Document:

EXHIBIT 10.9

                              CONSORTIUM AGREEMENT

         This Consortium  Agreement (the "Agreement ") is made as of May 1, 2005
(the "Effective Date") by and between Atlantic Hydrogen Inc. ("AHI"),  a private
corporation, and Hydrogen Engine Center ("HEC") a private corporation.

IN  CONSIDERATION  of the mutual  covenants  contained herein and other good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged  by the parties  hereto,  the parties hereto  covenant and agree as
follows:

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

Capitalized  terms used herein and not defined  herein  shall have the  meanings
ascribed thereto in the Contribution Agreement (as hereinafter defined).

2.       Project
         -------

This  Agreement   relates  to  a  project   entitled   CARBONSAVERTM:   GHG-Free
Methane-to-Hydrogen System Integration (hereinafter referred to as the "Project"
or the "Eligible  Project") and assigned  contract number  SDTC-2004-A-649.  The
Project is described in the proposal (the  "Proposal")  dated July 21, 2004, and
any updates to the Proposal as set out in the Contribution Agreement,  submitted
to  Sustainable  Development  Technology  Canada  ("SDTC") by AHI (the "Eligible
Recipient") to develop and demonstrate the technology  described therein for the
purpose of  commercializing  it, for which the Eligible Recipient has applied to
SDTC for financial assistance.

3.       The Consortium Agreement
         ------------------------

The parties hereto are members of the Consortium described in the Proposal.

4.       Contribution Agreement
         ----------------------

4.1 AHI is hereby  authorized by the other  members of the  Consortium to submit
the  Proposal to SDTC and to apply for  funding  from SDTC as  described  in the
Proposal.

4.2 AHI, as the Eligible Recipient,  is hereby authorized by each member of the
Consortium to enter into an agreement (the  "Contribution  Agreement") with SDTC
relating  to the Project and the funding for the Project to be provided by SDTC,
on such terms and conditions, and containing such covenants, representations and
warranties as the Eligible  Recipient,  in its sole  discretion,  may agree upon
with SDTC.

4.3 Each member of the Consortium  hereby  authorizes the Eligible  Recipient to
receive funds from SDTC pursuant to the  Contribution  Agreement and to perform,
on its own behalf,  and on behalf of the  Consortium,  all of the obligations of
the Eligible Recipient contained therein.

                                      -5-
<PAGE>

5.       Project Management
         ------------------

AHI will act as the lead proponent on the project and will  coordinate,  via the
project work plan and budget, all activities with, SDTC,  sub-contracted parties
and consortium participants.

HEC will ship agreed genset  assemblies to the AHI contracted  facilities at UNB
in Fredericton N.B. where the bulk of assembly, integration, testing, tuning and
benchmarking of CS systems coupled with HEC modified internal combustion engines
and PrecisionH2 Power assemblies will be carried out under this agreement.

In addition,  under the terms of this agreement,  it is understood that HEC will
send  its  technical  support  personnel  to the AHI  facility  during  critical
integration  periods,  as defined in the project  work plan,  as well as provide
required  training to on site  personnel.  In addition,  HEC shall supply remote
technical  support  services  via  telephone  and Internet to ensure that proper
operation of supplied equipment is maintained at all times.

Once in lab integration,  testing and configuration  work is completed the final
assemblies  will be put into  commercial  demonstration  at a client site in New
Brunswick (to be determined).  It is understood  that HEC will provide  required
field support for these demonstration sites under this agreement.

In the event that any of the  equipment  supplied  by HEC should fail during the
course of the project, during the course of its operation as provided for in the
project work plan, EEC agrees to repair or replace  required  sub-assemblies  at
its  expense  within a timeframe  that will  ensure  that the project  work plan
timing is not obstructed.

