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                    SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA

                   MODIFICATION TO THE CONTRIBUTION AGREEMENT

                             MODIFICATION NUMBER: M1

THIS MODIFICATION TO THE CONTRIBUTION  AGREEMENT ("The Modification") is made in
triplicate  this 6 day of April,  2004 (the  "Effective  Date")  between  Canada
Foundation for Sustainable Development  Technology,  a corporation without share
capital  incorporated  under the Canada  Corporations  Act Canada  (Canada)  and
continued under the Canada Foundation for Sustainable Development Technology Act
(Canada) (hereinafter referred to as "SDTC") and West Lorne BioOil Co-Generation
Limited  Partnership  a Limited  Partnership  formed  under the laws of Ontario,
Canada (hereinafter referred to as the "Lead Contractor").

WHEREAS  SDTC is a not for  profit  foundation  constituted  for the  purpose of
fostering the  development  and adoption of  technologies  that  contribute to a
sustainable  development technology  infrastructure in Canada by contributing to
the rapid development,  demonstraion and  pre-commercialization of technological
solutions which address climate change and air quality: and

WHEREAS SDTC has entered into an agreement  (the "Funding  Agreement")  with Her
Majesty  the Queen in Right of Canada  represented  by the  Minister  of Natural
Resources and the Minister of the Environment dated March 26, 2001

WHEREAS SDTC and the Lead  Contractor  have entered into a Contribution  through
which  SDTC will  provide  a funding  contribution  for the Lead  Contractor  to
perform the project  entitled "The Erie Flooring BioOil  Cogeneration  Plant" as
described in the  Contribution  Agreement  which has been  assigned the contract
number SDTC-2002-B-448. This Modification will be titled SDTC-2002-B-448-MI

The Contribution Agreement is hereby modified to incorporate the following
change(s)

1. On page 5, the "Master Consortium Agreement" should be defined as:

"... among Dynamotive Energy Systems Corporation,Erie Flooring & Wood Products,
Magellan Aerospace Limited, Ontario Power Generation Inc. and West Lorne Biooil
Co-Generation Limited Partnership."

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SDTC-2002-B-448                                                    CONFIDENTIAL

<PAGE>

                                                                              2

On  page  five  (5) of the  Contribution  Agreement  the  Definition  of  Master
Consortium Agreement is hereby changed from:

"Master  Consortium means the agreement dated February 11, 2004 among Dynamotive
Energy  Systems  Corporation,  Satin  Finish  Hardwood  Flooring  Limited,  Erie
Flooring and Wood Products Ltd. And Magellan Aerospace Corporation.

On  page  five  (5) of the  Contribution  Agreement  the  Definition  of  Master
Consortium Agreement is hereby changed to:

"Master Consortium  Agreement" means the agreement dated February 11, 2004 among
Dynamotive Energy Systems Corporation,  Erie Flooring & Wood Products,  Magellan
Aerospace  Limited,   Ontario  Power  Generation  Inc,  and  West  Lorne  BioOil
Co-Generation Limited Partnership.

IN WITNESS WHEREOF this Modification has been executed by the parties hereto as
of the Effective Date,

                                   Canada Foundation for Sustainable Development
                                   Technology


                                   By:/s/ Greg Graham
                                   ----------------------------------
                                   Name:  Greg Graham
                                   Title: Vice President, Operations

                                   By:/s/ Victoria Sharp
                                   ----------------------------------
                                   Name:  Dr. Victoria Sharp
                                   Title: President and CEO

                                   West Lorne BioOil Co-Generation Limited
                                   Partnership, by its general partner,
                                   DynaMotive Canada Inc.

                                   By:/s/ Richard Lin
                                   ----------------------------------
                                   Name: Richard Lin
                                   Title: Chairman








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SDTC-2002-B-448                                                    CONFIDENTIAL