<PAGE>

                              LICENSE AGREEMENT

This agreement ("Agreement") is made by and between Composite Solutions,
Inc., a Florida corporation having an address at 7777 Fay Ave., Suite 112, La
Jolla, CA 92032 ("LICENSEE") and The Regents Of The University Of California,
a California corporation having its statewide administrative offices at 1111
Franklin Street, Oakland, California 94607-5200 ("UNIVERSITY"), represented
by its San Diego campus having an address at University of California, San
Diego, Technology Transfer Office, Mail-code 0910, 9500 Gilman Drive, La
Jolla, California 92093-0910 ("UCSD").

This Agreement is effective on the date of the last signature ("Effective
Date").

                                   RECITALS

WHEREAS, the  inventions disclosed in UCSD Case Docket No. SD96-040 and
titled "Modular Carbon Shell Concrete Structures" ("Invention"), were made
in  the course of research at UCSD by Profs. Gilbert A. Hegemier and Frieder
Seible and their associates (hereinafter and collectively, the "Inventors")
and are covered by Patent Rights as defined below;

WHEREAS, the research was sponsored in part by the Government of the United
States of America and as a consequence this license is subject to overriding
obligations to the Federal Government under 35 U.S.C. Sections 200-212 and
applicable regulations;

WHEREAS, the Inventors are employees of UCSD, and they are obligated to
assign all of their right, title and interest in the Invention to UNIVERSITY;

WHEREAS, UNIVERSITY is desirous that the Invention be developed and utilized
to the fullest possible extent so that its benefits can be enjoyed by the
general public;

WHEREAS, LICENSEE is desirous of obtaining certain rights from UNIVERSITY for
commercial development, use, and sale of the Invention, and the UNIVERSITY is
willing to grant such rights; and

WHEREAS, LICENSEE understands that UNIVERSITY may publish or otherwise
disseminate information concerning the Invention and Technology (as defined
below) at any time and that LICENSEE is paying consideration thereunder for
its early access to the Invention and Technology, not continued secrecy
therein.

NOW, THEREFORE, the parties agree;


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                           ARTICLE 1. DEFINITIONS

The terms, as defined herein, shall have the same meanings in both their
singular and plural forms.

1.1  "Affiliate" means any corporation or other business entity in which
     LICENSEE owns or controls, directly or indirectly, at least twenty percent
     (20%) of the outstanding stock or other voting rights entitled to elect
     directors, or in which LICENSEE is owned or controlled directly or
     indirectly by at least twenty percent (20%) of the outstanding stock or
     other voting rights entitled to elect directors; but in any country
     where the local law does not permit foreign equity participation of at
     least twenty percent (20%), then an "Affiliate" includes any company in
     which LICENSEE owns or controls or is owned or controlled by, directly
     or indirectly, the maximum percentage of outstanding stock or voting
     rights permitted by local law.

1.2  "Sublicensee" means a third party to whom LICENSEE grants a sublicense
     of certain rights granted to LICENSEE under this Agreement.

1.3  "Field" mean the modular structures including bridges and buildings
     involving carbon or carbon/hybrid tubes filled or unfilled with
     concrete, including the means (joints, connectors, and related assembly)
     for joining two or more such tubes together to form multi-tubular
     structures.

1.4  "Territory" means world-wide.

1.5  "Term" means the period of time beginning on the Effective Date and
     ending on the later of (1) the expiration date of the longest-lived
     Patent Rights; or (ii) the twenty-first (21st) anniversary of Effective
     Date.

1.6  "Patent Rights" means any of the following: the US patent application
     (serial number 08/597,010, titled "Modular Fiber Reinforced Composite
     Structural Member") disclosing and claiming the Invention, filed by
     Inventors and assigned to UNIVERSITY; and continuing applications
     thereof including divisions, substitutions, and continuations-in-part
     (but only to extent the claims thereof are enabled by disclosure of the
     parent application); any patents issuing on said applications including
     reissues, reexaminations and extensions; and any corresponding foreign
     applications or patents.

1.7  "Technology" means the written technical information relating to the
     Invention which the Inventors provide to LICENSEE prior to the Effective
     Date and which the Inventors may provide to LICENSEE during the Term of
     this Agreement.

                                                                             2

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1.8     "Sponsor Rights" means all the applicable provisions of any license
        to the United States Government executed by UNIVERSITY and the
        overriding obligations to the Federal Government under 35 U.S.C. SS
        200-212 and applicable governmental implementing regulations.

1.9     "Licensed Method" means any method that uses Technology, or is
        covered by Patent Rights the use of which would constitute, but for
        the license granted to LICENSEE under this Agreement, and
        infringement of any pending or issued and unexpired claim within
        Patent Rights.


1.10    "Licensed Product" means any service, composition or product that
        uses the Invention or Technology, or is covered by the claims of
        Patent Rights, or that is produced by the Licensed Method, or the
        manufacture, use, sale, offer for sale, or importation of same which
        would constitute, but for the license granted to LICENSEE by
        UNIVERSITY herein, an infringement of any pending or issued and
        unexpired claim within the Patent Rights.

