Document:

EX-10.1
                              Distribution and License Agreement

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                                  EXHIBIT 10.1

                       DISTRIBUTION AND LICENSE AGREEMENT

Date:  26-8-98

Parties:

1.      EHPC Ionisation  Limited,  a company  incorporated  in England,  whose
        registered  office is at 87A Newington Causeway, London, SE1 6DH,
        England ("EHPCI")

2.      Aqua Bio  Technologies,  a company  incorporated  in accordance with the
        laws of the State of Delaware,  in the United  States of America,  whose
        principal  place  of  business  is at  28870  US 19  North,  Suite  300,
        Clearwater, Florida 33761, USA ("ABTI")

3.      NVID  International  Inc, a company  incorporated in accordance with the
        laws of the State of Delaware,  in the United  States of America,  whose
        principal  place  of  business  is at  28870  US 19  North,  Suite  300,
        Clearwater, Florida 33761, USA ("NVID")

4.      EHPC  Limited,  a company  incorporated  in  England  whose  registered
        office is at 87A  Newington
        Causeway, London, SEl 6DH, England ("EHPC")

Recitals:

(A)     EHPCI manufactures electronic water treatment systems, incorporating the
        Random Metering System  (hereinafter  referred to as the "RMS System" as
        defined  in clause 1.1  below)  for which the  Patent  Applications  (as
        hereinafter  defined)  have been  filed and wishes to extend the area in
        which  sales  are made to the  United  States  of  America  and  Canada,
        countries  in  which  it  has no  existing  customers  and no  marketing
        experience for the water treatment system incorporating the RMS System.

(B)     NVID has  considerable  experience  in the  marketing  distribution  and
        assembly  of water  treatment  systems  within the  Territories  and has
        established  ABTI as its wholly  owned  subsidiary  to assist it in such
        marketing, distribution and assembly activities

(C)     Because of the  expertise  which NVID and ABTI have in the  distribution
        and  assembly of water  purification  systems,  EHPCI  wishes to appoint
        ABTI, and ABTI wishes to act, as EHPCI's distributor and EHPCI wishes to
        grant  to ABTI a  license  to  assemble  the RMS  System  and any of the
        Products (as  hereinafter  defined) in the  Territories  (as hereinafter
        defined)

(D)     EHPC owns a controlling interest in EHPCl

(E)     EHPCI is currently  discussing a licensing  arrangement with Wallace and
        Tiernan Limited ("USF/W&T") of Priory Works Tunbridge, Kent, TN England,
        which is a wholly  owned  subsidiary  of US Filters Inc ("USF") of 40004
        Cook Street,  Palm Desert,  California,  92211 pursuant to which USF/W&T
        would  also be  granted  by EHPCI a license to market the RMS System and
        the Products  throughout the world and to assemble and  manufacture  the
        RMS  System in the  United  Kingdom  and the  United  States of  America
        utilizing the Products supplied by EHPC.

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(F)     It is  acknowledged  by EHPCI and ABTI that if a license  is  granted to
        USF/W&T  as  aforesaid  EHPCI will  require  the  assistance  of ABTI in
        relation to research  market and product  development in order to enable
        it to perform its obligations to USF/W&T

Operative provisions:

1.      Interpretation

1.1     In this Agreement, unless the context otherwise requires:

`CERTIFICATION' means the UL certification required for electrical standards and
the NSF  standard  50/60  (National  Sanitation  Foundation)  certification  for
commercial and drinking water applications in the United States of America.

`FORCE MAJEURE' means, in relation to either party, any circumstances beyond the
reasonable  control of that party (including,  without  limitation,  any strike,
lock-out or other form of industrial action).

`INVOICE  VALUE'  means the sums  invoiced  by EHPCI to ABTI in  respect  of any
Products less any amounts for transport or insurance included in the invoice.

`GROSS PROFIT' means the difference  between (a) the amount  invoiced by ABTI to
its customers in respect of the RMS System and (b) the aggregate cost to ABTI of
purchasing  the RMS  System  or,  where  EHPCI  has not  supplied  ABTI with the
complete  RMS  System,  the agreed  costs of any  components  supplied  by EHPCI
(together with the import and freight costs and insurance  costs of shipping the
Products to the  Territories)  and/or the costs of components  purchased by ABTI
and freight and shipping  costs and  insurance  costs  together with the cost of
assembling the components to form the complete RMS System

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`INTELLECTUAL  PROPERTY' means any patent, the Patent  Applications,  copyright,
registered design, Trade Mark, Specification,  Manufacturing Know-How, Technical
Know-How or other  industrial or  intellectual  property  right  existing in the
Territories  m  respect  of  the  Products,  and  applications  for  any  of the
foregoing.

`MANUFACTURING  KNOW-HOW' means information  relating to functions pertaining to
the  manufacture  and/or  assembly of the RMS System  and/or any of the Products
(including but not limited to  engineering,  design,  manufacturing,  packaging,
formulating,  testing, raw materials purchasing,  raw materials  specifications,
quality of the RMS System and of the Products)

`PATENT  APPLICATIONS'  together means (a) the pending  application for a patent
made jointly by messrs Bruce Wilden, Randy Reid and Syd Garvey within the United
States of America for electronic  water  treatment  products  incorporating  the
Random Metering System (RMS) (patent  application number 08/913422 filed on 15`h
September 1997) ("the US Patent  Application")  and (b) the pending  application
for a patent  made  jointly by messrs  Bruce  Wilden,  Randy Reid and Syd Garvey
within the Canada for electronic water purification  products  incorporating the
Random  Metering  System (RMS) (patent  application  number  2215370 filed on 15
September 1997.

`PRODUCTS' means the products and/or  components  relating to the RMS System and
listed in Schedule 1 and such other products and/or  components as may be agreed
from time to time between the parties pursuant to clause 2.10

`RESTRICTED  INFORMATION'  means any trade secrets or confidential  knowledge or
any  financial or trading  information  relating to EHPCI,  the RMS System,  the
Products or their assembly,  any other data or information which is disclosed by
EHPCI  whether in writing or orally to ABTI  pursuant to or in  connection  with
this Agreement and whether or not it is expressly  stated to be  confidential or
marked as such and any other  information  which is not in the public  domain at
the date hereof including, without prejudice to the generality of the foregoing,
the  Specification,  the Manufacturing  Know-How,  the Technical Know-How or any
improvement or  development  disclosed to ABTI by EHPCI pursuant to clause 4.11,
any  information  relating to  services,  developments,  inventions,  processes,
plans, financial  information,  customer (prospective customer) lists, forecasts
and projections, and engineering methods

"RAIS  SYSTEM"  means the water  purification  system  incorporating  the random
metering  system  developed by EHPCI and licensed to ABTI in accordance with the
terms of this Agreement.

`THE  SPECIFICATION'  means the manufacturing and performance  specification for
the RMS  System set out in  Schedule  4 hereto as  amended  from time to time by
EHPCI and notified in writing to ABTI

`TECHNICAL  KNOW-HOW'  means all  information  pertaining to the methods of use,
application,  maintenance  or servicing of the RMS System now possessed by EHPCI
and all  improvements to or  developments of such methods  disclosed by EHPCI to
ABTI

`TERRITORIES' means the countries listed in Schedule 3

`TRADE  MARKS'  means:  such trade  marks as are used by EHPCI in relation  to
the  Products  and/or the RMS System at any time during this Agreement

`USF/W&T  AGREEMENT'  means any  agreement or  arrangement  entered into between
EHPCI and  USF/W&T  pursuant  to which EHPCI shall grant to USF/W&T a license to
distribute and/or manufacture the RMS System and/or any of the Products

`USF/W&T  LICENCE FEE' means the fixed sum agreed to be paid by USF/W&T to EHPCI
in  consideration  of EHPCI  granting to USF/W&T a license to distribute  and/or
manufacture  the  RMS  System  and  or  any  of  the  Products  pursuant  to the
USF/W&TUSF/W&T Agreement

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`YEAR OF THIS  AGREEMENT'  means the  period of 12 months  from the date of this
Agreement and each subsequent  consecutive period of 12 months during the period
of this Agreement.

1.2 Any reference in this Agreement to `writing' or cognate expressions includes
a  reference  to  E-mail,   facsimile   transmission  or  comparable   means  of
communication.

1.3 Any  reference  in this  Agreement to any  provision  of a statute  shall be
construed as a reference to that provision as amended, re-enacted or extended at
the relevant time.

1.4     The headings in this Agreement are for convenience only and shall not
affect its interpretation.

2.      Appointment of ABTI

2.1     Subject to clause 12, EHPCI hereby appoints ABTI to act as

(a)     Importer and  distributor  for the resale of the RMS System and of the
Products in the  Territories; and

(b)  Assembler  of the RMS System and the Products in the  Territories  and ABTI
agrees to act in such  capacities,  subject to the terms and  conditions of this
Agreement.

2.2 Subject to and upon the terms and conditions of this Agreement, EHPCI hereby
grants to ABTI a license to use the  Manufacturing  Know-How,  and the Technical
Know-How  (hereinafter  referred to as the `Licensed  Know-How') to enable it to
assemble,  sell,  distribute  and service the RMS System and the Products in the
Territories during the term of this Agreement.

2.3 ABTI shall be entitled to describe  itself as  `Importer,  Distributor,  and
Assembler for the RMS System and the Products,  but it shall not hold itself out
as EHPCI's  agent for sales of the RMS System or any of the Products or as being
entitled to bind EHPCI in any way.

2.4 ABTI may appoint third parties to assist it in the  distribution and sale of
the RMS System and the  Products  Provided  that it shall  notify  EHPCI  before
appointing any such third party,  and it shall use its  reasonable  endeavors to
ensure  that any  agreement  made with such a third  party shall not contain any
provision  which  may be in  breach  of or  give  rise to any  investigation  or
proceedings  under the  Federal  Trade  Commission's  Trade  Regulation  Rule on
Franchising  and Business  Opportunity  Ventures 1979 ( or any  modification  or
amendment  thereof) or any other  regulation rule or law applicable in the State
of Florida regulating franchise operations.

