Document:

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                                                                   EXHIBIT 10.14

                                9 SEPTEMBER 2004

                                 (1) MARK DRAPER

                                       AND

                        (2) OCEAN POWER TECHNOLOGIES LTD

                                   ----------

                                SERVICE AGREEMENT
                                (BY WAY OF DEED)

                                   ----------

                    Wilmer Cutler Pickering Hale and Dorr LLP

                                  Alder Castle
                                 10 Noble Street
                                 London EC2V 7QJ
                            Tel: +44 (0)20 7645 2400
                            Fax: +44 (0)20 7645 2424
                                 Ref: 00000-000

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                                      INDEX

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<S>                                                                           <C>
 1. TITLE..................................................................    1
 2. JOB DUTIES.............................................................    1
 3. OUTSIDE INTERESTS......................................................    2
 4. FREEDOM TO TAKE UP EMPLOYMENT WITH THE COMPANY.........................    2
 5. PERIOD OF CONTINUOUS EMPLOYMENT:.......................................    2
 6. TERM...................................................................    2
 7. PLACE OF WORK..........................................................    3
 8. SALARY.................................................................    3
 9. EXPENSES...............................................................    3
10. BENEFITS...............................................................    3
11. HOURS OF WORK..........................................................    6
12. HOLIDAYS...............................................................    6
13. DEDUCTIONS FROM WAGES..................................................    7
14. DATA PROTECTION........................................................    7
15. SICKNESS OR INJURY.....................................................    7
16. CONFIDENTIALITY........................................................    8
17. DELIVERY UP OF THE COMPANY'S PROPERTY..................................    9
18. INTELLECTUAL PROPERTY RIGHTS, INVENTIONS AND MORAL RIGHTS..............   10
19. GARDEN LEAVE...........................................................   11
20. SUSPENSION.............................................................   11
21. TERMINATION............................................................   11
22. OFFICES................................................................   12
23. RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT...........................   12
24. DISCIPLINARY AND GRIEVANCE PROCEDURES..................................   14
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<TABLE>
<S>                                                                           <C>
25. COLLECTIVE AGREEMENTS..................................................   15
26. PARTICULARS OF EMPLOYMENT..............................................   15
27. SECURITY...............................................................   15
28. ENTIRE AGREEMENT.......................................................   15
29. NOTICES................................................................   16
30. THIRD PARTIES..........................................................   16
31. INTERPRETATION.........................................................   16
32. GOVERNING LAW..........................................................   18
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Date of Deed: 9 September 2004

PARTIES:

(1)  Ocean Power Technologies Ltd of Alder Castle, 10 Noble Street, London, EC2V
     7QJ (the "Company")

(2)  Mark Draper of Borrowell House, Borrowell Lane, Kenilworth, Warwickshire,
     CV8 1ER

1.   TITLE

1.1  You will be employed as the Company's Chief Executive with responsibility
     for the Company's operations in the UK and Europe.

1.2  You will be a Director of the Board.

2.   JOB DUTIES

You agree that you will:-

2.1  unless you are absent from work due to ill health, incapacity, injury or at
     the Company's request, devote the whole of your working time, attention and
     abilities to your duties under this agreement;

2.2  faithfully and diligently perform your duties to the best of your ability
     and use your best endeavours to promote the interests of the Company and
     any Group Company;

2.3  without payment of additional salary or remuneration, accept any offices or
     directorships in the Company or any Group Company and perform such other
     additional duties in relation to the business of the Company or any Group
     Company as may from time to time be reasonably vested in or assigned to you
     by the Board and/or the CEO (as defined in clause 31 of this agreement).

2.4  obey the reasonable directions of the Company and comply with any lawful
     rules or regulations issued by the CEO and/or the Board from time to time;

2.5  keep the CEO (or the board of any other Group Company for whom you are
     carrying out your duties), folly informed and in a timely manner of any
     activities you are undertaking on the Company's or any Group Company's
     behalf, in such form as the CEO and/or the Board may reasonably require;

2.6  agree to carry out your duties and exercise your powers jointly with any
     other person appointed by the CEO and/or the Board in their discretion to
     act jointly with you in a temporary capacity, in the event that you are
     absent for more than 2 consecutive months, due to illness or for any other
     reason, and for the duration of the absence.

2.7  promptly disclose to the CEO and/or the Board full details of any
     wrongdoing, which you become aware of, by any employee of the Company or
     any Group Company where that

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     wrongdoing is material to that employee's employment by the relevant
     company or to the interests or reputation of the Company or any Group
     Company.

3.   OUTSIDE INTERESTS

3.1  Without prejudice to clause 2 above, you agree that during your employment,
     you will not be engaged, interested or concerned in any activity, office or
     outside business interests without the consent of the Board. Should you
     wish to hold any non-executive director positions in other companies, you
     must first seek the consent of the Board. Such consent will not be
     unreasonably withheld. You will disclose in writing to the Board any such
     activities, offices or outside business interests you may currently have,
     or which you subsequently wish to undertake and in the event that the Board
     requires you to cease the same or decline an opportunity, you will do so
     forthwith. For the avoidance of doubt consent will not be given inter alia
     in relation to any activities, offices or business interests which in the
     view of the Board, are similar to, or compete directly or indirectly with
     the business of the Company or any Group Company, or which could in the
     view of the Board, give rise to a conflict of interest or interfere with
     the efficient performance of your duties.

3.2  Subject to clause 3.1 you may, however, hold (directly or through nominees
     including your spouse, partner or minor children) by way of bona fide
     personal investment, any units of any authorised unit trust, and up to 3%
     of the issued shares, debentures or other securities of any private company
     or of any class of company whose shares are listed on a recognised
     investment exchange or dealt in the Alternative Investment Market. Any
     existing shareholding in excess of the 3% threshold acquired before the
     commencement of your employment with the Company may only be retained with
     the consent of the Board, such consent not to be unreasonably withheld.

4.   FREEDOM TO TAKE UP EMPLOYMENT WITH THE COMPANY

You undertake that any notice period you are required to give or to serve with a
previous employer has expired and that by entering into or performing any of
your duties for the Company, you will not be in breach of any other obligation
binding on you.

5.   PERIOD OF CONTINUOUS EMPLOYMENT:

Your period of continuous employment for the purposes of the Employment Rights
Act 1996 will commence on 27 September 2004. No employment with a previous
employer counts as part of your period of continuous employment with the
Company.

6.   TERM

6.1  Subject to clause 21 below and the remainder of this clause 6, your
     employment is terminable by either party giving to the other not less than
     12 months' written notice.

6.2  Subject to its rights under clause 21, the Company may in its absolute
     discretion choose to terminate your employment at any time and make you a
     payment in lieu of notice equivalent to your basic salary over any
     unexpired period of notice plus an additional

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     25% of your base salary in accordance with the provisions set out in clause
     10.1. This will be paid less tax, national insurance contributions and
     other deductions required by law.

6.3  In the event that your employment is (a) terminated by reason of a Change
     of Control, or (b) you resign due to a diminution in your position as a
     result of a Change of Control, up to six (6) months after the date the
     Company enters into a contract binding it to a Business Sale, Merger or
     Sale constituting a Change of Control (provided your employment is not
     summarily terminated in accordance with clause 21 of this Agreement), you
     will be entitled to a payment equal to that set out at clause 6.2 above.
     This payment will be made net of tax, national insurance contributions and
     other deductions required by law.

     No additional severance payments will be payable under the agreement in
     such circumstances. The payment detailed in this clause 6.3 will be paid
     within 7 days of your termination or resignation.