The table below  summarizes  the equipment and services to be supplied by HEC to
the project along with a breakdown of billable vs. in-kind activities.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
<S>                           <C>         <C>                 <C>                       <C>
Modified Internal             HEC         Designated          Financial Schedule        Schedule of
Combustion Engines            Supply      Installation        of charges to AHI         eligible in-kind
to be provided as             Date to     location                                      contributions by
follows:                      AHI                                                       HEC
-----------------------------------------------------------------------------------------------------------------
Supply of a 5kW               Q3          UNB - AHI                    $ 58,022                 $ 58,021
genset and related            2005        lab demo
engineering, travel,
materials & software
-----------------------------------------------------------------------------------------------------------------
Supply of a 10W               Q3          AHI/UNB test                 $ 49,016                 $ 49,018
genset and related            2006        facility
engineering, travel,
materials & software
-----------------------------------------------------------------------------------------------------------------
Supply of a 50kW              Ql          Integration                  $ 54,000                 $ 54,000
genset and related            2007        testing demo site
engineering, travel,                      TBD
materials & software
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -2-
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
<S>                           <C>         <C>                          <C>                      <C>
Supply of 3 50kW              Q3          OPTIONAL                     $ 25,000                 $ 25,000
gensets (to be                2007        Installation at
configured in 2+1                         selected site
assembly for
commercial
demonstration of
125kW capacity
system)
-----------------------------------------------------------------------------------------------------------------
                                                                      $ 186,039                 $186,039
                                 Total $ 372,078
-----------------------------------------------------------------------------------------------------------------
</TABLE>

It is  understood  that HEC will  supply  the above  goods and  services  to the
project with the intention of taking part in initial integration,  demonstration
and  benchmarking of the novel technology  configuration  that is the subject of
this  collaboration.  In  recognition  of the fact  that  there is an  important
element of research in the designated  project plan,  for which this  consortium
has been  brought  together,  the  parties to this  agreement  acknowledge  that
results may vary over the course of the project,  calling for adjustments to the
targets  within  the  project  plan,  budget,  and  timing.  In the  event  that
significant  changes are called for, the eligible recipient will submit required
updates to consortium members, including HEC, for review and agreement.

6.       Market Representation Agreement
         -------------------------------

This consortium agreement is not intended as a market representation  agreement.
However, it is understood that if the demonstrations contemplated in the project
plan  result  in a  product  configuration  that is  deemed  to be  commercially
attractive,  AHI and HEC will undertake to put in place a  non-exclusive  market
representation  agreement at that time to govern the  manufacturing,  marketing,
licensing and  certification  of a possible  combined  product offering to their
mutual benefit.

It is understood  that SDTC is actively  redefining its policy with respect to a
possible  rapid  market  adoption  of all or part of the company and project IP,
prior to the conclusion of the planned demonstration.  Any market representation
to be drawn up during the three year life of the project will be defined  within
the  context of the  refinement  SDTC will  publish to its  guidelines  on early
commercialization.

7.       Confidential Information
         ------------------------

7.1  "Confidential  Information"  means all  information  and  data,  including,
without limitation, all business,  planning,  performance,  financial,  product,
trade secret, technical, sales, marketing,  contractual,  employee, supplier and
customer information and data, disclosed orally, in writing or electronically to
either  party (the  "disclosing  party") to the other  (the  "receiving  party")
hereunder.  Confidential  Information shall not include information which (i) is
generally  known or in the public domain at the time of  disclosure;  (b) was in
the receiving  party's  possession before receipt from the disclosing party; (c)
though originally  Confidential  Information,  subsequently  becomes a matter of
public knowledge  through no fault of the receiving party, as of the date of its

                                      -3-
<PAGE>

becoming  part of the public  knowledge;  or (d) is  rightfully  received by the
receiving party without obligations of confidence from a third party who is free
to disclose the information.

