Document:

First Amendment to Agmt for Perf of Technology

  
 Exhibit 10.7 
  
 FIRST AMENDMENT TO 
 AGREEMENT FOR PERFORMANCE OF 
 TECHNOLOGY DEVELOPMENT SERVICES 
 BY INDEPENDENT CONTRACTORS 

 
 This First Amendment (“First Amendment”) to that certain Agreement for Performance of Technology Development Services
by Independent Contractors (hereinafter referred to as the “Agreement”) is entered into and executed this 24th day of January 2002, by, among and between: 
  
 STEVEN CHARLES MANTHEY, an individual (hereinafter “First Contractor”), with a principal place of business located at 1 Promenade Offices, Robina Town
Centre, Gold Coast, Queensland, Australia; and 
  
 OX2 ENGINE DEVELOPMENT PTY LTD (ACN 098 024 992), an
Australian company (hereinafter “Second Contractor”) whose registered office is 1 Promenade Offices, Robina Town Centre, Gold Coast, Queensland, Australia; and 
  
 ADVANCED ENGINE TECHNOLOGIES, INC., (hereinafter “AET”), whose corporate headquarters is located at 11150 W. Olympic Boulevard, Suite 1050, Los
Angeles, California, United States. 
  
 (hereinafter collectively the “Parties”). 
  
 WITNESSETH: 
  
 A.  WHEREAS, AET, First Contractor and Second Contractor entered into the Agreement dated October 15, 2001, whereby the Parties reached an agreement pursuant to which First and Second Contractor agreed to provide AET with
new components for the OX2 Engine, plus three additional OX2 prototype engines, in accordance with certain agreed upon scopes of work and delivery dates; and 

 
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 B.  WHEREAS, First and Second Contractors and AET have thus far worked
together successfully to accomplish the goals and objectives of the Agreement; and 
  
 C.  WHEREAS, due to
changing circumstances and events, and through no fault of any of the Parties, some but not all of the new components outlined in Section 2.01.2 of the Agreement have been designed, developed, manufactured and delivered to AET within the first three
months of the Agreement, but certain other new components will not be manufactured and delivered to AET until the second three months of the Agreement; and 
  
 D.  WHEREAS, the Parties agree that it is in the best interests of the accomplishment of the objectives of the Agreement, and the successful development of OX2 Engine, that Section 2.01.2 be
amended to reschedule the delivery dates for the manufacture and delivery of certain of the new components outlined in said section, and, further, that the delivery date of the “First Gen-Set OX2 Engine” be advanced from the date set forth
in Section 2.01.5 of the Agreement to a date within the parameters of Section 2.01.2 of the Agreement. Advancing the delivery date of the First Gen-Set OX2 Engine will enable AET to take possession and begin testing of this important new engine
design nine months sooner than the date now called for in the Agreement; 
  
 NOW, THEREFORE, the Parties hereby agree
that the Agreement shall be amended by this First Amendment as follows: 
  
 1.  Amendment of Section 2.01.2.    The Parties hereby agree that Section 2.01.2 of the Agreement is amended to read as follows (said Amendment hereby being incorporated by reference
into the Agreement as though set forth in full in the Agreement ab initio) 
  
 “SECTION 2.01.2  Design and manufacture of New Components.     The First and Second Contractors agree to 

 
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 design, develop, and manufacture and deliver to AET within three (3) months from
the date of this Agreement the new components listed under subparagraphs 1 and 2, below: 
  
 (1)  Twelve (12) single ring pistons for retro-fit to No. 3 Engine. To be delivered within thirty (30) days from the date of this Agreement. 
  
 [DELIVERED 12/2001.] 
  
 (2)  Test Rig for “port seals” so as to test and optimize performance. Initial Rig within sixty (60) days. 
  
 [DELIVERED 1/2002.] 
  
 (3)  Three (3) “High Compression Machined Blocks.” First machined block within thirty (30) days from the date of receipt of heat treated blocks. Second machined block within forty-five (45) days of
receiving heat treated blocks. Third Machined Block within seventy (70) days of receiving heat treated blocks. 
  
