

     Defining approaches and plans, submitting the plans to DOE for review, and
     incorporating DOE comments;

     Managing and conducting the project activities;

     Attending semiannual program review meetings and reporting project status;

     Submitting technical reports and incorporating DOE comments; and;

     Presenting the project results at appropriate technical conferences or
     meetings as directed by the DOE Project Officer.

DOE  RESPONSIBILITIES.  DOE is responsible for:

     Reviewing in a timely manner project plans, including technology transfer
     plans, and redirecting the work effort if the plans do not address critical
     programmatic issues;

     Conducting semiannual program review meetings to ensure adequate progress
     and that the work accomplishes the program and project objectives.
     Redirecting work or shifting work emphasis, if needed;

     Promoting and facilitating technology transfer activities, including
     disseminating program results through presentations and publications; and

     Serving as scientific/technical liaison between awardees and other program
     or industry staff.

SITE VISITS (OCT 2004)
----------------------

                                       6
<PAGE>

DOE's authorized representatives have the right to make site visits at
reasonable times to review project accomplishments and management control
systems and to provide technical assistance, if required. You must provide and
must require your subawardees to provide reasonable facilities and assistance
for the safety and convenience of the government representatives in the
performance of their duties. All site visits and evaluations must be performed
in a manner that does not unduly interfere with or delay the work.

REPORTING REQUIREMENTS (OCT 2004)
---------------------------------

a.   Requirements. The reporting requirements for this award are identified on
     the Federal Assistance Reporting Checklist, DOE F 4600.2, attached to this
     award. Failure to comply with these reporting requirements is considered a
     material noncompliance with the terms of the award. Noncompliance may
     result in withholding of future payments, suspension or termination of the
     current award, and withholding of future awards. A willful failure to
     perform, a history of failure to perform, or unsatisfactory performance of
     this and/or other financial assistance awards, may also result in a
     debarment action to preclude future awards by Federal agencies.

b.   Dissemination of scientific/technical reports. Scientific/technical reports
     submitted under this award will be disseminated on the Internet via the DOE
     Information Bridge (www.osti.gov/bridge), unless the report contains
     patentable material, protected data or SBIR/STTR data. In addition, these
     reports must not contain any limited rights data (proprietary data),
     classified information, information subject to export control
     classification, or other information not subject to release. Citations for
     journal articles produced under the award will appear on the DOE Energy
     Citations Database (www.osti.gov/ecd).

PUBLICATIONS (OCT 2004)
-----------------------

a.   You are encouraged to publish or otherwise make publicly available the
     results of the work conducted under the award.

b.   An acknowledgment of Federal support and a disclaimer must appear in the
     publication of any material, whether copyrighted or not, based on or
     developed under this project, as follows:

     Acknowledgment: "This material is based upon work supported by the
     Department of Energy [National Nuclear Security Administration] [add
     name(s) of other agencies, if applicable] under Award Number(s) [enter the
     award number(s)]."

     Disclaimer: "This report was prepared as an account of work sponsored by an
     agency of the United States Government. Neither the United States
     Government nor any agency thereof, nor any of their employees, makes any
     warranty, express or implied, or assumes any legal liability or
     responsibility for the accuracy, completeness, or usefulness of any
     information, apparatus, product, or process disclosed, or represents that
     its use would not infringe privately owned rights. Reference herein to any
     specific commercial product, process, or service by trade name, trademark,
     manufacturer, or otherwise does not necessarily constitute or imply its
     endorsement, recommendation, or favoring by the United States Government or
     any agency thereof. The views and opinions of authors expressed herein do
     not necessarily state or reflect those of the United States Government or
     any agency thereof."

                                       7
<PAGE>

FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS (OCT 2004)
-----------------------------------------------------

You must obtain any required permits and comply with applicable federal, state,
and municipal laws, codes, and regulations for work performed under this award.

INTELLECTUAL PROPERTY PROVISIONS (DEC 2004)
-------------------------------------------

The intellectual property provisions applicable to this award are provided in
Section II of this award.

NATIONAL SECURITY: CLASSIFIABLE RESULTS ORIGINATING UNDER AN AWARD (OCT 2004)
-----------------------------------------------------------------------------

a.   This award is intended for unclassified, publicly releasable research. You
     will not be granted access to classified information. DOE does not expect
     that the results of the research project will involve classified
     information. Under certain circumstances, however, a classification review
     of information originated under the award may be required. The Department
     may review research work generated under this award at any time to
     determine if it requires classification.

b.   Executive Order 12958 (60 Fed. Reg. 19,825 (1995)) states that basic
     scientific research information not clearly related to the national
     security shall not be classified. Nevertheless, some information concerning
     (among other things) scientific, technological, or economic matters
     relating to national security or cryptology may require classification. If
     you originate information during the course of this award that you believe
     requires classification under this Executive order, you must promptly:

     1.   Notify the DOE Project Officer identified in Block 11 and the DOE
          Award Administrator identified in Block 12 of the Notice of Financial
          Assistance Award;

     2.   Submit the information by registered mail directly to the Director,
          Office of Classification and Information Control, SO-10.2; U.S.
          Department of Energy; P.O. Box A; Germantown, MD 20875-0963, for
          classification review.

     3.   Restrict access to the information to the maximum extent possible
          until you are informed that the information is not classified, but no
          longer than 30 days after receipt by the Director, Office of
          Classification and Information Control.

c.   If you originate information concerning the production or utilization of
     special nuclear material (i.e., plutonium, uranium enriched in the isotope
     233 or 235, and any other material so determined under section 51 of the
     Atomic Energy Act) or nuclear energy, you must:

     1.   Notify the DOE Project Officer identified in Block 11 and the DOE
          Award Administrator identified in Block 12 of the Notice of Financial
          Assistance Award.

     2.   Submit the information by registered mail directly to the Director,
          Office of Classification and Information Control, SO-10.2; U.S.
          Department of Energy; P. O. Box A; Germantown, MD 20875-0963 for
          classification review within 180 days of the date the recipient first
          discovers or first has reason to believe that the information is
          useful in such production or utilization.

                                       8
<PAGE>

     3.   Restrict access to the information to the maximum extent possible
          until you are informed that the information is not classified, but no
          longer than 90 days after receipt by the Director, Office of
          Classification and Information Control.

d.   If DOE determines any of the information requires classification, you agree
     that the Government may terminate the award by mutual agreement in
     accordance with 10 CFR 600.25(d). All material deemed to be classified must
     be forwarded to the DOE, in a manner specified by DOE.

e.   If DOE does not respond within the specified time periods, you are under no
     further obligation to restrict access to the information.

LOBBYING RESTRICTIONS (OCT 2004)
--------------------------------

By accepting funds under this award, you agree that none of the funds obligated
on the award shall be made available for any activity or the publication or
distribution of literature that in any way tends to promote public support or
opposition to any legislative proposal on which Congressional action is not
complete. This restriction is in addition to those prescribed elsewhere in
statute and regulation.

NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS -- SENSE
OF CONGRESS (OCT 2004)
------------------------------------------------------------------------------

It is the sense of the Congress that, to the greatest extent practicable, all
equipment and products purchased with funds made available under this award
should be American-made.

COMPLIANCE WITH BUY AMERICAN ACT (OCT 2004)
-------------------------------------------

By accepting funds under this award, you agree to comply with sections 2 through
4 of the Act of March 3, 1933 (41 U.S.C. 10a - 10c, popularly known as the "Buy
American Act"). You should review the provisions of the Act to ensure that
expenditures made under this award are in accordance with it.

ANNUAL INDIRECT COST PROPOSAL AND RECONCILIATION (OCT 2004)
-----------------------------------------------------------

a.   In accordance with the applicable cost principles, you must submit an
     annual indirect cost proposal, reconciled to your financial statements,
     within six months after the close of each fiscal year, unless you have
     negotiated a predetermined or fixed indirect rate(s), or fixed amount for
     indirect or facilities and administration (F&A) costs.

b.   You should submit your annual indirect cost proposal directly to the
     cognizant agency for negotiating and approving indirect costs. If DOE is
     the cognizant agency, send your proposal to the Cognizant Department of
     Energy Office (CDO). If you do not have a cognizant agency or if you do not
     know your DOE CDO, contact the DOE Award Administrator identified in Block
     12 of the Notice of Financial Assistance Award.

REAL PROPERTY - NONE (JAN 1999)
-------------------------------

                                       9
<PAGE>

No real property may be acquired under this award.

RECIPIENT ACQUIRED PROPERTY - FOR-PROFIT ORGANIZATIONS (JAN 2004)
-----------------------------------------------------------------

Reference Attachment D for a listing of property authorized for acquisition
under this award. Property acquired by the Recipient under this award shall be
managed in accordance with 10 CFR 600.320 to 10 CFR 600.325, and reported as
prescribed in Attachment B, Federal Assistance Reporting Checklist.

FEDERALLY OWNED PROPERTY (GOVERNMENT-FURNISHED) - NONE (JAN 1999)
-----------------------------------------------------------------

No Government-furnished property is provided under this award.

ACKNOWLEDGMENT OF FEDERAL FUNDING (NOV 1998)
--------------------------------------------

When issuing statements, press releases, requests for proposals, bid
solicitations, and other documents describing this project, the Recipient shall
clearly state (1) the percentage of the total cost of the project which will be
financed with Federal money, and (2) the dollar amount of Federal funds for the
project.

PUBLIC ACCESS TO INFORMATION (APR 2000)
---------------------------------------

The Freedom of Information Act, as amended, and the DOE implementing regulations
(10 CFR 1004) require DOE to release certain documents and records regarding
awards to any person who provides a written request. The intended use of the
information will not be a criterion for release.

NOTICE REGARDING UNALLOWABLE COSTS AND LOBBYING ACTIVITIES (NOV 1998)
---------------------------------------------------------------------

Recipients of financial assistance are cautioned to carefully review the
allowable cost and other provisions applicable to expenditures under their
particular award instruments. If financial assistance funds are spent for
purposes or in amounts inconsistent with the allowable cost or any other
provisions governing expenditures in an award instrument, the government may
pursue a number of remedies against the Recipient, including in appropriate
circumstances, recovery of such funds, termination of the award, suspension or
debarment of the Recipient from future awards, and criminal prosecution for
false statements.

Particular care should be taken by the Recipient to comply with the provisions
prohibiting the expenditure of funds for lobbying and related activities.
Financial assistance awards may be used to describe and promote the
understanding of scientific and technical aspects of specific energy
technologies, but not to encourage or support political activities such as the
collection and dissemination of information related to potential, planned or
pending legislation.

RECIPIENT PRESS RELEASES (APR 1998)
-----------------------------------

The DOE policy and procedure on planned press releases requires that all
Recipient press releases be reviewed and approved by DOE prior to issuance.
Therefore, the Recipient shall, at least ten (10) days prior to the planned
issue date, submit a draft copy to the Contracting Officer of any planned press
releases related to work performed under this award. The Contracting Officer
will then obtain necessary reviews and clearances and provide the Recipient with
the results of such reviews prior to the planned issue date.

                                       10
<PAGE>

HAZARDOUS WASTES MANIFESTS AND LABELS (MAR 2003)
------------------------------------------------

The Recipient shall not identify, on wastes manifests or container labels or
otherwise, the DOE or the NETL as the owner or generator of hazardous wastes
without written permission, signed by either the NETL Director or both the NETL
Contracting Officer and the NETL ES&H Division Director, unless expressly and
specifically permitted by the award.

                                       11
<PAGE>

                  SECTION II - INTELLECTUAL PROPERTY PROVISIONS
                  ---------------------------------------------

INTELLECTUAL PROPERTY PROVISIONS  (JAN 2004)
--------------------------------  ----------

The patent and technical data clauses included in this section apply to this
award. As used in these applicable clauses, the term "Patent Counsel" refers to
the following point of contact:

                           Intellectual Property Law Division
                           U.S. Department of Energy
                           Chicago Operations Office
                           9800 South Cass Avenue
                           Argonne, IL 60439

In reading these provisions, any reference to "contractor" shall mean
"recipient", and any reference to "contract" or "subcontract" shall mean "award"
or "subaward".

The Recipient shall include intellectual property clauses in any subaward in
accordance with requirements of the clauses in this section and of 10 CFR Parts
600.136 or 600.325 as appropriate.

CONFIDENTIAL BUSINESS INFORMATION (JAN 2004)
--------------------------------------------

Information represented to the Department as being confidential business
information, and which does not include "Technical Data" as that term is defined
in the "Rights in Data" clause in this agreement, shall be submitted as an
attachment to the required reports and will be withheld from disclosure outside
the U.S. Government to the extent permitted by law. Such attachment and each
page therein shall be stamped with the following legend and no other:

                        CONFIDENTIAL BUSINESS INFORMATION

     The Recipient considers the material furnished herein to contain
     confidential business information which is to be withheld from disclosure
     outside the U.S. Government to the extent permitted by law.

