Document:

<PAGE>   1
                              EXHIBIT NUMBER 10.11
<PAGE>   2
                             PACIFIC LITHIUM LIMITED

                      MASSACHUSETTS INSTITUTE OF TECHNOLOGY

                       EXCLUSIVE PATENT LICENSE AGREEMENT

                                  (rev. 1/8/98)

         This Agreement, effective as of the date set forth above the signatures
of the parties below (the "Effective Date"), is between the Massachusetts
Institute of Technology ("M.I.T."), a Massachusetts corporation, with a
principal place of business at 77 Massachusetts Avenue, Cambridge, MA 02139-4307
and Pacific Lithium ("COMPANY"), a New Zealand corporation, with the mailing
address of its principal place of business at 5th Floor, Gosling Chapman Centre,
63 Albert St., Auckland City, New Zealand.

         WHEREAS, M.I.T. is the owner of certain PATENT RIGHTS (as later defined
herein) relating to:

     M.I.T. Case No. 7960, "Glass Compositions for Anode Materials in
     Rechargeable Lithium Batteries," by Gerbrand Ceder and Yet-Ming Chiang;

     M.I.T. Case No. 7959, "Solid Polymer Electrolyte Lithium Battery and
     Process of Manufacture," by Yet-Ming Chiang and Anne M. Mayes;

     M.I.T. Case No. 7799, "Mixed Ionic-Electronic Conducting Binder for Lithium
     Battery Electrodes," by Yet-Ming Chiang, Anne M. Mayes, and Donald R.
     Sadoway;

     M.I.T. Case No. 7124, "High Voltage Cathode Materials For Li Batteries," by
     Mehmet K. Aydinol, Gerbrand Ceder, Yet-Ming Chiang, Biying Huang, and
     Young-il Jang;

     M.I.T. Case No. 7054, "Block Copolymer Electrolytes for Lithium Solid
     Polymer Electrolyte Batteries," by Anne M. Mayes and Philip P. Soo; and

     M.I.T. Case No. 6774, "Cathodes For Lithium Solid Polymer Electrolyte
     Batteries," by Anne M. Mayes and Donald R. Sadoway.

M.I.T. has the right to grant licenses under said PATENT RIGHTS, subject only to
a royalty-free, nonexclusive non-transferable license to practice the PATENT
RIGHTS reserved by the United States Government for M.I.T. Cases 7054 and 7799.

         WHEREAS, M.I.T.'s Vice President for Research has approved that
Yet-Ming Chiang, Anne M. Mayes, and Gerbrand Ceder, inventors of the PATENT
RIGHTS, now hold or shall

         February 10, 1998                                Page-1-of-26-
<PAGE>   3
shortly acquire an equity position in COMPANY and that M.I.T. is accepting
equity as partial consideration for the rights and licenses granted under this
Agreement;

         WHEREAS, the Conflict Avoidance Statement of Yet-Ming Chiang, Anne M.
Mayes, and Gerbrand Ceder is Exhibit A hereto; and a Waiver of M.I.T equity
sharing for Yet-Ming Chiang, Anne M. Mayes, Gerbrand Ceder, and Donald Sadoway
is attached hereto as Exhibit B;

         WHEREAS, M.I.T. desires to have the PATENT RIGHTS developed and
commercialized to benefit the public and is willing to grant a license
thereunder;

         WHEREAS, COMPANY has represented to M.I.T., to induce M.I.T. to enter
into this Agreement, that COMPANY shall commit itself to a thorough, vigorous
and diligent progam of exploiting the PATENT RIGHTS so that public utilization
shall result therefrom; and

         WHEREAS, COMPANY intends to form a majority owned subsidiary to be
incorporated under the laws of the United States and located in Massachusetts
(hereinafter referred to as "NEWCO"), for the exploitation of the PATENT RIGHTS;
and

         WHEREAS promptly upon formation of NEWCO, COMPANY shall assign its
rights and obligations to NEWCO, and

         NOW, THEREFORE, M.I.T. and COMPANY hereby agree as follows:

1. Definitions.

         1.1. "AFFILIATE" shall mean any legal entity (such as a corporation,
partnership, or limited liability company) that is controlled by COMPANY. For
the purposes of this definition, the term "control" means (i) beneficial
ownership of at least fifty percent (50%) of the voting securities of a
corporation or other business organization with voting securities or (ii) a
fifty percent (50%) or greater interest in the net assets or profits of a
partnership or other business organization without voting securities.