7.2 The receiving party shall maintain the  confidentiality  of all Confidential
Information  disclosed to it and shall take all  necessary  precautions  against
unauthorized  disclosure of the  Confidential  Information.  The receiving party
shall not directly or indirectly disclose, allow access to, transmit or transfer
any  Confidential  Information  to any third  party  without  the prior  written
consent of the  disclosing  party except that the  receiving  party may disclose
Confidential  Information to those employees and contractors who (i) have a need
to know the  information  for the  purposes  of this  Agreement;  (ii) have been
informed of the receiving party's obligations hereunder; and, (iii) have entered
into  a  confidentiality  agreement  with  the  receiving  party  that  contains
confidentiality  and restricted  use  obligations  that are consistent  with the
terms and conditions of this  Agreement and which are  reasonably  calculated to
protect the confidential or proprietary  nature of the Confidential  Information
and prohibit its unauthorized use and disclosure.  The receiving party shall not
use or copy any Confidential Information except as may be reasonably required in
connection with this Agreement. All copies, records, notes or reproductions,  in
whole or in part,  shall contain  notices  identifying  them as  containing  the
Confidential  Information  of the  disclosing  party and shall be protected from
unauthorized disclosure and access.

7.3  Upon  the  request  of the  disclosing  party,  and in any  event  upon the
termination  or  expiration  of  this  Agreement,   the  receiving  party  shall
immediately  return to the disclosing party all materials,  including all copies
in whatever  form,  containing  any  Confidential  Information  which are in the
disclosing party's possession or under its control.

7.4 Each party  acknowledges  and agrees  that  monetary  damages  may not be an
adequate  remedy  to  compensate  the  disclosing  party  for any  breach of the
receiving party's obligations hereunder in respect of Confidential  Information.
Accordingly,  each party agrees that, in addition to any and all other  remedies
available to the  disclosing  party under this Agreement or at law or in equity,
the  disclosing  party shall be entitled to seek  injunctive  relief against the
breach,  or  threatened  breach  of  the  confidentiality   provisions  of  this
Agreement, and specific performance of its obligations hereunder,  without being
required to post a bond.  The  injunctive  relief  contemplated  hereunder is in
addition to any other legal or equitable remedies available.

8.       General Provisions
         ------------------

8.1 Any charges or expenses  incurred by either party in preparation for or as a
result of this Agreement or the parties' meetings and communications or any work
done  hereunder  are to the sole  account  of the party  incurring  same  unless
otherwise agreed in writing.

8.2 The parties will not disclose the detailed  content of this Agreement to any
third party without the prior written  approval of both parties,  which approval
may be withheld in the sole discretion of either party.

                                      -4-
<PAGE>

8.3  This  Agreement  shall  be  governed  by the  laws of the  Province  of New
Brunswick and the laws of Canada applicable therein,  except for its conflict of
laws provisions.

8.4 Except with respect to a breach of the confidentiality provisions set out in
Section 7 hereof and each party's  obligation to negotiate in good faith,  in no
event  shall any party  hereto  be  liable to the other for any  claim,  damage,
injury or loss of any nature arising out of or related to this Agreement.

IN NO EVENT SHALL  EITHER  PARTY BE LIABLE FOR  SPECIAL,  INCIDENTAL,  PUNITIVE,
INDIRECT OR CONSEQUENTIAL DAMAGES ARISING FROM OR CONNECTED WITH THIS AGREEMENT.
ALL TANGIBLES AND INTANGIBLES  PROVIDED  PURSUANT TO THIS AGREEMENT ARE PROVIDED
"AS IS" AND THE PARTIES  MAKE NO  WARRANTIES  OR  CONDITIONS,  WHETHER  EXPRESS,
IMPLIED, STATUTORY, OR. OTHERWISE, INCLUDING, WITHOUT LIMITATION,  WARRANTIES OR
CONDITIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY AND FITNESS FOR A PARTICULAR
PURPOSE.

8.5 Neither party shall assign or transfer this Agreement,  in whole or in part,
except to a subsidiary or affiliated company,  without the prior written consent
of the other, which consent shall not be unreasonably withheld.

8.6 Nothing contained herein shall be construed as prohibiting either party from
entering into a business  arrangement with any other third party, whether or not
such third  party is in a similar  line of  business  to the other party to this
Agreement.

