Document:

Exhibit 10.23 Contract dated January 12, 2005

THIS
CONTRACT was
drawn up on January 12, 2005 by and between ECOIDEA S.R.L., ELECTRONIC SOLAR
S.R.L., EUROPEAN WASTE SOLUTION, LTD., L&R ENERGY COMPANY LLC (hereinafter
referred to as the “PARTIES”) and NATHANIEL ENERGY CORPORATION (hereinafter
referred to as “NATHANIEL”).

 

RECITALS

 

 WHEREAS, ECOIDEA
S.R.L. (hereinafter referred to as “ECOIDEA”) is constructing a plant situated
at Via S. Michele, 41, 37044 Cologna Veneta (Verona), Italy, to produce
electricity by means of the combustion of waste-derived fuel (hereinafter
referred to as the “PLANT”) using NATHANIEL patented technology and two
NATHANIEL model 1800 HP Thermal Combustors (hereinafter referred to as
“GASIFIERS” or “THERMAL COMBUSTORS”); and

 

WHEREAS, ECOIDEA
signed a contract with Electronic Solar, S.R.L., an Italian company with
headquarters in Cappelletta di Noale (Venezia), via Giovanna D'Arco 36
(hereinafter referred to as "ES") for the design, supply, installation,
start-up, operation, management, and maintenance of the PLANT; and

 

WHEREAS, ES
signed a contract with European Waste Solution, Ltd., a company founded and
operated in accordance with the laws of the State of Delaware (U.S.A.)
(hereinafter referred to as "EWS") for the design, start-up, and installation of
the PLANT, as well as the supply of guidelines, user manuals, lists of
replacement parts with prices, and materials necessary for the foreseeable
maintenance of the PLANT; and

 

WHEREAS, EWS
signed a contract with L&R Energy Company, LLC, a limited liability company
founded and operated in accordance with the laws of the State of New York
(U.S.A.) (hereinafter referred to as "L&R") for the supply and start-up of
the gasification system for the PLANT; and

 

WHEREAS, L&R
signed a contract with NATHANIEL for the design, supply and start-up of the
gasification system for the PLANT (hereinafter referred to as the "Gasifier
Agreement"), regarding two model 1800 HP Thermal Combustors; and

 

WHEREAS, the
aforementioned PARTIES and NATHANIEL stipulated an agreement dated July 16, 2004
(hereinafter referred to as the "Agreement"), which has in turn been amended,
which partially modified the agreements detailed in the WHEREAS sections above;
and

 

WHEREAS, as set
forth in the Agreement, the PARTIES and NATHANIEL agreed that the sum of U.S. $3
million owed by L&R to NATHANIEL pursuant to the Gasifier Agreement was to
be paid directly by ECOIDEA in the form of assignments of credits as detailed in
the Agreement; and

 

WHEREAS, the
PARTIES and NATHANIEL subsequently amended the Agreement on August 25, 2004,
moving the milestone date for completing and testing the PLANT from September
30, 2004 to October 30, 2004. In addition, the Parties agreed to disburse fifty
percent (50%) of the payments due under the aforementioned agreements to the
respective PARTIES and NATHANIEL, provided one of the GASIFIERS worked for four
consecutive days; and

 

WHEREAS,
NATHANIEL and the PARTIES wish to complete the start-up and acceptance testing
of the GASIFIERS without further delay;

 

NOW
THEREFORE, the
PARTIES and NATHANIEL hereby agree as follows:

 

Article
1

Payments
to NATHANIEL

 

1.1
Amendments to the contract price of the Gasifier Agreement: The
contract price that ECOIDEA, pursuant to the credit assignments set forth in the
Agreement, will pay to NATHANIEL on behalf of L&R as payment of the contract
price specified in the Gasifier Agreement shall be calculated as follows: U.S.
$3 million, equal to the previously stipulated contract price, minus U.S.
$900,000, equal to the expenses incurred by ECOIDEA for making changes and
developments to the GASIFIERS. This sum will be deducted from the sum owed to
NATHANIEL, which will therefore total U.S. $2.1 million.

 

1.2
Terms of payment of contract price pursuant to Gasifier
Agreement: The
contract price as stipulated in the Gasifier Agreement, as detailed in Section
1.1 above, will be paid as follows.

 

(a) At
the signing of this contract, ECOIDEA, on behalf of L&R and as partial
payment of the credit assignments detailed in the Agreement, will pay NATHANIEL
U.S. $300,000 as a first installment of the contract price set forth in the
Gasifier Agreement. This payment will occur by means of a wire transfer made to
the account number specified by NATHANIEL.

 

(b)
Within three days of the date of a positive outcome of the acceptance test of
the first GASIFIER (identified by the PARTIES and NATHANIEL as Unit No. 2), as
detailed in Article 3 below, ECOIDEA, on behalf of L&R, will pay NATHANIEL,
by means of the credit assignments set forth in the Agreement, the sum of U.S.
$750,000, through a wire transfer to the account number specified by NATHANIEL,
as a second installment of the contract price as detailed in Section 1.l
above.

 

(c)
Within three days of the date of a positive outcome of the acceptance test of
the second GASIFIER (identified by the PARTIES and NATHANIEL as Unit No. 1), as
detailed in Article 3 below, ECOIDEA, on behalf of L&R, will pay NATHANIEL,
by means of the credit assignments set forth in the Agreement, the balance of
U.S. $1,050,000, through a wire transfer to the account number specified by
NATHANIEL, as fulfillment of the contract price as detailed in Section 1.1
above.

 

 

2

 

 

1.3
Reimbursement for shipping costs and expenses related to changes: On the
day of a positive outcome of the acceptance test of Unit No. 1, as detailed in
Article 3 below, ECOIDEA, on behalf of L&R, will pay NATHANIEL the sum of
U.S. $274,643.02, through a wire transfer to an account number specified by
NATHANIEL, as reimbursement for shipping, internal transport and packaging
costs, and to cover Purchase Order Changes. ECOIDEA and L&R hereby confirm
that they have received and examined the documentation which was requested to
justify such costs and have deemed it satisfactory. L&R commits to
reimbursing ECOIDEA the sum of U.S. $274,643.02, as indicated above, by
deducting this amount from the amount that is owed by ECOIDEA to L&R in
consideration for the credit assignments as detailed in the
Agreement.

 

1.4
Reimbursement of costs related to completion and start-up
assistance: ES and
EWS jointly shall pay NATHANIEL the sum of U.S. $40,000, in the amount of U.S.
$20,000 each, fourteen days after signing the present contract, and an
additional U.S. $40,000, in the amount of U.S $20,000 each, thirty days after
signing the present contract. All payments detailed in this Section 1.4 shall be
made to an account number specified by NATHANIEL.

 

The
PARTIES, in good faith, commit to reaching an agreement with each other and with
NATHANIEL regarding the sharing of any reasonable expense that NATHANIEL might
incur with regard to any personnel it might need to send on-site to the PLANT
and the maintenance costs of additional personnel necessary to provide the
technical assistance for a final start-up of the GAS1FIERS. In such a case,
ECOIDEA will pay to NATHANIEL the amounts detailed in the previous paragraph,
upon the provision by NATHANIEL of supporting documentation, and will be
entitled to reimbursement by the other PARTIES based on proportions and
modalities to be agreed upon.

 

Article
2

Contract
prices agreed upon between the PARTIES

 

2.1
Amendments to the contract prices agreed upon in the covenants between the
PARTIES: With
the exception of what is detailed in Section 1.1 with regard to the contract
price of the Gasifier Agreement, in consideration of the costs incurred by
ECOIDEA for the changes and developments made to the GASIFIERS with the help of
a highly competent and professional company specialized in the heat regeneration
field, the PARTIES agree that ECOIDEA has the right to be reimbursed for such
costs, in the amount of U.S. $900,000.00.

 

The
contract price agreed upon between ECOIDEA and ES, recalled in the recitals of
this contract, must therefore be revisited by deducting the sum of U.S.
$900,000.00. The same provision is applicable to the contract prices set forth
in the covenants between ES and EWS, and EWS and L&R, recalled in the
recitals of this contract.