1.11    "Net Sales" means the total of the gross invoice prices of Licensed
        Products sold by LICENSEE, its Sublicensee, an Affiliate, or any
        combination thereof, less the sum of the following actual and
        customary deductions where applicable and separately listed: cash,
        trade, or quantity discounts; sales, use, tariff, import/export
        duties or other excise taxes imposed on particular sales (except for
        value-added and income taxes imposed on the sales of Product in
        foreign countries); transportation charges; or credits to customers
        because of rejections or returns. For purposes of calculating Net
        Sales, transfers to a Sublicensee or an Affiliate of Licensed Product
        under this Agreement for (i) end use (but not resale) by the
        Sublicensee or Affiliate shall be treated as sales by LICENSEE at list
        price of LICENSEE, or (ii) resale by a Sublicensee or an Affiliate
        shall be treated as sales at the list price of the Sublicensee or
        Affiliate.

1.12    "Patent Costs" means all out-of-pocket expenses for the preparation,
        filing, prosecution, and maintenance of all United States and foreign
        patents included in Patent Rights. Patent Costs shall also include
        reasonable out-of-pocket expenses for patentability opinions,
        inventorship determination, preparation and prosecution of patent
        application, re-examination, re-issue, interference, and opposition
        activities related to patents or applications in Patent Rights.

1.13    "Combination Product" means any product which is a Licensed Product
        and contains other product(s) or product component(s) that (i) does
        not use Invention, Technology or Patent Rights; (ii) the sale, use or
        import by itself does not contribute to the infringement of Patent
        Rights; (iii) can be sold separate;y by LICENSEE, its sublicensee or
        an Affiliate; and (iv) enhances the market price of the final
        product(s) sold, used or imported by LICENSEE, its Sublicensee, or an
        Affiliate.

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<PAGE>

                               ARTICLE 2. GRANTS

2.1     LICENSE. Subject to the limitations set forth in this Agreement and
Sponsor's Rights, UNIVERSITY hereby grants to LICENSEE, and LICENSEE hereby
accepts a license under Patent Rights to make =, use, sell, offer for sale,
and import Licensed Products and to practice Licensed Methods and to use
Technology, in the Field within the Territory and using the Term.

The license granted herein is co-exclusive and LICENSEE understands and
acknowledges that UNIVERSITY has the right to grant one license to a third
party under Patent Rights to make, use, sell, offer for sale, and import
Licensed Products and to practice Licensed Methods and to use Technology, in
the Field within the Territory and during the Term.

UNIVERSITY shall not grant a third license under Patent rights or to use
Technology in the Field, within the Territory and during the Term.

2.2  SUBLICENSE.

(a)     The license granted in Paragraph 2.1 includes the right of LICENSEE
        to grant sublicense to third parties during the Term but only for as
        long the license is exclusive.

(b)     With respect to sublicense granted pursuant to Paragraph 2.2(a),
        LICENSEE shall:

        (1)     not receive, or agree to receive, anything of value in lieu
                of cash as considerations from a third party under a
                sublicense granted pursuant to Paragraph 2.2(a) without the
                express written consent of UNIVERSITY.

        (2)     to the extent applicable, include all of the rights of and
                obligations due to UNIVERSITY (and, if applicable, the
                Sponsor's Rights) and contained in this Agreement;

        (3)     promptly provide UNIVERSITY with a copy of each sublicense
                issued; and

        (4)     collect and guarantee payment of all payments due, directly
                or indirectly, to UNIVERSITY from Sublicensees and summarize
                and deliver all reports due, directly or indirectly, to
                UNIVERSITY from Sublicensees.

(c)     Upon termination of this Agreement for any reason, UNIVERSITY, at its
        sole discretion, shall determine whether LICENSEE shall cancel or
        assign to UNIVERSITY any and all sublicenses.

                                                                               4




<PAGE>

2.3    RESERVATION OF RIGHTS.  UNIVERSITY reserves the right to:

(a)    use the Invention, Technology and Patent Rights for educational and
       research purposes;

(b)    publish or otherwise disseminate any information about the Invention and
       Technology at any time; and

(c)    allow other nonprofit institutions to use Invention, Technology and
       Patent Rights for educational and non-commercial research purposes in
       their facilities.


