EXHIBIT 10.13





ADVANCED ENGINE TECHNOLOGIES, INC.


STOCK OPTION AGREEMENT





THIS STOCK OPTION AGREEMENT (together with the attached grant notice (the Grant Notice), the
Agreement) is made and entered into as of the date set forth on the Grant Notice by and between Advanced Engine Technologies, Inc., a Colorado corporation (the Company), and the individual (the
Optionee) set forth on the Grant Notice.





A.    Pursuant to the Advanced
Engine Technologies, Inc.2000 Stock Incentive Plan (the Plan), the Administrator has determined that it is to the advantage and best interest of the Company to grant to Optionee an option (the Option) to
purchase the number of shares of the Common Stock of the Company (the Sharesor the Option Shares) set forth on the Grant Notice, at the exercise price determined as provided herein, and in all respects subject
to the terms, definitions and provisions of the Plan, which is incorporated herein by reference.





B.    Unless otherwise defined herein, capitalized terms used in this Agreement shall have the meanings set forth in the Plan.





NOW, THEREFORE, in consideration of the mutual agreements contained herein, the Optionee and the Company hereby agree as follows:





1.  Grant and Terms of Stock Option.





1.1    Grant of Option.    Pursuant to the Grant Notice, the Company has granted to the Optionee the right and option to purchase, subject to the terms
and conditions set forth in the Plan and this Agreement, all or any part of the number of shares of the Common Stock of the Company set forth on the Grant Notice at a purchase price per share equal to the exercise price per Share set forth on the
Grant Notice. This Option is not intended by the Company and Optionee to be an Incentive Stock Option, as defined in Section 422 of the Code. Rather, it is intended to be a Nonqualified Stock Option.





1.2    Vesting and Exercisability.    Subject to the provisions of the Plan and the other
provisions of this Agreement, this Option shall vest and become exercisable in accordance with the schedule set forth in the Grant Notice. Notwithstanding the foregoing, in the event of termination of Optionees Continuous Status as an
Employee, Director or Consultant for any reason, with or without Cause, including as a result of death or Disability, this Option shall immediately cease vesting and shall be cancelled to the extent of the number of Shares as to which this Option
has not vested as of the date of termination.





1.3    Term of
Option.    No portion of this Option may be exercised more than ten years from the date of this Agreement. In the event of termination of Optionees Continuous Status as an Employee, Director or Consultant, this Option
shall be cancelled as to any unvested Shares as provided in Section 1.2, and shall terminate and be cancelled with respect to any vested Shares on the earlier of (i) the expiration of the ten year period set




---

forth in the first sentence of this Section 1.3, or (ii) 30 days after termination of Optionees Continuous Status as an Employee, Director or Consultant (or 6 months in the case of
termination as a result of Optionees Disability or death); provided, however, if Optionees Continuous Status as an Employee, Director or Consultant is terminated for Cause, this entire Option shall be cancelled and terminated as of the
date of such termination and shall no longer be exercisable as to any Shares, whether or not previously vested.





2.  Method
of Exercise.





2.1    Delivery of Notice of Exercise.    This
Option shall be exercisable by written notice in the form attached hereto as Exhibit A which shall state the election to exercise this Option, the number of Shares in respect of which this Option is being exercised, and such other representations
and agreements with respect to such Shares as may be required by the Company pursuant to the provisions of this Agreement and the Plan. Such written notice shall be signed by Optionee (or by Optionees beneficiary or other person entitled to
exercise this Option in the event of Optionees death under the Plan) and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. This Option
shall not be deemed exercised until the Company receives such written notice accompanied by the exercise price and any other applicable terms and conditions of this Agreement are satisfied. This Option may not be exercised for a fraction of a Share.





2.2    Restrictions on Exercise.    No Shares will be issued
pursuant to the exercise of this Option unless and until there shall have been full compliance with all applicable requirements of the Securities Act of 1933, as amended (whether by registration or satisfaction of exemption conditions), all
Applicable Laws, and all applicable listing requirements of any national securities exchange or other market system on which the Common Stock is then listed. As a condition to the exercise of this Option, the Company may require Optionee to make any
representation and warranty to the Company as may be necessary or appropriate, in the judgment of the Administrator, to comply with any Applicable Law.





2.3    Method of Payment.    Payment of the exercise price shall be made in full at the time of exercise in cash or by check payable to the order of the
Company, or, subject in each case to the advance approval of the Administrator in its sole discretion, by delivery of shares of Common Stock already owned by Optionee, by delivery of a full recourse promissory note made by Optionee in favor of the
Company or by any combination of the foregoing. Shares of Common Stock used to satisfy the exercise price of this Option shall be valued at their Fair Market Value determined on the date of exercise (or if such date is not a business day, as of the
close of the business day immediately preceding such date). In addition, the Administrator may impose such other conditions in connection with the delivery of shares of Common Stock in satisfaction of the exercise price as it deems appropriate in
its sole discretion, including without limitation a requirement that the shares of Common Stock delivered have been held by the Optionee for a specified period of time. Any promissory note delivered pursuant to this Section 2.3 shall have terms and
provisions (including, without limitation, those relating to the maturity date, payment schedule and interest rate) as determined by the Administrator in its sole discretion, shall be secured by




---

the Shares acquired and shall comply with all Applicable Laws (including, without limitation, state and federal margin requirements).