52.227-1 AUTHORIZATION AND CONSENT (JUL 1995) - ALTERNATE I (APR 1984)
----------------------------------------------------------------------

(a)  The Government authorizes and consents to all use and manufacture of any
     invention described in and covered by a United States patent in the
     performance of this contract or any subcontract at any tier.

(b)  The Contractor agrees to include, and require inclusion of, this clause,
     suitably modified to identify the parties, in all subcontracts at any tier
     for supplies or services (including construction, architect-engineer
     services, and materials, supplies, models, samples, and design or testing
     services expected to exceed the simplified acquisition threshold); however,
     omission of this clause from any subcontract, including those at or below
     the simplified acquisition threshold, does not affect this authorization
     and consent.

52.227-2 NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG
1996)
-------------------------------------------------------------------------------

(a)  The Contractor shall report to the Contracting Officer, promptly and in
     reasonable written detail, each notice or claim of patent or copyright
     infringement based on the performance of this contract of which the
     Contractor has knowledge.

                                       12
<PAGE>

(b)  In the event of any claim or suit against the Government on account of any
     alleged patent or copyright infringement arising out of the performance of
     this contract or out of the use of any supplies furnished or work or
     services performed under this contract, the Contractor shall furnish to the
     Government, when requested by the Contracting Officer, all evidence and
     information in possession of the Contractor pertaining to such suit or
     claim. Such evidence and information shall be furnished at the expense of
     the Government except where the Contractor has agreed to indemnify the
     Government.

(c)  The Contractor agrees to include, and require inclusion of, this clause in
     all subcontracts at any tier for supplies or services (including
     construction and architect-engineer subcontracts and those for material,
     supplies, models, samples, or design or testing services) expected to
     exceed the simplified acquisition threshold at FAR 2.101.

PATENT RIGHTS (SMALL BUSINESS FIRMS AND NONPROFIT ORGANIZATIONS) (OCT 2003)
---------------------------------------------------------------------------

(a)  Definitions

     Invention means any invention or discovery which is or may be patentable or
     otherwise protectable under title 35 of the United States Code, or any
     novel variety of plant which is or may be protected under the Plant Variety
     Protection Act (7 U.S.C. 2321 et seq.). Made when used in relation to any
     invention means the conception or first actual reduction to practice of
     such invention.

     Nonprofit organization means a university or other institution of higher
     education or an organization of the type described in section 501(c)(3) of
     the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from
     taxation under section 501(a) of the Internal Revenue Code (26 U.S.C.
     501(a)) or any nonprofit scientific or educational organization qualified
     under a State nonprofit organization statute.

     Practical application means to manufacture in the case of a composition or
     product, to practice in the case of a process or method, or to operate in
     the case of a machine or system; and, in each case, under such conditions
     as to establish that the invention is being utilized and that its benefits
     are to the extent permitted by law or Government regulations available to
     the public on reasonable terms.

     Small business firm means a small business concern as defined at section 2
     of Public Law 85-536 (16 U.S.C. 632) and implementing regulations of the
     Administrator of the Small Business Administration. For the purpose of this
     clause, the size standards for small business concerns involved in
     Government procurement and subcontracting at 13 CFR 121.3 through 121.8 and
     13 CFR 121.3 through 121.12, respectively, will be used.

     Subject invention means any invention of the Recipient conceived or first
     actually reduced to practice in the performance of work under this award,
     provided that in the case of a variety of plant, the date of determination
     (as defined in section 41(d) of the Plant Variety Protection Act, 7 U.S.C.
     2401(d) must also occur during the period of award performance.

                                       13
<PAGE>

(b)  Allocation of Principal Rights

     The Recipient may retain the entire right, title, and interest throughout
     the world to each subject invention subject to the provisions of this
     Patent Rights clause and 35 U.S.C. 203. With respect to any subject
     invention in which the Recipient retains title, the Federal Government
     shall have a non-exclusive, nontransferable, irrevocable, paid-up license
     to practice or have practiced for or on behalf of the U.S. the subject
     invention throughout the world.

(c)  Invention Disclosure, Election of Title and Filing of Patent Applications
     by Recipient

     (1)  The Recipient will disclose each subject invention to DOE within two
          months after the inventor discloses it in writing to Recipient
          personnel responsible for the administration of patent matters. The
          disclosure to DOE shall be in the form of a written report and shall
          identify the award under which the invention was made and the
          inventor(s). It shall be sufficiently complete in technical detail to
          convey a clear understanding to the extent known at the time of
          disclosure, of the nature, purpose, operation, and the physical,
          chemical, biological or electrical characteristics of the invention.
          The disclosure shall also identify any publication, on sale or public
          use of the invention and whether a manuscript describing the invention
          has been submitted for publication and, if so, whether it has been
          accepted for publication at the time of disclosure. In addition, after
          disclosure to DOE, the Recipient will promptly notify DOE of the
          acceptance of any manuscript describing the invention for publication
          or of any on sale or public use planned by the Recipient.

     (2)  The Recipient will elect in writing whether or not to retain title to
          any such invention by notifying DOE within two years of disclosure to
          DOE. However, in any case where publication, on sale, or public use
          has initiated the one-year statutory period wherein valid patent
          protection can still be obtained in the U.S., the period for election
          of title may be shortened by the agency to a date that is no more than
          60 days prior to the end of the statutory period.

     (3)  The Recipient will file its initial patent application on an invention
          to which it elects to retain title within one year after election of
          title or, if earlier, prior to the end of any statutory period wherein
          valid patent protection can be obtained in the U.S. after a
          publication, on sale, or public use. The Recipient will file patent
          applications in additional countries or international patent offices
          within either ten months of the corresponding initial patent
          application, or six months from the date when permission is granted by
          the Commissioner of Patents and Trademarks to file foreign patent
          applications when such filing has been prohibited by a Secrecy Order.

     (4)  Requests for extension of the time for disclosure to DOE, election,
          and filing under subparagraphs (c) (1), (2), and (3) of this clause
          may, at the discretion of DOE, be granted.

(d)  Conditions When the Government May Obtain Title

     The Recipient will convey to DOE, upon written request, title to any
     subject invention:

                                       14
<PAGE>

     (1)  If the Recipient fails to disclose or elect the subject invention
          within the times specified in paragraph (c) of this patent rights
          clause, or elects not to retain title; provided that DOE may only
          request title within 60 days after learning of the failure of the
          Recipient to disclose or elect within the specified times;

     (2)  In those countries in which the Recipient fails to file patent
          applications within the times specified in paragraph (c) of this
          Patent Rights clause; provided, however, that if the Recipient has
          filed a patent application in a country after the times specified in
          paragraph (c) of this Patent Rights clause, but prior to its receipt
          of the written request of DOE, the Recipient shall continue to retain
          title in that country; or

     (3)  In any country in which the Recipient decides not to continue the
          prosecution of any application for, to pay the maintenance fees on, or
          defend in a reexamination or opposition proceeding on, a patent on a
          subject invention.

(e)  Minimum Rights to Recipient and Protection of the Recipient Right To File

     (1)  The Recipient will retain a non-exclusive royalty-free license
          throughout the world in each subject invention to which the Government
          obtains title, except if the Recipient fails to disclose the subject
          invention within the times specified in paragraph (c) of this Patent
          Rights clause. The Recipient's license extends to its domestic
          subsidiaries and affiliates, if any, within the corporate structure of
          which the Recipient is a party and includes the right to grant
          sublicenses of the same scope of the extent the Recipient was legally
          obligated to do so at the time the award was awarded. The license is
          transferable only with the approval of DOE except when transferred to
          the successor of that part of the Recipient's business to which the
          invention pertains.

     (2)  The Recipient's domestic license may be revoked or modified by DOE to
          the extent necessary to achieve expeditious practical application of
          the subject invention pursuant to an application for an exclusive
          license submitted in accordance with applicable provisions at 37 CFR
          part 404 and the agency's licensing regulation, if any. This license
          will not be revoked in that field of use or the geographical areas in
          which the Recipient has achieved practical application and continues
          to make the benefits of the invention reasonably accessible to the
          public. The license in any foreign country may be revoked or modified
          at discretion of the funding Federal agency to the extent the
          Recipient, its licensees, or its domestic subsidiaries or affiliates
          have failed to achieve practical application in that foreign country.

     (3)  Before revocation or modification of the license, the funding Federal
          agency will furnish the Recipient a written notice of its intention to
          revoke or modify the license, and the Recipient will be allowed thirty
          days (or such other time as may be authorized by DOE for good cause
          shown by the Recipient) after the notice to show cause why the license
          should not be revoked or modified. The Recipient has the right to
          appeal, in accordance with applicable regulations in 37 CFR Part 404
          and the agency's licensing regulations, if any, concerning the
          licensing of Government-owned inventions, any decision concerning the
          revocation or modification of its license.

                                       15
<PAGE>

(f)  Recipient Action To Protect Government's Interest

     (1)  The Recipient agrees to execute or to have executed and promptly
          deliver to DOE all instruments necessary to:

          (i)  Establish or confirm the rights the Government has throughout the
               world in those subject inventions for which the Recipient retains
               title; and

          (ii) Convey title to DOE when requested under paragraph (d) of this
               Patent Rights clause, and to enable the government to obtain
               patent protection throughout the world in that subject invention.

     (2)  The Recipient agrees to require, by written agreement, its employees,
          other than clerical and non-technical employees, to disclose promptly
          in writing to personnel identified as responsible for the
          administration of patent matters and in a format suggested by the
          Recipient each subject invention made under this award in order that
          the Recipient can comply with the disclosure provisions of paragraph
          (c) of this Patent Rights clause, and to execute all papers necessary
          to file patent applications on subject inventions and to establish the
          Government's rights in the subject inventions. The disclosure format
          should require, as a minimum, the information requested by paragraph
          (c)(1) of this Patent Rights clause. The Recipient shall instruct such
          employees through the employee agreements or other suitable
          educational programs on the importance of reporting inventions in
          sufficient time to permit the filing of patent applications prior to
          U.S. or foreign statutory bars.

     (3)  The Recipient will notify DOE of any decision not to continue
          prosecution of a patent application, pay maintenance fees, or defend
          in a reexamination or opposition proceeding on a patent, in any
          country, not less than 30 days before the expiration of the response
          period required by the relevant patent office.

     (4)  The Recipient agrees to include, within the specification of any U.S.
          patent application and any patent issuing thereon covering a subject
          invention, the following statement: "This invention was made with
          Government support under (identify the award) awarded by (identify
          DOE). The Government has certain rights in this invention."

(g)  Subaward/Contract

     (1)  The Recipient will include this Patent Rights clause, suitably
          modified to identify the parties, in all subawards/contracts,
          regardless of tier, for experimental, developmental or research work
          to be performed by a small business firm or nonprofit organization.
          The subrecipient/contractor will retain all rights provided for the
          Recipient in this Patent Rights clause, and the Recipient will not, as
          part of the consideration for awarding the subcontract, obtain rights
          in the subcontractors' subject inventions.

     (2)  The Recipient will include in all other subawards/contracts,
          regardless of tier, for experimental, developmental or research work,
          the patent rights clause required by 10 CFR 600.325(c).

                                       16
<PAGE>

     (3)  In the case of subawards/contracts at any tier, DOE, the Recipient,
          and the subrecipient/contractor agree that the mutual obligations of
          the parties created by this clause constitute a contract between the
          subrecipient/contractor and DOE with respect to those matters covered
          by the clause.

(h)  Reporting on Utilization of Subject Inventions

     The Recipient agrees to submit on request periodic reports no more
     frequently than annually on the utilization of a subject invention or on
     efforts at obtaining such utilization that are being made by the Recipient
     or its licensees or assignees. Such reports shall include information
     regarding the status of development, date of first commercial sale or use,
     gross royalties received by the Recipient and such other data and
     information as DOE may reasonably specify. The Recipient also agrees to
     provide additional reports in connection with any march-in proceeding
     undertaken by DOE in accordance with paragraph (j) of this Patent Rights
     clause. As required by 35 U.S.C. 202(c)(5), DOE agrees it will not disclose
     such information to persons outside the Government without the permission
     of the Recipient.

(i)  Preference for United States Industry.

     Notwithstanding any other provision of this Patent Rights clause, the
     Recipient agrees that neither it nor any assignee will grant to any person
     the exclusive right to use or sell any subject invention in the U.S. unless
     such person agrees that any products embodying the subject invention or
     produced through the use of the subject invention will be manufactured
     substantially in the U.S. However, in individual cases, the requirement for
     such an agreement may be waived by DOE upon a showing by the Recipient or
     its assignee that reasonable but unsuccessful efforts have been made to
     grant licenses on similar terms to potential licensees that would be likely
     to manufacture substantially in the U.S. or that under the circumstances
     domestic manufacture is not commercially feasible.