                          ARTICLE 3.  CONSIDERATIONS

3.1    FEES AND ROYALTIES.  The parties hereto understand that the fees and
       royalties payable by LICENSEE to UNIVERSITY under this Agreement are
       partial considerations for the license granted herein to LICENSEE under
       Technology, and Patent Rights.  LICENSEE shall pay UNIVERSITY:

       (a)   A LICENSE ISSUE FEE of five thousand dollars (US$ 5,000.00) upon
             execution of this Agreement;

       (b)   A MILESTONE PAYMENT of thirty five thousand dollars (US$ 35,000.00)
             upon issuance any US patent covered under Patent Rights (paragraph
             1.6);

       (c)   AN EARNED ROYALTY of one and one half percent (1.5%) on Net Sales
             of Licensed Products by LICENSEE and/or its Affiliate(s);

       (d)   fifty percent (50%) of all SUBLICENSE FEES received by LICENSEE
             from its Sublicensees that are not earned royalties;

       (e)   on each and every SUBLICENSE ROYALTY payment received by LICENSEE
             from its Sublicensees on sales of Licensed Product by Sublicensee,
             the higher of (i) fifty percent (50%) of the royalties received by
             LICENSEE; or (ii) royalties based on the royalty rate in Paragraph
             3.1(d) as applied to Net Sales of Sublicensee;

       (f)   beginning the calendar year of the Effective Date if the total
             earned royalties paid by LICENSEE under Paragraphs 3.1(c) and (e)
             to UNIVERSITY in any such year cumulatively amounts to less than
             the amount specified herein for each calendar year ("MINIMUM
             ANNUAL ROYALTY"), LICENSEE shall pay to UNIVERSITY a minimum
             annual royalty on or before February 28 following the last quarter
             of such year


                                                                               5

<PAGE>

             of the difference between amount noted above and the total earned
             royalty paid by LICENSEE for such year under Paragraphs 3.1(b) and
             (d).
<TABLE>
           <S>      <C>
             2000       US$ 10,000
             2001       US$ 20,000
             2002       US$ 30,000
             2003       US$ 40,000
             2004       US$ 50,000 and for each calendar year of the Agreement
                    thereafter.
</TABLE>

       All fees and royalty payments specified in Paragraphs 3.1(a) through
       3.1(f) above shall be paid by LICENSEE pursuant to Paragraph 4.3 and
       shall be delivered by LICENSEE to UNIVERSITY as noted in Paragraph 10.1.

3.2    PATENT COSTS.  LICENSEE shall reimburse UNIVERSITY for one-half (1/2) of
       all past (prior to the Effective Date) and future (on or after the
       Effective Date) Patent Costs within thirty (30) days following receipt
       by LICENSEE of an itemized invoice from UNIVERSITY.

       One-half (1/2) of Past Patent Costs are estimated to be thirty nine
       thousand six hundred and ninety seven dollars (US$ 39,697.00), to be
       paid in six (6) equal payments of six thousand six hundred sixteen
       dollars and sixteen cents (US$ 6,616.16) on 1 Oct 1999, 1 Jan 2000, 1
       Apr 2000, 1 July 2000, 1 Oct 2000, and 1 Jan 2001.

3.3  DUE DILIGENCE.

(a)  LICENSEE shall:

       (1)    diligently proceed within a reasonable time with the development,
              manufacture and sale of Licensed Products according to the
              business plan provided by LICENSEE to UNIVERSITY;

       (2)    market Licensed Products in the United States within six (6)
              months of receiving regulatory approval to market such Licensed
              Product's;

       (3)    should LICENSEE'S License be converted to an exclusive license,
              then reasonably fill the market demand for Licensed Products
              following commencement of marketing at any time during the term
              of this Agreement; and


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      (4)   obtain all necessary governmental approvals for the manufacture, use
            and sale of Licensed Products.

(b)   If LICENSEE fails to perform any of its obligations specified in
      Paragraphs 3.3(a)(1)-(4), the UNIVERSITY shall have the right and option,
      subject to LICENSEE'S right to written notice and rights to cure provided
      herein under paragraph 7.1. to either terminate this Agreement or change
      LICENSEE's exclusive license to a nonexclusive license. This right, if
      exercised by UNIVERSITY, supersedes the rights granted in Article 2.

                    ARTICLE 4. REPORTS, RECORDS AND PAYMENTS

4.1   REPORTS.

(a)   PROGRESS REPORTS.

      (1)   Beginning January 1, 2000 and ending on the date of first commercial
            sale of a Licensed Product in the United States, LICENSEE shall
            submit to UNIVERSITY semi-annual progress reports covering
            LICENSEE's (and Affiliate's and Sublicensee's) activities to develop
            and test all Licensed Products and obtain governmental approvals
            necessary for marketing the same. Such reports shall include a
            summary of work completed; summary of work in progress; current
            schedule of anticipated events or milestones; market plans for
            introduction of Licensed Products; and summary of resources (dollar
            value) spent in the reporting period.

      (2)   LICENSEE shall also report to UNIVERSITY, in its immediately
            subsequent progress report, the date of first commercial sale of a
            Licensed Product in each country.