7.   PLACE OF WORK

Your place of work will initially be the Company's main office in Warwickshire,
wherever it may be situated, the location of which may change from time to time.
Further, you may be required from time to time, to perform your duties at the
premises of customers of the Company and will be expected to travel on the
business of the Company to the US and/or anywhere in the world.

8.   SALARY

You will be paid a basic salary of L136,000 per annum paid less tax,
national insurance contributions and any other deductions required by law. Your
salary will accrue on a day-today basis and will be payable monthly in arrears
on or about the last business day of the month. Your salary is paid in respect
of your duties both for the Company and any other Group Company for whom you are
required to work and includes any directors' fees to be paid to you.

Adjustments to your compensation will be considered on the anniversary of your
commencement of employment, or more often if the Board considers fit.

9.   EXPENSES

You will be reimbursed all out-of-pocket expenses reasonably and properly
incurred by you on the business of the Company or any Group Company provided you
produce to the Company such evidence of actual payment of the expenses concerned
as the Company reasonably requires.

10.  BENEFITS

10.1 BONUS. You are eligible to participate in the Company's bonus plan (the
     "Plan"). Based on the successful achievement by the Company of
     pre-determined goals and targets of the Company and the Parent Company (as
     defined in 31 of this agreement), and dependant on your own individual
     performance as assessed by the Company in its discretion, you

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     may qualify for a bonus of up to 50% of your base salary. The Plan results
     and payments will be determined following the plan year after the Company's
     annual audited results have been completed and announced. The Plan may be
     varied from time to time in the discretion of the Company, and the goals
     and targets are likely to vary from year to year. The fact that a bonus is
     paid in one year is no guarantee that bonuses will be paid in subsequent
     years. If your employment is terminated part way through a plan year you
     will be entitled to 50% of the bonus as described above, which will be 25%
     of your base salary. Bonuses are paid less tax, national insurance
     contributions and other deductions required by law.

10.2 PENSION. The Company will, subject to Inland Revenue limits and the rules
     of the particular plan both of which may vary from time to time, contribute
     15% of your basic salary in equal monthly instalments to a personal pension
     plan nominated by you. There is no contracting out certificate in relation
     to your employment.

10.3 PRIVATE MEDICAL EXPENSES INSURANCE. The Company does not currently operate
     a private health insurance scheme. The Company shall, however, reimburse
     you for up to a maximum of L2,000 per annum, which may be paid
     monthly, in respect to the costs associated with your current private
     health insurance premiums, which cover you and your eligible dependents.
     The Company will consider at least once each calendar year to increase this
     amount to take into account indexation and the rising cost of premiums. Any
     agreement to increase the Company's contribution to your private premiums
     will be set out in writing.

     If the Company sets up a Company private health insurance scheme in the
     future, you will be given the choice as to whether to remain with your
     private scheme or transfer to the Company scheme. If you transfer to the
     Company scheme you agree that the Company may cease reimbursing you for any
     costs associated with your current private health insurance premiums and
     subject to your meeting any conditions of eligibility, you will be covered
     by such a scheme subject to the rules of the scheme, which may vary from
     time to time. The Company may vary, withdraw or replace the scheme with a
     broadly equivalent one if it so chooses. This is a benefit in respect of
     which you will be liable to pay income tax.

10.4 LIFE ASSURANCE. The Company does not currently operate a life assurance
     scheme. The Company shall, however, reimburse you for up to a maximum of
     L85 per month, with respect to the costs associated with your current
     private life assurance premiums, which provide for 4 x your salary. The
     Company will consider at least once each calendar year to increase this
     amount to take into account indexation and the rising cost of premiums. Any
     agreement to increase the Company's contribution to your private premiums
     will be set out in writing.

     If the Company sets up a Company life assurance scheme in the future, you
     will be given the choice as to whether to remain with your private scheme
     or transfer to the Company scheme. If you transfer to the Company scheme
     you agree that the Company may cease reimbursing you for any costs
     associated with your current life assurance premiums. Your participation in
     the Company scheme is subject to your meeting any conditions of

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     eligibility (including medical examinations to the satisfaction of the
     relevant insurers and producing and completing any relevant paperwork) you
     will be covered free of charge by the Company's life assurance scheme
     subject to the rules of the scheme which may vary from time to time.

10.5 PERMANENT/DISABILITY HEALTH INSURANCE: The Company does not currently
     operate a permanent/disability health insurance scheme (the "Scheme"). The
     Company shall, however, reimburse you for up to a maximum of L195 per
     month, with respect to the costs associated with your current private
     Scheme. The Company will consider at least once each calendar year to
     increase this amount to take into account indexation and the rising cost of
     premiums. Any agreement to increase the Company's contributions to your
     private premiums will be set out in writing.

     If the Company sets up such a Scheme in the future, you will be given the
     choice as to whether you continue on your existing private scheme or
     transfer to the Company Scheme. If you transfer to the Company Scheme, you
     agree that the Company will cease reimbursing you for your current private
     premiums and you agree to abide by the terms of the Scheme, which may vary
     from time to time.

10.6 SHARE OPTIONS: The Company will grant to you options as detailed in the
     options offer letter dated 9 September 2004, subject to the rules of the
     Ocean Power Technologies, Inc. 2001 Stock Plan (the "Plan") which may be
     varied, amended or supplemented from time to time.

     If on termination of this Agreement whether lawfully or in breach of
     contract, you lose any of the rights or benefits under the Plan or in
     relation to any options you held immediately prior to such termination of
     this Agreement ("Other Options") which you would not have lost had the
     Agreement not been terminated (for example, you are not employed as at a
     vesting date and therefore such options which would have vested on that
     date lapse) you shall not be entitled by way of damages, to be compensated
     for the loss of rights or benefits under the Plan or in respect of any
     Other Options.

     You agree that if the Company so requires you will either (at the Company's
     discretion):

          (i) complete and execute an irrevocable agreement (in such form as
          determined by the Company from time to time) under which you will
          indemnify the Company and any Group Company, against the whole of any
          employer's national insurance contributions arising in respect of any
          gains which are treated as remuneration derived from your employment
          by virtue of Section 4(4)(a) Social Security Contributions and
          Benefits Act 1992 ("Share Option Gains"); or

          (ii) enter into a joint election with the Company or any Group Company
          (in such form as decided by the Company from time to time) for the
          whole of any liability for employer's National Insurance contributions
          arising in respect of any Share Option Gains to be transferred to you,

     within 21 days of the Company's written request for you to do so.

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10.7 In relation to clauses 10.3, 10.4 and 10.5 above, if a sum payable by the
     Company under these clauses by way of a reimbursement of the cost of your
     private insurance premiums shall be subject to a UK income tax liability,
     the Company shall pay to you an additional sum representing up to 100/60 x
     40% of the amount set out in clauses 10.3, 10.4 and 10.5 respectively. For
     the avoidance of doubt, you will not be entitled to such sums if you decide
     to join a Company plan or scheme as detailed in clauses 10.3, 10.4 and 10.5
     above and on your joining such a Company plan or scheme such reimbursements
     will cease.

11.  HOURS OF WORK

Your normal office hours are 9.00am to 6.00pm Monday to Friday, however, you
agree to work such additional hours without overtime or additional remuneration
as may be necessary for the proper and efficient performance of your duties. You
agree that the limit on average weekly working time set out in Regulation 4(1)
of the Working Time Regulations 1998 will not apply to you, although you may
withdraw your consent on giving the Company three months prior written notice.

