Document:

<PAGE>

                                EXHIBIT 10.17

                              Dieter Bakic Stock
                              Purchase Agreement

<PAGE>

                       COMMON STOCK PURCHASE AGREEMENT

     THIS COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is effective as
of January 14, 2000, by and between Hydrogen Burner Technology, Inc., a
California corporation (the "Company"), and Dieter Bakic, an individual
("Purchaser").

     As consideration for the mutual covenants and agreements contained
herein, the Company and Purchaser hereby agree as follows:

     1.   PURCHASE AND SALE OF THE SHARES. Subject to the terms and
conditions of this Agreement, the Company hereby agrees to sell to Purchaser,
and Purchaser hereby agrees to purchase from the Company at the Closing (as
defined in Section 2 of this Agreement), Eighty Thousand (80,000) shares of
the Company's Common Stock (the "Shares") at a price of $5.00 per Share (the
"Purchase Price"), for an aggregate purchase price of Four Hundred Thousand
Dollars ($400,000) (the "Aggregate Purchase Price").

     2.   CLOSING. The purchase and sale of the Shares shall occur at a
closing (the "Closing") to be held at a time to be mutually agreed on by the
Company and Purchaser but not later than January 30, 2000. At the Closing,
Purchaser shall deliver to the Company an amount equal to the Aggregate
Purchase Price by wire transfer (in immediately available funds) to an
account designated by the Company. As soon as reasonably practicable after
the Closing and after confirmation of receipt of the Aggregate Purchase
Price, the Company shall issue a stock certificate representing the Shares
registered in the name of Purchaser and shall deliver such stock certificate
to Purchaser at the Purchaser's principal residence (or such other location
that Purchaser may designate) in the country of Great Britain.

     3.   REPRESENTATIONS AND WARRANTIES OF PURCHASER. In connection with
Purchaser's purchase of the Shares, Purchaser hereby represents and warrants
to the Company as follows:

          3.1  AUTHORIZATION. Purchaser has full power and authority to enter
into this Agreement, and this Agreement, when executed and delivered, will
constitute a valid and legally binding obligation of Purchaser.

          3.2  INVESTMENT INTENT; CAPACITY TO PROTECT INTERESTS. Purchaser is
purchasing the Shares solely for Purchaser's own account for investment and
not with a view to or for sale in connection with any distribution of the
Shares or any portion of the Shares and not with any present intention of
selling, offering to sell, granting any participation in or otherwise
disposing of or distributing the Shares or

<PAGE>

any portion of the Shares in any transaction other than a transaction exempt
from the registration requirements of the Securities Act of 1933, as amended
(the "Securities Act"). The entire legal and beneficial interest of the
Shares is being purchased by Purchaser and shall be held for Purchaser's
account only and neither in whole or in part for any other person. By
executing this Agreement, Purchaser further represents that Purchaser does
not have any contract, undertaking, agreement or arrangement with any person
to sell, transfer or grant any participation to such person or to any third
person, with respect to any of the Shares.

          3.3  RELIANCE ON PURCHASER'S REPRESENTATIONS. Purchaser understands
that the Shares are not registered under the Securities Act on the ground
that the sale provided for in this Agreement and the issuance of securities
under this Agreement is exempt from the registration requirements of the
Securities Act pursuant to Regulation S promulgated under the Securities Act
("Regulation S"). Purchaser understands that the Company's reliance on such
exemption is predicated on the Purchaser's representations that are set forth
in this Agreement and the Certificate of Non-U.S. Person attached hereto as
Exhibit A, Purchaser understands that the basis for such exemption may not be
present if, notwithstanding such representations, Purchaser has in mind
merely acquiring the Shares for a fixed or determinable time in the future,
or for a market rise, or for sale if the market does not rise. Purchaser has
no such intention.

          3.4  RESIDENCE. Purchaser's principal residence is as set forth on
the signature page of this Agreement. Purchaser is not a U.S. Person, as such
terms is defined under Regulation S and has completed a Certificate of
Non-U.S. Person in the form attached to this Agreement as Exhibit A. The
Certificate of Non-U.S. Person is incorporated herein by reference in its
entirety and made a part of this Agreement as if fully set forth herein.
Purchaser acknowledges and understands that, in addition to all other
representations set forth in this Agreement, the Company's reliance on the
exemptions described under Section 3.3 of this Agreement is predicated on the
representations, warranties and certification set forth in the Certificate of
Non-U.S. Person.

          3.5  INFORMATION CONCERNING THE COMPANY.  Purchaser has heretofore
discussed the Company and its plans, operations and financial condition with
the Company's officers, knows that the Company is a speculative business and
has heretofore received all such information as Purchaser has deemed
necessary and appropriate to enable Purchaser to evaluate the financial risk
inherent in making an investment in the Shares, and Purchaser has received
satisfactory and complete information about the business and financial
condition of the Company in response to all inquiries in respect thereof.
Purchaser has had the opportunity to ask questions and receive answers from
the Company regarding

                                        2

<PAGE>

the terms and conditions of the offering of the Shares and the business,
properties, prospects and financial condition of the Company and to obtain
additional information (to the extent the Company possessed such information
or could acquire it without unreasonable effort or expense) necessary to
verify the accuracy of any information furnished to Purchaser or to which
Purchaser had access.

           3.6  NO PUBLIC MARKET. Purchaser understands that no public market
now exists for any of the Shares and that there is no assurance that a public
market ever will exist for the Shares.

           3.7  ECONOMIC RISK. Purchaser understands that the purchase of the
Shares will be a highly-speculative investment and involves a high degree of
risk, and Purchaser is able, without impairing Purchaser's financial
condition, to hold the Shares for an indefinite time and to suffer a complete
loss of Purchaser's investment.

           3.8  OFFSHORE TRANSACTION. Purchaser understands and acknowledges
that:

                (a)    The purchase and sale of the Shares under this
Agreement is permissible only if the Shares are offered and sold outside the
United States to a person located outside the United States, who is not a
U.S. Person and who is not purchasing for the benefit or the account of a
U.S. Person (as defined below) (a "Non-U.S. Person"). Whenever used in this
Agreement, the terms "United States" and "U.S. Person" shall have the
meanings given to them under Rule 902(k) and Rule 902(l) of Regulation S
under the Securities Act, a recitation of which is set forth in the
Certificate of Non-U.S. Person.

                (b)    Neither the offer nor sale of the Shares to Purchaser
under this Agreement was accomplished by means of advertising in any
publication or by means of "directed selling efforts" in the United States,
as such term is defined under Rule 902(c) of Regulation S under the
Securities Act. A recitation of Rule 902(c) is set forth in the Certificate
of Non-U.S. Person.

                (c)    None of the transactions contemplated herein,
including the offer and sale of the Shares to Purchaser, were consummated in
the United States.

                (d)    With respect to the transactions contemplated in this
Agreement and at all times contemplated herein, Purchaser was and continues
to remain located outside the United States.