(b)   ROYALTY REPORTS. After the first commercial sale of a Licensed Product
      anywhere in the world, LICENSEE shall submit to UNIVERSITY quarterly
      royalty reports on or before each February 28, May 31, August 31 and
      November 30 of each year. Each royalty report shall cover LICENSEE's (and
      each Affiliate's and Sublicensee's) most recently completed calendar
      quarter and shall show:

      (1)   the gross sales, deductions as provided in Paragraph 1.11, and Net
            Sales during the most recently completed calendar quarter and the
            royalties, in US dollars, payable with respect thereto;

      (2)   the number of each type of Licensed Product sold;


                                                                               7
<PAGE>

      (3)   sublicense fees and royalties received during the most recently
            completed calendar quarter in US dollars, payable with respect
            thereto;

      (4)   the method used to calculate the royalties; and

      (5)   the exchange rates used.

      If no sales of Licensed Products has been made and no sublicense revenues
      has been received by LICENSEE during any reporting period, LICENSEE shall
      so report.

(c)   To the extent allowed by law, all records and other proprietary business
information of LICENSEE made available to UNIVERSITY'S under foregoing
paragraphs 4.2(a) and 4.2(b) shall be held by UNIVERSITY and UNIVERSITY'S
inspecting agents in strictest confidence and shall not be disclosed to any
person or entity except for those persons who need to have access to the same
for the specific and limited purposes intended by those sections to determine
the compliance of LICENSEE with respect to LICENSEE'S obligation to make
royalty payments under this Agreement. All such records, upon the completion
of the audit, shall be returned to LICENSEE with no copies being retained
except those limited records necessary to resolve a claim against LICENSEE if
and when a reasonable dispute exists about such payments.

4.2   RECORDS & AUDITS.

(a)   LICENSEE shall keep, and shall require its Affiliates and Sublicensees to
      keep, accurate and correct records of all Licensed Products manufactured,
      used, and sold, and sublicense fees received under this Agreement. Such
      records shall be retained by LICENSEE for at least five (5) years
      following a given reporting period.

(b)   All records shall be available during normal business hours for inspection
      at the expense of UNIVERSITY by UNIVERSITY'S Internal Audit Department or
      by a Certified Public Accountant selected by UNIVERSITY and in compliance
      with the other terms of this Agreement for the sole purpose of verifying
      reports and payments. Such inspector shall not disclose to UNIVERSITY any
      information other than information relating to the accuracy of reports and
      payments made under this Agreement or other compliance issues. In the
      event that any such inspection shows an under reporting and underpayment
      in excess of five percent (5%) for any twelve (12) month period, then
      LICENSEE shall pay the cost of the audit as well as any additional sum
      that would have been payable to UNIVERSITY had the LICENSEE reported
      correctly, plus an interest charge at a rate of ten percent (10%) per
      year. Such interest shall be calculated from the date the correct payment
      was due to UNIVERSITY up to the date when such payment is actually made by
      LICENSEE. For


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underpayment not in excess of five percent (5%) for any twelve (12) month
period, LICENSEE shall pay the difference within thirty (30) days without
interest charge or inspection cost.

4.3  PAYMENTS.

(a)  All fees and royalties due UNIVERSITY shall be paid in United States
     dollars and all checks shall be made payable to "The Regents of the
     University of California", referencing UNIVERSITY'S taxpayer
     identification number, 95-6006144.  When Licensed Products are sold in
     currencies other than United States dollars, LICENSEE shall first
     determine the earned royalty in the currency of the country in which
     Licensed Products were sold and then convert the amount into
     eqivalent United States funds, using the exchange rate quoted in the
     Wall Street Journal on the last business day of the applicable reporting
     period.

(b)  Royalty Payments.

     (1)  Royalties shall accrue when Licensed Products are invoiced, or if
          not invoiced, when delivered to a third party or Affiliate.

     (2)  LICENSEE shall pay earned royalties quarterly on or before February
          28, May 31, August 31 and November 30 of each calendar year.  Each
          such payment shall be for earned royalties accrued within
          LICENSEE's most recently completed calendar quarter.

     (3)  Royalties earned on sales occurring or under sublicense granted
          pursuant to this Agreement in any country outside the United States
          shall not be reduced by LICENSEE for any taxes, fees, or other
          charges imposed by the governments of such country on the payment
          of royalty income except that all payments made by LICENSEE in
          fulfillment of UNIVERSITY'S tax liability in any particular country
          may be credited against earned royalties or fees due UNIVERSITY for
          that country.  LICENSEE shall pay all bank charges resulting from
          the transfer of such royalty payments.

     (4)  If at any time legal restrictions prevent the prompt remittance of
          part or all royalties by LICENSEE with respect to any country where
          a Licensed Product is sold or a sublicense is granted pursuant to
          this Agreement, LICENSEE shall convert the amount owed to
          UNIVERSITY into US currency and shall pay UNIVERSITY directly from
          its US sources of fund for as long as the legal restrictions apply.


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     (5)  LICENSEE shall not collect royalties from, or cause to be paid on
          Licensed Products sold to the account of the US Government or any
          agency thereof as provided for in the license to the US Government.

