Document:

EXHIBIT 10.3

                              WORLD-WIDE EXCLUSIVE
                    ASSIGNMENT, LICENSE AND ROYALTY AGREEMENT

         THIS World-Wide Exclusive Assignment, License and Royalty Agreement
(the "Agreement") is made effective this 5th day of July, 2000 by, between and
among Hadronic Press, Inc., a Florida Corporation with principal offices at
35246 U. S. 19 North, Suite 115, Palm Harbor, Florida 34684-1909 ("UPI") and
EarthFirst Technology, Inc., with principal offices at 7887 Bryan Diary Road,
Suite 105, Largo, Florida 33777 ("EFT"). (EFT and HPI, collectively the
"Parties")

                                   BE IT KNOWN

         For a period commencing approximately 1978 through the date given
above, Dr. Ruggero Maria Santilli ("Dr. Santilli") has developed a technology
embodied in a number of scientific journals, reports and periodicals generally
under the heading of Hadronic Mechanics or similar identifiers. Over the course
of time, Dr. Santilli granted all rights to the results of his research to HPI
in exchange for, among other things, partial financial support for a period from
approximately 1984 through January 1998. The Santilli-HPI Agreement is annexed
hereto and made a part hereof as Exhibit 1.

         During November, 1997, EFT (formerly Toups Technology Licensing, Inc.)
was formed as a Florida corporation to, among other things, develop various
technologies in particular, a nonfossil, non-polluting alternative fuel. During
December, 1997, Dr. Santilli and EFT memorialized their association in that
Scientific Consultant Agreement under which Dr. Santilli would provide
scientific consultation relating to any EFT technology and EFT would provide the
financing and resources necessary to mature Dr. Santilli's theories to practical
application.

         At January, 1998, EFT engaged Dr. Santilli as the Company's Scientific
Advisor. At January, 1998, Dr. Santilli was predominately engaged in the
theoretical practice of his research. At that time Dr. Santilli sought to
acquire the funds and expertise to aid in developing equipment to substantiate
his Hadronic Mechanics theory as it relates to the production of a non-fossil,
non-polluting alternative fuel. During January, 1998 through June, 1998, EFT
expended approximately $500,000 and employed engineers, machinists and
significant managerial support such that on June 29, 1998, Dr. Santilli
submitted a US Patent application for ELECTROMAGNETION, file number 09/106,170.
During June, 1998, EFT received the worldwide exclusive rights to
ELECTROMAGNETION by virtue of the ELECTROMAGNETION License Agreement, Between
June and August, 1998, EFT expended approximately $500,000 and employed
engineers, machinists and significant managerial support such that on August 13,
1998, Dr. Santilli submitted a US Patent application for New CHEMICAL SPECIES
FOR GASES AND THEIR NEW TECHNOLOGIES, file number 09/133,348.

         From September, 1998 through September, 1999, EFT expended in excess of
$1,500,000 and employed engineers, machinists outside consultants and
significant managerial support such that on September 11, 1999, Dr. Santilli
submitted two US

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Patent applications: MAGNEGAS, A NOVEL, HIGHLY EFFICIENT, NONPOLLUTANT, OXYGEN
RICH AND COST COMPETITIVE COMBUSTIBLE GAS AND ASSOCIATED METHOD file number
09/372,278 and DURABLE AND EFFICIENT EQUIPMENT FOR THE PRODUCTION OF A
COMBUSTIBLE AND NON-POLLUTANT GAS FROM UNDERWATER ARCS AND METHOD file number
09/372,277.

         On February 3, 2000, HPI re-assigned its world-wide rights to the above
cited patent applications to EFT such assignments are annexed hereto as Exhibit
2. During the course of 1999, Dr. Santilli and EFT developed initial commercial
uses based on the aforesaid patent applications for the production of a cutting
gas, irrigation water, and the destruction of certain liquid contaminants.

         HPI and EFT now desire to amend their agreements so that all rights to
the aforesaid patent applications as well as all derivatives, improvements or
associated patents or inventions thereof become housed in one corporate entity.
Further, the Parties hereon desire to construct an operating means to
efficiently commercialize current and future applications which are based in
whole or in part on the foregoing intellectual property as well as all
derivatives, improvements or associated patents or inventions thereof.

                                  NOW THEREFORE

         In consideration of the mutual promises and performances set forth
herein and ten ($10.00) dollars and other good and valuable consideration, the
Parties hereto unequivocally agree to the following terms and conditions.

         ESTABLISHMENT OF USMAGNEGAS, INC.

         1.       FORMATION.

                  a.       As a part of this Agreement, HPI shall remit to EFT
80% of the capital stock in USMAGNEGAS, Inc., a Florida corporation formed June
15, 2000. Immediately following the execution of this Agreement, EFT shall
thereafter amend the Articles of Incorporation and By-Laws of USMAGNEGAS in the
form annexed hereto as Exhibit 3.

                  b.       The Parties agree that, at no time, shall any party
take any action without the consent of EFT that would preclude or prevent
USMAGNEGAS from being considered a subsidiary of EFT which can be consolidated
with EFT for tax reporting purposes.

                  c.       The Parties agree that, at no time, shall there be
more than three Directors of USMAGNEGAS. EFT shall at all times nominate two
Members and HPI shall at all times nominate one Member to serve on the
USMAGNEGAS Board of Directors. Any additional Directors created by amendment to
this Agreement may only be done such that EFT shall at all times nominate 66%
and HPI shall nominate 33% of the Members of the USMAGNEGAS Board of Directors.