(j)  March-in-Rights

     The Recipient agrees that with respect to any subject invention in which it
     has acquired title, DOE has the right in accordance with procedures at 37
     CFR 401.6 and any supplemental regulations of the Agency to require the
     Recipient, an assignee or exclusive licensee of a subject invention to
     grant a non-exclusive, partially exclusive, or exclusive license in any
     field of use to a responsible applicant or applicants, upon terms that are
     reasonable under the circumstances and if the Recipient, assignee, or
     exclusive licensee refuses such a request, DOE has the right to grant such
     a license itself if DOE determines that:

     (1)  Such action is necessary because the Recipient or assignee has not
          taken or is not expected to take within a reasonable time, effective
          steps to achieve practical application of the subject invention in
          such field of use;

     (2)  Such action is necessary to alleviate health or safety needs which are
          not reasonably satisfied by the Recipient, assignee, or their
          licensees;

     (3)  Such action is necessary to meet requirements for public use specified
          by Federal regulations and such requirements are not reasonably
          satisfied by the Recipient, assignee, or licensee; or

                                       17
<PAGE>

     (4)  Such action is necessary because the agreement required by paragraph
          (i) of this Patent Rights clause has not been obtained or waived or
          because a licensee of the exclusive right to use or sell any subject
          invention in the U.S. is in breach of such agreement.

(k)  Special Provisions for Awards With Nonprofit Organizations

     If the Recipient is a nonprofit organization, it agrees that:

     (1)  Rights to a subject invention in the U.S. may not be assigned without
          the approval of DOE, except where such assignment is made to an
          organization which has as one of its primary functions the management
          of inventions, provided that such assignee will be subject to the same
          provisions as the Recipient;

     (2)  The Recipient will share royalties collected on a subject invention
          with the inventor, including Federal employee co-inventors (when DOE
          deems it appropriate) when the subject invention is assigned in
          accordance with 35 U.S.C. 202(e) and 37 CFR 401.10;

     (3)  The balance of any royalties or income earned by the Recipient with
          respect to subject inventions, after payment of expenses (including
          payments to inventors) incidental to the administration of subject
          inventions, will be utilized for the support of scientific or
          engineering research or education; and

     (4)  It will make efforts that are reasonable under the circumstances to
          attract licensees of subject inventions that are small business firms
          and that it will give preference to a small business firm if the
          Recipient determines that the small business firm has a plan or
          proposal for marketing the invention which, if executed, is equally
          likely to bring the invention to practical application as any plans or
          proposals from applicants that are not small business firms; provided
          that the Recipient is also satisfied that the small business firm has
          the capability and resources to carry out its plan or proposal. The
          decision whether to give a preference in any specific case will be at
          the discretion of the Recipient. However, the Recipient agrees that
          the Secretary of Commerce may review the Recipient's licensing program
          and decisions regarding small business applicants, and the Recipient
          will negotiate changes to its licensing policies, procedures or
          practices with the Secretary when the Secretary's review discloses
          that the Recipient could take reasonable steps to implement more
          effectively the requirements of this paragraph (k)(4).

(l)  Communications

     All communications required by this Patent Rights clause should be sent to
     the DOE Patent Counsel address listed in the Award Document.

(m)  Electronic Filing

     Unless otherwise Specified in the award, the information identified in
     paragraphs (f)(2) and (f)(3) may be electronically filed.

                                       18
<PAGE>

RIGHTS IN DATA - GENERAL (OCT 2003)
-----------------------------------

(a)  Definitions

     Computer Data Bases, as used in this clause, means a collection of data in
     a form capable of, and for the purpose of, being stored in, processed, and
     operated on by a computer. The term does not include computer software.

     Computer software, as used in this clause, means (i) computer programs
     which are data comprising a series of instructions, rules, routines or
     statements, regardless of the media in which recorded, that allow or cause
     a computer to perform a specific operation or series of operations and (ii)
     data comprising source code listings, design details, algorithms,
     processes, flow charts, formulae, and related material that would enable
     the computer program to be produced, created or compiled. The term does not
     include computer data bases.

     Data, as used in this clause, means recorded information, regardless of
     form or the media on which it may be recorded. The term includes technical
     data and computer software. The term does not include information
     incidental to administration, such as financial, administrative, cost or
     pricing, or management information.

     Form, fit, and function data, as used in this clause, means data relating
     to items, components, or processes that are sufficient to enable physical
     and functional interchangeability, as well as data identifying source,
     size, configuration, mating, and attachment characteristics, functional
     characteristics, and performance requirements; except that for computer
     software it means data identifying source, functional characteristics, and
     performance requirements but specifically excludes the source code,
     algorithm, process, formulae, and flow charts of the software.

     Limited rights, as used in this clause, means the rights of the Government
     in limited rights data as set forth in the Limited Rights Notice of
     subparagraph (g)(2) if included in this clause.

     Limited rights data, as used in this clause, means data (other than
     computer software) developed at private expense that embody trade secrets
     or are commercial or financial and confidential or privileged.

     Restricted computer software, as used in this clause, means computer
     software developed at private expense and that is a trade secret; is
     commercial or financial and is confidential or privileged; or is published
     copyrighted computer software; including minor modifications of such
     computer software.

     Restricted rights, as used in this clause, means the rights of the
     Government in restricted computer software, as set forth in a Restricted
     Rights Notice of subparagraph (g)(3) if included in this clause, or as
     otherwise may be provided in a collateral agreement incorporated in and
     made part of this contract, including minor modifications of such computer
     software.

                                       19
<PAGE>

     Technical data, as used in this clause, means data (other than computer
     software) which are of a scientific or technical nature. Technical data
     does not include computer software, but does include manuals and
     instructional materials and technical data formatted as a computer data
     base.

     Unlimited rights, as used in this clause, means the right of the Government
     to use, disclose, reproduce, prepare derivative works, distribute copies to
     the public, and perform publicly and display publicly, in any manner and
     for any purpose, and to have or permit others to do so.

(b)  Allocations of Rights

     (1)  Except as provided in paragraph (c) of this clause regarding
          copyright, the Government shall have unlimited rights in -

          (i)  Data first produced in the performance of this agreement;

          (ii) Form, fit, and function data delivered under this agreement;

          (iii) Data delivered under this agreement (except for restricted
               computer software) that constitute manuals or instructional and
               training material for installation, operation, or routine
               maintenance and repair of items, components, or processes
               delivered or furnished for use under this agreement; and

          (iv) All other data delivered under this agreement unless provided
               otherwise for limited rights data or restricted computer software
               in accordance with paragraph (g) of this clause.

     (2)  The Recipient shall have the right to -

          (i)  Use, release to others, reproduce, distribute, or publish any
               data first produced or specifically used by the Recipient in the
               performance of this agreement, unless provided otherwise in
               paragraph (d) of this clause;

          (ii) Protect from unauthorized disclosure and use those data which are
               limited rights data or restricted computer software to the extent
               provided in paragraph (g) of this clause;

          (iii) Substantiate use of, add or correct limited rights, restricted
               rights, or copyright notices and to take over appropriate action,
               in accordance with paragraphs (e) and (f) of this clause; and

          (iv) Establish claim to copyright subsisting in data first produced in
               the performance of this agreement to the extent provided in
               subparagraph (c)(1) of this clause.

(c)  Copyright

     (1)  Data first produced in the performance of this agreement. Unless
          provided otherwise in paragraph (d) of this clause, the Recipient may
          establish, without prior approval of the Contracting Officer, claim to
          copyright subsisting in data first produced in the performance of this

                                       20
<PAGE>

          agreement. When claim to copyright is made, the Recipient shall affix
          the applicable copyright notices of 17 U.S.C. 401 or 402 and
          acknowledgement of Government sponsorship (including agreement number)
          to the data when such data are delivered to the Government, as well as
          when the data are published or deposited for registration as a
          published work in the U.S. Copyright Office. For such copyrighted
          data, including computer software, the Recipient grants to the
          Government, and others acting on its behalf, a paid-up nonexclusive,
          irrevocable worldwide license in such copyrighted data to reproduce,
          prepare derivative works, distribute copies to the public, and perform
          publicly and display publicly, by or on behalf of the Government.

     (2)  Data not first produced in the performance of this agreement. The
          Recipient shall not, without prior written permission of the
          Contracting Officer, incorporate in data delivered under this
          agreement any data not first produced in the performance of this
          agreement and which contains the copyright notice of 17 U.S.C. 401 or
          402, unless the Recipient identifies such data and grants to the
          Government, or acquires on its behalf, a license of the same scope as
          set forth in subparagraph (c)(1) of this clause; provided, however,
          that if such data are computer software the Government shall acquire a
          copyright license as set forth in subparagraph (g)(3) of this clause
          if included in this agreement or as otherwise may be provided in a
          collateral agreement incorporated in or made part of this agreement.

     (3)  Removal of copyright notices. The Government agrees not to remove any
          copyright notices placed on data pursuant to this paragraph (c), and
          to include such notices on all reproductions of the data.

(d)  Release, Publication and Use of Data

     (1)  The Recipient shall have the right to use, release to others,
          reproduce, distribute, or publish any data first produced or
          specifically used by the Recipient in the performance of this
          agreement, except to the extent such data may be subject to the
          Federal export control or national security laws or regulations, or
          unless otherwise provided in this paragraph of this clause or
          expressly set forth in this agreement.

     (2)  The Recipient agrees that to the extent it receives or is given access
          to data necessary for the performance of this award, which contain
          restrictive markings, the Recipient shall treat the data in accordance
          with such markings unless otherwise specifically authorized in writing
          by the contracting officer.

(e)  Unauthorized Marking of Data

     (1)  Notwithstanding any other provisions of this agreement concerning
          inspection or acceptance, if any data delivered under this agreement
          are marked with the notices specified in subparagraph (g)(2) or (g)(3)
          of this clause and use of such is not authorized by this clause, or if
          such data bears any other restrictive or limiting markings not
          authorized by this agreement, the Contracting Officer may at any time
          either return the data to the Recipient or cancel or ignore the
          markings. However, the following procedures shall apply prior to
          canceling or ignoring the markings.

                                       21
<PAGE>

          (i)  The Contracting Officer shall make written inquiry to the
               Recipient affording the Recipient 30 days from receipt of the
               inquiry to provide written justification to substantiate the
               propriety of the markings;

          (ii) If the Recipient fails to respond or fails to provide written
               justification to substantiate the propriety of the markings
               within the 30-day period (or a longer time not exceeding 90 days
               approved in writing by the Contracting Officer for good cause
               shown), the Government shall have the right to cancel or ignore
               the markings at any time after said period and the data will no
               longer be made subject to any disclosure prohibitions.

          (iii) If the Recipient provides written justification to substantiate
               the propriety of the markings within the period set in
               subparagraph (e)(1)(i) of this clause, the Contracting Officer
               shall consider such written justification and determine whether
               or not the markings are to be cancelled or ignored. If the
               Contracting Officer determines that the markings are authorized,
               the Recipient shall be so notified in writing. If the Contracting
               Officer determines, with concurrence of the head of the
               contracting activity, that the markings are not authorized, the
               Contracting Officer shall furnish the Recipient a written
               determination, which determination shall become the final agency
               decision regarding the appropriateness of the markings unless the
               Recipient files suit in a court of competent jurisdiction within
               90 days of receipt of the Contracting Officer's decision. The
               Government shall continue to abide by the markings under this
               subparagraph (e)(1)(iii) until final resolution of the matter
               either by the Contracting Officer's determination becoming final
               (in which instance the Government shall thereafter have the right
               to cancel or ignore the markings at any time and the data will no
               longer be made subject to any disclosure prohibitions), or by
               final disposition of the matter by court decision if suit is
               filed.

     (2)  The time limits in the procedures set forth in subparagraph (e)(1) of
          this clause may be modified in accordance with agency regulations
          implementing the Freedom of Information Act (5 U.S.C. 552) if
          necessary to respond to a request thereunder.

(f)  Omitted or Incorrect Markings

     (1)  Data delivered to the Government without either the limited rights or
          restricted rights notice as authorized by paragraph (g) of this
          clause, or the copyright notice required by paragraph (c) of this
          clause, shall be deemed to have been furnished with unlimited rights,
          and the Government assumes no liability for the disclosure, use, or
          reproduction of such data. However, to the extent the data has not
          been disclosed without restriction outside the Government, the
          Recipient may request, within 6 months (or a longer time approved by
          the Contracting Officer for good cause shown) after delivery or such
          data, permission to have notices placed on qualifying data at the
          Recipient's expense, and the Contracting Officer may agree to do so if
          the Recipient:

          (i)  Identifies the data to which the omitted notice is to be applied;

                                       22
<PAGE>

          (ii) Demonstrates that the omission of the notice was inadvertent;

          (iii) Establishes that the use of the proposed notice is authorized;
               and

          (iv) Acknowledges that the Government has no liability with respect to
               the disclosure, use, or reproduction of any such data made prior
               to the addition of the notice or resulting from the omission of
               the notice.

     (2)  The Contracting Officer may also:

          (i)  Permit correction at the Recipient's expense of incorrect notices
               if the Recipient identifies the data on which correction of the
               notice is to be made, and demonstrates that the correct notice is
               authorized, or

          (ii) Correct any incorrect notices.

