Document:

EXHIBIT 10.17

                               HEADS OF AGREEMENT
                                     Between
                             OCEAN POWER CORPORATION
                                       And
                               CIMA CAPITAL, LLC.

This Heads of  Agreement  ("Agreement")  is entered into this 30th day of March,
2000,  by and between OCEAN POWER  CORPORATION,  a Delaware  U.S.A.  corporation
("OPC"),  and  CIMA  CAPITAL,  LLC.  a  California  Limited  Liability  Company,
("Territory Affiliate").

RECITALS
--------

         WHEREAS,   OPC  has  enhanced  and/or   integrated   various   existing
technologies  for the  purpose of  modular  water and power  production,  and is
developing new systems, sub-systems and technologies for modular water and power
production (collectively "OPC Water and Power Systems), and

         WHEREAS,  Territory  Affiliate desires to market and sell the water and
power produced by OPC Water and Power Systems, and

         WHEREAS,  OPC and Territory  Affiliate intend to enter into discussions
for the purpose of  determining  mutually  agreeable  terms of an Affiliation to
purchase, assemble,  construct, install, own, operate and maintain OPC Water and
Power Systems in the Operating Territory and market and sell the water and power
produced therefrom, and

         WHEREAS,  it is contemplated that OPC will derive profits from the sale
of OPC Water and Power  Systems and related  services and that OPC and Territory
Partner  will each derive  income  from the sale of water and power  produced by
said systems; and

         WHEREAS,  OPC  and  Territory  Affiliate  desire  to  set  forth  their
intentions to negotiate the terms of the proposed Affiliation.

         NOW,  THEREFORE,  the parties confirm the following  understandings and
intentions.

1.       Purpose of Affiliation
The  purpose  of  the  proposed  Affiliation  includes  the  finance,  purchase,
assembly,  construction,   installation,  integration,  testing,  commissioning,
operation  and  maintenance  of OPC  Water  and Power  Systems  in  Mexico  (the
"Operating Territory") and the marketing and sale of water and power produced by
said systems.

2.       Structure of the Affiliation
The Parties shall  discuss and negotiate in good faith the terms and  conditions
of a Joint Venture Effected In Part Through a Jointly Owed Entity With Exclusive
Rights in the Operating  Territory  (hereinafter the Affiliation)  including the
structure,  documentation and operation of the Affiliation. The parties shall be

                                       1
<PAGE>

under  no  obligation  to  enter  into any  definitive  agreements,  but if such
negotiations  are  successful  the parties  contemplate  entering  into  several
agreements as necessary to establish and operate the  Affiliation  in accordance
with the Affiliate System Guidelines attached hereto as Exhibit 1.

3.       Formation Procedure (Joint Venture Entity with Exclusive Territory)

         (a)      Immediately  upon  execution  of  this  Agreement,   Territory
                  Affiliate  shall engage the services of an attorney,  licensed
                  to  practice  law in the  Operating  Territory  to  prepare an
                  initial  draft  of  the  governance  documents  for a  Limited
                  Liability  Entity  (Venture  Entity)  in which OPC will have a
                  significant minority ownership position.  The specific form of
                  the  Venture  Entity  and its  governance  documents  shall be
                  chosen  and  drafted  so as to  give  maximum  effect  to  the
                  Critical   Principles   contained  in  the  Affiliate   System
                  Guidelines.

         (b)      Immediately  upon  execution  of  this  agreement,  OPC  shall
                  prepare initial drafts of a Joint Venture  Agreement,  License
                  and  Terms  of  Trade  and  Terms  of  Service  Agreements  in
                  accordance with the Affiliate System Guidelines.

         (c)      Immediately upon execution of this agreement OPC and Territory
                  Affiliate  shall each designate an individual  responsible for
                  developing  the initial  business plan for the Venture  Entity
                  which two  individuals  will work  cooperatively  to develop a
                  business  plan  in  accordance   with  the  Affiliate   System
                  Guidelines.

         (d)      Within fifteen (15) days after  completion and  circulation of
                  the  initial  draft  documents  referred to in  sub-parts  (a)
                  through  (c) above and in no event  later than sixty (60) days
                  after execution of this Agreement,  the Parties shall meet and
                  confer  with  respect  to  the  progress  being  made  in  the
                  formation   procedures,   difficulties   or  issues   impeding
                  completion  of the  Affiliation  and shall  confirm in writing
                  their   continued   desire  to  negotiate  and  establish  the
                  Affiliation in accordance with the understandings expressed in
                  this Heads of Agreement or any amended understandings as shall
                  be mutually agreed upon.

4.       Pre-formation Costs
Each  party  shall  bear its own  costs  and  expenses  in  connection  with the
negotiation  of the  definitive  agreement  pertaining  to the  formation of the
Affiliation,  including  attorney's  and  accountant's  fees,  except  that  all
reasonable  costs and expenses  incurred in connection with the formal licensing
of the Venture with the  appropriate  governmental  authorities in the Operating
Territory  shall be  reimbursed  by the  Venture  Entity to the party  which has
incurred any such cost or expense.

5.       Confidentiality
The contents of this Heads of Agreement and the  transactions  described  herein
and all information  exchanged or disclosed by or between the Parties during the
negotiations and related due diligence  investigations shall not be disclosed by
either party or its affiliates  without the written  consent of the other party,

                                       2
<PAGE>

except that (i) information  required to be disclosed by any legal process or by
the laws or  regulations  in the U.S.A.  and/or the  Operating  Territory may be
disclosed as so required,  and (ii)  information  may be disclosed to directors,
officers, employees, consultants, financial advisors, accountants, or lawyers of
or for  the  Parties  as  necessary  in the  negotiation  and  formation  of the
Affiliation and for no other purpose.

6.       Governing Law
The Parties agree that this Heads of Agreement  shall be governed by the laws of
California.

7.       Effective Date
This Heads of Agreement  shall be effective as of the date of its  execution and
delivery by the parties hereto.

8.       Counterparts
This  Heads  of  Agreement  may be  executed  simultaneously  in any  number  of
counterparts,  each of which when so executed and delivered shall be taken to be
an original,  but such  counterparts  shall together  constitute but one and the
same document.

9.       Dispute Resolution
In the  event of any  dispute  between  the  parties  relating  to the  Heads of
Agreement,  the matter,  upon written request of either party, will be submitted
to  the  designated   senior  executives  of  both  OPC  and  Territory  Partner
respectively,  who will  promptly  meet and  confer  in a good  faith  effort to
resolve such dispute or  disagreement.  Any decision of such  executives will be
final and binding on the parties. Either party may terminate such discussions at
any time.

Ocean Power Corporation                          Territory Affiliate

Date:  30 March 2000                             Date: 30 March 2000

/s/ Robert L. Campbell                           /s/ Carl Fricke
----------------------                           ---------------
    Robert L. Campbell, Vice President               Carl Fricke, CEO

                                       3
<PAGE>

OPC AFFILIATE SYSTEM GUIDELINES

                            Ocean Power Corporation
                          Affiliate System Guidelines

                                       I

                                     Purpose

Ocean Power Corporation's  Mission: The mission of Ocean Power Corporation is to
become the worlds  leading  manufacturer  of modular water and power  generation
systems.

Affiliate System's Mission: The mission of the OPC Affiliate System is to become
the worlds  leading  provider of potable  water and electric  power  produced by
modular water and power generation systems.

Affiliate System  Integrity:  OPC desires to establish and maintain an Affiliate
System (a) whose business  operations are conducted in accordance  with all laws
and  regulations  in effect  in each  operating  territory,  and (b) in a manner
consistent  with  internationally  accepted  standards  of  fair  and  equitable
business practices.

Affiliate System Efficiency:  OPC desires to establish and maintain an Affiliate
System which  advances  and  improves  technology  and  business  practices  and
implements such advances and  improvements  throughout the Affiliate System such
that OPC and each of its  Affiliates  operate  in  accordance  with best  global
practices  as  appropriately  applied  within the  particular  legal,  cultural,
economic and political framework of each Operating Territory.

Flexible  Standardization:  OPC recognizes  the  tremendous  diversity of legal,
cultural,  economic and political  frameworks in which its Affiliate System will
operate and that the structure,  documentation and operation of its Affiliations
will necessarily vary to accomodate the legal, cultural,  economic and political
framework of each Operating Territory.  Nonetheless and regardless of whether an
Affiliation takes the form of an exclusive co-owned venture entity, exclusive or
nonexclusive  distribution  or sales agreement or some other form; the structure
documentation  and operation of each  Affiliation must promote and implement the
OPC Mission,  the  Affiliate  System  Mission,  Affiliate  System  Integrity and
Affiliate  System  Efficiency.  To that end, OPC has developed  these  Affiliate
System Guidelines which set out the Critical  Principles to be incorporated into
each  Affiliation's  structure,  documentation and operation in such fashion and
through such devises as are most  appropriate to the form of the Affiliation and
the  legal,  cultural,  economic  and  political  frameworks  in  the  Operating
Territory.

                                       II
                              INTELLECTUAL PROPERTY

Goals: System Efficiency demands the stimulation of advances and improvements in
technology and business  practices and requires that all resulting  advances and
improvements and best global practices be shared and implemented  throughout the
Affiliate  System.  System  Efficiency is best served by OPC being recognized as
the worlds leading manufacturer of modular water and power production systems so

                                       1
<PAGE>

that each  Affiliate  is able to trade on OPC's  reputation  while  establishing
itself as a leading provider of water and power in its Operating  Territory.  To
accomplish these goals the following Critical  Intellectual  Property Principles
and such other provisions as are necessary to fully implement these Intellectual
Property goals will be firmly  incorporated  into the structure,  documentation
and operation of each Affiliation.