         1.2 "EXCLUDED FIELDS" shall mean "batteries for military applications,
and for aerospace applications such as satellites and space vehicles" but not
batteries that are essentially equivalent to those sold in commercial,
mass-markets.

         1.3 "FIELD" shall mean all fields but EXCLUDED FIELDS, as Section 1.3
defines.

         February 10, 1998                                Page-2-of-26-
<PAGE>   4
         1.4 "LICENSED PRODUCT" shall mean any product that cannot be
manufactured, used, leased, or sold, in whole or in part, without infringing one
or more claims under the PATENT RIGHTS.

         1.5 "LICENSED PROCESS" shall mean any process that cannot be performed,
in whole or in part, without using at least one process that infringes one or
more claims under the PATENT RIGHTS.

         1.6 "NET REVENUES" shall mean the gross amount billed or invoiced by
COMPANY and its AFFILIATES and SUBLICENSEES for sales and leases of LICENSED
PRODUCTS and LICENSED PROCESSES, less the following: (i) customary trade,
quantity, or cash discounts to the extent actually allowed and taken; (ii)
amounts repaid or credited by reason of rejection or return; (iii) to the extent
separately stated on purchase orders, invoices, or other documents of sale, any
taxes or other governmental charges levied on the production, sale,
transportation, delivery, or use of a LICENSED PRODUCT or LICENSED PROCESS which
is paid by or on behalf of COMPANY; and (iv) outbound transportation costs
prepaid or allowed and costs of insurance in transit.

                  No deductions shall be made for commissions paid to
individuals whether they be with independent sales agencies or regularly
employed by COMPANY and on its payroll, or for cost of collections. NET REVENUES
shall occur on the date of invoice or billing for a LICENSED PRODUCT or LICENSED
PROCESS. If a LICENSED PRODUCT or a LICENSED PROCESS is distributed, billed or
invoiced to AFFILIATES or others at a discounted price that is substantially
lower than the customary price charged by COMPANY to independent third parties,
NET REVENUES shall be calculated based on the invoice amount of the LICENSED
PRODUCT or LICENSED PROCESS to an independent third party during the same
REPORTING PERIOD or, in the absence of such invoice, on the fair market value of
the LICENSED PRODUCT or LICENSED PROCESS as mutually determined by the parties
in good faith.

                  COMPANY nor an AFFILIATE nor any SUBLICENSEE shall accept
non-monetary consideration for any LICENSED PRODUCTS or LICENSED PROCESSES
without the prior written consent of M.I.T.

         1.7. "PATENT RIGHTS" shall mean:

                  (a) the United States and international patents listed on
Appendix A;

                  (b) the United States and international patent applications
listed on Appendix A and the resulting patents;

         February 10, 1998                                Page-3-of-26-
<PAGE>   5
                  (c) any divisionals, continuations, continuation-in-part
applications, and continued prosecution applications (and their relevant
international equivalents) of the patent applications listed on Appendix A to
the extent the claims are directed to subject matter specifically described in
the patent applications listed on Appendix A, and the resulting patents;

                  (d) any patents resulting from reissues, reexaminations, or
extensions (and their relevant international equivalents) of the patents
described in (a), (b), and (c) above; and

                  (e) international (non-United States) patent applications
filed after the Effective Date in the countries listed on Appendix B and the
relevant international equivalents to divisionals, continuations,
continuation-in-part applications and continued prosecution applications of such
patent applications to the extent the claims are directed to subject matter
specifically described in the patents or patent applications referred to in (a),
(b), (c), and (d) above, and the resulting patents.