     (6)  In the event that any patent or patent claim within Patent Rights is
          held invalid in a final decision by a patent office from which no
          appeal or additional patent prosecution has been or can be taken,
          or by a court of competent jurisdiction and last resort and from
          which no appeal has or can be taken, all obligation to pay
          royalties based solely on that patent or claim or any claim
          patentably indistinct therefrom shall cease as of the date of such
          final decision.  LICENSEE shall nor, however, be relieved from
          paying any royalties that accrued before the date of such final
          decision, that are based on another patent or claim not involved in
          such final decision, or that are based on the use of Technology.

(b)  LATE PAYMENTS.  In the event royalty, reimbursement and/or fee payments
     are not received by UNIVERSITY when due, LICENSEE shall pay to
     UNIVERSITY interest charges at a rate of ten percent (10%) per year.
     Such interest shall be calculated from the date payment was due until
     actually received by UNIVERSITY.  The payment of such interest shall not
     foreclose UNIVERSITY from exercising any other rights it may have as a
     consequence of the lateness of any payment.  In no event shall this
     paragraph be construed as a grant of permission for any payment delays.

                           ARTICLE 5.  PATENT MATTERS

5.1  PATENT PROSECUTION AND MAINTENANCE.

(a)  Provided that LICENSEE has reimbursed UNIVERSITY for Patent Costs
     pursuant to Paragraph 3.2, UNIVERSITY shall diligently prosecute and
     maintain the United States and, if available, foreign patents, and
     applications in Patent Rights using counsel of its choice.  UNIVERSITY
     shall provide LICENSEE with copies of all relevant documentation
     relating to such prosecution and LICENSEE shall keep this documentation
     confidential.  The counsel shall take instructions only from UNIVERSITY,
     and all patents and patent applications in Patent Rights shall be
     assigned solely to UNIVERSITY.

     If UNIVERSITY decides not to file patent applications in any country or
     countries in which LICENSEE deems patent protection to be necessary,
     LICENSEE may require that such application or applications be made and
     prosecuted by UNIVERSITY in such countries.  Should the other third party
     licensee choose not to participate in that third party's share of such
     application, LICENSEE agrees to pay the full expense of such application
     or applications.


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<PAGE>

     UNIVERSITY will use best efforts to amend that third party's license to
     grant LICENSEE an exclusive license in such country to countries to
     which such patent application apply.

(b)  UNIVERSITY shall consider amending any patent application in Patent
     Rights to include claims reasonably requested by LICENSEE to protect the
     products contemplated to be sold by LICENSEE under this Agreement.

(c)  LICENSEE shall apply for an extension of the term of any patent in
     Patent Rights if appropriate under the Drug Price Competition and Patent
     Term Restoration Act of 1984 and/or European, Japanese and other foreign
     counterparts of this law.  LICENSEE shall prepare all documents for such
     application, and UNIVERSITY shall execute such documents and to take
     any other additional action as LICENSEE reasonably requests in
     connection therewith.

(d)  LICENSEE may elect to terminate its reimbursement obligations with
     respect to any patent application or patent in Patent Rights upon three
     (3) months' written notice to UNIVERSITY.  UNIVERSITY shall use
     reasonable efforts to curtail further Patent Costs for such application
     or patent when such notice of termination is received from LICENSEE.
     UNIVERSITY, in its sole discretion and at its sole expense, may continue
     prosecution and maintenance of said application or patent, and LICENSEE
     shall then have no further license with respect thereto.  Non-payment of
     any portion of Patent Costs with respect to any application or patent
     may be deemed by UNIVERSITY as an election by LICENSEE to terminate its
     reimbursement obligations with respect to such application or patent.

5.2  PATENT INFRINGEMENT.

(a)  If LICENSEE learns of any substantial infringement of Patent Rights,
     LICENSEE shall so inform UNIVERSITY and provide UNIVERSITY with
     reasonable evidence of the infringement.  Neither party shall notify a
     third party of the infringement of Patent Rights without the consent of
     the other party.  Both parties shall use reasonable efforts and
     cooperation to terminate infringement without litigation.

(b)  LICENSEE may request UNIVERSITY to take legal action against such third
     party for the infringement of Patent Rights.  Such request shall be made
     in writing and shall include reasonable evidence of such infringement
     and damages to LICENSEE.  If the infringing activity has not abated
     thirty (30) days following LICENSEE's request, UNIVERSITY shall elect to
     or not to commence suit on its own account.  UNIVERSITY shall give
     notice of its election in writing to LICENSEE by the end of the one
     hundredth (100) day after receiving notice of such request from
     LICENSEE.  LICENSEE may

                                                                          11

<PAGE>

      thereafter bring suit for patent infringement at its own expense, if
      and only if UNIVERSITY elects not to commence suit and the infringement
      occurred in a jurisdiction where LICENSEE has an exclusive license
      under this Agreement. If LICENSEE elects to bring suit, UNIVERSITY may
      join that suit at its own expense.


