Subcontract 32162-SV
Amendment 1
EXHIBIT 10.13
THALES
SUBCONTRACT
NO. 32162-SV
AMENDMENT 1
BETWEEN
THALES COMMUNICATIONS, INC.
AND
NEAH POWER SYSTEMS, INC.
28 JULY 2004
AGREEMENT ▇▇. ▇▇▇▇▇-▇▇
▇▇▇▇▇▇▇▇▇ ▇▇. ▇
This amendment makes the following changes:
1. Revises Clause 1 - Development Phase 1 Schedule and Deliverables to reflect
delays and additional prototypes in accordance with Thales letter
DDA-04-854 dated 16 July 2004.
2. Subcontract pages 1 and 2 are included in this Amendment. All changes are
marked with a change bar.
3. This Amendment is effective as of 28 July 2004.
4. All other subcontract portions remain unchanged.
The parties hereto have executed this amendment as shown below:
Seller: Buyer:
Neah Power Systems, Inc. Thales Communications, Inc.
By: By:
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------- -----------------------------
(Signature) (Signature)
▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------- -----------------------------
(Typed or Printed Name) (Typed or Printed Name)
President & CEO Director of Contracts
--------------------------- -----------------------------
(Title) (Title)
July 28, 2004 July 30, 2004
--------------------------- -----------------------------
(Date) (Date)
Subcontract 32162-SV
Amendment 1
THIS AGREEMENT, effective as of the last date of signature hereto, by and
between Thales Communications, Inc. of ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇
▇▇▇▇▇, hereinafter called "Thales", "TCI" or "Buyer", and Neah Power Systems,
Inc. of ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, hereinafter called
the "'Neah", "Seller" or "Subcontractor", collectively called the "Parties."
WITNESSETH THAT
Whereas, Neah is an expert engaged in the development of small fuel cells for
portable devices based upon silicon technology and desires to enter a business
arrangement with TCI to develop a tactical fuel cell version for use with TCI's
XXXX portable applications;
Whereas, TCI is a Government and defense contractor in the business of
developing, producing and selling man portable radios and desires to enter into
a business arrangement with Neah to have Neah develop a tactical fuel cell power
source for use with TCI's products;
Whereas, in consideration of the mutual promises, covenants, and agreements set
forth herein, the Parties agree that the Neah shall perform all the services and
deliver all of the products required by this Agreement, for the consideration
calculated in accordance with this Agreement. This Agreement, hereinafter
referred to as the "Agreement" or "Subcontract". The rights and obligations of
the Parties shall be governed by this Agreement, the Supplemental Provisions and
any other documents or specifications attached hereto or referenced herein or
within a document so referenced;
Now therefore, the parties agree as follows:
1. ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇ - Prices and Delivery Schedule:
For a price of $344,000, Seller agrees to use commercially reasonable
efforts to develop proof-of-concept fuel cell power source prototypes in
accordance with the Statement of Work (SOW) and Specification shown in
Attachment 1. The deliverables for Phase 1 are as follows:
------------------------------------------------------------ ------------------------ -------------------------
Description Quantity Due Date
------------------------------------------------------------ ------------------------ -------------------------
Fuel Cell Prototype in accordance with SOW and 2 30 Sep 2004
Specification and Option 2 of Thales letter DDA-04-854
dated 16 Jul 2004
------------------------------------------------------------ ------------------------ -------------------------
Fuel Cell Prototype in accordance with SOW and 2 31 Jan 2005
Specification and Option I of Thales letter DDA-04-854
dated 16 Jul 2004
------------------------------------------------------------ ------------------------ -------------------------
-1-
Subcontract 32162-SV
Amendment 1
------------------------------------------------------------ ------------------------ -------------------------
Non-Functioning Space Models in Phase 2 Form Factor 2 31 Jan 2005
------------------------------------------------------------ ------------------------ -------------------------
Draft Phase 2 Fuel Cell Requirements 1 31 Jan 2005
Document and Not to Exceed Production Price
------------------------------------------------------------ ------------------------ -------------------------
Test and Evaluation Support As required As Required
------------------------------------------------------------ ------------------------ -------------------------
Status Reports /Conference Calls Bi-weekly as Required As Agreed
------------------------------------------------------------ ------------------------ -------------------------
Meetings/Reviews 3 Minimum As Agreed
------------------------------------------------------------ ------------------------ -------------------------
For purposes of administration and payment, a separate Purchase Order(s)
may be issued pursuant to this Agreement. In such an event, any purchase
order issued shall make reference to this Agreement and all terms and
conditions contained herein shall apply to the purchase orders. To the
extent that such purchase orders include terms which are in conflict with,
or which are not included in, this Agreement, they shall be subject to
acceptance by ▇▇▇▇.
▇▇▇▇▇ ▇ PAYMENT SCHEDULE
Payments shall be made to Seller based on the following Milestone Schedule:
--------------------- -------------------------------------- ------------------------ -------------------------
Milestone Payment Event/Criteria Payment Amount Estimated Schedule
--------------------- -------------------------------------- ------------------------ -------------------------
1 Execution of Agreement $153,000 N/A
--------------------- -------------------------------------- ------------------------ -------------------------
2 Critical Design Review $78,000 22 June 2004
--------------------- -------------------------------------- ------------------------ -------------------------
3 Delivery of Draft Phase 2 Product $113,000 31 Jan 2005
Development Specification, four Phase 1
prototypes and two Phase 2 space models, and
Not-to-Exceed Production Price.
--------------------- -------------------------------------- ------------------------ -------------------------
Payments are due by Buyer net 30 days after receipt of a valid invoice from
Seller.
2. OPTION ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇ - PRICES AND DELIVERY SCHEDULE:
The Buyer shall have 3 months following final delivery of all deliverables
by Seller and acceptance thereof by buyer under development Phase 1 to
exercise the Phase 2 option, at which time Buyer shall provide Seller with
the finalized physical form factor for Phase 2. The buyer shall have an
option to purchase an additional 3 months of decision time at a cost of
$40,000. The total price for Phase 2, if successful, is $1,402,000. Seller
agrees to use commercially reasonable efforts to develop fuel cell power
sources in accordance with the
-2-
Subcontract 32162-SV
Amendment 1
Statement of Work (SOW) and Specification shown in Attachment 1. The
deliverables for Phase 2 are as follows:
-------------------------------------------------------------- ----------------------- ------------------------
Description Quantity Due Date
-------------------------------------------------------------- ----------------------- ------------------------
Fuel Cell Prototype including fuel cells and fuel cartridges. 5 units qualified per 12 Months after option
Table 6, Attachment 4B exercise
-------------------------------------------------------------- ----------------------- ------------------------
Fuel Cell Documentation 1 lot Per SOW
-------------------------------------------------------------- ----------------------- ------------------------
Test and Evaluation Support As Required As Required
-------------------------------------------------------------- ----------------------- ------------------------
Status Reports/Conference Calls Bi-weekly as Required As Agreed
-------------------------------------------------------------- ----------------------- ------------------------
Meetings/Reviews 4 Minimum As Agreed
-------------------------------------------------------------- ----------------------- ------------------------
Phase 3 Production Price and Delivery Proposal 1 15 Months after option
exercise
-------------------------------------------------------------- ----------------------- ------------------------
-3-
