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CONSULTING AGREEMENT

THIS AGREEMENTis dated for reference the 8th day of
December, 2006.

BETWEEN:

DYNAMOTIVE ENERGY SYSTEMS
CORPORATION 230  1700 West 75th Avenue, Vancouver,
British Columbia V6P 6G2

(the Company)

AND:

DESMOND RADLEIN, PhD.632
Grange Crescent Waterloo, ON N2T 2L9

(the Consultant)

AGREEMENTS

For good and valuable consideration, the receipt and
sufficiency of which each party acknowledges, the parties hereto agree as
follows:

NOW THEREFORE THIS AGREEMENT WITNESSES that, in
consideration of the mutual covenants and agreements herein contained, the
parties hereto mutually agree as follows:

PART 1

APPOINTMENT

1.1                          
The Company appoints the Consultant and the Consultant accepts the appointment
and will be responsible to lead the Companys facility in Waterloo, ON in
respect of the Companys Research and Development initiatives on the Companys
BioOil technology (the Appointment) upon the terms and conditions of this
Agreement and the Consultant agrees to diligently and faithfully carry out and
perform its duties and obligations described in this Agreement.

PART 2

TERM OF AGREEMENT

2.1                          
This Agreement shall have commenced on November 1, 2006 and shall continue until
October 31, 2009. This Agreement is guaranteed for the first three years and can
only be terminated by the Company subject to Part 6 of this Agreement.
Otherwise, this agreement can be terminated with out cause with four months
notice after three years. This Agreement is renewable thereafter, subject to
mutually agreed terms between the Company and the Consultant.

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PART 3

DUTIES OF THE CONSULTANT

3.1                          
In consideration of the Companys payment of the Consultants remuneration, the
Consultant agrees to perform the duties and responsibilities in respect to the
Appointment in accordance with the general directions of the Chief Executive
Officer of the Company.

3.2                          
The Consultant shall provide services to the Company and acknowledges to devote
50% of his time in carrying out his obligations hereunder during the first six
months of this agreement and 75% thereafter. The Company has satisfied itself
that the Consultant is in a position to effectively provide the services
envisaged under this agreement.

PART 4

REMUNERATION

Salary and Bonus

4.1                          
In consideration of the performance by the Consultant of its obligations under
this, Agreement, the Company shall pay to the Consultant a monthly consulting
fee of $10,000 per month during the first six months of this agreement and
subsequently, at $15,000 per month (Base Consulting Fee) payable on the last
working day of the month upon presentation of an invoice. The Consultants
remuneration shall be subject to an annual performance review by the Board of
Directors of the Company.

Stock Options

4.4                          
The Consultant shall be entitled to receive during the term of this contract
600,000 three-year stock options exercisable at US$1.15 per share and shall vest
at 200,000 per year commencing at execution of this agreement and thereon at the
anniversary of the agreement.

PART 5

CONFIDENTIALITY AND WORK PRODUCT

5.1                          
The Confidentiality Agreement (attached as Schedule A) is an integral part of
this Consultancy Agreement and by signing the enclosed duplicate copy of this
Agreement you agree to be bound by all the terms of the Confidentiality
Agreement.

5.2                          
Notwithstanding anything else in this Agreement, it is expressly acknowledged
and understood by the Consultant that all of the work product of the Consultant
while employed by the Company shall belong to the Company absolutely and
notwithstanding the generality of the foregoing, all patents, inventions,
improvements, notes, documents, correspondence produced by the Consultant during
the term of this Agreement hereunder shall be the exclusive property of the
Company. The Consultant further agrees to execute without delay or request for
further consideration any necessary patent assignments, conveyance or other
documents and assurances as may be necessary to transfer all rights to same to
the Company. In the event of the termination of the Consultant for any reason
hereunder, the

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Consultant shall promptly turn over to the Company all of the
foregoing intellectual property which is evidenced by any physical documentation
(whether written, digital, magnetic, electronic or otherwise) or any other of
the Companys assets or property in his possession or under his control.