2.5 Without the prior and express  permission of EHPCI,  ABTI is prohibited from
sub licensing the rights granted hereunder pursuant to clause 2.2, including but

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not  limited  to the  use of  the  Manufacturing  Know-How,  and  the  Technical
Know-Howany other entity other than any third party appointed in accordance with
clause 2.4 ABTI shall ensure that all sub-licenses granted by it comply with all
the terms and  conditions of this  Agreement and provided that in the event of a
permitted  sub-license,  all  obligations,  liabilities and duties of ABTI under
this  Agreement  shall remain the primary  responsibility  of ABTI to the intent
that any act or omission of a  permitted  sub-licensee  shall be deemed to be an
act or omission of ABTI.

2.6 ABTI agrees to assemble the RMS System and the Products to the Specification
 .In order that EHPCI may be assured that the  provisions  of this  Agreement are
being  observed ABTI shall allow EHPCI or any servant or agent of EHPCI to enter
upon its premises at any time during  normal  business  hours for the purpose of
inspecting ABTI's method's of assembly of the RMS System and the Products.

2.7 In the event that ABTI fails at any time to assemble  the RMS System  and/or
any of the  Products in  accordance  with the  Specification  then upon  written
notice  from  EHPCI  (such  notice  to be  headed  "Cure  Notice"  and to  refer
specifically  to clause 12.3 and the possible  termination  of this Agreement in
the  event of  failure  to  comply  with the  notice),  ABTI  shall  immediately
discontinue  the,  assembly,  distribution and sale of such  non-conforming  RMS
Systems and/or Products and shall  immediately  take any and all necessary steps
requisite  for meeting the  Specification  in respect of such RMS System  and/or
Products.  If ABTI fails to meet the Specification in respect of such RMS System
and/or  Products  within 30 days next  following  such notice  from EHPCI,  such
failure shall  constitute a material  breach of this  Agreement  and  sufficient
cause for EHPCI to terminate this Agreement.

2.8 ABTI and NVID each hereby agree to indemnify and keep indemnified  EHPCI and
EHPC from and against  all  liabilities,  costs,  claims,  demands and  expenses
arising  from the  assembly  of the RMS System and any of the  Products by ABTI.
ABTI and NVID shall each maintain adequate indemnity  insurance of not less than
$1,000.000  with a  reputable  insurance  company in order to satisfy  any claim
which EHPCI and/or EHPC may make under this clause 2. 8

2.9     EHPCI  undertakes  that it shall refer all inquiries I may receive from
potential  customers for the RMS System in the Territories to ABTI

2.10  Provided  that and for so long as EHPCI  shall not have  entered  into the
USF/W&T Agreement EHPCI undertakes that ABTI shall have a first right of refusal

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to market and/or  distribute any new products which EHPCI may hereafter  develop
for sale in the  Territories  Provided that (a) if ABTI shall not have agreed to
market  and/or  distribute  any of such  new  products  within  21 days of EHPCI
notifying  it of such  new  products,  EHPCI  shall  be  entitled  (directly  or
indirectly)  to  sell,  market  and/or  distribute  such  new  products  in  the
Territories for its own benefit; and (b) EHPCI shall not be obliged to offer any
new  products  to ABTI as  aforesaid  if such new  products  have  been  jointly
developed with a third party and provided that such products do not compete with
the RMS System with respect to its  capacity  (which,  without  prejudice to the
generality of the  foregoing,  shall  include the volume of water  treatable per
hour) or its  effectiveness  (which,  without prejudice to the generality of the
foregoing,  shall include the number and type of viruses and bacteria  which may
be treatable by the RMS System)

2.11 ABTI shall use its reasonable  endeavors to promote the Products within the
Territories  and  shall  at all  times  be just  and  faithful  to  EHPCI in all
transactions  and  matters  relating  to,  or in any  way  connected  with  this
Agreement.

2.12 EBPCI shall use its  reasonable  endeavors to procure that forthwith on the
signing of this Agreement  there shall be issued to ABTI such number of ordinary
shares of (pound) 1 each in the capital of EHPC free from all liens, charges and
encumbrances and together with all rights attaching thereto as shall be equal to
10% of the total  issued share  capital of EHPC as at the date of issue  thereof
and delivery to ABTI of the share certificates therefore.  Such number of shares
as shall be equal to 50% of the total of the  shares to be issued to ABTI  shall
be issued on the execution of this  Agreement and the balance shall be issued on
the first anniversary of the execution of this Agreement.  Such shares are to be
held on such terms as are set out in the Articles of Association of EBPCI

2.13 For the avoidance of doubt,  EHPCI shall not be involved in the  management
or operation of ABTI or its business.

3.      Payments to be made by ABTI and/or NVID

3.1 In consideration  of EHPCI granting ABTI the right to distribute,  assemble,
sell and service the RMS System and the Products  within the Territories for the
term specified in clause 12.1, ABTI shall (or shall procure):

3.1.1   that  forthwith on signing this Agreement NVID shall issue to EBPCI such
        number of  shares of common  stock par value one tenth of a US cent each
        free from all liens,  charges and  encumbrances  and  together  with all
        rights  attaching  thereto as shall increase the number of shares issued
        to EHPCI  hereunder  to such number of shares as shall be equal to 5% of
        the total  number  of  shares  in issue by NVID  after the issue of such
        shares to EHPCI and shall  deliver  to EHPCI the share  certificates  in
        respect thereof.

3.1.2that on the first anniversary of the execution of this Agreement  (provided
     that it shall  still be in full force and  effect and that EBPCI  shall not
     have committed any material  breach thereof which, if capable of remedy (as
     defined  in clause  12.4),  it has  failed  to  remedy  within 30 days of a
     written  notice  giving full  particulars  thereof and  requiring  it to be
     remedied)  NVID shall issue to EHPCI such number of shares of common  stock
     par value US one tenth of a cent  each  free  from all  liens  charges  and
     encumbrances  and  together  with all  rights  attaching  thereto  as shall
     increase the number of shares  issued to EHPCI  hereunder to such number of
     shares as shall be equal to 20% of the  total  number of shares in issue by
     NVID immediately  after the issue of such shares to EHPCI and shall deliver
     to EHPCI the share  certificates in respect  thereof.  EHPCI shall have the
     right to require  NVID to delay the  issues of shares  equal to half of the
     above 20% until  such time as EHPCI  shall  give NVID not less than 21 days
     written  notice  that it  wishes  such  shares  to be  issued  and upon the
     expiration of the said period of 21 days NVID shall  forthwith issue all of
     such shares to EHPC.

3.1.3   that on the grant of the US Patent Application NVID shall issue to EHPCI
        such  number  of  shares  of US one  tenth of a cent  each free from all
        liens,  charges and  encumbrances and together with all rights attaching
        thereto as shall increase EHPCI's share holding in NVID to such number

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        of  shares  as shall be equal to 25% of the  total  number  of shares in
        issue by NVID  immediately  after the issue of such  shares to EBPCI and
        shall deliver to EHPCI the share certificates therefore.

3.2 In the event that a binding agreements made by a third party to acquire more
than 50% of the common stock of NVID then in issue or if a similar percentage is
purchased on the open market by a third party then to the extent that any shares
to be issued to EHPCI in accordance with clause 3.1.2 shall not have been issued
by the date of such offer or purchase they shall  immediately  be issued by NVID
to EHPCI  together  with the  shares to which  EHPCI is  entitled  under  clause
3.1.3.to the extent that they have not already been issued

3.3 The common stock issued by NVID to EHPCI in accordance with clause 3.1 shall
have full voting rights, shall not be of a different class to any other stock in
issue or issued subsequently and will not be on any different terms to any stock
that may be issued  subsequently by NVID for whatever reason. EHPC hereby agrees
to  execute  NVID's  Standard  Subscription  Agreement  in respect of all of the
shares to be  issued by NVID to EHPC in  accordance  with this  Agreement.  NVID
shall not be obliged to issue any shares to EHPC hereunder unless and until EHPC
has entered into a Standard Subscription Agreement in respect thereof.

3.4 NVID  undertakes  that from the date that and for so long as EHPCI  shall be
the holder of not less than 20% of the issued share capital of NVID it shall not
without EHPCI's prior consent (such consent not to be  unreasonably  withheld or
delayed)-.

3.4.1   increase, alter, vary or reduce its authorized or issued share capital;

3.4.2   alter or vary any of the rights attached to any of the shares of the
        Company;

3.4.3   alter  or  vary  any   provision   contained  in  its   Certificate   of
        Incorporation  relating  to  any  rights  or  pre-emption  arising  as a
        consequence of any issue, allotment, sale or transfer or intended issue,
        allotment, sale or transfer of any shares in its capital.

3.5 Prior to the date on which  EHPCI  shall  become the holder of not less than
20% of issued  share  capital of NVID,  NVID shall give EHPCI  reasonable  prior
written notice of the occurrence of any of the events set out in clause 3.4

3.6 ABTI  shall  pay to EHPCI  such  amount  as shall be equal to 371/2 % of the
Gross Profit received by ABTI from purchases of the RMS System by, its customers
Such sum shall be payable m US Dollars  ABTI at the end of every  month in which
payment is made by the customer of ABTI's invoice for such Products

3.7 In consideration of EHPCI granting ABTI the right to assemble the RMS System
in the Territories,  ABTI shall pay EHPCI in addition to the amount specified in
clause  3.1.7 such amount as shall  increase  EHPCI's  share in the Gross Profit
received by ABTI in respect of any sale of the  assembled  RMS System by ABTI to
its customers to 421-~%.  Such additional  amount shall be payable together with
the amount payable pursuant to clause 3.6.

3.8 It is acknowledged by the parties that in consideration of EHPCI agreeing to
grant the licenses to assemble hereunder ABTI paid to EHPCI the sum of US$20,000
on 23rd June 1998 .A further sum of US$10,000  shall be paid by ABTI to EHPCI on
1' September  1998 and the sum of a US$10,000  shall be paid by ABTI to EHPCI on
1' October 1998.

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3.9 ABTI shall keep separate records and accurate accounts of (a) all agreements
entered into with  sub-distributors  in the Territories ;(b) of all sales of the
Products and/ or the RMS System ;(c) and of all payments due there from; and (d)
the  suppliers  of and  the  costs  of  purchasing  any  components  within  the
Territories  and shall  permit the duly  appointed  representatives  of EHPCI to
inspect all such records and accounts and take copies  thereof at all reasonable
times during normal business hours

3.10 ABTI shall,  if so requested by EHPCI within 30 days of the end of any Year
of this  Agreement,  at its own  expense,  provide  a report  from its  external
auditors as to the accuracy of the sums paid by ABTI to EHPCI in accordance with
this clause. If such report shows that there has been an underpayment by ABTI to
EHPCI of any sums due  hereunder,  ABTI shall within 21 days of the date of such
report pay to EBPCI such sum as shall be equal to the amount of the underpayment
provided  that if such  underpayment  shall be equal to 3% or more of the  total
sums payable by ABTI to EHPCI  hereunder,  ABTI shall pay to EHPCI together with
the sum referred to above an additional payment equal to 2% above the base prime
rate from time to time of Chase  Manhattan Bank or the highest rate permitted by
applicable law, whichever is lower, in respect of the amount of the underpayment
calculated from the date when the original payments  comprising the underpayment
were due to EHPCI until payment in full of the underpayment.