                                       3
<PAGE>

           3.9  RESTRICTED SECURITIES. Purchaser understands and acknowledges
that:

                (a)    The sale of the Shares has not been registered under
the Securities Act, the Shares must be held indefinitely unless subsequently
registered under the Securities Act or an exemption from the registration
requirements of the Securities Act is available (such as Rule 144 under the
Securities Act), and the Company is under no obligation to register the
Shares;

                (b)    The Shares are "restricted" securities within the
meaning of Rule 144 and will be stamped with the legends specified in Section
7 of this Agreement;

                (c)    Without limiting the acknowledgment set forth in
subpart (a) of this Section 3.9, before the expiration of the period
commencing on the date of Closing and ending one year thereafter (the
"Restricted Period"):

                       (i)    None of the Shares may be sold or offered for
sale to U.S. Person or for the account or benefit of a U.S. Person;

                       (ii)   None of the Shares may be sold or offered for
sale in the United States or in any transaction consummated in the United
States (in whole or in part);

                (d)    Further without limiting the acknowledgment set forth
in subpart (a) of this Section 3.9, none of the shares may be sold or offered
for sale before the expiration of the Restricted Period unless each of the
following conditions is satisfied:

                       (i)    The prospective subsequent purchaser of the
Shares certifies that such purchaser is not a U.S. Person and is not
acquiring the Shares for the account or benefit of any U.S. Person;

                       (ii)   The prospective subsequent purchaser agrees to
resell such securities in accordance with Regulation S, pursuant to a
registration under the Securities Act or pursuant to an available exemption
from registration (other than Regulation S); and

                       (iii)  Each certificate evidencing all Shares to be
transferred contains a legend to the effect that transfer of such Shares is
prohibited except in accordance with Regulation S, which may be in the form
set forth in Section 7.1 of this Agreement;

                                       4

<PAGE>

                (e)    The Company will make a notation in its records of the
aforementioned restrictions on transfer and legends; and

                (f)    The Company has no obligation to register the transfer
of any of the Shares and shall refuse to register any such transfer not in
accordance with Regulation S.

           3.10 LIMITATIONS ON DISPOSITION. Without in any way limiting the
representations set forth above, Purchaser further agrees that Purchaser
shall in no event make any disposition of all or any portion of the Shares
unless and until:

                (a)(i) There is then in effect a Registration Statement under
the Securities Act covering such proposed disposition, and such disposition
is made in accordance with such Registration Statement; (ii) the resale
provisions of Rule 144 are available and the proposed disposition would
comply with the requirements of Regulation S in the opinion of counsel to the
Company; or (iii)(A) Purchaser shall have notified the Company of the
circumstances surrounding the proposed disposition, (B) Purchaser shall have
furnished the Company with an opinion of Purchaser's counsel to the effect
that such disposition will not require registration of such Shares under the
Securities Act, (C) the proposed disposition would comply with all applicable
requirements of Regulation S, and (D) counsel for the Company shall have
concurred with such opinion of Purchaser's counsel, and the Company shall
have advised Purchaser of such concurrence; and

                (b)    Purchaser shall have complied with the terms of the
Rights of First Refusal set forth in Section 6 of this Agreement, and the
transferee of the Shares agrees in writing to be bound by all terms of this
Agreement, including, without limitation, the "lock-up" provisions set forth
in Section 8 of this Agreement.

           3.11 COMPLIANCE WITH OTHER LAWS. Purchaser has observed the laws
of Purchaser's jurisdiction in connection with any invitation to subscribe
for or purchase the Shares or any use of this Agreement, including (i) the
legal requirements within Purchaser's jurisdiction for the purchase of the
Shares, (ii) any foreign exchange restriction applicable to such purchase,
(iii) any governmental or other consent that may need to be obtained and (iv)
the income tax and other tax consequences, if any, that may be relevant to
the purchase, holding, redemption, sale or transfer of the Shares.
Purchaser's subscription and payment for, and Purchaser's continued
beneficial ownership of, the Shares will not violate any applicable
securities or other law of Purchaser's jurisdiction.

                                       5

<PAGE>

     4.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set forth
on the Schedule of Exceptions furnished to Purchaser and attached hereto as
Exhibit B, the Company hereby represents and warrants to Purchaser that:

           4.1  ORGANIZATION; GOOD STANDING; QUALIFICATION. The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of California, has all requisite corporate power and
authority to own and operate its properties and assets and to carry on its
business as now conducted and as proposed to be conducted, to execute and
deliver this Agreement and to issue and sell the Shares and to carry out the
provisions of this Agreement. The Company is not qualified to transact
business as a foreign corporation in any other jurisdiction, and such
qualification is not now required.

           4.2  AUTHORIZATION. All corporate action on the part of the
Company and its officers, directors and shareholders necessary for the
authorization, execution and delivery of this Agreement, the performance of
all obligations of the Company hereunder at the Closing and the
authorization, issuance (or reservation for issuance), sale and delivery of
the Shares being sold hereunder has been taken or will be taken before the
Closing, and this Agreement and the obligations of the Company hereunder
constitute valid and legally binding obligations of the Company, enforceable
in accordance with their respective terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors' rights generally,
and (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

           4.3  VALID ISSUANCE OF SHARES. The Shares that are being purchased
by Purchaser hereunder, when issued, sold and delivered in accordance with
the terms of this Agreement for the consideration expressed herein, will be
duly and validly issued, fully paid and nonassessable, and will be free of
liens, encumbrances and restrictions on transfer other than restrictions on
transfer under this Agreement and under applicable state and federal
securities laws, and free of all liens, encumbrances and preemptive or
similar rights contained in the Company's Articles of Incorporation or Bylaws
or in any agreement to which the Company is a party, except as set forth in
the Schedule of Exceptions.

           4.4  GOVERNMENTAL CONSENTS. No consent, approval, qualification,
order or authorization of, or filing with, any local, state or federal
governmental authority is required on the part of the Company in connection
with the performance of this Agreement, the offer, sale or issuance of the
Common Stock, except that any notice of sale required to be filed with the
Securities and Exchange Commission under the Securities Act or such
post-closing filings as may be

                                       6

<PAGE>

required under applicable state securities laws, will be timely filed after
the Closing within the applicable periods therefor.

          4.5  FINANCIAL STATEMENTS.  The Company has made available to the
Purchaser an audited balance sheet of the Company dated December 31, 1998, an
audited income statement and statement of changes in cash flows of the
Company for its fiscal year ended December 31, 1998, and an unaudited income
statement and balance sheet of the Company for the eleven-month period ended
November 30, 1999 (all such financial statements being collectively referred
to herein as the "Financial Statements").  Such Financial Statements (a) are
in accordance with the books and records of the Company, (b) are true,
correct and complete and present fairly the financial condition of the
Company at the date or dates therein indicated and the results or operations
for the period or periods therein specified and (c) have been prepared in
accordance with generally accepted accounting principles applied on a
consistent basis, except as to the unaudited financial statements, for the
omission of notes thereto and normal year-end audit adjustments.  Except as
set forth Schedule of Exceptions, the respective balance sheets of the
Financial Statements disclose all of the Company's material debts,
liabilities and obligations of any nature, whether due or to become due, as
of their respective dates (including, without limitation, absolute
liabilities, accrued liabilities and contingent liabilities) to the extent
that such debts, liabilities and obligations are required to be disclosed in
accordance with generally accepted accounting principles.  The Company has
good and marketable title to all assets set forth on the balance sheets of
the Financial Statements, except for such assets as have been spent, sold or
transferred in the ordinary course of business since their respective dates.