12.  HOLIDAYS

12.1 The Company's holiday year runs from 1 January to 31 December.

12.2 You will be entitled to 30 days' paid holiday leave in each holiday year in
     addition to English public holidays.

12.3 You may carry forward 5 days untaken holiday to a subsequent holiday year.
     In the holiday year in which your employment terminates, however, any
     holiday carried over from the previous year will be automatically
     terminated.

12.4 All holiday must be taken at times agreed at least one month in advance
     with the CEO having regard to the needs of the Company (or any relevant
     Group Company's business). For the avoidance of doubt Regulations 15(1) to
     15(4) of the Working Time Regulations 1998 (dealing with dates when leave
     is taken) will not apply to your employment.

12.5 For the holiday year during which your employment commences or terminates,
     your holiday entitlement will be calculated on a pro rata basis.

12.6 On the termination of your employment with the Company, the Company may at
     its discretion:

     (a)  pay you in lieu of some or all of your accrued holiday, save that if
          you are dismissed for gross misconduct, the Company shall be under no
          obligation to pay you holiday pay in respect of accrued but untaken
          holiday in excess of any minimum holiday entitlement required by law
          for the year in question. Any holiday pay will be paid less applicable
          tax, national insurance contributions and other deductions required by
          law; or

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     (b)  deduct from your final salary payment (or in the event that this is
          insufficient) require you to pay to the Company an amount representing
          salary paid during holiday taken but not accrued by the date of
          termination of your employment.

     (c)  require you to take some or all of any holiday entitlement during your
          notice period (if you are dismissed with notice in accordance with
          clause 6 of this agreement), which will have accrued to you by the
          date of termination of your employment, which you have not yet taken.

13.  DEDUCTIONS FROM WAGES

Without prejudice to any other rights open to the Company, you agree that the
Company may deduct from any wages due to you, (including Company sick pay) sums
representing; the amount of any outstanding loans or advances made to you by the
Company; any other sums owing from you to the Company; any overpayment of salary
or expenses or payment made to you by mistake or through misrepresentation; and
any other sums authorised to be deducted by Section 13 of the Employment Rights
Act 1996. If you are unable to work due to accident or injury caused by a third
party and the Company continues to pay your salary and/or sick pay during your
absence and you recover damages from the third party, then the Company may
deduct (or you may be required to repay as the case may be) from your wages an
amount equal to any salary or sick pay paid to you by the Company during your
absence. Any repayment or deduction in these circumstances will be capped at the
amount of damages you recover from the third party in respect of the accident or
injury concerned.

14.  DATA PROTECTION

You consent to the Company holding and processing both personal data and
sensitive personal data (the latter includes your religious beliefs, your ethnic
or racial origin and information relating to any physical disability), for all
purposes relating to your employment. In particular you agree that the Company
can hold and process personal and sensitive personal data to pay and review your
remuneration and other benefits, provide and administer any such benefits,
provide information to the Inland Revenue (or other taxation authorities), the
police, other regulatory bodies, the Company's legal advisers and potential
purchasers of the Company or any business area in which you work, administer and
maintain personnel records (including sickness and other absence records), carry
out performance reviews, give references to future employers, and transfer
personal and sensitive personal data concerning you to the HR department of the
Parent Company.

15.  SICKNESS OR INJURY

15.1 The Company will pay you your normal salary for up to 12 weeks' absence due
     to sickness of injury in any period of twelve months, whether consecutive
     or not. Thereafter any Company sick pay is entirely at the discretion of
     the Board.

15.2 Company sick pay shall include any statutory sick pay payable to you under
     the then prevailing rules of the statutory sick pay scheme. The Company may
     deduct from Company sick pay an amount or amounts equal to any state
     sickness benefit to which you

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     are entitled or any payments made to you or for which you are eligible
     under any health insurance arrangement, effected from time to time by the
     Company on your behalf.

15.3 The Company reserves the right to require you to undergo a medical
     examination by the Company's doctor or, an independent medical practitioner
     and you agree that the doctor or independent medical practitioner may
     disclose to the Company the results of the examination and discuss with the
     Company and its professional advisers any matters arising from the
     examination as might impair you from properly discharging your duties. You
     also authorise your own doctor to provide the Company's doctor and/or
     independent medical practitioner with any relevant extracts from your
     medical notes. This clause is without prejudice to your statutory rights,
     (including your rights under the Access to Medical Reports Act 1988.

16.  CONFIDENTIALITY

16.1 During the course of your employment you will have access to and become
     aware of information, which is confidential to the Company. You undertake
     that you will not, save in the proper performance of your duties, make use
     of, or disclose to any person, (including for the avoidance of doubt any
     competitors of the Company), any of the trade secrets or other confidential
     information of or relating to the Company, or any user of the Company's
     services or any company, organisation or business with which the Company is
     involved in any kind of business venture or partnership, or any other
     information concerning the business of the Company which you may have
     received or obtained in confidence while in the service of the Company. You
     will likewise use your best endeavours to prevent the unauthorised
     publication or disclosure of any such trade secrets or confidential
     information.

16.2 This restriction shall continue to apply after the termination of your
     employment without limit in point of time but both during your employment
     and after its termination, shall cease to apply to information ordered to
     be disclosed by a Court or Tribunal of competent jurisdiction or otherwise
     required to be disclosed by law, or to information which becomes available
     to the public generally (other than by reason of your breaching this
     clause) without requiring a significant expenditure of labour skill or
     money. Nothing in this clause will prevent you making a "protected
     disclosure" within the meaning of the Public Interest Disclosure Act 1998.

16.3 For the purposes of this Agreement confidential information shall include,
     but shall not be limited to:-

     (a)  the Company's business and marketing strategy and plans;

     (b)  budgets, management accounts, bank account details and other
          confidential financial data of the Company;

     (c)  business sales and marketing methods, confidential techniques and
          processes used for development of the Company's products and services.

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     (d)  details of products and services being developed by the Company,
          including research and development reports, confidential aspects of
          the Company's technology and systems, including software source and
          object codes, confidential algorithms developed or used by the
          Company, information relating to proprietary computer hardware or
          software (including updates) not generally known to the public and
          details of IP solutions to accompany the Company's products; patent
          and trade mark applications in the course of preparation or
          consideration by the relevant authorities;

     (e)  confidential methods and processes, information relating to the
          running of the Company's business which is not in the public domain,
          including details of salaries, bonuses, commissions and other
          employment terms applicable within the Company;

     (f)  the names, addresses and contact details of any customers or
          Prospective Customers of the Company including customer lists in
          whatever medium this information is stored and the requirements of
          those customers or the potential requirements of Prospective Customers
          for any of the Company's products or services. Without prejudice to
          the foregoing, personal information provided to the Company by
          visitors to and users of any of its web sites,

     (g)  the terms on which the Company does business with its advertisers,
          customers and suppliers, including any pricing policy and price lists
          adopted by the Company and the terms of any partnership, joint venture
          or other form of commercial co-operation or agreement the Company
          enters into with any third party; the content of bids and tenders
          submitted by the Company to Potential Customers;

     (h)  software and technical information necessary for the development,
          maintenance or operation of any of the Company's websites and the
          source and object code of each website; and

     (i)  any other information which the Company is bound by an obligation of
          confidence owed to a third party, in particular the content of
          discussions or communications with any Prospective Customers or
          prospective business partners.

