Document:

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:

            

    

     

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    

    
      	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
15 October, 2004	 	 	Massimo
              Luminari, Direttore Generale
11 October,
              2004

    

     

     

    
      
         

      

        -5-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
        
                President	 	 	Per: 
                Michael Liik
        
                President

      

    

     

     

     

    
      
         

      

        -2-

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