Preferred  Embodiment  in most  instances  the  Critical  Intellectual  Property
Principles  will be  contained  in a License  Agreement  and/or a Terms of Trade
Agreement.   However,  in  jurisdictions  where  license,   franchise,   agency,
distributorship,  intellectual  property or other regulations  negatively impact
the  breadth  and/or  enforceability  of these  Critical  Intellectual  Property
Principles when so embodied,  they may be included in a Joint Venture Agreement,
an Affiliation Agreement or such other devises as mutually agreed

Critical Principle Number 1
Ownership  of  Know-how:  A11  information  and devises  relating to the design,
manufacture,   integration,  assembly,  shipping,  construction;   installation,
operation and maintenance of water and power  producing  systems and sub-systems
is and will  remain the sole and  exclusive  property  of OPC and  licensed to a
Venture  Entity  and/or  Affiliate to the extent  necessary to  effectuate   the
Affiliation.

Critical Principle Number 2
Trademarks: All words, names, symbols, dress and devices by which OPC's products
and/or services are or can be  distinguished  from products and/or  services- of
others will be considered  OPC's Trademarks and are and will remain the sole and
exclusive  property  of OPC and will be  licensed  to a  Venture  Entity  and/or
Affiliate to the extent  necessary to allow optimum  marketing  benefit from the
affiliation with OPC.

Critical Principle Number 3
Grant Back: All rights to  improvements,  advances and  derivative  technologies
and/or processes created or discovered by or through an Affiliation  relating to
the  design,  manufacture,   integration,   assembly,  shipping,   construction.
installation, operation and/or maintenance of water and power producing systems,
sub-systems or related activities and practices will be irrevocably granted back
to OPC and will be included  in the  Know-how  in order that such  advances  and
improvements  and  best  global  practices  can  be  appropriately   shared  and
implemented  throughout  the Affiliate  System.  OPC will consider  developing a
compensation  plan or policy for inventors in order to encourage the development
of  improvements,  advances and derivative  technologies  consistent  with these
critical principals.

Critical Principle Number 4
Grant  Forward:  Any rights given in an  Affiliation to utilize any OPC Know-how
will include the right to utilize any  improvements,  advances,  and  derivative
technologies  and processes of said Know-how  including  such as are obtained by
OPC through its Grant Back rights.

                                       2
<PAGE>

Critical  Principle  Number 5
Acknowledgment and Challenge: Affiliates will acknowledge OPC's ownership of the
Know-how and Trademarks and any act by an Affiliate which challenges or contests
OPC's ownership of any  Know-how and/or Trademark will be considered  grounds to
terminate the  Affiliation  and any  Affiliate  operations.

Critical  Principle Number 6
Approved Water and Power Production  Systems:  Affiliates will not be allowed to
trade in or utilize water or power production systems, sub-systems,  components,
accessories, connections, designs or operating techniques other than as produced
or approved for use by OPC which approval will not be unreasonably withheld.

Critical  Principle Number 7
Confidentiality and Use: All Affiliates will agree to keep all Know-how which is
disclosed to them or which otherwise  comes into their its possession,  strictly
confidential  and to  utilize  said  know-how  only to the extent  necessary  to
fulfill their obligations in accordance with the terms of the Affiliation. These
confidentiality  and limited use obligations  will survive any termination of an
Affiliation.

                                      III
                                   Performance

Goals:  In  order  to  accommodate  legal,  cultural,   economic  and  political
frameworks in each Operating  Territory,  some Affiliates will allow significant
operational   authority  and/or  control  to  be  exercised  by  the  Affiliate.
Nonetheless,  System  Efficiency and System Integrity  requires that performance
standards  be  maintained  in  order  to  promote  the  development  of the  OPC
Trademarks  and protect  the  goodwill  residing  therein;  promote  appropriate
implementation  of  best  global  practices;   and  assure  adequate  continuous
dedication to market  penetration and service.  Additionally,  System  Integrity
requires  that  OPC  retain  certain   oversight  rights  in  order  to  prevent
inappropriate  diversion of resources or activities  inconsistent with generally
accepted  international  standards of fair and equitable business practices.  To
that end the following Critical Performance Principles and such other provisions
as are necessary to fully  implement  these  Performance  goals,  will be firmly
incorporated into structure, documentation and operation of each Affiliation.

Preferred Embodiment: In most instances the Critical Performance Principles will
be implemented  through an Affiliation  Agreement,  License Agreement,  Terms or
Trade  and/or  the  governance  documents  of  a  Venture  Entity.  However,  in
Territories where license, franchise, agency, distribution,  corporate, or other
regulations prevent or impede full enforcement or expression,  of these Critical
Performance  Principles  in that  fashion,  other  devises  will be  established
through negotiation and mutual agreement.

                                       3
<PAGE>

Critical Principle Number 8
Market  Penetration:  OPC and all Affiliates  will agree to minimum  investment,
marketing  and  government  relations  activities,  and  minimum  purchases  and
operating volumes to be achieved and maintained. Provision will be made for loss
of exclusivity;  removal and/or replacement of the Affiliate;  reorganization of
any Venture Entity, termination of any applicable License(s); and/or termination
of any Affiliation  and/or Affiliate  operations in the event that the Affiliate
Consistently  fails  to  achieve  or  maintain  the  agreed  market  penetration
requirements after being provided a grace period for curative action.

Critical Principle Number 9
Return on Capital Assets:  Provision will be made to ensure that  all Affiliates
act in a fashion  designed to achieve the highest  possible  returns through the
sale of water and power consistent with reasonable business judgement, short and
long term market penetration  strategies and economic and regulatory  conditions
in their  Operating  Territory.  Provision will be made for loss of exclusivity;
removal  and/or  replacement  of the  Affiliate;  reorganization  of any Venture
Entity;  termination of any  applicable  License(s);  and/or  termination of any
Affiliation  and/or  Affilate  operations  in the event an  Affiliate  acts in a
fashion materially inconsistent with that objective.

Critical Principle Number 10
Solvency  and   Qualification:   Provision  will  be  made  for  removal  and/or
replacement  of  any  Affiliate;   reorganization   of  any  Venture   Entities;
termination  of any  applicable  License(s);  recapitalization  of  any  Venture
Entities;  and/or termination of any Affiliation and/or Affiliate  operations in
the  event  that  a  Venture  Entity  and/or  Affiliate   becomes  insolvent  or
disqualified  from  conducting any of its necessary  functions in  the Operating
Territory.

Critical Principle Number 11
Systems  Maintenance  and  Operation:  Provision will be made to ensure that all
Affiliates  who have system  operation or maintenance  obligations  perform said
obligations in accordance  with all then current OPC  maintenance and operations
documents  and for  appropriate  remedies  in the event of claims  arising  from
system failures or OPC non-performance.

Critical Principle Number 12
Extraterritorial Operations: Provision will be made to preclude Venture Entities
and/or  Affiliates  from seeking water or power sales or  establishing  water or
power  operations  outside their Operating  Territory but allowing and promoting
cooperation   between   Affiliates  and  the  sharing  of  opportunities   among
Affiliates.

Critical Principle Number 13
Business Plan Approval: On an annual basis all Affiliates will prepare for OPC's
review and  approval,  a business  plan  detailing  the  Venture  Entity  and/or
Affiliates  projected income and expenses,  marketing,  sales,  construction and
maintenance  activities,  staffing and such other  information  as OPC may  from
time to time  reasonably  require  and  including  recourse  to binding  dispute
resolution devises in the event approval is not forthcoming.

Critical Principle Number 14

                                       4
<PAGE>

Review  and  Modification:  Provision  will be made for  periodic  review of the
Affiliation  structure,  documentation  and  operation  and for  discussion  and
negotiation of  modifications to the structure,  documentation  and operation of
the Affiliation as maybe desirable to more perfectly implement those Affiliation
Guidelines,  such other Affiliation Guidelines as may be developed in the future
and to accommodate the changing needs of OPC and/or the Affiliate.

                                       IV
                           Payments and Distributions

Goals:  System Integrity  requires that profits generated from the sale of water
and  power be  distributed  to OPC and its  Affiliates  in a fair and  equitable
fashion  according  to  their  mutual  agreements  and  understandings.   System
Efficiency  requires that payments and  distributions to OPC be available to OPC
for support of its global  operations  and that profits be remitted from Venture
Entities in the most advantageous  fashion available in  the Territory.  To that
end the following  Critical Payment and Distribution  Principles arid such other
provisions as are necessary to fully  implement  these Payment and  Distribution
goals will be firmly incorporated into structure, documentation and operation of
each Affiliation.

Preferred  Embodiment:  In most  instances  Critical  Payment  and  Distribution
Principles  will be  incorporated  into  the  governance  documents  of  Venture
Entities,  Terms of Trade  and Terms of  Service  Agreements,  and/or  Licensing
Agreements.  However, when corporate,  currency,  licensing, tax, customs, local
content or other regulations  prevent or impede effective  implementation of the
Critical  Payment and Distribution  Principles in such a fashion,  said Critical
Principles will be effectuated other devices as agreed to by the parties.

Critical Principle Number 15
Convertibility and Repatriation: Provision should be made to ensure that, to the
greatest extent possible,  payments and distributions to OPC are convertible, in
country,  into one or more "G7" currencies and readily  transferable  out of the
Operating Territory.

Critical Principle Number 16
Distribution  of Profots:  Provision  will be made to ensure that  profits  from
Affiliate  operations  are  distributed  to OPC and the Affiliate to the maximum
extent possible consistent with reasonable business judgement.