         1.8. "REPORTING PERIOD" shall begin on the first day of each calendar
quarter and end on the last day of such calendar quarter; except that the first
and last REPORTING PERIODS under this Agreement may be partial calendar quarters
in that the first REPORTING PERIOD shall begin on the Effective Date, and the
last REPORTING PERIOD shall end on the later of (i) the date of termination of
this Agreement or (ii) the date upon which COMPANY completes and sells its
remaining work-in-progress and inventory of LICENSED PRODUCTS pursuant to
Section 8.5.

         1.9. "SUBLICENSE INCOME" shall mean any payments that COMPANY receives
from a SUBLICENSEE in consideration of the sublicense of the rights granted
COMPANY under Section 2.2, including, without limitation, license fees,
milestone payments, license maintenance fees, and other payments, but
specifically excluding running royalties.

         1.10. "SUBLICENSEE" shall mean any permitted sublicensee of the rights
granted COMPANY under this Agreement, as further described in Section 2.3.

         1.11. "TERM" shall mean the term of this Agreement as further defined
in Section 8.1. below.

         1.12. "TERRITORY" shall mean worldwide.

         1.13. "FINANCING EVENT DATE" shall mean each date on which the COMPANY
sells equity in the COMPANY.

         February 10, 1998                                Page-4-of-26-
<PAGE>   6
2.       Grant of Rights.

                  2.1 COMPANY agrees that the following are preconditions to the
license being granted in this agreement:

                           (a) NEWCO shall be incorporated by June 30, 1998 with
                  an initial capitalization from COMPANY of at least $500,000.

                           (b) Promptly upon formation of NEWCO, COMPANY shall
                  assign all of its rights and obligations under this license
                  agreement to NEWCO, and M.I.T hereby consents and approves of
                  this assignment.

In the event either condition of this section 2.1 is not fulfilled, this
agreement will automatically terminate on June 30, 1998 without further notice.
Any amounts due to be paid or paid hereunder prior to June 30, 1998 are
nonrefundable.

2.2. License Grant. Subject to the terms of this Agreement, M.I.T. hereby grants
to COMPANY and its AFFILIATES a royalty-bearing license under its rights in the
PATENT RIGHTS, to the extent not prohibited by other patents, to develop, make,
have made, use, sell, lease, and import LICENSED PRODUCTS in the FIELD in the
TERRITORY and to develop and perform LICENSED PROCESSES in the FIELD in the
TERRITORY.

         2.3 Exclusivity.

                  M.I.T. agrees that it shall not grant any other license to
make, have made, use, sell, lease and import LICENSED PRODUCTS in the FIELD in
the TERRITORY or to develop and perform LICENSED PROCESSES in the FIELD in the
TERRITORY during the period of time of commencing on the Effective Date to the
end of the TERM, unless sooner terminated as provided in this Agreement.

         2.4. Sublicenses. COMPANY shall have the right to grant sublicenses of
its rights under Section 2.2. COMPANY shall incorporate terms and conditions
into its sublicense agreements sufficient to enable COMPANY to comply with this
Agreement. COMPANY shall promptly furnish M.I.T. with a fully executed copy of
any sublicense agreement. Upon termination of this Agreement for any reason, any
SUBLICENSEE not then in default shall have the right to seek a license from
M.I.T. M.I.T. agrees to negotiate such licenses in good faith under reasonable
terms and conditions.

         February 10, 1998                                Page-5-of-26-
<PAGE>   7
         2.5. Retained Rights.

                  (a) M.I.T. M.I.T. retains the right to practice under the
PATENT RIGHTS for research, teaching, and educational purposes, without payment
of compensation to COMPANY.

                  (b) Federal Government. To the extent that any invention
claimed in the PATENT RIGHTS has been partially funded by the U.S. federal
government, COMPANY acknowledges that the federal government retains a
royalty-free, non-exclusive, non-transferable license to practice any
government-funded invention claimed in any PATENT RIGHTS. This Agreement and the
grant of any rights in such government funded inventions in the PATENT RIGHTS
are subject to and governed by federal law as set forth in 35 U.S.C.
Sections 201-211, and the regulations promulgated thereunder, as amended,
or any successor statutes or regulations. If any term of this Agreement fails to
conform with such laws and regulations, the relevant term shall be deemed an
invalid provision and modified in accordance with Section 10.10.