     5.  RIGHTS AS SHAREHOLDER.  Subject to the terms and conditions of this
Agreement, Purchaser shall have all of the rights of a shareholder of the
Company with respect to the Shares from and after the date on which Purchaser
delivers full payment for the Shares until such time as Purchaser disposes of
the Shares or the Company and/or its assignee(s) exercises the Rights of
First Refusal as set forth in Section 6 of this Agreement.  Upon such
exercise, Purchaser shall have no further rights as a holder of the Shares so
purchased except the right to receive payment for the Shares so purchased in
accordance with the provisions of this Agreement, and Purchaser shall
forthwith cause the certificate(s) representing the Shares so purchased to be
surrendered to the Company for transfer or cancellation.

     6.  RIGHTS OF FIRST REFUSAL.

          6.1  GENERAL.  Before any Shares held by Purchaser or any
transferee (either being sometimes referred to in this Agreement as the
"Selling Shareholder") may be sold or otherwise transferred, the Company or
its

                                       7
<PAGE>

assignee(s) shall have rights of first refusal to purchase the Shares under
the terms and conditions set forth in this Section 6 (the "Rights of First
Refusal").

          6.2  NOTICE OF PROPOSED TRANSFER.  The Selling Shareholder of the
Shares shall deliver to the Company a written notice (the "Notice") stating:
(a) the Selling Shareholder's BONA FIDE intention to sell or otherwise
transfer such Shares (the "Offered Shares"); (b) the name of each proposed
purchaser or other transferee (the "Proposed Transferee"); (c) the number of
Offered Shares to be transferred to each Proposed Transferee; and (d) the
BONA FIDE cash price or other consideration for which the Selling Shareholder
proposes to transfer the Offered Shares (the "Offered Price"), and the
Selling Shareholder shall offer the Offered Shares at the Offered Price to
the Company or its assignee(s).

          6.3  EXERCISE OF RIGHT OF FIRST REFUSAL.  At any time within
Fifteen (15) days after receipt of the Notice, the Company or its assignee(s)
may, by giving written notice to the Selling Shareholder, elect to purchase
all (but not less than all) of the Offered Shares, at the purchase price
determined in accordance with Section 6.4 below.

          6.4  PURCHASE PRICE.  The purchase price (the "Purchase Price") for
the Offered Shares purchased by the Company or its assignee(s) under this
Section 6.4 shall be the Offered Price.  If the Offered Price includes
consideration other than cash, then the cash equivalent value of the non-cash
consideration shall be determined by the Board of Directors of the Company in
good faith.

          6.5  PAYMENT.  Payment of the Purchase Price shall be made, at the
option of the Company or its assignee(s), in cash (by check), by cancellation
of all or a portion of any outstanding indebtedness of the Selling
Shareholder to the Company (or, in the case of purchase by an assignee, to
the assignee), or by any combination thereof within Forty (40) days after
receipt of the Notice or in the manner and at the times set forth in the
Notice.  The sale shall constitute a representation and warranty by the
Selling Shareholder that the Shares being sold are free and clear of all
liens, claims and encumbrances.

          6.6  SELLING SHAREHOLDER'S RIGHT TO TRANSFER.  If all of the
Offered Shares proposed in the Notice to be transferred to a given Proposed
Transferee are not purchased by the Company or its assignee(s) as provided in
this Section 6, then none of the Offered Shares shall be purchased under this
Section 6, and the Selling Shareholder may sell or otherwise transfer the
Offered Shares to that Proposed Transferee at the Offered Price or at a
higher price, provided that such sale or other transfer (a) is consummated
within Ninety (90) days after the date of the Notice, (b) is in accordance
with all of the terms of this Agreement and all other agreements between the
Selling Shareholder and the Company and (c) is

                                      8
<PAGE>

effected in accordance with all applicable securities laws, and the Proposed
Transferee agrees in writing that the provisions of this Agreement shall
continue to apply to the Offered Shares in the hands of such Proposed
Transferee. If the Offered Shares described in the Notice are not transferred to
the Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company or its assignees shall again be offered the Rights of
First Refusal before any Offered Shares held by the Selling Shareholder may be
sold or otherwise transferred.

            6.7   EXCEPTION FOR CERTAIN TRANSFERS. Anything to the contrary
contained in this Section 6 notwithstanding, the provisions of this Section 6
shall not apply to the transfer without consideration of any or all of the
Offered Shares during the Selling Shareholder's lifetime or upon the Selling
Shareholder's death by will or intestacy to the Selling Shareholder's immediate
family, a trust for the benefit of the Selling Shareholder or to the Selling
Shareholder's immediate family as a gift. "Immediate Family" as used herein
shall mean spouse, lineal descendant or antecedent, brother or sister. In such
case, the transferee or other recipient shall receive and hold the Offered
Shares so transferred subject to the provisions of this Section 6, and there
shall be no further transfer of such Offered Shares except in accordance with
the terms of this Section 6.

            6.8   TERMINATION OF RIGHTS OF FIRST REFUSAL. The Rights of First
Refusal under this Section 6 shall not apply to and shall terminate immediately
before the closing of any initial public offering of the Company's Common Stock
pursuant to a registration statement filed with and declared effective by the
Securities and Exchange Commission under the Securities Act and shall be
reinstated if there is no such closing.

      7.    RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

            7.1   LEGENDS. Purchaser understands and agrees that the Company
shall cause the legends set forth below or legends substantially equivalent
thereto to be placed on all certificates representing the Shares along with all
other legends that may be required by state or federal securities laws:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
      TRANSFERRED OR OTHERWISE DISPOSED OF BEFORE ONE YEAR FROM THE DATE OF THE
      CLOSING AT WHICH SUCH SHARES WERE PURCHASED, WITHIN THE UNITED STATES,
      CANADA, THEIR TERRITORIES AND POSSESSIONS OR ANY AREA SUBJECT TO THEIR

                                       9
<PAGE>

      JURISDICTION OR TO ANY CITIZEN OR RESIDENT OF THE UNITED STATES OR CANADA,
      OR ANY STATE, TERRITORY OR POSSESSION THEREOF, INCLUDING ANY ESTATE OF
      SUCH PERSON OR ANY CORPORATION, PARTNERSHIP, TRUST OR OTHER ENTITY CREATED
      OR EXISTING UNDER THE LAWS THEREOF, AND THEREAFTER MAY NOT BE SO
      TRANSFERRED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR
      COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY
      HAS RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
      COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED."

      "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
      RESTRICTIONS UPON TRANSFER, INCLUDING RIGHTS OF FIRST REFUSAL, AS SET
      FORTH IN AN AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDERS,
      A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION."

      "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180-DAY
      MARKET STANDOFF PROVISION AS SET FORTH IN THE COMMON STOCK PURCHASE
      AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A
      COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH
      MARKET STANDOFF PROVISION IS BINDING ON TRANSFEREES OF THESE SHARES."

      "THE TRANSFER, SALE, ASSIGNMENT, HYPOTHECATION, ENCUMBRANCE, OR ALIENATION
      OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY A FIRST
      REFUSAL AGREEMENT DATED AUGUST 7, 1996."

