Document:

EX 10.12

    EXHIBIT
      10.12

     

    5
      July
      2004

    

    Jiri
      Nor

    Chairman
      and President

    Astris
      Energi, Inc.

    2175-6
      Dunwin Drive

    Mississauga,
      Ontario, Canada

    

    Dott.
      Ing. Massimo Luminari

    Direttore
      Generale

    Electronic
      Machining s.r.l.

    38068
      Rovereto (Tn)

    Via
      F.
      Zeni, 8

    

    COOPERATION
      AGREEMENT

    

    Whereas:

    

    
      	 	
              I.

            	
              Astris
                Energi, Inc. (ASTRIS) is a Canadian based, publicly traded (ASRNF.OB)
                company with corporate offices in Mississauga, Ontario, Canada and
                an
                affiliated technology center (Astris s.r.o.) located in the Czech
                Republic, and

            

    

    

    
      	 	
              II.

            	
              ASTRIS
                is a world leader in the development and practice of alkaline fuel
                cell
                (AFC) technology with more than twenty years of progressive experience,
                and

            

    

    

    
      	 	
              III.

            	
              ASTRIS
                is intent on moving towards full commercialization of AFC technology
                with
                a key next step of developing pilot and then full scale manufacturing
                lines, and 

            

    

    

    
      	 	
              IV.

            	
              Electronic
                Machining s.r.l. (ELMA) ia an Italian based privately held company
                with
                corporate offices and technical development facilities in and around
                Roverto, Trento, Italy, and

            

    

    

    
      	 	
              V.

            	
              ELMA
                has an established record of achievement in research activities and
                in the
                advancement of manufacturing processes,
                and

            

    

    

    
      	 	
              VI.

            	
              ELMA
                desires to expand its field of interest to become a hydrogen/fuel
                cell
                center of expertise in
                Trento/Italy/Europe.

            

    

    

    Therefore:

    

    
      	 	
              1.

            	
              Cooperation.
                ASTRIS and ELMA (together, the Parties) agree to cooperate in the
                area of
                AFC technology. Such cooperation shall include, but not be limited
                to:

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              a.

            	
              ASTRIS
                will licence the use of AFC technology by, and provide support for
                the AFC
                technology to, ELMA in the forms of documentation, technical services,
                equipment and materials (the “Confidential
                Information”)
                as determined by ASTRIS, with an objective of quickly and continuously
                bringing ELMA to an advanced state of AFC technical
                readiness.

            

    

    
      	 	
              b.

            	
              ELMA
                will put in place facilities, equipment and personnel whereby a capability
                is established for working on specified research and development
                tasks
                (tasks to be recommended by ASTRIS and mutually agreed to by the
                Parties)
                related to AFC technology broadly, AFC electrode and stack issues,
                AFC
                power plant issues, manufacturing and assembly processes for AFC
                components and AFC testing equipment for manufactured AFC
                products.

            

    

    
      	 	
              c.

            	
              ASTRIS
                and ELMA will work together/cooperatively to develop an AFC marketing
                and
                sales plan targeted to the Italian market; such a plan to include
                educational materials and promotional materials. The intent of the
                Parties
                is to cooperatively produce demonstration products and install them
                across
                several appropriately selected market applications (stationary,
                transportation, and portable).

            

    

    

    
      	 	
              2.

            	
              Coordination.
                The Parties recognize the capabilities of Energie Rinnovabili Italia
                srl(ERI), based in Genova Via Sat’Elia 45-52, Italy, a privately held
                company focused on energy technology and whose Principal is Dr. Stefano
                Palma (an experienced fuel cell practitioner). The Parties agree
                to engage
                ERI as the coordinator of activity between ASTRIS and
                ELMA.

            

    

    

    
      	 	
              3.

            	
              Compensation/Costs.
                The Parties agree that ELMA will be the beneficiary of ASTRIS’ licence of
                AFC technology and that compensation for such licence is due to ASTRIS
                as
                the licensor and to ERI as the
                coordinator.

            

    

    

    
      	
            	a.	
              ELMA
                agrees to purchase from ASTRIS at market competitive prices mutually
                agreed on between the Parties, goods (products and equipment) and
                services
                (consultancy based and task specified). ASTRIS agrees to provide
                such
                goods and services in a prompt and professional manner. See Annex
                1 for
                further details.

            

    

    
      	
            	b.	
              All
                local ELMA program costs (to include but not limited to personnel
                and
                facilities) are the sole responsibility of
                ELMA.

            

    

    
      	
            	c.	
              ASTRIS
                agrees to compensate ERI (Dr. Stefano Palma) via an award of 50,000
                Astris
                shares in the form of options (strike price determined by the average
                share price of ASTRIS shares in the thirty day period immediately
                preceding the effective date of this agreement; vesting period one
                year;
                term being the shorter of five years or the term of this
                agreement).