(g)  Protection of Limited Rights Data and Restricted Computer Software

     When data other than that listed in subparagraphs (b)(1)(i), (ii), and
     (iii) of this clause are specified to be delivered under this agreement and
     qualify as either limited rights data or restricted computer software, if
     the Recipient desires to continue protection of such data, the Recipient
     shall withhold such data and not furnish them to the Government under this
     agreement. As a condition to this withholding, the Recipient shall identify
     the data being withheld and furnish form, fit, and function data in lieu
     thereof. Limited rights data that are formatted as a computer data base for
     delivery to the Government are to be treated as limited rights data and not
     restricted computer software.

(h)  Subaward/Contract

     The Recipient has the responsibility to obtain from its
     subrecipients/contractors all data and rights therein necessary to fulfill
     the Recipient's obligations to the Government under this agreement. If a
     subrecipient/contractor refuses to accept terms affording the Government
     such rights, the Recipient shall promptly bring such refusal to the
     attention of the Contracting Officer and not proceed with the
     subaward/contract award without further authorization.

(i)  Additional Data Requirements

     In addition to the data specified elsewhere in this agreement to be
     delivered, the Contracting Officer may, at anytime during agreement
     performance or within a period of 3 years after acceptance of all items to
     be delivered under this agreement, order any data first produced or
     specifically used in the performance of this agreement. This clause is
     applicable to all data ordered under this subparagraph. Nothing contained
     in this subparagraph shall require the Recipient to deliver any data the
     withholding of which is authorized by this clause, or data which are
     specifically identified in this agreement as not subject to this clause.
     When data are to be delivered under this subparagraph, the Recipient will
     be compensated for converting the data into the prescribed form, for
     reproduction, and for delivery.

                                       23
<PAGE>

(j)  The recipient agrees, except as may be otherwise specified in this award
     for specific data items listed as not subject to this paragraph, that the
     Contracting Officer or an authorized representative may, up to three years
     after acceptance of all items to be delivered under this award, inspect at
     the Recipient's facility any data withheld pursuant to paragraph (g) of
     this clause, for purposes of verifying the Recipient's assertion pertaining
     to the limited rights or restricted rights status of the data or for
     evaluating work performance. Where the Recipient whose data are to be
     inspected demonstrates to the Contracting Officer that there would be a
     possible conflict of interest if the inspection were made by a particular
     representative, the Contracting Officer shall designate an alternate
     inspector.

LIMITED RIGHTS DATA (JAN 2004)
------------------------------

(a)  The limited rights data subject to the "Rights in Data" clause in this
     award are listed below. This listing of data, which are asserted by the
     Recipient to be limited rights data, does not constitute an admission by
     the Government that the data is in fact limited rights data.

          1.   Sorbent injection system (design of sorbent storage and sorbent
               feeding equipment); and
          2.   Sorbents (manufacturing process and composition).

(b)  If a patent is issued by the United States Patent and Trademark Office or
     the patent office of any foreign country based on any information asserted
     to be limited rights data, the Government will no longer treat any data
     contained in such issued patent as limited rights data. In addition, if any
     information asserted to be limited rights data results in or becomes a
     Subject Invention, as that term is defined in the patent rights clause of
     this agreement, the Government will only treat such data as limited rights
     data until the Recipient has filed its initial patent application.

(c)  The Recipient shall not introduce or utilize any limited rights data not
     identified in paragraph (a) above in the performance of the award without
     the expressed written permission of the Contracting Officer.

(d)  Minimum technical data deliverable with unlimited rights. Not withstanding
     any other provision of this award, the following technical data first
     produced under this award as a minimum, shall be delivered to the DOE with
     unlimited rights:

     1.   Sorbent Injection System (operating parameters-throughput, airflow
          rate, location of injection ports, number of injection locations,
          general process diagram)
     2.   Sorbents
               a.   performance at removing mercury from flue gas (% removal)
               b.   physical properties (particle size distribution, pore size,
                    surface area, iodine numbers, sorption capacity)
               c.   conditions of use (temperature, use rate, concentrations of
                    gas components treated)
               d.   impacts of fly ash (if tested)

                                       24
<PAGE>

52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL). (JUN 1987)
---------------------------------------------------------

Except for data contained in pages [None], it is agreed that as a condition of
award of this contract, and notwithstanding the conditions of any notice
appearing thereon, the Government shall have unlimited rights (as defined in the
"Rights in Data - General" or the "Rights in Data - Programs Covered Under
Special Data Statutes" clause contained in this contract) in and to the
technical data contained in the proposal dated 04/30/04, upon which this
contract is based.

                                       25
<PAGE>

                        SECTION III - LIST OF ATTACHMENTS
                        ---------------------------------

Attachment A -- Statement of Project Objectives

Attachment B -- Federal Assistance Reporting Checklist

Attachment C -- Budget Page(s)

Attachment D -- Recipient Acquired Property

                                       26
<PAGE>

                 ATTACHMENT A -- STATEMENT OF PROJECT OBJECTIVES
                 -----------------------------------------------

            "Low-Cost Options for Moderate Levels of Mercury Control"

     A. OBJECTIVES

     The purpose of the proposed test program is to evaluate two technologies
that utilize the injection of sorbent materials to remove mercury from
coal-fired power plant flue gas--TOXECON IITM and high-temperature sorbents.

     Key objectives of the program are to:

     o    lessen the cost of mercury control,
     o    test control technology that is applicable to a different power plant
          configuration that is currently not adequately addressed (hot-side
          ESP),
     o    test technology that is applicable to the largest population of power
          plant configurations, and
     o    expand the database of what is known about mercury and control
          systems.

     The program will test TOXECON IITM at AEP Gavin (high S bituminous), and
Entergy Independence (PRB). The program will test high-temperature sorbents at
MidAmerican Council Bluffs and Louisa (PRB). In addition to the mentioned host
sites, EPRI, Dynegy, and Oglethorpe Power are supporting the program with
financial commitments.

     Because these technologies have not had previous widespread testing at
plants burning different ranks of coal, tests are suggested at both low rank and
bituminous burning plants to evaluate whether rank makes a difference in
performance of the technology. These technologies are directly applicable to
coal-fired power plant sites that employ electrostatic precipitators (ESPs) as
the primary particulate removal system. This configuration represents
approximately 797 plants that produce a combined 277,000 MW, or approximately
72% of existing coal-fired generating capacity and potentially a significant
portion of new plants. These sites will allow documentation of sorbent
performance on the following configurations:

     o    PRB coal with ESP
     o    Bituminous coal with ESP
     o    PRB coal with hot-side ESP
          The secondary objectives of this program are to:
     o    accelerate the scale-up and availability of commercial mercury control
          systems for subbituminous- and bituminous-fired plants with standard
          particulate control systems;
     o    evaluate technological advancements likely to improve performance and
          reduce costs associated with mercury control;
     o    obtain data on operability, maintainability, and reliability;
     o    document technology to reduce impacts on coal utilization byproducts;
     o    determine maximum mercury removal for various plant configurations;
          and
     o    determine the total costs associated with mercury control as a
          function of fuel and plant characteristics.

     B. TEST SITES

Testing is planned for four host sites. TOXECON IITM will be tested at two sites
and high-temperature sorbents will be tested at two sites. The characteristics
and virtues of each site are itemized in Tables 1, 2 and 3.

                                       26
<PAGE>
<TABLE>
<CAPTION>

                         Table 1. Matrix Identifying Host Site with NETL Area of Interest
<S>                       <C>         <C>           <C>          <C>         <C>          <C>
------------------------- ----------- ------------ ------------ ------------ ----------- ----------- ----------------
Area of Interest             AEP                     Entergy                 MidAm CB      MidAm
                            Gavin                   Indepen.                    (1)      Louisa (1)
========================= =========== ============ ============ ============ =========== =========== ================
Technology to be
evaluated                                   TOXECON II(TM)                          High-Temperature Sorbents
------------------------- -------------------------------------------------- ----------------------------------------
Approximate number of
units of applicability                           715                                           82
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------
Low rank fuels                                          X                         X             X
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------
Bituminous fuels               X
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------
Blended fuels
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------
Test size (MW)                200                      210                        88           350
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------
Longer-term tests
(1-2 months)                   X                        X                     See Note 1    See Note 1
------------------------- ------------ ----------- ------------- ----------- ------------- ------------- ------------

Note 1. Dry sorbents will be tested at Council Bluffs and liquid sorbents will
be tested at Louisa. Sorbents will be tested at each site through the parametric
testing phase where performance will me measured as a function of several
operating parameters. Depending on the parametric tests, long-term testing will
be performed at only the site exhibiting the better sorbent performance. In
other words, long-term testing of high temperature sorbents will occur at only
one site.

                 Table 2. Host Site Key Descriptive Information
----------------- ------------- ------------- ------------- -------------
                      AEP         Entergy        MidAm         MidAm
                     Gavin        Indepen.         CB          Louisa
================= ============= ============= ============= =============
Unit No.             1 or 2          1             2             1
----------------- ------------- ------------- ------------- -------------
Size (MW)            1,200          842            88           700
----------------- ------------- ------------- ------------- -------------
Test Portion          200           210            88           350
(MW)
----------------- ------------- ------------- ------------- -------------
Coal                  Bit           PRB           PRB           PRB
----------------- ------------- ------------- ------------- -------------
   Heating           11,111        8,870         8,425         8,500
   Value
   (as rec'd.)
----------------- ------------- ------------- ------------- -------------
   Sulfur             3.9           0.32          0.32          0.32
   (% by
   weight)
----------------- ------------- ------------- ------------- -------------
   Chlorine          1,333           50          50-100        50-100
   (ppm)
----------------- ------------- ------------- ------------- -------------
   Mercury            0.17          0.04          0.08          0.08
   ((mu)g/g)
----------------- ------------- ------------- ------------- -------------
Particulate          CSESP         CSESP         HSESP         HSESP
Control
----------------- ------------- ------------- ------------- -------------
SCA/fields           430/6         542/8        224/(4)        459/5
(ft2/kacfm)
----------------- ------------- ------------- ------------- -------------
Sulfur Control        Wet       Compl. Coal   Compl. Coal   Compl. Coal
                      FGD
----------------- ------------- ------------- ------------- -------------
Disposition of      Disposed        Sold       Some sold        Sold
Ash
----------------- ------------- ------------- ------------- -------------
Typical Inlet
Mercury              13-18          6-7        11.1-13.5     11.1-13.4
((mu)g/dncm)
----------------- ------------- ------------- ------------- -------------
Typical Mercury     0% (ESP)      10%-20%        0%-10%        0%-10%
Removal             70%+ in
                     (FGD)
----------------- ------------- ------------- ------------- -------------

                                       28
<PAGE>

                          Table 3. Measured and Predicted Mercury Concentrations and Removal

-------------------------------------- ------------------------ ----------------------- ------------------------------
                                                Inlet                   Outlet               Removal Efficiency
-------------------------------------- ------------------------ ----------------------- ------------------------------
Gavin(a)
-------------------------------------- ------------------------ ----------------------- ------------------------------
Particulate ((mu)g/dncm)                          0                       0
-------------------------------------- ------------------------ ----------------------- ------------------------------
Oxidized ((mu)g/dncm)                             2                       2
-------------------------------------- ------------------------ ----------------------- ------------------------------
Elemental ((mu)g/dncm)                           13                       13
-------------------------------------- ------------------------ ----------------------- ------------------------------
Total ((mu)g/dncm)                               15                       15                    0% across ESP
-------------------------------------- ------------------------ ----------------------- ------------------------------
Independence(b)
-------------------------------------- ------------------------ ----------------------- ------------------------------
Particulate ((mu)g/dncm)                       0.8-1.0                    0                         >99%
-------------------------------------- ------------------------ ----------------------- ------------------------------
Oxidized ((mu)g/dncm)                          1.0-1.2                 0.8-1.1
-------------------------------------- ------------------------ ----------------------- ------------------------------
Elemental ((mu)g/dncm)                         4.0-4.9                 3.2-4.4
-------------------------------------- ------------------------ ----------------------- ------------------------------
Total ((mu)g/dncm)                             6.0-7.0                 4.8-6.3                     10-20%
-------------------------------------- ------------------------ ----------------------- ------------------------------
Council Bluffs(c)
-------------------------------------- ------------------------ ----------------------- ------------------------------
Particulate ((mu)g/dncm)                       1.4-1.8                    0                         >99%
-------------------------------------- ------------------------ ----------------------- ------------------------------
Oxidized ((mu)g/dncm)                          1.9-2.4                 1.7-2.4
-------------------------------------- ------------------------ ----------------------- ------------------------------
Elemental ((mu)g/dncm)                         7.5-9.6                 6.7-9.6
-------------------------------------- ------------------------ ----------------------- ------------------------------
Total ((mu)g/dncm)                            11.1-13.5               10.0-13.5                     0-10%
-------------------------------------- ------------------------ ----------------------- ------------------------------
Louisa(c)
-------------------------------------- ------------------------ ----------------------- ------------------------------
Particulate ((mu)g/dncm)                       1.4-1.7                    0                         >99%
-------------------------------------- ------------------------ ----------------------- ------------------------------
Oxidized ((mu)g/dncm)                          1.9-2.4                 1.7-2.4
-------------------------------------- ------------------------ ----------------------- ------------------------------
Elemental ((mu)g/dncm)                         7.5-9.6                 6.7-9.6
-------------------------------------- ------------------------ ----------------------- ------------------------------
Total ((mu)g/dncm)                            11.1-13.4               10.0-13.4                     0-10%
-------------------------------------- ------------------------ ----------------------- ------------------------------

a.   Mercury measurements during EPRI testing 2001.

b.   Mercury speciation and concentration estimated based on coal analysis.
     Removal efficiency estimated from similar configurations and using actual
     test site outlet data.

c.   Mercury speciation and concentration estimated based on coal analysis.
     Removal efficiency estimated from similar configurations.