3.  Non-Transferability of Option.    This Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding the foregoing, (i) this Option may be assigned pursuant to a qualified domestic relations order as
defined by the Code, and exercised by the spouse of the Optionee who obtained such Option pursuant to such qualified domestic relations order, and (ii) this Option may be assigned, in whole or in part, during the Optionees lifetime to one or
more Family Members of the Optionee. Rights under the assigned portion may be exercised by the Family Member(s) who acquire a proprietary interest in this Option pursuant to the assignment. The terms applicable to the assigned portion shall be the
same as those in effect for this Option immediately before such assignment and shall be set forth in such documents issued to the assignee as the Administrator deems appropriate. Subject to all of the other terms and conditions of this Agreement,
following the death of Optionee, this Option may, to the extent it remained unexercised (but vested and exercisable by Optionee in accordance with its terms) on the date of death, be exercised by Optionees beneficiary or other person entitled
to exercise this Option in the event of Optionees death under the Plan.





|4.  General. |  | 
|------------ |  | 




4.1    Governing Law.    This Agreement shall be governed by and construed under the laws of the state of California applicable to Agreements made and to be performed entirely in
California, without regard to the conflicts of law provisions of California or any other jurisdiction.





4.2    Notices.    Any notice required or permitted under this Agreement shall be given in writing by express courier or by postage prepaid, United States registered or certified mail,
return receipt requested, to the address set forth below or to such other address for a party as that party may designate by 10 days advance written notice to the other parties. Notice shall be effective upon the earlier of receipt or 3 days after
the mailing of such notice.





If to the Company:

Advanced Engine Technologies, Inc.11150 West Olympic Boulevard, Suite 1050Los Angeles, CA 90064-1817Attention: PresidentIf to Optionee, at the address set forth on the Grant Notice.





4.3    Community
Property.    Without prejudice to the actual rights of the spouses as between each other, for all purposes of this Agreement, the Optionee shall be treated as agent and attorney-in-fact for that interest held or claimed by
his or her spouse with respect to this Option and the parties hereto shall act in all matters as if the Optionee was the sole owner of this Option. This appointment is coupled with an interest and is irrevocable.




---

4.4    Modifications.    This Agreement may be amended, altered or
modified only by a writing signed by each of the parties hereto





4.5    Application to
Other Stock.    In the event any capital stock of the Company or any other corporation shall be distributed on, with respect to, or in exchange for shares of Common Stock as a stock dividend, stock split, reclassification or
recapitalization in connection with any merger or reorganization or otherwise, all restrictions, rights and obligations set forth in this Agreement shall apply with respect to such other capital stock to the same extent as they are, or would have
been applicable, to the Option Shares on or with respect to which such other capital stock was distributed.





4.6    Additional Documents.    Each party agrees to execute any and all further documents and writings, and to perform such other actions, which may be or become reasonably necessary or
expedient to be made effective and carry out this Agreement.





4.7    No Third-Party
Benefits.    Except as otherwise expressly provided in this Agreement, none of the provisions of this Agreement shall be for the benefit of, or enforceable by, any third-party beneficiary.





4.8    Successors and Assigns.    Except as provided herein to the contrary, this Agreement shall
be binding upon and inure to the benefit of the parties, their respective successors and permitted assigns.





4.9    No Assignment.    Except as otherwise provided in this Agreement, the Optionee may not assign any of his, her or its rights under this Agreement without the prior written consent
of the Company, which consent may be withheld in its sole discretion. The Company shall be permitted to assign its rights or obligations under this Agreement, but no such assignment shall release the Company of any obligations pursuant to this
Agreement.





4.10    Severability.    The validity, legality or
enforceability of the remainder of this Agreement shall not be affected even if one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable in any respect.





4.11    Equitable Relief.    The Optionee acknowledges that, in the event of a threatened
or actual breach of any of the provisions of this Agreement, damages alone will be an inadequate remedy, and such breach will cause the Company great, immediate and irreparable injury and damage. Accordingly, the Optionee agrees that the Company
shall be entitled to injunctive and other equitable relief, and that such relief shall be in addition to, and not in lieu of, any remedies they may have at law or under this Agreement.





4.12    Arbitration.





4.12.1    General.    Any controversy, dispute, or claim between the parties to this Agreement, including any claim arising out of, in connection with, or in relation to the formation,
interpretation, performance or breach of this Agreement shall be settled exclusively by arbitration, before a single arbitrator, in accordance with this section 4.12 and the then most applicable rules of the American Arbitration Association.
Judgment upon any award rendered by the arbitrator may be entered by any state or federal court having jurisdiction thereof. Such arbitration shall be administered by the American Arbitration




---

Association. Arbitration shall be the exclusive remedy for determining any such dispute, regardless of its nature. Notwithstanding the foregoing, either party may in an appropriate matter apply
to a court pursuant to California Code of Civil Procedure Section 1281.8, or any comparable provision, for provisional relief, including a temporary restraining order or a preliminary injunction, on the ground that the award to which the applicant
may be entitled in arbitration may be rendered ineffectual without provisional relief. Unless mutually agreed by the parties otherwise, any arbitration shall take place in the City of Los Angeles, California.