            

    

    
      	
            	d.	
              ELMA
                agrees to compensate ERI (Dr. Stefano Palma) on terms and conditions
                to be
                mutually established between ELMA and
                ER.

            

    

     

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      	 	
              4.

            	
              Intellectual
                Property.
                The Parties agree that all intellectual property created or established
                at
                ELMA or at ASTRIS as a result of this Agreement shall be owned by
                ASTRIS.
                ASTRIS and ELMA will establish within three months of the effective
                date
                of this agreement a formal intellectual property program whereby
                discovery
                and registration by ASTRIS of intellectual property produced is
                facilitated. Such program shall, among other things, describe the
                process
                by which ELMA shall be compensated via royalties and/or otherwise
                recognized for intellectual property that it creates under this Agreement.
                ELMA agrees at all times, before and after the termination of this
                Agreement, to assist, and shall cause its officers, directors, employees,
                representatives, agents and advisors at all times to assist, ASTRIS
                or its
                designate, at ASTRIS’ expense, to secure ASTRIS’ rights in such
                intellectual property rights relating thereto in any and all countries.
                The obligations of ELMA out in this section shall survive termination
                of
                this Agreement indefinitely. 

            

    

    

    
      
        
          	
                	5.	
                  Terms/Conditions.
                    The Parties agree as follows regarding the term of this Agreement
                    and
                    conditions associated with this
                    Agreement:

                

        

      

    

    

    
      	 	
              a.

            	
              Subject
                to prior termination of this Agreement pursuant to paragraph f below,
                the
                term of this Agreement is three years commencing on its effective
                date.

            

    

    
      	 	
              b.

            	
              The
                term of this Agreement may be extended for an additional term or
                terms
                under arrangements and conditions mutually agreed to by the Parties
                in
                writing.

            

    

    
      	 	
              c.

            	
              That
                so long as this Agreement is effective, ASTRIS’ AFC based technical
                development and market development efforts in Italy shall be exclusively
                through ER and with ELMA.

            

    

    
      	 	
              d.

            	
              That
                so long as this Agreement is effective, ELMA’s AFC based technical
                development and market development relationship will be exclusively
                through ERI and with ASTRIS.

            

    

    
      	 	
              e.

            	
              That
                the Parties will negotiate in good faith to expand the role of ELMA
                as a
                key ASTRIS representative (technically and in a marketing sense)
                in
                Europe.

            

    

    
      	 	
              f.

            	
              Provisions
                for termination of this Agreement include the
                following:

            

    

    
      	 	
              I.

            	
              Either
                party shall have the right to terminate the Agreement upon delivery
                or
                prior written notice of not less than 60
                days.

            

    

    
      	 	
              II.

            	
              ASTRIS
                may terminate this Agreement immediately upon delivery of written
                notice
                where ELMA is in breach of its obligations under this Agreement and
                has
                not remedied such default within 15 days of delivery of written notice
                by
                ASTRIS or ELMA specifying such
                breach.

            

    

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    
      
        
          	
                	6.	
                  Confidentiality
                    and Restricted Use of Confidential Information.
                    ELMA shall treat all Confidential Information furnished, or to
                    be
                    furnished, to ELMA in any medium whatsoever in accordance with
                    the
                    provisions of this Agreement, and to take, or abstain from taking,
                    the
                    other actions as set forth in this paragraph. The Confidential
                    Information
                    shall be used by ELMA solely for the purpose of performing ELMA’s
                    obligations under this Agreement and absolutely for no other
                    purpose
                    whatsoever, and will be kept strictly
                    confidential
                    by
                    ELMA and its officers, directors, employees, representatives,
                    agents and
                    advisors; provided
                    that
                    (i) any of such Confidential Information may be disclosed to
                    ELMA’s
                    officers, directors, employees, representatives, agents and advisors
                    who
                    need to know such Confidential Information for the purpose of
                    performing
                    ELMA’s obligations under this Agreement (ii) such Confidential Information
                    may be otherwise disclosed to the extent that ASTRIS has expressly
                    given
                    its prior written consent and (iii) such Confidential Information
                    may be
                    disclosed to the extent required by law. The obligations set
                    out in this
                    section shall survive the termination of this Agreement indefinitely.
                    

                

        

      

    

    

    
      	
            	7.	
              Public
                Announcements. The
                parties hereto agree that neither they nor any of their respective
                subsidiaries, officers, directors, employees or agents shall disclose
                to
                any third party or publicly announce this Agreement until such time
                as the
                parties hereto agree in writing to make such disclosure or announcement
                or
                unless otherwise required by law or regulation. Any public announcement
                concerning the Agreement shall be approved in advance by appropriate
                officers of parties hereto.

