In October 1996 AET entered into a Licensing Agreement with OX2 Engine
(Distribution) Ltd, hereinafter referred to as the "Grantor", for the right to
manufacture, distribute and market the OX2 engine.
Page two items 2.1, 2.1.1 and 2.1.2. of the Agreement deals specifically with
the issuance of AET common shares to the Grantor. To date, 20,000,000 shares
have been issued, however, the Agreement calls for an additional 19,000,000
shares to be issued after certain events take place.
It is now the Grantor's opinion that this issuance of additional shares could
have a negative effect on AET's ability to commercialise the OX2 engine. The
Grantor feels that AET and its public shareholders could incur financial harm if
these additional 19,000,000 shares were issued.
In consideration for the excellent performance by AET in it's effort to
commercialise the OX2 engine and for the strong support shareholders of AET have
given the company, the Grantor has made a decision to rescind that portion of
the Licensing Agreement, calling for the future issuance of additional
19,000,000 shares.
AET has received an executed amendment to the 1996 Licensing Agreement,
effectively cancelling AET's commitment to issue the additional 19,000,000
shares as called for in article 2.1.2 of the Licensing Agreement between AET and
the Grantor in consideration for a sum of $100 US.
The amendment to the Licensing Agreement has been accepted by AET and the
consideration of US$100 has been paid.
The Common Seal of
OX2 Engine (Distribution) LTD.
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Director/Officer
Xxxxxx Xxxxxxxx
The Common Seal of
Advanced Engine Technologies, Inc.
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Director/Officer
Xxxxxx X. Xxxxxx
