Document:

<PAGE>

                                                                    Exhibit 10.1

                             CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT is dated for reference the 1st day of December, 1999.

BETWEEN:
          REGI U.S., INC.
          #185, 10751 Shellbridge Way
          Richmond, BC  V6X 2W8

          ("REGI")
                                                               OF THE FIRST PART
AND:
          PATRICK BADGLEY
          2815 Franklin Drive
          Columbus, Indiana 47201

          ("Badgley")
                                                              OF THE SECOND PART
WHEREAS:

A.   REGI agrees to retain Badgley as Project Manager for certain of REGI's Rand
     Cam/Direct Charge engine projects as more particularly described herein;
     and

B.   Badgley has agreed to work exclusively for REGI on a full time basis during
     the term of this Agreement and any renewals hereunder.

NOW THEREFORE in consideration of the mutual covenants and conditions set forth
herein, the parties hereto agree as follows:

1.   The term of this Agreement shall be for a period of six months from the
     date hereof and shall be renewable for successive six month terms, provided
     that the parties hereto mutually agree in writing to extend the term of
     this Agreement.

2.   REGI hereby agrees to retain Badgley as Project Manager for its Rand
     Cam/Direct charge engine related projects as more particularly described in
     Section 3 herein.

3.   Effective December 1st, 1999, Badgley agrees to work exclusively for REGI
     on a full time basis on the following Rand Cam/Direct Charge engine related
     projects (the "Projects"):

     (a)  to complete the model compressor for Trans Air Manufacturing for air
          conditioning in bus applications by no later than June 1st, 2000;

     (b)  to complete the "winged rotor" project by no later than June 1st,
          2000;

     (c)  to assist REGI and its attorney, Norman Cameron, in completing, filing
          and/or modifying any patent applications related to REGI's Rand
          Cam/Direct Charge engine technology; and

     (d)  such other projects or business as requested by the President of REGI
          from time to time.

4.   Badgley agrees to immediately resign all positions with other companies and
     to terminate any and all other projects that Badgley may be currently
     working on that are not directly related to REGI or the Projects.

<PAGE>

                                      -2-

5.   In consideration for Badgley providing his consulting services to REGI on
     an exclusive basis and complying with the terms and conditions set out
     herein, REGI agrees to pay Badgley the sum of $8,000 US per month, payable
     bi-monthly, at the rate of $4,000 US on the 15th of each month and the
     balance of $4,000 on the last day of each month, less any payroll
     deductions that may be necessary by US or Canadian laws.

6.   Badgley further agrees to use his best efforts in obtaining license
     agreements for diesel and compressor applications of the Rand Cam/Direct
     Charge technology.

7.   In the event that REGI enters into a license agreement for any of its Rand
     Cam/Direct charge engine applications as a direct result of Badgley's
     efforts, REGI agrees to pay a commission to Badgley on any up-front fees or
     royalties payable by the licensee during the first year only of any license
     agreement entered into between REGI and the licensee to use the Rand
     Cam/Direct charge technology:

     ---------------------------------------------------------------------------
      Fee or Royalty payable by REGI during
       the first year of License Agreement        Commission Payable to Badgley
     ---------------------------------------------------------------------------
      On the first $300,000                                    10%
     ---------------------------------------------------------------------------
      From $300,000 to $1,000,000                               5%
     ---------------------------------------------------------------------------
      From $1,000,000 to $5,000,000                             3%
     ---------------------------------------------------------------------------
      Over $5,000,000                                         1.5%
     ---------------------------------------------------------------------------

8.   Badgley hereby acknowledges and agrees that any and all modifications,
     improvements or additions related to the Rand Cam/Direct Charge engine
     technology shall be the sole and exclusive property of REGI and Badgley
     agrees to report any such modifications, improvements or additions to REGI
     on a timely basis .

9.   This Agreement shall be governed by and interpreted in accordance with the
     laws of the State of Washington.

10.  Failure to enforce any provision of this Agreement shall not constitute a
     waiver of any term hereof.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.

REGI U.S., INC.

/s/ John Robertson                        /s/ Patrick Badgley
-------------------------------------     --------------------------------------
Signature                                 PATRICK BADGLEY

John Robertson
-------------------------------------     --------------------------------------
Print Name                                Signature of Witness

President
-------------------------------------     --------------------------------------
Title                                     Print Name of WitnessExhibit 10.2

                         [LETTERHEAD OF COLTEC, INC.]

Date:     December 6, 1999              Attn:     Mr. Patrick Badgley

To:       REGI U.S.
          Rand Energy Group Inc., U.S.A.
          2815 Franklin Drive, Columbus, IN 47201

          +------------------------------------------------------+
          |              Special Services Proposal               |
          |                       #1355                          |
          |   Approved by: /s/ John Robertson    Date: 12/21/99  |
          |               -------------------          --------  |
          +------------------------------------------------------+

     Based on the meeting between Patrick Badgley and the ColTec managers, which
took place on December 3, 1999, and the request for Drafting Assistance document
dated November 16, 1999, ColTec, Inc. presents this proposal.

DESCRIPTION OF WORK:
--------------------

     Using existing 3D Solid Edge models and 2D drawings for the Rand Cam
compressor provided by REGI U.S. ColTec will accomplish the following tasks:

(1)  Model the fasteners required to complete assembly.

(2)  Correctly model both CAM parts.