8.7 If, in the opinion of AHI,  any member of the  Consortium  is not  complying
with  the  work  plan,  budget,  and/or  milestone  objectives  set  out in this
agreement,  AHI, as the Eligible  Recipient,  shall have the right, upon 30 days
written notice,  to terminate this agreement,  without  penalty,  and to replace
that member of the  Consortium  with another  entity.  AHI will endeavor to work
with the  Consortium  member for a period of 30 days in an effort to resolve the
problem prior to exercising this right to terminate the agreement;  however, AHI
reserves the right to determine  what is best for the overall  project and shall
have the final right to terminate  this  agreement,  and replace a member of the
Consortium at its sole discretion without penalty.

IN WITNESS  WHEREOF this  Agreement  has been  executed by the parties as of the
Effective Date.

                                   By:  s/William Stanley
                                        ----------------------------------
                                           Chairman, Atlantic Hydrogen, Inc.

                                   By:  s/Ted Hollinger
                                        ----------------------------------
                                           President & CEO, Hydrogen
                                           Engine Center

                                      -5CONFIDENTIAL

                                    AGREEMENT

BETWEEN:          UNIVERSITE  DU  QUEBEC  A  TROIS-RIVIERES,  a  corporate  body
                  incorporated  by virtue of the laws of  Quebec,  with its head
                  office at 3351, boul. Des Forges, Trois-Rivieres (Quebec), G9A
                  5H7,  herein  represented  by Mr. Denis Mayrand and Mr. Lucien
                  Bedard, hereinafter referred to as the "University"

AND:              HYDROGEN  ENGINE  CENTER,  a corporate  body  incorporated  by
                  virtue of the laws of Iowa,  with its head  office at 602 East
                  Fair Street,  Algona,  Iowa 50511,  herein  represented by Ted
                  Hollinger, hereinafter referred to as the "Company" or "HEC"

Hereinafter referred to as the "Parties"

IN  CONSIDERATION  OF THE MUTUAL  COVENANTS  AND PROMISES  CONTAINED  HEREIN THE
PARTIES AGREE AS FOLLOWS:

1.       OBJECT

1.1 The present  Agreement  governs the  realization  at the University of tasks
described in the research proposal entitled  Development of multi-fuel  internal
combustion  engines for  stationary  electrical  power  generation,  hereinafter
designated  as  "the  Project",  which  constitutes  Appendix  1 of the  present
Agreement.

1.2 The scientific  direction of the Project is the responsibility of, Dr. Tapan
Bose director of the Hydrogen  research  Institute,  hereinafter  the "Principal
Investigator".

1.3 The  reports or services  to be  rendered  as well as the  timetable  of the
realization of each of the stages of the Project are described in Appendix 1.

2.       DURATION OF THE AGREEMENT

The Agreement  takes effect on,  February 1, 2005, and ends on January 31, 2015,
for a total duration of ten (10) years, unless sooner terminated pursuant to the
terms of this Agreement

The parties  agree to meet one (1) year prior to the  expiration  of the capture
period  to  negotiate  in good  faith for a renewal  of the  Agreement  However,
nothing in this paragraph or this Agreement obligates either party to renew this
Agreement, enter into any other Agreements or grant any other licenses now or in
the future.
<PAGE>

3.       FINANCING AND PAYMENT CONSIDERATIONS

3.1      Upon the  execution  by the  University  of the tasks it has  agreed to
         within  the  Project,  Company  shall  pay it the  sum of 20  000$,  in
         Canadian currency, and 10 000$ in kind.

         This amount shall be paid in instalments, by cheque to the order of the
         University, according to the following invoicing schedule:

         o    at the Agreement's signature: 5 000$;
         o    completion of task 1 of Appendix 1: 5 000$;
         o    completion of task 3 of Appendix 1: 5 000$;
         o    at the end of Project  (after  delivery  of the final  report):
              5000$;

3.2      These amounts are payable within thirty (30) days following  receipt of
         the University's invoicing.

4.       EQUIPMENT AND SUPPLIES

         The equipment and supplies purchased by the University for the purposes
         of the Project remain its property.