 

Furthermore,
in consideration for the sum that ECOIDEA will anticipate on behalf of L&R
for the costs indicated in Section 1.3, the contract prices set forth in the
covenants between ECOIDEA and ES, between ES and EWS, and between EWS and
L&R, need to be reduced as follows: by the sum of U.S. $650,000.00 regarding
the covenant between ES and EWS, and by the sum of U.S. $250,000.00 regarding
the covenant between EWS and L&R.

 

3

 

 

 

2.2
Terms of payment of contract prices as set forth in the covenants between the
PARTIES: The
contract price specified in the covenants between the PARTIES, referred to in
the recitals of this contract, will be paid in accordance with the terms and
conditions stipulated between the PARTIES as set forth in each covenant between
the interested parties.

 

Article
3

NATHANIEL's
OBLIGATIONS

 

3.1
Completion of the start-up of the two GASIFIER units:
NATHANIEL commits to completing the start-up of the two GASIFIERS, which need to
conform to the requisites, the gasification capacity and all other
specifications detailed in this contract stipulated between the PARTIES and
NATHANIEL, in accordance with the terms set forth in this contract and in this
Article 3. Unit No.2 must be completed and tested on or before January 31, 2005;
Unit No. 1 must be completed and tested on or before February 28, 2005. These
completion dates, however, can be amended if: i) any one of the PARTIES does not
comply or has not complied with its obligations and/or responsibilities, and
these were a requirement for NATHAN1EL to be able to fulfill its contract
responsibilities in terms of completing the start-up of the two Thermal
CombustorsTM; or ii) if the conditions set forth in Section 7.2 are not
met.

 

3.2
Gasifier performance and acceptance testing: The
payment to NATHANIEL of the sums detailed in sections 1.2, paragraph (b); 1.2,
paragraph (c); and 1.3 shall take place only following a successful gasification
of Italian WDF, which is defined in the following paragraphs of this section.
Gasification shall be measured on twelve (12) hour intervals (every 24-hour
day), for four (4) consecutive days to demonstrate successful gasification
pursuant to the terms set forth and defined below. Each day NATHANIEL will
communicate the beginning of the 12-hour gasification period to the
PARTIES.

 

Gasification
is defined as follows:

	
      a)
	
      The
      gasification phase of the Thermal Combustor takes place in the
      gasification chamber, where high temperatures ignite the fuel in an
      atmosphere which contains little oxygen, thus producing an exhaust gas
      composed of carbon monoxide (CO), carbon dioxide (CO2),
      hydrogen (H), methane, traces of higher hydrocarbons, water, nitrogen, and
      small quantities of different pollutants.

	
      b)
	
      The
      combustion of a solid hydrocarbon-based fuel in the Thermal Combustor is
      demonstrated by the rise in temperature from the gasification zone
      (gasification chamber, oxidation chamber, and transition chamber) to the
      fire tube when air is added to the latter.

 

4

 

3.3
Energy Output guarantees

 

Notwithstanding
the obligations and warranties set forth for each PARTY in the covenants
referred to in the recitals of this agreement with regard to the PLANT’s energy
output capacity, NATHANIEL guarantees that the Thermal Combustors will be
capable of the following energy output:

 

-
sufficient heat to produce 19,240 kg/hr at 40 bar and 380°C steam measured at
the orifice plate of the boiler exit of each line based on fuel specifications,
that must be equal or greater than the specifications contained in Attachment B
to this contract.

 

3.4
Tolerance

The
PARTIES and NATHANIEL agree to deem a steam production up to 5% lower with
regard to that indicated in Section 3.3 as acceptable and within the tolerance
limits for these plants. Therefore, the PARTIES agree, each in its own area of
responsibility, that if the total value of steam produced is less than 5% lower
with respect to the values guaranteed by NATHANIEL, the contractual obligations
set forth in Section 3.3 shall be considered fulfilled, and there will be no
reduction in the contract price as detailed in Article 1 of this
contract.

 

3.5
Price reduction

In the
event the thermal power and the steam produced are 5-10% lower than the value
specified in paragraph 3.3 when measured during the acceptance test, or 10-15%
lower than the value indicated in paragraph 3.3 when measured monthly during
PLANT operation, the PARTIES agree that the contractual obligations set forth in
Section 3.3 shall be considered fulfilled. However, the amount owed to NATHANIEL
in accordance to the terms set forth in Section 1.1 of this contract will
decrease by U.S. $11,000.00 (eleven thousand dollars) for each tenth of a
percentage point of lesser steam output, up to a maximum of U.S. $649,000.00
(six hundred and forty nine thousand dollars), deductible from NATHANIEL's
contract price, where the balance is to be deducted from the PARTIES' contract
prices in accordance with their responsibility, as set forth in the preceding
paragraphs. If the percentage includes between 0 and 4 hundredths of a
percentage point, the amount will be rounded down to the next tenth of a
percentage point; if the percentage includes between 5 and 9 hundredths of a
percentage point, the amount will be rounded up to the next tenth of a
percentage point (for example, a production which is 5.74 percentage points
lower than the estimated one will be rounded down to 5.7% or 57 tenths of a
percentage point, while production which is 5.75% lower than the estimated one
will be rounded up to 5.8% or 58 tenths of a percentage point).

 

If the
lower steam output is measured during testing, and falls within the ranges
indicated in this Section 3.5, the amount deducted from the sum owed to
NATHAN1EL, calculated based on the indications of the above section, will be
deducted from the partial payments of the contract price indicated in Section
1.2, paragraphs (b) and (c).

 

If the
lower steam output is measured during plant operation, the warranties and
responsibilities of the PARTY who is responsible for the lower output wilt be
applied, and that PARTY shall reimburse ECOIDEA in accordance with the terms set
forth in the preceding sections.

 

5

 

 

 

3.6
Insufficient Energy, Output

 

If the
steam output is lower than the guaranteed capacity by more than 10%, in
accordance with the terms set forth in Section 3.3, the PARTIES can ask
NATHANIEL to deliver the guaranteed steam output, in accordance with the terms
of Section 3.3, within the tolerance range indicated in sections 3.4 and 3.5,
within 60 days of the date of mailing of a notice that shall be delivered to
NATHAN1EL in written form, by certified mail, with a return
receipt.

 

If steam
output is more than 15% lower than the guaranteed Output, in accordance with the
terms set forth in Section 3.3, and in the event the reduced output continues
for more than 60 days after receipt of the aforementioned warning to NATHANIEL
sent by certified mail with a return receipt, the PARTIES will have the right to
resolve the contract based on Article 1456 of the Italian Civil Code. In this
case, NATHAN1EL shall remove the GASIFIERS and all proprietary related devices
and assets from the PLANT (within a reasonable time-frame, assuming all
necessary costs, and assuming full responsibility), and shall remove them from
ECOIDEA's property. NATHANIEL shall also return to ECOIDEA all amounts received
based on terms set forth in Article 1, with the exception of items 1.3 and 1.4,
within seven days from the deadline specified in the preceding section,
notwithstanding the damage compensation owed to each PARTY as set forth in the
covenants recalled in the recitals of this document.

 

3.7
User Manuals: Once
the PLANT is completed and once NATHANIEL has been paid all it is owed based on
the terms set forth in sections 1.2, 1.3 and 1.4, NATHAN1EL will supply ECOIDEA
with the User and Maintenance Manuals, which must contain a list of recommended
replacement parts.

 

3.8
Security:
NATHANIEL will continue to supply advice related to safety aspects and help the
PARTIES set up operation and maintenance procedures until PLANT
completion.

 

Article
4

Changes
to Gasifiers

 

4.1
NATHANIEL's approval for changes and delivery: By
undersigning this contract, NATHANIEL certifies that they have verified all
operations related to improvement, structure, mechanical aspects and parts
replacement of the PLANT, including the changes made to the hardware and
software management system, as well as all tasks related to the completion and
start-up of the GAS1FIERS carried out to this date by the PARTIES and by highly
professional and competent third parties hired by the PARTIES.