16.4 In this clause 16, any reference to "Company" includes any "Group Company"
     as defined in clause 31 and your undertaking to the Company in clause 16.1
     is given to the Company for itself and as trustee for each Group Company.

17.  DELIVERY UP OF THE COMPANY'S PROPERTY

17.1 You may not save in the proper performance of your duties or with the
     Company's permission, remove any property belonging to the Company or any
     Group Company, or relating to the affairs of the Company or any Group
     Company, from the Company's or any Group Company's premises, or make any
     copies of documents or records relating to the Company's or any Group
     Company's affairs.

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17.2 Upon the Company's request at any time, and in any event on the termination
     of your employment, you will immediately deliver up to the Company or its
     authorized representative, any plans, keys, mobile telephone, security
     passes, credit cards, customer lists, price lists, equipment, documents,
     records, papers, computer disks, tapes or other computer hardware or
     software (together with all copies of the same), and all property of
     whatever nature in your possession or control which belongs to the Company
     or any Group Company or relates to its or their business affairs. You will
     at the Company's request furnish the Company with a written statement
     confirming that you have complied with this obligation.

17.3 If you have any information relating to the Company or the Group or work
     you have carried out for the Company or any Group Company which is stored
     on a computer or laptop computer which computer or lap top does not belong
     to the Company, this must be disclosed to the Company and the Company shall
     be entitled to down load the information and/or supervise its deletion from
     the computer or laptop concerned.

18.  INTELLECTUAL PROPERTY RIGHTS, INVENTIONS AND MORAL RIGHTS

18.1 You hereby acknowledge and agree that all IPRs and Inventions (as defined
     in clause 31 of this Agreement) shall be the property of and shall belong
     free of charge and exclusively to the Company as it may direct whether or
     not the work was made at the direction of the Company, or was intended for
     the Company (subject to any applicable contrary legislative, regulatory or
     codified provision or judicial authority and to any rights of a joint
     inventor or maker/author).

18.2 To the extent that any IPRs or ownership of Inventions are not otherwise
     vested in the Company, you hereby assign and transfer all of them to the
     Company with full title guarantee by way of present assignment throughout
     the world.

18.3 You will promptly and fully disclose to the Board full details of any
     Inventions and IPRs.

18.4 At any time during your employment or thereafter, (despite the termination
     of this Agreement) and at the Company's expense, you will do all such acts
     and things (including execute such documents, take such actions and make
     such applications) as may be necessary (or as the Board may reasonably
     request) in order to substantiate, confirm or vest effectually any IPRs,
     ownership of Inventions or choses in actions relating to them (whether
     owned by the Company in accordance with this clause 18 or owned by you) and
     any other protection as to ownership or use of the same (in any part of the
     world) in the Company, or as the Company may direct, (jointly if necessary
     with any joint inventor or maker/author thereof). You hereby irrevocably
     appoint the Company for these purposes to be your attorney in your name and
     on your behalf to execute and do such acts and things and execute any such
     documents as set out above.

18.5 You agree that you will not at any time make use of or exploit the
     Company's Inventions, IPRs or other property for any purpose which has not
     been agreed by the Company in advance in writing by an authorised person.

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18.6 To the full extent permitted by applicable law, you irrevocably and
     unconditionally waive all of your moral rights in all territories of the
     world.

19.  GARDEN LEAVE

The Company shall be under no obligation to provide you with work during any
period of notice to terminate your employment (or any part thereof), whether
given by the Company or by you. During such period the Company may require you
not to attend at work and/or require you to cease carrying out your duties
altogether or having any business dealings with the Company's employees,
suppliers, advertisers, customers and agents and may exclude you from any
premises of the Company or any Group Company. You agree that you will, if
requested to do so, forthwith resign from all offices held by you in the Company
or any Group Companies and cease attending board meetings. You will continue to
receive your salary and all contractual benefits provided by your employment.
During such period of notice you may not be engaged or employed by or take up
any office or partnership in any other company, firm or business, or trade on
your own account without the written permission of the Board.

20.  SUSPENSION

Quite apart from the right to put you on garden leave set out in clause 19, the
Company may suspend you on full pay pending the outcome of a disciplinary
investigation or for health reasons. Whilst on suspension the Company may impose
the same conditions as apply to employees on garden leave.

21.  TERMINATION

21.1 The Company may terminate your employment without notice and without a
     payment in lieu of notice in the event that you:

     (a)  are guilty of gross misconduct or breach a fundamental term of your
          employment. Gross misconduct would include but is not limited to the
          willful misuse or disclosure of the Company's or any Group Company's
          confidential information or other intellectual property; attempts to
          solicit customers or potential customers of the Company or any Group
          Company to transfer business away from the Company or any Group
          Company for the purposes of a competitor, or employees to leave the
          Company or any Group Company; engaging in any form of sexual, racial
          or other harassment at work; or

     (b)  infringe any rules or regulations imposed by any regulatory or other
          external authority or professional body applicable to your employment
          or which regulate the performance of your duties and fail to remedy
          the infringement within 45 days of written notice from either the
          Company, the regulatory or other external authority or professional
          body advising of the infringement.

     (c)  act in a way which in the reasonable view of the Board brings you, the
          Company or any Group Company into disrepute, whether or not such act
          is directly related to the affairs of the Company or any Group
          Company; or

                                       11

<PAGE>

     (d)  become bankrupt have an interim order made against you under the
          Insolvency Act 1986 or make any composition or enter into any deed of
          arrangement with your creditors or the equivalent of any of these
          under any other jurisdiction; or

     (e)  are convicted of a criminal offence (other than one carrying only a
          non custodial sentence or a driving offence); or

     (f)  become disqualified from acting as a director of a company or resign
          as a director of the Company otherwise than at the request of the
          Company or with the consent of the Company or if required to do so
          under this Agreement or the Articles of Association of the Company; or

22.  OFFICES

22.1 You will on the termination of your employment, forthwith resign from all
     offices you hold in either the Company or any Group Company. You will not
     however otherwise (or save as required by law), resign your office as a
     director of the Company or any Group Company without the Board's consent.

22.2 You hereby irrevocably appoint the Company to be your attorney to execute
     any documents and do anything in your name to effect your resignation as a
     director of the Company or any Group Company should you fail to resign
     following a request from the Company to do so in accordance with clause
     22.1. A written notification signed by a director of the Company that any
     instrument, document or act falls within the authority conferred by this
     clause will be conclusive evidence that it does so.

22.3 Your employment shall terminate automatically and with immediate effect
     upon your ceasing to be a director of the Company, but other than under
     clause 21.1 (F), without prejudice to any rights you may have to damages or
     compensation arising out of the termination of this agreement.