5.       CONFIDENTIALITY

         5.1 Confidential  information is any information provided in writing or
         in any other form,  marked with the word  "Confidential  " or "Secret",
         and  must  include  a  disclosure  date.  When  provided  orally,   the
         Confidential   Information  must  be  confirmed  in  writing  within  a
         reasonable  period of time,  marked  with the word,  "confidential"  or
         "secret" and dated.

5.2      The Company and  University  recognize  that either  Party may disclose
         Confidential  Information  to the  other  in  order  to  allow  for the
         realization of the Project.  The Party  receiving  disclosure  will not
         obtain rights or interests  therein and such  transfer of  Confidential
         Information  shall not be  construed as a grant of any right or license
         with respect to the information  delivered,  these rights remaining the
         property of the disclosing Party.

5.3      Each Party agrees:

5.3.1    to use the Confidential  Information  solely for the purposes mentioned
         in this Agreement,  unless prior written consent has been obtained from
         the Party owning the Confidential Information;

5.3.2    not  to  disclose  the  Confidential  Information  or  allow  it  to be
         disclosed to a third party. In addition,  each Party agrees to restrict
         disclosure of the Confidential  Information within its own organization
         to those employees, administrators, managers or agents who specifically
         need to know this Confidential  Information for the purposes set out by
         this Agreement and who agree to respect all the obligations;

                                      -2-
<PAGE>

5.3.3    not to reproduce nor use the Confidential Information to produce, sell,
         have produced or have sold marketable products or technologies unless a
         license to this effect takes place between the Parties;

5.3.4    to give back the Confidential Information to the other Party, following
         written  request to this effect,  after it has finished its  evaluation
         and to destroy any copy or transcript, in whole or in part, that it may
         have made of the Confidential Information;

5.3.5    to handle the Confidential  Information in the same manner and with the
         same  diligence  that it applies to its own  Confidential  Information,
         including all reasonable care required.

5.4      Company  recognizes  that  the  University  is a  public  teaching  and
         research   institution   and  cannot  be  held   accountable   for  any
         unintentional   breach  of  confidentiality.   The  University  agrees,
         however,  to protect  the  Confidential  Information  by using the same
         degree  of  care  that  it  takes  to  protect  its  own   Confidential
         Information.

5.5      The Parties recognize that the following  information is not subject to
         this Agreement when:

5.5.1    the  information is currently in the public domain or becomes a part of
         the public domain through no fault of the Parties;

5.5.2    a Party was legally in possession of the information  before  receiving
         it from the other Party and did not  acquire it directly or  indirectly
         from the latter;

5.5.3    the  information  was legally  provided to the Party in good faith by a
         third party at arm's length;

5.5.4    the disclosure was necessary by virtue of a law, regulation or by order
         of a court.

5.6      The  obligations of the Parties by virtue of the present  article shall
         continue  to have full  effect for three (3) years after the end of the
         Agreement.

5.7      The Parties agree that the terms and  conditions of this  Agreement are
         confidential.

6.       DISCLOSURE OF RESULTS

6.1      The Parties  recognize that the disclosure of information  for teaching
         and research purposes is part of the University's role.  However,  they
         agree that the premature  disclosure of certain results may put at risk
         their  potential   commercial   value.   Disclosure   includes  theses,
         memorandums,  scientific articles,  seminars and other written and oral
         presentations.

                                      -3-
<PAGE>

 6.2     The  University  reserves  the right to  authorize  students to prepare
         masters  as  well as  doctoral  theses  regarding  the  Results  of the
         Project,  and as the  case  may  be,  to  request  outside  experts  to
         evaluate, as members of the jury, said theses.