(c)   Unless otherwise agreed to by the parties to this Agreement via good
      faith negotiations, recoveries from actions brought pursuant to
      Paragraph 5.2(b) shall belong to the party bringing suit. Likewise,
      unless otherwise agreed to by the parties to this Agreement via good
      faith negotiation, legal actions brought jointly by UNIVERSITY and
      LICENSEE and fully participated in by both shall be at the joint
      expense of the parties and all recoveries shall be shared jointly by
      them first in proportion to the share of direct out-of-pocket expense
      paid by each party to investigate and pursue the claims against the
      infringement and second in proportion to damages occurred on each in
      that action.

(d)   Each party shall cooperate with the other in litigation proceedings at
      the expense of the party bringing suit. Litigation shall be controlled
      by the party bringing the suit, except that UNIVERSITY may be
      represented by counsel of its choice in any suit brought by LICENSEE.

5.3   PATENT MARKING. LICENSEE shall mark all Licensed Products made, used or
sold under the terms of this Agreement, or their containers, in accordance
with the applicable patent marking laws.

                        ARTICLE 6. GOVERNMENTAL MATTERS

6.1   GOVERNMENTAL APPROVAL OR REGISTRATION. If this Agreement or any
associated transaction is required by the law of any nation to be either
approved or registered with any governmental agency, LICENSEE shall assume
all legal obligations to do so. LICENSEE shall notify UNIVERSITY if it
becomes aware that this Agreement is subject to a United States or foreign
government reporting or approval requirement. LICENSEE shall make all
necessary filings and pay all costs including fees, penalties, and all other
out-of-pocket costs associated with such reporting or approval process.

6.2   EXPORT CONTROL LAWS. LICENSEE shall observe all applicable United
States and foreign laws with respect to the transfer of Licensed Products and
related technical data to foreign countries, including, without limitation,
the International Traffic in Arms Regulations and the Export Administration
Regulations.

6.3   PREFERENCE FOR UNITED STATES INDUSTRY. If LICENSEE sells a Licensed
Product or Combination Product in the US, LICENSEE shall manufacture said
product substantially in the US.



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<PAGE>


                     ARTICLE 7. TERMINATION OF THE AGREEMENT

7.1   TERMINATION BY THE REGENTS. If LICENSEE fails to perform or violates
any term of this Agreement, then UNIVERSITY may give written notice of
default ("Notice of Default") to LICENSEE. If LICENSEE fails to cure the
default within sixty (60) days of the Notice of Default, or if a complete
cure is impractical under the circumstances within that time, then reasonably
commenced an effective plan of rectification within that time, UNIVERSITY may
terminate this Agreement and the license granted herein or exercised
UNIVERSITY'S alternative option under paragraph 3.3(b) by a second written
notice ("Notice of Termination") to LICENSEE. If a Notice of Termination is
sent to LICENSEE, this Agreement shall automatically terminate on the
effective date of that notice. Termination shall not relieve LICENSEE of its
obligation to pay any fees or royalties owed at the time of termination and
shall not impair any accrued right of UNIVERSITY.

7.2   TERMINATION BY LICENSEE.

(a)   LICENSEE shall have the right at any time and for any reason to
      terminate this Agreement upon a ninety (90) day written notice to
      UNIVERSITY. Said notice shall state LICENSEE's reason for terminating
      this Agreement.

(b)   Any termination under Paragraph 7.2(a) shall not relieve LICENSEE of
      any obligation or liability accrued under this Agreement prior to
      termination or rescind any payment made to UNIVERSITY or action by
      LICENSEE prior to the time termination becomes effective. Termination
      shall not affect in any manner any rights of UNIVERSITY arising under
      this Agreement prior to termination.

7.3   SURVIVAL ON TERMINATION. The following Paragraphs and Articles shall
      survive the termination of this Agreement:

(a)   Article 4 (REPORTS, RECORDS AND PAYMENTS);

(b)   Paragraph 7.4 (Disposition of Licensed Products on Hand);

(c)   Paragraph 8.2 (Indemnification);

(d)   Article 9 (USE OF NAMES AND TRADEMARKS);

(e)   Paragraph 10.2 hereof (Secrecy);

(f)   Paragraph 10.5 (Failure to Perform); and

(g)   Paragraph 7.3 (Survival on Termination)


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<PAGE>

7.4  DISPOSITION OF LICENSED PRODUCTS ON HAND.  Upon termination of this
Agreement, LICENSEE may dispose of all previously made or partially made
Licensed Product within a period of one hundred and twenty (120) days of the
effective date of such termination provided that the sale of such Licensed
Product by LICENSEE, its Sublicensees, or Affiliates shall be subject to the
terms of this Agreement, including but not limited to the rendering of
reports and payment of royalties required under this Agreement.


              ARTICLE 8.  LIMITED WARRANTY AND INDEMNIFICATION

8.1  LIMITED WARRANTY.

(a)  UNIVERSITY warrants that it has the lawful right to grant this license.