         2.6 Access to lists of technologies available for license. M.I.T agrees
to answer periodic requests from COMPANY to provide under a nondisclosure
agreement descriptions of technologies available for licensing from M.I.T in the
battery area.

         2.7 No Additional Rights. Nothing in this Agreement shall be construed
to confer any rights upon COMPANY by implication, estoppel, or otherwise as to
any technology or patent rights of M.I.T. or any other entity other than the
PATENT RIGHTS, regardless of whether such rights shall be dominant or
subordinate to any PATENT RIGHTS.

3. COMPANY Obligations Relating to Commercialization.

         3.1. Diligence Requirements. COMPANY shall use diligent efforts, or
shall cause its AFFILIATES and SUBLICENSEES to use diligent efforts, to develop
LICENSED PRODUCTS or LICENSED PROCESSES and to introduce LICENSED PRODUCTS or
LICENSED PROCESSES into the commercial market; thereafter, COMPANY or its
AFFILIATES or SUBLICENSEES shall make LICENSED PRODUCTS or LICENSED PROCESSES
reasonably available to the public. Specifically, COMPANY or AFFILIATE or
SUBLICENSEE shall fulfill the following obligations:

                  (a) Within six (6) months after the Effective Date, Company
         shall furnish M.I.T. with a written research and development plan
         documenting the major tasks and dates to be achieved from inception
         through first sale specifying the number of staff and

         February 10, 1998                                Page-6-of-26-
<PAGE>   8
other resources devoted to the commercialization of LICENSED PRODUCTS or
LICENSED PROCESSES in the FIELD.

         (b) Consistent with Section 5.l(a) (Frequency of Reports), within
sixty (60) days after the end of each calendar year, COMPANY shall furnish
M.I.T. with a written report on the progress of its efforts during the
immediately preceding calendar year to develop and commercialize LICENSED
PRODUCTS or LICENSED PROCESSES, including without limitation research and
development efforts, efforts to obtain regulatory approval, marketing efforts,
and sales figures. The report shall also contain a discussion of intended
efforts and sales projections for the year in which the report is submitted.

         (c) COMPANY shall raise at least Ten Million Dollars ($10,000,000) by
March 30, 1999 from the sale of COMPANY's equity securities for its own account.

         (d) In the aggregate, COMPANY shall raise at least One Hundred Million
Dollars ($100,000,000) by December 31, 2000 from the sale of COMPANY's equity
securities for its own account or demonstrate that it owns the production
capacity to produce at least 5,000,000 batteries based on LICENSED PRODUCTS per
annum or that COMPANY has signed multi year contracts for the contract
manufacture of at least 5,000,000 batteries based on LICENSED PRODUCTS per
annum.

         (e) By January 31, 1999, COMPANY shall start construction of pilot
plants each capable of producing at least 100 tons per year of lithium carbonate
and/or lithium hydroxide and by January 31, 2000 demonstrate that a
commercial-sized plant can produce such salts at costs commercially practical
for the use in producing at least 5,000,000 batteries based on LICENSED PRODUCTS
per annum; or shall demonstrate to the satisfaction of M.I.T. that it has
procured a long-term source of such salts at commercially practical prices to
produce at least 5,000,000 batteries based on LICENSED PRODUCTS per annum.

         (f) COMPANY shall sponsor a minimum of Seven Hundred and Twenty Four
Thousand Dollars ($724,000) of research at M.I.T. starting no later than June
30, 1998 and continuing for the next twenty-four months, under the terms of
M.I.T.'s standard Research Agreement (as may be modified by mutual agreement
between the parties.) and further provided that:

         any additional patent rights arising from such research sponsored by
COMPANY shall be added, at COMPANY'S election by amendment to the License
Agreement for a license issue fee to be negotiated but not to exceed $50,000 per
patent added, and otherwise under the royalty terms and other terms of the
License Agreement.