 

NATHANIEL
specifically declares, and the .PARTIES accept, that all tasks specified in the
previous paragraph, carried out between October 14, 2004 and January 4, 2005,
and which are detailed in Attachment A to this contract, have been carried out
correctly and in full compliance with the GASIFIER project, and accepts and
approves all work carried out by the PARTIES or by others hired by the PARTIES
between October 14, 2004 and January 4, 2005 for the completion and start-up of
the GASIFIERS. Furthermore, NATHANIEL shall fulfill its obligations
with

 

6

 

 

regard to
the operation and start-up of the GAS1FIERS in accordance with the terms set
forth in this contract, notwithstanding the terms specified in Section 3.1,
without requesting any additional payment and/or reimbursement and/or claim
and/or compensation other than those indicated in Article 1.

 

In
consideration for all of the above, NATHANIEL waives all contestations, demands,
and/or claims with respect to the PARTIES and, in accordance with Article 1411
of the Italian Civil Code, with respect to any third party hired by the PARTIES
to carry out the tasks detailed in the previous sections between October 14,
2004 and January 4, 2005, and declares it wilt not ask the PARTIES, nor, in
accordance with Article 1411 of the Italian Civil Code, any third party hired by
the PARTIES to carry out the tasks detailed in the preceding paragraphs, for any
reimbursement, claim, compensation, and/or any other kind of demand arising from
the tasks described in Attachment A.

 

If
NATHANIEL does not receive all payments as detailed in sections 1.2, 1.3 and
1.4, in accordance with the terms and conditions set forth in such sections, or
if one of the PARTIES does not allow NATHANIEL to execute its rights based on
any article of this contract, or if one of the PARTIES is responsible for not
allowing NATHANIEL to act in accordance with this contract, the Gasifier
Agreement, or the Agreement or any other covenant and amendment stipulated
between NATHANIEL and all of the PARTIES, NATHANIEL will maintain all rights and
remedies and will be entitled to ask the PARTIES for compensation or
reimbursement, and/or to make any other claim or demand that may arise from the
activities carried out between October 14, 2004 and January 4, 2005. The
defaulting PARTIES shall have the right to recoup on the PARTY that determined
NATHANIEL's action as specified previously.

 

4.2
Ownership of changes: The
PARTIES hereby agree that any intellectual property and know-how, any change or
update to any part of the GASIFIERS hardware, software, HMIs [human-machine
interfaces], configuration and documentation (hereinafter referred to as
"Nathaniel Intellectual Property") will continue to belong to NATHANIEL, if it
does already, or will be transferred to NATHANIEL if it belongs to a third
party, and is held by the PARTIES, with the exception of any third-party rights.
Once NATHANIEL has been paid the amounts detailed in sections 1.2, 1.3 and 1.4,
NATHAN1EL commits to granting ECOIDEA a lifetime royalty-free, non-transferable,
and non-assignable free license for the use and maintenance of Nathaniel
Intellectual Property, to be used exclusively on-site and for the plant situated
in Cologna Veneta, Italy.

 

Article
5

Access
to PLANT and related data

 

5.1
Access to PLANT for demonstration purposes: Once
the PLANT has been completed, and with prior reasonable forewarning from
NATHANIEL, the PARTIES will allow NATHANIEL personnel, guests, clients, and
invitees to access the PLANT in order to observe the GASIFIERS for NATHANIEL's
marketing and research purposes.

 

7

 

 

 

The
access of those persons indicated in the previous section shall occur at times
and in a fashion that shall not cause any inconvenience to ECOIDEA and their
activities, and without violation in any form whatsoever of the interests of
ECOIDEA or any third party.

 

With a
prior reasonable forewarning from NATHANIEL, the PARTIES shall also allow
NATHANIEL personnel or agents to film or photograph NATHANIEL Gasifiers for
NATHANIEL's marketing and research purposes, in accordance with the terms
indicated above. Finally, the PARTIES shall cooperate with NATHANIEL with regard
to any type of material, report or research article that NATHANIEL produces on
the Gasifiers installed in the PLANT, if and when NATHANIEL requests it. ECOIDEA
understands that NATHANIEL intends to leverage the PLANT's success for business
and marketing purposes.

 

5.2
Access to data: Once
the PLANT has been completed, ECOIDEA shall supply, upon NATHANIEL's request,
the data obtained from the DCS device, the fuel samples and any other
information which the parties agree upon on a per request basis. IfNATHAN1EL
were to request data or samples which have not been gathered by ECOIDEA,
NATHANIEL must be allowed to gather such data at their own expense,
notwithstanding the rights and interests of ECO]DEA or any third
party.

 

Article
6

Privacy,
and trade secret protection

 

6.1
Recognition of NATHANIEL's proprietary rights: The
PARTIES confirm and acknowledge that the patents related to the Gasifiers, the
software and the programming requested to operate them, the projects and the
models used along with the Gasifiers and all other NATHANIEL Intellectual
Property are trade secrets of which NATHANIEL is the owner. Similarly, NATHANIEL
recognizes and confirms that the other PARTIES possess information and
intellectual property that is owned by them and that is confidential in
nature.

 

6.2
Non-disclosure of trade secrets: The
PARTIES shall use all precautions reasonably necessary to keep, protect, and
maintain the confidential nature of the information disclosed by NATHANIEL. The
PARTIES agree such confidential information belongs to NATHAN1EL and is not in
the public domain; they agree not to disclose such information and shall
exercise all necessary reasonable care to prevent the disclosure of confidential
information to any person, company or entity not already possessing such
knowledge. In accordance with this contract, the non-disclosure clause for the
PARTIES shall remain valid until all confidential information is known in the
field or falls into the public domain through no wrongful act of the PARTIES.
Notwithstanding the foregoing, the PARTIES have a right to disclose confidential
information as required by law or court order, or as ordered by a judicial or
administrative agency of competent jurisdiction.

 

6.3
Non-disclosure of confidential information by NATHANIEL:
NATHANIEL shall exercise all necessary reasonable care to keep, maintain, and
protect any confidential information

 

 

8

 

disclosed
by the PARTIES that belongs to the PARTIES and is not in the public domain, and
warrants not to disclose such confidential information to any person, company,
or entity not already possessing such information. In accordance with this
contract, the non-disclosure clause for NATHAN1EL shall remain valid until all
confidential information is known in the field or falls into the public domain
through no wrongful act by NATHAN1EL. Notwithstanding the foregoing, NATHANIEL
has a right to disclose confidential information as required by law or court
order, or as ordered by a judicial or administrative agency of competent
jurisdiction.

 

Article7

Fuel

 

7.1
Fuel specifications: The
PARTIES acknowledge that the Gasifiers need a constant and reliable supply of
densified fuel with a minimum PCI value and which overall matches the
specifications detailed in Attachment B. In the event fluff is used, i.e. refuse
derived fuel with a density index below 350 kg/m3 which is not compact enough to
maintain a compressed pellet form, ECOIDEA shall accept reduced functionality
and output, and NATHANIEL shall not be liable for any fine as specified in
sections 3.5 and 3.6 of this document. If using fluff, the requirements for
energy output of the Thermal Combustors set forth in sections 3.3, 3.4., 3.5 and
3.6 shall not be valid, and NATHANIEL shall have a right to any outstanding
amount of the contract price, as specified in Article 1, that has not been paid
to date as specified in Article 1, as long as performance is completed as
described in Section 3.2.

 

7.2
WDF specifications:
NATHANIEL's obligation to fulfill the conditions set forth in sections 3.2 and
3.3 is explicitly dependant on a party other than NATHANIEL supplying the PLANT
with WDF that meets the fuel specifications indicated in "WDF (Waste-Derived
Fuel) Specifications for Gas Combustors" attached to this contract under
Attachment B.

 

7.3
WDF Sampling and testing: In
order to verify that the WDF supplied to the PLANT site for performance and
acceptance testing of the Gasifiers meets the WDF Specifications, ECO1DEA shall
allow NATHANIEL to obtain samples and test both densified and non-densified WDF
in highly competent laboratories chosen jointly by the PARTIES and NATHANIEL.
NATHANIEL shall be responsible for, and in charge of, the transport (if allowed
by the Italian competent authorities), the analysis, mid the testing, which
shall be carried out before the final test date.