5.3                          
In the event of termination of this Agreement, the Consultant agrees not to
accept employment with any person, company, partnership or other business
enterprise which is directly competing in any of the Companys businesses at the
time of termination nor will the Consultant otherwise independently compete in
all cases for a period of one year from the date of termination.

PART 6

TERMINATION FOR GOOD CAUSE

Termination for Just Cause and Other Events of Early
Termination

6.1                          
The Company shall be entitled to terminate this Agreement with the Consultant
immediately in the event of good cause. For purposes hereof, good cause shall
mean:

a)       
the death of the Consultant;

b)      
 the physical or mental incapacity of the Consultant and as a result of
which the Consultant is unable to perform his duties under this Agreement for a
period in excess of 90 days;

c)       
the receipt by the Consultant of written notice from the Company terminating
this agreement for just cause where just cause means any of the following
events:

(i) any material or persistent breach
by the Consultant of the terms of this Agreement;

(ii) conviction of a felony or of any
crime involving moral turpitude, fraud or misrepresentation, or money or
property to the Company or any affiliate of the Company,

(iii) a willful failure or refusal by
the Consultant to satisfy his obligations to the Company under this Agreement
including without limitation, specific lawful directives, reasonably consistent
with this Agreement,

(iv) any grossly negligent or willful
conduct of the Consultant that directly results in substantial loss or injury to
the Company;

d)      
 in the event the Consultant does not correct any breach of this Agreement
or any persistent wilful failure or refusal to satisfy the reasonable
requirements of the Company under this Agreement, including specific directives
of the Companys board or its Chief Executive Officer, provided always that the
Consultant shall have a reasonable opportunity to correct any acts or omissions
which are set out in a notice of non-compliance providing the complained of acts
or omissions are reasonably capable of correction.

Effect on Termination under Paragraph 6.1

6.2                          
If the Company terminates the Consultants agreement under paragraph 6.1, then
he is not entitled to receive and the Company will not pay any salary, damages
or other sums as a consequence of the termination except for compensation and
unpaid and reimburseable expenses accrued but unpaid to the effective
termination date.

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PART 7

NOTICE

7.1                          
Any notice required to be given hereunder by any party shall be given or made in
writing and either delivered personally or sent by registered mail, postage
prepaid, addressed to the parties as set out on the first page of this
Agreement, or to such other address at which any of the parties hereto may from
time to time notify the others in writing. The time of giving or making such
notice shall be, if delivered, when delivered, and if mailed, then on the fifth
(5th) business day after the day of mailing thereof.

PART 8

INDEPENDENT CONTRACTOR

8.01                          
Nothing in this Agreement shall create an employment relationship between the
Company and the Consultant and it is hereby understood and agreed that the
Consultant is and will at all times.

PART 9

ASSIGNMENT AND MISCELLANEOUS

9.1                          
Neither party to this Agreement shall be entitled to assign its benefits,
interests or obligations under this Agreement without the written consent of the
other party hereto.

9.2                          
This Agreement, once executed, and along with the documents referenced herein,
constitute the entire understanding between the Company and the Consultant with
respect to the terms and conditions of this Agreement and supersedes all prior
agreements and discussions between the parties.

9.3                          
This Agreement is made in the Province of British Columbia and shall be
enforceable in the courts thereof.

9.4                          
The provisions respecting the Consultants confidentiality obligations transfer
of intellectual property rights and non-competition in § 5 shall survive the
termination of this Agreement.

9.5                          
The headings of this Agreement are inserted for convenience only and shall not
affect the construction of this Agreement.

IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be duly executed and delivered as of the day and year first above
written.

