Exhibit 10.35


April 12, 2001


VIA E-MAIL


Mr. Jeffrey D. Wilson
TSET, Inc.
Two Centerpointe Drive, Suite 580
Lake Oswego, OR 97035

Dear Jeff:

        Over the past eight months, Rich Tusing and I have provided TSET and its
subsidiaries tremendous value. During this time we have focused on ways to
improve the long-term prospects and market value of TSET. Our efforts have
culminated in the development and on-going execution of a detailed business plan
for Kronos Air Technologies, the development of a comprehensive intellectual
property strategy, the operating review and subsequent disposition of Atomic
Soccer, the assumption of active operating roles in TSET and Kronos Air
Technologies, among other things.

        Despite our efforts, TSET has not been able to full fill its financial
obligations to us in a timely fashion. Therefore, I respectfully request that
the stock option strike price under the consulting contracts for Daniel R.
Dwight and Richard F. Tusing dated August 2, 2000 and the consulting contract
for Dwight, Tusing & Associates dated January 1, 2001 be revised. The stock
option exercise price should be set to the closing stock price of TSET on today,
April 12, 2001.

        Please indicate your agreement with these contractual changes by
printing, signing and dating this letter below. Copies should be provided to
Richard Tusing and myself.

Best regards,
Daniel R. Dwight



/s/ Jeffrey D. Wilson                         4/12/01
--------------------------                  ------------
Jeffrey D. Wilson
Chairman and Chief Executive Officer


cc:     Richard F. Tusing