Critical Principle Number 17
Taxes: Provision will be made to allow appropriate payments and distributions to
be made to OPC by Venture Entities and/or Affiliates in a fashion, which results
advantageous  tax  treatment  to the Venture  Entities,  OPC and the  Affiliates
consistent with all applicable tax riles and treaties.

Critical  Principle  Number 18
Transparency,  Accounting and Audits: Affiliates shall maintain books of account
in  such  form  and  fashion  as is  consistant  with  internationally  accepted
accounting  practices  and OPC  shall be given  access  to all  such  books  and
underlying  data on a quarterly  basis to allow OPC to confirm  that profits and
distributions  arc properly  calculated  and that the  Affiliate is operating in
accordance with the Affiliation's structure and documentation.

                                        5
<PAGE>

                                        V
                               Dispute Resolution

Goals:  System Efficiency  demands that the legal documents  utilized in the OPC
Affiliate  System  be  interpreted  in a  consistent  manner.  System  Integrity
requires  that any disputes be resolved in a fair,  cooperative,  expedient  and
enforceable  fashion and that dispute  resolution  proceedings and the evidence,
testimony,  discussions, filings and reasoned decisions arising therefrom be and
remain  confidential.  To that end the  following  Critical  Dispute  Resolution
Principles and such other  provisions as are necessary to fully  implement these
Dispute   Resolution  goals,   will  be  firmly   incorporated  into  structure,
documentation and operation of each Affiliation.

Preferred  Embodiment:  All  agreements  between OPC and its  Affiliates and the
governance  documents of Venture  Entity will require that  disputes be resolved
first through good faith negotiation and failing that, through  conciliation and
binding  arbitration in accordance  with then current ICC rules and  facilities.
All such documents will refer to model rules,  laws and standard forms in common
use in  international  trade when ever  possible and will refer to national laws
only  when  required.  However,  when  arbitrability,  enforceability  or  other
regulations  impede or prevent total,  complete and effective  implementation of
these Critical Dispute Resolution Principles,  then every effort will be made to
ensure  that the  Critical  Principles  of the OPC  Affiliate  System  have been
incorporated  into the Affiliation's  structure,  documentation and operation in
such a fashion the all of the Affiliate  System Critical  Principles are subject
to these Critical Dispute Resolution Principles.

Critical Principle Number 19
Dispute  Resolution:  Except with  respect to specific  issues as  described  in
Critical  Principles 20 and 21 below, all disputes between OPC, Venture Entities
and/or  Affiliates which can not be resolved first by good faith negotiation and
then by ICC conciliation procedures, will be resolved by a single ICC arbitrator
in accordance  with the then current ICC arbitration  rules and  facilities.  No
arbitrator  will  be of  the  same  nationality  as  the  contestants,  and  the
arbitration proceedings will be conducted in the English language.

Critical Principle Number 20
Disputes  Concerning Sums and Quantities  (Baseball  Arbitration):  All disputes
within Venture  Entities and/or between OPC and Venture  Entities and/or between
OPC and Affiliates concerning sums or quantities which are not resolved first by
good faith  negotiation and then through ICC  conciliation  proceedings  will be
submitted to a single ICC arbitrator who will conduct a baseball arbitration and
render his or her binding decision accordingly. If the dispute concerns contract
interpretation  and/or  other  issues  as well as sums  and/or  quantities,  the
arbitration  should be bifurcated,  with the arbitrator  first  arbitrating  and
rendering his or her decision with respect to the non-sums/quantities  issues in
accordance  with  standard  ICC rules and  thereafter  conducting  the  baseball
arbitration with respect to the sums and quantities issues.

                                       6
<PAGE>

Critical  Principle  Number 21
License, Operations and Affiliate Termination:  Every reasonable means should be
employed to resolve  operational  inadequacies  and disputes in a fashion  which
allows OPC and its Affiliate to continue operations together in the Territory in
accordance  with the Affiliate  System  Guidelines.  However,  anticipating  the
possibility  that this goal may not  always be  achievable,  provisions  will be
incorporated into structure, documentation and operation of all Affiliates which
allow such impasse to be declared and the Affiliate  removed or replaced and OPC
allowed to continue operating in the Territory in a fashion and under such terms
as are consistent with the highest  principles of equity and fairness.  Disputes
in which either Party claims a right to terminate a License,  a Venture  Entity,
Affiliate Operations, an Affiliation or other agreement which cannot be resolved
first  through  good  faith   negotiation  and  then  through  ICC  conciliation
proceedings will be submitted to a three member ICC arbitration  panel.  Sums or
quantities  issues  resulting  from the  termination  of  licenses,  operations,
Venture  Entities,  Affiliations  or other  agreements will be excluded from the
baseball   arbitration   requirement   Arbitration   decisions   concerning  the
termination  of licenses,  operations  or  affiliations  shall be appleable to a
second panel,  constituted in accordance  with the ICC rules which appeal parcel
shall  have the power to  adopted  the  initial  decision,  modify  the  initial
decision,  or substitute its own decision but such  modification or substitution
shall  only be  allowed  in order to  correct  clear  errors of law or clear and
convincing errors of fact.

Critical Principle Number 22
Remedies: Provision shall be made to preclude any award of punitive or exemplary
damages  to any  party by way of  arbitration  or other  legal  proceeding.  The
Secretariat of the International Court of Arbitration of the ICC, the arbitrator
and/or  the  chairman  of the  arbitration  panel  shall be  empowered  to order
emergency  interim relief in the way of injunction or similar  equitable  relief
which emergency  interim relief may be ordered  whenever  appropriate  including
before or during any conciliation process.

Critical  Principle  Number 23
Reasoned Decisions and Enforceability: All decisions, in every arbitration, will
be reasoned decisions. The Affiliations structure,  documentation and  operation
will be established  so that, to the greatest  extent  possible all  arbitration
decisions  are  final,  non-appealable  (except  as note  in  CP#22)  and  fully
enforceable.

Critical Principle Number 24
Exit  Strategies:  Provision  will be made for exiting or expanding the business
relationships  between OPC and its Affiliate and for providing fair compensation
to OPC,  its  Affiliate  and/or  any  Venture  Entity  in the event of a merger,
buyout, consolidation or acquisition with the intent of maximizing the return to
OPC, its Affiliate and any Venture Entity.

Date: 30 March 2000

By: /s/ Robert L. Campbell                      By: /s/ Carl Fricke
--------------------------                      -------------------
        Robert L. Campbell, V.P.                        Carl Fricke, CEO
        Ocean Power Corporation                         CIMA Capital, LLCEXHIBIT 10.18

                             JOINT VENTURE AGREEMENT
                 (Joint Venture Entity With Exclusive Territory)

BETWEEN THE  UNDERSIGNED:

Ocean Power Corporation  established and governed under the laws of the State of
Delaware (USA)  (hereinafter  referred to as OPC) and  maintaining its principal
place of business and headquarters at 5000 Robert J. Mathews Parkway,  El Dorado
Hills, California, USA.

ON THE ONE HAND, AND:

Apollo Water and Power  International,  Inc.  established and governed under the
laws of the State of Nevada (USA)  (hereinafter  referred to as "Affiliate") and
maintaining  its principal  place of business and  headquarters  at 500 Elmhurst
Circle, Sacramento, California (USA).

ON THE OTHER HAND,

         WHEREAS,   OPC  has  enhanced  and/or   integrated   various   existing
technologies  for the  purpose of  modular  water and power  production,  and is
developing new systems, sub-systems and technologies for modular water and power
production, and

         WHEREAS,  Affiliate  desires  to  market  and sell the  water and power
produced by OPC modular water and power producing systems, and

         WHEREAS,  OPC and  Affiliate  hereby  intend to establish  the terms by
which they will purchase,  finance, assemble,  construct,  install, own, operate
and maintain OPC water and power  producing  systems in the Operating  Territory
and market and sell the water and power produced therefrom, and

         WHEREAS,  it is contemplated that OPC will derive profits from the sale
of OPC water and power producing  systems and related  services and that OPC and
Affiliate  will each derive income from the sale of water and power  produced by
said systems, and

         WHEREAS OPC and Affiliate have  concluded this Joint Venture  Agreement
with the  purpose of  setting  out the terms and  conditions  and the rights and
commitments  which arise for each of them from this Joint Venture  Agreement and
from the conditions specified in the Additional Documents to be drawn up between
OPC and Affiliate.

THUS HAVING BEEN STATED, the following has been stipulated and agreed:

                                    SECTION I
                               GENERAL PROVISIONS

ARTICLE ONE:  Definitions

1.0 For the purposes of this Joint Venture Agreement, the words and phrases used
herein shall have the following meanings:

                                       1
<PAGE>

1.1. "Joint Venture Agreement" refers to the present Joint Venture Agreement.

1.2. "Party(s)" refers to OPC and/or Affiliate and to any of their subsidiaries,
parents and assignees.

1.3. "Venture Entity" refers to the Jointly Owned Limited Liability Entity to be
established in the Operating Territory pursuant to this Joint Venture Agreement.

1.4. "Subsidiary or Parent Company or Organization" refers to:

         a) any company or  organization  at whose  meetings a Party directly or
         indirectly holds more than fifty percent (50%) of the voting rights, or

         b) any  person,  company or  organization  or public  body  directly or
         indirectly,  holding more than fifty percent (50%) of the voting rights
         at meetings of a Party, or

         c) any  company  or  organization  at whose  meetings  more than  fifty
         percent  (50%) of the voting  rights are held directly or indirectly by
         one or more  companies or public  bodies  constituting  a Subsidiary or
         Parent to or of a Party within the spirit of paragraph a) and b) above,
         together or separately.