            7.2   STOP-TRANSFER NOTICES. Purchaser agrees that, in order to
ensure compliance with the restrictions set forth in this Agreement, the Company
may issue appropriate "stop-transfer" instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

            7.3   REFUSAL OF TRANSFER. The Company shall not be required (a) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (b) to treat as owner of

                                       10
<PAGE>

such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares have been so transferred.

     8.   COVENANTS.

          8.1    COVENANTS OF PURCHASER. Purchaser understands that the
Company is a party to that certain Right of First Refusal Agreement dated
August 7, 1996, by and between the Company and Sofinov Societe financiere
d'innovation Inc. ("Sofinov")(the "Refusal Agreement"). Under the terms of
that Refusal Agreement, and as a material condition to the Company's
obligations hereunder, Purchaser shall execute and deliver to the Company, at
the Closing, a counterpart signature page to the Refusal Agreement and shall
be bound by the terms and conditions of the Refusal Agreement. Purchaser
shall not resell or offer to resell any of the Shares, except in compliance
with all applicable terms and conditions set forth in this Agreement
(including, without limitation, all applicable terms, conditions and
limitations set forth under Section 3 of this Agreement) and the requirements
of Regulation S. Purchaser shall not resell or offer to resell any of the
Shares in the United States or to any person in the United States, to any
U.S. Person or to others for the benefit or account of any U.S. Person, at
any time before the expiration of the Restricted Period. Without limiting the
application of any of the remaining conditions set forth in this Section 8.1,
Purchaser shall in no case resell or offer to resell any of the Shares before
expiration of the Restricted Period, unless each of the following additional
conditions is satisfied:

                 (a)   The prospective subsequent purchaser certifies that
such purchaser is not a U.S. Person and is not acquiring the Shares for the
account or benefit of any U.S. Person;

                 (b)   The prospective subsequent purchaser agrees to resell
all such Shares in accordance with Regulation S, pursuant to a registration
under the Securities Act or pursuant to an available exemption from
registration; and

                 (c)   Under the terms of the sale to such prospective
subsequent purchaser, each certificate evidencing all such Shares to be
transferred must contain a legend to the effect that transfer of such Shares
is prohibited except in accordance with Regulation S, which may be in the
form set forth in Section 7.1 of this Agreement.

          8.2    COVENANT OF THE COMPANY. The Company shall not register the
transfer of any of the Shares that shall have been sold or transferred in
violation of Regulation S.

                                    11
<PAGE>

          9.     COMPANY RIGHTS. The Company shall not be required (a) to
transfer on the Company's books any of the Shares that are or have been sold
or transferred in violation of any of the terms or provisions set forth in
this Agreement (including, without limitation, the conditions and limitations
set forth under Section 3 and Section 8 of this Agreement) or (b) to treat as
owner of such Shares, or to accord voting rights associated with the ownership
of such Shares or to pay dividends to, any transferee to whom such Shares
have been so transferred.

          10.    CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The
obligations of the Company to Purchaser under this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions:

                 10.1   REPRESENTATIONS AND WARRANTIES. The representations
and warranties of Purchaser contained in Section 3 of this Agreement and
those contained in the Certificate of Non-U.S. Certificate shall be true on
and as of the Closing with the same effect as though such representations and
warranties had been made on and as of the Closing.

                 10.2   PERFORMANCE. Purchaser shall have performed and
complied with all agreements, obligations, covenants and conditions contained
in this Agreement that are required to be performed or complied with it on or
before the Closing.

                 10.3   QUALIFICATIONS. All authorizations, approvals or
permits, if any, of any governmental authority or regulatory body of the
United States or of any state that are required in connection with the lawful
issuance and sale of the Common Stock pursuant to this Agreement shall be
duly obtained and effective as of the Closing.

          11.    CONDITIONS OF PURCHASER'S OBLIGATIONS AT CLOSING. The
obligations of Purchaser to the Company under this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions:

                 11.1   REPRESENTATIONS AND WARRANTIES. The representations
and warranties of the Company contained in Section 4 shall be true on the
Closing with the same effect as though such representations and warranties
had been made on the date of the Closing.

                 11.2   PERFORMANCE. The Company shall have performed and
complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or
before the Closing.

                                    12
<PAGE>

         12. MARKET STANDOFF AGREEMENT. Purchaser hereby agrees, if so
requested by the Company or the managing underwriters in a public offering of
the Company's capital stock, that, without the prior written consent of the
Company or such managing underwriters, Purchaser shall not offer, sell,
contract to sell, grant any option to purchase, make any short sale or
otherwise dispose of, reduce Purchaser's market risk with respect to or make
a distribution of any capital stock of the Company held by or on behalf of
Purchaser or beneficially owned by Purchaser in accordance with the rules and
regulations of the Securities and Exchange Commission for a period of up to
180 days after the date of the final prospectus relating to any initial
public offering by the Company.

         13. ADJUSTMENT FOR STOCK SPLIT. All references to the number of
Shares, the Purchase Price and similar terms regarding the Shares in this
Agreement shall be adjusted appropriately to reflect any stock split, stock
dividend or other change in the Shares that may be made by the Company after
the date of this Agreement.

         14. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights
under this Agreement to single or multiple assignees, and this Agreement shall
inure to the benefit of the successors and assigns of the Company. Subject to
the restrictions on transfer set forth in this Agreement, this Agreement shall
be binding on Purchaser and Purchaser's heirs, executors, administrators,
successors and assigns.

         15. INTERPRETATION. Any dispute regarding the interpretation of this
Agreement shall be submitted by Purchaser or by the Company forthwith to the
Board of Directors of the Company, which shall review such dispute at its next
regular meeting. The resolution of such a dispute by the Board of Directors of
the Company shall be final and binding on Purchaser and the Company.

         16. GOVERNING LAW; SEVERABILITY. This Agreement shall be governed by
and construed in accordance with the laws of the State of California, excluding
that body of law pertaining to conflicts of law. Should any provision of this
Agreement be determined by a court of law to be illegal or unenforceable, the
other provisions nevertheless shall remain effective and shall remain
enforceable.

         17. CHOICE OF FORUM. Any judicial proceeding brought by any party
hereto as a result of a dispute or controversy arising out of or related to this
Agreement shall be commenced in courts located within Los Angeles County,
California. All parties hereto agree to submit to the jurisdiction of the
federal and state courts located within such county in the event of such a
dispute or controversy.

                                       13
<PAGE>

         18. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. The
representations, warranties and agreements contained in this Agreement shall not
be discharged or dissolved upon the Closing but shall survive and remain in full
force and effect after the Closing.

         19. NO WAIVER. The failure of any party hereto at any time to
require performance by the other party hereto of any term or provision of
this Agreement shall not affect the right of such party to require
performance of that term or provision, and any waiver by any party hereto of
any breach of any term or provision of this Agreement shall not be construed
as a waiver of any continuing or succeeding breach of such term or provision,
a waiver of the term or provision itself or a waiver of any right under this
Agreement.

         20. WRITTEN AMENDMENTS. This Agreement may not be modified, amended,
altered or changed in any respect whatsoever except by further agreement in
writing, duly executed by all parties hereto. No oral statements or
representations made after the date of this Agreement by any party hereto are
binding on such party, and no party hereto shall have the right to rely on such
oral statements or representations.