23.  RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT

23.1 You agree that you will not, without the written permission of the Board,
     or for a period of 12 months following the termination of your employment
     (less any period you spend on garden leave pursuant to clause 19), and
     whether on your own behalf or on behalf of any individual, company, firm,
     business or other organisation, directly or indirectly:

     (a)  in connection with the carrying on of any business which competes in
          the Territory with any business of the Company or any Group Company
          with which you were involved in the 12 months prior to the termination
          of your employment, solicit or entice away from the Company or any
          Group Company the business of any customer or Prospective Customer
          with whom you had business dealings on behalf of the Company or any
          Group Company in the course of the 12 months prior to the termination
          of your employment, or about which customer, or Prospective Customer
          you are, (or someone reporting directly to you is), privy to
          confidential information gained as a result of employment by the
          Company or relevant Group Company at the date your employment
          terminates; or

                                       12

<PAGE>

     (b)  in connection with the carrying on of any business which competes in
          the Territory with any business of the Company or any Group Company
          with which you were involved in the 12 months prior to the termination
          of your employment, have business dealings (involving the provision of
          products or services of a type provided by the Company or any such
          Group Company at the date your employment terminates), with any
          customer or Prospective Customer of the Company or any Group Company
          with which customer or Prospective Customer you had business dealings
          on behalf of the Company or any Group Company in the course of the 12
          months prior to the termination of your employment, or about which
          customer or Prospective Customer you are, (or someone reporting
          directly to you is), privy to confidential information gained as a
          result of employment by the Company or relevant Group Company at the
          date your employment terminates; or

     (c)  seek to entice away from the Company or any Group Company any person
          employed or engaged by the Company or any Group Company at the date
          your employment terminates, as, or carrying out the functions of, a
          director, consultant, vice president, senior vice-president,
          engineers, customer-facing member of the sales team or employee
          involved in product development, or any other senior employee at the
          date your employment terminates and with whom you had dealings in the
          last 12 months of your employment with the Company. This restriction
          shall apply regardless of whether the solicitation involves a breach
          of contract on the part of the consultant, or director or employee
          concerned; and

     (d)  employ or engage or offer to employ or engage any person employed or
          engaged by the Company or any Group Company at the date your
          employment terminates, as, or carrying out the functions of, a
          director, consultant, vice president, senior vice-president,
          engineers, customer-facing member of the sales team or employee
          involved in product development, or any other senior employee at the
          date your employment terminates (or who would have been so employed
          had he or she not left the Company or any Group Company due to
          solicitation on your part in the 4 months prior thereto) and with whom
          you had dealings in the last 12 months of your employment with the
          Company. This restriction shall apply regardless of whether the
          employment involves a breach of contract on the part of the
          consultant, director or employee concerned.

23.2 You agree that you will not, without the written permission of the Board,
     during your employment with the Company, or for a period of 6 months
     following the termination of your employment (less any period you spend on
     garden leave pursuant to clause 19), be engaged or employed by, or
     otherwise involved in any company firm or business which competes in the
     Territory with any business of the Company or any Group Company with which
     you are involved in the last 12 months of your employment under this
     Agreement.

23.3 Each of the sub-clauses contained in clause 23 constitutes an entirely
     separate and independent covenant. If any restriction is held to be invalid
     or unenforceable by a court of competent jurisdiction, it is intended and
     understood by the parties that such invalidity or unenforceability will not
     affect the remaining restrictions or the validity of the rest of

                                       13

<PAGE>

     the Agreement and that if any such restriction would be valid if some part
     thereof (including some part of any term defined in clause 31 or elsewhere
     in this Agreement) were deleted, such restrictions shall apply with such
     modification as may be necessary to make them effective.

23.4 You agree that if you receive an offer of employment, consultancy,
     directorship or other office or partnership during the continuance in force
     of any of the above, you will prior to acceptance of an offer, provide the
     party making the offer with copies of this clause and details of your
     notice period, the restrictions on your use and disclosure of confidential
     information and the clauses dealing with intellectual property, inventions
     and moral rights.

23.5 You acknowledge that:

     (a)  each of the restrictions in clause 23 goes no further than is
          necessary to protect the legitimate business interests of the Company
          and any Group Company; and

     (b)  the Company is entering into this Agreement not only for itself but
          also as trustee for each Group Company and with the intention that the
          Company and/or any Group Company will be entitled to seek the
          protection of and enforce each of its restrictions directly against
          you. If requested to do so by the Company however, you will at any
          time enter into like restrictions as those contained in this clause 23
          with any other Group Company.

23.6 Nothing in this clause 23 shall prohibit you from holding the investments
     and interests set out in clause 3 above.

23.7 Following the date your employment terminates, you will not:

     (a)  represent yourself as being in any way connected with the business of
          the Company or any Group Company (except to the extent agreed by such
          Company);

     (b)  represent, promote or advertise or refer to your previous connection
          with the Company or any Group Company in such a way as to utilise any
          of their goodwill;

     (c)  carry on, cause or permit to be carried on any business under or using
          any name, trade mark, service mark, style, logo, get-up or image which
          is or has been used by the Company or any Group Company, or which in
          the reasonable opinion of the Board, is calculated to cause confusion
          with such a name, trade mark, service mark, style, logo, get-up or
          image or infer a connection with the Company or any Group Company.

24.  DISCIPLINARY AND GRIEVANCE PROCEDURES

Copies of the Company's disciplinary and grievance policies are available from
the CEO. These policies do not form part of this Agreement, do not have
contractual force and may be varied from time to time.

                                       14

<PAGE>

25.  COLLECTIVE AGREEMENTS

There are no collective Agreements, which directly affect your terms and
conditions of employment.

26.  PARTICULARS OF EMPLOYMENT

This Agreement includes the particulars of employment required by the Employment
Rights Act 1996.

27.  SECURITY

27.1 All communications, whether by telephone, email, fax, or any other means,
     which are transmitted, undertaken or received using Company property or on
     Company premises will be treated by the Company as work related and are
     subject to interception, recording and monitoring without further notice,
     save as set out below. You should not regard any such communications as
     private.

27.2 Interception, recording and monitoring of communications is intended to
     protect the Company's business interests, for example but without
     limitation, for the purposes of quality control, security of communication
     and IT systems, record-keeping and evidential requirements, detection and
     prevention of criminal activity or misconduct and to assist the Company to
     comply with relevant legal requirements. Such interception, recording and
     monitoring will not be undertaken for prurient interest.

27.3 Intercepted communications may be used as evidence in disciplinary or legal
     proceedings, including in any such action against you.

27.4 By transmitting, undertaking or receiving communication using Company
     property or on Company premises you consent to the above terms.

28.  ENTIRE AGREEMENT

28.1 This Agreement is in substitution for any previous contract of employment
     between the Company and you, which shall be deemed to have been terminated
     by mutual consent and without giving rise to claims against the Company.
     You represent and warrant that you are not entering into this Agreement in
     reliance on any representation not expressly set out herein. Any share
     options you hold under the Company or any Group Company share option
     scheme, which is still in force shall not be affected. Such options are
     governed by the terms of the relevant share option scheme as varied from
     time to time.

28.2 The termination of this Agreement howsoever arising shall not affect any of
     the provisions of this Agreement which are expressed to operate or have
     effect or are capable of operation or effect after such termination.

                                       15

<PAGE>

29.  NOTICES

Any notice you are required to give under this Agreement should be handed or
delivered to another member of the Board at the Company's main office from time
to time. Any notice the Company is required to give you should be handed to you
or delivered to your last notified address. These notices will be deemed to have
been given on the date of receipt if hand delivered and if posted, on the day on
which in the ordinary course of post they would be delivered.

30.  THIRD PARTIES

This Agreement constitutes an agreement solely between the Company and you, and,
save where otherwise provided, for the purposes of the Contracts (Rights of
Third Parties) Act 1999, nothing in this contract confers or purports to confer
on a third party any benefit or any right to enforce a term of this contract.