 

7.4
NATHANIEL's right to renounce sampling and testing:
NATHANIEL personnel shall inspect the WDF delivered to the PLANT and the
densified WDF to be used during performance and acceptance testing of the
Gasifiers. In the event a visual inspection finds the WDF compliant to the WDF
Specifications, NATHANIEL can advise ECOIDEA that it renounces the right to
verify that the sampling and testing requirements specified in Section 7.3 have
been met. This waiver, however, does not imply a waiver of the condition that
the WDF must meet the WDF Specifications. If, following NATHANIEL's
communication to ECO1DEA that it chooses not to verify that the sampling and
testing requirements specified in Section 7.3 have been met, the quality of
subsequent deliveries of WDF appears not to meet the WDF
Specifications,

 

9

 

NATHANIEL
can advise ECOIDEA that it intends to restore the verification of the sampling
and testing requirements set forth in Section 7.3.

 

Article
8

Miscellaneous
Provisions

 

8.1
Communications: Any
communication or notice requested or permitted by the present contract shall be
considered adequate if supplied in written form and delivered personally or by
certified mail with a return receipt, addressed to the addresses specified
below, or any others that the Parties to this contract indicate via a
notification that meets the requirements set herein:

 

	
      TO
      NATHANIEL:
	
      TO
      ECOIDEA:

       

	
      Nathaniel
      Energy Corporation

      c/o
      George Cretecos, COO

      8001
      South InterPort Boulevard, Suite 260 Englewood, Colorado
80112

      Tel:
      1-303-470-6075

      Fax:
      1-303-470-6079

      e-mail:
      gcretecos@nathanielenergy.com
	
      ECOIDEA
      S.R.L.

      Via
      S. Michele, 41

      37044
      Cologna Veneta (Verona) 

      Italy

      Tel:
      39 045 88 76 200

      Fax:
      39 0442 411371

      e-mail:
      aupiz@tin.it

       

	
      TO:
      ELECTRONIC SOLAR S.R.L.:
	
      TO:
      EUROPEAN WASTE SOLUTION, LTD.:

       

	
      ELECTRONIC
      SOLAR S.R.L.

      Via
      S.G. d'Arco, 36

      30033
      Cappelletta di Noale

      Venezia,
      Italy

      Tel:
      39 041 5800444

      Fax:
      39 041 5800960

      e-mail:
      antonello@electroniesolar.com
	
      EUROPEAN
      WASTE SOLUTION, LTD. 

      Via
      Fusinieri, 62

      36100
      Vicenza

      Italy

      Tel:
      39 044 4300438

      Fax:
      39 044 4300438

      e-mail:
      ews@keycomm.it

       

	
      TO:
      L&R ENERGY COMPANY, LLC:

       
	 
	
      L&R
      ENERGY COMPANY, LLC 

      8821
      S. Blue Mountain Place

      Highlands
      Ranch, CO 80126

      Tel:
      1-303-470-6075

      Fax:
      1-303-470-6079

      e-mail:
      landrenergy.comcast.net

       
	 

8.2
Recitals and attachments: The
recitals and attachments of this document represent an integral and substantive
part of the document.

 

10

 

 

8.3
Nature and effects of this contract: This
contract incorporates and modifies, as applicable to each of the undersigned
parties, the covenants detailed in the recitals, the Agreement, and its
subsequent amendment of August 25 2004, which remain valid and unchanged in all
aspects other than those specified, modified, or eliminated by the present
contract. The PARTIES hereby explicitly declare that the nature and effects of
the present contract are not those of a transaction, except for the aspects for
which such aims and effects have been explicitly agreed upon, and it shall not
affect any existing challenges initiated by any of the undersigned parties, and
has the wider scope of acting in the competent sites to safeguard the parties'
rights and interests.

 

8.4.
Applicable Law: This
Agreement shall be governed by, and construed and enforced in accordance with,
Italian law.

 

8.5.
Jurisdiction: Any
dispute regarding the validity, effectiveness, interpretation, execution,
non-performance, or resolution of the present contract shall be resolved solely
through the jurisdiction of the Italian Jurisdictional Authorities.

 

8.6.
Contractual document: The
present contract, drawn up in five originals, one for each of the undersigned
parties, consists of 11 (eleven) pages, 8 (eight) articles, including the
present one, and 2 (two) attachments, indicated by letters A) and B), and is
initialed, as are the attachments, in the margins by the undersigned parties,
and signed below.

 

Each
original copy of the present contract contains the Italian version of the text
and its English translation. In the event of any inconsistency or difference,
the parties agree that the original Italian text will prevail.

 

	
      NATHANIEL
      ENERGY CORPORATION

       

      /s/
      George A. Cretecos  

      By:
      George A. Cretecos
	
      ECOIDEA,
      S.R.L.

       

      /s/
      Augusto Pizzolo   

      By:
      Augusto Pizzolo

       

	
      ELECTRONIC
      SOLAR S.R.L.

      LTD.

       

      /s/
      Antonello Giovanni  

      By:
      Antonello Giovanni

       
	
      EUROPEAN
      WASTE SOLUTION,

       

       

      /s/
      Gianfranco Licursi   

      By:
      Gianfranco Licursi

	
      L&R
      ENERGY COMPANY, LLC

       

      /s/
      Larry L. Robinson   

      By:
      Larry L. Robinson
	 

11SUBLEASE
                                    --------

     THIS SUBLEASE (this "Sublease") is made and entered into as of the 31st day
of  March,  2005,  by  and  between  GATEWAY,  INC.,   a   Delaware  corporation
(hereinafter  called  "Sublandlord"), and SPACEDEV, INC., a Colorado corporation
(hereinafter  called  "Subtenant");

                              W I T N E S S E T H:
                              -------------------

     WHEREAS,  by  that  certain  Lease with reference date of May 14, 2001 (the
"Prime  Lease"),  a  copy of which Prime Lease is attached hereto as Exhibit "A"
and  by  this  reference  made a part hereof, Harsch Investment Properties, LLC,
successor  to  SDC Lincoln Business Center, Inc. (hereinafter, together with its
succes-sors  and  assigns,  called  "Landlord"),  leased  to Sublandlord certain
premises  containing approximately 11,069 gross rentable square feet referred to
as Suite 400 (the "Premises") in the building located at 12245 Kirkham Road (the
"Building") in Poway, all as more specifically set forth in the Prime Lease; and

     WHEREAS,  Subtenant  desires  to sublease from Sublandlord, and Sublandlord
desires  to  sublease  to Subtenant, the entire Premises, all upon the terms and
subject  to  the  conditions  and  provisions  hereinafter  set  forth.

     NOW,  THEREFORE,  in  consideration  of  the  foregoing  and  of the mutual
cove-nants  and  promises  contained  herein  and  other   good   and   valuable
consideration,  the  receipt  and  sufficiency  of  which  are  hereby  mutually
acknowledged,  Sublandlord  and  Subten-ant  hereby  agree  as  follows:

     1.     DEMISE;  USE.  Sublandlord  hereby leases to Subtenant and Subtenant
hereby leases from Sublandlord the Sublease Premises for the term and rental and
upon  the  other  terms  and  conditions  hereinafter  set forth, to be used and
occupied  by  Subtenant  solely  for  the  purpose  of  general office, storage,
shipping  and receiving, warehouse use and related ancillary uses  all as may be
permitted  under and subject to the Prime Lease and otherwise in compliance with
applicable  zoning  rules,  regulations  and  ordinances  and   all   covenants,
conditions  and  restrictions  of  record  and  for  no  other  use  or purpose.

     2.     TERM.  The  term  of this Sublease shall commence (the "Commencement
            ----
Date")  on  the later to occur or (i) the date upon which this Sublease is fully
executed  and  the Landlord has delivered its consent hereto, and (ii) April, 1,
2005,  unless  sooner  termi-nated  pursuant  to  the  provisions  hereof, shall
terminate on the earlier of (x) August 31, 2006 and (y) the prior termination of
the Term of the Prime Lease.  As used herein, the phrase "Lease Year" shall mean
the  twelve  calendar  month  period  commencing  on  the  Commencement Date (as
hereinafter  defined)  (or,  if  the Commencement Date is not the first day of a
calendar  month,  then  commencing on the first day of the calendar month during
which  the  Commencement  Date occurs) and each anniversary thereof, except that
the last Lease Year may not be twelve calendar months and shall terminate on the
last  day  of  the  term  of  this  Sublease.  Sublandlord  and Subtenant hereby
acknowledge  and  agree  that  in  no  event  shall  this  Sublease be deemed an
assignment  of  the  Prime Lease, notwithstanding that the term of this Sublease
extends  to  the  expiration  of  the  term  of  the  Prime  Lease.