 [MOVE TO PHASE 2.] 
  
 (4)  Twenty-four (24) Cylinder Sleeves
fitted to suit High Compression Machined Blocks. First eight (8) sleeves to be delivered with first block and second eight (8) sleeves to be delivered with second Machined Block, and third eight (8) sleeves to be delivered with third Machined Block.

  
 [MOVE TO PHASE 2.] 

 
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 (5)  One (1) set of single ring pistons to suit High
Compression Machined Blocks. To be delivered within forty-five (45) days from the date of this Agreement. 
  
 [MOVE TO PHASE 2.] 
  
 (6)  Ten (10) twenty millimeter port seals
to be delivered within fifty-five (55) days and then additional port seals as versions improve. 
  
 [MOVE TO PHASE 2.] 
  
 (7)  One (1) Port Plate Insert to suit High
Compression Machined Block to be delivered with first machined Block. 
  
 [MOVE TO PHASE 2.]

  
 The new components listed at subparagraphs 3, 4, 5, 6 and 7, above, shall be delivered to AFT
within six (6) months of the date of this Agreement.” 
  
 2.  Amendment to Section 2.01.5.    The parties hereby agree that Section 2.01.5 of the Agreement is amended to read as follows (said Amendment hereby being
incorporated by reference into the Agreement as though set forth in full in the Agreement. ab initio) 
  
 “SECTION 2.01.5  Manufacture of Fourth and Fifth Prototype OX2 Engine.    The First and Second Contractors agree to deliver to AET a Fourth OX2 Engine and Fifth OX2 Engine, in
accordance with the following schedule: 
  
 (A)  If requested by AET in accordance with
Section 2.01.6.3, a Fourth OX2 Engine, which will be 

 
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 designed, manufactured, produced and delivered for the primary purpose of AET conducting durability testing (W.O.T.).
This engine is to be known as the “First Durability Testing OX2 Engine.” The First and Second Contractor shall deliver said First Durability Testing OX2 Engine to AET within ten (10) months from the date of this Agreement. 

 
 (B)  A Fifth OX2 Engine, which will be designed, manufactured and produced and delivered to AET for
the special purpose of operating a generator in a commercial context with the goal of operating a 25/30 KW Caterpillar generator. This engine is to be known as the “First Gen-Set OX2 Engine.” The First and Second Contractors shall deliver
said First Gen-Set OX2 Engine to AET by no later than February 28, 2002. 
  
 [MOVE TO PHASE 2.] 

 
 Except as hereinabove set forth, the Agreement remains in full force and effect as originally set forth and executed.

  
 IN WITNESS, the Parties hereto have duly executed this First Amendment on the date first above written.

  
 SIGNED, SEALED AND DELIVERED        ) 
 BY SAID STEVEN CHARLES MANTHEY) 
 IN THE
PRESENCE
OF:                                )        
    /s/    STEVEN CHARLES MANTHEY 
 
 
  
 /s/    MICHAEL JOHNSTON, ESQ. 
 
WITNESS 

 
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	 OX2 ENGINE DEVELOPMENT EXECUTED
 	  	 )
 	  	  	 	  
	 BY ITS DULY AUTHORIZED OFFICER
 	  	 )
 	  	  	 	  
	 IN ACCORDANCE WITH THE CORPORATIONS
 	  	 )
 	  	  	 	  
	 LAW IN THE PRESENCE OF
 	  	 )
 	  	  	 	 /s/    STEVEN CHARLES MANTHEY
 
	 	 	 	 	 	
	

	  	  	  	  	  	 	  
	 /s/    MICHAEL JOHNSTON, ESQ.
 	  	  	  	  	 	  