31.  INTERPRETATION

31.1 Any reference in this Agreement to:-

31.2 any Act or delegated legislation includes any statutory modification or
     re-enactment of it or the provision referred to;

31.3 "Board" shall mean the Board of Directors of the Company from time to time
     or any person or any committee of the Board duly appointed by it;

31.4 "Business Sale" means the sale of all or substantially all the undertaking
     and assets of the Group in one transaction or a series of transactions;

31.5 "CEO" shall mean the Chief Executive Officer of Ocean Power Technology
     Inc.;

31.6 "Change of Control" means: (a) Business Sale (b) Merger; (c) Sale PROVIDED
     ALWAYS THAT a Group Reconstruction shall not amount to a Change of Control;

31.7 "Group" shall mean the Company and its Group Companies;

31.8 "Group Company" means a company which from time to time is a subsidiary or
     a holding company of the Company or a subsidiary of such holding company
     and "subsidiary" and "holding company" have the meanings attributed to them
     by section 736 of the Companies Act 1985;

31.9 "Group Reconstruction" shall mean: (a) a sale, transfer or disposition of
     the entire issued share capital of the Company to a company, the
     shareholders of which are substantially the same as those of the Company in
     substantially the same proportions; (b) a sale of all or substantially all
     the undertaking and assets of the Group in one transaction or a series of
     transactions to a company, the shareholders of which are substantially the
     same as those of the Company in substantially the same proportions; or (c)
     a scheme or reconstruction or arrangement whereby the entire issued share
     capital of the Company is

                                       16

<PAGE>

     cancelled by court order, the Company becomes owned by a company, the
     shareholders of which are substantially the same as those of the Company in
     substantially the same proportions;

31.10 The words "include" and "including" and "in particular" shall be construed
     as being by way of illustration only and shall not limit the generality of
     the preceding words;

31.11 "IPRs" (Intellectual Property Rights) means, without limitation, all
     present and future rights of whatever description (as the same may be
     extended or amended) throughout the world in Inventions and intellectual
     property including but not limited to patents, copyright, database rights,
     know how, trade secrets, domain names, trade marks and design right (in
     either case whether registered or not) including applications for the grant
     of any such rights and all rights of registration, extension and renewal
     thereof, which are created by you during the course of your employment or
     using Company and or Group Company's assets;

31.12 "Inventions" shall mean, without limitation, any software programs, or
     subroutines, source or object code, algorithms, improvements, inventions,
     technology, formulae, discoveries, design, ideas, processes, techniques,
     know-how, data, models and prototypes whether or not relating to devices,
     products, services, processes, equipment or systems of the Company and each
     Group Company, which are made, originated, discovered or reduced to
     practice by you, which are created by you during the course of your
     employment or using Company assets;

31.13 "Merger" shall mean, a merger or consolidation of the Company with any
     other company or corporation where, as a result of such merger or
     consolidation, the voting securities of the Company outstanding immediately
     prior thereto do not continue to represent more than fifty percent 50% of
     the total voting power represented by the voting securities of the Company
     or such surviving entity outstanding immediately after such merger or
     consolidation;

31.14 "Sale" shall mean the sale, transfer or disposition of any part of the
     Company's share capital to any person resulting in that person, together
     with any person acting in concert with such person, holding more than 50%
     of the Company's issued share capital;

31.15 "Parent Company" shall mean Ocean Power Technologies Inc;

31.16 "Prospective Customer" means any person with whom the Company (or any
     Group Company) is in negotiations or is tendering for the supply of its
     goods and services;

31.17 "the Territory" means England, the remainder of the UK or any other
     country or smaller geographical area in which the Company or any Group
     Company is carrying on, or is intending to carry on business at the date
     your employment terminates with which you have been involved in the
     preceding 12 months.

                                       17

<PAGE>

32.  GOVERNING LAW

Your terms of employment with the Company are governed by English law and the
parties submit to the exclusive jurisdiction of the English Courts. The Company
may however enforce the Agreement in any other courts of competent jurisdiction.

IN WITNESS WHEREOF this Deed has been executed and delivered as a deed on the
date set out above.

EXECUTED AS A DEED
OF THE COMPANY ACTING BY:-
                           ------------------------

Director
                     ------------------------------

Director/Secretary
                     ------------------------------

SIGNED AS A DEED
BY THE EMPLOYEE:-
                  ---------------------------------

in the presence of:-

Signature of Witness
                     ------------------------------
Name of Witness      Charles F. Dunleavy
Address of Witness   3 Waterford Place
                     Newtown, PA USA
Occupation           Financial Executive

                                       18<PAGE>

                                                                   EXHIBIT 10.15

O.P.T.

Ocean Power Technologies, Inc.
1590 Reed Road
Pennington, NJ 08534 USA
609-730-0400, Fax: 609 730-0404

September 30, 2005

John. John A. Baylouny
34 Old Mill Drive
Denville, NJ 07834                      By Fax
                                        973-328-2638

Dear John:

Ocean Power Technologies, Inc. ("OPT" or the "Company") hereby offers to you the
position of Senior Vice President, Engineering of Ocean Power Technologies,
Inc., reporting to me. As such, your duties and responsibilities will be those
duties and responsibilities consistent with your position as may from time to
time be assigned by me, including your focus on the Company's engineering and
commercial roll-out of its technology.

OPT may add to or alter your position and responsibilities as deemed appropriate
in the future. The following responsibilities are part of your duties: (a)
devote attention, labor, skill and energy to the business of OPT and diligently,
and to the best of your ability, perform all duties incident to your employment
as described in this letter, and (b) use your best efforts to promote the
interests, goodwill and welfare of OPT.

Compensation for your services, subject to the terms of this letter, shall be
salary of $17,083.33 monthly, which is equivalent to $205,000.00 on an annual
basis, for as long as you are employed or until a change is made by OPT to your
salary. In addition to this base salary, you will be eligible to receive a bonus
of up to 35% of your base salary. To be eligible to receive the bonus, you must
be employed by the Company as of the day that the Company pays the bonus. You
shall be expected to work during OPT's normal operating hours, as well as any
additional hours needed in order to complete your assigned tasks. Payments to
you shall be less all amounts required to be withheld by Federal, State and all
applicable income tax laws, regulations and rulings. You will receive reviews of
your job performance in accordance with OPT's policies. Adjustments to your
compensation, as well consideration for bonus and stock option awards, if any,
will be considered on an annual basis. In addition, the Board of Directors of
OPT has approved granting you at the time you commence employment with the
Company, options to purchase 300,000 shares of the common stock of OPT. Of the
option grant, 100,000 shares will immediately vested at the time of the grant,
and 200,000 shares will be vested over five years, i.e. 40,000 shares vested at
each anniversary of the date of grant. The term of these options will be for a
period of ten (10) years from the date of grant, in accord with the Company's
standard form of stock option agreement. If your employment with OPT is
terminated (i) without "Cause", or (ii) upon any "Change of Control" or OPT, all
the unvested portions of the 200,000 share grant shall vest immediately upon
such termination.

<PAGE>

In addition to the compensation stated in this offer, during your employment you
will be entitled to participate in all employee benefit plans and programs now
or in the future maintained by OPT and offered to all employees of the Company,
as well as those offered to key employees of the Company, so long as you meet
any applicable eligibility requirements. You also will receive vacation time to
be accrued and administered in accordance with OPT's policies, starting with
annual paid vacation of four weeks. In addition, you will be permitted to use up
to five paid sick days. You will also receive a total of ten holidays with pay,
each year.

By accepting this offer, you recognize and acknowledge that you may have access
to certain idea, processes, strategies, trade secrets, methods of operation or
other non-public information ("Confidential Information") of OPT and that all
such information constitutes valuable, special and unique property of OPT. You
agree that you will not, without the prior written consent of OPT, disclose or
authorize or permit anyone under your direction to disclose to anyone not
properly entitled thereto any such Confidential Information relative to the
business, technology, operations, financial condition or services of OPT or any
subsidiary. Accordingly, as part of your acceptance of this offer, you agree to
execute and be bound by the attached Proprietary Information, Restrictive
Covenant and Inventions Agreement ("Agreement").