3.11.1  If at any time after EHPCI shall have been issued  shares in the capital
        of NVDI in accordance  with clause 3.1 of this  Agreement,  it wishes to
        transfer any or all of such shares it shall give to NVID notice  thereof
        in writing stating the number of shares to be sold and the price thereof
        and NVID  shall  have a period  of 28 days  from the date of the  notice
        ("the  Acceptance  Period") to notify EHPCI in writing that it wishes to
        purchase  all (but not part only) of the shares which are the subject of
        EHPCI's notice.  If NVID shall within the Acceptance  Period give notice
        that it  wishes  to  purchase  the  said  shares  upon  the  same  terms
        completion of the sale of the shares shall take place not earlier than 7
        and not later than 28 days after the date of the Acceptance Notice

3.11 If the offer for the  shares by EHPCI is not  accepted  by NVID  within the
Acceptance  Period  then EHPCI for a period of 6 months  thereafter  shall be at
liberty to transfer  all or any of such of the shares  which were the subject of
its to any persons at a price not being less than the price therefore  specified
in its notice.

3.12 If, in  accordance  with  clause 2.4,  ABTI shall  appoint a third party to
assist it in the  assembly  and/or  distribution,  sale or  servicing of the RMS
System  and/or  any of the  Products  ABTI shall pay to EHPCI in respect of each
such appointment such sum as shall be equal to 40(degree)/a of the aggregate of

(i)     Any fee received by ABTI from such third party by way of  consideration
        for the appointment of such third party; and

(ii)    Any  amounts  received by ABTI in respect of any sales of the RMS System
        and/or a of the Products by such third party

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4.      Supply of the Products and /or the RMS System

4.1 Subject as  provided  in clauses  4.7 and 11 EBPCI shall use its  reasonable
endeavors  to supply the  Products  and/or the RMS System to ABTI in  accordance
with ABTI's orders and directions which are accepted by EHPCI.

4.2 Each  order for the  Products  and/or  the RMS  System  shall  constitute  a
separate  contract,  and any default by EBPCI in relation to one order shall not
entitle ABTI to treat the Agreement as terminated.

4.3 ABTI shall give EHPCI not less than 30 days written  notice of its estimated
purchase  plan of the Products  and/or the RMS System for each month,  and shall
promptly  notify  EBPCI of any  changes in  circumstances  which may affect such
plan.

4.4 Upon  receipt  and  confirmation  of each  order  EBPCI  shall as soon as is
practicable  inform ABTI of EHPCI's estimated delivery date for the shipment and
in any event shall use all reasonable  endeavors to deliver the ordered Products
and/or  RMS  System  within 14 days of  receipt  of the order and at the  latest
within 30 days of receipt of the order, but delivery shall not be of the essence
and accordingly  EBPCI shall have no liability to ABTI, if not withstanding such
endeavors there is any delay in delivery.

4.5.1   the title to any  shipment of the  Products  and/or the RMS System shall
        not pass to, ABTI until EHPCI has received  payment in full of the price
        therefore  and ABTI  shall  hold the  Products  and/or the RMS System as
        trustee  for EBPCI  until  payment  in full of all sums due from ABTI to
        EBPCI on any account whatsoever. ABTI shall execute a security agreement
        and financing  statement in a form acceptable to EBPCI to secure payment
        for the RMS System and any Products hereunder

4.5.2   EBPCI may  appropriate  any payment made to it by ABTI to such  products
        and   accounts  as  it  thinks  fit,   notwithstanding   any   purported
        appropriation by ABTI to the contrary.

4.5.3   before  payment for the RMS System,  the  Products (or any of them) ABTI
        shall  keep  them  fully  insured  and if the RMS  System  or any of the
        Products or any part thereof is lost,  destroyed or damaged,  shall hold
        the proceeds of the insurance for and to the order of EHPCI.

4.5.4   pending payment for the RMS System or any of the Products, ABTI shall to
        such  extent  as may be  practicable  keep  them  separate  and  clearly
        identified as the property of EHPCI.

4.5.5   if ABTI sells (before payment to EBPCI  therefore) the RMS System or any
        of the Products to any third party it shall,  as between  EBPCI and such
        third party sell as principal but as between ABTI and EHPCI,  ABTI shall
        sell as the fiduciary agent of EHPCI.

4.5.6   ABTI shall hold the proceeds of any such sale  separate  and for EHPC:
        account  pending  payment to EBPCI therefore.

4.5.7if payment is overdue in respect of the RMS System or any Products (that is
     to say, payment of the balance of the purchase price therefore has not been
     made  within 60 days  after the expiry of the 30 day  period  specified  in
     clause 5.4) or if an order is made or an  effective  resolution  passed for
     the winding up of ABTI or if an encumbrancer takes possession or a receiver
     is appointed  in respect of any of the assets of ABTI or if a distress,  or
     execution or  sequestration or other process is levied or enforced upon any
     of the assets of ABTI or if ABTI ceases or  threatens  to cease to carry on
     business  or  becomes  unable  to pay its  debts or if ABTI  shall  make an
     arrangement  or  composition  with its  creditors or if any  equivalent  or
     similar event shall arise in relation to ABTI in any jurisdiction  then and
     in any such event EHPCI may (without prejudice to any other right or remedy
     available to it ) enter upon ABTI's premises without notice and recover the
     RMS System  and/or the Products  and as between  EHPCI and ABTI this clause
     shall constitute the authority of ABTI to EHPCI to enter on the premises of
     any other  person  holding the RMS System  and/or the  Products  (or any of
     them) on ABTI's  behalf and on whose  property  the RMS  System  and/or the
     Products may be and to remove the RMS System and/or the Products.

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4.6 Risk of loss of or damage to any  shipments  of the RMS  System  and/or  the
Products  shall pass to ABTI from the time of delivery to the carrier at EHPCI's
premises.

4.7 EHPCI shall not be under any  obligation to continue the  manufacture of the
RMS System and/or all or any of the Products in their  existing  form, and shall
be entitled to make such  alterations  to the  specifications  of the RMS System
and/or the Products as it may think fit.

4.8     ABTI, shall in respect of each order for the RMS System and/or the
Products be, responsible for:

4.8.1   ensuring the accuracy of the order;

4.8.2   providing  EHPCI with any  information  which is  necessary  in order to
        enable  EHPCI to  fulfill  the order and to  comply  with all  labeling,
        marketing and other  applicable  legal  requirements in the Territories,
        and

4.8.3   obtaining all necessary import licenses, certificates of origin (subject
        as  provided  in  clause  5.1)  customs  clearances  or other  requisite
        documents, and paying all applicable customs duties and taxes in respect
        of the  importation  of the RMS  System  and/or the  Products  and their
        resale in the Territories.

4.9.1ABTI shall disclose and deliver to EIHPCI for the exclusive use and benefit
     of EHPCI any  improvements or enhancements  which shall have been developed
     by ABTI or any third party  appointed by ABTI in accordance with clause 2.4
     and will give all  information  and data in its possession and will procure
     that such third party shall give all such  information in its possession as
     to the exact mode of  working,  producing  and using such  improvements  or
     enhancements and also such explanations and instructions to EHPCI as may in
     EHPCI's  view be  reasonably  necessary  to enable  the full and  effectual
     working,  production  or use of the same and will furnish  EI-IPCI with all
     necessary plans, drawings, formulae and models.

4.10.1  ABTI will execute and do all acts matters documents and things necessary
        to enable EHPCI to apply for and obtain  protection for any enhancements
        or improvements in any and or all countries and to vest title thereto in
        EHPCI absolutely

4.10.2  If ABTI  remains  in default  of any  payment  for which it is liable to
        EHPCI on any account  whatsoever,  except  where  EHPCI has  admitted in
        writing to ABTI that it is at fault with respect to any shipment, EIHPCI
        shall be entitled to stop all further  deliveries  irrespective of which
        contract they are to be made under.

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4.11 EHPCI shall notify ABTI of any  enhancement to the RMS System and/or any of
the Products as soon as  practicable  after they have been made and shall supply
such RMS System and/or  enhanced  Products to ABTI  hereunder at no extra charge
unless  EHPCI can  produce  written  evidence  that the cost of  manufacture  or
assembly  thereof  is greater  than the cost of the RMS System or such  Products
prior to the making of the enhancement in which event EHPCI shall be entitled to
charge NA such additional cost.

5.      Payment for the RMS System, the Products and Services

5.1 The RMS System and all  Products to be  supplied  by EHPCI  pursuant to this
Agreement  shall be sold on an ex  works  (Incoterms  1990)  basis  (packed  for
export) and  accordingly  ABTI shall,  in addition to the price (as specified in
Schedule 1 or as may in respect of any new products, as may be notified by EHPCI
to ABTI [upon 30 days written  notice]),  be liable for arranging and paying all
costs of transport and insurance. Save that the cost of the Certifications shall
be borne equally between EHPCI and ABTI.

5.2 Prices may be  increased  by EHPCI to take  account of any  increases in the
costs of any raw materials and/or labour in relation to the Products or any part
thereof.  Price  increases  shall  be  notified  to ABTI  as soon as  reasonably
practicable  Price increases for any reason other than as specified herein shall
be agreed  between the parties and notified by EHPCI to ABTI at least 30 days in
advance.  Any orders  that have been  accepted  by EHPCI and not shipped to ABTI
prior to the  notification of any price increase will not be subject to any such
price increase.