1.5. "Dollar" refers to the United States of America Dollar.

1.6. "OPC Water and Power Systems" refers to water or power production  systems,
subsystems,   components  and/or  attachments  designed,  manufactured,   and/or
approved for use by OPC.

1.7. "OPC Trademarks" refers to any word, name,  symbol,  dress and/or device by
which  OPC's  products  and/or  services  are or can be  distinguished  from the
products and/or services of others.

1.8. "Know-how" refers to all non-public information and/or devises known to OPC
and  relating  in any way to the  design,  manufacture,  integration,  assembly,
shipping,   construction,   installation,    commissioning,   operation   and/or
maintenance  of water and power  production  systems  regardless of whether such
information  or devise is  patentable,  patented,  recorded  or  unrecorded  and
whether or not such  information or devise has been  incorporated or utilized in
an OPC Water and Power System.

1.9. "Intellectual  Property"   refers to the OPC  Trademarks  and the  Know-how
collectively.

1.10.  "Operating  Territory"  refers to the Hellenic  Republic (Greece) and the
Republic of Cyprus as currently defined by the European Union.

1.11.  "Additional  Documents" refers to the following documents which are to be
negotiated  and agreed to by OPC and  Affiliate  following the execution of this
Joint Venture Agreement:

                  a)       Operating Agreement to be attached hereto as Appendix
                           A, and executed by the Parties and the Venture Entity
                           for the purpose of committing  the Venture  Entity to
                           the  terms  and  conditions  of  this  Joint  Venture
                           Agreement.

                  b)       Shareholders   Agreement   or  similar   document  as
                           appropriate  to  the  form  chosen  for  the  Venture
                           Entity,  to be  attached  hereto  as  Appendix  B and
                           executed  by OPC and  Affiliate  for the  purpose  of
                           committing   the  Parties  in  their   capacities  as
                           shareholders or owners of the Venture Entity,  to the
                           terms and conditions of this Joint Venture Agreement.

                                       2
<PAGE>

                  c)       Initial  Business  Plan  to  be  attached  hereto  as
                           Appendix  C  and  executed  by  the  members  of  the
                           Operations Committee.

                  d)       Trademark  License Agreement to be attached hereto as
                           Appendix D and executed by OPC and the Venture Entity
                           for  the  purpose  of  establishing   the  terms  and
                           conditions  under  which the  Venture  Entity will be
                           allowed  to  utilize  the  OPC   Trademarks   in  the
                           Operating Territory.

                 e)        OPC Terms of Trade a copy of the  current  version of
                           which will be attached  as Exhibit 1 and  executed by
                           OPC  and  the  Venture  Entity  for  the  purpose  of
                           establishing the terms and conditions under which OPC
                           will sell and support  and,  the Venture  Entity will
                           purchase, OPC Water and Power Systems.

                  f)       OPC Terms of Service a copy of the current version of
                           which will be attached  as Exhibit 2 and  executed by
                           OPC  and  the  Venture  Entity  for  the  purpose  of
                           establishing the terms and conditions under which OPC
                           will provide commercial and technical  consulting and
                           support services to the Venture Entity.

                  g)       OPC  Trademark  Policy and  Guidelines  a copy of the
                           current  version of which will be attached as Exhibit
                           3 for the purpose of providing detailed  instructions
                           on the permissible  uses and  applications of the OPC
                           Trademarks

1.12  "Operations"  refers to all  activities  carried out to market,  purchase,
finance, assemble,  construct,  install,  commission,  own, operate and maintain
water and/or power production systems and to market,  sell and deliver the water
and/or power produced therefrom.

1.13  "Studies  and   Information"   refers  to  the  results  of   experiments,
observations,  data collection, expert consultations and experiences relating to
the operation and/or maintenance and/or performance of water or power production
systems, subsystems or components and the environment in which they operate.

1.14  "Option Commencement  Date": As used herein, the Option  Commencement Date
shall be determined as follows:

                  a)       If the  basis  for  the  termination  is  the  mutual
                           written  agreement  of the  parties,  then the Option
                           Commencement  Date  will  be  the  date  the  written
                           agreement is fully executed unless a different Option
                           Commencement Date is agreed to therein.

                  b)       If the basis for the  termination is at the option of
                           either party upon the giving of written notice,  then
                           the Option Commencement Date will be the later of (i)
                           the date the  written  notice was given,  or (ii) the
                           expiration of any applicable cure period.

                  c)       If the basis for  termination  is  disputed by either
                           Party or the Venture Entity then the Option  Commence
                           Date  will be the date on which a final  decision  is
                           issued  by  the  arbitration   panel  confirming  the
                           claimed  basis for  termination  unless  the  Parties
                           agree in writing to the  resolution of the dispute in
                           which case the Option  Commencement  Date will be the
                           date of the written resolution.

                                       3
<PAGE>

ARTICLE TWO: Purpose of the Joint Venture Agreement

2.1  Purpose:  This Joint  Venture  Agreement  is  concerned  with  defining the
conditions  under which the  Parties  plan  jointly to carry out the  marketing,
purchase,  assembly,  construction,   installation,   commissioning,  operation,
maintenance  and  finance  of OPC  Water  and  Power  Systems  in the  Operating
Territory and the  marketing,  sale and delivery of water and power  produced by
said systems.

2.2  Commencement: Starting from the signing of this Joint Venture Agreement,  a
Joint Venture (hereinafter referred to as "the Joint Venture") is set up between
the Parties.  This Joint  Venture has no legal status and its only purpose is to
carry out the terms of this Joint  Venture  Agreement.  Neither  Party  shall be
obligated  to undertake  Operations  unless and until the Parties have agreed to
the terms and conditions of the Operating Agreement,  Shareholder Agreement, the
Business  Plan,  Trademark  License,  Terms of Trade and the  Terms of  Service.
Should the Parties  fail to reach  agreement as to any of the  Documents  listed
above  within  sixty  days of the date  this  Joint  Venture  Agreement  is last
executed,  then either Party may declare this Joint Venture  Agreement  null and
void  without  liability  or  compensation  being  paid by or to  either  Party.
However,  the confidentiality and intellectual  property provisions will survive
such null and void determination.

ARTICLE THREE: Ownership of Joint Venture

3.1  Ownership: Each Party shall have the following share in the Venture Entity:

                       a)      Forty-nine percent (49%) for OPC
                       b)      Fifty one percent (51%) for Affiliate

3.2  Profits:  Except as may  otherwise be stated in the present  Joint  Venture
Agreement   and/or  the   Additional   Documents,   the   Parties   will  share,
proportionally  to their  interest  defined  above,  the  profits of the Venture
Entity and, if losses may be passed through to the owners for tax purposes, then
also as to said losses.

3.3  Non-assessable:  Except as may be otherwise  provided in this Joint Venture
Agreement and/or the Additional Documents,  each Party's interest in the Venture
Entity will be fully paid and non-assessable.

3.4  Approval Required for Transfer: Neither Party is at liberty to transfer its
rights and commitments  arising from this Joint Venture  Agreement in part or in
full without the consent of the other party  except to a  subsidiary  company or
organization  as set forth in Article 1 of this  Joint  Venture  Agreement.  For
purposes of this Article any change in the voting  control of Affiliate  and any
transfer,  encumbrance or hypothecation of shares of the Venture Entity shall be
considered  as a transfer  of rights  and  commitments  arising  from this Joint
Venture Agreement

3.5  Termination:  If a Party  requests  approval  from the  other  Party  for a
transfer of its rights and commitments arising from this Agreement and the other
Party refuses to grant its approval,  the proposed transferring Party may either
proceed under the terms of this Agreement without transferring its interests, or
declare this Agreement terminated.

ARTICLE FOUR: Running of the Joint Venture.

4.1  Venture Entity: Operations in the Operating Territory are to be carried out
directly or indirectly by and through the Venture  Entity in faithful  adherence
to the Business Plans approved by the Operations Committee.

                                       4
<PAGE>

4.2   Operations Committee

4.2.1 Constitution:   The  Operations  Committee  will be  made up of two  equal
halves, one being the representative(s) appointed by OPC and the other being the
representative(s)  appointed by  Affiliate.  The  Operations  Committee  will be
chaired by an OPC representative appointed to said position by OPC.

4.2.2 Duties: The Operations Committee will be responsible for approving (a) the
annual  Business Plan of the Venture  Entity  prepared by the Venture Entity and
submitted  to the  Operations  Committee  at least ninety (90) days prior to the
commencement  of each fiscal year and, (b) any  amendments  thereof.  The annual
Business  Plan  of  the  Venture  Entity  will  identify  the  Operations  to be
undertaken  by the  Venture  Entity  during the budget  year and the methods and
means of undertaking those Operations and will include,  but will not be limited
to:

         a)  the type and schedule for implementation of all works;

         b)  a list of suppliers to be used by the Venture Entity;

         c)  the  contracts to be entered into by the Venture  Entity during the
             year  which  amount to more  than two  hundred  and fifty  thousand
             dollars  ($250,000.00)  or which contain  commitments  which extend
             beyond the budget year;

         d)  the itemized  budget of the Venture Entity  including all projected
             income and expenses and sources of same.

4.2.3 Access to Information: The Operations Committee shall have complete access
to all information and data concerning the Venture Entity which  information and
data will be provided to the Operations Committee by the Venture Entity upon the
request of the Chairman of the Operations Committee.