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                  d.       The Parties agree that should the then USMAGNEGAS
Board of Directors approve any funding program which includes the sale of
USMAGNEGAS equity in any form, such equity shall be deducted from EFT and not
from HPI at all. HPI may not sell any equity for a period of at least three
years from the date hereof unless EFT grants advance approval in writing.

                  e.       Simultaneous with the execution of this Agreement,
John Stanton and Leon Toups shall accept their nomination as Directors of
USMAGNEGAS on behalf of EFT and Dr. Santilli shall accept his nomination as a
Director of USMAGNEGAS on behalf of HPI.

                  f.       At the initial Meeting of Directors following the
execution of this Agreement, the USMAGNEGAS Board of Directors shall appoint Mr.
Leon Toups to serve as President and Chief Executive Officer of USMAGNEGAS. No
other current employees or officers of EFT shall be employed by USMAGNEGAS for
any purpose whatever without the unanimous written consent of USMAGNEGAS Board
of Directors.

                  g.       On or before three months following the effective
date of this Agreement, EFT shall cause the formation of EuroMagneGas, Ltd and
AsiaMagneGas, Ltd. in essentially the same manner as USMAGNEGAS, particularly
items 1.a through 1.c above, and according to that Letter of Intent for
EuroMagneGas and AsiaMagneGas attached hereon as Exhibit 4.

                  h.       As a point in time when EuroMagneGas is formed and
without further action by either party, the Technology Exclusive License and
Royalty Agreement annexed hereto as Exhibit 5, shall be rendered automatically
non-exclusive as it pertains to the territory encompassing EuroMagneGas.
Thereafter, HPI shall enter a separate Technology License and Royalty Agreement
which shall be exclusively between HP[ and the then EuroMagneGas corporation.
The terms and conditions of such license shall be identical in all respects to
the Technology Exclusive License and Royalty Agreement annexed hereto as Exhibit
5 except the section marked "item 6 - Royalties" shall be amended as follows:

                           "6.      ROYALTIES

                                    a.       The Royalty Rate for Licensed
                  Product, Licensed Services and Licensed Systems is three
                  percent (3%) of the gross proceeds of all that EuroMagneGas
                  receives in money or other things of value for leasing,
                  servicing, selling or otherwise commercializing the same, said
                  royalty to be payable on a quarterly calendar basis. The
                  advance Royalty schedule however, shall commence no sooner
                  than 24 months after the formation of EuroMagneGas according
                  to the following schedule:

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                                             (i)      During the twelve months
                  following the 24 month period of the EuroMagneGas License
                  Agreement, EuroMagneGas shall pay $3,333 per month;

                                             (ii)     During the second twelve
                  months following the 24 month period of the EuroMagneGas
                  License Agreement, EuroMagneGas shall pay $6,667 per month;

                                             (iii)    During the third twelve
                  months following the 24 month period of the EuroMagneGas
                  License Agreement, EuroMagneGas shall pay HPI $ 1 0,000 per
                  month;

                                             (iv)     Advance Royalties set
                  forth in item 6.a(i)-(iii) are recoverable by EuroMagneGas by
                  being creditable against whatever Royalty may become during
                  pursuant to any license agreement".

         No other portion of the EuroMagneGas license shall be any different
than that as specified in Exhibit 5 hereto.

                  i.       As a point in time when AsiaMagneGas is formed and
without further action by either party, the Technology Exclusive License and
Royalty Agreement annexed hereto as Exhibit 5, shall be rendered automatically
non-exclusive as it pertains to the territory encompassing AsiaMagneGas.
Thereafter, HPI shall enter a separate Technology License and Royalty Agreement
which shall be exclusively between HPI and the then AsiaMagneGas corporation.
The terms and conditions of such license shall be identical in all respects to
the Technology Exclusive License and Royalty Agreement annexed hereto as Exhibit
5 except the section marked "item 6 - Royalties" shall be amended as follows:

                           "6.      ROYALTIES

                                    a.       The Royalty Rate for Licensed
                  Product, Licensed Services and Licensed Systems is three
                  percent (3%) of the gross proceeds of all that AsiaMagneGas
                  receives in money or other things of value for leasing,
                  servicing, selling or otherwise commercializing the same, said
                  royalty to be payable on a quarterly calendar basis. The
                  advance Royalty schedule however, shall commence no sooner
                  than 24 months after the formation of AsiaMagneGas according
                  to the following schedule:

                                             (i)      During the twelve months
                  following the 24 month period of the AsiaMagneGas License
                  Agreement, AsiaMagneGas shall pay $3,333 per month;

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                                             (ii)     During the second twelve
                  months following the 24 month period of the AsiaMagneGas
                  License Agreement, AsiaMagneGas shall pay $6,667 per month;

                                             (iii)    During, the third twelve
                  months following the 24 month period of the AsiaMagneGas
                  License Agreement, AsiaMagneGas shall pay HPI $10,000 per
                  month;

                                             (iv)     Advance Royalties set
                  forth in item 6.a(i)-(iii) are recoverable by AsiaMagneGas by
                  being creditable against whatever Royalty may become during
                  pursuant to any license agreement".

         No other portion of the AsiaMagneGas license shall be any different
than that as specified in Exhibit 5 hereto.

         DEFINING THE TECHNOLOGY AND PRE-AGREEMENT ASSIGNMENT THEREOF

         2.       TECHNOLOGY. At present, the Technology is defined and embodied
in five US Patents Pending as well as future rights to further improvements or
new inventions based on the existing US Patents Pending as well as a variety of
equipment, automobiles, prototypes and other things of value accumulated since
January 1998 as more fully described in items l(a) - l(f) below.

                  a.       ELECTROMAGNETION - Serial Number 09/106,170 filed
June 29, 1998 - prior to this Agreement the property of EFT by virtue of the
Electromagnetion License Agreement;

                  b.       NEW CHEMICALS AND THEIR NEW TECHNOLOGIES - Serial
Number 09/133,348 filed August 13, 1998 - prior to this Agreement, the property
of EFT by virtue of the assignment from HPI and Dr. Santilli to EFT as recorded
by the US Patent Office June 6, 2000;

                  c.       DURABLE AND EFFICIENT EQUIPMENT FOR THE PRODUCTION OF
A COMBUSTIBLE AND NON-POLLUTANT GAS FROM UNDERWATER ARCS AND METHODS THEREOF -
Serial Number 09/372,277 filed August 11, 1999 - prior to this Agreement, the
property of EFT by virtue of the assignment from HPI and Dr. Santilli to EFT as
recorded by the US Patent Office June 6, 2000.

                  d.       MAGNEGAS, A NONPOLLUTANT, OXYGEN RICH AND COST
COMPETITIVE, COMBUSTIBLE GAS, AND ASSOCIATED METHODS - Serial Number 09/372,278
filed August 11, 1998 - prior to this Agreement, the property of EFT by virtue
of the Santilli Technology Exclusive Assignment and Royalty Agreement and as an
improvement to