Kirkham  Road  Sublease.doc          -  1  -
                                      PAGE

     3.     BASE  RENT.
            ----------

     (a)     Commencing  upon  the  Commencement  Date,  Subtenant  shall pay to
Sublandlord  base  annual  rental  (hereinafter  called  "Base  Rent")  for  the
Premises  as  follows:

<TABLE>
<CAPTION>

<S>                <C>                 <C>                     <C>

                   ANNUAL BASE RENT    ANNUAL BASE RENT
                   RATE PER RENTABLE   (BASED ON 11,069        MONTHLY
TIME PERIOD . . .  SQUARE FOOT         RENTABLE SQUARE FEET)   INSTALLMENTS
-----------------  ------------------  ----------------------  -------------
First Lease Year.  $             7.20  $            79,696.80  $    6,641.40
-----------------  ------------------  ----------------------  -------------
Second Lease Year  $             7.42  $          82,131.98**  $    6,844.33
-----------------  ------------------  ----------------------  -------------
</TABLE>

**The  parties  acknowledge  and  agree that the second Lease Year is not a full
calendar  year  and that Annual Base Rent for the second Lease Year has been set
forth  for  illustrative  purposes  only.

Each such installment shall be due and payable in advance on the fifth day prior
to the first day of each calendar month of the term hereof.  If the term of this
Sublease  commenc-es  on  a day other than the first day of a month or ends on a
day  other  than  the  last  day  of  a month, Base Rent for such month shall be
prorated; prorated Base Rent for any such partial first month of the term hereof
shall be paid on the date on which the term commences.  Notwithstanding anything
in  this  Sublease to the contrary, Subtenant shall pay to Sublandlord the first
monthly  installment of Base Rent due under this Sublease upon the execution and
delivery  of  this  Sublease  by  Subtenant  to  Sublandlord.

     (a)     All  Base  Rent and additional rent shall be paid without setoff or
deduction  whatsoever and shall be paid to Sublandlord at the following address:
Real  Estate  Administration,  Gateway, Inc., 610 Gateway Drive Y91, North Sioux
City, South Dakota 97049  or at such other place as Sublandlord may designate by
notice  to  Subtenant.

     4.     ADDITIONAL  RENT;  PAYMENTS;  INTEREST.

     a)     Except  for  "Annual Rent" (as such term is defined Section 3 of the
Prime  Lease  and  for  the  payment of which Subtenant shall have no obligation
under  this Sublease), Subtenant shall also pay to Sublandlord all other amounts
payable  by  Sublandlord  under  the  Prime Lease which are attribut-able to the
Sublease  Premises  or  attributable  to  Subtenant,  its   agents,   employees,
customers  or  invitees,  including,  without  limitation, the payment of Direct
Expenses  and  Taxes  ,  as  set  forth  in  Section  4  of the Prime Lease, and
utilities, as set forth in Section 13 of the Prime Lease.  By way of example and
not  by way of limitation, charges by Landlord for costs incurred by Landlord in
repairing  damage  to the Building caused by an employee of Subtenant, increased
insurance  premiums due as a result of Subtenant's use of the Sublease Premises,
and  amounts  expended  or  incurred  by  Landlord  on account of any default by
Subtenant  which  gives rise to a default under the Prime Lease would be amounts
payable  by  Subtenant  pursuant  to  this  Subsection  4(a).

Kirkham  Road  Sublease.doc          -  2  -
                                      PAGE

     (b)     Each amount due to pursuant to Subsection 4(a) above and each other
amount  payable by Subtenant hereunder, unless a date for payment of such amount
is  provided  for  elsewhere  in  this Sublease, shall be due and payable on the
fifth  day  following the date on which Landlord or Sublandlord has given notice
to Subtenant of the amount thereof, but in no event later than the date on which
any  such  amount  is  due  and  payable  under  the  Prime  Lease.

     (c)     All  amounts other than Base Rent payable to Sublandlord under this
Sublease  shall  be  deemed  to be additional rent due under this Sublease.  All
past  due installments of Base Rent and additional rent shall bear interest from
the  date  due  until  paid  at the rate per annum equal to five percent (5%) in
excess  of  the Prime Rate (as hereinafter defined) in effect from time to time,
which  rate  shall  change  from  time  to time as of the effective date of each
change  in  the  Prime Rate, unless a lesser rate shall then be the maximum rate
permissible  by  law with respect thereto, in which event said lesser rate shall
be charged.  For the purposes of this Sublease, the term "Prime Rate" shall mean
the  rate  of  interest  announced from time to time by Bank One as its prime or
corporate  base  rate.

     (d)     Subtenant  shall  pay  Landlord  on  the  due  dates  for  services
requested by Subtenant which are billed by Landlord directly to Subtenant rather
than  Sublandlord.

     5.  CONDITION  OF  SUBLEASE  PREMISES  AND  CONSTRUCTION  OF  IMPROVEMENTS.

Subtenant  hereby  acknowledges  and  agrees  that  it is to demise the Sublease
Premises  in  an  "as-is"  condition  and  Subtenant's  taking possession of the
Sublease  Premises  shall  be  conclusive evidence as against Subtenant that the
Sublease  Premises were in good order and satisfac-tory condition when Subtenant
took  possession.  No  promise  of  Sublandlord to alter, remodel or improve the
Sublease  Premises,  and  no  representation  respecting  the  condi-tion of the
Sublease  Premises  have  been  made  by  Sublandlord to Subtenant except to the
extent  expressly  set  forth in this Sublease.  Upon the expiration of the term
hereof,  or  upon  any  earlier termination of the term hereof or of Subtenant's
right to possession, Subtenant shall surrender the Sublease Premises in at least
as  good condition as at the commencement of the term of this Sublease, ordinary
wear  and  tear  excepted.

     6.     THE  PRIME  LEASE.

     (a)     This  Sublease  and  all  rights  of  Subtenant  hereunder and with
respect  to  the  Sublease  Premises  are  subject  to the terms, conditions and
provisions  of  the Prime Lease.  Subtenant hereby assumes and agrees to perform
faithfully  and  be  bound  by,  with  respect  to the Sublease Premises, all of
Sublandlord's  obligations,  cove-nants,  agreements  and  liabilities under the
Prime  Lease  and all terms, condi-tions, provisions and re-strictions contained
in  the  Prime  Lease  except:

               (i)  for  the  payment  of  "Rental"  (as such term is defined in
                    paragraph  2  of  the  Prime  Lease);

Kirkham  Road  Sublease.doc          -  3  -
                                      PAGE

               (ii) that Subtenant shall not have any obliga-tions to con-struct
                    or  install  tenant  improvements  except as may be provided
                    herein;  and

               (iii)  that  the  following  provisions of the Prime Lease do not
                    apply  to  this  Sublease: any provisions in the Prime Lease
                    allowing  or  purporting  to  allow  Subland-lord  any  rent
                    conces-sions  or abatements or construc-tion allowances, any
                    provisions  allowing Sublandlord to extend or renew the term
                    of  the  Prime  Lease,  any  provisions  of  the Prime Lease
                    granting any option to purchase or lease the Building or any
                    other  space  in  the  Project.