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DYNAMOTIVE ENERGY SYSTEMS CORPORATION

|Per: | */s/ R. Andrew Kingston* |  | Per: | */s/ Richard Lin*   
|---- | ------------------------ |  | ---- | --------------------
|     | Authorized Signatory     |  |      | Authorized Signatory



DESMOND RADLEIN, PhD.

|Per: | */s/ Desmond Radlein, Phd.* | 
|---- | --------------------------- | 
|     | Authorized Signatory        | 

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NON-DISCLOSURE AGREEMENT

THIS AGREEMENT is dated for reference the ________ day
of _________________________, 2006

BETWEEN:

DYNAMOTIVE ENERGY SYSTEMS
CORPORATION, a British Columbia company having a place of business at
230 - 1700 West 75th Avenue, Vancouver, British Columbia, V6P 6G2

(Disclosing Party)

AND:

DESMOND RADLEIN, PhD.,of 632
Grange Crescent, Waterloo, ON N2T 2L9.

(Receiving Party)

WHEREAS:

|A. | the Disclosing Party is in the business of environmental
      and renewable energy technologies;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|B. | the Receiving Party is in the business of
      _________________________________________________________;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|C. | the Disclosing Party and the Receiving Party intend to
      investigate collaborative business opportunities (the
Purpose);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|D. | in order to fulfill the Purpose the Disclosing Party may
      disclose information that is not available to the general public to the
      Receiving Party (the Confidential Information), including without
      limitation, BioOil information, trade secrets, financial, corporate,
      marketing, product, research, technical, manufacturing and/or personnel
      information or any other information, in any form or media, relating to
      the Disclosing Party, its affiliates, associates and/or other related
      entities (collectively Related Entities) and/or to any of their
      respective customers, suppliers and other business partners (collectively
      Business Partners), specifically identified as confidential by the
      Disclosing Party at, or prior to, the time of its disclosure, or the
      nature of which is such that it would generally be considered confidential
      in the industry in which the Disclosing Party operates; and
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|E. | the disclosure of any Confidential Information to third
      parties would cause harm to the Disclosing Party, its Related Entities and
      Business Partners;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the Disclosing Party disclosing Confidential Information to the
Receiving Party and of the covenants and agreements contained in this Agreement,
the parties agree as follows:

|1. | Treatment of Confidential Information The
      Receiving Party covenants that, except as specifically set out in
      paragraph 2, it will deal with any of the Confidential Information which
      it receives or gains access to, in accordance with the terms and
      conditions of this Agreement.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Exclusions The terms and conditions of this
      Agreement shall not apply to any Confidential Information which the
      Receiving Party can establish:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

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| | a) | is, or becomes, readily available to the public other
      than through a breach of the obligations set out in this Agreement;
    or      
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                             
| | b) | was disclosed, lawfully and not in breach of any
      contractual or other legal obligation, to the Receiving Party by a third
      party.

|3. | Ownership of Confidential Information The
      Receiving Party acknowledges that the Confidential Information, including
      all patent rights, trade secrets, copyrights and all other intellectual
      property and proprietary rights related thereto, is and shall be the sole
      and exclusive property of the Disclosing Party, its Related Entities or
      Business Partners as appropriate, and shall be held in trust by the
      Receiving Party for these persons. The Receiving Party acknowledges that
      it shall not acquire any right, title or interest in or to the
      Confidential Information or to any intellectual property or other
      proprietary rights related thereto.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|4. | Disclosure The Receiving Party shall keep all of
      the Confidential Information in strict confidence and shall not, without
      the prior written consent of the Disclosing Party, directly or indirectly,
      disclose, allow access to, transmit, transfer or make available to any
      person, firm, company, consultant, partnership, entity or other party
      (each a Person), for any use whatsoever, any Confidential Information,
      other than to a Person who:                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Notwithstanding the foregoing, to the extent the
      Receiving Party can establish that it is required by law to disclose any
      Confidential Information it shall be permitted to do so, provided that
      notice of the requirement to disclose is first delivered to the Disclosing
      Party at the address set out above in a timely manner, so that the
      Disclosing Party has the opportunity to contest this potential
      disclosure.                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|5. | Use of Confidential Information The Receiving
      Party shall use any Confidential Information disclosed hereunder solely to
      fulfill the Purpose and shall not, either directly or indirectly, use the
      Confidential Information for any other reason or in any other
    manner.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|6. | Reproduction/Security Except as reasonably
      required to fulfill the Purpose, the Receiving Party shall not, either
      directly or indirectly, copy or reproduce Confidential Information in any
      manner or medium. The Receiving Party shall ensure that any such copy of
      Confidential Information is clearly marked, or otherwise identified, as
      confidential and proprietary to the Disclosing Party. The Receiving Party
      shall ensure that all Confidential Information, and all copies thereof,
      are stored in a secure place while in the Receiving Partys possession,
      custody, charge or control.                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|7. | Return of Confidential Information Upon
      fulfilment of the Purpose, or at any time upon request by the Disclosing
      Party, the Receiving Party shall immediately return to the Disclosing
      Party all Confidential Information, and all copies thereof, in the
      Receiving Partys possession, charge, control or custody and shall ensure
      that any third party to which it has disclosed
the                                                                                                                                                                                                                                                                                                 