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those inventions contained in the assignment from HPI and Dr. Santilli to EFT
recorded by the US Patent Office June 6,2000

                  e.       OVER-UNITY PRODUCTION OF CLEAN NEW ENERGIES BY
RECYCLING CONTAMINATED LIQUID WASTE - Serial Number 09/586,926 filed June 5,
2000 - prior to this Agreement, the property of EFT by virtue of the Santilli
Technology Exclusive Assignment and Royalty Agreement and as an improvement to
those inventions contained in the assignment from HPI and Dr. Santilli to EFT
recorded by the US Patent Office June 6, 2000.

                  f.       All non-US Patents or patents-pending related to,
associated with or derived from the aforesaid US patents-pending.

                  g.       All equipment, automobiles, prototypes, drawings,
designs and all other things of value related to the Technology which is owned
by EFT and is considered an integral part of the Technology.

                  h.       In addition to the foregoing, the Technology shall
further include any and all things of value relating to the aforesaid patent
applications to include all applications, derivatives, improvements or
associated patents or inventions thereof.

         3.       For the purposes of this Agreement, the term "Technology"
shall refer to items 2(a) - 2(g) above.

         REASSIGNMENT OF THE TECHNOLOGY

         4.       Immediately prior to this Agreement, EFT is the assignee of
the current Technology. At execution of this Agreement, EFT shall assign patent
applications 09/133,348, 09/372,277 and 09/372,278 to HPI.

         5.       Immediately prior to this Agreement, HPI is the assignee of
certain future Technology developments. As a part of this Agreement, HPI shall
license their interests in the Technology exclusively to USMAGNEGAS pursuant to
that certain License and Royalty Agreement annexed hereto as Exhibit 5.

         6.       At execution of this Agreement, EFT shall assign to HPI the
following internet domain "magnegas.com", "plasmaarcflow.com",
'magneliquid.com", "hadronicreators.com" and "magnecules.com".

         LICENSING TO USMAGNEGAS, INC. AND ROYALTIES TO HPI

         7.       HPI shall License their interests in the Technology
exclusively to USMAGNEGAS, Inc. for such compensation and according to the terms
of that certain Technology Licensing and Royalty Agreement annexed hereto as
Exhibit 5.

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         8.       RESPONSIBILITIES OF THE PARTIES

                  a.       EFT shall:

                           (i)      Strictly abide by all the terms and
conditions set forth herein and in any associated agreement or understanding;

                           (ii)     Provide financing, facilities and resources
to facilitate that certain Research and Development program annexed hereto as
Exhibit 6. Any financing provided pursuant to this item 8.a(ii) shall be
considered as partial payment for the rights granted EFT hereunder. Financing
shall be such that on the 15th of each month, USMAGNEGAS shall identify in
writing all cash requirements for the coming month. EFT shall thereafter deposit
such sums directly to USMAGNEGAS prior to the 30 of each month such that on the
first day of each month during the course of the Research and Development
program annexed hereto as Exhibit 6, USMAGNEGAS shall have on deposit all cash
requirements stipulated in writing according to the aforesaid formulae.

                           (iii)    Provide USMAGNEGAS sufficient funds in
addition to those stipulated in items 8.a(ii) above so that all advance
Royalties are paid in strict accordance with the schedule included as a part of
that certain Licensing and Royalty Agreement annexed hereto as Exhibit 5.

                           (iv)     Issue to HPI or their assigns, 1,500,000 EFT
par value $.001 unregistered common shares which thereafter would be eligible
for resale pursuant to the terms and conditions of Securities and Exchange
Commission Rule 144. The EFT common shares issued pursuant to this item 8.a(iv)
shall be issued as consideration for this Agreement and the procurement of
future patents by HPI which patents shall all be immediately a part of this
Agreement as if they had been FILED and issued as of this date and were made a
part hereof. EFT shall cooperate with HPI including executing any appropriate
amendment hereto as recommended to provide the most favorable tax treatment of
this transaction.

                           (v)      Provide all expenses incurred in the
preparation of this Agreement and the formation of Euro- and AsiaMagneGas.

                           (vi)     USM shall not enter any debt financing.

                  b.       HPI shall

                           (i)      Strictly abide by all the terms and
conditions set forth herein and in any associated agreement or understanding;

                           (ii)     Take all steps necessary and provide all
financing required to complete the various patent applications which constitute
items 2(a) - 2(e) as indicated in writing are essential by competent patent
counsel. Such patent counsel may be selected solely by HPI. On the 15th of each
month, as a part of stipulating

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finance requirements stated in item 8.a(ii), HPI shall provide a report of such
patent prosecution activities including at a minimum, the status of each patent,
all patents anticipated in the next twelve months and a description of the funds
expensed thereto.

                           (iii)    Take all steps necessary and provide all
financing required to complete the worldwide patent applications as indicated in
writing are essential by competent patent counsel. Such patent counsel may be
selected solely by HPI. On the 15th of each month, as a part of stipulating
finance requirements stated in item 8.a(ii), HPI shall provide a report of such
patent prosecution activities including at a minimum, the status of each patent,
all patents anticipated in the next twelve months and a description of the funds
expensed thereto.

         9.       USM shall engage the law firm of Johnson, Blakely, Pope,
Bokor, Ruppel & Burns, P.A., attorney Revelini as corporate attorney.

         TERMINATION OF THIS AGREEMENT

         10.      TERMINATION. The Parties hereon acknowledge that major
portions of this Agreement will compel either or both Parties to take actions
which, in the future, would be difficult to terminate. The reassignment of
intellectual property from EFT to HPI, the issuance of common shares from EFT to
HPI and the payment of patent prosecution fees by HPI are items which,
regardless of the termination of this Agreement, would irrevocably alter the
position of both Parties. Those factors which could give rise to the termination
of the license rights granted USMAGNEGAS by HPI are set forth in the annexed
License and Royalty Agreement. This Agreement therefore may only be terminated:

                  a.       Becomes insolvent which insolvency is determined by
Certified Independent Public Accountants acceptable to both HPI and EFT;

                  b.       Declares bankruptcy;

                  c.       Fails to abide by any terms of this Agreement and
such default is not cured within 45 days following notice of such default.
Should either Party determine a default has occurred, notice shall be sent in
the manner described in item 19 hereon. Following the delivery of a default
notice, the receiving Party shall immediately set forth in writing (i) their
agreement/disagreement to such default and, if in agreement, specific steps to
cure such default within a 45 day period.

                  d.       Should the forty-five day period following proper
deliver of a default notice pass without corrective action, then this Agreement
shall be null and void and there shall be no further obligation of either party.