     (b)     Without  limitation  of  the  foregoing:

               (i)  Subtenant  shall  not  make  any  changes,  alterations   or
                    additions in or to the Sublease Premises except as otherwise
                    expressly  provided  herein  on  Exhibit  B.  In  connection
                    therewith,  Sublandlord  and Subtenant acknowledge and agree
                    that  Subtenant  desires  to   make   certain   alterations,
                    additions  and/or improvements to the Premises following its
                    occupancy thereof. In connection with such work (hereinafter
                    referred  to  as  the  "Subtenant Work"), such work shall be
                    performed  at  the  sole  cost  and expense of Subtenant and
                    shall  strictly  conform  to all the terms and provisions of
                    the Prime Lease. Subtenant shall obtain the approval of both
                    the  Landlord  and  Sublandlord  with respect to any and all
                    aspects  of  the  Subtenant  Work  prior to commencing same.
                    Subtenant  shall  not  be  required  to  remove or otherwise
                    reverse  any changes, alterations or additions at the end of
                    the  Sublease,  provided  Landlord  and   Sublandlord   have
                    approved  the  changes,  alterations  or additions as stated
                    above, and all changes, alterations or additions will become
                    the  property  of  Landlord or Sublandlord at the end of the
                    Sublease  unless  further  arrangements  are  made   between
                    Subtenant  and Landlord to continue Subtenant's occupancy of
                    the  Premises.

Kirkham  Road  Sublease.doc          -  4  -
                                      PAGE

               (ii) If  Subtenant desires to take any other action and the Prime
                    Lease  would  require that Sublandlord obtain the consent of
                    Landlord  before  undertaking  any  action of the same kind,
                    Subtenant  shall  not  undertake  the same without the prior
                    written  consent  of  Sublandlord. Sublandlord may condition
                    its  consent  on  the consent of Landlord being obtained and
                    may  require Subtenant to contact Landlord directly for such
                    consent;

               (iii)  All  rights  given  to  Landlord  and   its   agents   and
                    repre-sentatives  by  the  Prime Lease to enter the Sublease
                    Premises shall inure to the benefit of Sublandlord and their
                    respective  agents  and representa-tives with respect to the
                    Sublease  Premises;

               (iv) Sublandlord  shall  also  have  all  other  rights,  and all
                    privileges,  options, reservations and remedies, grant-ed or
                    allowed  to,  or  held  by,  Landlord under the Prime Lease;

               (v)  Subtenant  shall  maintain insurance of the kinds and in the
                    amounts  required  to be maintained by Sublandlord under the
                    Prime Lease. All policies of liability insur-ance shall name
                    as  additional  insureds  the  Landlord  and Sublandlord and
                    their  respective  officers,  direc-tors or partners, as the
                    case  may  be,  and the respec-tive agents and employ-ees of
                    each  of  them;  and

               (vi) Subtenant shall not do anything or suffer or permit anything
                    to  be  done which could result in a default under the Prime
                    Lease  or  permit  the  Prime  Lease  to  be   canceled   or
                    terminated.

     (c)     Notwithstanding  anything  contained  herein  or in the Prime Lease
which  may  appear to be to the contrary, Sublandlord and Subtenant hereby agree
as  follows:

               (i)  Subtenant  shall  not assign, mortgage, pledge, hypoth-ecate
                    or  otherwise  transfer  or  permit  the  transfer  of  this
                    Sublease  or any interest of Subtenant in this Sub-lease, by
                    operation  of  law  or  otherwise,  or permit the use of the
                    Sublease  Premises or any part thereof by any per-sons other
                    than  Subtenant  and  Subtenant's  employees,  or sublet the
                    Sublease  Premises  or  any  part  thereof;

               (ii) neither  rental  nor other payments hereunder shall abate by
                    reason  of  any  damage  to  or  destruction of the Sublease
                    Premises, the Premises, or the Building or any part thereof,
                    unless,  and  then  only to the extent that, rental and such
                    other  payments  actually  abate  under the Prime Lease with
                    respect  to  the Sublease Premises on account of such event;

Kirkham  Road  Sublease.doc          -  5  -
                                      PAGE

               (iii)  Subtenant  shall  not have any right to any portion of the
                    proceeds  of  any award for a condemna-tion or other taking,
                    or  a  conveyance  in lieu thereof, of all or any portion of
                    the  Building,  the  Premises  or  the  Sublease  Premises;

               (iv) Subtenant  shall  not  have  any  right  to exercise or have
                    Sublandlord  exercise  any  option  under  the  Prime Lease,
                    including, without limitation, any option to extend the term
                    of  the  Prime  Lease  or  lease  addi-tional  space;  and

               (v)  In  the event of any conflict between the terms, con-ditions
                    and  provisions of the Prime Lease and of this Sublease, the
                    terms,  conditions and provisions of this Sublease shall, in
                    all  instances,  govern  and  control.

     (d)     It  is  expressly  understood  and agreed that Sublandlord does not
assume  and  shall  not  have  any of the obligations or liabilities of Landlord
under  the Prime Lease and that Sublandlord is not making the representations or
war-ranties, if any, made by Landlord in the Prime Lease.  With respect to work,
ser-vices,  repairs  and  restoration  or  the  performance of other obligations
required  of  Landlord under the Prime Lease, Sublandlord's sole obligation with
respect  thereto  shall  be  to  request  the  same,  upon  written request from
Subtenant,  and to use reasonable efforts, at Subtenant's sole cost and expense,
to  obtain  the same from Landlord.  Sublandlord shall not be liable in damages,
nor  shall rent abate hereunder, for or on account of any failure by Landlord to
perform  the  obligations  and  duties  imposed  on  it  under  the Prime Lease.
Sublandlord  and  Subtenant  acknowledge  and agree that any repair, maintenance
and/or  replacement  obligations with respect to the Sublease Premises which are
the responsibility of the Sublandlord, as tenant under the Prime Lease, shall be
performed  by Subtenant at Subtenant's sole cost and expense.  In the event that
a condition exists in the Sublease Premises that Landlord is obligated to repair
under  the  terms of the Prime Lease, Subtenant shall so advise Sublandlord, and
Sublandlord,  in  turn,  shall promptly advise Landlord thereof.  At Subtenant's
request,  in  the event that Landlord fails to fulfill any repair or maintenance
obligation  under  the  terms  of  the  Prime Lease with respect to the Sublease
Premises,  Sublandlord shall use its reasonable efforts to have Landlord fulfill
such  repair  and maintenance obligations, all of which reasonable efforts shall
at  be  Subtenant's  sole  cost  and  expense.

Kirkham  Road  Sublease.doc          -  6  -
                                      PAGE

     (e)     Nothing  contained  in  this  Sublease shall be construed to create
privity  of  estate  or  contract  between  Subtenant  and  Landlord, except the
agree-ments  of Subtenant in Sections 10 and 11 hereof in favor of Landlord, and
then  only  to  the  extent  of  the  same.

     7.     DEFAULT  BY  SUBTENANT.

     (a)     Upon  the  happening  of  any  of  the  following:

               (i)  Subtenant  fails  to  pay any Base Rent within five (5) days
                    after  the  date  it  is  due;

               (ii) Subtenant  fails  to pay any other amount due from Subtenant
                    hereunder  and  such  failure  continues  for three (3) days
                    after  notice  thereof  from  Sublandlord  to  Subten-ant;

               (iii)  Subtenant  fails to perform or observe any other cove-nant
                    or  agreement  set  forth  in this Sublease and such failure
                    continues  for  seven  (7)  days  after  notice thereof from
                    Sublandlord  to  Subtenant;  or

               (iv) any  other  event  occurs  which  involves  Subtenant or the
                    Sublease Premises and which would constitute a default under
                    the  Prime Lease if it involved Sublandlord or the Premises;

Subtenant  shall  be  deemed  to  be  in  default hereunder, and Sublandlord may
exer-cise,  without  limitation of any other rights and remedies available to it
hereunder  or  at  law or in equity, any and all rights and remedies of Landlord
set  forth  in  the  Prime  Lease  in  the  event  of  a  default by Sublandlord
thereunder.

     (b)     In  the  event  Subtenant  fails  or refuses to make any payment or
perform  any  covenant  or  agreement  to  be  performed hereunder by Subtenant,
Sublandlord  may  make  such  payment  or  undertake to perform such covenant or
agreement  (but  shall  not have any obligation to Subtenant to do so).  In such
event,  amounts  so  paid and amounts expended in undertaking such perfor-mance,
together with all costs, expenses and attorneys' fees incurred by Sublandlord in
connection  therewith,  shall  be  additional  rent  hereunder.

     8.     NONWAIVER.  Failure  of  Sublandlord to declare any default or delay
in  tak-ing any action in connection therewith shall not waive such default.  No
receipt of moneys by Sublandlord from Subtenant after the termination in any way
of  the term or of Subtenant's right of possession hereunder or after the giving
of any notice shall rein-state, continue or extend the term or affect any notice
given to Subtenant or any suit commenced or judgment entered prior to receipt of
such  moneys.