 6.3     Any disclosure of results must nonetheless be authorized  beforehand in
         writing  by  the  Principal  Investigator  as  well  as  the  Company's
         representative, according to the following provisions:

6.3.1    the University submits to Company any projected information  disclosure
         regarding  the  Project,  at least  forty-five  (45)  days  before  its
         presentation or publication;

6.3.2    if Company does not contest this  disclosure in writing  within fifteen
         (15) days of the  reception of the  projected  disclosure,  it shall be
         presumed  to have  given  its  approval  and the  University  may  then
         disclose the information;

6.3.3    if Company contests the projected disclosure, in writing and within the
         aforementioned   time  period,  the  Parties  must  then  negotiate  an
         acceptable version of the projected  disclosure,  including the date of
         disclosure in that case, within the above-mentioned forty-five (45) day
         time period of subparagraph

6.3.4    Company  cannot  refuse  to give  its  approval  unless  the  projected
         disclosure puts at risk the protection and potential  commercial  value
         of the Project's  Results.  In the event that such proposed  disclosure
         involves the disclosure of any invention that Company or University may
         wish to evaluate  for  patenting,  Company or the  University  agree to
         defer any such disclosure or publication for an adequate period of time
         but no longer than six (6) months from the date the  material was first
         submitted to allow for the preparation and filing of any desired patent
         applications.  The disclosure shall be authorized as soon as the patent
         application is completed.

6.3.5    Subject to the respect of the provision of article 5 (Confidentiality),
         any postponed disclosure cannot exceed six (6) months following the end
         of the Agreement.

7.       OWNERSHIP OF PROJECT RESULTS

7.1      Project  Results  include,  without  limitation,   copyrights,   rights
         stemming from inventions,  including know-how,  technical  information,
         models,  patterns,   designs,   drawings  and  plans,   specifications,
         prototypes,  software  and other  documents,  fine-tuned  or  developed
         within  the  context  of the  Project  in  accordance  with  the  tasks
         described  in Appendix 1 and which may or may not be  subjected  to any
         form of intellectual property protection.

7.2      All  titles  and  rights on the  Project  Results  shall  belong to the
         University.  Article 8 (Commercial Exploitation) defines the conditions
         giving access to the commercial exploitation of the Project Results.

                                      -4-
<PAGE>

8.       COMMERCIAL EXPLOITATION OF THE RESULTS

8.1      The   University   grants   to   Company,    an   exclusive    license,
         non-transferable,  worldwide, with the right to sublicense with respect
         to the rights granted to the University in this  Agreement,  to use the
         Project Results.  The term of the license shall expire  considering the
         following conditions whether the Projects results are patentable or not
         patentable.

         o    If the Project Results are patentable, the license shall remain in
              full force and effect  until  January 31, 2015 upon the respect of
              the conditions provided in paragraph 8.4;

         o    If the Project  Results  are not  patentable,  the  license  shall
              remain in full force and effect until January 31, 2010. I4EC shall
              have the option to extend the license  until January 31, 2015 upon
              written  notice  to the  University  given no  later  than six (6)
              months  prior to the last day of the initial term and after having
              demonstrated to the University,  commercially  reasonable  efforts
              and diligence to proceed with the  development,  manufacture,  and
              sale of the Project Results and to diligently develop a market for
              the Project Results.

8.2      As  consideration  for  the  rights  granted,  HEC  shall  pay  to  the
         University the following fees and royalties:

         o    upon  completion  of the tasks in  Appendix 1 HEC will pay a three
              percent  (3%)  royalty  on gross  revenues  from  sales of Project
              Results.  The royalty  payment will be made  quarterly and will be
              due by the 20th day after the completion of each calendar quarter.

8.3      Gross revenues means all sales  revenues,  receipts and monies received
         by NEC and its affiliated  companies from the sale or other transfer of
         the Project Results.

8.4      1-IEC  shall   reimburse  the  University  for  any  and  all  expenses
         reasonably   incurred  by  the   University  in  connection   with  the
         preparation,  filing and  prosecution  of all patent  applications  and
         maintenance of patents for the Project Results.

