Mantra Venture Group Ltd.: Exhibit 10.2 - Filed by newsfilecorp.com





 

		Tekion (Canada),
      Inc. 
8602 Commerce Court 
Burnaby, BC V5A 4N6
      
Tel. 604-656-6610 
Fax. 604-656-6620
      
www.tekion.com 



	Statement of Work 	# MAN-S0W-001 



	
      This document comprises Statement of Work #
      MAN-SOW-001 (this “Statement of Work”) made as of July 31, 2012 by
      Tekion (Canada), Inc. (“Company”) and Mantra Energy (“Customer”).
  

	
       

	
      This Statement of Work shall be pursuant to the terms and
      conditions of the Master Services Agreement # MAN-MSA-001, dated
      July 31, 2012, between Company and Customer 

	 


Overview

Mantra’s ERC technology converts CO2  in stack
gases to a formate salt which can then be further processed into formic acid or used to operate a fuel cell to
generate power. Mantra has worked in the past with Kemetco Research to improve
electrode performance and generate operational data using an existing 10 amp
reactor leased from UBC. Mantra has since engaged Powertech Labs to do further
engineering on the system, in particular to explore improvements in cathode
catalyst stability, formate crossover and to generally improve operational
performance. The end result will be a conceptual design for a 100 kg/day system
to be installed and operated at a test site at Lafarge Cement in Richmond,
BC.

In the interests of time and expediency to get this technology
to commercialization, Tekion proposes a program that will run in parallel to the
Powertech program to help ‘divide and conquer’ some of the critical issues faced
by Mantra. These issues include:

	CO2 partial pressure required in the incoming gas stream and
  the resulting conversion and current efficiencies (this will determine whether
  a CO2 concentration step is required to make the process feasible
  in practice)
  
	Resistance to impurities in the incoming gas stream and overall catalyst
  stability
  
	Molarity of exit product and resulting formate crossover issues
  
	Electrical efficiency of the system (operating cost)
  
	Current densities and resulting capital costs 


This proposal outlines how Tekion would participate in this
parallel approach




Work Summary

Stage 1 – Baseline electrode/membrane materials
selection

Working in consultation with Professor Colin Oloman, Tekion
will develop and build a ‘bench-scale’ reactor operating at up to 10 amps
current. This reactor will be designed specifically for ease of
electrode/membrane removal and replacement to facilitate five primary goals:


	 	1. 	
      Identify mechanical design for promoting superior 2-phase
      flow distribution in cathode compartment, and resulting
      gas/liquid/catalyst contact

	 	2. 	
      Identify and test commercial proton exchange membranes
      designed to reduce back-diffusion of anions from cathode to
anode

	 	3. 	
      Screen commercial metal powders for the purpose of
      extending cathode operating lifetime, reducing overpotential, and
      improving current efficiency

	 	4. 	
      Examine direct formic acid production in acidic catholyte
      conditions

	 	5. 	
      If necessary, develop an in-situ cathode regeneration
      process




	Deliverables: 	All collected operational data 
	  	Documented operational procedures 
	  	Interim report at the end of Stage 1 
	  	Reactor design drawing based on conclusions
  
	  	  
	Budgeted Cost: 	$ 49,900 + materials 
	  	  
	Timeline: 	8 weeks 


Stage 2a – Reactor scale-up

Utilizing what is learned from Stage 1, Tekion will build a
reactor sized appropriately to serve as a single cell in a 100 kg/day pilot
plant. Such a cell would most likely have a maximum size of 0.2 m2,
with a capacity of less than 4 kg/day formate/formic acid. This will provide
more information on key reaction engineering and system level variables
including, but not limited to, formate/formic acid crossover, pressure drop, and
temperature effects. The following goals will be key to this stage:

	Improve mechanical design of Stage 1 reactor to promote 2-phase flow
  distribution across larger surface area
  
	Characterize the effects of diluted CO2 feed streams on current
  efficiency at high conversion
  
	Target a minimum 3-5 molar formate/formic acid product stream while
  minimizing formate crossover issues
  
	Maintain electrical efficiency of Stage 1 reactor
  
	If possible, design and test manifolding system for effective distribution
  of gas/liquid phases between individual cells in a future stack 


	Deliverables: 	All collected operational data 
	  	Documented procedures for reactor operation
  
		Interim report at the end of
      Stage 2  
	  	Reactor design drawing based on conclusions
  