Kirkham  Road  Sublease.doc          -  7  -
                                      PAGE

     9.     CUMULATIVE  RIGHTS  AND  REMEDIES.  All  rights   and  remedies   of
Sublandlord  under  this Sublease shall be cumulative and none shall exclude any
other  rights  or  reme-dies  allowed  by  law.

     10.     WAIVER  OF  CLAIMS  AND  INDEMNITY.

     (a)     Subtenant  hereby  releases  and  waives any and all claims against
Landlord  and  Sublandlord  and  each  of  their respective officers, directors,
part-ners,  agents  and  employees  for  injury or damage to person, property or
business  sustained  in  or  about  the  Building, the Premises, or the Sublease
Premises  by  Subtenant  other  than  by  reason  of gross negligence or willful
misconduct  and  except  in  any case which would render this release and waiver
void  under  law.

     (b)     Subtenant  agrees  to indemnify, defend and hold harm-less Landlord
and  Sublandlord  and  each  of  their respective officers, directors, partners,
agents  and  employees,  from and against any and all claims, demands, costs and
expenses  of  every  kind  and  nature, including attorneys' fees and litigation
expenses,  arising from Subten-ant's use and occupancy of the Sublease Premises,
Subtenant's construction of any leasehold improvements in the Sublease Premises,
any  release,  discharge,  storage,  production,  use  or  disposal of hazardous
substances  in  the  Sublease  Premises,  the  installation, maintenance, repair
and/or removal of any and all signage installed by Subtenant, or from any breach
or  default  on  the  part  of  Subtenant in the performance of any agreement or
covenant  of  Subtenant  to  be  performed  or  performed under this Sublease or
pursuant to the terms of this Sub-lease, or from any act or neglect of Subtenant
or  its  agents, officers, employees, guests, servants, invitees or customers in
or  about the Sublease Premises.  In case any such proceeding is brought against
any  of  said  indemnified  parties,  Subtenant  covenants,  if  re-quested   by
Sublandlord,  to  defend  such  proceeding at its sole cost and expense by legal
counsel  reasonably  satisfactory  to  Sublandlord.

     11.     WAIVER  OF  SUBROGATION.  Anything in this Sublease to the contrary
notwith-standing, Sublandlord and Subtenant each hereby waive any and all rights
of  recovery,  claims,  actions  or  causes  of action against the other and the
officers,  directors,  part-ners,  agents  and  employees  of  each of them, and
Subtenant  hereby  waives  any  and  all  rights of recovery, claims, actions or
causes  of  action against Landlord and its agents and employees for any loss or
damage  that  may  occur  to  the  Sublease  Premises  or  the  Premises, or any
improvements  thereto,  or any personal property of any person therein or in the
Building,  by  reason  of  fire, the elements or any other cause insured against
under  valid  and  collectible  fire  and extended coverage insurance poli-cies,
regardless  of  cause  or origin, including negligence, except in any case which
would  render this waiver void under law, to the extent that such loss or damage
is  actually  recovered  under  said  insurance  policies.

     12.     BROKERAGE  COMMISSIONS.  Each  party hereby represents and warrants
to  the other that other than CB Richard Ellis, Inc. (agent for Sublandlord) and
CMN,  Inc.,  d/b/a Colliers International (as exclusive agent for Subtenant), it
has had no dealings with any real estate broker or agent in connection with this
Sublease, and that it knows of no real estate broker or agent who is or might be
entitled to a commission in connection with this Sublease. Sublandlord shall pay
a  commission  to  CB  Richard Ellis, Inc. and to CMN, Inc. pursuant to separate
agreement  with each party.  Each party agrees to protect, defend, indemnify and
hold  the  other  harmless from and against any and all claims inconsistent with
the  foregoing  representations  and  warranties  for any brokerage, finder's or
similar  fee  or commission in connection with this Sublease, if such claims are
based on or relate to any act of the indemnifying party which is contrary to the
foregoing  representations  and  warranties.

Kirkham  Road  Sublease.doc          -  8  -
                                      PAGE

     13.     SUCCESSORS  AND  ASSIGNS.  This  Sublease shall be binding upon and
inure  to  the benefit of the successors and assigns of Sublandlord and shall be
binding upon and inure to the benefit of the successors of Subtenant and, to the
extent  any  such  assign-ment  may  be  approved,   Subtenant's  assigns.   The
provisions  of  Subsection 6(e) and Sections 10 and 11 hereof shall inure to the
benefit  of  the  successors  and  assigns  of  Landlord.

     14.     ENTIRE AGREEMENT.  This Sublease contains all the terms, covenants,
con-ditions  and  agreements  between  Sublandlord and Subtenant relating in any
manner  to  the  rental,  use  and occupancy of the Sublease Premises.  No prior
agreement or understanding pertaining to the same shall be valid or of any force
or  effect.  The  terms,  covenants  and  conditions  of this Sublease cannot be
altered,  changed, modified or added to except by a written instrument signed by
Sublandlord  and  Subtenant.

     15.     NOTICES.

     (a)     In  the event any notice from the Landlord or otherwise relating to
the  Prime  Lease is delivered to the Sublease Premises or is otherwise received
by  Subtenant, Subtenant shall, as soon thereafter as possible, but in any event
within twenty-four (24) hours, deliver such notice to Sublandlord if such notice
is  written  or  advise Sublandlord thereof by telephone if such notice is oral.

     (b)     Notices  and  demands  required  or permitted to be given by either
party  to  the other with respect hereto or to the Sublease Premises shall be in
writing  and  shall  not  be  effective for any purpose unless the same shall be
served  either  by  personal delivery with a receipt requested, by overnight air
courier service or by United States certified or registered mail, return receipt
requested,  postage  pre-paid;  provided,  however,  that all notices of default
shall  be  served  either  by  per-sonal delivery with a receipt requested or by
overnight  air  courier  service,  addressed  as  follows:

Kirkham  Road  Sublease.doc          -  9  -
                                      PAGE

          if  to  Sublandlord:              GATEWAY,  INC.
                                            Real  Estate  Administration
                                            610  Gateway  Drive  Y91
                                            North Sioux City, South Dakota 97049

                                            and

                                            GATEWAY,  INC.
                                            7565  Irvine  Center  Drive
                                            Irvine,  CA  92618
                                            Attn:  General  Counsel

          if  to  Subtenant:                SPACEDEV,  INC.
                                            13855  Stowe  Drive
                                            Poway,  CA  92064
                                            Attn: Richard B. Slansky,  President

Notices  and  demands  shall  be  deemed  to  have been given two (2) days after
mailing, if mailed, or, if made by personal delivery or by overnight air courier
service,  then  upon  such  delivery.  Either  party  may change its address for
receipt  of  notices  by  giving  notice  to  the  other  party.

     16.     AUTHORITY  OF SUBTENANT, ETC.  Subtenant represents and warrants to
Sublandlord that this Sublease has been duly author-ized, executed and delivered
by and on behalf of Subtenant and constitutes the valid, enforceable and binding
agreement  of  Subtenant  and of each party constituting Subtenant, each of whom
shall  be  jointly  and  severally liable hereunder in accordance with the terms
hereof.

     17.     LIMITATION  ON  LIABILITY.   Sublandlord  shall  not  be liable for
personal  injury  or  property  damage  to  Subtenant,  its  officers,   agents,
employees,  invitees,  guests,  licensees  or  any  other person in the Sublease
Premises,  regardless  of how such injury or damage may be caused.  Any property
of  Subtenant kept or stored in the Sublease Premises shall be kept or stored at
the  sole risk of Subtenant.  Subtenant shall hold Sublandlord harmless from any
claims  arising  out  of any personal injury or property damage occurring in the
Sublease  Premises,  including  subrogation  claims  by  Subtenant's   insurance
carrier(s).