(b)  THE LICENSE GRANTED HEREIN AND THE ASSOCIATED TECHNOLOGY AND INVENTION
     ARE PROVIDED "AS IS" AND WITHOUT WARRANTY OF MERCHANTABILITY OR WARRANTY
     OF FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY, EXPRESS OR
     IMPLIED.  UNIVERSITY MAKES NO REPRESENTATION OR WARRANTY THAT THE
     LICENSED PRODUCT, LICENSED METHOD OR THE USE OF PATENT RIGHTS OR
     TECHNOLOGY WILL NOT INFRINGE ANY OTHER PATENT OR OTHER PROPRIETARY
     RIGHTS.

(c)  IN NO EVENT SHALL UNIVERSITY BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR
     CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THE LICENSE GRANTED
     HEREIN OR THE USE OF THE INVENTION, LICENSED PRODUCT, LICENSED METHOD OR
     TECHNOLOGY.

(d)  Nothing in this Agreement shall be construed as:

     (1)  a warranty or representation by UNIVERSITY as to the validity or
          scope of any Patent Rights;

     (2)  a warranty or representation that anything made, used, sold or
          otherwise disposed of under any license granted in this Agreement
          is or shall be free from infringement of patents of third parties;

     (3)  an obligation to bring or prosecute actions or suits against third
          parties for patent infringement except as provided in Paragraph 5.2
          hereof;

                                                                          14

<PAGE>

     (4)  conferring by implication, estoppel or otherwise any license or
          rights under any patents of UNIVERSITY other than Patent Rights as
          defined in this Agreement, regardless of whether those patents are
          dominant or subordinate to Patent Rights;

     (5)  an obligation to furnish any know-how not provided in Patent Rights
          and Technology; or

     (6)  an obligation to update Technology.

8.2  INDEMNIFICATION.

(a)  LICENSEE shall indemnify, hold harmless, and defend UNIVERSITY, its
     officers, employees, and agents; the sponsors of the research that led
     to the Invention; and the Inventors of the patents and patent
     applications in Patent Rights and their employers against any and all
     claims, suits, losses, damage, costs, fees, and expenses resulting from
     or arising out of exercise of this license or any sublicense.  This
     indemnification shall include, but not be limited to, any product
     liability.

(b)  LICENSEE, at it sole cost and expense, shall insure its activities in
     connection with the work under this Agreement and obtain, keep in force
     and maintain insurance or an equivalent program of self insurance as
     follows:

     (1)  comprehensive or commercial general liability insurance
          (contractual liability included) with limits of at least: (i) each
          occurrence, $1,000,000; (ii) products/completed operations
          aggregate, $5,000,000; (iii) personal and advertising injury,
          $1,000,000; and (iv) general aggregate (commercial form only),
          $5,000,000; and

     (2)  the coverage and limits referred to above shall not in any way
          limit the liability of LICENSEE.

(c)  LICENSEE shall furnish UNIVERSITY with certificates of insurance showing
     compliance with all requirements.  Such certificates shall; (i) provide
     for thirty (30) day advance written notice to UNIVERSITY of any
     modification; (ii) indicate that UNIVERSITY has been endorsed as an
     additional insured under the coverage referred to above; and (iii)
     include a provision that the coverage shall be primary and shall not
     participate with nor shall be excess over any valid and collectible
     insurance or program of self-insurance carried or maintained by
     UNIVERSITY.

                                                                          15

<PAGE>

(d)  UNIVERSITY shall notify LICENSEE in writing of any claim or suit brought
     against UNIVERSITY in respect of which UNIVERSITY intends to invoke the
     provisions of this Article.  LICENSEE shall keep UNIVERSITY informed on
     a current basis of its defense of any claims under this Article.

                      ARTICLE 9.  USE OF NAMES AND TRADEMARKS

9.1  Nothing contained in this Agreement confers any right to use in
advertising, publicity, or other promotional activities any name, trade name,
trademark, or other designation of either party hereto (including
contraction, abbreviation or simulation of any of the foregoing).  Unless
required by law, the use by LICENSEE of the name, "The Regents Of The
University Of California" or the name of any campus of the University Of
California is prohibited, without the express written consent of UNIVERSITY.

9.2  UNIVERSITY may disclose to the Inventors the terms and conditions of
this Agreement upon their request.  If such disclosure is made.  UNIVERSITY
shall request the Inventors not disclose such terms and conditions to others.

9.3  UNIVERSITY may acknowledge the existence of this Agreement and the
extent of the grant in Article 2 to third parties, but UNIVERSITY shall not
disclose the financial terms of this Agreement to third parties, except where
UNIVERSITY is required by law to do so, such as under the California Public
Records Act.