By accepting this offer, you further represent that you are not bound by any
employment contract, restrictive covenant or other restriction preventing you
from entering into employment with OPT and carrying our your responsibilities to
the Company or which in any way otherwise interferes with or is in conflict with
such employment.

This letter shall not be construed as an agreement, either express or implied,
to employ you for any stated term, and shall in no way alter OPT's policy of
employment at-will, under which both you and OPT remain free to terminate the
employment relationship at any time, with or without notice and with or without
Cause (as defined below). In the case of your termination by the Company for any
reason other than by the Company for Cause, you will receive the following
severance: (a) if such termination occurs within the first 12 months of
employment, you will receive 3 months' severance in form of base pay; (b) if
such termination occurs after the first twelve months of employment, you will
receive 6 months' severance in the form of base pay. Such severance amounts will
be made by the Company on a monthly basis, consistent with the Company's regular
payroll practices. In addition, such severance payments will be conditional upon
the execution by you of a General Release of all claims against the Company. All
payments to your hereunder shall be less taxes and any other deductions required
by law. Except as provided to the contrary in this letter agreement, options
granted to you by the Company shall cease to vest on the actual date of
termination for any reason.

For purposes of this Agreement:

"Cause" means a termination of your employment by the Company because you have
done any of the following: (a) materially breached or materially failed to
perform your duties under applicable law, (b) failed to follow lawful directives
of the Board, or any executive officer to whom you report, (c) failed to follow
the Company's policies and procedures in effect from time to time, (d) committed
an act of dishonesty in the performance of your duties or engaged in willful
misconduct detrimental to the business of the Company, (e) been indicted on
felony charges, (f) been convicted of misdemeanor charges involving any crime of
moral turpitude,

<PAGE>

(g) breached in any material respect or failed to perform in any material
respect your obligations and duties or any Agreement between you and the
Company, or (h) violated your restrictive covenants with the Company (including,
without limit, your noncompete, nonsolicit, nonhire, confidentiality
obligations, and intellectual property transfer obligations regarding the
ownership of intellectual property created or developed, in whole or in part, by
your while an employee of the Company.

"Change in Control" shall have the meaning set forth in Rule 405 of the
Securities Act of 1933.

This letter and the Agreement attached constitute the entire offer to you and,
if you accept, they shall constitute the entire agreement and shall be governed
by the laws of the state of New Jersey. If you agree to the terms of this offer,
please sign and date below, as well as on the attached Agreement, on both the
originals provided, returning one of each original to me.

Should you have any questions concerning this offer, or any other question about
the Company and this position, please contact me. I look forward to hearing from
you.

Sincerely,

-------------------------------------
Dr. George W. Taylor
Chief Executive Officer

I have read and understand this letter. The foregoing correctly sets for the
terms of my employment with OPT

                                        DATE:
-------------------------------------         ------------------------

<PAGE>

                         OCEAN POWER TECHNOLOGIES, INC.

                PROPRIETARY INFORMATION, RESTRICTIVE COVENANT AND
                       INVENTIONS AGREEMENT ("AGREEMENT")

As an employee of OCEAN POWER TECHNOLOGIES, INC., or any of its subsidiaries or
affiliates (together, the "Company"), and as a condition of my employment by the
Company and in consideration of the compensation now and hereafter paid to me, I
agree to the following:

1.   MAINTAINING CONFIDENTIAL INFORMATION

     (A) COMPANY INFORMATION - I agree at all times during the term of my
     employment and thereafter to hold in strictest confidence, and not to use,
     except for the benefit of the Company, or to disclose to any person, firm
     or corporation, without the written authorization of the Board of Directors
     of the Company, any trade secrets, confidential knowledge, data or other
     proprietary information of the Company. By way of illustration and not
     limitation, such Company information shall include information relating to
     products, processes, know-how, designs, formulas, methods, samples, media
     and/or cell lines, developmental or experimental works, improvements,
     discoveries, plans for research, new products, marketing and selling,
     business plans, budgets and unpublished financial statements, licenses,
     prices and costs, suppliers and customers, and information regarding the
     skills and compensation of other employees of the Company.

     (B) FORMER EMPLOYER INFORMATION - I agree that I will not, during my
     employment with the Company, improperly use or disclose any proprietary
     information or trade secrets of my former or concurrent employers or
     companies, if any, and that I will not bring onto the premises of the
     Company any unpublished documents or any property belonging to my former or
     concurrent employers or companies unless previously and specifically
     consented to in writing by said employers or companies.

     (C) THIRD PARTY INFORMATION- I recognize that the Company has received and
     in the future will receive confidential or proprietary information from
     third parties subject to a duty on the Company's part to maintain the
     confidentiality of such information and, in some cases, to use it only for
     certain limited purposes. I agree that I owe the Company and such third
     parties, both during the term of my employment and thereafter, a duty to
     hold all such confidential and proprietary information in the strictest
     confidence and not to disclose it to any person, firm or corporation
     (except in a manner that is consistent with the Company's agreement with
     the third party) or use it for the benefit of anyone other than the Company
     or such third party (consistent with the Company's agreement with the third
     party), unless expressly authorized to act otherwise by an officer of the
     Company.

2.   ASSIGNMENT OF INVENTIONS AND ORIGINAL WORKS

     (A) INVENTIONS AND ORIGINAL WORKS ASSIGNED TO THE COMPANY - I agree that I
     will make prompt written disclosure to the Company, will hold in trust for
     the sole right and benefit of the Company, and hereby assign to the Company
     all my right, title and interest in and to any ideas, inventions, original
     works or authorship, developments,

<PAGE>

     improvements or trade secrets which I may solely or jointly conceive or
     reduce to practice, or cause to be conceived or reduced to practice, during
     the period of my employment with the Company.

     I acknowledge that all original works for authorship which are made by me
     (solely or jointly with others) within the scope of my employment and which
     are protectable by copyright are "works made for hire," as that term is
     defined in the United Stations Copyright Act (17 U.S.C., Section 101).

     (B) INVENTIONS AND ORIGINAL WORKS ASSIGNED TO THE UNITED STATES - I hereby
     assign to the United States government all my right, title and interest in
     and to any and all inventions, original works of authorship, developments,
     improvements or trade secrets whenever full title to same is required to be
     in the Unites States by a contract between the Company and the United
     States or any of its agencies.

     (C) OBTAINING LETTERS PATENT, COPYRIGHT REGISTRATIONS AND OTHER PROTECTIONS
     - I will assist the Company in every proper way to obtain and enforce
     United States and foreign proprietary rights relating to any and all
     inventions, original works of authorship, developments, improvements or
     trade secrets of the Company in any and all countries. To that end I will
     execute, verify and deliver such documents and perform such other acts
     (including appearing as a witness) that the Company may reasonable request
     for use in applying for, obtaining, perfecting, evidencing, sustaining and
     enforcing such proprietary rights and the assignment thereof. In addition,
     I will execute, verify and deliver assignments of such proprietary rights
     to the Company or its designee. My obligation to assist the Company with
     respect to proprietary rights in any and all countries shall continue
     beyond the termination of my employment, but the Company shall compensate
     me at a reasonable rate after my termination for the time actually spent by
     me at the Company's request on such assistance.