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<PAGE>

         MISCELLANEOUS

         11.      CONFIDENTIALITY. The parties acknowledge their substantial
financial and developmental contributions, efforts and commitments to the
Technology. As such, the Parties and their Officers shall execute
Confidentiality and Non-Disclosure Agreements in the form annexed hereto as
Exhibit 7 and further agree and acknowledge that all key employees of EFT, HPI
and USMAGNEGAS and any potential business partners, licensees or other similar
persons or entities shall execute a confidentiality and non-disclosure agreement
in similar form.

         12.      WAIVERS. No waiver of any default shall be implied from any
delay or omission by the parties to take action on account of such default, and
no express waiver shall affect any default other than the default specified in
the waiver and it shall be operative only for the time and to the extent therein
stated.

         13.      BENEFIT. This Agreement is made and entered into for the sole
protection and benefit of EFT and HPI, their successors and assigns and no other
person or persons have any right to action hereon or rights as a third party
beneficiary as a result of the execution of this Agreement.

         14.      ASSIGNMENT. The rights and obligations of either Party hereto
are non-assignable.

         15.      TERMS. Whenever the context and construction so require, all
words used in the singular number herein shall be deemed to have been used in
the plural, and vice versa, and the masculine gender shall include the feminine
and neuter and the neuter shall include the masculine and feminine. This
Agreement is the product of intensive negotiations between the parties, and as
such, the identity of the drafter shall not be relevant in construction of this
Agreement.

         16.      GOVERNING LAW AND JURISDICTION. This Agreement and all matters
relating thereto shall be governed by and construed and interpreted in
accordance with the laws of the State of Florida. The Parties hereby submit to
the jurisdiction of the state and federal courts located in Pinellas County,
Florida.

         17.      SAVINGS CLAUSE. Invalidation of any one or more of the
provisions of this Agreement shall in no way affect any of the other provisions
hereof, which shall remain in full force and effect.

         18.      EXECUTION IN COUNTERPARTS. This Agreement may be executed in
two or more counterparts, each of which shall be deemed to be an original, but
all of which shall constitute one and the same instrument, and in making proof
of this Agreement, it shall not be necessary to produce or account for more than
one such counterpart.

         19.      CAPTIONS. The captions herein are inserted only as a matter of
convenience and for reference and in no way define, limit or describe the scope
of this Agreement nor the intent of any provision hereof.

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<PAGE>

         20.      ENTIRE UNDERSTANDING. This Agreement constitutes the entire
understanding between the Parties and all prior or contemporaneous oral or
written agreements, understandings, representations and statements are merged
into this Agreement.

         21.      NOTICES. Any and all notices, designations, consents, offers,
acceptances or any other communication provided for herein shall be given in
writing by certified mail or by reputable overnight courier service which shall
be addressed as follows:

      IF TO EARTHFIRST TECHNOLOGY              WITH A COPY TO

      Mr. John Stanton                         Mr. Domenic L. Massari, III, Esq.
      President and Chief Executive Officer    601 S. Fremont Avenue
      EarthFirst Technology                    Tampa, Florida  33606
      7887 Bryan Diary Road, Suite 105
      Largo, Florida  33777

      IF TO HADRONIC PRESS, INC.               WITH A COPY TO

      Ms. Carla Santilli                       Mason and Associates
      President and Chief Executive Officer    Peter Revelini, Esq.
      Hadronic Press, Inc.                     Mangrove Bay
      35246 US Highway 19 North, #115          17757 Highway 19 North
      Palm Harbor, Florida 34684-1909          Suite 500
                                               Clearwater, Florida  33764

         22.      SURVIVAL. The representations and warranties and provisions of
this Agreement shall survive any closing hereunder.

         23.      ATTORNEY'S FEES. In the event that any party is required to
engage the services of legal counsel to enforce its rights under this Agreement,
the prevailing party shall be entitled to reasonable attorneys' fees and costs
from the other party, which in the event of litigation may include fees and
costs incurred at trial, on appeal and incident to any bankruptcy proceeding.

         24.      WAIVER OF JURY TRIAL. BY ACCEPTANCE HEREOF, THE PARTIES AGREE
THAT NONE OF THEM SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDINGS,
COUNTERCLAIM, OR ANY OTHER LITIGATION PROCEDURE BASED UPON OR ARISING OUT OF
THIS AGREEMENT OR ANY INSTRUMENT EVIDENCING OR RELATING TO THIS AGREEMENT. NONE
OF THE PARTIES WILL SEEK TO CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL
HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL HAS NOT BEEN
WAIVED. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY

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NEGOTIATED BY THE PARTIES, AND THESE PROVISIONS SHALL BE SUBJECT TO NO
EXCEPTIONS.

         25.      CLOSING. The Closing shall take place on or before July -,
2000 at 1:00 P.M. at the offices of EFT. All funds, documents and exhibits
called for herein shall be delivered at or prior to Closing.

         IN WITNESS WHEREOF, EFT and HPI have executed this Agreement as of the
date first given above.

For Hadronic Press, Inc.                    For EarthFirst Technology

/s/ CARLA SANTILLI                          /s/ LEON TOUPS
------------------------                    -----------------------------------
Carla Santilli, President                   Leon Toups, Executive Vice President

                                            Ratified by its President
                                            and Chief Executive Officer

                                            /s/ JOHN STANTON
                                            -----------------------------------
                                            John Stanton

                                       11EXHIBIT 10.4

             THE TECHNOLOGY EXCLUSIVE LICENSE AND ROYALTY AGREEMENT

              ANNEXED AS EXHIBIT 5 AND MADE A PART OF THAT CERTAIN

         WORLD WIDE EXCLUSIVE ASSIGNMENT, LICENSE AND ROYALTY AGREEMENT
         BETWEEN HADRONIC PRESS, INC., AND EARTHFIRST TECHNOLOGY, INC.*

         THIS AGREEMENT, effective this 5th day of July, 2000, made between:
Hadronic Press, Inc., 35246 US 19 No., PBM 115, Largo, Florida 34684 ("HPI" or
"Licensor") and USMAGNEGAS, Inc, 35246 US 19 No., PBM 115, Largo, Florida 34684
("USM" or "Licensee").