(3)  Assemble the entire model and check for interference.

(4)  Accomplish a stack up analysis for the entire assembly.

(5)  Correct the 3D models and assemblies as required by the stack up analysis.

(6)  Select preferred manufacturing method.

(7)  For cast parts add draft to each part. For machined parts add stock to each
     part.

(8)  Generate either dimensioned casting or machining drawings depending on the
     process selected to make each of the parts. (For the purpose of prototypes
     only)

(9)  Identify supplier to make the parts.

(10) Secure agreements, procure parts, assemble and deliver (2) compressor
     assemblies.

<PAGE>

(11) Provide an estimated cost of production for quantities of 10,000 20,000
     and 50,000 units.

TIME SCHEDULE:
--------------

 .    Contract start date estimated to be December 15, 1999

 .    Complete Step (1) thru (6)        Week 1 thru 6

 .    Complete step (7) and (8)         Week 3 thru 16

 .    Complete step (9) and (10)        Week 16 thru 23

REGI U.S. SUPPORT REQUIREMENTS:
-------------------------------

 .    In order to complete the work described herein both correctly and in a
     timely manner, Mr. Badgley will need to function as an unpaid "Project
     Manager Consultant". In this role Mr. Badgley will periodically review and
     approve work as it is completed. He will also need to make final decisions
     on design changes that may result from the stackup analysis. As suppliers
     are located and cost/time estimates are secured for each of the parts,
     final decisions regarding cast-Vs-machined will be required.

 .    All the necessary engineering and analysis for the compressor is assumed to
     be completed and correct for the design as delivered to ColTec.

 .    Provide any existing Solid Edge Rand Cam part models.

 .    Provide any existing solid Edge Rand Cam Assembly Models

 .    Provide any existing Solid Edge Rand Cam 2D Drawings

COST:
-----

 .    Budget for ColTec CAD Support     $100,000

 .    Parts requisition                 See condition (c&d) below

 .    Security Administration           See condition (e) below

PROPOSAL CONDITIONS:
--------------------

(a)  A 10% Starting Deposition required. Work will begin on the project on
     approval and receipt of the deposit.

(b)  If major design changes to the current product configuration are required,
     the additional costs incurred by ColTec, Inc. will be charged to REGI U.S.
     on an hourly basis.

(c)  The cost of actual parts is currently unknown and is not included in this
     estimate.

(d)  Part procurement will include the cost of the part plus a 10% handling fee.

<PAGE>

(e)  An additional hourly effort may be required to obtain NONDISCLOSURE
     agreements during the supplier selection phase as required by paragraph 2.
     This fee sill also cover the maintenance of the TRANSMITTAL LOG along with
     the PROPRIETARY marking of transmitted documents as required by paragraph
     17.

(f)  Bimonthly invoices, based on the actual hours worked on #1355, will be
     approved by Pat Badgley. The invoices are to be paid within 10 days.

(g)  Delivery time of actual parts depends on the supplier's schedule and as
     such cannot be guaranteed by ColTec.

(h)  ColTec does not warrant or guarantee the functionality of the completed
     compressor.

(i)  ColTec will perform the tasks stated herein in a rigorous and professional
     manner. However, the final product liability is the responsibility of REGI
     U.S.

(j)  This Proposal is valid for 30 days. A signature in the proposal agreement
     block will constitute approval.

<PAGE>

Estimated Work Schedule for REGI U.S. Project #1355

PHASE/TASK    DESCRIPTION                    ASSIGNED       START       END

STEP (1)      Model Fasteners                Russell        12/15/98    12/22/99

Review                                       Pat

STEP (2)      Complete CAM parts             Pete           12/15/99    12/23/99

Review                                       Pat

STEP (3)      Assemble Model                 Pete           12/23/99    1/7/00

STEP (3a)     Interference Check             Pete           12/27/99    1/7/00
     (3b)     Part/Assembly Corrections      Russell                    1/7/00

Review                                       Pat

STEP (4a)     Update Detail drawings         Robert         12/15/99    1/7/00
     (4b)     Stackup analysis               Bill/Russell   1/7/00      1/21/00

Review                                       Pat

STEP (5)      Part/Assembly Corrections      Pete/Russell   1/12/00     1/26/00
     (5b)     Confirm Stackup                Bill           1/26/00     1/28/00

Review                                       Pat

STEP (6)      Select Manufacturing Method    Bill,Pete,Pat  12/15/99    1/28/00

STEP (7a)     Add Draft "Cast Parts"         Russell        1/28/00     2/25/00
              Add Stock for machining        Robert         1/28/00     2/25/00
     (7b)     Generate Mfg. Drawings"        Bill/Russell   2/14/00     3/3/00
     (7c)     Add Stock "Machined Parts"     Bill/Robert    2/24/00     3/3/00
     (7d)     Generate Mfg. Drawings         Russell/Robert/Bill

Review                                       Pat

subtotal

STEP (8)      Identify Suppliers             Joe/Pete       12/15/99    1/28/00

STEP (9)      Secure Agreements              Joe/Pete       1/28/00     2/25/00
     (9b)     Have Parts Made                Joe/Pete       2/7/00      5/5/00

Review
     (9c)     Assemble Compressor                           5/5/00      5/19/00

Acceptance                                   REGI U.S.
                                                            12/15/99    5/19/00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]