                                       29
</TABLE>
<PAGE>

C.  SCOPE OF WORK

To achieve the overall objective of this program an extensive field-test program
is proposed for each site. A team of experienced personnel has been assembled to
conduct the primary tasks. This approach will minimize the challenges associated
with installing the technologies and assure the same quality data and execution
as previous tests that ADA-ES has performed. The key components are summarized
below.

     o    The use of a semi-continuous mercury analyzer (SCEM) similar to the
          design used during sorbent injection field-testing at the seven
          full-scale coal-fired power plants under EPRI and DOE/NETL programs in
          2001 through 2003. During previous programs, the analyzer demonstrated
          reliable performance when operated by a skilled engineer and could be
          quickly repaired if problems occurred. ADA-ES personnel will operate
          the SCEM.
     o    Injection equipment will be operated and maintained by experienced
          engineers who can quickly determine and fix operating problems.
     o    Results will be analyzed and reviewed daily by engineers experienced
          in parametric evaluations of new pollution control technologies.

The field-tests will be accomplished through a series of tasks. The tasks are
independent from each other in that they each have specific goals and tests
associated with them. However, they are also interdependent, as the results from
each task will influence the test parameters of subsequent tasks. A summary of
each task is presented.
ADA-ES engineers will coordinate with plant personnel to retrieve the necessary
plant operating data files. An example of the operating data is included in
Table 4. These data will be integrated into the sorbent injection and mercury
control data. Data will be reviewed daily if it can be provided by the plant
daily. ADA-ES site engineers will work closely with plant operators to monitor
plant operation in real-time during testing. If at any time the performance of
the existing pollution control equipment degrades or if there is a measurable
increase in outlet emissions that becomes a concern, testing will be halted.

The primary extraction locations for the mercury SCEMs will be across the entire
air pollution control train, and at the inlet and outlet of the ESP. Triplicate
manual mercury samples using the draft Ontario Hydro Method will be collected at
the inlet and outlet locations. One set of triplicate measurements will be done
during baseline testing and three sets of triplicate measurements will be made
during the long-term testing phase (near the beginning, middle and end of the
long-term tests). Because of the influence of HCl on sorbent effectiveness, HCl
measurements will be made at each site to better characterize the flue gas. The
extraction location will be identified after a full velocity and temperature
traverse to indicate a representative duct average mercury concentration.

                                       30
<PAGE>
<TABLE>
<CAPTION>

                                Table 4. Typical Data Collected During Field-Testing
<S>                              <C>                                            <C>           <C>
   ----------------------------- --------------------------------------------- --------------- ---------------------
                                                                                               Parametric/
   Parameter                     Sample/Signal/Test                               Baseline     Long-Term

   ----------------------------- --------------------------------------------- --------------- ---------------------
   Coal                          Batch sample                                       Yes                Yes
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Coal                          Plant signals:                                     Yes                Yes
                                    burn rate (lb/hr)
                                    quality (lb/MMBTU, % ash)
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Fly ash                       Batch sample                                       Yes                Yes
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Wet scrubber blowdown,        Batch sample                                       Yes               No/Yes
   solids discharge and feed
   limestone
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Unit operation                Plant Signals:                                     Yes                Yes
                                    Boiler load
                                    Measure of flow for partial unit
                                    test (e.g., fan amps)
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Temperature                   Plant signal at particulate collector inlet        Yes                Yes
                                 and outlet
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Temperature                   Full traverse, inlet and outlet                    Yes                 No
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Duct Gas Velocity             Full traverse, inlet and outlet                    Yes                 No
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Mercury (total and            Au-CVAAS SCEM                                      Yes                Yes
   speciated)
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Mercury (total and            Ontario Hydro, inlet and outlet                Yes (1 set)      No/Yes (2 sets)
   speciated)
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Multi-Metals Emissions        Method 29                                      Yes, outlet       No/Yes, outlet
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Sorbent Injection Rate        PLC, lbs/min                                        No                Yes
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Plant CEM data (NOx, O2,      Plant data--stack                                   Yes               Yes
   SO2)
   ----------------------------- --------------------------------------------- --------------- ---------------------
   HCl                           EPA Method 26A                                     Yes                Yes
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Stack Opacity                 Plant data                                         Yes                Yes
   ----------------------------- --------------------------------------------- --------------- ---------------------
   Pollution control equipment   Plant data (ESP power, baghouse cleaning,          Yes                Yes
   operation                     etc.)
   ----------------------------- --------------------------------------------- --------------- ---------------------

Figures 1 and 2 below show general configurations of power plant to be tested
for TOXECON IITM and the high-temperature sorbents. The figures show sampling
locations and types of samples to be collected.

                                       31
</TABLE>
<PAGE>

-- GRAPHIC ON FILE --

Figure 1. General arrangement and samples to be collected in TOXECON II(TM)
tests.

Figure 2 (below). General arrangement and samples to be collected in
high-temperature sorbent tests.

-- GRAPHIC ON FILE --

                                       32
<PAGE>

     D.   TASKS TO BE PERFORMED

A work plan is proposed that will effectively accomplish the objectives and
perform long-term testing at the optimum conditions. The program will be
accomplished by following a series of technical tasks:

     Task 1.  Site Coordination, Kickoff Meeting, Test Plan and QA/QC Plan
     Task 2.  Design and Install Site Specific Equipment
     Task 3.  Field-Tests-Sorbent Screening
     Task 4.  Field-Tests-Baseline Tests
     Task 5.  Field-Tests-Parametric Tests
     Task 6.  Field-Tests-Long-Term Tests
     Task 7.  Data Analysis
     Task 8.  Sample Evaluation
     Task 9.  Site Report
     Task 10.  Technology Transfer
     Task 11.  Management and Reporting
     Task 12.  Ash Processing/Sorbent Recycling Options

     Tasks 1-11 will be repeated for each test site with modifications designed
to address the specific configurations, needs and challenges of each host site.
The field-testing tasks are the heart of the program where mercury controls are
actually tested and operating experience is gained.

     Task 1. Site Coordination, Kickoff Meeting, Test Plan and QA/QC Plan

Efforts within this task include planning the site-specific tests with the host
site, DOE/NETL and contributing team members. The planning process includes
meeting with plant personnel, corporate, and environmental personnel to discuss
and agree upon the overall scope of the program for that particular site, the
potential impact on plant equipment and operation, and to gather preliminary
information necessary to develop a detailed draft test plan and scope of work.
Efforts include identifying any permit requirements, developing a quality
assurance/quality control plan, finalizing the site-specific scope for each of
the team members, and putting subcontracts in place for Ontario Hydro mercury
measurement services.
A key component of the planning process for these evaluations is identifying
potential sorbents for testing. The test program at each site allows for the
evaluation of different sorbents because of the economic impact of sorbent cost
on the overall cost of mercury control and disposal considerations. In addition,
sorbents that have the potential to capture mercury at the low HCl conditions
typical of subbituminous units will be evaluated. NORIT DARCO FGD will be one of
the sorbents tested because of its benchmark qualities as being tested widely in
previous DOE/EPRI/EPA-sponsored testing. Because of the economic impact of
sorbent cost on the overall cost of mercury control and disposal considerations,
it is desirable to find less expensive sorbents and non-carbon-based sorbents.

As part of the proposed scope, Quality Assurance and Quality Control (QA/QC)
will be documented and specific procedures adhered to. The primary objectives of
the QA/QC effort at each proposed site will be to control, evaluate, and
document data quality to ensure that data generated are of sufficient quality to
meet program objectives. Specific key parts of the QA/QC plan will include:

     o    QA/QC in sample collection, analytical and data analysis,
     o    Integral performance evaluation and verification of Hg removal,
     o    Procedural remedies for identified data deficiencies, and

                                       33
<PAGE>

     o    Oversight and documentation of all QA/QC.
     o
A draft test plan will be presented at a kickoff meeting at the plant site. The
test plan and supporting documents will be available for host site personnel to
use when addressing permitting, scheduling and operating issues. Following the
kickoff meeting, the final test plan will be developed with input and approval
from both the host site and DOE.

     Task 2. Design and Install Site-Specific Equipment

Some components are site-specific and, by necessity, will be provided by the
host utility. These are components that must be sized and designed for the
specific plant arrangements and ductwork configurations. Site-specific equipment
includes the sorbent distribution manifold and sorbent injectors (if possible
these components will be re-used at multiple sites). Required site support
includes installation of the injection and sampling ports (if not available),
installation of required platforms and scaffolding, compressed air, electrical
power, wiring plant signals including boiler load to the injection skid and
control trailer, and balance of plant engineering.

ADA-ES engineers will work with plant engineers to develop an installation and
contractor bid package for installation activities, and work with the
installation contractors. The host utility will be responsible for all
permitting and any variance requirements. In addition, the host utility will
make arrangements to isolate fly ash from the test unit during sorbent
injection.
Silo systems from previous Phase I and II testing will be used as much as
possible on the testing proposed here. The equipment will cover the expected
range of plant sizes and flue gas conditions described in this proposal. In
summary, the equipment will include a sorbent injection system with a
bulk-storage silo and twin blower/feeder trains. Sorbent is metered by variable
speed screw feeders into eductors that provide the motive force to carry the
sorbent to the injection point. Flexible hose carries the sorbent from the
feeders to distribution manifolds located on the flue gas duct, feeding the
injection probes. Silo systems will be used at all plants except MidAmerican
Louisa. A liquid sorbent will be used at Louisa, and the site is already
equipped with a liquid injection system for flue gas conditioning, therefore new
lances and distribution systems will not be required.

PAC is delivered in bulk pneumatic trucks and loaded into the silo, which is
equipped with a bin vent bag filter. From the two discharge legs of the silo,
the sorbent is metered by variable speed screw feeders into eductors that
provide the motive force to carry the sorbent to the injection point.
Regenerative blowers provide the conveying air. A PLC system is used to control
system operation and adjust injection rates. Figure 3 is a photograph of the
sorbent silo and feed train designed to treat a 150-MW boiler on a unit with an
ESP. Flexible hose carries the sorbent from the feeders to distribution
manifolds located on the flue gas ducts, feeding the injection probes. Each
manifold supplies up to six injectors.

ADA-ES will oversee installation and system checkout of the mercury control
equipment. Procedures followed in this task will be similar to those used in the
previous full-scale mercury control programs ADA-ES conducted for DOE (Phase I
testing). If necessary, ADA-ES is capable of taking responsibility for all
phases of the installation, except for final connections into plant utilities.
ADA-ES will work with the host utility to assure that the equipment is installed
in an efficient manner, within the resources available at the site.

ADA-ES will be responsible for the final checkout of all systems and for the
general maintenance of the systems during testing. At least one engineer or
technician who is solely dedicated to the operation of the equipment will be
on-site for all tests. The actual equipment installation, not including
preparation tasks, is estimated to take three weeks. This includes time for
checkout and troubleshooting. ADA-ES will also install the mercury SCEMs at the
host utility.

                                       34
<PAGE>

-- GRAPHIC ON FILE --

Figure 3. Carbon injection storage silo and feeder trains for 150 MWs (Phase I
System).

Special consideration for site-specific equipment will be made for injection and
sampling locations for the high-temperature sorbent test sites given the extreme
temperature conditions. Reaction Engineering will be contracted to perform
computational fluid dynamic modeling of the high-temperature zones in order to
aid in the optimal siting of the injection lances.
For the TOXECON IITM sites, ESP designs will be studied thoroughly to evaluate
proper siting of the injection lances between collection fields. In addition,
hopper sections and ash handling systems will be evaluated for potential
modifications to maximize the segregation of clean ash from the ash that
contains sorbent.