8.5      On or before  the  twentieth  (20th) day after the  completion  of each
         calendar  quarter  during the Contract  Term,  HEC shall deliver to the
         University a written statement, certified to be true and correct by the
         Chief  Financial  Officer of HEC,  setting forth the Gross revenue from
         sales for each Project  Results during the preceding  calendar  quarter
         and a  calculation  of the Royalties  payable under this  Agreement for
         such period.

8.6      Not more  than once in any 12 month  period,  the  University  may have
         HEC's relevant books and records for the prior 12-month period audited,
         by an independent  certified  public  accounting firm of the University

                                      -5-
<PAGE>

         choosing and  reasonably  acceptable  to HEC, to verify the accuracy of
         HEC's royalty  payments.  The independent  certified public  accounting
         firm must enter into a confidentiality  agreement reasonably acceptable
         to HEC and may not  disclose any  information  learned in the course of
         such audit other than the existence and amount of underpayment, if any.
         Such audit must be conducted  during HEC's normal  business  hours in a
         manner  that does not  unduly  interfere  with  HEC's  normal  business
         activities. If any audit discloses underpayment of royalties, HEC shall
         promptly  pay the  University  the  royalties  due plus  interest at an
         annual rate of 6%. The  University is  responsible  for all expenses it
         incurs in  connection  with any audit  unless  the audit  discloses  an
         underpayment  of royalties  in excess of 15%, in which case,  HEC shall
         promptly reimburse the University for all of such audit expenses.

9.       INDEMNITY AND LIABILITY

9.1      Company  undertakes to indemnify and hold harmless the University,  its
         trustees,  officers,  agents  and  employees  from  any and all  direct
         liability,  direct loss or direct  damage they may suffer as the result
         of claims,  demands, costs or judgments,  and to take up their defence,
         with regard to any action or lawsuit  arising out of the  activities to
         be carried  out  pursuant to the Project or from the use by the actual.
         or eventual  holders of rights granted to Company by virtue of articles
         7 (Ownership) and 8 (Commercial Exploitation) of this Agreement

9.2      The University  undertakes to indemnify and hold harmless Company,  its
         trustees, officers, agents and employees of any and all liability, loss
         or damage they may suffer as the results of claims,  demands,  costs or
         judgments,  and to take up their defence,  with regard to any action or
         lawsuit  arising out of injuries  (including  death) to the individuals
         participating  in the Program and under the  administrative  control of
         the   University   (including   individuals   hired  by  the  Principal
         Investigator   to  realize   certain  tasks  related  to  the  Program)
         concerning  damages to the property of the  University  or Company,  by
         these  individuals,  within the  realization of the Program  (including
         within the premises leased by the  University,  or which have been lent
         by third parties not part of this Agreement).

9.3      As the case may be,  the  University  undertakes  to  assume  the civil
         liability  which  devolves  to an  individual  hired  by the  Principal
         Investigator  to realize  certain tasks related to the Project,  in the
         case of bodily, material or moral injury caused by this individual,  as
         long as said damages result from the execution of the Agreement.

10.      TERMINATION OF AGREEMENT

10.1     A Party is in default if one or another of its  obligations  set out in
         this  Agreement  is not  carried  out when  required  by virtue of this
         Agreement  and this Party has not remedied  this default  within thirty
         (30) days of  receiving  a written  notice  from the other  Party.  The
         Agreement is then automatically terminated and considered terminated at
         the date of the notice.

                                      -6-
<PAGE>

10.2     In the event of the death,  departure  or  physical  incapacity  of the
         Principal Investigator,  one of the Parties may terminate the Agreement
         totally or partially, upon a sixty (60) day written notice to the other
         Party;  within this delay, the Parties may agree on the necessary means
         to terminate  the Project.  The case  arising,  the Agreement is deemed
         terminated from the date of the notice.

10.3     The Agreement  automatically  ends and the University is freed from its
         obligations   therein  if  Company   declares   bankruptcy  or  becomes
         insolvent,  is placed under receivership in favor of its creditors,  or
         if an order is rendered or a resolution  adopted for the liquidation of
         its  assets,  or it if  avails  itself  of any  law  or ant  concerning
         insolvent or bankrupt debtors;

10.4     In the event of termination of the Agreement,  all of the  University's
         expenses and all its reasonable obligations which relate to the Project
         until the date of the  termination  of the Agreement must be reimbursed
         to the  University,  to the extent that these expenses and  obligations
         were incumbent on the University by virtue of Appendix 1.