4.2.4 Decisions: Decisions by the Operations Committee will be taken unanimously
by  representatives  designated by the Parties.  In the event of the  Operations
Committee  being unable to arrive at a unanimous  decision any deadlock shall be
resolved in accordance  with the  provisions of Article 12 of this Joint Venture
Agreement

4.2.5 Convening and Meetings:  The Operations Committee shall meet at least once
every  quarter in any place  decided in advance by mutual  agreement  after each
representative  has been notified by the Chairman with twenty (20) calender days
notice;  in  urgent  circumstances  this  period  may  be  shortened  by  mutual
agreement.

         a) Written notification shall give details of the date, time, place and
         agenda for the meeting; in particular, the agenda shall include a draft
         of all questions to be written out  beforehand by the  representatives.
         If one  of the  representatives  issues  a  request  in  writing  for a
         meeting,  the Chairman is obliged to convene the  Operations  Committee
         within a term not exceeding twenty (20) calender days.

         b) Within  twenty  (20)  calender  days  following  the  meeting of the
         Operations  Committee,  the  Chairman  shall  forward  to  each  of the
         representatives a detailed minutes.

         c) Each of the representative  shall have twenty (20) calender days for
         making  remarks  and  corrections  statements,  absence  of a  response

                                       5
<PAGE>

         constitutes  acceptance of the minutes.  After gathering the remarks of
         the  representatives,  the Chairman  shall forward the final report for
         signature.

         d) Attendance at Operations Committee meetings may be made by telephone
         or  video  conference  facilities  provided  that  all  representatives
         participating can hear one another.

         e) The Chairman may require the attendance at any Operations  Committee
         meeting of any officers,  employees,  consultants,  contractors  and/or
         directors of the Venture Entity as he or she may determine.

4.3 Carrying out  Operations:  The Venture  Entity will carry out the marketing,
purchase,  assembly,  construction,   installation,   commissioning,  operation,
maintenance  and  finance of all OPC Water and Power  Systems  in the  Operating
Territory and the  marketing,  sale and delivery of water and power  produced by
said systems. The Venture Entity shall take all necessary actions for preserving
and protecting human life, the environment,  goods and properties of the Parties
and the Venture Entity and shall conduct the  Operations in accordance  with the
rules of the respective  trades,  all laws and  regulations,  the Business Plans
approved by the Operations Committee,  this Joint Venture Agreement and the then
current Additional Documents. The Venture Entity is especially in charge of:

         a) preparing and entering into service and supply  contracts with third
         Parties,  with the priority  being given to companies in the  Operating
         Territory,  and to monitor the proper performance of the works assigned
         to them;

         b) assuring compliance with all of its contracts and obligations;

         c) protecting the Parties from any liability arising from Operations in
         the Operating Territory;

         d) preparing the annual  Business Plan and all budgets and  attachments
         thereto;

         e) maintaining a skilled and dedicated workforce, and;

         f) complying with all laws, rules,  regulations and similar  directives
         properly applied to its Operations by any government,  quasi-government
         or multi-national  agency and appealing and contesting any laws, rules,
         regulations  and similar  directives  which it reasonably  believes are
         improperly    applied   to   its   Operations   by   any    government,
         quasi-government or multi-national agency, and;

         g) retaining the services of a "Big 5" accountancy firm with offices in
         the Operating  Territory and cooperating  with said firm in that firm's
         preparation of audited annual financial reports of the Venture Entity's
         Operations.

4.4   Venture Entity:

4.4.1 Formation: Affiliate shall form the Jointly Owned Limited Liability Entity
under the laws of the  Operating  Territory  within  thirty (30)  calender  days
following  OPC's  written  notification  to  Affiliate  that OPC is  capable  of
delivering  OPC Water and Power  Systems in  accordance  with the Terms of Trade
Agreement.

                                       6
<PAGE>

4.4.2 Operations:  The Jointly Owned Limited Liability Entity shall be organized
and operated in accordance  with the provisions of this Joint Venture  Agreement
including  those  contained  in  the  Operating   Agreement,   the  Shareholders
Agreement, the Trademark License and any other Additional Documents that pertain
to its activities.

4.4.3 Financing of  Operations:   Unless  otherwise  agreed between the Parties,
expenditures  arising from Operations in the Operating  Territory shall be borne
by the Venture Entity.

4.4.4 Royalties / Taxes and Dues: Taxes, dues and royalties and similar expenses
connected to Operations shall be payed by the Venture Entity.

4.5   Appendices:  The  Appendices  to be  attached  to this  Agreement  form an
integral part of this Joint Venture Agreement.

4.6   Representation  of  the  Joint  Venture:   Each  Party  shall  secure  its
representation  before any Operating  Territory  administrative  or other public
agency for matters involving its own rights and interests when such are separate
from or, in conflict with the interests of the Venture  Entity.  Otherwise,  the
Venture  Entity shall  represent the Joint  Venture in all  Operating  Territory
administrative or other public agency matters.

4.7   International  Standards  Organization  (ISO): Within ninety (90) calender
days following its formation the Venture  Entity shall  commence  reasonable and
diligent efforts to obtain certification, by an accredited certification body in
the  Operating  Territory,  that its  Operations  conform with current ISO 9001,
9002, 9003 and 14001 standards. The Venture Entity shall continue its reasonable
and diligent ISO 9000 and 14000 certification  efforts until said certifications
are obtained and thereafter shall undertake all necessary actions to ensure that
its ISO 9000 and 14000 certifications remain valid and current.

                                   SECTION II
                        SPECIAL CONDITIONS FOR OPERATIONS

ARTICLE FIVE:  OPC Water and Power  Systems:  All  Operations,  in the Operating
Territory,  by the Parties and the Venture Entity will be undertaken through the
use and application of OPC Water and Power Systems

ARTICLE SIX: Operations Finance: All Operations in the Operating Territory shall
be financed by and shall be maintained on the books of the Venture Entity.

ARTICLE SEVEN: Exclusivity:

7.1 Operating  Territory:  Neither Party nor the Venture Entity shall undertake,
either  itself or with others,  directly or  indirectly,  any  Operations in the
Operating  Territory  except in accordance  with the terms and conditions of the
this Joint Venture Agreement and the Additional Documents.

7.2 Extra-Territorial Operations: Neither Affiliate nor the Venture Entity shall
undertake  any  Operations  either  themselves  or  with  others,   directly  or
indirectly outside the Operating Territory.

                                       7
<PAGE>

7.3   Remedies: In addition to any other  remedies in law or in equity which may
otherwise attach,  the Parties agree that any violation or threatened  violation
of any of the provisions of this Section II may be enjoined and prevented by any
legal means.

                                   SECTION III
            PROVISIONS RELATING SPECIFICALLY TO INTELLECTUAL PROPERTY

ARTICLE EIGHT: Ownership

8.1.  Know-how:

8.1.1 Ownership: All Know-how is and will remain the sole and exclusive property
of OPC.

8.1.2 Disclosure and Use: OPC shall disclose to Affiliate and the Venture Entity
such Know-how as is reasonably  necessary to allow the Venture Entity to utilize
OPC Water and Power  Systems in the  Operating  Territory  and Affiliate and the
Venture Entity will be allowed to use said disclosed Know-how for the purpose of
fulfilling their obligations in accordance with this Joint Venture Agreement and
the Additional Documents and for no other purpose.

8.1.3 Grant Back Rights:  All rights to  improvements,  advances and  derivative
technologies  and/or  processes  created or discovered  by or through  Affiliate
and/or  the  Venture  Entity  relating  to any  Know-how  will be and are hereby
unconditionally and irrevocably granted back to OPC.

8.1.4 Grant  Forward:    Any right to use and to have Know-how  disclosed  under
Section  8.1.2  above  will  include  the  right to use and have  disclosed  any
improvements,  advances,  and  derivative  technologies  and  processes  of said
Know-how including such as are obtained by OPC through its Grant Back rights.

8.2   Trademarks:

8.2.1 Ownership:   All  Trademarks  are and will  remain the sole and  exclusive
property of OPC.

8.2.2 Use: The Venture  Entity will  prominently  display the  Trademarks in all
correspondence,  marketing  materials and equipment in accordance  with the then
current OPC Trademark Policy and Guidelines.

8.3   Studies and Information:

8.3.1 Ownership:   All rights to and in all  Studies and  Information  collected
during Operations  carried out in the scope of this Joint Venture Agreement will
be the property of OPC.

8.3.2 Access and Use: Each Party and the Venture Entity shall have access to all
Studies  and  Information  collected  by either of the Parties or by the Venture
Entity  within the  framework  of  Operations  relating  to this  Joint  Venture
Agreement  and  Affiliate  and the  Venture  Entity  will be allowed to use said
Studies and  Information a necessary to fulfill their  obligations in accordance
with this Joint Venture Agreement and the Additional  Documents and for no other
purpose.

8.4   Confidentiality

                                       8
<PAGE>

8.4.1 Protection and  Non-disclosure:  Affiliate and the Venture Entity and each
of  their  officers,  directors,   shareholders,   employees,   contractors  and
consultants,  and Subsidiary and Parent  Companies and  Organizations  and their
officers, directors,  shareholders,  employees, contractors and consultants will
and do  hereby  undertake  and  agree  to keep  all  Know-how  and  Studies  and
Information  strictly  confidential,  to disclose  same to no one without  OPC's
prior  written  consent,  to utilize  said  information  only for the purpose of
performing their obligations in accordance with this Joint Venture Agreement and
the Additional Documents,  and to return any document or other form of recording
and all objects which contain any Studies,  Information  or Know-how to OPC upon
request.  Affiliate  and the  Venture  Entity  with take all  actions  which are
reasonable and necessary to ensure that the officers,  directors,  shareholders,
employees,  contractors,  and  consultants  mentioned above are aware of and are
acting in compliance with this Confidentiality provision.