                              W I T N E S S E T H:

         WHEREAS, the HPI is a Party to that certain Worldwide Exclusive
Assignment, License and Royalty Agreement of which this License and Royalty
Agreement is annexed thereto as Exhibit 5;

         WHEREAS a major requirements of the Worldwide Exclusive Assignment,
License and Royalty Agreement mandates HPI license all their interests in the
Technology as that term is therein defined to USMAGNEGAS according to the terms
and conditions and for such compensation as is herein set forth.

         WHEREAS the Licensor and Licensee are interested in undertaking
together a joint effort at designing, manufacturing, selling or otherwise
commercializing the Technology as by an Exclusive Assignment and Royalty
Agreement that provides for the Licensor to introduce USM to the technology and
to authorize USM to make and to commercialize the Technology at an agreed
royalty, so long as both parties perform in accordance with this Agreement;

         NOW, THEREFORE, the Licensor and Licensee, intending to be legally
bound, agree to undertake designing, manufacturing, and selling or otherwise
commercializing the Technology upon the following terms and conditions:

         1.       DEFINITIONS

                  a.       "Technology" shall have the same meaning as that set
forth in the Worldwide Exclusive Assignment, License and Royalty Agreement
executed simultaneous to the execution of this Agreement.

                  b.       "Licensed Scientific Knowledge" means unpatented
proprietary scientific information disclosed to Licensee by the Licensor, and
useful in identifying and optimizing the basic physical and chemical effects
underlying the Licensed Products or performing Licensed Services.

<PAGE>

                  c.       " Licensed Know-how" means unpatented proprietary
technical, professional, or commercial information disclosed to Licensee by the
Licensor, and useful in designing, making, or using Licensed Products or
performing Licensed Services.

                  d.       "Licensed Patent" means any patent or patent
application Licensed to USM herein and containing a claim defining the
composition, design, machine, process, product by process, manufacturing,
structure, operation, or use of the Technology subject matter, insofar as owned
or licensable by Licensor and so Licensed to USM in or for the Licensed
Territory.

                  e.       "Licensed Product" means product or related
composition whose production, structure, or use embodies any Licensed Scientific
Knowledge and Know-how, is defined by a claim of a Licensed Patent or disclosed
patent application and/or would infringe a Licensed Patent in the absence of
this Agreement, or displays or is commercialized by a Licensed Trademark.

                  f.       "Licensed Service" means any designing, making,
specifying, or any instruction, leasing, or performance of other services
relating to any Licensed Product for, to, or with a customer or other party,
whether for compensation or not.

                  g.       "Licensed Specification" means any requirement or
standard identified by the Licensor to Licensee relating to composition, design,
manufacturing method, structure, workmanship and/or resulting appearance, form,
identity, quality, or presentation of an Licensed Product or a Licensed System,

                  h.       "Licensed System" means any apparatus, assembly,
device, or structure for producing or using an Licensed Product, with or for use
with (or without) other accessories.

                  i.       "Licensed Trademark" Magnetion, MagneGas,
PlasmaArcFlow, Magnecules, Magneliquids, or other word and/or design, used with
or without any other word and/or design, in or as a brand name for Licensed
Products or Licensed Services or Licensed Systems.

                  j.       "Improvement" means any substantial change in any
foregoing defined item (a to h) during this Agreement, whether made by the
Licensor or by USM, or both, or otherwise owned and/or assignable by either of
them to the other.

                  k.       "Licensed Term" means the duration of this Agreement
which shall be: the same as the duration of all patents, trademarks or other
similar devices plus a period of five years following the expiration of Licensed
Patents; or a period of then years following the final denial of a in a given
country, as more appropriately specified below.

                  l.       "Licensed Territory" means worldwide.

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<PAGE>

                  m.       "Licensor" means Hadronic Press, Inc and any and all
other persons, entities or others who are now and who may become co-patent
owners, either through invention or assignment or otherwise, of the Technology.

                  n.       "Licensee" shall means USMAGNEGAS, Inc. a Florida
Corporation which may also be abbreviated as "USM."

         2.       LICENSE AND SUBLICENSES

                  a.       The Licensor hereby grants to the Licensee, for the
Assignment Term only, an indivisible, right and assignment to make, use, lease,
sell, and otherwise practice commercially the defined Licensed subject matter.

                  b.       So long as Licensee is in good standing under this
License Agreement, this grant is to be exclusive on a world-wide basis, meaning
that the Licensor will not grant any third party a similar assignment in the
Licensed Territory.

                  c.       USM shall have the right to apply any Licensed
Trademark to Licensed Products and other components sold by USM for construction
of Licensed Systems, but USM. shall use Licensed Trademarks only in accordance
with acceptable trademark practice and subject to the provisions of this
Agreement.

                  d.       USM customers will have an implied sublicense to
assemble Licensed Products into Licensed Systems, with or without other
components.

                  e.       USM may grant sublicenses under this Agreement. In
the event a sub-license is granted by USM, then in addition to any other
consideration due HPI under this Agreement, USM shall pay over to HPI: (i) 15%
of down payments to USM in cash; (ii) 5% of any stock issued in connection with
such sub-license and; (iii) three-percent (3%) of all gross income derived by
the sub-licensee relating to the Technology. All sublicenses are to be approved
by HPI,, All 3% Royalties paid pursuant to this item 2e shall be paid to HPI
directly.