         21. NOTICES. Any notice, demand, offer or request required or
permitted to be given by either the Company or Purchaser pursuant to the
terms of this Agreement shall be in writing and shall be deemed effectively
given the earlier of (a) when received, (b) when delivered personally, (c)
One (1) business day after being delivered by facsimile, (d) One (1) business
day after being deposited with an overnight courier service or (d) Four (4)
days after being deposited in the U.S. Mail, First Class with postage prepaid
and addressed to the parties at the addresses provided to the Company (which
the Company agrees to disclose to the other parties upon request) or such
other address as a party may request by notifying the other in writing.

         22. FURTHER INSTRUMENTS. The Company and Purchaser agree to execute
such further instruments and to take such further action as may be reasonably
necessary to carry out the purposes and intent of this Agreement.

         23. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
of the parties hereto and supersedes in its entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof.

                                       14
<PAGE>

         24. COUNTERPARTS. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same agreement.

The "Company":                          "Purchaser":

Hydrogen Burner, Inc.,
a California corporation

                                       /s/ Dieter Bakic
                                       --------------------------
                                       Dieter Bakic

By:   /s/ David Moard
      --------------------------
      David Moard                       Cuvillies Strasse #6
      Its: President                    81679 Munchen 80
                                        Germany

                                       15<PAGE>

                                 EXHIBIT 10.18

                               Air Liquide Canada
                               Equipment Purchase
                              and Service Agreement

<PAGE>

[LOGO]

                                    EQUIPMENT
                               PURCHASE AND SERVICE
                                    AGREEMENT

                                     BETWEEN

                               PHOENIX GAS SYSTEMS
                               3925 VERNON STREET
                                 LONG BEACH, CA
                                   USA 90815

                                       AND

                                AIR LIQUIDE CANADA INC.
                         1250 RENE-LEVESQUE BLVD, W., SUITE 1700
                                   MONTREAL, QUEBEC
                                    CANADA, H3B 5E6

                                  DATE: JUNE 26, 1997

THIS AGREEMENT IS ATTACHED TO AND MADE PART OF ALC'S PURCHASE ORDER #101108

                                                     Revision 2   July 21, 1997
<PAGE>

INDEX

APPENDIX "A"      EQUIPMENT PURCHASE

1.    Duration of Agreement
2.    Description of Equipment
3.    Requirements and performance of the Equipment
4.    Spare Parts
5.    Delivery/Schedule
6.    Payment
7.    Documentation
8.    System Warranty
9.    System Acceptance/Approval

APPENDIX "B"      SUPPLEMENTAL TERMS AND CONDITIONS

1.    FOB/Carrier
2.    Taxes
3.    Billing
4.    Liability and Indemnity
5.    Insurance
6.    Technical Assistance
7.    Default
8.    Notices
9.    Waiver
10.   Freedom to Contract

<PAGE>

APPENDIX "A"
EQUIPMENT PURCHASE

1.   DURATION OF AGREEMENT

     This Agreement commences the date that Air Liquide Canada Inc.'s (the
     Buyer) purchase order is issued and remains in force until completion and
     acceptance of the equipment under terms of this Agreement.

2.   DESCRIPTION OF EQUIPMENT

2.1  The equipment shall be furnished by the Seller as described in Seller's
     proposal dated June 2, 1997 along with the completion of issues raised at
     the Hazop meeting dated April 28 & 29, 1997.

2.2  All electrical equipment shall be 575 volts, 3 phases, 60 Hz; instruments
     and controls in 120 volts, 1 phase, 60 Hz.

2.3  The equipment shall be registered in the province of Alberta, Canada.

2.4  Optional extended test expenses:

            For three weeks (504 hours):                        $  9 249 US.

     If Buyer opts for extended test, the above expenses will be due upon
     completion of test and delivery of test report to Buyer.

     2.4.1  The extended test shall meet the requirements and performance as
            defined in the Buyer's testing protocol entitled "Air Liquide
            Acceptance Test for 500 scfh NG-A Unit" dated June 26, 1997.

     2.4.2  Extended test duration may vary as per the Buyer's discretion.
            Test expenses will be prorated according to the incurred test
            duration.

     2.4.3  Any and all results and documentation related to the extended
            test shall be the shared property of the Buyer and Seller and
            will not be disclosed to any outside or third party without the
            written consent of both parties.

2.5  Equipment total cost:                 $130 000 US., F.O.B., ex-warehouse,
                                           PGS's warehouse, Long Beach,
                                           California, U.S.A..

3.   REQUIREMENTS AND PERFORMANCE OF THE EQUIPMENT

3.1  The system shall meet the product specifications in the proposal to
Buyer dated March 31, 1997 ("required product specifications").

<PAGE>

4.   SPARE PARTS

4.1  The Seller shall provide the Buyer with complete lists of spare parts
     and Suppliers involved.

5.   DELIVERY/SCHEDULE

5.1  The system will be scheduled for delivery sixteen (16) weeks from
     receipt of signed purchase order and 1st Payment, unless an Extended Test
     according to the Buyer's testing protocol is opted for, in which case the
     period of the Extended Test will be added to the scheduled sixteen (16)
     weeks.

5.2  In the event Seller foresees or encounters difficulty in meeting the
     delivery requirements, he shall immediately notify the Buyer in writing
     giving pertinent details and a recovery schedule acceptable to the Buyer.

6.   PAYMENT

6.1  Payment shall not constitute acceptance by the Buyer.

6.2  The total equipment cost is evaluated at $130 000 U.S., F.O.B.,
     ex-warehouse, PGS's plant, Long Beach, California, U.S.A.

6.3  The Buyer shall pay all amounts due and payable as follows:

     6.3.1  1st Payment:

            40% of $130 000 U.S. at the time Purchase Order is placed.

     6.3.2  2nd Payment:

            40% of $130 000 U.S. to be paid upon notification of system
            manufacture complete and ready for either Extended Test, when
            applicable, or Standard Factory Acceptance Test.

     6.3.3  Final Payment:

            20% of $130 000 U.S. to be paid upon successful completion of a
            Field Performance Test.

7.   DOCUMENT

7.1  Seller shall provide to the Buyer after receiving the purchase order the
     following:

     7.1.1  P & ID drawings of the system;
     7.1.2  Floor layout with detailed installation;
     7.1.3  Detailed listing of equipment installed, together with manuals
            containing all information for operating, servicing and repairs of
            the system.

<PAGE>

8.   SYSTEM WARRANTY

8.1  The Seller Warranties the equipment as described on page 16 in the
     proposal to the Buyer dated March 31, 1997.

8.2  The Seller agrees to replace at no cost to the Buyer, in-warranty items
     found defective or non-compliant with Buyer's requirements.

9.   SYSTEM ACCEPTANCE/APPROVAL

9.1  STANDARD FACTORY ACCEPTANCE TEST

     A Standard Factory Acceptance Test will be conducted as follows:

     9.1.1  The acceptance test will be conducted at the Seller's warehouse
            in Long Beach, California upon completion of the equipment.