8.4.2 Disclosure  of Studies and  Information.   Nothing in Section  8.4.1 above
shall be construed as preventing  Studies or  Information  from being  disclosed
pursuant to proper legal  compulsion to government  authorities in the Operating
Territory  or to any third  Party  entitled  by law to obtain  such  Studies  or
Information.

8.5.  Intellectual  Property  Acknowledgment  and  Challenge:  Affiliate  hereby
acknowledges   OPC's  ownership  of  the  Know-how,   Trademarks,   Studies  and
Information  and agrees that any act by Affiliate or the Venture  Entity whether
alone or through others and whether  directly or indirectly  which challenges or
contests OPC's ownership of any Know-how,  Study,  Information  and/or Trademark
will be considered  sufficient grounds to terminate this Joint Venture Agreement
and all Operations associated with this Joint Venture.

8.6   Remedies: In addition to any other  remedies in law or in equity which may
otherwise attach,  the Parties agree that any violation or threatened  violation
of any of the  provisions of this Article Eight may be enjoined and prevented by
any legal means.

8.7   Warranty  of  Rights:  To the best  knowledge  of OPC,  there are  neither
pending nor  threatened,  any actions,  suits,  proceedings or claims or, to the
best  knowledge of OPC, any basis  therefor,  with respect to the use of the OPC
Water and Power Systems,  OPC Trademarks or Know-how or the  manufacture or sale
of any  product  using  or  incorporating  the  OPC  Water  and  Power  Systems,
Trademarks  or  Know-how,  and no such use of the OPC Water  and Power  Systems,
Trademarks  or Know-how  will  infringe or  otherwise  violate the rights of any
third  party,  whether  such  rights  are in the  nature of  patent,  copyright,
trademark or other intellectual or industrial property rights.

                                    SECTION V
                            MISCELLANEOUS PROVISIONS

ARTICLE NINE: Responsibility and Insurance

9.1   Personnel: Except in the case of gross  negligence,  each Party shall bear
the costs of any personal  injuries  occurring in the performance of duties laid
down by this Joint  Venture  Agreement to personnel  directly  employed by them,
whatever Party is to blame for the injury. Consequently,  neither of the Parties
shall have any remedy at law against  the other for  personal  injury  caused to
personnel,   without   prejudice  to  the  rights  of  those  injured  or  their
beneficiaries.

                                       9
<PAGE>

9.2   Waiver of Right of Recourse: The Parties  waive all  recourse  against the
other with respect to any act or omission  causing personal injury to the others
employees and will  undertake to obtain a similar  waiver of recourse from their
own insurers.

ARTICLE TEN: Force Majeure:

10.1  Non-Liability: In the performance of its duties, neither of the Parties is
responsible for loss or damage arising from any delay or failure  resulting from
a Force Majeure.

10.2  Definition  of  Force  Majeure:  The term  "Force  Majeure  refers  to any
happening  beyond  the  control of the  affected  party and  preventing  it from
fulfilling in part or in full commitments including:

         a)  wars,

         b)  riots or civil  disturbances,

         c)  earthquakes, floods, lightning or other natural  disasters,

         d)  impossibility to use railways, ports, airports,  roads,

         e)  strikes and lockouts,

         f)  acts of God

10.3  Government  Interference:  Cases of  Force  Majeure  include,  but are not
limited to, delays resulting from application of Operating Territory legislation
or the acts of the Operating Territory government and its agencies.  Such delays
shall entail no compensation for either Party.

ARTICLE ELEVEN: Termination

11.1  Grounds for Termination: This Joint Venture Agreement may be terminated as
follows:

                  a)       By the mutual written agreement of the Parties

                  b)       At the option of either Party upon written  notice to
                           the  Venture  Entity and the other Party in the event
                           that:

                           (i)      the Venture  Entity is declared by an agency
                                    of competent  jurisdiction to be unqualified
                                    or disqualified from undertaking one or more
                                    of its necessary functions;

                           (ii)     the Venture  Entity has operated  without an
                                    approved  Business  Plan  for  a  period  in
                                    excess of ninety (90) days;

                           (iii)    the  Venture  Entity  has  failed  to  pay a
                                    dividend for three (3) consecutive years;

                                       10
<PAGE>

                           (iv)     the Venture  Entity's  gross  revenues  have
                                    increased at a rate of less than twenty-five
                                    percent   (25%)   in  each  of   three   (3)
                                    consecutive years;

                           (v)      the Venture Entity remains in default on any
                                    of its water or power production obligations
                                    for a period in excess  of one  hundred  and
                                    twenty  (120) days,  unless such  default is
                                    caused by the  failure  of  either  Party to
                                    comply with its obligations under this Joint
                                    Venture    Agreement   or   the   Additional
                                    Documents,  in  which  case  the  defaulting
                                    Party shall not have the option to terminate
                                    this Joint Venture Agreement;

                           (vi)     the Venture Entity remains in default on any
                                    of its financial obligations for a period in
                                    excess of one hundred and twenty (120) days.

                           (vii)    the  Venture  Entity has caused or allowed a
                                    material  breach of the Operating  Agreement
                                    and failed to  rectify  the  default  within
                                    ninety  (90) days of being  notified  of the
                                    breach.

                  c)       At the  option of the  non-defaulting  party upon the
                           occurrence  of a breach of a material  obligation  by
                           the other Party which the  defaulting  Party does not
                           rectify  within a period of ninety days from the date
                           of receiving  formal notice from the non-breach Party
                           of its intention to terminate.

                  d)       Any other  grounds for  termination  provided  for in
                           this   Joint   Venture   Agreement,   the   Operating
                           Agreement,   the  Shareholders   Agreement,   or  the
                           Additional Documents.

11.2  Continued  Operation  Option: In the event this Joint Venture Agreement is
terminated , OPC shall have the option to continue  Operations  in the Operating
Territory  either  itself  or  with  others,  with  compensation  being  paid to
Affiliate  in  accordance  with  the  terms of  Section  11.3.  OPC must  notify
Affiliate in writing within thirty (30) days of the Option  Commencement Date of
its  intention  to exercise  this option.  Following  said thirty day period the
option shall terminate.

11.3  Compensation:  In the  event  OPC  elects to  continue  Operations  in the
Operating  Territory as provided for in Section  11.2 above,  it shall  purchase
from Affiliate all of Affiliate's rights, titles and interests in the Operations
in the  Operating  Territory  by  purchasing  all of  Affiliate's  shares in the
Venture Entity.  The value of Affiliate's  shares in the Venture Entity shall be
the  greater  of the  values  produced  through  application  of  the  following
valuation methods, subject to receipt of a fairness opinion letter, if required.

11.3.1 Book value with  account  adjustments:  The book value as of the close of
business on the last day of the calendar  month  preceding the date of the event
providing  the grounds for the  termination.  The book value shall be determined
from the Venture  Entity's books and records as of that date by the  independent
certified  public  accountants  regularly  engaged by the Venture Entity on that
date. That  determination  shall be made in accordance  with generally  accepted
accounting  principles  applied  on a basis  consistent  with  those  previously
applied by the Venture Entity, but observing the following principles:

                                       11
<PAGE>

                  a)       There shall be subtracted any value  attributable  to
                           goodwill, patents, copyrights, and similar intangible
                           items to the extent so  included  in book value under
                           the formula,  unless such items were purchased by the
                           Venture Entity and had previously been entered in its
                           books in the regular  course of business and with the
                           authorization of its Board of Directors.

                  b)       All  accounts  payable  shall be taken at face amount
                           less normal  discount,  and all  accounts  receivable
                           shall be taken at face amount  less  normal  discount
                           and a reasonable reserve for bad debts.

                  c)       All real property, machinery, furniture, fixtures and
                           equipment  shall be taken at the valuation  appearing
                           on the Venture  Entity's  books and records,  without
                           adjustment  for  depreciation   taken  on  them.  Any
                           amounts  shown  on the  Venture  Entity's  books  and
                           records  for  leases to which it is a party  shall be
                           excluded.

                  d)       Inventory and supplies shall be computed at cost,

                  e)       All  accrued  and   properly   accruable   taxes  and
                           assessments shall be deducted as liabilities

                  f)       There shall be subtracted  the adjusted cost basis as
                           shown on the Venture Entity's books of any securities
                           owned by it, and there  shall be added a sum equal to
                           the  "value of such  securities  as of the  valuation
                           date.  For  this  purpose,  the  value  of  any  such
                           securities  shall be deemed to be (1) the fair market
                           value,  if  they  are  traded  on any  stock  market,
                           over-the-counter  market or similar market or if they
                           are readily  liquidatable  money market  instruments,
                           (2) the value as calculated under any bylaw provision
                           or agreement  to which the Venture  Entity is a party
                           that  establishes a valuation  method with respect to
                           said securities,  or (3) there book value as computed
                           under  this  provision   from  financial   statements
                           obtained  from  the  issuer  but  if  no  current  or
                           sufficient financial information can be obtained from
                           the issuer  then,  the cost basis for the  securities
                           shall be used.

                  g)       The  Venture  Entity's  "book  value"  shall mean the
                           difference   between  its  total   assets  and  total
                           liabilities as herein determined.  The book value per
                           share shall be  determined by dividing the book value
                           of  the  Venture  Entity  by  the  number  of  shares
                           outstanding on the valuation date.

