Item
1.01. Entry into a Material Definitive
Agreement
The
Company entered into a joint venture agreement with Eastcom Ltd., a U.K.
company, to perform internal combustion engine manufacturing and sales in Europe
and the Middle East. This relates to the Axial Gas Cam Engine, patent
pending (notice of allowance previously issued by the USPTO). The
agreement requires Eastcom Ltd to pay the Company an advance royalty of $500,000
in relation to a per unit royalty fee of 20% of the gross sales for each
manufactured engine completed by Eastcom Ltd. Eastcom is also required to begin
final assembly of the internal combustion engines within 120 days from the
date
of the contract. The Company anticipates that Eastcom Ltd. will
complete no less than 200 engines during the initial period of the 20 year
term
of the contract.
SECTION
2 - FINANCIAL INFORMATION
None
SECTION
3 - SECURITIES AND TRADING MARKETS
None
SECTION
4 - MATTERS RELATED TO ACCOUNTANTS AND FINANCIAL
STATEMENTS
None.
SECTION
5 - CORPORATE GOVERNANCE AND MANAGEMENT
None
SECTION
6 - RESERVED
None
SECTION
7 - REGULATION FD
None
SECTION
8 - OTHER EVENTS
None
SECTION
9 - FINANCIAL STATEMENTS AND EXHIBITS
None
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Axial
Vector Engine Corporation
/s/
Samuel
Higgins
Samuel
Higgins
Chief
Executive Officer
Date: October
2, 2007