5.3 All  payments  shall be made by ABTI in US dollars by wire  transfer to such
bank account as EHPCI may from time to time notify in writing to ABTI

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5.4  Payment  terms  will be 30% with any order and the  balance  30 days  after
receipt of the RMS System  and/or any Products by ABTI or by such person as ABTI
shall direct in writing.  Interest  shall be payable at the rate of 2% per annum
above  the base  prime  rate from  time to time of Chase  Manhattan  Bank or the
highest  permitted  rate  permitted by applicable  law,  whichever is lower,  in
respect  of any  amount  not paid 60 days  after  the due date  therefore  until
payment in full thereof (whether before or after judgment)

5.5 Special  prices and payment terms will be considered for Products to be used
for promotional/display purposes or for trial use. These terms will be agreed on
an order-by-order basis.

5.6 ABTI shall make all  payments  under this  Agreement  without any  deduction
other than such  amount  (if any) as is  required  to deduct by law.  If ABTI is
required to make any such deductions,  it shall do all things in its power which
may be reasonably  necessary to enable or assist EHPCI to claim  exemption there
from under any double  taxation or similar  agreement from time to time in force
and shall give EHPCI from time to time proper  evidence as to the  deduction and
payment over of the tax or sums withheld.

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6.      Marketing of the RMS System and the Products

6.1 ABTI shall use its commercially  reasonable endeavors to promote the sale of
the  Products  throughout  the  Territories  and EHPCI  shall  use  commercially
reasonable endeavors to support ABTI in that regard.

6.2 ABTI shall be entitled to promote and market the RMS System and the Products
in the  Territories  in such manner as it may think fit  provided  that (i) ABTI
shall not be entitled  directly or  indirectly  to sell the RMS System or any of
the  Products  outside the  Territories;  and (ii) ABTI shall not supply the RMS
System  or any  of the  Products  to any  third  party  which  it  knows  or has
reasonable  cause to  believe  is likely to  re-sell  the RMS System or any such
Products (or any of them) outside the Territories.

6.3 In connection  with the promotion and marketing of the Products  (other than
those assembled by ABTI pursuant to this Agreement) ABTI shall.

6.3.1   make clear,  in all dealings with customers and  prospective  customers,
        that it is acting as a distributor and assembler of the Products and not
        as the agent of EHPCI;

6.3.2   comply with all legal  requirements  from time to time in force
relating to the storage and sale of the Products;

6.3.3   from time to time  consult with EHPCI's  representatives for the purpose
of assessing  the state of the market in the Territories;

6.3.4   provide after -sales  support  services for customers in relation to the
        Products as it deems  necessary  but which shall be sufficient to ensure
        that  the  customers'  Products  shall  be  maintained  in a  reasonable
        condition

7.      Support and Training

7.1 EHPCI  shall,  (a) from time to time,  free of charge,  provide to ABTI with
such  samples,  catalogues,  brochures,  video tapes and up to date  information
concerning the Products as ABTI may  reasonably  require in order to assist ABTI
with the sale of the  Products in the  Territories,  and EHPCI shall answer with
reasonable   promptness  any  non-routine  technical  inquiries  concerning  the
Products  which are made by ABTI; and (b) supply free of charge to ABTI with the
first six complete RMS Systems supplied  hereunder a spare controller and set of
anodes.

7.2 During the term of this Agreement, ABTI shall be entitled to send to EHPCI's
premises  (at such times as may be agreed and for a period  not  exceeding  five
working days) employees of ABTI for training by EHPCI in matters relating to the
provision of after-sales support services for the RMS System and the Products.

7.3 The services to be provided by EIHPCI  pursuant to clauses 7.1 and 7.2 shall
be free of charge,  but ABTI shall  remain  liable  for all  salaries  and other
employment  costs of traveling,  accommodation  and other  expenses  incurred by
employees of ABTI who are sent to EHPCI's premises.

7.4 ABTI will set up its own training  facility to train its employees  within 6
months of the date of this Agreement and thereafter EHPCI will only provide such
services entailed in clause 7.2 as an emergency back up to ABTI's service.

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7.5 EHPCI shall from time to time on reasonable request from ABTI make available
to ABTI in the Territories at ABTI's expense such relevant  personnel,  as shall
in EHPCI's  opinion be ABTI  necessary to assist ABTI in  installing  any of the
Products.

7.6 In any case where  employees of either party visit the premises of the other
for the purpose of this Agreement, the party whose employees are visiting shall:

7.6.1  procure that each such employee  complies  with all security,  safety and
other  regulations which apply to or are in force at the other party's premises;
and

7.6.2  indemnify  the other party against any direct  reasonable or  foreseeable
damage to  property of the other party which is caused by any act or omission of
any such employee at the other party's premises.

7.7.1  EHPCI  warrants  the ABTI that the RMS System and all  Products  supplied
hereunder  will be of  merchantable  quality and the RMS System will comply with
the  Specification  and to the extent  that there  shall be a breach by EEPCI of
such  warranty  in  respect of any anodes or  controllers  comprised  in the RMS
System,  so that such  anodes  or  controllers  shall be  defective  in  design,
materials or workmanship,  EIIPCI shall at its option, replace or repair, or if,
through  circumstances beyond its control repair or replacement is not possible,
then EHPCI shall refund the proportionate amount of the purchase price, or in so
far as such purchase price has not yet been paid, give credit  accordingly,  any
such  defective  controllers or anodes  provided  always that EHPCI shall not be
liable for any claim hereunder unless:

 7.7.1.1Written  notice of the  defect is  received  by EBPCI at its  registered
        office  within 24 months of receipt of the  relevant RMS System by ABTI,
        in the case of controllers and 12 months of receipt of the relevant part
        of the RMS System by ABTI in the case of anodes; and

7.7.1.2 The anodes or  controllers  in question  have been returned to EHPCI (at
        EHPCI's expense if the anodes or controllers  are upon inspection  found
        to be defective, otherwise at ABTI's expense) or at its option have been
        made available for inspection by EBPCI at ABTI's premises; and

7.7.1.3.  All terms for payment by ABTI have been strictly complied with.

7.8 EHPCI shall not give any warranty in respect of any components of any of the
RMS System or any of the Products other than those specified in clause 7.7.1 and
in clause  10.1,  but shall to such extent as it shall be in its power to do so,
shall pass on to ABTI the benefit of any manufacturer's  warranty to which it is
entitled in relation to such components

7.9 EBPCI does not give any  warranty  and shall not be liable in respect of any
Products  comprised in the RMS System  which have been  assembled by ABTI or any
other  third  party on ABTI's  behalf and ABTI shall  indemnify  refund and hold
harmless and keep  indemnified  EBPCI from and against all costs claims expenses
and liabilities arising as a result of the assembly of any Products comprised in
the RMS System by ABTI or on its behalf.

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<PAGE>

7.10 The warranties  given in clause 7.7.1 above and in clause 10.1 are given in
lieu of all other  warranties  whether express or implied arising by Common Law,
Statute,  Custom or  Trade,  course  of  dealing  or  otherwise,  including  any
warranties of  merchantability or fitness and all such conditions and warranties
are to the extent permitted by law hereby excluded.

7.11 Save as aforesaid  EHPCI will accept no  responsibility  for any defects in
any of the Products  howsoever  caused,  and in  particular,  even in respect of
defects for which EHPCl may have accepted  liability as aforesaid EHPCI will not
in any  circumstances  be liable for any incidental or  consequential  losses or
damages  whatsoever,  including  (without  prejudice  to the  generality  of the
foregoing) loss of profits, loss of contracts,  damage to ABTI's property or the
property of any third party.

7. 11 For the avoidance of doubt EHPCI shall not be excluded from  liability for
death or personal injury  resulting wholly or in part from its own negligence or
that of its servants or agents.

7.12 Notwithstanding  clauses 7.7, 7.8, 7.9, 7.10 and 7.11 EHPCI's liability for
any one claim or for the total of all claims arising from any one act of default
(whether the claim arises from EHPCI's negligence or otherwise) shall not exceed
the purchase price of the Product(s) in respect of which the claim arises or the
claims arise (as the case may be).

7.13 All  recommendations  and advice given by EBPCI to ABTI or contained in any
of EHPCI's  publications  regarding use, performance  characteristics,  storage,
application  or use of  the  Products  are  given  in  good  faith  but  without
acceptance  of  liability  on the part of EHPCI  except in the event of fraud or
intentional misrepresentation.

7.14 In order to assist  ABTI in the  provision  of  technical  services  to its
customers it shall  forthwith  appoint Mr. Randy Reid as a Technical  Consultant
(on such terms as shall be agreed  between them) and in order to assist EHPCI in
product  research it shall  forthwith  appoint Mr. Robert Edelson as a Technical
Consultant (on such terms as shall be agreed between them). Either EHPCI or ABTI
may  appoint  any other  person  other than the person  mentioned  above for the
purposes herein stated.

8.      Intellectual Property and Know-How

8.1 ABTI and NVID  acknowledge  that all of the  copyrights,  the  Trade  Marks,
patents,  the Patent  Applications and any other pending patent applications and
other Intellectual Property rights used or embodied in or on connection with the
Products and the RMS System including documentation and manuals relating thereto
is and shall  remain the  property of EHPCI or of such  persons as shall  permit
EHPCI to use any such  Intellectual  Property  and  neither  ABTI nor NVID shall
during  or at any  time  after  the  termination  of this  Agreement  in any way
question  or dispute  the  ownership  or any such  rights by EHPCI or such other
persons.

8.2 ABTI  shall not use any of the  Trade  Marks or any  trade  name,  corporate
slogan,  goodwill or product  description in any advertising  copy,  promotional
material,  signs or other  written or printed  material  except as  specifically
authorized in writing in advance b EHPCI.

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8.3 ABTI shall  promptly  notify  EHPCI of any actual,  threatened  or suspected
infringement in the Territory of any intellectual  Property of EHPCI which comes
to ABTI's  notice,  and of any claim by any third  party so coming to its notice
that the importation of the Products and/or the RMS System into the Territories,
or their sale therein,  infringes any rights of any other person, and ABTI shall
at the  request  and  expense  of EHPCI do all such  things as my be  reasonably
required to assist EHPCI in taking or resisting any  proceedings  in relation to
any such infringement or claim.

8.5 Neither ABTI nor NVID shall  without the written  permission of EHPCI during
or after the  termination of this  Agreement use or adopt any name,  trade name,
trading style or commercial designation that includes or is similar to or may be
mistaken  for the  whole  or any part of any of the  Trade  Marks,  trade  name,
trading  style or commercial  designation  used by EHPCI and ABTI and NVID shall
procure  that none of the third  parties  appointed by ABTI in  accordance  with
clause 2.4 shall during or after the  termination of this Agreement use or adopt
any name, trade name,  trading style or commercial  designation that includes or
is similar to or may be  mistaken  for the whole or any part of any of the Trade
Marks, trade name, trading style or commercial designation used by EHPCI

8.6  Following  the  termination  or expiry of this  Agreement,  EHPCI  shall be
entitled to use and authorize  others in the Territories to use labels and other
items  of  identification  used by  ABTI in  connection  with  the  manufacture,
assembly, distribution, advertising and sale of the RMS System and the Products.