     18.     CONSENTS;  APPROVALS;  AND  DEFINITIONS.   In  any  instance  when
Sublandlord's consent or approval is required under this Sublease, Sublandlord's
refusal  to consent to or approve any matter or thing shall be deemed reasonable
if,  among  other  matters,  such  consent  or  approval  is  required under the
provisions  of the Prime Lease incorporated herein by reference but has not been
obtained  from Landlord.  Except as otherwise provided herein, Sublandlord shall
not  unreasonably  withhold  or  delay its consent to or approval of a matter if
such consent or approval is required under the provisions of the Prime Lease and
Landlord  has  consented to or approved of such matter.  If Subtenant shall seek
the  approval  by or consent of Sublandlord and Sublandlord shall fail or refuse
to give such consent or approval, Subtenant shall not be entitled to any damages
for  any  withholding  or  delay  of such approval or consent by Sublandlord, it
being agreed that Subtenant's sole remedy in connection with an alleged wrongful
refusal  or  failure  to approve or consent shall be an action for injunction or
specific  performance  shall  be available only in those cases where Sublandlord
shall  have  expressly  agreed  in this Sublease not to unreasonably withhold or
delay  its  consent.  Any and all defined terms which are used herein shall have
the  same  meaning  as  ascribed  thereto  in  the Prime Lease, unless otherwise
defined  in  this  Sublease.

Kirkham  Road  Sublease.doc          - 10 -
                                      PAGE

     19. EXAMINATION. Submission of this instrument for examination or signature
by  Subtenant  does  not  constitute a reservation of or option for the Sublease
Premises or in any manner bind Sublandlord, and no lease, sublease or obligation
on  Sublandlord  shall  arise  until  this instrument is signed and delivered by
Sublandlord and Subtenant; provided, however, that the execution and delivery by
Subtenant  of this Sublease to Sublandlord shall constitute an irrevocable offer
by  Subtenant  to  sublease  the  Sublease  Premises on the terms and conditions
herein contained, which offer may not be revoked for thirty (30) days after such
deliv-ery.

     20.     SECURITY  DEPOSIT.  Simultaneously  with   the  execution  of  this
Sublease,  Subtenant  shall  deposit  with  Sublandlord  as  security   for  the
performance  by  Subtenant of the terms of this Sublease the sum of SIX THOUSAND
SIX  HUNDRED  FORTY  ONE  and  40/100ths  DOLLARS  ($6,641.40)  (the   "Security
Deposit").  The  Security Deposit shall be held by Sublandlord free of trust and
may  be commingled with other (including, but not limited to, Sublandlord's own)
funds,  and  Subtenant shall not be entitled to receive interest earned thereon,
if  any.  Sublandlord  may use or apply on Subtenant's behalf or retain (without
liability  for  interest)  during the Sublease Term the whole or any part of the
Security  Deposit  to  the  extent required for the payment of any Rent or other
sums  as  to  which  Subtenant  may be liable hereunder or for any sums to which
Sublandlord  may  be entitled by reason of Subtenant's default in respect of any
of  the terms of this Sublease, including, but not limited to, any deficiency or
damage  incurred  in  repairing  the  Premises.  After each application from (or
expiration  of)  Subtenant's  Security  Deposit,  Subtenant  shall  upon  demand
replenish  said  Security Deposit to the amount hereinabove set forth.  Under no
circumstances shall the amount of the Security Deposit limit the amount to which
Sublandlord  may be entitled under this Sublease by way of damages or otherwise,
nor  is  such amount intended to be or represent a liquidated damage amount, but
is  merely  an  amount  which  may be applied on account towards any amounts due
Sublandlord  and  unpaid  under  this Sublease.  Provided Subtenant shall comply
with  all  of the terms of this Sublease, the Security Deposit shall be promptly
returned  to  Subtenant  upon  termination of this Sublease and after proper and
timely  surrender  of  possession  of  the  Premises  to  Sublandlord.

     21.     PARKING.   During  the term of this Sublease, at no additional cost
or  expense  to  such  parties (other than the costs expressly set forth in this
Sublease or imposed under the Prime Lease), Subtenant and its employees shall be
entitled to use all of the parking rights granted to Sublandlord as tenant under
the  Prime  Lease.  Subtenant acknowledges and agrees that its right to use such
parking  area  shall  be  upon  the  terms and conditions set forth in the Prime
Lease,  including,  without  limitation,  any  and  all  rules  and  regulations
promulgated  by  Landlord  with  respect  thereto.

Kirkham  Road  Sublease.doc          - 11 -
                                      PAGE

     22.  SIGNAGE.  Subject to all the terms and conditions of this Sublease and
the  Prime  Lease,  Subtenant  shall be permitted to utilize all of the exterior
building  signage  permitted Sublandlord with respect to the Building, as tenant
under  the  Prime Lease, subject to obtaining any and all governmental and other
approvals and obtaining Landlord's and Sublandlord's consent hereto. Subtenant's
right  to  so install such signage shall be at Subtenant's sole cost and expense
and  shall  require  the prior written consent of Sublandlord and Landlord as to
the  design,  size,  location  and  manner  of  installation  of  same. Upon the
expiration  of  the  term  of  this  Sublease or the earlier termination hereof,
Subtenant  shall  remove  any such signage and repair any damage caused by same.
Such  agreement  by  Subtenant  shall survive the expiration of the term of this
Sublease  or  the  earlier  expiration  hereof.

     IN  WITNESS  WHEREOF, Sublandlord and Subtenant have executed this Sublease
as  of  the  date  aforesaid.

                                            SUBLANDLORD:

                                            GATEWAY,  INC.
                                            a  Delaware  corporation

                                            By:  /s/ G.W Jaquess
                                            ----------------------
                                            Name:  G.  W.  Jaquess
                                            Title:  Sr.  Director

                                            SUBTENANT:

                                            SPACEDEV,  INC.
                                            a  Colorado  corporation

                                            By: /s/ Richard B. Slansky
                                            ----------------------------
                                            Name:  Richard B. Slansky
                                            Title:  President &
                                                    Chief Financial Officer

Kirkham  Road  Sublease.doc          - 12 -
                                      PAGE

STATE  OF  CALIFORNIA          )
                               )  SS:
COUNTY  OF  ORANGE             )

     On  this  4 day of April, 2005, before me, the undersigned Notary Public in
and  for  said  County  and  State,  personally appeared Garrison Jaquess as Sr.
Director  of  Gateway.  Inc.,  a Deleware Corporation who executed the foregoing
instrument  on behalf of said corporation for the purposes therein expressed. He
is  personally  known to me and did not take an oath. In witness whereof, I have
hereunto  set  my  hand  and  official seal the day and year last above written.

                                        Notary  Public    /s/ Sara Fisher
                                        Printed/Typed  Name:  Sara Fisher
                                        Commission  No.:  1364336
                                        My  commission  expires: July 11, 2006

STATE  OF  CALIFORNIA           )
                                )  SS:
COUNTY  OF  SAN  DIEGO          )

     On this 1st day of April, 2005, before me, the undersigned Notary Public in
and  for  said  County  and  State,  personally  appeared  Richard B. Slansky as
President  of SpaceDev, Inc., a Colorado corporation, who executed the foregoing
instrument on behalf of said corporation for the purposes therein expressed.  He
has  produced  his  California Drivers License as identification and did take an
oath.  In witness whereof, I have hereunto set my hand and official seal the day
and  year  last  above  written.

                                        Notary  Public   /s/ David Brian Engblom
                                        Printed/Typed  Name: David Brian Engblom
                                        Commission  No.:  1325958
                                        My  commission  expires:  Oct. 19, 2005

Kirkham  Road  Sublease.doc          - 13 -
                                      PAGE

                                    EXHIBIT A
                                    ---------
                                   PRIME LEASE
                                   -----------

                                       C-1
Phase  2  30160.KIRKHAM  ROAD  SUBLEASE.DOC

                                     ------
                                    EXHIBIT B
                                    ---------

                       CHANGES, ALTERATIONS OR  ADDITIONS
                       ----------------------------------

Subtenant  will  remove  the  chain-link  fence   currently   located   in   the
warehouse,add  power  to  the facility at their own cost and distribute it along
two  walls  and  have one or two drop cords in the center of the warehouse area.

                                       C-2
Phase  2  30160.KIRKHAM  ROAD  SUBLEASE.DOC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]