     9.1.2  Buyer may elect to have representatives present during the test,
            or not.

     9.1.3  A series of data sets will be taken hourly over an eight hour
            period.

     9.1.4  The data collected will be:

            Rate          )
                          )
            Pressure      )-- of the product hydrogen
                          )
            Purity        )

     9.1.5  The Seller will supply a gas chromatograph for the test.   The
            gas chromatograph will be calibrated before and after the test.

     9.1.6  The hydrogen product rate, pressure and purity values will be
            averaged and compared to the product specifications in the proposal
            to Buyer dated March 31, 1997.

     9.1.7  A report on the results of the test will be generated and given
            to the Buyer.

     9.1.8  The equipment will be deemed accepted if the averaged values are
            equal to or better than the required product specifications.

     9.1.9  Upon acceptance, title to the equipment shifts from Seller to
            Buyer.

9.2  OPTIONAL EXTENDED TEST

     An Extended Test may be substituted for the Standard Factory Acceptance
     Test. The test procedures are outlined in the Buyer's testing protocol
     dated June 26, 1997. All costs will be paid by Buyer. However, Seller
     will credit the Buyer the cost of their Standard Factory Acceptance Test.

<PAGE>

     9.2.1  All results and documentation related to the extended test shall
            be the shared property of the Buyer and Seller and will not be
            disclosed to any outside or third party without the written
            consent of both parties.

9.3  FIELD PERFORMANCE TEST

     A Field Performance Test will be conducted as follows:

     9.3.1  The performance test will be conducted at Buyer's site thirty
            (30) days following installation and start-up of the system.

     9.3.2  A series of data sets will be collected at thirty minute
            intervals over a 12 hour period.

     9.3.3  The data collected will be:

            Rate -----)
                      )
            Pressure  )---- of the product hydrogen
                      )
            Purity ---)

     9.3.4  A gas chromatograph or other purity monitor will be supplied by
            the Buyer for Seller's use during the test period. The gas
            chromatograph or purity monitor will be calibrated before and
            after the test.

     9.3.5  The hydrogen product rate, pressure and purity values will be
            averaged and compared to the product specifications in the
            proposal to Buyer dated March 31, 1997.

     9.3.6  The test will be deemed successful if the averaged values are
            equal to or better than the required product specifications.

9.4  If the equipment does not meet or better said specifications, the Seller
     agrees to revise, replace or recondition the equipment to correct the
     unsatisfactory performance, at the Seller's own expense. If Seller is
     unable to cure unsatisfactory performance within 30 days of Field
     Performance Test, final payment will be adjusted in proportion to the
     percent deviation from the required specifications. If performance is
     below 15% of the required specifications, Buyer at its sole discretion
     may elect to return the equipment, with Seller paying shipping, and all
     equipment cost monies will be returned to Buyer, unless the reason for
     unsatisfactory performance is due to Buyer site limitations or
     conditions.

<PAGE>

APPENDIX "B"
SUPPLEMENTAL TERMS AND CONDITIONS

1.  TERMS OF PAYMENT/SHIPMENT

    (a) Delivery shall be F.O.B. (ex-warehouse) Seller's shipping dock, Long
    Beach, California on or before the date specified for delivery. Risk of
    loss passes to Buyer upon tender of delivery.

    (b) Seller shall select the specific carrier and routing and arrange for
    shipment in accordance with Buyer's instructions and schedule as set
    forth in Buyer's order. Seller shall not be liable for any losses
    incurred by Buyer due to selection of a specific carrier by Buyer or
    Seller. Buyer shall pay all freight costs directly to the carrier.

    (c) Seller's obligation to deliver the Equipment or any portion thereof
    shall be conditioned upon Buyer's performing all its obligations under
    this Section 1, making arrangements for payment or making payments as
    required by Section 6.5 of Appendix "A" hereof, providing, at Seller's
    request, satisfactory security for performance by Buyer of its
    obligations under this Agreement, and delivering to Seller within thirty
    (30) days of Seller's notifying Buyer that the Equipment will be
    delivered any licenses which the U.S. government may require for the
    export of the Equipment will be delivered any licenses which the U.S.
    government may require for the export of the Equipment, and such
    licenses shall be in full force and effect at the time of delivery.
    Seller shall also be relieved of its obligations to deliver the
    Equipment if such Equipment suffers total casualty before delivery to
    Buyer.

    (d) If Buyer does not take over the Equipment or a portion thereof when
    tendered, without prejudice to its right to the price of the Equipment,
    Seller may, for the account of Buyer, retain possession of the Equipment
    or such portion thereof tendered to Buyer and sell the same at such time
    and place as Seller determines is appropriate. Buyer agrees that ten
    (10) days' notice shall be reasonable notice of such a sale. Seller
    may deduct all costs of transport, storage and sale of such goods from
    the proceeds received from any such sale before crediting such proceeds
    against any portion of the price that remains unpaid.

2.  TAXES

    (a) Seller's prices are exclusive of sales, use, excise and similar
    taxes; shipping and consular fees for legalizing invoices, stamping
    bills of lading or other documents required by the laws of the country
    of destination; income, stamp, turnover and other taxes, duties, fees,
    charges and assessments of any nature levied by any governmental
    authority outside of the United States in connection with the sale, use
    or deliver of the Equipment whether imposed on Seller or Buyer, all of
    which ("Taxes") are the sole responsibility of Buyer.

    (b) Any Tax, which Seller has the duty to collect, will appear as a
    separate item on the invoice and will be paid by Buyer. If Buyer is
    exempt form a Tax, Buyer shall furnish to Seller a certificate of
    exemption from the applicable taxing authority.

<PAGE>

3.   BILLING

     All billing for the Buyer shall be centralized and addressed to: 1250
     Rene-Levesque Blvd. W., Suite 1700, Montreal, Quebec, Canada, H3B 5E6,
     to the attention of Khiem LeVan.

4.   LIABILITY AND INDEMNITY

4.1  Subject to the limitation contained in section 8, the Seller will be
     responsible for and will indemnify the Buyer from and against any and all
     direct claims and demands, loss or damage to property or persons, at any
     time caused by or resulting from its negligence, its acts or omissions
     or those of its agents and employees;

4.2  Regardless of the circumstances, neither party will be liable to the
     other for special, indirect or consequential damages howsoever occurring.

5.   INSURANCE

     The Seller shall provide proof of insurance certifying that it is
     insured for comprehensive liability and contractual liability in an
     amount of one million dollars, US ($1 000 000 US). Buyer will pay
     for all costs and expenses for any additional insurance that Buyer
     requires Seller to have for the duration of this agreement.

6.   TECHNICAL ASSISTANCE

     Should Buyer require advisory services of a technical nature which the
     Seller is in a position to provide, then the parties shall agree on the
     nature of such assistance, with the acknowledgment that the Buyer does
     not hold itself out as being an expert in Seller's processes or business.

7.   DEFAULT

     Should either party take the benefit of or become subject to any
     provision of the bankruptcy or insolvency legislation, the other party
     will have the right, by written notice, to terminate this Agreement
     forthwith. Such termination right will also apply, in addition to other
     rights a party may have at law, if within 15 days from having been
     notified by one party the other has failed to remedy a monetary or any
     other material default.