     In the event the Company is unable for any reason, after reasonable effort,
     to secure my signature on any document needed in connection with the
     actions specified in the preceding paragraph, I hereby irrevocably
     designate and appoint the Company and its duly authorized officers and
     agents as my agent and attorney-in-fact, to act for and in my behalf to
     execute, verify and file any such documents and to do all other lawfully
     permitted acts to further the purposes of the preceding paragraph with the
     same legal force and effect as if executed by me. I hereby waive and
     quitclaim to the Company any and all claims of any nature whatsoever which
     I now or may hereafter have for infringement of any proprietary rights
     assigned to the Company.

     (D) OBLIGATION TO KEEP THE COMPANY INFORMED - In addition to my obligations
     under paragraph 2(a) above, during the period of my employment I will
     promptly disclose to the Company fully and in writing all patent
     applications filed by me or on my behalf. I agree to keep and maintain
     adequate and current records (in the form of notes, sketches, drawings and
     in any other form that may be required by the Company) of all proprietary
     information developed by me and all inventions made by me during the period
     of my employment by the Company, which records shall be available to and
     remain the sole property of the Company at all times.

<PAGE>

3.   NON-COMPETITION

     I agree that, during my employment with the Company and for a period of one
     (1) year after termination of my employment with the Company, I will not,
     without the Company's express written consent, engage in any consulting,
     employment or business that is directly or indirectly competitive with the
     Company or assist others in any business that is competitive with the
     Company. A company shall be considered "competitive" with the Company if
     such company engages in any line of business in competition with the ocean
     energy converter services and/or products with which I was, directly or
     indirectly, engaged while an employee of the Company. However, this
     non-competition provision will not be interpreted to preclude me from
     consulting for, or being employed by, a company that could be considered
     competitive with the Company if my position or work with that company will
     be with a division, affiliate, operational area, or business/product
     lines(s) that is/are unrelated to the product and/or service lines with
     which I worked while employed by OPT. In such case, the provisions of
     section 1 of this agreement will apply.

4.   NON-SOLICITATION/NON-INTERFERENCE

     (A) EMPLOYEES AND INDEPENDENT CONTRACTORS - During my employment and for a
     period of one (1) year after termination of my employment with the Company,
     I will not recruit, solicit, or hire, or assist others in recruiting,
     soliciting or hiring, any past or present employee, director, contractor or
     other business associate (collectively each a "Business Relation") or
     otherwise induce any Business Relation to terminate or cease his/her
     employment or other business relationship with the Company. The term
     Business Relation shall include those individuals or entities who were
     employed, engaged or associated with the Company during my employment or,
     if after the termination of my employment, within the twelve (12) month
     period prior to the termination of my employment.

     (B) CLIENTS, CUSTOMERS AND BUSINESS CONTACTS - During my employment and for
     the period of one (1) year after termination of my employment with the
     Company, I will not solicit, divert, or take away, or attempt to solicit,
     divert or take away the business or patronage of any of the clients,
     customers, business contacts or accounts of the Company which were
     contacted, solicited or served by me at any time during my employment with
     the Company or regarding which I had access to substantive confidential
     information.

5.   NO CONFLICTING OBLIGATIONS

     I represent that my performance of all the terms of this Agreement and as
     an employee of the Company does not and will not breach any agreement or
     obligation of mine relating to any time prior to my employment by the
     Company. I have not entered into, and I agree I will not enter into, any
     agreement either written or oral in conflict herewith.

6.   RETURN OF COMPANY PROPERTY

     When I leave the employ of the Company or upon any request from the
     Company, I will deliver to the Company (and will not keep in my possession,
     recreate or deliver to anyone

<PAGE>

     else) any and all devices, records, data, notes, reports, proposals, lists,
     correspondence, specifications, drawings, blueprints, sketches, materials,
     equipment, other documents or property, together with all copies thereof
     (in whatever medium recorded) belonging to the Company, its successors or
     assigns whether kept at the Company, home or elsewhere. I further agree
     that all Company property, including disks and other storage media and
     filing cabinets or other work areas in subject to inspection by Company
     personnel at any time with or without notice.

7.   NOTIFICATION OF NEW EMPLOYER

     In the event that I leave the employ of the Company, I hereby consent to
     the notification of my new employer of my rights and obligations under this
     Agreement.

8.   LEGAL AND EQUITABLE REMEDIES

     Because my services are personal and unique and because I may have access
     to and become acquainted with the proprietary information of the Company,
     the Company shall have the right to enforce this Agreement and any of its
     provisions by injunction, specific performance or other equitable relief,
     without bond and without prejudice to any other rights and remedies that
     the Company may have for a breach of this Agreement.

9.   GENERAL PROVISIONS

     (A) NOT AN EMPLOYMENT CONTRACT - I agree and understand that nothing in
     this Agreement shall confer any right with respect to continuation of my
     employment by the Company, nor shall it interfere in any way with my right
     or the Company's right to terminate my employment at any time, with or
     without cause.

     (B) GOVERNING LAW; CONSENT TO PERSONAL JURISDICTION - This Agreement will
     be governed by and construed according to the laws of the State of New
     Jersey, excluding conflicts of laws principles. I hereby expressly consent
     to the personal jurisdiction of the state and federal courts located in New
     Jersey for any lawsuit filed there against me by the Company arising from
     or relating to this Agreement.

     (C) ENTIRE AGREEMENT - This Agreement sets forth the final, complete and
     exclusive agreement and understanding between the Company and me relating
     to the subject matter hereof and supersedes all prior and contemporaneous
     understandings and agreements relating to its subject matter. No
     modification of or amendment to this Agreement, nor any waiver of any
     rights under this Agreement, will be effective unless in writing and signed
     by both the Company and me. Any subsequent change or changes in my duties,
     salary or compensation will not affect the validity or scope of this
     Agreement.

     (D) SEVERABILITY - If one or more of the provisions in this Agreement are
     deemed unenforceable by law, then the remaining provisions will continue in
     full force and effect.

     (E) SUCCESSORS AND ASSIGNS - This Agreement will be binding upon my heirs,
     executors, administrators and other legal representatives and will be for
     the benefit of the Company, its successors and its assigns.

<PAGE>

     (F) SURVIVAL - The provisions of this Agreement shall survive the
     termination of my employment and the assignment of this Agreement by the
     Company to any successor in interest of other assignee.

     (G) WAIVER - No Waiver by the Company of any breach of this Agreement shall
     be waiver of any preceding or succeeding breach. No waiver by the Company
     of any right under this Agreement shall be construed as a waiver of any
     other right. The Company shall not required to give notice to enforce
     strict adherence to all terms of this Agreement.

     (H) NOTICE - Any notices required or permitted hereunder shall be given to
     the appropriate party at the address specified below or at such other
     address as the party shall specify in writing. Such notice shall be deemed
     given upon personal delivery, or sent by certified or registered mail,
     postage prepaid, three (3) days after the date of mailing.

This Agreement shall be effective as of the first day of my employment with the
Company, namely: _____________________, 20__.

I UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING
MY EMPLOYMENT, AND RESTRICTS MY RIGHT TO DISCLOSE OR USE THE COMPANY'S
PROPRIETARY INFORMATION DURING OR SUBSEQUENT TO MY EMPLOYMENT.

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

Dated: October 2, 2005                  /s/ John A. Baylouny
                                        ----------------------------------------
                                        Signature

                                        /s/ John A. Baylouny
                                        ----------------------------------------
                                        Printed Name of Employee

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