----

----

----

----

| (1)   | Quentin      King of Unit 4 E Plan Industrial Estate, New Road, Newhaven, East Sussex,      BN9 0EH (Owner). |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (2)   | Clean      Power Technologies Limited incorporated and registered in England and      Wales with company number 5812360 whose registered office is at Wiston      House, 1 Wiston Avenue, Worthing, West Sussex, BN14 7QL (Buyer). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | The Owner owns the property Unit 8 E Plan Industrial Estate,      Newhaven and has agreed to grant the Buyer an option to buy it in      accordance with the terms of thisagreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Interpretation |
|----------------|----------------|

| 1.1   | The      definitions in this clause apply in this  agreement. |
|-----------------|---------------------------------------------------------------|

----

|   | 1. | the      price stated in the Independent Valuation (exclusive of    VAT) |
|--------|----|--------------------------------------------------------------------------|

|   | 2. | £425,000      (exclusive of VAT) |
|--------|----|---------------------------------------|

| 1.2   | The      rules of interpretation in this clause apply in this      agreement. |
|-----------------|-------------------------------------------------------------------------------|

| 1.3   | Clause      and Schedule headings do not affect the interpretation of this      agreement. |
|-----------------|--------------------------------------------------------------------------------------------|

| 1.4   | Except      where a contrary intention appears, a reference to a clause or a Schedule      is a reference to a clause of, or Schedule to this    agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5   | Unless      otherwise specified, a reference to a law is a reference to it as it is in      force for the time being taking account of any amendment, extension,      application or re-enactment and includes any subordinate legislation for      the time being in force made underit. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6   | A      person includes a      corporate or unincorporated body. |
|-----------------|-----------------------------------------------------------------|

| 1.7   | Writing or written includes faxes      but not e-mail. |
|-----------------|--------------------------------------------------------|

| 1.8   | Any      obligation in this agreement on a person not to do something includes an      obligation not to agree or allow that thing to be  done. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9   | Any      reference to the Owner includes its      successors in title. |
|-----------------|------------------------------------------------------------------------|

| 2.   | Option |
|----------------|--------|

| 2.1   | On      the date of this agreement the Buyer will pay the Option Sum to the      Owner. |
|-----------------|-----------------------------------------------------------------------------------------|

----

| 2.2   | The      Owner grants the Buyer an option during the Option Period to buy the      Property at the Purchase Price. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| 2.3   | If      the Property is charged, the Owner will supply written evidence to the      Buyer that the chargee has consented to the grant of the Option and that,      in exercising any power of sale or disposal under the charge, such      transaction will be subject to theOption. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4   | The      Owner consents to the entry of an agreed notice against the Owner's title      to the Property at HM Land Registry in order to protect this option      agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Title deduction |
|----------------|-----------------|

| 3.1   | The      Owner's title to the Property has been deduced to the Buyer before the      date of this agreement |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| 4.   | Exercise of theoption |
|----------------|-----------------------|

| 4.1   | The      Buyer may at any time within the period from the date hereof until the 18      month anniversary of this agreement (inclusive) by notice in writing      require the Owner at the Buyer’s cost (which costs the Owner shall be      entitled to receive in advance) to obtain an Independent Valuation and the      Owner shall within 28 days of the Buyer serving this notice on the Owner      obtain an Independent Valuation. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2   | The      Buyer shall permit the Owner and the Independent Surveyor access to the      Property for the purposes of carrying out the Independent      Valuation. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3   | The      Buyer may exercise the Option at any time during the Option Period by      serving an Option Notice on theOwner. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| 4.4   | On      the date of the exercise of the Option, the Buyer will pay the Deposit to      the Owner's Conveyancer as stakeholder on terms that on completion the      Deposit is paid to the Owner and that the accrued interest is paid to the      Buyer. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Title guarantee |
|----------------|-----------------|

| 5.1   | If      the Option is exercised in accordance with the terms of this agreement the      Owner will sell the Property to the Buyer for the Purchase      Price. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | The Owner will sell the Property with full title      guarantee. |
|-----------------|------------------------------------------------------------------|