         3.       LICENSE TERM

                  a.       Unless sooner terminated as provided herein, this
Agreement will continue for a period equal to the expiration date of any and all
patents or other devices enumerated heretofore as a part of the Licensed subject
matter plus a period of five years.

                  b.       The Term shall be until the Licensor gives USM notice
that USM is no longer in good standing because of a specified breach or default
of one or more of USM's obligations under this Agreement; USM shall have the
right to remedy any such breach or default within forty-five (45) days
thereafter to return to good standing as to such breach or default. Likewise, if
the Licensor should be in breach or default of one

                                       3
<PAGE>

or more of Licensor's obligations under this Agreement, the Licensor shall have
the right to remedy any such breach or default within forty-five (45) days
thereafter to return to good standing as to such breach or default.

                  c.       Obligations of this Agreement that are indicated as
surviving beyond the end of this Agreement shall continue for such time period
as may be lawful, despite notice by either party to the other of an election to
discontinue either party's participation in or under this Agreement.

         4.       CONFIDENTIALITY

                  a.       To the extent that USM receives Licensed Scientific
Knowledge and Know-how, or either party becomes aware of other proprietary
information from the other party via their relationship pursuant to this
Agreement, each recipient of such information will hold it in confidence so long
as the other party effectively treats it as confidential, except as specific
information becomes public knowledge otherwise than by or from USM.

                  b.       The foregoing obligation to keep proprietary
information confidential and to safeguard it within the organization of a party
will survive any termination of this Agreement to the extent that such
information is not common trade knowledge.

         5.       ASSIGNMENT ACTIVATION

                  a.       USM shall make available facilities, equipment, and
resources for the Technology design, development, and marketing purposes during
the term of this Agreement in order to enable the equipment and resultant
products to be analyzed, tested, and (as soon as feasible) to be demonstrated to
prospective customers, investors, and other interested persons.

                  b.       The Licensor will provide the Technology, Licensed
Scientific Knowledge and Know-how to USM from time to time as may be appropriate
and will participate regularly as a technical consultant relating to the
Technology design, development, testing, and marketing, as USM deems desirable.

         6.       ROYALTIES

                  a.       The Royalty rate for Licensed Product, Licensed
Services, and Licensed Systems is three percent (3%) of the gross proceeds of
all that USM receives in money or other things of value for leasing, servicing,
selling, or otherwise commercializing the same, said royalty to be payable on a
quarterly calendar basis. As an incentive to HPI to execute this Agreement, USM
further agrees to make advance Royalty payments according to the following
schedule:

                                       4
<PAGE>

                           (i)      During the first twelve months of this
Agreement, USM shall pay to HPI advance Royalties equal to $10,000 per month
with the first payment due and payable upon execution of this Agreement;

                           (ii)     During the second twelve months of this
Agreement, USM shall pay to HPI advance Royalties equal to $20,000 per month;

                           (iii)    During the third twelve months of this
Agreement, USM shall pay to HPI advance Royalties equal to $30,000 per month and
shall continue thereat for the 4th and 5th year.

                           (iv)     Advanced Royalties set forth in item 6.a.(i)
- (iii) are recoverable by EFT by being creditable against whatever Royalty may
become due pursuant to this Agreement.

                  b.       Royalty accrues upon invoice, lease, sale, or service
by USM but shall not be payable until USM's receipt of payment therefor and
shall be without any deduction from USM's actual total revenue therefrom, except
for customers' related costs (such as insurance, shipping, or taxes) and then
only if so itemized on USM's invoices to them.

                  c.       Royalty payable for any given month becomes due at
the end of the then current calendar quarter, and shall be paid, according to
item 6b hereinabove, during the first month of the next calendar quarter, or
will become overdue on the first day of the next month.

                  d.       USM and all its Licensees, or nominees shall
acknowledge the scientific paternity of Magnegas by Santilli, and use the terms
"Santilli's Magnegas", in production labels of all equipment and related
manuals; headings of official communications, press releases, Web Sites; and
other documents, whenever appropriate.

         7.       MINIMAL SALES

                  As a part of this Agreement, USMAGNEGAS undertakes to achieve
the following minimum levels of sales for the period indicated:

                  First Year Sales                  $0
                  Second Year Sales         $1,500,000
                  Minimal Sales             $3,000,000

                  In addition to those provisions cited in section 13 hereon,
failure to achieve the above minimum sales relating to the Technology shall
render USMAGNEGAS in default under this Agreement. In such an event, USMAGNEGAS
shall have 45 days from the date of such default to cure or remedy minimum sales

                                       5
<PAGE>

requirements or this Agreement shall become null and void and HPI shall
reacquire all rights hereunto granted.

         8.       PAYMENTS AND REPORTS

                  a.       USM will report to Licensor, all Royalty for each
calendar quarter of the Assignment Term during the first month of the next
ensuing calendar quarter and may include with each such report full payment of
royalty due for (and reported for) the preceding quarter's operations.

                  b.       Quarterly and annual royalty reports will be signed
and be certified as accurate and complete by an authorized officer of USM.

                  c.       USM will keep accurate and complete records of all
business done pursuant to this Agreement and will make such records available to
Licensor, no more than two (2) persons at once-for inspection during regular
business hours, upon at least three (3) business days' advance notice, to
determine Royalties accrued and paid or unpaid, and any other information due
hereunder.

                  d.       The Licensor may cause an audit to be made of the
applicable records in order to verify statement for Royalties made hereunder.
Any audits shall be conducted by an independent certified public accountant,
acceptable to both parties, and shall be conducted during regular business hours
at USM's offices.

                  e.       The Licensor shall bear the expenses of any such
audit unless such audit reveals that the Royalties paid by USM under this
Agreement for the Period subject to the audit are less than ninety-five percent
(95%) of the amount owed by USM for such period. In such event, the costs of the
audit shall be borne by USM, in addition and without limitation to any right of
remedy Licensor may have, USM agrees to pay the balance of such royalties due
the Licensor within forty-five (45) days after written notice is delivered of
USM's understatement of Royalties due. Furthermore, USM shall pay interest on
all understated Royalties at a rate of 1.5% per month or lesser amount as
mandated by law, computed from the day on which said Royalties were due and
owing to the Licensor.

                  f.       Refusal by USM to report or to pay Royalty, or to
maintain or make available records of business done hereunder, will forfeit
USM's good standing under this Agreement, if not remedies within forty-five(45)
days.

                  g.       In addition to all other payments made to HPI,
USMAGNEGAS shall further pay $5,000 (five-thousand dollars) per month to Dr.
Ruggero Santilli who shall then be available for consultation, advise and
presentations provided such activities do not exceed 20 hours per month. Any
additional time required of Dr. Santilli by USM shall be the subject of a
separate agreement and shall not in any manner be connected with nor construed
as a part of this Agreement as well as all related work

                                       6
<PAGE>

needed to prosecute patents worldwide. When a Consulting Agreement is executed,
this item will be merged therewith.