     Task 3. Field-Tests - Sorbent Screening (HT Sorbents Sites Only)

At the Council Bluffs site (the Louisa site may be substituted as a surrogate
for the Council Bluffs site for the sorbent screening testing because flue gas
characteristics are similar and test locations may have easier access), selected
dry sorbents will be screened on actual flue gas. ADA-ES has successfully used a
process in past projects where sorbent suppliers and developers are solicited to
provide samples of material for the screening tests. Qualification criteria are
used to down-select sorbents based on projected commercial prices and the
vendor's ability to produce sorbents in quantities required for full-scale runs.
Results on screening tests will be used by the team to select alternative
sorbents.

Sorbent screening tests are not planned for the TOXECON IITM sites because a
considerable amount of sorbent information will have been collected from other
Phase II plants that ADA-ES is testing during 2004 under similar cold-side ESP
flue gas conditions (20-30 sorbents have been screened at Sunflower Holcomb in
Spring 2004).

                                       35
<PAGE>

ADA-ES has developed a sorbent screening fixture that can be used to evaluate
three sorbents at a time. Flue gas from the host site is drawn through a fixture
where it is split into three streams, each containing a bed of sorbent. An
analyzer is used to measure inlet and outlet mercury concentrations from each
sorbent bed. The fixture was used to evaluate more than 20 different sorbents in
a matter of just a few days recently as part of the Phase II testing being
conducted at Sunflower Electric's Holcomb Station.

     Task 4. Field-Tests - Baseline Tests

Once the equipment is installed, a set of baseline tests will be conducted just
prior to the parametric testing. Ontario Hydro mercury measurements will be
conducted in conjunction with SCEM measurements during this task. Unit operation
will be set at conditions expected during the parametric tests. It is
anticipated that boiler load will be held constant at full-load and that the air
pollution equipment will be operated under standard full-load conditions (e.g.,
standard soot blowing and ESP rapping sequences will be used).

     Task 5. Field-Tests - Parametric Tests

The goals of this task are to define the quantity of sorbent required to obtain
different levels of mercury removal, such as 30%, 50% and 70% of the remaining
mercury. Up to four weeks of parametric testing will be conducted, depending on
the host site test plan.

The first week of parametric testing at the TOXECON II sites will be conducted
using the benchmark sorbent, FGD. The second week typically evaluates alternate
sorbents at injection concentrations determined in the week one tests. The third
and fourth weeks will be used to evaluate additional sorbents and varying
operating conditions. A condition is typically tested for about 8 hours, and
then the system is shut down and allowed to return to baseline conditions before
the next parametric test.

     Several liquid sorbents will also be tested at Louisa. This will be done by
preparing several different formulations of liquid chemicals and spraying these
chemicals into the Louisa flue gas using the existing equipment at the site.
Mercury measurements will be made upstream and downstream of the liquid
injection location. to measure mercury removal rates.

     Task 6. Field-Tests - Long-Term Tests

Long-term testing will be conducted at the "optimum" settings as determined in
the parametric tests and approved by both DOE and the host utility. The goal of
this task is to obtain sufficient operational data on removal efficiency over
time (this will be done for at least 4 continuous weeks), determine the effects
on the particulate control device, determine the effects on the sulfur control
equipment (if any), determine effects on byproducts, and determine impacts to
the balance of plant equipment to prove viability of the process and determine
the economics. During this test, Ontario Hydro measurements will be conducted at
the inlet and outlet of the pollution control device(s) on three occasions
(beginning, middle and end of the long term test phase). This task is the single
most important step in gaining acceptance from the utility industry as to the
practical implementation of mercury removal technologies on coal-fired power
plants.

                                       36
<PAGE>

     Task 7. Data Analysis

Data collection and analysis for this program is designed to measure the effect
of sorbent injection on mercury control and the impact on the existing pollution
control equipment. The mercury levels and plant operation will be characterized
without sorbent injection and with various sorbents and injection rates and
possible combustion modifications as defined by the final test plan, and a
long-term evaluation to identify effects that may not be immediate.
Many signals typically archived by the plant will be monitored to determine if
any correlation exists between changes in mercury concentration with measured
plant operation. A correlation is not unusual between temperature and load for
example.
Because of the apparent influence of HCl on sorbent effectiveness, HCl
measurements will be conducted and samples analyzed to determine if a
correlation between sorbent effectiveness and HCl concentrations.

     Task 8. Sample Evaluation

Coal and combustion byproduct samples collected throughout the field-test will
be analyzed in this task. During all test phases, samples of coal, fly ash and
scrubber waste will be collected for analysis. Dr. Connie Senior of Reaction
Engineering International will head up this task.
A full analysis of the coal will be conducted including the mercury, sulfur
levels, chlorine and other halogens. Sorbent injection will result in the fly
ash and scrubber materials being mixed with mercury-containing sorbent. The ash
samples will be analyzed at a minimum for mercury and LOI. Scrubber solids
discharge material as well as reagent feed will be analyzed for mercury. Because
of the apparent influence of different halogens on sorbent effectiveness, gas
phase measurements of the various halogens such as chlorine, bromine and
fluorine will be conducted and samples analyzed to determine if there is a
correlation between sorbent effectiveness and halogen concentrations. Actual
number and types of tests are determined in the final test plan for each host
site.

Although previous tests from a number of programs have shown that the byproducts
mixed with activated carbon are highly stable, it is important to continue
evaluating these byproducts for each condition using well-established and
documented techniques and new techniques designed to perform even more robust
analyses of the byproducts. Standard test methods will include the Toxicity
Characteristic Leaching Procedure (TCLP, SW846-1311), synthetic groundwater
leaching procedure (SGLP), concrete acceptability tests under ASTM Specification
C618, and air entrainment tests. Additional ash and scrubber samples will be
collected and archived for other tests, including tests requested by EPA, DOE,
and independent companies approved by DOE.

Microbeam Technologies, Inc. (MTI) will be one of the subcontractors under this
task. Dr. Steve Benson will coordinate the activities of MTI and act as a
technical consultant to the program. MTI specializes in the analysis of ash
produced as a result of combustion and gasification of fossil fuels using a
variety of analytical methods. Additional analytical organizations may be
contracted with to provide specific analytical services (e.g., EERC, CTL
Thompson).

                                       37
<PAGE>
<TABLE>
<CAPTION>

Table 5 summarizes the testing to be conducted under this task and Table 6 shows
the sampling frequency and total volume of samples to be collected from each
site.

                                  Table 5. Summary of Waste Characterization Testing

<S>          <C>                      <C>                              <C>
------------ ------------------------ ------------------------------- -----------------------------------------------
  Series     Test Purpose              Test Method                     Comments
------------ ------------------------ ------------------------------- -----------------------------------------------
                                                                       Measures leachable Hg, As, Ba, Cd, Cr, Pb,
     1       Ash Disposal              TCLP (SW846-1311)               Se, Ag
------------ ------------------------ ------------------------------- -----------------------------------------------
                                                                       Measures LOI, total oxides, sulfur trioxide,
             Cement Additive           ASTM C618                       moisture, available alkalines, fineness,
     2       Suitability               Air Entrainment Shaker Test     pozzolanic activity, autoclave soundness,
                                                                       specific gravity, air entrainment
------------ ------------------------ ------------------------------- -----------------------------------------------
             Environmental                                             Measures leachable Hg at 18 hrs, 2 weeks,
             Stability - Leaching      EERC SGLP                       and 4 weeks
     3
             Environmental
             Stability - Air Release                                   Measures Hg release as a function of
                                       EERC Thermal Desorption         temperature up to 500oC
------------ ------------------------ ------------------------------- -----------------------------------------------
                                                                       As needed for troubleshooting or
     4       Special Testing           Various                         site-specific information needs
------------ ------------------------ ------------------------------- -----------------------------------------------

                          Table 6. Ash Sampling Schedule and Volumes - Each Test Site

-------------------------------- ------------------------------------------------ -----------------------------------
Test Condition                   Frequency                                        Comments
-------------------------------- ------------------------------------------------ -----------------------------------
Baseline                         Grab samples Daily during tests                  ~30-gallon sample
-------------------------------- ------------------------------------------------ -----------------------------------
Parametric Test #1               Grab Samples Daily for 1 week                    ~30-gallon total sample
-------------------------------- ------------------------------------------------ -----------------------------------
Parametric Test #2               Grab Samples Daily for 1 week                    ~30-gallon total sample
-------------------------------- ------------------------------------------------ -----------------------------------
Parametric Test #3               Grab Samples Daily for 1 week                    ~30-gallon total sample
-------------------------------- ------------------------------------------------ -----------------------------------
Long-term Test                   Grab Samples Daily for 2 weeks                   ~200-gallon total sample
-------------------------------- ------------------------------------------------ -----------------------------------
</TABLE>

     Task 9. Site Report

This task provides time for performing an economic analysis for each site test
and completing a topical report for each site.

After completion of testing and analysis of the data at each plant, the
requirements and costs for full-scale permanent commercial implementation of the
selected mercury control technology will be determined. The program team will
meet with the host utility plant and engineering personnel to develop
plant-specific design criteria. Process equipment will be sized and designed
based on test results and the plant-specific requirements (e.g., reagent storage
capacity, plant arrangement, retrofit issues, winterization, controls
interface). A conceptual design document will be developed. This may include
modifications to the particulate collector, ash handling system, compressed air
supply, electric power capacity, other plant auxiliary equipment, utilities and
other balance of plant engineering requirements.

Finally, a budget cost estimate will be developed to implement the control
technology. This will include capital cost estimates for mercury control process
equipment as well as projected annual operating costs. Where possible,
order-of-magnitude estimates will be included for plant modifications and
balance of plant items.

                                       38
<PAGE>

The site report will include test procedures, analyses, and results obtained.
This report is intended to be a stand-alone document providing a comprehensive
review of the work at each site.

     Task 10. Technology Transfer

Presentations will be made at selected conferences, with DOE approval, to
increase exposure of the test results and receive comments on the applicability
of the technology to the industry. Transferring the information generated during
this program to the coal-fired utility customers will be an important part of
the program. Dr. Durham, who led the technology transfer activities during the
Phase I program, will lead this important activity. The ultimate goal of
technology transfer is to make results available to the public as quickly,
comprehensively and accurately as possible. Technology transfer activities
performed in the previous tests included participating in DOE/NETL-sponsored
meetings, EPA Hg MACT Stakeholder meetings, presentations at more than 50 events
or companies, hosting a Web site for project team members and presentation of
project information, and publication of more than 100 technical papers. ADA-ES
will work with NETL in determining and supporting the key meetings,
presentations and publications. ADA-ES will also establish a Web site for the
project and participants. ADA-ES has done this on other NETL projects very
successfully.

     Task 11. Management and Reporting

This task provides time for overall program management, and preparation of
financial and administrative reports. This task will also support periodic
meetings with DOE to discuss progress and obtain overall direction of the
program from the DOE project manager.

     Table 7 provides a summary of the reporting activities to be conducted
under the program.

        Table 7. Summary of Reporting and Technology Transfer Activities

================================================================================
                        Activity or Report                    Frequency
--------------------------------------------------------------------------------

                   Program/Project Management
Federal Assistance Program/Project Status Report              Quarterly
Financial Status Report                                       Quarterly

                           Technical
Technical Progress Report                                     Quarterly
Topical Report                                                As Required
Final Report                                                  Final

                         Environmental
Hazardous Substance Plan                                      Once After Award
Hazardous Waste Report                                        Final

                           Property
Report of Termination or Completion Inventory                 Final

                           Exception
Hot Line Report                                               As Required
Journal Articles/Conference Papers and Proceedings            As Required

                  Technical Exchange Meetings
Contractor Review Meetings                                    Yearly
Technical Conferences (e.g., A&WMA, Specialty Conferences)    Semiannual

                      Other Deliverables
Mercury Control Cost Data                                     Final

                                       39
<PAGE>

     Task 12. Ash Processing and Sorbent Recycling Options

The purpose of this task is to investigate the recycling of sorbent in TOXECON
IITM. If recycling sorbent is technically feasible, considerable economic
benefit can result. During this task, a quantity of downstream ESP catch
(sorbent mixed with fly ash) will be collected for one day during a long-term
test series at one of the TOXECON IITM test sites. This will provide enough
material to be able to re-inject for at least an 8-hour period. Once the
long-term testing series is completed and the silo is empty of pure sorbent, it
will be filled with the recycle material for injection into the ESP. The
material will be fed at the same normalized sorbent concentration as that
established for the long-term testing. Mass balance calculations show that the
recycle mixture is expected to be slightly more than 50% sorbent content. This
means that the mixture will need to be injected at twice the feed rate as pure
sorbent in order to maintain the same normalized sorbent feed rate as when
feeding pure sorbent. The sorbent silo system is capable of providing this
turndown without significant modifications. Mercury measurements will be taken
upstream and downstream of the ESP using the same equipment that was used for
the long-term testing.

This task will be headed by Rui Afonso of Energy and Environmental Strategies,
an expert in ash processing technology assessment. Mr. Afonso will evaluate the
technical data and perform an economic analysis of recycling.

The budget for this task includes site modifications that will allow hopper
catch from downstream ESP fields to be collected easily. In addition, the budget
includes an allowance for vacuum trucks to remove the recycle material from the
hoppers, and conveying equipment to load the material into the sorbent silo.

