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| The      Parties:       | Clean      Power Technology, Inc. and its subsidiaries and The University of      Sussex                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mutual      Exclusivity | During      the term of this Agreement and the Collaboration Agreement, Sussex shall      deal exclusively with CPTI to further develop the HYSTOR project and shall      assist it to take further the knowledge gained under the HYSTOR project,      including making its personnel reasonably available to work with      CPTI.Neither      Party shall, for the term of this Agreement, have any other collaborative      agreement for the HYSTOR project or any prototype or production version of      the system or product (the “Product”) or aid third      parties in the manufacture, marketing or sale of Product without the      express written permission of the otherParty. |

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| Patent      Responsibility                                                           | CPTI      shall have the exclusive right to and be solely responsible for filing and      prosecuting, at its sole expense, territorial applications based upon the      WIPO Application in Japan, the United State, Canada, and the European      Union (“Territorial      Applications”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Patent      Application Assignment and Assistance                                    | Sussex      shall assign the WIPO Application to CPTI for all purposes and shall      execute such documents and provide such assistance as are reasonably      required to permit CPTI to file and prosecute the Territorial      Applications, including, without limitation, the assignment document      appended hereto and made a part hereof as Exhibit A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Collaboration      Under this Letter of Intent                                       | 1.      The Parties shall share and take further the knowledge gained under the      HYSTOR project and the knowledge gained as the result of the independent      work done by CPTI.2.      The Parties shall use best efforts to secure additional funding to permit      the collaboration to go forward (“Collaborative      Project”).  The Parties agree that a typical model for      such funding may include Sussex securing a fifty (50%) percent public      funding grant for a shared project with CPTI or such other entity as it      may designate providing the additional fifty (50%) percent in cash or in      kind.  The Parties acknowledge and agree that Sussex does not      currently have funding to permit it to permit the collaboration to go      forward.  The Parties further acknowledge and agree that CPTI is      not required at this time to provide funding for the collaboration to go      forward. The Parties further agree that inasmuch as funding is not      currently available and may take time to obtain, neither Party is      obligated to engage in any collaborative activity, except as set forth in      Paragraph 1 above, until such funding is available. |
| Collaboration  Agreement                                                   | The      Parties shall enter into a Collaboration Agreement which, when executed,      shall supersede this Binding Letter of Intent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Ownership      of Intellectual Property Developed Under Collaboration      Agreement | In      the event that any additional or new intellectual property is produced as      the result of the Collaboration Agreement (“Collaboration IP”), then      the Collaboration IP shall be assigned jointly and severally to the      Parties, or to such entity as either of them may designate. The Parties      shall jointly determine the exploitation and commercialization of the      Collaboration IP and shall share in the proceeds therefrom in accordance      with the percentage of the funding contributed by each Party to the      development, protection and commercialization of the Collaboration      IP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| Collaboration      Term and Termination | The      term of the Collaboration Agreement shall be three (3) years (“Term”).  The      Collaboration Agreement may be extended for an additional Term by mutual      consent of the Parties.In      the event that no Collaborative Project is commenced during the Term, or      the Parties mutually agree to terminate the Collaboration Agreement, then      CPTI shall pay Sussex a fee in the amount of £15,000 for the      Patent  Application Assignment (“Assignment Fee”) set      forth above.  CPTI shall receive a credit as against the      Assignment Fee for all funds expended by CPTI in filing or prosecuting the      WIPO Application or the Territorial Applications.In      the event that a Collaboration Project is commenced within the Term and      the WIPO Application or any of the Territorial Applications matures into a      patent and are licensed or otherwise exploited with regard to third      parties (“Licenses”), then Sussex      shall receive a royalty equal to 5% of the net profits received from any      such Licenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Miscellaneous                           | This      Letter of Intent shall be governed by the laws of the State of New York,      without giving effect to the principles of choice of law      thereof.  The parties each waive any right to trial by jury in      any action, claim, suit, or proceeding with respect to this      engagement.  Any dispute involving this Letter of Intent shall      be resolved pursuant to the commercial dispute resolution rules of the      American Arbitration Association in New York, New York, before a single      arbitrator, with each party to bear its own costs and fees, including      legal fees. In no event shall exemplary, consequential or punitive damages      be available to either party. This Letter of Intent may not be modified or      amended except in writing signed by both of the parties      hereto.  This Letter of Intent supersedes all other agreements,      understandings, and commitments between the parties, whether written or      oral.  It is specifically agreed that neither party’s employees,      agents, or subcontractors shall be deemed employees, associates, agents or      subcontractors of the other party.  Further, this Agreement does      not create an agency relationship or evidence a partnership or joint      venture between CPTI and Sussex. Until      such time as the parties execute Final Transaction Documents in connection      with the Sales Relationship, this Letter of Intent shall govern the      dealings of the parties in connection with the subject matter of this      Agreement.  |
| Confidentiality                         | The      dealings of the Parties in connection with matters involving this Letter      of Intent shall be maintained in confidence and shall not be disclosed to      any third party other than those persons who are assisting in the      preparation of the Transaction Documents, or other consultants and      advisors to each of the Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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| Clean      Power Technology, Inc. | By:     Abdul Mitha                 Title:   President                 |
|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The      University of Sussex     | By:      Dr. Ian M. Carter        Title:        Director of Research & Enterprise |
| Dated:                            | March      13, 2009Effective      Date                                                                                                                                |

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