	
	 	 	 	 	 	 
	 WITNESS
 	  	  	  	  	 	  
	  	  	  	  	  	 	  
	 The COMMON SEAL OF ADVANCED
 	  	 )
 	  	  	 	  
	 ENGINE TECHNOLOGIES, INC. was
 	  	 )
 	  	  	 	  
	 duly affixed in accordance with its Articles of
 	  	 )
 	  	  	 	  
	 Association in the presence of:
 	  	 )
 	  	  	 	 /s/    M. NEIL CUMMINGS, ESQ.
 
	 	 	 	 	 	
	

	  	  	  	  	  	 	  
	 /s/    M. NEIL CUMMINGS, ESQ.
 	  	  	  	  	 	  
	
	 	 	 	 	 	 
	 COMPANY SECRETARY/TREASURER
 	  	  	  	  	 	  
	  	  	  	  	  	 	  
	  	  	  	  	  	 	  
	  	  	  	  	  	 	  

 

 
 6Second Amendment to Agmt for Perf of Technology

  
 Exhibit 10.8 
  
 SECOND AMENDMENT TO 
 AGREEMENT FOR PERFORMANCE OF 
 TECHNOLOGY DEVELOPMENT SERVICES 
 BY INDEPENDENT CONTRACTORS 

 
 This Second Amendment (“Second Amendment”) to that certain Agreement for Performance of Technology Development
Services by Independent Contractors (hereinafter referred to as the “Agreement”) is entered into and executed this      day of April 2002, by, among and between: 
  

STEVEN CHARLES MANTHEY, an individual (hereinafter “First Contractor”), with a principal place of business located at 1 Promenade Offices,
Robina Town Centre, Gold Coast, Queensland, Australia; and 
  
 OX2 ENGINE DEVELOPMENT PTY LTD (ACN 098 024
992), an Australian company (hereinafter “Second Contractor”) whose registered office is 1 Promenade Offices, Robina Town Centre, Gold Coast, Queensland, Australia; and 
  
 ADVANCED ENGINE TECHNOLOGIES, INC., (hereinafter “AET”), whose corporate headquarters is located at 11150 W. Olympic Boulevard, Suite 1050, Los
Angeles, California, United States. 
  
 (hereinafter collectively the “Parties”).

  
 WITNESSETH: 
  
 A.  WHEREAS, AET, First Contractor and Second Contractor entered into the Agreement dated October 15, 2001, whereby the Parties reached an agreement pursuant to
which First and Second Contractor agreed to provide AET with new components for the OX2 Engine, plus three additional OX2 prototype engines, in accordance with certain agreed upon scopes of work and delivery dates; and 

 
 1 

  
 B.  WHEREAS, the Parties agree that it is in the best interests of the
accomplishment of the objectives of the Agreement, and the successful development of the OX2 Engine, that the following Sections of the Agreement be amended in accordance with their Second Amendment, with all other terms and conditions of the
Agreement to remain in full force and effect; 
  
 NOW, THEREFORE, the Parties hereby agree that the Agreement shall
be amended by this Second Amendment as follows: 
  
 1.  Amendment of Section
2.01.4.    The Parties hereby agree that Section 2.01.4 of the Agreement is amended to read as follows (said Amendment hereby being incorporated by reference into the Agreement as though set forth in full in the Agreement
ab initio): 
  
 “SECTION 2.01.4  Manufacture of Third
Prototype OX2 Engine.    The First and Second Contractors agree to design, manufacture and deliver to AET a Third OX2 Engine by no later than July 19, 2002, for the primary purpose of conducting performance testing and/or
design modifications. This engine is to be known as the ‘Third Performance Testing OX2 Engine’ and will incorporate a High Compression Block which has been machined by the Second Contractor and shall be fitted with a port assembly with
zero overlap and a sinusoidal cam profile (following the lines of a crank-engine of the same stroke), and other design features with which Dick Ronzi concurs, with the goal that the said engine shall achieve 25% Break Thermal Efficiency (BTE), and
be capable of operating a 25 KW generator using liquid propane gas or compressed natural gas as a fuel system. This engine is to be hereinafter referred to as the ‘Ronzi Gen-Set Engine.’ 