8.7 EHPCI  shall  furnish  to ABTI such  Manufacturing  Know-How  and  Technical
Know-How as EHPCI shall (acting  reasonably)  consider to be necessary to assist
ABTI in the assembly of the RMS System and the Products.

8.8 All  information  disclosed to ABTI by EHPCI relating to the assembly of the
RMS System or any of the Products in the course of development of the RMS System
or of any new product shall be deemed for all purposes to be Manufacturing  Know
How.

9.      Confidentiality and Non-Competition

9.1     ABTI shall at all times during the continuance of this Agreement and
after its termination:

9.1.1   use its best  endeavors to keep all  Restricted  Information
confidential  and  accordingly  not to disclose any restricted information to
any other person; and

9.1.2   not use any  Restricted  Information  for any  purpose  other  than  the
        performance of its  obligations or the exercise of its rights under this
        Agreement.

9.2     Any Restricted Information may be disclosed by ABTI to:

9.2.1   any governmental or other authority or regulatory body with a request
for confidential treatment; or

9.2.2.  Any employees,  agents,  or third parties  appointed in accordance  with
        clause  2.4 of ABTI  or of any of the  aforementioned  persons,  to such
        extent only as is necessary fort use contemplated by this Agreement,  or
        as is required by law Provided that ABTI first procures the execution by
        each of such aforementioned persons of a confidentiality  undertaking in
        form and substance  satisfactory  to EHPCI and to which EHPCI shall be a
        party having the right to enforce such undertaking

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9.3 ABTI  shall  take all such  steps as may be  necessary  to  ensure  that its
employees,  agents, and the third parties referred to in clause 9.2 shall comply
with their aforesaid  confidentiality  undertakings  both during and after their
employment or the termination or expiry of their agreements or arrangements with
ABTI.

9.4 Any Restricted  Information may be used by ABT for any purpose, or disclosed
by ABTI to any other person, to the extent only that:

9.4.1    it is at the date hereof, or thereafter becomes, public knowledge
through no fault of ABTI: or

9.4.2  it can be  shown by ABTI to have  been  known  to it  prior to its  being
disclosed by EHPCI to ABTI.

9.5 Save as may be required for the proper  performance of this Agreement,  ABTI
shall not at any time during the  continuance  of this Agreement or for a period
of 6 months from the date on which this Agreement shall terminate for any reason
do or permit any of the following without the prior written consent of EHPCI:

9.5.1undertake or carry on either alone or in  partnership  or be  interested or
     concerned directly or indirectly in any capacity whatsoever (otherwise than
     as a holder of not more than 3% in nominal  value of the  issued  shares of
     any  company  whose  shares  are quoted or dealt in on a  recognized  Stock
     Exchange) in any trade or business  within the  Territories  involving  the
     manufacture,  assembly, sale, marketing or promotion of the Products or any
     products which are substantially  similar to and in competition with any of
     the Products  ("Competing  Products")  or any system of water  purification
     which is  substantially  similar to and in competition  with the RMS System
     (as detailed in the Patent  Application)  without the prior written consent
     of EHPCI

9.5.2   directly or indirectly assemble, sell or distribute the RMS System
outside of the Territories;

9.5.3   employ,  solicit or entice away or endeavor to employ, solicit or entice
away any employee of EHPCI; or

9.5.4   cause or permit any person, firm or company directly or indirectly under
        its control to do any of the foregoing acts or things.

9.6 If ABTI,  uses,  assembles,  services,  sells,  distributes  or promotes any
Competing  Product  EHPCI  may at any time give 30 days  written  notice to ABTI
requesting  ABTI to cease all use, sale,  assembly,  distribution,  servicing or
promotion of the said Competing  Product  whether or not EHPCI has already given
such notice  regarding the said or any other  Competing  Product on any previous
occasion or occasions

9.7 If after the expiry of any notice given pursuant to clause 9.6 above ABTI at
any time  uses,  sells,  assembles,  services  ,  distributes  or  promotes  the
Competing  Product specified in such notice (for so long as ABTI shall do so and
until the expiry of 180 days notice in writing  from ABTI to EHPCI that ABTI has
ceased to do so) EHPCI shall have the right at any time without  further  notice
to terminate this Agreement without compensation to ABTI.

9.8 Each  undertaking  contained  in  Clause  9.5  shall  be read and  construed
independently  of the other covenants  therein  contained so that if one or more
should be held to be invalid as an  unreasonable  restraint  of trade or for any
other  reason  whatsoever  then the  remaining  covenants  shall be valid to the
extent that they are not held to be so invalid.

9.9 Whilst the covenants  contained in Clause 9.5 are  considered by the parties
to be reasonable in all the circumstances, if one or more should be held invalid
as an  unreasonable  restraint of trade or for any other reason  whatsoever  but
would have been held valid if part of the wording  thereof  had been  deleted or
the period thereof reduced or the range of activities or area dealt with thereby
reduced in scope, the said covenants shall apply with such  modifications as may
be necessary to make them valid and effective.

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9.10 Any  restriction  contained  in this  Agreement  by  virtue  of which  this
Agreement is subject to registration  under the Restrictive  Trade Practices Act
1976 shall come into effect on the day following the day on which particulars of
this  Agreement  have been  furnished  to the Office of Fair Trading (or on such
other date as may be provided for in relation to any such  restriction)  and the
parties hereto agree to furnish such particulars  within 3 months of the date of
this Agreement.

10.     Warranties

        EHPCI warrants to ABTI that:

10.1 it is not aware of any rights of any third party in the  Territories  which
would  or  might  render  the  sale of the RMS  System,  or any of the  Products
unlawful.

10.2 ABTI and NVID hereby  jointly and severally  warrant and undertake to EHPCI
that:

10.2.1  the  information  relating to the share  capital of NVID and ABTI set
out in Schedule  [5] hereto is accurate and complete;

10.2.2  all returns, particulars, resolutions and documents required to be filed
        by NVID and ABTI with any governmental or regulatory authority have been
        duly filed and were correct

10.2.3  the  [audited]  accounts of NVDI for the period ended 31"t December 1997
        ("the  Last  Accounts  Date"),  a copy  of  which  are  annexed  to this
        Agreement  give  a  true  and  fair  view  of  the  assets,  liabilities
        (including   contingent,   unquantified  or  disputed  liabilities)  and
        commitments  of NVID at the date  thereof  and its profits or losses for
        the financial period ended on that date

10.2.4  all returns, notifications,  computations and payments which should have
        been made or given by ABTI and/or NVID for a taxation  purpose were made
        or given within the requisite  periods and were up-to-date,  correct and
        on a proper basis;  and none of them is, or is likely to be, the subject
        of dispute with any Revenue or other taxation authority

10.2.5  NVID  and  none of its  subsidiaries,  including  ABTI,  is  engaged  in
        litigation or arbitration proceedings;  there are no proceedings pending
        or (save  for  potential  proceedings  by  former  shareholders  already
        disclosed  to EHPCI)  threatened  either by or against  ABTI or NVID and
        5there is nothing which is likely to give rise to proceedings

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10.2.6  NVID and ABTI have taken all  corporate  and other  action  necessary to
        authorize each of them to enter into and perform this Agreement

10.2.7  There are no material facts or  circumstances in relation to the assets,
        business or financial condition of NVID or ABTI which has not been fully
        and fairly  disclosed to EBPCI and which if disclosed  might  reasonably
        have been  expected  to affect the  decision  of EHPC to enter into this
        Agreement

10.2.8  all  information  given by NVID,  its  officers  and  employees to EHPCI
        and/or EHPC relating to the  business,  activities,  affairs,  assets or
        liabilities of NVID and ABTI was and is accurate and complete

11.     Force Majeure

11.1 If either party is affected by Force Majeure it shall forthwith  notify the
other party of the nature and extent thereof.

11.2  Neither  party  shall be  deemed to be in  breach  of this  Agreement,  or
otherwise be liable to the other, by reason of any delay in the performance,  or
non-performance,  of any of its  obligations  hereunder  to the extent that such
delay or  non-performance  is due to any Force  Majeure of which it has notified
the  other  party;  and the time for  performance  of that  obligation  shall be
extended accordingly.

11.3 If the Force Majeure in question prevails for a continuous period in excess
of six months,  the parties shall enter into a bona fide  discussion with a view
to alleviating its effects, or to agreeing upon such alternative arrangements as
may be fair and reasonable.

12.     Duration and Termination

12.1 This  Agreement  shall come into force on the date hereof  and,  subject as
provided in clauses 2.7, 9.7,  12.2,12.3,  12.5 ,12.6 and 12.8 shall continue in
force for an  initial  period of 2 years and  shall,  subject  to the  aforesaid
clauses and neither  party  having  served upon the other not less than 6 months
written  notice of  termination  expiring  at the end of such two  years  period
continue  thereafter  for  successive  periods  of two  years  unless  or  until
terminated by either party giving to the other not less than six months  written
notice of termination expiring at the end of any successive two year period.

12.2 Without  prejudice  to any other right to which it may be  entitled,  EHPCI
shall be,  entitled at the end of any two year period of this Agreement to renew
the  Agreement  for such period as will extend the Agreement to a date ten years
after the date hereof and the Agreement shall subject to clauses 2.7, 9.7, 12.3,
12.5, 12.6 and 12.8 continue thereafter for successive periods of 10 years.

12.3    EHPCI or ABTI shall be entitled  forthwith to  terminate  this
Agreement  by written  notice to the other if

12.3.1 that other party  commits a material  breach of any of the  provisions of
this Agreement  and, in the case of a breach capable of remedy,  fails to remedy
the  same  within  30  days  after  receipt  of a  written  notice  giving  full
particulars of the breach and requiring it to be remedied;

                                      104
<PAGE>

12.3.2  an encumbrancer  takes possession or a receiver is appointed over any of
        the property or assets of that other party;

12.3.3  that other party makes any  voluntary  agreement  with its  creditors or
        become subject to an administration or examination order;

12.3.4  that other  party goes into  liquidation  (except  for the  purposes  of
        amalgamation  or  reconstruction  and in such  manner  that the  company
        resulting  there  from  effectively  agrees to be bound by or assume the
        obligations imposed on that other party under this Agreement);

12.3.5  anything  analogous  to  any  of  the  foregoing  under  the  law of any
        jurisdiction  including  bankruptcy  under US law, occurs in relation to
        that other party; or

12.3.6   that other party ceases, to carry on business.