11.3.2 Weighted  Capitalization  of Earnings:  The price per share calculated as
seven (7) times the  quotient  determined  by dividing by fifteen the sum of the
following  products and dividing the result by the number of outstanding  shares
as of the date of the event giving rise to the  termination:  five times the net
profit or loss of the most recent fiscal year before the termination  under this
Agreement;  four times the net profit or loss of the second most  recent  fiscal
year;  three times the net profit or loss of the third most recent  fiscal year;
twice the net profit or loss of the fourth most recent fiscal year;  and the net
profit or loss of the fifth most recent  fiscal year.  If the  valuation is made
prior to the end of the fifth  fiscal year of  Operations,  then the earnings or
losses for each year shall be  multiplied  according  to the above  calculations
through the first fiscal year with the  resulting sum being divided by the total
of the multipliers  used. The net profit or loss for any fiscal year shall be as
disclosed  on the Venture  Entity's  statement  of profit and loss for that year
except that:

                                       12
<PAGE>

                  a)       Capital  gains or  losses  shall be  computed  at 100
                           percent;

                  b)       No adjustment  shall be made for loss  carry-backs or
                           carry-overs.

11.3.3 Return on Investment. The price per share calculated as Affiliate's basis
in the share  increased at the rate of ten percent  (10%) per year from the date
of purchase to the date of the event giving rise to termination.

11.3.4 Look Back Capitalization of Earnings: For three years following the event
causing the termination,  the price per share shall be recalculated at the close
of each  financial  quarter.  The price per share  shall be  recalculated  as an
amount equal to five and one half (5.5) times the aggregate of the corporation's
net losses  and  profits  during  that  quarter  divided by the number of shares
outstanding  as of the last day of the  quarter  and  appropriately  adjusted to
account for any  intervening  stock split or reverse split.  At the close of the
twelfth  financial  quarter the average price per share for the twelve  quarters
shall be determined and this average shall be used as the Look Back value of the
shares. Any additional  compensation owed to the Seller as a result of this look
back  calculation  shall be paid to the Seller in  accordance  with the  payment
provisions  herein.  The net profit or net loss for any fiscal  year shall be as
disclosed  on the  statement  of profit and loss of the Venture  Entity for that
year except that:

                  a)       Capital  gains or  losses  shall be  computed  at 100
                           percent;

                  b)       No adjustment  shall be made for loss  carry-backs or
                           carry-overs.

11.4.1 Buy/Sell Offer Option:  In the event OPC fails to notify Affiliate of its
intention  to exercise its Option  under  Section 11.2 above within  thirty (30)
calender days following the Option  Commencement Date, then Affiliate shall have
the option to set a single  price per share at which it is willing to either buy
all of OPC's shares or sell all of its shares in the Venture  Entity.  Affiliate
shall notify OPC of its intention to present a Buy/Sell Offer within twenty (20)
calender  days  after the lapse of OPC's  option  rights.  Affiliates  option to
present a Buy/Sell  offer to OPC will  terminate  at the end of the twenty  (20)
calender day option period.

11.4.3 License,  Terms of Trade and Terms of Service Agreements:  Within fifteen
(15) calender days after being  notified by Affiliate of its intention to make a
buy/sell offer, OPC shall present Affiliate with the agreements listed below.

                  a)       License   Agreement   setting  forth  the  terms  and
                           conditions  under which  Affiliate will be allowed to
                           utilize  the  Know-how,  Studies and  Information  in
                           conducting  Operations  in  the  Operating  Territory
                           which terms and  conditions  will be consistent  with
                           the  intellectual  property  provisions of this Joint
                           Venture Agreement but including a reasonable  ongoing
                           royalty to OPC.

                  b)       Terms of Trade Agreement  setting forth the terms and
                           conditions  under which  Affiliate will be allowed to
                           purchase  OPC Water and Power  Systems and Spares for
                           use within the  Operating  Territory  which  Terms of
                           Trade shall be consistent  with the then existing OPC
                           Terms of Trade.

                  c)       Terms of Service  Agreement  setting  forth the terms
                           and conditions  under which OPC will provide services
                           to  Affiliate  which  terms  and  conditions  will be
                           consistent  with  the  then  existing  OPC  Terms  of
                           Service.

                                       13
<PAGE>

11.4.4 Presentation  and Acceptance of the Buy/Sell Offer:   Within fifteen (15)
calender days of receipt of the License Agreement,  Terms of Trade Agreement and
Terms of Service  Agreement,  Affiliate will present OPC with a written Buy/Sell
offer.  OPC will have fifteen (15) calender days to notify  Affiliate in writing
of its acceptance of the offer and its intention to purchase  Affiliates  shares
at the price per share provided for in the Buy/Sell  offer.  If the fifteen (15)
calender day  acceptance  period  expires  without an acceptance  being received
Affiliate then, Affiliate shall be the Purchaser and OPC the Seller.

11.4.5 Closing:  Within fifteen (15) calender days of acceptance or lapse of the
acceptance  period,  whichever  occurs last,  the Seller shall  deposit with the
Venture  Entity's  accountants  all of its  Venture  Entity  share  certificates
endorsed in favor of the Purchaser and Purchaser  shall deposit with the Venture
Entity's accountants the funds or funds and promissory note as the case maybe in
accordance  with the payment  provisions  in Section 11.5 below.  Once the share
certificates and payment  documents have been deposited,  the accountants  shall
deliver  the  funds,  notes and  certificates  to the Seller  and  Purchaser  as
appropriate.  Both  Seller  and  Purchaser  shall  defend  and hold the  Venture
Entity's  accountants  harmless  from  any  liability  arising  from its acts in
accordance  with  this  Section  11.4 and shall  share  equally  in  paying  the
accountant's fees in performing these tasks.

11.5   Payment: At the option of the purchasing  Party, the purchased shares may
be paid for in either of the following two fashions

11.5.1 Cash: By wire  transfer of  immediately  available  funds or a certified,
cashier's or other check  acceptable to the selling Party for the full amount of
the compensation less a ten percent (10 %) discount.

11.5.2 Instalments:  By payment of twenty-five percent (25%) of the compensation
amount in cash as described  above with the remaining  amount  payable in twelve
(12) equal  quarterly  payments with  interest on the unpaid  principal at LIBOR
plus 1% adjusted  quarterly.  Said  remainder  will be evidenced by a Promissory
Note in standard form without pre-payment  penalty. The promissory note shall be
secured by the shares being sold.

11.6   Cooperation: The Parties agree to cooperate  fully with each other during
the  termination,  valuation,  payment and transition  process,  to execute such
documents as are  reasonably  necessary  for the  consummation  of all necessary
transactions  and to take no action  that would  devalue  the  Venture  Entity ,
compromise it operations or negatively impact its future prospects.

11.7   Non-Competition:In the event of termination, the selling Party shall not,
directly or indirectly,  carry on or engage in, as an owner, manager,  operator,
employee,  salesman, agent, consultant, or other participant,  any Operations or
any similar activities in the Operating Territory, for as long as the purchasing
Party,  or any person  deriving  title to the  goodwill of the  Venture  Entity,
carries  on  Operations  in  the  Operating  Territory.  This  restriction  will
terminate five years from the date of the first payment by the purchasing  Party
to the selling Party in accordance with the either payment provision .

11.8   Dissolution and Winding-Up:In the event that this Joint Venture Agreement
is terminated and neither Party  purchases the Venture  Entity's shares owned by
the other Party,  then the Venture  Entity  shall be  dissolved  and its affairs
wound-up as follows:

11.8.1 Procedures During Dissolution. On commencement of dissolution proceedings
the Venture  Entity will cease to carry on business  except as necessary to wind

                                       14
<PAGE>

up its business and  distribute its assets.  The Chief  Executive  Officer,  the
President,  or any Party appointed by the President,  will perform the following
acts, as necessary, to wind up the affairs of the Venture Entity:

                  a)       Employ  agents and attorneys to liquidate and wind up
                           the affairs of the Venture Entity;

                  b)       Continue the business as necessary for the winding up
                           of the affairs of the Venture Entity;

                  c)       Carry out contracts and collect, pay, compromise, and
                           settle  debts and claims for or against  the  Venture
                           Entity;

                  d)       Defend suits brought against the Venture Entity;

                  e)       Sue, in the name of the  Venture  Entity for all sums
                           due to  the  Venture  Entity  or  recover  any of its
                           property;

                  f)       Collect any amounts owing on  subscriptions to shares
                           or recover unlawful distributions;

                  g)       Sell at public or private sale, exchange,  convey, or
                           otherwise dispose of all or any part of the assets of
                           the Venture  Entity for cash in an amount  considered
                           reasonable   by   the   President,   or  his  or  her
                           appointee(s); and

                  h)       Make  contracts and take any steps in the name of the
                           Venture  Entity that are  necessary or  convenient in
                           order to wind up the affairs of the Venture Entity.

11.8.2.  Distribution of Assets on Winding-up. The President, or the President's
appointee(s),  will  apply  the  assets  of the  Venture  Entity in the order as
established  below.  For the purposes of this paragraph,  assets  distributed in
kind will be valued at their fair  market  value as of the date of the  proposed
distribution,  determined  in good  faith by the  President  or the  President's
appointee(s).

                  a)       To all debts and liabilities of the Venture Entity in
                           accordance  with the law,  including  the expenses of
                           dissolution and liquidation,  but excluding any debts
                           to a Shareholder;

                  b)       To all senior debts to a  Shareholder  in  accordance
                           with the terms of any subordination agreement;

                  c)       To the accrued and unpaid interest on  unsubordinated
                           debts to a Shareholder;

                  d)       To  the  principal  of  unsubordinated   debts  to  a
                           Shareholder;

                  e)       To undistributed net profits of the Venture Entity

                  f)       To repayment  of the purchase  price of the shares of
                           the Venture Entity actually paid by each Shareholder;
                           and finally,

                                       15
<PAGE>

                  g)       To the  Shareholders  in  proportion to the number of
                           shares of the Venture Entity held by each.