8.   NOTICES

     Any notices given in connection with this Agreement will be sent or
     delivered in writing at the address shown above, (i) in the case of
     Buyer, to the attention of the Purchasing Management, and (ii) in the
     case of Seller, to the attention of the General Manager. Notice will be
     deemed given on the day on which it is sent by prepaid mail or fax, or
     hand delivered, to the receiving party.

<PAGE>

9.   WAIVER

     The waiver by either party of any of its rights under this Agreement
     will not be construed as constituting precedent.

10.  FREEDOM TO CONTRACT

     Buyer represents that it is and will remain free to meet all obligations
     under this Agreement and is not bound by a conflicting agreement. Buyer
     will fully indemnify Seller against all damages it may suffer if Buyer's
     representation is not correct.

11.  VISITATION

     Seller and its designated agent may, from time to time, upon approval
     from Buyer, visit the premises upon which Buyer installs the Equipment.

12.  PROPRIETARY RIGHTS

     The acceptance of any Equipment shall not confer on Buyer a license
     under any patent, trademark, copyright, trade secret or other proprietary
     rights of Seller.

     Buyer shall not permit any direct or indirect subsidiaries of it to,
     directly or indirectly contravene or infringe upon any UOB-TM- patents.

13.  TERMINATION

     Buyer may terminate this Agreement at any time for reasons of
     convenience upon thirty (30) days' prior written notice; provided,
     however, that (i) the price of the Equipment shall be prorated on a
     daily basis from the Effective Date until the date specified for
     delivery, (ii) Buyer shall pay Seller a prorated portion of the price
     payable under this Agreement up to and including the date of
     termination, plus any costs or charges incurred by Seller due to such
     termination, (iii) any amounts prepaid by Buyer to Seller in excess of
     the amounts payable by Buyer hereunder shall be returned to the Buyer,
     and (iv) title to all Equipment shall remain in or revert to Seller, as
     the case may be.

14.  ASSIGNMENT

     Neither part may assign or otherwise transfer its rights or obligations
     hereunder without the prior written consent of the other party. Any
     attempt to assign or transfer in violation of this provision shall be
     invalid.

     This Agreement shall inure to the benefit of, and be binding upon the
     parties and their respective heirs, legal representatives, successors
     and permitted assigns.

<PAGE>

CONFIDENTIAL
------------

              AIR LIQUIDE ACCEPTANCE TEST FOR 500 SCFH NG-A UNIT

1.0 OBJECTIVE

The objective of the test is to demonstrate the automatic operation of the PGS
500 SCFH integrated hydrogen generation system.  The objectives of the test is
to demonstrate and ascertain the following:

       1.  Demonstrate continuous operations of the integrated UOB/PSA system in
           HBT's shop location prior to acceptance for demonstration in a field
           location by AIR LIQUIDE.
       2.  Demonstrate safe system operation.
       3.  Monitor hydrogen purity over the test period and complete a necessary
           hydrogen balance on the system.
       4.  The utility consumption rates including Natural Gas, Air and
           injection water.
       5.  Product output and provide confidence that the integrated UOB/PSA
           system is able to produce the hydrogen product specified in the
           proposal to Buyer dated March 31, 1997 continuously during the test
           period.
       6.  Demonstrate the turndown capability of the integrated UOB/PSA system
           and the safety factor of production capacity over the guaranteed
           design flow rate of 500 scfh product hydrogen flow.
       7.  Monitor the carbon deposition before and after the acceptance test.
       8.  Monitor the carbon monoxide and carbon dioxide levels in the hydrogen
           product stream at periodic test intervals during the test to ensure
           levels are below the specification levels in the proposal to Buyer
           dated March 31, 1997.

2.0 TEST PROCEDURE

The test engineer will perform a pre-test safety check.  Once the pre-test check
has been completed the unit will be brought on line.

The main burner sequence will start automatically once the shift outlet
temperature reaches the permissive set point.  The system will then be allowed
to run automatically at 100% of design capacity (500 scfh product flow) and the
product gas will be flared.  The gas analysis of the UOB reactor, and shift
outlet will be performed to provide gas data.

The test shall be run for a total test run period of 504 hours with three test
periods as follows:

     Startup             2 hours    (start and get to steady state)
     Test Period 1     300 hours    100% of product flow design (500 scfh)
     Test Period 2     100 hours     60% of product flow design (300 scfh)
     Test Period 3     100 hours    100%+ of product flow design (500 scfh+)

                                       1
<PAGE>

     Shutdown            2 hours
     ------------------------------------------------------------------------
     Total Test        504 hours

Test Period 1 - The unit will then operate continuously at steady state at 100%
of design capacity (500 scfh) for the first 300 hours of continuous operation,
using HBT's equipment.

Test Period 2 - Once test period one (1) is complete the unit shall be turned
down on-line to 60% of product flow while ensuring that product hydrogen purity
specified in the proposal to Buyer dated March 31, 1997, is maintained to
demonstrate purity maintenance during periods of low product flow requirements.
Once the flow reaches 60% of design product flow (300 scfh) the unit shall be
operated at steady state for the duration of Test Period 2.

Test Period 3 - Once test period two (2) is complete the unit shall be ramped up
on-line to 100%+ of product flow (to the maximum flow the unit can run at while
maintaining the product hydrogen purity specified in the proposal to Buyer dated
March 31, 1997) to demonstrate the ability of the unit to produce the specified
purity hydrogen over the guaranteed design flow rate.  Once the flow reaches
this maximum flow rate (100%+), the unit shall be operated at steady state for
the duration of Test Period 3.

Once the system test has been completed the unit will be shut down.  The unit
will then go through a cooling purge and will automatically shut down the
systems.

3.0 DATA COLLECTION

3.1 PRE-TEST CHECK

Prior to the start-up of the system, PGS personnel shall open the UOB, CO shift
converter and carbon filter (where carbon deposition may occur) and shall ensure
that NO carbon is present prior to the test.  PGS personnel shall take the
necessary photographs of the system components to provide knowledge of the
cleanliness of the vessels prior to start-up.

3.2 CONTINUOUS AND PERIODIC DATA COLLECTION/MONITORING

Data shall be collected at a regular intervals by assigned PGS personnel.  Any
and all upset conditions, shut-downs or start-ups (along with documented causes
of failure) or operating observations shall be logged along with the time of
the event.

Shut-downs due to a loss of utilities or other events that do not reflect upon
the reliability of the equipment will not constitute a re-start of any test
period.  Any such events, though, shall be logged and explained.

    The following data points shall be logged during the acceptance test.

    1.0 GC data
          1.1  UOB Outlet            AE-xxx 003-P
          1.2  SHIFT Outlet          AE-223 004-P

                                       2
<PAGE>

CONFIDENTIAL

          1.3 H(2) PSA Product Gas Stream   AE-310 005-P

           -  THE TEST POINT INTERVALS MAY VARY DUE TO THE LAG TIME REQUIRED
              TO PROPERLY PURGE THE GC SAMPLE LINES.

           -  GC SAMPLES WILL BE TAKEN EVERY 60 MIN FOR THE INITIAL EIGHT
              HOUR PERIOD AND EVERY TWO HOURS (FOR A MINIMUM OF 5 SAMPLES PER
              DAY) DURING BUSINESS HOURS THEREAFTER.

           -  GC SAMPLES SHALL BE TESTED BY PGS PERSONNEL FOR ALL COMPONENTS
              AS PER APPENDIX 3.