         9.       IMPROVEMENTS

                  a.       Any new composition, design, product, or service
conducive to third party competition with Licensed Product or Licensed Services
or Licensed Systems, invented or otherwise coming under the control of either
party during the Assignment Term, is deemed an "Improvement" and such party will
disclose the same to the other party promptly and in enough detail to enable the
other party to elect whether to have such Improvement included hereunder.

                  b.       As to any such Improvement by either party, either
party may elect to have such Improvement included hereunder, within three (3)
months after first knowledge thereof, without change in Royalty, by promptly
notifying the other party of an election to do so; and the party that made or
acquired such Improvement need do no more if both parties fail to elect to
include the Improvement.

                  c.       The originating party of an elected Improvement that
appears possibly patentable after a competent prior art search, will file and
prosecute a patent application thereon, and may discontinue prosecuting it or
maintaining any resulting patent, but only after giving the other party notice
of such intention plus ample opportunity to take such (or equivalent) action at
its own sole future discretion and expense.

                  d.       If the parties have joint inventorship/ownership
patent rights in an issued Improvement patent, the parties, will share equally
the related ownership rights and expenses including any official patent
maintenance fees for any one Improvement patent. The parties need not exercise
improvement patent rights, except as this Agreement may provide, nor need either
party account to the other party for any lawful activity regarding such patent
rights outside this Agreement.

                  e.       The parties recognize that well-based differences may
arise with regard to origination of any given Improvement and that as to U.S.
patents the determination of inventorship and of patent ability is exclusively
within the jurisdiction of the U.S. Patent and Trademark Office and the Federal
Courts. Unless the parties are/have joint inventors or successor(s) thereto and
hence are joint owners, they specifically agree that for any Improvement patent
application and for any resulting patent for an Improvement elected by either
party to be included hereunder, regardless of inventorship, the Improvement
originating or otherwise acquiring party will grant to the other party (if that
other party so elects) an unrestricted paid--up (free) license to practice the
Improvement for the Assignment term, if such practice of it would not violate
any non-elected prior patent of the grantor Licensor.

                  f.       Each party's foregoing Improvement rights are
executory in nature, including the right to be informed of any Improvement by
the other party, and to elect an

                                       7
<PAGE>

Improvement for inclusion hereunder (or not), and including rights to ongoing
prosecution of patent applications and maintenance of patents by an originating
party of an elected Improvement, and receipt of license or ownership rights
thereunder.

         10.      INFRINGEMENT RIGHTS

                  a.       In the event that USM's commercialization of any
Licensed Product, Licensed Service, or Licensed System is accused of-infringing
a proprietary right of any third party, the parties will cooperate in attempting
to avoid such infringement or to prove lack of infringement, and so long as
USM's license hereunder is exclusive to the extent set forth above, USM will
have a right, but not an obligation, to defend or assist in defending against
any infringement action brought by a third party, and shall have also the
obligation to pay one-half (1/2) of the costs of doing so, except as either
party may voluntarily pay more thereof incidental to participation therein.

                  b.       Neither party will be liable to the other party if
unable or unwilling to continue this Agreement because of such infringement of
third-party rights, and in that event USM will cease commercializing Licensed
Products, Licensed Services, and Licensed Systems, and USM will relinquish its
rights hereunder in that event, and thereby terminate its Royalty and attendant
obligations to the Licensor.

                  c.       In the event that the activities of any third party
are asserted (or other-wise appear) to infringe an intellectual property right
Licensed to USM hereunder, the parties will cooperate in attempting to ascertain
and to abate such infringement. So long as USM's Assignment hereunder is
exclusive to the extent set forth above, USM will have a prior right, but not
;in obligation, to abate such infringement, whether by litigation or otherwise,
subject to paying all the costs of doing so other than such costs or expenses as
the Licensor may voluntarily pay incidental thereto or to participation therein.
Any moneys recovered from a third-party infringer will be retained by the
parties, pro-rated to their expenditures after determining what portion of
moneys recovered are due the Licensor as part of any Royalty, whose action(s)
had such result.

                  d.       If third-party infringement is not abated, USM may
elect to continue as a non-exclusive Licensee under this Agreement as its sole
remedy, or alternatively USM may discontinue its license and cease royalty
payments as its sole remedy.

         11.      ASSURANCES

                  a.       The Licensor assures USM of its origination of the
inventions and guarantee USM of the Licensor's invention priority to their best
knowledge.

                  b.       The Licensor warrants ownership to their best
knowledge of the Licensed Products and Licensed Services, in the specific sense
that the Licensor has no reason to believe that any third party has any right to
prevent either the Licensor or Licensee from practicing any Licensed Invention,
or from using any Licensed

                                       8
<PAGE>

Trademark, as provided in the Agreement, and Licensor warrant such practice or
usage as non-infringing of third-party rights.

                  c.       On behalf of Licensor, Dr. Santilli will instruct
and/or assist USM's personnel in design, manufacturing, quality standards,
testing, distribution, marketing, and sale, as well as proper marking, of
Licensed Product and Licensed Systems, and Licensor will provide Licensed
Know-how in doing so, as may be applicable as part of a separate Consulting
Agreement.

                  d.       The Licensor will have no liability whatever to USM
for USM's actions or inactions under this Agreement, and USM will save the
Licensor harmless against any liability to third parties whether based upon
agency, contract, negligence, product liability, or other basis-for any claim
based on action or inaction of USM relating to Licensed Products, Services, or
Systems.