     E. DELIVERABLES

There will be a number of reports of different varieties prepared throughout the
project. Depending on the specific report or presentation, test results and data
analysis will be the focus for most. In addition, numerous technical papers will
be generated as a result of the work performed on the project. Again, these will
focus on the technical aspects of the effort (equipment, materials, test
protocols, test results, and data analysis). Equipment design parameters and
economic analysis of mercury control equipment and operation will also be
prepared.

     F. BRIEFINGS AND TECHNICAL PRESENTATIONS

     ADA-ES will prepare  detailed  briefings for presentation to the COR at the
COR's  facility  located  in  Pittsburgh,   Pennsylvania,  or  Morgantown,  West
Virginia. Briefings will cover the plans, progress, and results of the technical
effort.

                                       40
<PAGE>

     In  addition,  ADA-ES  will  provide and  present  technical  papers at the
DOE/NETL  Annual  Contractor's  Review  Meeting to be held at the NETL  facility
located in Pittsburgh, Pennsylvania, or Morgantown, West Virginia.

                                       41
<PAGE>
<TABLE>
<CAPTION>

                                             ATTACHMENT B
                                             ------------

DOE F 4600.2
(10/2001)
(All Other Editions are Obsolete)
                                      U.S. Department of Energy
                               FEDERAL ASSISTANCE REPORTING CHECKLIST

-----------------------------------------------------------------------------------------------------------
<C>                                                <C>
1. Identification Number: DE-FC26-05NT42307        2. Program/Project Title: "Low-Cost
                                                      Options for Moderate Levels of Mercury Control"
-----------------------------------------------------------------------------------------------------------
3. Recipient: ADA-ES, Inc.
-----------------------------------------------------------------------------------------------------------
4. Reporting Requirements:                         Frequency     No. of Copies            Addresses
                                                   --------------------------------------------------------
I. MANAGEMENT REPORTING

  |X| Progress Report                                  Q               2          NETL AAD DOCUMENT CONTROL
  |X| Special Status Report                            A               2                  BLDG. 921
                                                                                  U.S. DEPARTMENT OF ENERGY
                                                                                       NATIONAL ENERGY
II. SCIENTIFIC/TECHNICAL REPORTING *                                               TECHNOLOGY LABORATORY
                                                                                        P.O. BOX 10940
  |X| Final Scientific/Technical Report               FG               1         PITTSBURGH, PA 15236-0940
  |X| Topical Report                                   A               2
  |X| Journal Articles/Conference Papers/Proceedings   A               2
  | | DOE 421.4, Software/Manual
  | | Conference Record

III. FINANCIAL REPORTING

  |X| SF-269 or SF-269A, Financial Status Report
  | | SF-272, Federal Cash Transactions Report       Q, FG             3

IV. CLOSEOUT REPORTING

  |X| DOE F 2050.11, Patent Certification
  |X| NETL F 580.1-9, Property Certificate             FC              3
  | | SF-120, Report of Excess Personal Property       FC              3

V. OTHER REPORTING

  | | NETL F 580.1-8, Annual Report of Property in the Custody of
        Contractors
  | | NETL F 580.1-25, High Risk Property Report
  | | Environmental Compliance Plan
  | | Environmental Monitoring Plan
  | | Environmental Status Report
  | | Other

-----------------------------------------------------------------------------------------------------------
FREQUENCY CODES AND DUE DATES:

     A - As required; see attached text for applicability.
     FG - Final; within ninety (90) calendar days after the project period ends.
     FC - Final - End of Effort.
     Q - Quarterly; within thirty (30) calendar days after end of the calendar quarter or portion thereof.
     S - Semiannually; within thirty (30) calendar days after end of project year and project half-year.
     YF - Yearly; 90 calendar days after the end of project year.
     YP - Yearly Property - due 15 days after period ending 9/30.

-----------------------------------------------------------------------------------------------------------

5. SPECIAL INSTRUCTIONS:

     * ONE PAPER COPY AND ONE ELECTRONIC PDF ELECTRONIC FILE COPY FOR ALL SCIENTIFIC/TECHNICAL REPORTS.
     --------------------------------------------------------------------------------------------------

     The forms identified in the checklist are available at
     www.netl.doe.gov/business/Financial Assistance/forms-fa.html . Alternate
     formats are acceptable provided the contents remain consistent with the form.

-----------------------------------------------------------------------------------------------------------

                                                  42
</TABLE>
<PAGE>

GENERAL INSTRUCTIONS FOR THE PREPARATION AND SUBMISSION OF REPORTS (JULY 2004)
------------------------------------------------------------------------------
The Recipient shall prepare and submit (postage prepaid) the reports indicated
on the "Federal Assistance Reporting Checklist" to:
                            NETL AAD DOCUMENT CONTROL
                                    BLDG. 921
                           U. S. DEPARTMENT OF ENERGY
                      NATIONAL ENERGY TECHNOLOGY LABORATORY
                                 P. O. BOX 10940
                            PITTSBURGH, PA 15236-0940

Failure to follow these instructions can delay data entry of the report(s) into
the FEDERAL INFORMATION TRACKING SYSTEM and result in the report being lost or
considered delinquent.

The level of detail the Recipient provides in the reports shall be commensurate
with the scope and complexity of the effort and shall be as delineated in the
guidelines and instructions contained herein. The prime Recipient shall be
responsible for acquiring data from any contractors or sub recipients and
ensuring that any information submitted is compatible with the requirements of
the DOE.

I.   MANAGEMENT REPORTING
     --------------------

     PROGRESS REPORT
     ---------------

     The Progress Report must provide a concise narrative assessment of the
     status of work and include the following information:

     1.   The DOE award number and name of the recipient.

     2.   The project title and name of the project director/principal
          investigator.

     3.   Date of report and period covered by the report.

     4.   Executive Summary- A well organized summary that highlights the
          important accomplishments and new knowledge realized from the project
          during the reporting period. It should be no less than one page and no
          more than two pages in length, and should be single spaced. This
          summary must be more comprehensive than the traditional "abstract" and
          identify noteworthy advancements in research, design, manufacture or
          commercialization of technology developments. Also, summarize
          important breakthroughs that resolve critical science and technology
          risks or development barriers.

     5.   Results of work during reporting period- A detailed discussion of the
          progress performance. The format will be determined by the DOE Project
          Officer. (This section should not contain any proprietary or
          classified data, or other information not subject to public release.
          If such information is important to reporting progress, follow the
          instructions in the clause entitled "Supplemental Guidelines"
          regarding submission of a separate appendix for this type of
          restricted data.). A suggested format is:

          Approach - this should describe, or reference all experimental,
          analytical and fabrication methods being used for the research and
          development efforts. It should also provide detail about materials and
          equipment being used. Standard methods can be referenced to the
          appropriate literature, where details can be obtained. Equipment
          should be described only if it is not standard, or if information is
          not available through the literature or other reference publications.

                                       43
<PAGE>

          Results and Discussion - It is extremely important that this section
          includes enough relevant data, especially statistical data, to allow
          the project manager to justify the conclusions. With the relevant
          data, explain how the data was interpreted and how it relates to the
          original purpose of the research. Be concise in the discussion on how
          this research effort solved or contributed to solving the original
          problem. When investigation methods and/or procedures are being
          utilized for the first time, they shall be described in detail. This
          description shall contain detailed information on equipment and
          procedures utilized, as well as providing a rationale for their use
          and the accuracy of the method.

          Conclusion - The conclusion should not simply reiterate what was
          already included in the "Results and Discussion" section. It should,
          however, summarize what has already been presented, and include any
          logical implications of how the successes are relevant to technology
          development in the future. This is extremely important, since
          "relevancy" continues to be a criterion of the program.

          This section should not contain any trade secrets, business sensitive
          or classified data, or other information not subject to public
          release. If such information is important to reporting project
          progress, it should be presented in a separate appendix, as requested
          by the DOE Project Officer.

     6.   Milestones that were not met during the reporting period and reasons
          why the established milestones were not met. Explanations should also
          provide an approximate date when the milestone will be met.

     7.   Cost and schedule status. Cost Status - show approved budget by budget
          period and actual costs incurred. If cost sharing is required break
          out by DOE share, awardee share, and total costs. Schedule Status -
          list milestones, anticipated completion dates and actual completion
          dates. Awardees may use project management software, such as Microsoft
          Project, to measure and report cost and schedule status.

     8.   A summary of all of the significant accomplishments during this
          reporting period. An "accomplishment" is a significant development or
          finding that advances the state-of-the-art with respect to the
          technology of interest or significantly contributes to the
          understanding of a concept or technology.

     9.   Actual or anticipated problems or delays and actions taken or planned
          to resolve them. Identify any event causing a significant schedule
          slippage or cost growth; an environmental, safety, or health
          violation; or the achievement of or problems encountered for an
          important performance objective.

     10.  A description of any technology transfer activities accomplished
          during this reporting period. Identify and describe any activities to
          transfer research results or developed technology to other research
          stakeholders or users of the technology.

     SPECIAL STATUS REPORT
     ---------------------

     The recipient must report the following events to the DOE Project Officer
     by e-mail as soon as possible after they occur: The e-mail correspondence
     should include:

                                       44
<PAGE>

     1.   Recipient's name and address;
     2.   Award title and number;
     3.   Date;
     4.   Brief statement of problem or event;
     5.   Anticipated impacts; and
     6.   Corrective action taken or recommended.

     The Special Status Report should document the incidents listed below:

     1.   Developments that have a significant favorable impact on the project.

     2.   Problems, delays, or adverse conditions which materially impair the
          recipient's ability to meet the objectives of the award or which may
          require DOE to respond to questions relating to such events from the
          public The recipient must report any of the following incidents and
          include the anticipated impact and remedial action to be taken to
          correct or resolve the problem/condition:

          a.   Any single fatality or injuries requiring hospitalization of five
               or more individuals.

          b.   Any significant environmental permit violation.

          c.   Any verbal or written Notice of Violation of any Environmental,
               Safety, and Health statutes.

          d.   Any incident which causes a significant process or hazard control
               system failure.

          e.   Any event which is anticipated to cause a significant schedule
               slippage or cost increase.

          f.   Any damage to Government-owned equipment in excess of $50,000.

          g.   Any other incident that has the potential for high visibility in
               the media.

          h.   Any incident which causes a significant process or hazard control
               system failure, or is indicative of one which may lead to any of
               the above defined incidents, is to be reported as soon as
               possible, but within 5 days of discovery.

     When an event results in the need to issue a written or verbal statement to
     the local media, the statement is to be cleared first; if possible, and
     coordinated with NETL Communications and Public Affairs Division, the DOE
     Project Officer and the Contracting Officer.

II.  SCIENTIFIC/TECHNICAL REPORTING
     ------------------------------

     Scientific/Technical Reporting includes: Final Scientific/Technical Report,
     Topical Reports, Journal Articles, Conference Proceedings and Papers,
     Software, and Conference Records.

     FINAL SCIENTIFIC/TECHNICAL REPORT
     ---------------------------------

     The Final Scientific/Technical Report shall document and summarize all work
     performed during the award period in a comprehensive manner. It shall also
     present findings and/or conclusions produced as a consequence of this work.
     This report shall not merely be a compilation of information contained in
     other reports, but shall present that information in an integrated fashion,
     and shall be augmented with findings and conclusions drawn from the
     research as a whole.

                                       45
<PAGE>

     TOPICAL REPORTS
     ---------------

     Topical reports are intended to provide a comprehensive statement of the
     technical results of the work performed for a specific task or subtask of
     the Statement of Project Objectives, or detail significant new scientific
     or technical advances. If required, DOE shall review and approve the report
     outline prior to submission of the report.

     GUIDELINES FOR ORGANIZATION OF FINAL SCIENTIFIC/TECHNICAL AND TOPICAL
     REPORTS
     ---------------------------------------------------------------------

     The following sections should be included (as appropriate) in the final
     scientific/technical report and topical reports in the sequence shown. Any
     section denoted by an asterisk is required in all technical reports.

          TITLE PAGE* - The Title Page of the report itself must contain the
          following information in the following sequence:

               Report Title
               Type of Report (Final Scientific/Technical or Topical)
               Reporting Period Start Date
               Reporting Period End Date
               Principal Author(s)
               Date Report was Issued (Month [spelled out] and Year
               [4 digits])
               DOE Award Number (e.g., DE-FG26-04NT12345) and if
               appropriate, task number
               Name and Address of Submitting Organization (This
               section should also contain the name and address of
               significant subcontractors/sub-recipients
               participating in the production of the report.)