----

| 6.   | Default |
|----------------|---------|

| 6.1   | If      the Owner fails to comply with any deadline in this agreement the relevant      time period shall be extended until such time as the Owner has complied      with his obligations.  Such extension shall not prejudice any      rights or remedies of the Buyer. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Conditions |
|----------------|------------|

| 7.1   | Upon      exercise of the Option, the Part 1 Conditions will be incorporated into      this agreement in so far as they: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (a)   | apply      to a sale by private treaty; |
|-----------------|-----------------------------------------|

| (b)   | relate      to freehold property; |
|-----------------|-----------------------------------|

| (c)   | are      not inconsistent with the other clauses in this agreement;    and |
|-----------------|----------------------------------------------------------------------------|

| (d)   | have      not been modified or excluded by any of the other clauses in this      agreement. |
|-----------------|---------------------------------------------------------------------------------------------|

| 7.2   | Upon      exercise of the Option, the Part 2 Conditions will not be incorporated      into this agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| 7.3   | The      following Conditions will notapply: |
|-----------------|----------------------------------------------|

| (a)   | Conditions      1.1.4(a), 1.3, 1.4.3 |
|-----------------|--------------------------------------|

| (b)   | Condition      2.2; |
|-----------------|---------------------|

| (c)   | Conditions      3.1.4 and 3.3; |
|-----------------|--------------------------------|

| (d)   | Conditions  6.6.2; |
|-----------------|------------------------------|

| 8.   | Vacant possession |
|----------------|-------------------|

| 9.   | Completion |
|----------------|------------|

| 9.1   | Completion      will take place on the CompletionDate. |
|-----------------|--------------------------------------------------------|

| 9.2   | On      completion the Buyer will pay the balance of the Purchase Price to the      Owner. |
|-----------------|--------------------------------------------------------------------------------------------|

| 10.   | VAT |
|-----------------|-----|

| 10.1   | Each      amount stated to be payable by the Buyer to the Owner under or pursuant to      this agreement is exclusive of VAT (ifany). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.2   | If      any VAT is chargeable on any supply made by the Owner under or pursuant to      this agreement, the Buyer will pay the Owner an amount equal to that VAT,      subject to the Owner supplying the Buyer with a VAT invoice at the time of      payment. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Notices |
|-----------------|---------|

| 11.1   | Any      notice (including the Option Notice) given under this agreement must be in      writing and signed by or on behalf of the party giving  it. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2   | Any      notice or document to be given or delivered under this agreement must be      given by delivering it personally or sending it by pre-paid recorded      delivery to the address and for the attention of the relevant party as      follows: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      the Owner at: Unit 4 E-Plan Industrial Estate New Road Newhaven BN9      0EH |
|-----------------|--------------------------------------------------------------------------------------|

| (b)   | to      the Buyer at: |
|-----------------|-----------------------|

| 11.3   | Any      such notice will be deemed to have been  received: |
|------------------|-------------------------------------------------------------|

| (a)   | if      delivered personally, at the time ofdelivery; |
|-----------------|-------------------------------------------------------|

| (b)   | in      the case of pre-paid first class post or recorded delivery, on the second      Working Day after posting. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| 11.4   | In      proving service it will be sufficient to prove that delivery was made or      that the envelope containing the notice was properly addressed and posted      as a prepaid first class or recorded delivery letter or that the fax      message was properly addressed and transmitted, as the case may      be. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5   | A      notice given or document delivered under this agreement will not be      validly given or delivered if sent bye-mail |
|------------------|-----------------------------------------------------------------------------------------------------------------------------|

----

| 12.   | Rights of thirdparties |
|-----------------|------------------------|

| 13.   | Disputes |
|-----------------|----------|

----

|   | Witness      signature: /s/      Mark Poulton |
|--------|-----------------------------------------------|

|   | Name:      Mark Poulton |
|--------|-------------------------|

|   | Address:      28-30 Hyde Gardens |
|--------|----------------------------------|

|   | Eastbourne,      BN21 4PX  UK |
|--------|-----------------------------------------|

|   | Occupation:      Solicitor |
|--------|----------------------------|

----