                    ARTICLE 10.  MISCELLANEOUS PROVISIONS

10.1  CORRESPONDENCE.  Any notice or payment required to be given to either
party under this Agreement shall be deemed to have been properly given and
effective:

      (a)  on the date of deliver if delivered in person, or

      (b)  five (5) days after mailing if mailed by first-class or certified
           mail, postage paid, to the respective addresses given below, or to
           such other address as is designated by written notice given to the
           other party.

           IF SENT TO LICENSEE:
           Composite Solutions, Inc.
           Attention: Tom Burke
           7777 Fay Ave., Suite 112
           La Jolla, CA 92032


                                                                          16


<PAGE>

          If sent to UNIVERSITY:
          Technology Transfer & Intellectual Property Services. Mail code 0910
          Attention: Director
          University of California, San Diego
          9500 Gilman Drive
          La Jolla, CA 92093-0910

10.2 SECRECY.

(a)   "Confidential Information" shall mean information, including
      Technology, relating to the Invention and disclosed by UNIVERSITY to
      LICENSEE during the term of this Agreement, which if disclosed in
      writing shall be marked "Confidential", or if first disclosed
      otherwise, shall within thirty (30 days) of such disclosure be reduced
      to writing by UNIVERSITY and sent to LICENSEE;

(b)   Licensee shall:

      (1)   use the Confidential Information for the sole purpose of
            performing under the terms of this Agreement.

      (2)   safeguard Confidential Information against disclosure to others
            with the same degree of care as it exercises with its own data of
            a similar nature.

      (3)   not disclose Confidential Information to others (except to its
            employees, agents or consultants who are bound to LICENSEE by a
            like obligation of confidentiality) without the express written
            permission of UNIVERSITY, except that LICENSEE shall not be
            prevented from using or disclosing any of the Confidential
            Information that:

            (i)   LICENSEE can demonstrate by written records was
                  previously known to it.

            (ii)  is now, or becomes in the future, public knowledge other
                  than through acts or omissions of LICENSEE; or

            (iii) is lawfully obtained by LICENSEE from sources independent
                  of UNIVERSITY; and

(b)   The secrecy obligations of LICENSEE with respect to Confidential
      Information shall continue for a period ending five (5) years from the
      termination date of this Agreement.


                                                                            17

<PAGE>


10.3  ASSIGNABILITY. This Agreement may be assigned by UNIVERSITY, but is
personal to LICENSEE and assignable by LICENSEE only with the written consent
of UNIVERSITY.

10.4  NO WAIVER. No waiver by either party of any breach or default of any
covenant or agreement set forth in this Agreement shall be deemed a waiver as
to any subsequent and/or similar breach or default.

10.5  FAILURE TO PERFORM. In the event of a failure of performance due under
this Agreement and if it becomes necessary for either party to undertake
legal action against the other on account thereof, then the prevailing party
shall be entitled to reasonable attorney's fees in addition to costs and
necessary disbursements.

10.6  GOVERNING LAWS. THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, but the scope and
validity of any patent or patent application shall be governed by the
applicable laws of the country of the patent or patent application.

10.7  FORCE MAJEURE. A party to this Agreement may be excused from any
performance required herein if such performance is rendered impossible or
unfeasible due to any catastrophe or other major event beyond its reasonable
control, including, without limitation, war, riot, and insurrection; laws,
proclamations, edicts, ordinances, or regulations; strikes, lockouts, or
other serious labor disputes; and floods, fires, explosions, or other natural
disasters. When such events have abated, the non-performing party's
obligations herein shall resume.

10.8  HEADINGS. The headings of the several sections are inserted for
convenience of reference only and are not intended to be a part of or to
affect the meaning or interpretation of this Agreement.

10.9  ENTIRE AGREEMENT. This Agreement embodies the entire understanding of
the parties and supersedes all previous communications, representations or
understandings either oral or written, between the parties relating to the
subject matter hereof.

10.10 AMENDMENTS. No amendment or modification of this Agreement shall be
valid or binding on the parties unless made in writing and signed on behalf
of each party.

10.11 SEVERABILITY. In the event that any of the provisions contained in this
Agreement is held to be invalid. illegal, or unenforceable in any respect,
such invalidity,illegality or unenforceability shall not affect any other
provisions of this Agreement, and this Agreement shall be construed as if the
invalid, illegal, or unenforceable provisions had never been contained in it.



                                                                            18

<PAGE>

IN WITNESS WHEREOF, both UNIVERSITY and LICENSEE have executed this
Agreement, in duplicate originals, by their respective and duly authorized
officers on the day and year written.



COMPOSITE SOLUTIONS, INC.:                  THE REGENTS OF THE
                                            UNIVERSITY OF CALIFORNIA

By /s/ Tom Burke                            By /s/ Alan S. Paau
   -----------------------                     ---------------------
        (Signature)                                 (Signature)

Tom Burke                                   Alan S. Paau
President, Composite Solutions              Director, Technology Transfer Office

Date August 4, 1999                         Date August 4, 1999
     -------------------------             -------------------------------


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