	  	Reactor prototype and hardware used for data
      collection 







	Budgeted Cost: 	$ 74,850 + materials 
	 	 
	Timeline: 	12 weeks (parallel with Stages 1, 2b)
  


Stage 2b – Improving catalyst functionality (if
required)

Utilizing what is learned from screening commercial metal
powders in Stage 1, Tekion will synthesize and test novel supported metal-metal
alloys or composite materials in order to improve baseline performance in the
following areas:

	Extend cathode operating times to an approximate 5000 hour target
  
	Reduce cathode overpotentials by increasing catalytic surface area
  
	Improve formate/formic acid current efficiencies in non-ideal conditions
  (ex. low pH, low CO2 partial pressure) 


	Deliverables: 	All collected operational data 
	  	Synthesis methods and procedures 
	  	Interim report at the end of Stage 2 
	  	  
	Budgeted Cost: 	$ 62,375 + materials 
	  	  
	Timeline: 	10 weeks (parallel with Stage 2a)



Stage 3 – Single cell characterization

Utilizing what is learned in Stages 2a and 2b, build and
operate a single cell reactor using the best known mechanical design and
materials for the anticipated operating conditions of the 100 kg/day pilot
plant. Final performance metrics include cell current and voltage,
formate/formic acid current efficiency, CO2 conversion per pass, and
outlet formate/formic acid concentration.

	Deliverables: 	All collected operational data 
	  	Documented procedures for reactor operation
  
	  	Interim report at the end of
      Stage 3 
	  	Reactor design drawing based on conclusions
  
	  	Reactor prototype and hardware used for data
      collection 
	  	  
	Budgeted Cost: 	$ 49,900 + materials 
	  	  
	Timeline: 	4 weeks 






Stage 4 – Conceptual 100 kg/day pilot plant design

Work closely with Powertech to transfer the knowledge learned
in this program to be utilized in Powertech’s effort to complete task 1.5 in the
Powertech proposal. The resulting conceptual design should be sufficient to
begin construction of the 100 kg/day demonstration unit for the Lafarge site

	Deliverables: 	All information required to assist Powertech’s
      design 
	 	 
	Budgeted Cost: 	$ 24,950 + materials 
	 	 
	Timeline: 	4 weeks 


Schedule 





Cost Schedule

Mantra will be billed on a monthly basis for time and materials
– the chart below provides a guideline for projected monthly labour costs. We
will seek Mantra approvals for any major material purchases

There will be a monthly review with Mantra management to ensure
the project is heading in the right direction and to plan the
manpower/activities for the following month. These reviews will take place early
in the final week of each month

Tekion will require an upfront payment of $50,000 payable on
the signing of the SOW


	Staff 
	Hourly Rate 
	       Monthly
      Estimated 
	       Hours 	Cost 
	Sean Huff 	$ 150 	       67 	$10,050 
	Shizhong Duan 	$ 150 	       55 	$ 8,250 
	Cesika Haligva 	$ 125 	       42 	$ 5,250 
	Jonathan Cantilep 	$ 125 	       55 	$ 6,875 
	Gener Pereyra 	$ 100 	       42 	$ 4,200 
	Gerry Yaris 	$ 100 	       84 	$ 8,400 
	Priyantha Wimalaratne 	$ 125 	       55 	$ 6,875 
	  	  	Total: 	$ 49,900 







Terms & Conditions 

As per Master Services Agreement MAN-MSA-001 signed and dated
July 31, 2012

Intellectual Property

	All work product and associated IP for this project will
      belong to Mantra Energy 
	 


To show their agreement to these terms, Company and Customer
acting through their authorized representatives, have signed and delivered this
Statement of Work on the dates specified below.

	Tekion (Canada),
      Inc. 	 	Mantra
      Energy 
	Company 	 	Customer 
	  	 	  
	  	 	  
	/s/ Neil
      Huff 	 	/s/
      Larry Kristof 
	Signature 	 	Signature 
	  	 	  
	  	 	  
	  	 	  
	Neil Huff 	 	Larry
      Kristof 
	Name 	 	Name 
	  	 	  
	  	 	  
	  	 	  
	President &
      CEO 	 	President & CEO 
	Title 	 	Title 
	  	 	  
	  	 	  
	  	 	  
	July 31, 2012 	 	July
      31, 2012 
	Date 	 	Date