11.9 Survival: All provisions in this Joint Venture Agreement and the Additional
Documents  relating to the  confidential  nature and  limited  use of  Know-how,
Trademarks,  Studies and  Information,  all  non-competition  provisions and all
provisions  which by their  nature are  intended to operate  after  termination,
shall survive the Termination.

ARTICLE TWELVE: Settlement of Technical or Commercial Disputes

12.1 Any  dispute of a  technical  or  commercial  nature  occurring  within the
Operations  Committee which cannot be resolved by agreement  between the Parties
within a reasonable  period may, at the request of either of them,  be submitted
for decision to an expert appointed by mutual  agreement.  Failing  agreement on
such an  appointment  within five  calender  days (5) following the request from
either of the Parties to consult  expert  advice,  the more  diligent of the two
Parties  may have  recourse to the  International  Centre for  Expertise  of the
International  Chamber of Commerce  in  accordance  with the rules on  technical
expertise  made by the latter.  Unless by  agreement  between the  Parties,  the
expert appointed by the Centre should be able to speak English and shall be from
a nationality  different from the Parties.  The Parties  undertake to accept the
decision of the expert.  Costs of the  expertise  shall be borne  equally by the
Parties to the dispute.

12.2 Termination:   In the event that either Party or the Venture Entity refuses
to comply with the decision of the Expert, this Agreement may be terminated.

ARTICLE THIRTEEN: Arbitration

13.1 Arbitration:   Except  with  respect to  specific  issues as  described  in
Sections  13.2 and 13.3 below,  all disputes  between  OPC,  the Venture  Entity
and/or  Affiliate which can not be resolved first by good faith  negotiation and
then by ICC conciliation procedures, will be resolved by a single ICC arbitrator
in accordance  with the then current ICC arbitration  rules and  facilities.  No
arbitrator  will  be  of  the  same  nationality  as  the  contestants  and  the
arbitration  proceedings  will be conducted in the English  language and held in
London unless a different venue is agreed to by the Parties.

13.2 Disputes  Concerning  Sums  and  Quantities  (Baseball  Arbitration):   All
disputes within the Venture Entity and/or between OPC, the Venture Entity and/or
Affiliate  concerning  sums or quantities  which are not resolved  first by good
faith  negotiation  and  then  through  ICC  conciliation  proceedings  will  be
submitted to a single ICC arbitrator.  Each party shall submit to the arbitrator
and exchange with each other in advance of the hearing their last,  best offers.
The arbitrator shall be limited to awarding only one or the other of the figures
submitted If the dispute concerns contract interpretation and/or other issues as
well as sums and/or  quantities,  the arbitration  should be bifurcated with the
arbitrator  first  arbitrating and rendering his or her decision with respect to
the non-sums/quantities  issues in accordance with standard ICC rules and, after
allowing the Parties a reasonable  opportunity  to submit to the  arbitrator and
exchange with each other their last,  best offers,  the  arbitrator  shall award
only one or the other of the figures submitted.

13.3 License, Operations and Affiliate Termination:  Disputes in which any Party
claims a right to  terminate  a License,  the  Venture  Entity , Venture  Entity
Operations,  or this Joint  Venture  Agreement  which  cannot be resolved  first

                                       16
<PAGE>

through good faith  negotiation  and then through ICC  conciliation  proceedings
will be submitted to a three member ICC  arbitration  panel.  Sums or quantities
issues  resulting  from such  terminations  will be excluded  from the  baseball
arbitration requirement of Section 13.2 above.  Arbitration decisions concerning
such  terminations  shall  be  appealable  to a  second  panel,  constituted  in
accordance with the ICC rules which appeal panel shall have the power to adopted
the  initial  decision,  modify the  initial  decision,  or  substitute  its own
decision but such modification or substitution shall only be allowed in order to
correct clear errors of law or clear and  convincing  errors of fact. The appeal
panel shall have the authority to order such interim  relief during the pendency
of the appeal as it deems  just and  proper.  The award of the  appeal  tribunal
shall be final and  binding,  and  judgment  may be entered by any court  having
jurisdiction thereof.

13.4 Remedies:   The  Parties  waive any right to claim or  receive  an award of
punitive or exemplary  damages by way of arbitration  or other legal  proceeding
against each other or the Venture Entity.  The Secretariat of the  International
Court of  Arbitration  of the ICC,  the  arbitrator  and/or the  chairman of the
arbitration panel shall be empowered to order emergency interim relief by way of
injunction or similar  equitable  relief which  emergency  interim relief may be
ordered  whenever  appropriate  including  before  or  during  any  conciliation
process.

13.5 Reasoned Decisions and  Enforceability:  All decisions in every arbitration
will be reasoned. All arbitration decisions are final, non-appealable (except as
set forth in Section  13.3).  The  Parties  agree to take  whatever  actions are
ordered  by an  Arbitration  Decision,  to  refrain  from  such  actions  as are
precluded by an  Arbitration  Decision  and to allow  judgement to be entered in
accordance with any Arbitration Decision in any Court of competent jurisdiction.

13.6 Attorney's  fees and  costs:   Should  any  litigation  or  arbitration  be
commenced  between the parties to this Agreement  concerning this Agreement,  or
the rights and duties of the parties in relation  to this  Agreement,  the party
prevailing in such litigation or arbitration  shall be entitled,  in addition to
such other relief as may be granted, to a reasonable sum for attorneys' fees and
costs in  connection  with such  litigation or  arbitration,  which sum shall be
determined by the trier of fact in such litigation or arbitration.

ARTICLE FOURTEEN: Amendment of Joint Venture Agreement

14.1 Written Amendments:  Provisions in this Joint Venture Agreement may only be
amended by an additional clause drawn up between the Parties.

14.2 Periodic Review and Modification:  Not less than once every thirty-six (36)
months the  Operations  Committee  shall meet for the purpose of discussing  the
terms  and  conditions  of this  Joint  Venture  Agreement  and  the  Additional
Documents to ascertain their continued effectiveness and fairness. To the extent
that any such term or condition or  combination  thereof is  determined  to have
become  ineffective  or unfair the Parties agree to negotiate  diligently and in
good faith to reach  agreement  on  amendments  or  modifications  to this Joint
Venture  Agreement  and/or the Additional  Documents as are deemed  necessary to
overcome any ineffectiveness or unfairness that has developed.

ARTICLE FIFTEEN:  Duration of Joint Venture Agreement

15.1 Duration:   This Joint Venture Agreement and any amendments or replacements
of it shall be valid as long as the Parties jointly conduct  Operations  through
the Venture  Entity or otherwise and until all accounts  between the Parties are
still to be finally settled.

                                       17
<PAGE>

ARTICLE SIXTEEN: Notification

16.1 For the purposes of this Joint Operating Agreement, any notice may be given
by messenger,  in writing (express air mail, post paid) or by facsimile from one
Party to the other and received at the following addresses:

Ocean Power Corporation:                        Affiliate
5000 Robert J. Mathews Parkway                  500 Elmhurst Circle
El Dorado Hills, CA (USA)  95672                Sacramento, CA   (USA) 95825
Tel:     916-933-8100                           Tel:     916-641-1700
Fax:     916-933-8177                           Fax:     916-64--1690

16.2 If any Party  changes its address,  it shall notify the other by registered
letter with acknowledgment of receipt.

ARTICLE SEVENTEEN:  Severability

17.1 Should any portion or  provision of this  Agreement be declared  invalid or
unenforceable  in any  jurisdiction,  then such  portion or  provision  shall be
deemed to be severable from this Agreement as to such jurisdiction  (but, to the
extent  permitted by law, not  elsewhere)  and shall not affect the remainder of
this  Agreement  unless,  enforcement  of the  Agreement  without  the  affected
provision  would deny either  Party a  fundamental  benefit of the  Agreement in
which case the Agreement will be amended to remedy such lose.

ARTICLE EIGHTEEN:  Waiver

18.1 No waiver of any  obligation  of either party  hereto under this  Agreement
shall be effective  unless in writing,  specifying such waiver,  and executed by
the  other  party.  A waiver  by either  party  hereto  of any of its  rights or
remedies under this Agreement on any occasion shall not be a bar to the exercise
of the same right or remedy on any subsequent  occasion or of any other right or
remedy at any time.

ARTICLE NINETEEN: Interpretation

19.1 Headings and Titles: The designation of a title, or a caption or a heading,
for each section of this  Agreement is for the purpose of  convenience  only and
shall not be used to limit or construe the contents of this Agreement.

19.2 Presumptions:   Because both parties hereto have  participated  in drafting
this  Agreement,  there shall be no presumption  against any party on the ground
that such party was responsible for preparing this Agreement or any part of it.

19.3 Counterparts:   This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

19.4 Complete Agreement:  This Agreement and the Additional Documents constitute
the complete  understanding  of the Parties  regarding the subject matter hereof
and supersede all prior or  contemporaneous  agreements of the parties,  whether
written or oral.

                                       18
<PAGE>

ARTICLE TWENTY: Warranty of Authority:

20.1 Each Party  warrants  that it has the power to enter into and perform  this
Agreement;  and this  Agreement's  execution  has been  duly  authorized  by all
necessary corporate action/

Ocean Power Corporation
Date:  2/23/01
By: /s/ Joseph Maceda
---------------------
        J Maceda, President

Apollo Water and Power International, Inc
Date:    3/30/00
By: /s/ John Manikas
--------------------
        John T. Mankias, Pres.

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]