10.5     The  University  shall  conserve  the  property  rights of the  Results
         obtained up to the date of the  termination  of the  Agreement  and the
         University shall be freed from all its obligations toward Company.

11.      ACT OF GOD

         One of the Parties can not be held responsible with regard to the other
         as a result of any default or delay by virtue of the present  Agreement
         caused by circumstances  beyond its control,  without  limitation,  the
         death of the Principal  Investigator,  natural disasters,  fires, wars,
         employment conflicts or certain governmental measures.

12.      GOVERNING LAW

         This Agreement  must be interpreted in accordance  with the laws of the
         Province of Quebec.

13.      COMPLETENESS OF AGREEMENT

         The Parties agree that this Agreement  contains the complete and unique
         representation of the understanding  reached between them regarding the
         Project.  The latter  replaces  and puts an end to all  representation,
         negotiation or proposal regarding the object of the present Agreement.

                                      -7-
<PAGE>

14.      EXTENSION OF PROVISIONS

         Articles 3 (Financing), 5 (Confidentiality), and 9 (Indemnification and
         Liability)  will  continue at the end of this  Agreement in addition to
         the articles that are maintained by virtue of the law.

15.      VARIOUS PROVISIONS

15.1     The preamble and appendices form an integral part of this Agreement.

15.2     This Agreement is non-transferable and no right or obligation contained
         in it can. be assigned  or  transferred  in any way by one Party or the
         other.  The case  arising,  the  rights and  obligations  of one of the
         Parties  in  virtue  of  this  Agreement  also  bind  their  respective
         successors and assignees.

15.3     No Party can retain the  personalized  services  of an  employee of the
         other  Party  for  the  accomplishment  of  tasks  provided  for in the
         Project,  unless  prior  written  consent  has been  obtained  from its
         employer.

15.4     This  Agreement  does  not make one of the  Parties,  the  agent of the
         other, nor its legal representative,  joint venture partner, associate,
         employee  or  clerk.   It  thus  creates  no  fiduciary  nor  mandatory
         relationship between the parties.

15.5     Each of the Parties  recognizes  and agrees that it has no authority to
         assume nor create any obligation in the other's name,, either expressly
         or implicitly, except that which is strictly and expressly provided for
         in this Agreement.  Each of the Parties also recognizes and agrees that
         it has no  authority  to bind the  other in any way,  nor to incur  the
         other's liability.

15.6     No  omission  on the part of one or  another  of the  Parties to assert
         their rights  resulting from  nonrespect or violation of this Agreement
         and no  acceptance of payments can be considered as a waiver of rights.
         No  provision  of this  Agreement  is presumed to have been waived by a
         Party unless this Party has formulated this waiver in writing.

15.7     In the event that any provision of this Agreement or its application is
         declared  not valid,  this will not affect  the  validity  of the other
         provisions and the Parties remain bound.

15.8     This Agreement can only be modified by a document written and signed by
         all Parties of the present Agreement.

15.9     For the purposes of the present  Agreement,  the Parties elect domicile
         in the judicial district of Trois-Rivieres.

                                      -8-
<PAGE>

IN WITNESS OF WHICH THE PARTIES  HEREIN HAVE SIGNED THIS  AGREEMENT ON THE DATES
AND AT THE LOCATIONS INDICATED:

 For Company:

 /s/ Theodore Hollinger                        2-22-05
 ------------------------------               -----------------------
 Theodore Hollinger

For the University:

/S/ Denis Mayrand                             12-03-05 (March 12)
-----------------------------                 -----------------------
Denis Mayrand

/s/ Lucien Bedard                             02-03-05 (March 2)
-----------------------------                 -----------------------
Lucien Bedard

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