 
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 2.  Amendment of Section
2.01.5.    The parties hereby agree that Section 2.01.5 of the Agreement is amended to read as follows (said Amendment hereby being incorporated by reference into the Agreement as though set forth in full in the
Agreement, ab initio): 
  
 “SECTION 2.01.5  Manufacture of
Fourth and Fifth Prototype OX2 Engine.    The First and Second Contractors agree to deliver to AET a Fourth OX2 Engine and Fifth OX2 Engine, in accordance with the following schedule: 
  
 (A)  If requested by AET in accordance with Section 2.01.6.3, a Fourth OX2 Engine, which will be designed,
manufactured, produced and delivered for the primary purpose of AET conducting durability testing (W.O.T.). This engine is to be known as the “First Durability Testing OX2 Engine.” The First and Second Contractor shall deliver said First
Durability Testing OX2 Engine to AET within twelve (12) months from the date of this Agreement. 
  
 (B)    By no later than July 24, 2002, or, immediately on the demand of AET, the Fifth OX2 Engine (which First and Second Contractors hereby represent has been manufactured and is currently fully operational)
shall be delivered to AET, with the goal that this engine be capable of achieving 25% Break Thermal Efficiency (BTE), and operating a 25KW generator using liquid propane gas or compressed natural gas as a fuel system. This 

 
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 engine is to be hereinafter referred to as the ‘Manthey Gen-Set
Engine.’” 
  
 3.  “Section 5.10
[New].    First and Second Contractors are to deliver, or cause to be delivered to AET, by no later than Friday, June 7, 2002, a complete set of current OX2 engine drawings in a solid Works digital format. These
files can be provided on Zip disk or CD media.” 
  
 Except as hereinabove set forth, the Agreement remains in
full force and effect as originally set forth and executed. 
  
 IN WITNESS, the Parties hereto have
duly executed this First Amendment on the date first above written. 
  
 
	 SIGNED, SEALED AND DELIVERED
 	  	 )
 	  	  	  	  
	 BY SAID STEVEN CHARLES MANTHEY
 	  	 )
 	  	  	  	  
	 IN THE PRESENCE OF
 	  	 )
 	  	  	  	 /s/    STEVEN CHARLES MANTHEY
 
	 	 	 	 	 	
	

	  	  	  	  	  	  	  
	 /s/    MICHAEL JOHNSTON, ESQ.
 
	  	  	  	  	  	  
	 WITNESS
 	  	  	  	  	  	  
	  	  	  	  	  	  	  
	 OX2 ENGINE DEVELOPMENT EXECUTED
 	  	 )
 	  	  	  	  
	 BY ITS DULY AUTHORIZED OFFICER
 	  	 )
 	  	  	  	  
	 IN ACCORDANCE WITH THE CORPORATIONS
 	  	 )
 	  	  	  	  
	 LAW IN THE PRESENCE OF:
 	  	 )
 	  	  	  	 /s/    STEVEN CHARLES MANTHEY
 
	 	 	 	 	 	
	

	  	  	  	  	  	  	  
	 /s/    MICHAEL JOHNSTON, ESQ.
 
	  	  	  	  	  	  
	 WITNESS
 	  	  	  	  	  	  

 

 
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	 The Common SEAL of ADVANCED
 	  	 )
 	  	  	  	  
	 ENGINE TECHNOLOGIES, INC. was
 	  	 )
 	  	  	  	  
	 duly affixed in accordance with its
 	  	 )
 	  	  	  	  
	 Articles of Association in the presence of:
 	  	 )
 	  	  	  	 /s/    M. Neil Cummings, Esq.
 
	 	 	 	 	 	
	

	  	  	  	  	  	  	  
	 /s/    M. Neil Cummings, Esq.
 
	  	  	  	  	  	  
	 COMPANY SECRETARY/TREASURER
 	  	  	  	  	  	  

 

 
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