    2.0  Temperatures
           2.1 Burner Lower temp.           TE-132;P&ID 003-P
           2.2 Burner Center temp.          TE-122;P&ID 003-P
           2.3 Burner Top temp              TE-140;P&ID 003-P
           2.4 UOB Outlet temp              TE-112;P&ID 003-P
           2.5 Shift Inlet temp             TE-250;P&ID 004-P
           2.6 Shift Outlet temp            TE-213;P&ID 004-P
           2.7 Product Gas temp.            TE-218;P&ID 004-P
           2.8 Natural Gas Fuel temp.       TE-010;P&ID 002-P

    3.0  Pressure
           3.1 Air Pressure                          P1-025      P&ID 002-P
           3.2 Natural Gas Pressure                  P1-Local    P&ID 003-P
           3.3 Raw Product Pressure Upstream of PSA  PT-222      P&ID 004-P
           3.4 Hydrogen Product Pressure             PT-Local    P&ID 005-P

    4.0  Utility Consumption (Flow)
           4.1 Natural Gas                           FIT-131     003-P
           4.2 Air                                   FIT-102     003-P
           4.3 Water                                 FI-145      003-P

    5.0  Product Flow
           5.1 Hydrogen Product                      Rotameter   005-P

    6.0  Ambient Conditions
           6.1 Temperature                           Local dry bulb

3.3 INDEPENDENT OUTSIDE LAB SAMPLE MONITORING

PGS personnel shall send GC data samples to an independent outside lab for
testing of all components as per the GC Data Log Sheet in Appendix 3.  This
test is required to verify the validity of the sample data analysis provided
by PGS personnel with its GC testing, verify calibration of equipment and
identify sampling or equipment error.  PGS shall send out at least 2 samples
from each test period (once the unit is at steady state in all cases) to the
outside lab for testing, one at the start of the test period and one at the
end of the test period.  An additional

                                       3
<PAGE>

sample shall be sent out for independent testing during test period 1 at the
mid-point of the test period ( at 150 hour point ).

3.4 END OF TEST CHECK

Once the test is complete, the unit is shutdown and safe to open, PGS
personnel shall open the UOB, CO shift converter and carbon filter (where
carbon deposition may occur) and shall check the level of carbon deposition
present.  PGS personnel shall take the necessary photographs of the system
components to provide knowledge of deposition of the vessels.  Air Liquide
personnel shall be present at the end of the test to witness the opening of
the equipment and review of the carbon deposition.

4.0 DOCUMENTATION TO BE PROVIDED TO AIR LIQUIDE BY PGS

The following documentation shall be provided to Air Liquide upon completion
of the test:

All GC log data sheets and test sheets as formatted in Appendix 3A and 3B.
Output data (in diskette form) of all temperature/pressure/flow computer
monitoring points.
All analysis data received from the independent lab of samples analyzed.
All other observed data/causes of failure.

5.0 CRITERIA FOR ACCEPTANCE BY BUYER

The following is the criteria for acceptance of this test as a basis to
continue with its purchase of a 500 NG-A unit.

1. System maintains hydrogen product purity, as specified in the proposal to
Buyer dated March 31, 1997, 100% of the time during the test periods, except
for initial startup.
2. No accumulation of carbon that can be shown to impede the performance of
the equipment.
3. Utility/Feed Consumption is at +/- 10% of the of the specifications in the
proposal to Buyer dated March 31, 1997 when operating at the 500 scfh design
flowrate.
4. The unit must be able to produce the 500 scfh hydrogen product flow for
100% of test period one.

6.0  TEST CRITERIA/SUPPORTING DOCUMENTATION

       -  Appendix 1 Heat and Material balance

       -  Appendix 2 presents P & IDs diagramming test data point locations.

       -  Appendix 3A & 3B represents the GC data log sheets and test data.

       -  Appendix 4 represents correction factors and equations used for
          correcting flow data collected.

                                       4

<PAGE>
CONFIDENTIAL

                    APPENDIX 1 - HEAT AND MATERIAL BALANCE

                                       5
<PAGE>
CONFIDENTIAL

                          APPENDIX 2 - P&I DIAGRAMS

                                       6
<PAGE>
CONFIDENTIAL

                       APPENDIX 3A - GC LOG DATA SHEET

Date                                   Unit
Name                                   Run#

Code: NNnXXaXX                      XX = Run Number
      NN = Unit #                   a = location of sample-a:UOB, b:Shift, c:PSA
      n = c, calibation or r, run   XX = Sample number

<TABLE>
<CAPTION>

GC Run #      Time      H2      O2      N2      CH4      CO      CO2     Comment
--------------------------------------------------------------------------------
<S>           <C>       <C>     <C>     <C>     <C>      <C>     <C>     <C>

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
</TABLE>

                                       7
<PAGE>
CONFIDENTIAL

                            APPENDIX 3B - TEST DATA

Date:          Run Number            Ambient Temperature:
-------------------------------      ------------------------------------------
Time:                                Ambient Pressure
-------------------------------      ------------------------------------------
Test Engr: Burford
Test Set-up Description:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
POINTS                       1       2       3       4       5       6       7
                         ------------------------------------------------------
<S>                      <C>     <C>     <C>     <C>     <C>     <C>     <C>
Run Time,hr
                         ------------------------------------------------------

                         ------------------------------------------------------
Water Flow GPH
                         ------------------------------------------------------
NG Flow, Display
                         ------------------------------------------------------
AIR Flow, Display
                         ------------------------------------------------------
Supply Air Ro: Read
                         ------------------------------------------------------
Product reading
                         ------------------------------------------------------

                         ------------------------------------------------------
Burner Lower, Temp F
                         ------------------------------------------------------
Burner Cen. Temp, F
                         ------------------------------------------------------
Burner Top, Temp F
                         ------------------------------------------------------
UOB Outlet, Temp F
                         ------------------------------------------------------
Shift In, F
                         ------------------------------------------------------
Shift Out, F
                         ------------------------------------------------------
Product Temp, F
                         ------------------------------------------------------
NG Feed Temp F
                         ------------------------------------------------------

                         ------------------------------------------------------

                         ------------------------------------------------------

                         ------------------------------------------------------
Air in PSIG
                         ------------------------------------------------------
NG in PSIG
                         ------------------------------------------------------
Product press. PSIG
                         ------------------------------------------------------

                         ------------------------------------------------------
Comments

                         ------------------------------------------------------
</TABLE>

                                       8
<PAGE>

CONFIDENTIAL

                         APPENDIX 4 - CALIBRATION CURVES

Included in this appendix are ventor supplied flow meter calibration curves
as well as temperature and pressure correction equations.

The correction equations to be used for the gas rotameters have been
extracted from the Dryer catalog and are shown below. This flow correction
method is used for:

-   Product Gas

The correction used for pressure variations is as follows:

                                          __________________
                                         ( (P      + 14.696)
Q           =   Q                        (   inlet
 ACTUAL1         observed  square root of( -----------------
                                         (      14.696

The correction for specific gravity needs to be applied to the equation for
gases other than air.
                                          ______________
                                         (
Q           =   Q                        (       1
 ACTUAL          actual1   square root of( -------------
                                         ( SpecificGravit

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]