12.4 For the purposes of clauses 3.1.2 and 12.3.1 , a breach shall be considered
capable  of remedy  if the party in breach  can  comply  with the  provision  in
question in all respects other than as to the time of performance (provided that
time of performance is not of the essence).

12.5 If at any time control  (being the power of a person to secure (a) by means
of the holding of shares or the  possession of voting power in or in relation to
ABTI;  or  (b~  by  virtue  of  any  powers  conferred  by  the  Certificate  of
Incorporation  or other  document  regulating  ABTI) of ABTI is  acquired by any
person or group of  connected  persons  (as  defined in  Section  839 Income and
Corporation  Taxes  Act  1988) not  having  control  of ABTI at the date of this
Agreement  or there  shall be a change in the  management  of ABTI,  ABTI  shall
forthwith  give  written  notice to EHPCI  identifying  that  person or group of
connected persons and/ or the change in management  personnel and EHPCI shall be
entitled,  by giving not less than [7] days'  written  notice to ABTI  within 21
days after the notice from ABTI was given, to terminate this Agreement.

12.6 If in any Year of this  Agreement  the  aggregate  Invoice value of the RMS
System and the Products  ordered by ABTI from EHPCI falls short of the aggregate
Invoice  Value shown  opposite  that year of this  Agreement  in Schedule 2 then
unless ABTI pays an amount equal to the  shortfall to EHPCI within 90 days after
the end of that Year of this  Agreement,  EHPCI  shall be entitled by giving not
less than 90 days' written notice to ABTI within the end of the aforesaid period
of 90 days to terminate this Agreement.

12.7 The figures in Schedule 2 shall be reviewed  with effect from the first day
of each  Year of this  Agreement  (other  than the  first)  and if upon any such
review  there  shall have been any  increase  or decrease in the index of retail
prices in respect of all items shown in the US City Average Consumer Price Index
For All Urban  Consumers  for all Items in  relation  to the index  figure  last
published  before the date of this Agreement such figures shall for that Year of
this  Agreement  be  increased  or  decreased  (as the case may be ) in the same
proportion

                                      105
<PAGE>

12.8 EBPCI hereby  undertakes to grant to ABTI within 60 days of the date hereof
a sub-license in such form as shall  thereafter be agreed between EBPCI and ABTI
to use market,  assemble,  distribute  and sell the electronic  water  treatment
system  incorporating  the Random Metering System which is the subject of the US
Patent Application.

12.9 Any waiver by either party of a breach of any  provision of this  Agreement
shall not be considered as a waiver of any subsequent  breach of the same or any
other provision thereof.

12.10 The rights to  terminate  this  Agreement  given by this  clause  shall be
without prejudice to any other right or remedy of either party in respect of the
breach concerned (if any) or any other breach.

13      Consequences of Termination

13.1 In the event of  termination,  EBPCI shall be entitled (but not obliged) to
repurchase all or any part of stocks of the Products  and/or the RMS System then
held by ABTI at their  invoice  value or the  value at which  they  stand in the
books of ABTI, whichever is the lower provided that:

13.1.1    EBPCI shall be responsible for arranging and for the cost of transport
and insurance, and

13.1.2  ABTI may sell stocks for which it has  accepted  orders  from  customers
        prior to the date of termination, or in respect of which EBPCI does not,
        by  written  notice  given  to ABTI  within  7 days  after  the  date of
        termination exercise its right of repurchase, and for those purposes and
        to that extent this Agreement shall continue in full force and effect;

13.1.2  ABTI shall at its own expense  within 30 days send to EBPCI or otherwise
        dispose of in  accordance  with  EHPCI's  directions  all samples of the
        Products and any advertising,  promotional or sales material relating to
        the Products then in ABTI's possession;

13.3  Outstanding  unpaid invoices  rendered by EBPCI in respect of the Products
and/or the RMS  System  shall  become  immediately  due and  payable by ABTI and
invoices  in  respect  of  Products  and/or  the RMS  System  ordered  prior  to
termination  but for which an invoice  has not been  submitted  shall be payable
immediately upon submission of the invoice;

13.4 All sums due under  clauses 3.6, 3.7 and 3.8 shall become  immediately  due
and payable.

13.5  ABTI  shall  have no claim  against  EBPCI  for  compensation  for loss of
distribution rights, loss of goodwill or any similar loss; and

13.6 EBPCI  would be  entitled  (but not  obliged) to purchase or to procure the
purchase of the shares issued by it to ABTI pursuant to clause 2.8 for their par
value.  The  purchase  of the shares  pursuant  to the  exercise by EBPCI of its
entitlement  shall take place 7 days after the date of service on ABTI of notice
of exercise  of such  entitlement  (or on the next  succeeding  business  day if
completion  would  otherwise fall on a  non-business  day). On completion of the
purchase of the shares as aforesaid

                                      106
<PAGE>

13.6.1  ABTI shall deliver to EHPC or its nominee:

13.6.1.1       duly executed transfers of the shares accompanied by the relevant
share certificates; and/or

13.6.1.2       such other deeds and documents as may be necessary to transfer to
               EHPC or its nominee the unencumbered  beneficial ownership of the
               shares.

13.6.2 on completion as aforesaid EHPC shall deliver or procure delivery to ABTI
of a banker's draft in respect of the total purchase price of the shares.

13.7 ABTI shall cease using any  manufacturing  Know-How,  or Technical Know How
which it is still required to keep confidential

13.8 Subject as otherwise provided herein and to any rights or obligations which
have  accrued  prior to  termination,  neither  party  shall  have  any  further
obligation to the other under this Agreement.

13.9 This Agreement cannot be used as collateral by any party to secure any loan
or other borrowing from any bank of any other financial institution.

14.     Nature of Agreement

14.1 A waiver by any  party of any  breach of any of the  terms,  provisions  or
conditions  of this  Agreement  or the  acquiescence  of such  party  in any act
(whether of commission or omission) which but for such  acquiescence  would be a
breach of the  aforesaid  shall not  constitute  a general  waiver of such term,
provision of condition or of any subsequent act contrary thereto.

14.2  Nothing  in this  Agreement  shall  create,  or be  deemed  to  create,  a
partnership or  relationship of principal and agent, of franchisor or franchisee
or of employer  and employee  between  parties and ABTI shall be deemed to be an
independent contractor.

14.3 This  Agreement  contains  the entire  agreement  between the parties  with
respect to the subject matter  thereof,  supersedes all previous  agreements and
understandings between the parties with respect thereto, and may not be modified
except by an instrument in writing signed by the duly authorized  representative
of the parties.

14.4 This Agreement shall not be assignable in whole or in part by either of the
parties hereto save with the prior written consent of the other.

14.5 Each of the  provisions  of this  Agreement  are separate and severable and
enforceable  accordingly and if at any time a provision is adjudged by any court
of competent  jurisdiction to be void or unenforceable,  the validity,  legality
and  enforceability  of the remaining  provisions hereof shall not in any way be
affected or impaired thereby.

                                      107
<PAGE>

15.     NVID's Obligations

15.1 In  consideration of EHPCI agreeing to enter into this Agreement with ABTI,
NVID hereby  unconditionally  and  irrevocably  undertakes to and covenants with
EHPCI (i) that ABTI will  perform and observe  all of its  obligations  to EHPCI
hereunder,  (ii) to guarantee  that ABTI will pay all the sums due  hereunder on
the due dates for payment  thereof (iii) to pay upon written  demand any sum due
to EHPCI by ABTI and unpaid  (including  without  prejudice to the generality of
the foregoing any interest thereon) and (iv) issue shares to EHPCI in accordance
with the provisions of clause 3.1.

15.2 NVID's liability under this clause shall be computed on the basis that this
Agreement  is fully  binding  and  enforceable  against  ABTI  and  that  NVID's
liability  shall not in any way be  diminished  discharged  or  affected  by the
invalidity or enforceability of this Agreement or by:

        i.     the granting of time or indulgence to NVID or ABTI;

        ii.    the affecting of any release or compromise with ABTI or any
               agreement not to sue ABTI;  or

        iii    the variation of any term or part term of this Agreement.

15.3 This guarantee shall  constitute an independent  and primary  obligation on
NVID and shall be a continuing  guarantee and  indemnity  and shall  continue in
full force and effect until all  liabilities and moneys owing or payable by ABTI
to EHPCI  hereunder  shall  have been  paid,  discharged  or  satisfied  in full
notwithstanding any insolvency of ABTI or any change in the status of ABTI.

6.      EHPCI's Obligations

16.1 In  consideration of ABTI agreeing to enter into this Agreement with EHPCI,
EHPC hereby  unconditionally  and  irrevocably  undertakes to and covenants with
ABTI (i) that EHPCI will  perform and observe  all of its  obligations  to EHPCI
hereunder.

16.2  EHPCI's  liability  under this clause  shall be computed on the basis that
this Agreement is fully binding and  enforceable  against EHPCI and that EHPCI's
liability  shall not in any way be  diminished  discharged  or  affected  by the
invalidity or enforceability of this Agreement or by:

        i.     the granting of time or indulgence to EHPC or EHPCI;

        ii.    the affecting of any release or compromise with EHPCI or any
               agreement not to sue EHPCI; or

        iii    the variation of any term or part term of this Agreement.

16.3 This guarantee shall  constitute an independent  and primary  obligation on
EHPC and shall be a continuing  guarantee and  indemnity  and shall  continue in
full force and effect until all liabilities and moneys owing or payable by EHPCI
to ABTI  hereunder  shall  have  been  paid,  discharged  or  satisfied  in full
notwithstanding any insolvency of EHPCI or any change in the status of EHPCI.

                                      108
<PAGE>

17.     Governing Law

This  Agreement  shall  be  governed  by  and  constructed  in all  respects  in
accordance  with  English  Law  without  giving  effect to its  conflict of laws
principles and each party hereby submits to the  non-exclusive  jurisdiction  of
the English Courts.