            

    

    

    
      	 	
              8.

            	
              Survival.
                If
                this Agreement is terminated in accordance with Section 5 above,
                it shall
                become void and of no further force and effect, except for the provisions
                of Sections 4, 6, 7, 8 and 9 which shall survive such termination
                indefinitely; provided that the foregoing shall not relieve any party
                from
                liability for damages actually incurred as a result of any breach
                of
                Sections 4, 6, 7, 8 or 9 of this Agreement.

            

    

     

    
      	 	
              9.

            	
              General
                Provisions

            

    

    

    
      	
            	(1)	
              No
                party hereto may transfer or assign its rights or obligations hereunder
                without prior written consent of the other party
                hereto.

            

    

     

    
      	
            	(2)	
              This
                Agreement may be executed and delivered in counterparts by facsimile.
                An
                executed counterpart of this Agreement is transmitted by facsimile
                bearing
                the signatures of an authorized signing officer shall be as enforceable
                as
                if an originally executed copy of same had been signed and
                delivered.

            

    

     

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    This
      Agreement is subject to the approvals of the respective Boards of Directors
      of
      the Parties.

     

    
      	
              FOR
                ASTRIS:

            	 	
              FOR
                ELMA:

            
	 	 	 
	
              /s/
                Jiri Nor

            	 	
              /s/
                Massimo Luminari

            
	
              Jiri
                Nor, Chairman and President

            	 	
              Massimo
                Luminari, Direttore Generale

            
	
              15
                October, 2004

            	 	
              11
                October, 2004 

            

    

     

     

    
      
         

      

        -5-EX 10.13

    EXHIBIT
      10.13

    

    December
      10, 2004

     

    CONSULTING
      AGREEMENT

     

    Whereas
      Liikfam Holdings Inc. (hereinafter “Liikfam”) is in the business of providing
      strategic management and financial services, and whereas Astris Energi Inc.
      (hereinafter the “Company”) wishes to contract for these services in connection
      with the commercialization of its fuel cell technology, the parties hereto
      agree
      to the following terms:

    

    Objective

     

    The
      primary objective of the initial phase of Liikfam’s involvement will be to
      prepare the Company for and arrange an interim financing in the range of US
      $1
      to $2 million to facilitate the ongoing operations of the Company and to provide
      it with sufficient financing to demonstrate viable small volume commercial
      production of its MC250 fuel cell stack. The financing would be contingent
      on
      the demonstration of initial production capability from it’s European based
      production facility as well as the achievement of a significant commercial
      partnership or meaningful production order. Thereafter, Liikfam will assist
      the
      Company with its preparation for a major institutional financing in the range
      of
      US $10 million. In so doing, Liikfam would utilize its contacts with both US
      and
      Canadian brokerage firms to encourage analyst coverage of the Company and work
      toward a full listing of the Company either on a Canadian or US exchange.
      Liikfam would also assist in the efforts to secure a strategic industry investor
      who in turn would assist with the financing efforts and assist in the
      commercialization effort.

     

    Time
      Commitment

     

    Liikfam
      will make available Michael Liik to provide consulting services described
      herein. On average, he will devote a minimum of one and one half days per week,
      subject to annual review.

    

    Compensation

     

    Liikfam
      will be compensated from the date hereof, for all of the foregoing consulting
      services at a rate of Cdn $8,333 per month plus GST payable in shares or cash
      at
      the Company’s discretion. In the event that the Company opts for share based
      compensation, shares would be issued quarterly at the end of each completed
      quarter on the same basis as all quarterly share payments are made to directors
      and employees. For the period commencing after the interim financing of USD
      $2
      million, the form of payment (shares or cash) shall be at Liikfam’s
      discretion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Expenses

    

    The
      Company will reimburse Liikfam for all reasonable business expenses; expenses
      over $1000 will require prior approval. Mileage will be paid at the rate of
      $0.30 per km.

    

    Termination

    

    This
      agreement may be terminated by either party providing a 30 day notice in writing
      to the other party.

    

    Agreed
      to
      this 10th day of December, 2004, in Mississauga by:

    

    
      	
              Astris
                Energi Inc.

            	 	
              Liikfam
                Holdings Inc.

            
	 	 	 
	
              “Jiri
                Nor”

            	 	
              “Michael
                Liik”

            
	
              Per:
                Jiri Nor

            	 	
              Per:
                Michael Liik

            
	
              President

            	 	
              President

            

    

     

     

    
      
         

      

        -2-

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