ex1006.htm - Generated by SEC Publisher for SEC Filing









August 24, 2009

Mr. Meetesh Patel - President 

New Energy Technologies, Inc. 

3905 National Drive 

Suite 110 

Burtonsville MD 20866

Subject: Phase III Development and Testing of the 1st Motion Power Product 

Dear Mr. Patel;

This letter outlines our proposal for continued engineering services to develop the next prototype for the Motion Power System.

WORK CONTINUATION AND SCOPE:

The results were promising based on the side mount flywheel trial. The next version will use this with along with a speed bump profile.


		1. 5-20 mpg for "Speed Humps"



It will take —3 men to expeditiously develop the 1St "Product".

1. Electrical/Electronic Development of the next motor and flywheel approach 

    a. Expected to be 3 weeks 

    b. Man Power Cost $3300.00 per week or less depending on actual man power required.

2. Mechanical Development 

    a. Expected to be 8-10 weeks 

    b. Man Power Cost $2600.00 per week or less depending on actual man power required.

3. Manufacturing Costs for the NEXT stage Motion Power Product — $15,000.00.

	Total costs for this design phase: not to exceed $50,000.00 
	This does not include the demonstration efforts to support all promotional work and travel for BK, Holiday Inn, and The Four Seasons.






	Expected time to complete this next phase prototype: 10 weeks after receipt of your release.


 


	Turning Smart Ideas into Product Solutions






	1



43 Commerce Street, Springfield * New Jersey 07081 USA

Tel: 973-912-7922 * email: info@sigmadesign.net, www.sigmadesign.net




 



	 	DELIVERABLES:



	3D CAD Models

	Simulation Model

	Parts list

	Manufactured 1st Product Prototype

	Tests to confirm mechanical operation 


In the future to develop optimized efficiency and power capture (with better costs as compared to existing PV solutions) we may need a specialized generator and capture circuit. Areas of concern include the efficient development of the electronic system components: 


	 	Develop an electrical hardware specification 

Develop a software specification 

Develop efficient power circuits for connecting the generator to the grid/load Efficient generator modeling and selection

Efficient Electrical energy storage

Efficient Inversion from DC to AC power



This may not be required but if so it has a budgetary cost estimate of > $50,000.00.

The above schedule will be reviewed and updated on a bi-weekly basis. We would expect and welcome visits to our location anytime during the project.

Of course we will only invoice for the actual work performed and these estimates may change as we encounter challenges not foreseen as of this moment. When this happens we will update the estimate before starting any next stages.

Additional engineering analysis and design work approved by New Energy Technologies to support this program beyond the above scope will be charged at our normal rates.

Please contact me directly if you have any questions. We look forward to working with you on this project.


		
	
Sincerely,

/s/ Gerard J. Lynch, P.E.

	
Date: August 25, 2009


	
Gerard J. Lynch, P.E.

President Sigma Design Company

	
Accepted /s/Meetesh Patel

           Meetesh Patel,

           New Energy Technologies





 


	Turning Smart Ideas into Product Solutions




	2



43 Commerce Street, Springfield * New Jersey 07081 USA

Tel: 973-912-7922 * email: info@sigmadesign.net, www.sigmadesign.net