18.     Arbitration

Any dispute arising out of or in connection  with this Agreement,  including any
questions regarding its existence, validity or termination, shall be referred to
and  finally  resolved  by  arbitration  under the Rules of the London  Court of
International  Arbitration,  which  Rules  are  deemed  to  be  incorporated  by
reference into this clause. The tribunal shall consist of two arbitrators,  with
each of ABTI and EHPCI being able to nominate one arbitrator,  and they mutually
appointing  the third  arbitrator  the  place of  arbitration  shall be  London,
England and the  arbitrators  shall apply the law set forth in clause 17 of this
Agreement.  Any award of such  arbitration  tribunal  shall be final and binding
upon the parties to this Agreement and may be enforced in any court of competent
jurisdiction  Notwithstanding the foregoing  provisions of this clause 18, EHPCI
shall  be  entitled  to  seek  injunctive  relief  in  any  court  of  competent
jurisdiction to protect its Intellectual Property and Confidential Information

19      Proposed Licensing Agreement with US Filters/Wallace and Tiernan

19.1 If during  the  initial  two year  period  of this  Agreement  the  USF/W&T
Agreement is entered into by EHPCI ABTI hereby agrees to undertake such research
market and product development to assist EHPCI in the performance of the USF/W&T
Agreement as EHPCI shall  request from time to time. In  consideration  of these
services  ABTI shall be  entitled to (a) such sum as shall be equal to one fifth
of the  USF/W&T  License  Fee  received  by EHPCI  Provided  that If the USF/W&T
Agreement  is entered  into by EHPCI  prior to 1"  September  1998 EHPC shall be
entitled to deduct from such sum any amount payable by ABTI to EHPCI pursuant to
clause  3. 8 ; and (b) such sum as  shall  be  equal  to 50% of all  other  fees
received by EHPCI from USF/W&T  under the USF/W&T  Agreement in respect of sales
of the RMS System and/or any Products by USF/W&T in the Territories  pursuant to
the USF/W&T Agreement and received by EHPCI

19.2 For the avoidance of doubt,  EHPCI hereby agrees that the USF/W&T agreement
would not operate to prevent ABTI from  selling  Products and /or the RMS System
in the Territories, and ABTI does not object to EHPCI entering into an agreement
with USF/W&T

19.3 If the USF/W&T  Agreement  is entered  into by EHPCI during the initial two
year period of this Agreement it will not during the continuance thereof seek to
appoint  another  person,  firm or company to act as its distributor for the RMS
System and/or the Products  within the  Territories  other than USF/W&T and ABTI

                                      109
<PAGE>

19.4 If the USF/W&T  Agreement is not entered into by EHPCI within the first two
years of this Agreement  EHPCI will not appoint any other person firm or company
to act as its  distributor  for  the  RMS  System  and/or  the  Products  in the
Territories during the term hereof

19.5 If the USF/W&T  Agreement  is entered into by EHPCI the sum payable by ABTI
to EHPCI in  accordance  with  clause 3.6 will not be  payable  if the  Products
purchased by it to enable it to assemble  and/or  manufacture the RMS System are
purchased from USF/W&T.

20.     Notices and Service

20.1 Any notice or other information required or authorized by this Agreement to
be given by any party to any other  party is to be given  personally  or sent by
prepaid  recorded  delivery   international  airmail  or  overnight  courier  or
facsimile to the other party at the address stated in this Agreement or the last
known  address of the party (if sent by  facsimile,  a confirming  copy shall be
posted to the address  stated in this Agreement or the last known address of the
party)

20.2    Receipt  of any  notice  or other information  given  by  fax  pursuan
to  clause  20.  is to be acknowledged by fax.

20.3 Any notice or other  information  sent by fax  transmission  or  comparable
means of  communication  shall be  deemed  to have been duly sent on the date of
transmission,  provided  that a  confirming  copy  thereof  is sent by  recorded
delivery  international  airmail or overnight  courier to the other party at the
addressed referred to in clause 17.1 within 24 hours after transmission.

SIGNED for and on behalf of EHPCI LIMITED By:_________________

Title:______________

Signed for and on behalf of EHPC LIMITED By:___________________________

Title:________________________

                                      110
<PAGE>

SIGNED    for    an    on    behalf    of    AQUA    BIO    TECHONOLOGIES    INC
By:_________________________

Title:_____________________

SIGNED for an on behalf of
NVID INTERABTITIONABTIL INC

By: _______________________

Title:_____________________

                                      111
<PAGE>
                                   SCHEDULE 1

                                      EHPC

                                  RETAIL PRICE
                               EFFECTIVE 19 AUGUST 1998

MODEL   COST                   COST PRICE((pound))     CAPACITY   PRICE((pound))
--------------------------------------------------------------------------------
New Generation Nature Friendly RMS Circulating Water Systems
--------------------------------------------------------------------------------
for Pool's, spas & Cooling Waters
--------------------------------------------------------------------------------
Micro RMS-5                     TBA              96,000 Litres            TBA
--------------------------------------------------------------------------------
Micro RMS-10                    TBA              192,000 Litres           TBA
--------------------------------------------------------------------------------
S.RMS 5-1                       2,340            40,000 Litres            5,980
--------------------------------------------------------------------------------
S.RMS 10-1                      3,078            200,000 Litres           7,696
--------------------------------------------------------------------------------
S.RMS 30-1                      4,900            749,700 Litres           12,250
--------------------------------------------------------------------------------
S.RMS 70-1                      5,534            1,749,300 Litres         13,835
--------------------------------------------------------------------------------
S.RMS 100-1                     6,300            2,499,000 Litres         15,750
--------------------------------------------------------------------------------
S.RMS 200-1                     7,420            4,998,000 Litres         18,550
--------------------------------------------------------------------------------
New Generation Nature Friendly RMS Drinking Water and
Down Water Hot & Cold Service
Disinfection System (Single Pass Units

--------------------------------------------------------------------------------
RU-1                            TBA              69 to 6,946 Litres/hour  TBA
--------------------------------------------------------------------------------
RU-2                            TBA              69 to 13,893 Litres/hour TBA
--------------------------------------------------------------------------------
S.RMS 5-2                       2,340            1,666 Litres/hour        5,980
--------------------------------------------------------------------------------
S.RMS 1(2                       3,078            8,330 Litres/hour        7,696
--------------------------------------------------------------------------------
S.RMS 30-2                      5,650            24,990 Litres/hour       14,125
--------------------------------------------------------------------------------
S.RMS 70-2                      6,304            58,310 Litres/hour       15,760
--------------------------------------------------------------------------------
S.RMS 100-2                     7,090            83,300 Litres/hour       17,720
--------------------------------------------------------------------------------
S.RMS 200-2                     8,240            166,600 Litres/hour      20,000
--------------------------------------------------------------------------------
CONSUMABLES
--------------------------------------------------------------------------------
ANODE CHAMBER 5"                36                                        60.00
--------------------------------------------------------------------------------
ANODE CHAMBER 10"               63                                        105.00
--------------------------------------------------------------------------------
ANODE (per pair)                264                                       660.00
90 0Z (S)                       520                                      1300.00
90 OZ (L)
--------------------------------------------------------------------------------
3Z (S)                          60                                        150.00
3Z (L)                          112                                       280.00
--------------------------------------------------------------------------------
35Z (S)                         132                                       330.00
35Z L)                          256                                       640.00
--------------------------------------------------------------------------------
10Z (S)                         88                                        220.00
10Z (L)                         168                                       420.00
--------------------------------------------------------------------------------
DOSING PUMPS
--------------------------------------------------------------------------------
Clients choice POA
--------------------------------------------------------------------------------
(S) Standard
L) Large
--------------------------------------------------------------------------------
SCALE PREVENTION UNITS
--------------------------------------------------------------------------------
Domestic                        55.30                                     153.18
Small Building 8-Bed            102.70                                    199.99
Small Commercial                154.50                                    320.00
--------------------------------------------------------------------------------
EHPC Retail Price.doc

                                      112
<PAGE>
                                   SCHEDULE 2

Targeted Annual Sales Figures

Year of this Agreement                      Agreed targeted Annual Sales Figures
1998                                           $150,000
1999                                            180,000
2000                                            216,000
2001                                            259,200
2002                                            311,040
2003                                            373,248
2004                                            447,898
2005                                            537,478
2006                                            644,974
2007                                            773,969

                                      113
<PAGE>

                                   SCHEDULE 3

List of countries covered by this agreement:

USA

Mexico

Canada

                                      114
<PAGE>

PCT

International Application Published under the patent cooperation treaty

Graphic omitted.

                                      115
<PAGE>

                                SCHEDULE 4 cont.

                                  The EHPC RMS

The general  objective of Random Metering System (RMS) is to provide an improved
electronic  water  treatment  system,  which  allows for  finite  control of the
introduction  of ions and the  ability  to change  the ratio of silver to copper
whilst on stream. This process is patented.

The crux of the system is the provision of an ion supply unit, fed directly with
a clean water  supply to the water  system to be  controlled  (i.e.  to have its
contents purified).  The unit generates ion-laden water which is then introduced
into the system to be treated as it is required.  The system being  treated will
normally  use water  (i.e.  have  water  drawn  from it, or lose  water  through
wastage,  evaporation,  etc) at a rate that will require replenishment at a rate
while still incorporating the required amount of ions.

In this system,  the ion supply is isolated  from the water  system,  i.e. it is
essentially  "upstream"  of the water  system.  The ion supply unit is therefore
unaffected by any of the problems  associated with the  recalculation  of water,
such as the concentrates of calcium or chlorides.

The  process  is  particularly  suitable  for  applications  where  temperature,
tolerance  levels,  dose  rate  and  ion  distribution  may  cause  problems  in
controlling  bacteria,  biofilms,  algae and fungi  when using  traditional  ion
application techniques.

Benefits of the RMS System

1.      The ionisation process is not affected by the quality of the water to
be treated.

2.      There is total control of the ion input for either constant or varying
throughput of water.

3.      The ions are introduced to the water being treated at the most effective
position in the system.

4.      The mix of ions (e.g. silver to copper) can be varied to suit the
application.

5.      The system can be applied to any water treatment  requirement,  within
drinking water standards when necessary.

6.      The system is fully automatic with rapid response to changing needs.

7.      Multi-sources  can be treated  from one RMS unit,  e.g. a  multi-pool
leisure  facility  or several cooling towers.