          DISCLAIMER* -- The Disclaimer must follow the title page, and must
          contain the following paragraph:

               "This report was prepared as an account of work sponsored by an
               agency of the United States Government. Neither the United States
               Government nor any agency thereof, nor any of their employees,
               makes any warranty, express or implied, or assumes any legal
               liability or responsibility for the accuracy, completeness, or
               usefulness of any information, apparatus, product, or process
               disclosed, or represents that its use would not infringe
               privately owned rights. Reference herein to any specific
               commercial product, process, or service by trade name, trademark,
               manufacturer, or otherwise does not necessarily constitute or
               imply its endorsement, recommendation, or favoring by the United
               States Government or any agency thereof. The views and opinions
               of authors expressed herein do not necessarily state or reflect
               those of the United States Government or any agency thereof."

          ABSTRACT* - should be a brief, concise summary of the report.

          TABLE OF CONTENTS*

                                       46
<PAGE>

          EXECUTIVE SUMMARY* - this should be a well organized summary that
          highlights the important accomplishments of the research during the
          reporting period. It should be no less than one page and no more than
          two pages in length, and should be single spaced. This summary must be
          more comprehensive than the traditional "abstract."

          REPORT DETAILS - The body of the final scientific/technical or topical
          report should address topics such as the following:

               Experimental methods: Describe, or reference all experimental
               methods being utilized. Also provide detail(s) about materials
               and equipment used. Standard methods should reference the
               appropriate literature, where details can be obtained. Equipment
               should be described only if it is not standard, or if information
               is not available thru the literature or other reference
               publications.

               Results and discussions: This section should include enough
               relevant data, especially statistical data, to allow the project
               manager to justify the conclusions. Explain how the data was
               interpreted and how it relates to the original purpose of the
               research. Be concise in the discussion on how this research
               effort solved or contributed to solving the original problem.

               Conclusion: The conclusion should not simply reiterate what was
               already included in "Results and Discussion" but should summarize
               what has already been presented, and include any logical
               implications of how the successes are relevant to technology
               development in the future. This is extremely important, since
               "relevancy" continues to be a criterion of the program.

          GRAPHICAL MATERIALS LIST(S)
          REFERENCES
          BIBLIOGRAPHY
          LIST OF ACRONYMS AND ABBREVIATIONS
          APPENDICES (IF NECESSARY)

     SUPPLEMENTAL GUIDELINES
     -----------------------

     Technical reporting SHALL NOT include Limited Rights Data (such as
     restricted, proprietary or business sensitive information). Limited Rights
     Data shall be submitted in a separate appendix to the technical report.
     This appendix SHALL NOT be submitted in an electronic format but rather
     submitted in ONE ORIGINAL AND THREE (3) PAPER COPIES along with the paper
     version of the sanitized technical report deliverable. The appendix shall
     not be referenced in or incorporated into the sanitized technical report
     deliverable under the contract. The appendix must be appropriately marked
     and identified. Further, if this award authorizes the awardee under the
     provisions of The Energy Policy Act of 1992 to request protection from
     public disclosure for a limited period of time of certain information
     developed under this award, technical reports SHALL NOT contain such
     Protected EPAct Information. Such information shall be submitted in a
     separate appendix to the technical report that is suitable for release
     after the agreed upon period of protection from public disclosure has
     expired. The appendix shall not be referenced in or incorporated into the
     sanitized technical report deliverable under the contract. In accordance
     with the clause titled "Rights in data--programs covered under special data
     statutes," the appendix must be appropriately marked and identified

     Company Names and Logos -- Except as indicated above, company names, logos,
     or similar material should not be incorporated into reports.

                                       47
<PAGE>

     Copyrighted Material -- Copyrighted material should not be submitted as
     part of a report unless written authorization to use such material is
     received from the copyright owner and is submitted to DOE with the report.

     Measurement Units -- All reports to be delivered under this instrument
     shall use the SI Metric System of Units as the primary units of measure.
     When reporting units in all reports, primary SI units shall be followed by
     their U.S. Customary Equivalents in parentheses ( ). The Recipient shall
     insert the text of this clause, including this paragraph, in all
     subcontracts under this award. Note: SI is an abbreviation for "Le Systeme
     International d'Unites."

     ELECTRONIC MEDIA STANDARD FOR PREPARATION OF TECHNICAL REPORTS
     --------------------------------------------------------------

     PRESENTATION: The Recipient shall submit one quality permanent paper copy
     for storage (permanent or alkaline paper) and an electronic version of each
     technical report in PDF format. ELECTRONIC REPORTS MUST BE SUBMITTED IN THE
     ADOBE ACROBAT PORTABLE DOCUMENT FORMAT (PDF). REPORTS SUBMITTED IN A FORMAT
     OTHER THAN ADOBE WILL BE REJECTED, RETURNED AND CONSIDERED DELINQUENT. The
     report must be one complete integrated file containing all text, tables,
     diagrams, photographs, schematics, graphs, and charts. Multiple files for
     various report segments are unacceptable and will be rejected. The
     electronic file(s) may be submitted on an ISO9660-format CD-ROM.

     FORMAT: The electronic file(s) must be submitted on CD-ROM and labeled as
     follows:

          DOE Award Number
          Type/Frequency of Report(s)
          Reporting Period (if applicable)
          Name of submitting organization
          Name, phone number and fax number of preparer

     JOURNAL ARTICLES, CONFERENCE PAPERS AND PROCEEDINGS GENERATED BY A SMALL
     BUSINESS OR NONPROFIT ORGANIZATION FOR DOE REVIEW
     ------------------------------------------------------------------------

     The Recipient shall submit to DOE for review and approval all documents
     generated by the Recipient, or any subcontractor, which communicate the
     results of scientific or technical work supported by DOE under this award,
     whether or not specifically identified in the award, prior to submission
     for publication, announcement, or presentation. Such documents include
     journal articles, conference papers and proceedings, etc. The Recipient
     shall submit a draft version of the document to the DOE Project Officer
     prior to the publication, presentation, or announcement. The DOE Project
     Officer shall review the draft version of the document and notify the
     Recipient of approval or recommended changes. The final version shall be
     submitted to the NETL AAD Document Control Coordinator.

     The following information shall be provided for conference papers and
     proceedings, etc.

          -- Name of conference
          -- Location of conference (city, state, and country)
          -- Date of conference (month/day/year)
          -- Conference sponsor

                                       48
<PAGE>

III. FINANCIAL REPORTING
     -------------------

     FINANCIAL STATUS REPORT (STANDARD FORM 269 OR 269A)
     ---------------------------------------------------

     This report is used for the Recipient to provide regular periodic
     accounting of project funds expended. The accounting may be on either a
     cash or accrual basis. Actual total expenditures and obligations incurred,
     but not paid, are reported for each reporting period for each major
     activity. Provision is made to identify the Federal and non-Federal share
     of project outlays for each identified activity.

IV.  CLOSEOUT REPORTING
     ------------------

     PATENT CERTIFICATION (DOE F 2050.11)
     ------------------------------------

     This certificate submitted on DOE F 2050.11 is due immediately upon
     completion or termination of the award.

     PROPERTY CERTIFICATE (NETL F 580.1-9)
     -------------------------------------

     This certificate submitted on the NETL F 580.1-9 is due immediately upon
     completion or termination of the award. The recipient must attach to this
     certificate a final/completion inventory of all recipient acquired real
     estate, equipment, and materials/supplies as specified in the appropriate
     10 CFR 600 Financial Assistance Regulation.

V.   OTHER REPORTING - None
     ---------------

                                       49
<PAGE>

                          ATTACHMENT C - BUDGET PAGE(S)
                          -----------------------------

 DOE F 4600.4#              U.S. DEPARTMENT OF ENERGY             OMB Control No
 (09-92)                                                               1910-0400
 Replaces EIA-459CF
  All Other Editions
     Are Obsolete
                      Federal Assistance Budget Information
                         OMB Burden Disclosure Statement
                         -------------------------------

Public reporting burden for this collection of information is estimated to
average 1.87 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Office of Information
Resources Management, AD-241.2 - GTN, Paperwork Reduction Project (1910-0400),
U.S. Department of Energy, 1000 Independence Avenue, S.W., Washington, DC 20585;
and to the Office of Management and Budget (OMB), Paperwork Reduction Project
(1910-0400), Washington, DC 20503.
<TABLE>
<CAPTION>
<C>                                                          <C>
---------------------------------------------------------------------------------------------------------------------------
1. Program/Project Identification No.                        2. Program/Project Title
     DE-FC26-05NT42307                                          "Low-Cost Options for Moderate Levels of Mercury Control"
---------------------------------------------------------------------------------------------------------------------------
3. Name and Address                                          4. Program/Project Start Date
   ADA-ES, Inc.                                                  02/**/05
   8100 SouthPark Way, Unit B                                --------------------------------------------------------------
   Littleton, CO 80120                                       5. Completion Date
                                                                02/**/08
---------------------------------------------------------------------------------------------------------------------------
                                                SECTION A - BUDGET SUMMARY
---------------------------------------------------------------------------------------------------------------------------
Grant Program
 Function or            Federal          Estimated Unobligated Funds                    New or Revised Budget
   Activity           Catalog No.      ------------------------------- ----------------------------------------------------
     (a)                  (b)              Federal       Non-Federal         Federal            Non-Federal        Total
------------------ ------------------- --------------- --------------- -------------------- -------------------- ----------
1.Year 1                81.089                                               $595,189             $203,331        $798,520
2.Year 2                                                                   $1,708,587             $690,720       $2,399,307
3.Year 3                                                                   $1,642,546             $607,537       $2,250,083
4.  TOTALS                                    $               $            $3,946,322           $1,501,588       $5,447,910
---------------------------------------------------------------------------------------------------------------------------

                                               SECTION B - BUDGET CATEGORIES
---------------------------------------------------------------------------------------------------------------------------
6. Object Class Categories      Grant Program, Function or Activity
---------------------------------------------------------------------------------------------------------------------------
                             (1) Year 1         (2) Year 2       (3) Year 3           (4) Year 4       Total (5)
---------------------------------------------------------------------------------------------------------------------------
a.  Personnel                $71,244            $219,849         $198,143             $                $489,236
---------------------------------------------------------------------------------------------------------------------------
b.  Fringe Benefits
    (included in j. below)
---------------------------------------------------------------------------------------------------------------------------
c.  Travel                   36,126             104,083          86,200                                226,409
---------------------------------------------------------------------------------------------------------------------------
d.  Equipment
---------------------------------------------------------------------------------------------------------------------------
e.  Supplies                                    47,100           38,380                                85,480
---------------------------------------------------------------------------------------------------------------------------
f.  Contractual              368,821            730,051          662,350                               1,761,222
---------------------------------------------------------------------------------------------------------------------------
g.  Construction
---------------------------------------------------------------------------------------------------------------------------
h.  Other                    7,322              314,244          327,419                               648,985
---------------------------------------------------------------------------------------------------------------------------
i.  Total Direct Charges     483,513            1,415,327        1,312,492                             3,211,332
---------------------------------------------------------------------------------------------------------------------------
j.  Indirect Charges         315,007            983,980          937,591                               2,236,578
---------------------------------------------------------------------------------------------------------------------------
k.  TOTALS                   $798,520           $2,399,307       $2,250,083           $                $5,447,910
---------------------------------------------------------------------------------------------------------------------------
7.  Program Income           $N/A               $N/A             $N/A                 $N/A             $
---------------------------------------------------------------------------------------------------------------------------

                                                     50
</TABLE>
<PAGE>

                   ATTACHMENT D -- RECIPIENT ACQUIRED PROPERTY
                   -------------------------------------------

DESCRIPTION OF PROPERTY                               ESTIMATED ACQUISITION COST
-----------------------                               --------------------------

EQUIPMENT                                             NONE
(Tangible, nonexpendable personal property
charged directly to the award having a useful
life of more than one year and an acquisition
cost of $5,000 or more per unit.)

                                                                        TOTAL
                                                                      ----------
Non-Expendable Property
-----------------------
   Misc. M&S                                                          $        0
   Sorbent                                                            $        0
   Non-Expendable M&S Through Subcontractors (See Note 1)             $  471,466
   Non-Expendable M&S for ACI Equipment                               $        0
   NORIT Activated Carbon                                             $        0
   Other                                                              $        0

Expendable Materials and Supplies
---------------------------------
   Misc. M&S
      Fittings                                                        $    7,558
      Glassware                                                       $    2,790
      Chemicals                                                       $   38,823
      Tubing, heated lines                                            $   28,824
      Filters                                                         $    7,485
                                                                      ----------
      Subtotal Misc. M&S                                              $   85,480

   Sorbent                                                            $  242,123
   Expendable M&S Through Subcontractors (See Note 2)                 $  159,069
   Expendable M&S for ACI Equipment (See Note 3)                      $   33,300
   NORIT Activated Carbon                                             $   86,382
   Other                                                              $        0

   TOTAL                                                              $1,077,820

----------

Note 1. Misc. pipe fittings, steel, scaffolding, electricals, hardware,
platforms, etc.

Note 2. Misc. tubing, fittings, valves, chemicals, electrical parts, glassware,
hardware, etc.

Note 3. Misc. hardware and upgrade allowance for sorbent injection system.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]