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|    | Confidential Information does the same. This agreement
      shall survive to the fullest extent and time as permitted by
law.                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|8.  | Equitable Relief The Receiving Party
      acknowledges that a breach of this Agreement will result in irreparable
      and immediate harm to the Disclosing Party and agrees that in the event of
      such a breach, the Disclosing Party shall be entitled to equitable relief
      by way of temporary or permanent injunction and to seek such other relief
      that any court may deem just and proper.                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|9.  | No Representations or Warranties The Receiving
      Party acknowledges and agrees that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|10. | No Obligation Nothing in this Agreement
      obligates the Disclosing Party to make any particular disclosure of
      Confidential Information.                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|11. | Indemnity The Receiving Party shall indemnify
      and hold the Disclosing Party harmless from and against any and all
      claims, suits, losses, damages, costs or expenses, including reasonable
      attorney fees, incurred or suffered by the Disclosing Party as a result of
      the Receiving Party, or its officers, directors, employees or consultants,
      using or disclosing the Confidential Information other than in accordance
      with this Agreement, whether this use or disclosure is done negligently or
      otherwise.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|12. | Governing Law This Agreement shall be governed
      and construed in accordance with the laws in force in the Province of
      British Columbia. The courts of British Columbia shall have non- exclusive
      jurisdiction to hear any matters arising in connection with this
      Agreement.                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|13. | Entire Agreement This Agreement constitutes the
      entire agreement between the parties with respect to the subject matter of
      this Agreement and cancels and supersedes any prior discussions,
      correspondence, understandings, agreements or communication of any nature
      relating to the subject of this Agreement.                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|14. | Assignment This Agreement may not be assigned by
      either party without the prior written consent of the other.                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|15. | Recitals Included The recitals set out in the
      preamble of this Agreement shall be deemed to be included in, and form an
      integral part of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|16. | Term This Agreement is to remain in effect for
      five (5) years after the effective date of execution.                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|17. | Counterparts This Agreement may be executed in
      one or more counterparts each of which when executed by any of the parties
      shall be deemed to be an original, and all such counterparts shall
      together constitute one and the same Agreement. This Agreement may be
      delivered by facsimile transmission by either party to the
  other.                                                                                                                                                                                           

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IN WITNESS WHEREOF the parties have executed this
Agreement:

|DYNAMOTIVE ENERGY SYSTEMS |                                | DESMOND RADLEIN, PhD.
|------------------------- | ------------------------------ | ---------------------
|CORPORATION               |                                |                      
|                          |                                |                      
|Per:                      | */s/
      R. Andrew Kingston* |                      
|                          | Signature                      |                      
|                          |                                |                      
|                          | Andrew Kingston                |                      
|                          | Name                           |                      
|                          |                                |                      
|                          | CEO and President              |                      
|                          | Position                       |                      

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