                                      116
<PAGE>

GRAPHIC OMITTED

                                      117
<PAGE>

Method of Works

1.      Aims

        To control algae,  bacteria,  fungal spores and viral  contamination  of
        water services used for domestic purposes,  and to eradicate Legionella.
        The method is to be  non-hazardous to the installers and maintainers and
        to run at minimal  cost.  The equipment is to be installed so as to give
        continuous  treatment  and be easy to  maintain  and to give  conclusive
        evidence that it is operational and working  satisfactorily.  Failure to
        work  satisfactorily must be readily indicated to those people in charge
        of the apparatus. The water services, after treatment, shall comply with
        criteria for `potable water' locally in force at this time and place.

2.      Method

        The apparatus may be referred to as being  `chemical free' in operation,
        as  it  employs  metals  which  are  positively   ionised  in  very  low
        concentrations  which  are  naturally  toxic to live  microorganisms  in
        water.

        The apparatus is concerned  with the  production of a suitable  toxicant
        which  can be  `seeded'  and  mixed  into  the  water  supply  at a rate
        consistent with the demand for water.

        The  generation  of the `ions' of silver and copper are caused to form a
        highly  concentrated liquid which is then inserted into the water supply
        giving a diluted silver solution in the range 15 parts per billion up to
        80 parts per billion.

        Provided  that silver,  which is effective  against  Legionella,  can be
        found at the user  points,  which are outlets  from the system,  between
        these  concentrations,  microbiological  tests will show that biological
        control  has been  established.  At the lower  limit,  the  reproductive
        activity of the  bacteria is stopped.  At the higher  limit,  the Public
        Health Authority will accept the water is potable for drinking purposes.
        Should this upper limit be exceeded,  no immediate harm is likely unless
        the  water is used for  drinking  purposes  over a number of months by a
        single  individual  continuously.  (Above 80 parts per  billion  will be
        employed to control entirely industrial applications).

        In order to  maintain  the  service it is  essential  to protect the low
        energy electrodes from  contamination and an RF unit having an inductive
        coil i:  employed  to prevent the  coating of the active  surfaces  with
        calcium  deposits.  The polarity of the  electrodes  is caused to change
        between anode and cathode  frequently,  to assist in obtaining even wear
        of the electrodes.

        The calibration of the units is an essential part of obtaining effective
        control of the  desired  residual  `killing'  power at the system  water
        outlets.

                                      118
<PAGE>

        The equipment has been monitored in operation initially for some months.
        This is  necessary  while the biofilm  formed on the  internal  walls of
        tanks and pipes is removed on contact with the ions.

        It is expected that the quantities of biological  material will be shown
        to increase in solution  after  start-up.  Having once commenced on this
        operation,  the process must be  monitored so as to maintain  sufficient
        killing power to provide a healthy water service.

        Supplementary  introduction  of silver ions may be a  safeguard  that is
        necessary  where cold feeds enter into hot water service  calorifiers or
        storage vessels.  Where hot. water service  installations  are involved,
        the  water is not  `potable'  quality  by  definition  and 80 ppb can be
        exceeded.

        It should be established that no ions are seeded into the water services
        when there is no flow throughput for use. Where  supplementary units are
        employed on  circulating  hot water  service  systems,  these may be run
        continuously  but under time switch  control  when demand is known to be
        low.

        Having  established the desired  calibration for the production of ions,
        the digital  display will show a figure  marked in mil.Amps  (mA).  This
        figure will drop in output after many weeks and will need to be manually
        re-set by increasing  the voltage at the  potentiometer.  This output of
        `ions' can be easily  administered  by the person who takes  readings of
        residual.  silver  using the silver  test kit by La Motte (Code No. 7754
        Model PAG.LR)

3.      Periodic Maintenance

Generally

        It is  suggested  that  observations  be made at  selected  test  points
        throughout  the premises  where  ionisation  equipment  has been fitted.
        There is no legal obligation to undertake tests but mandatory testing of
        water  quality and  temperatures  may be enforced by Code of Practice in
        public premises.

Weekly

        Testing for residual silver should be undertaken at weekly intervals (or
        as thought to be useful in specific circumstances). These results should
        enable the fine-tuning of the EHPC Ltd. apparatus.  These results should
        be logged  in the same way as  micro-biological  tests  and  temperature
        testing and be available for inspection.

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<PAGE>

Quarterly

        The electrodes  should be removed and cleaned and refitted  unless badly
        worn. This should be done under contract with EHPC Ltd.

4.      Fault Finding Checks

        1)     Failure to find a correct ampere discharge on the display, as
shown on the label.

        2) Silver  residuals  below 10 ppb using test kit and/or above 80 ppb at
test point locations.

        3)     No power supply to the apparatus.

        4)     Electrode chamber contains milky white water instead of clear
solution.

        These are all indications of malfunction  and require the  investigation
        of a qualified  EHPC  Approved  Engineer on site.  Reinstatement  of the
        electrical  supply * will `cold  start' the  apparatus  and initiate the
        sequences.

        The appliance can be safely isolated  electrically and the water feed to
        it valved `off.

        The  system  will  hold a high  level  of  silver/copper-ionised  liquid
        sufficient to stop  coliforms  colonising  the system pipe work for many
        days.

        The failure of the  equipment is to be reported to EHPC  immediately  so
        that spare  components can be identified and fitted within an acceptable
        time span.

        See schematic diagrams and schedule `A' for component listings.

5.      Risk Assessments

        In conformity with the requirement to evaluate `risk' for the `user' and
        installers   and   also   maintainers,   it   is   essential   for   all
        electro-mechanical  installations to comply with the IEE Regulations, 15
        `h and 16`h  Editions,  as  published.  Component  parts as supplied and
        fitted by EHPC Ltd. and its sub-contractors will meet these obligations.

        The electrodes have no injurious  properties.  The production of ionised
        water by this method is also non-injurious to health of human beings. No
        toxic or noxious gases are liberated by this process.

                                      120
<PAGE>

        The  cleaning of  electrodes  requires  that they are  removed  from the
        chambers and cleaned  using a chemical  which does not attack  silver or
        copper.   The  operative   performing  this  function  must  follow  the
        recommended method stated for that proprietary  cleaning agent, and wear
        protective   clothing,   eye   protecting   goggles   and  gloves  in  a
        well-ventilated space.

        In the event of the equipment failing, follow the procedures given under
`Fault Finding Checks'.

6.      COSH Regulations

        None of the  components  or the complete  apparatus  as put into use
        generate or use any  substances dealt with by these Regulations

                                      121
<PAGE>EX-10.2
                              Licensing Agreement dated Novemeber 10, 1998

                                      122
<PAGE>

                            EXHIBIT 10.2

 This Agreement is given on the 10thday of November 1998

BETWEEN

EHPC  IONISATION  LIMITED a company  incorporated  under the laws of England and
Wales under company number 03541625 whose registered  offices are located at 87a
Newington Causeway, London se1 6DH (t Hereinafter known as the Licensor) AND

(1) WALLACE AND TIERNAN LIMETED a company incorporated under the laws of England
and Wales under company number 021 2577 whose registered  offices are located at
Priory Works, Tudley Lane,  Tonbridge,  Kent TN 11 0QL (Hereinafter known as the
Licensee) (2) USF LIMITED a company  incorporated  under the laws of England and
Wales  under  company  number  426414  whose  registered  offices are located at
Whittle Road, Meir Stoke on Trent, Staffs ST3 7020

1.       The Parties agree to develop the Ionisation Non Halogen Disinfecting
         system in accordance with the Development Programme.

2.       a) EHPCI agrees to provide to USF for the  purposes of the  Development
         Programme  and to the  extent  the  Parties  agree  is  necessary,  the
         research  services  of Major  Randy Reid at EHPCI's  facility  al Lyons
         House, 2 Station Road, Frimley. Camberley, Surrey 4U18 S.HF and also at
         a place  or  places  to be  nominated  by USF for the  purposes  of the
         Development.

         b)USF shall pay t0 EHPCI a Research and Development Fee of(pound)30,000
         at(pound)10,000 per month.

3.       Each Party shall fund its participation in the development of the
         ionisation Non Halogen Disinfecting System.

4.       The period for the carrying out of the Development Programme shall
         commence on the date of signature  of this  Agreement  and expire three
         months later or on such other  date  as the  Parties  agree  to in
         writing, which period is whereinafter called the "Development Period".

5.       The Parties will meet at the following times:

         a)       every month  during the  duration of the  Development  Period
         in order to discuss and evaluate the progress of the Development
         Technology Know-how. EHPCI shall have the right to request additional
         meetings upon reasonable notice to USF;

         b)       within  thirty  (30) days of the expiry of the  Development
         Period and  determine  the  success or failure of the Development
         Programme.

6.       Neither Party will make any use of the disclosure of the  Development
         Programme  Technology  Know-How  without the written consent of the
         other.

7.       The Parties agree that in the event of termination of  this Agreement,
         EHPCI shall have  the right to Purchase the Development  Programme
         Technology Know-how from USF for a reasonable sum subject to a maximum
         (pound)30.000  including those parts of the Development  programme
         Technology  Know-how  which are created by USF and those parts which
         are not  dependent  on the  Technology  Know-How  end to exploit the
         Development Programme Technology Know-How at its absolute discretion.

                                      123
<PAGE>

8.       The Parties further  agree that USF shall, for their own benefit use,
         the Anodes In respect of the Product arid the Development Programme
         Technology Know-How Development

9.       IMPROVEMENTS

         9.1      During the Term:

                  a) EHPCI will disclose to USF Improvements made by EHPCI which
                  upon  disclosure will be deemed to form part of the Technology
                  Know-How and subject to the Licence,  and by USF will disclose
                  to EHPCI  Improvements  made by USF and  apply the same to the
                  prosecution  of  the  Licence.  USF  hereby  grants  EHPCI  on
                  Exclusive  licence to use such  Improvements  in its course of
                  business.

                  b) USF acknowledges and agrees that the Improvements described
                  in clause 9.1a and  Intellectual  Property  rights  subsisting
                  therein  vest  in  EHPCI  and  Mat  upon  termination  of this
                  Agreement  by EHPCI in any event,  may be  exploited  by EHPCI
                  alone or with third  parties  in such ways as EHPCI  deems tit
                  without account to USF.

EXECUTED BY THE PARTIES IN THIS AGREEMENT

Signed for and on behalf of:

EHPCI LTD

USF LIMITED

                                      124
<PAGE>

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