4.12.2    Selection of Arbitrator.    In the event the parties are unable to agree upon an
arbitrator, the parties shall select a single arbitrator from a list of nine arbitrators drawn by the parties at random from the Independent (or Gold Card) list of retired judges or, at the option of Optionee, from a list of
nine persons (which shall be retired judges or corporate or litigation attorneys experienced in stock options and buy-sell agreements) provided by the office of the American Arbitration Association having jurisdiction over Los Angeles, California.
If the parties are unable to agree upon an arbitrator from the list so drawn, then the parties shall each strike names alternately from the list, with the first to strike being determined by lot. After each party has used four strikes, the remaining
name on the list shall be the arbitrator. If such person is unable to serve for any reason, the parties shall repeat this process until an arbitrator is selected.





4.12.3    Applicability of Arbitration; Remedial Authority.    This agreement to resolve any disputes by binding arbitration
shall extend to claims against any parent, subsidiary or affiliate of each party, and, when acting within such capacity, any officer, director, shareholder, employee or agent of each party, or of any of the above, and shall apply as well to claims
arising out of state and federal statutes and local ordinances as well as to claims arising under the common law. In the event of a dispute subject to this paragraph the parties shall be entitled to reasonable discovery subject to the discretion of
the arbitrator. The remedial authority of the arbitrator (which shall include the right to grant injunctive or other equitable relief) shall be the same as, but no greater than, would be the remedial power of a court having jurisdiction over the
parties and their dispute. The arbitrator shall, upon an appropriate motion, dismiss any claim without an evidentiary hearing if the party bringing the motion establishes that he or it would be entitled to summary judgment if the matter had been
pursued in court litigation. In the event of a conflict between the applicable rules of the American Arbitration Association and these procedures, the provisions of these procedures shall govern.





4.12.4    Fees and Costs.    Any filing or administrative fees shall be borne initially by the party requesting
arbitration. The Company shall be responsible for the costs and fees of the arbitration, unless the Optionee wishes to contribute (up to 50%) of the costs and fees of the arbitration. Notwithstanding the foregoing, the prevailing party in such
arbitration, as determined by the arbitrator, and in any enforcement or other court proceedings, shall be entitled, to the extent permitted by law, to reimbursement from the other party for all of the prevailing partys costs (including but not
limited to the arbitrators compensation), expenses, and attorneys fees.





4.12.5    Award Final and Binding.    The arbitrator shall render an award and written opinion, and the award shall be final and binding upon the parties. If any of the




---

provisions of this paragraph, or of this Agreement, are determined to be unlawful or otherwise unenforceable, in whole or in part, such determination shall not affect the validity of the
remainder of this Agreement, and this Agreement shall be reformed to the extent necessary to carry out its provisions to the greatest extent possible and to insure that the resolution of all conflicts between the parties, including those arising out
of statutory claims, shall be resolved by neutral, binding arbitration. If a court should find that the arbitration provisions of this Agreement are not absolutely binding, then the parties intend any arbitration decision and award to be fully
admissible in evidence in any subsequent action, given great weight by any finder of fact, and treated as determinative to the maximum extent permitted by law.





4.13    Headings.    The section headings in this Agreement are inserted only as a matter of convenience, and in no way define, limit, extend or interpret
the scope of this Agreement or of any particular section.





4.14    Number and
Gender.    Throughout this Agreement, as the context may require, (a) the masculine gender includes the feminine and the neuter gender includes the masculine and the feminine; (b) the singular tense and number includes the
plural, and the plural tense and number includes the singular; (c) the past tense includes the present, and the present tense includes the past; (d) references to parties, sections, paragraphs and exhibits mean the parties, sections, paragraphs and
exhibits of and to this Agreement; and (e) periods of days, weeks or months mean calendar days, weeks or months.





4.15    Counterparts.    This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.





4.16    Complete Agreement.    The
Grant Notice, this Agreement and the Plan constitute the parties entire agreement with respect to the subject matter hereof and supersede all agreements, representations, warranties, statements, promises and understandings, whether oral or
written, with respect to the subject matter hereof.




---




EXHIBIT A


NOTICE OF EXERCISE OF STOCK OPTION





Advanced Engine Technologies, Inc.


11150 West Olympic Boulevard, Suite 1050


Los Angeles, CA 90064-1817


Attn:  President





Ladies and Gentlemen:





The undersigned hereby elects to exercise the option indicated below:





Option Grant Date:





Number of Shares Being
Exercised:


Exercise Price Per Share:


Total Exercise Price:
$


Method of Payment:





Enclosed herewith is payment in full of the total exercise price and a copy of the Grant Notice.





My exact name, current address and social security number for purposes of the stock certificates to be issued and the shareholder list of
the Company are:





Name:Address:Social Security Number:





Sincerely,Dated:(Optionees Signature)




-7-