         12.      PRODUCT MARKING

                  a.       USM will mark on Licensed Products (or containers)
each patent number applicable thereto upon being advised thereof by the
Licensor. In the absence of patents, USM shall be under no product marking
obligations relating to any use of the Technology, except for the identification
of paternity set forth in this Agreement, paragraph 6d.

                  b.       USM will display a Licensed Trademark (if elected) on
all Licensed Products and in advertising copy, brochures, and publications by or
for USM about Licensed Product. USM will not use any Licensed Trademark in or as
a trade name (i) if not elected, or (ii) if elected, after USM discontinues (or
other termination of) USM's license under this Agreement.

                  c.       USM will not make any material change in materials,
production methods, or otherwise that might affect the nature or quality of any
Technology product or service, without advance notice to the Licensor.

                  d.       If USM elects to use one or more Licensed
Trademark(s), USM will display one thereof on each container of Licensed Product
made by or for it, and in all Licensed Product advertising copy, product
brochures, press releases, and publications by or for USM about Licensed Product
plus the generic name of the goods, together with occasional notice that such
Trademark is the property of the Licensor.

         13.      TERMINATION

                  a.       This Agreement may only be terminated according to
law or in the event of a specific breach of the terms and conditions herein set
forth including but not limited to the payment of royalties. Any breach of this
Agreement shall require the party which asserts such breach to notify the other
party and allow for a period of forty-five

                                       9
<PAGE>

days to effect a cure of any such breach. In the absence of any such cure, this
Agreement automatically terminates without need of further written notice.

                  b.       Upon termination, USM will refrain from exercising
thereafter any right it had by license hereunder, such as practicing the
invention of any previously Licensed Patent, or using a licensed Trademark or
confusingly similar expression.

                  c.       Whenever USM is not in good standing hereunder, the
Licensor may render USM's Assignment wholly non-exclusive, or if it is already
non-exclusive for a prior breach or default the Licensor may terminate USM's
rights hereunder, in the absence of specific curative provisions for USM's
breach or default, or if USM has had an opportunity to comply such a curative
provisions and failed or refused to do so.

                  d.       If either party becomes, or would become, disabled-as
by the other party's choosing, or being subjected to, an act or a procedure for
relief of debtors from enforcing compliance with a given executory obligation of
the other party hereunder (e.g., compliance with standards, action with regard
to infringers, offer of Improvements) the thus disabled party may deem this
Agreement and the license and other rights under this Agreement terminated.

                  e.       No inaction or overlooking by the Licensor or
Licensee of any condition or provision of this Agreement or of any breach or
default thereof either party shall be deemed to imply or to constitute a future
waiver of any similar breach or default of the same or other
condition/provision.

                  f.       This Agreement is automatically terminated in the
event of USM financial insolvency and bankruptcy, in which case Licensor
re-acquires the complete rights granted hereunder.

                  g.       This Agreement is also automatically terminated in
the event USM has no sales for the continuous duration of two years, in which
case Licensor re-acquires the entire rights granted hereunder.

         14.    NOTICES

                a. If to Licensor

                   Hadronic Press, Inc.        with a copy to
                   Ms. Carla Santilli          Mason and Associates
                   President and               Peter Revelini, Esquire
                   Chief Executive Officer     Mangrove Bay
                   Hadronic Press, Inc.        17757 Highway 19 North
                   35246 US Highway 19 North   Suite 500
                   Suite 115
                   Palm Harbor, FL  34684-1909 Clearwater, FL  33764

                                   10
<PAGE>

                b. If to Licensee

                   If to USMagneGas Inc.:      with a copy to
                   Mr. Leon Toups              Mr. Domenic L. Massari, III, Esq.
                   President and               601 S. Fremont Avenue
                   Chief Executive Officer     Tampa, FL  33606
                   USMagneGas, Inc.
                   7887 Bryan Diary Road
                   Suite 105
                   Largo, FL  33777

         15.      MISCELLANEOUS

                  a.       If any one or more provision(s) or effect(s) of this
Agreement should prove to be invalid or unenforceable, and the Agreement be
otherwise valid and enforceable, the invalid or unenforceable provision or
portion thereof will be severed, and the remainder of the Agreement be and
remain valid and enforceable to the fullest extent permitted by applicable law.

                  b.       This Agreement is made for the benefit of the
parties, their heirs, successors, and assigns, and any other person or legal
entity named in any provision hereof, and not made to give any unnamed person or
legal entity any right of action whatever.

                  c.       Each statement made in this Agreement is deemed
material, and each party is entitled to rely, and deemed to have relied, upon
the truth and correctness thereof in entering into this Agreement.

                  d.       Each party acknowledges that he has received advice
of independent counsel of choice as to the inducements, provisions, and terms of
this Agreement, and their effect, whereupon entering into this Agreement is each
party's free and independent act.

                  e.       This Agreement is to be governed by Federal law to
whatever extent a proprietary right granted by the United States is involved,
and otherwise by Florida law, except as activities of a party in any other State
render that other State's law applicable.

                  f.       In the event that any action or proceeding is brought
to enforce any of the terms and conditions of this Agreement, then the party in
whose favor relief is granted and/or judgment is entered shall be entitled to
have and recover from the other party or parses all costs, prejudgment interest,
and reasonable attorney's fees incurred in connection with the enforcement
action.

                  g.       Notice to be given under this Agreement will be in
writing and be addressed to the other party at the address of such party
hereinabove, unless such

                                       11
<PAGE>

address has been superseded by like notice, whereupon the latest noticed address
thereof is to be used. Notice will be effective when delivered to the addressee,
or-if not a change of address-when sent by Express or Registered Mail so
addressed.

                  h.       This Agreement sets forth the entire intent and
understanding of the parties with regard to the subject matter hereof, and
merges any prior negotiations or agreements by the parties as to such subject
matter, and no addition, deletion, or other modification of the wording hereof
may be made except in writing subsequent hereto and signed by the party or
parties to be bound thereby.

                  i.       As per the Worldwide Assignment, License and Royalty
Agreement, upon the formation of Euro- and/or AsiaMagneGas, respectively, USM
shall amend this Agreement to render same exclusive to the North, Central and
South American possessions and territories only. This action will be taken as
each Euro- and AsiaMagneGas are formed.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
signed, sealed, and attested by persons duly authorized so to do, as of the date
first stated hereinabove.

For Hadronic Press, Inc.                    For USMAGNEGAS, Inc.

/s/ CARLA SANTILLI                          /s/ LEON TOUPS
------------------------                    -------------------------------
Carla Santilli, President                   Leon Toups, President

                                            Ratified by its Chairman of the
                                            Board of Directors

                                            /s/ JOHN STANTON
                                            -------------------------------
                                            John Stanton

                                       12

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