         February 10, 1998                                Page-7-of-26-
<PAGE>   9
                  (g) COMPANY shall develop working developmental prototypes
         according to the following schedule:

<TABLE>
<CAPTION>
         YEAR                 DEVELOPMENTAL PROTOTYPE
         ----                 -----------------------
<S>                           <C>
         January 1, 2000      Lithium batteries for laptop
                              computers and cellular telephones

         January 1, 2004      Lithium batteries for electric vehicle
                              applications

         January 1, 2008      Large energy storage systems and/or
                              large energy leveling systems
</TABLE>

         If COMPANY documents that the major reason for a delay in meeting the
requirements of paragraph (g) are directly attributable to equivalent delays in
achieving the results projected in the sponsored research described in paragraph
(f) then M.I.T. shall consider such impact in the making the determination of
whether COMPANY has met the requirements of paragraph (g).

         (h) COMPANY shall permit an in-plant inspection by M.I.T. on or before
December, 1998, and thereafter permit in-plant inspections by M.I.T. at regular
intervals with at least six (6) months between each such inspection.

         (i) COMPANY shall make a first commercial sale of a LICENSED PRODUCT on
or before December 31, 1999.

         (j) COMPANY shall establish commercial relationships with one or more
potential customers for LICENSED PRODUCTS by selling Lithium containing products
which need not be LICENSED PRODUCTS with net revenues of at least $500,000 in
the year ending Dec. 31, 1999 to such customers.

         (k)      COMPANY shall make NET REVENUES according to the following
                  schedule:

         in the year ending Dec. 31, 2000                        $2,500,000;
         in the year ending Dec. 31, and each year thereafter    $15,000,000

         In the event that M.I.T. determines that COMPANY (or an AFFILIATE or
SUBLICENSEE) has failed to fulfill its obligations under this Section 3.1 then
M.I.T. will treat such failure as a Material Breach as described in Section
8.3(b).

         3.2      Indemnification.

                  (a) Indemnity. COMPANY shall indemnify, defend, and hold
harmless M.I.T. and its trustees, officers, faculty, students, employees and
agents and their respective successors,

         February 10, 1998                                Page-8-of-26-
<PAGE>   10
heirs and assigns (the "Indemnitees"), against any liability, damage, loss, or
expense (including reasonable attorneys fees and expenses) incurred by or
imposed upon any of the Indemnitees in connection with any claims, suits,
actions, demands or judgments arising out of any theory of liability (including
without limitation actions in the form of tort, warranty, or strict liability
and regardless of whether such action has any factual basis) concerning any
product, process, or service that is made, used, sold, or imported pursuant to
any right or license granted under this Agreement.

                  (b) Procedures. The Indemnitees agree to provide COMPANY with
prompt written notice of any claim, suit, action, demand, or judgment for which
indemnification is sought under this Agreement. COMPANY agrees, at its own
expense, to provide attorneys reasonably acceptable to M.I.T. to defend against
any such claim. The Indemnitees shall cooperate fully with COMPANY in such
defense and will permit COMPANY to conduct and control such defense and the
disposition of such claim, suit, or action (including all decisions relative to
litigation, appeal, and settlement); provided, however, that any Indemnitee
shall have the right to retain its own counsel, at the expense of COMPANY, if
representation of such Indemnitee by the counsel retained by COMPANY would be
inappropriate because of actual or potential differences in the interests of
such Indemnitee and any other party represented by such counsel. COMPANY agrees
to keep M.I.T. informed of the progress in the defense and disposition of such
claim and to consult with M.I.T. with regard to any proposed settlement.

                  (c) Insurance. COMPANY shall obtain and carry in full force
and effect commercial general liability insurance, including product liability
and errors and omissions insurance which shall protect COMPANY and Indemnitees
with respect to events covered by Section 3.2(a) above. Such insurance shall be
issued by an insurer pre-approved by M.I.T, such approval not to be unreasonably
withheld, shall list M.I.T. as an additional named insured thereunder, shall be
endorsed to include product liability coverage, and shall require thirty (30)
days written notice to be given to M.I.T. prior to any cancellation or material
change thereof. The limits of such insurance shall not be less than One Million
Dollars ($1,000,000) per occurrence with an aggregate of Three Million Dollars
($3,000,000) for bodily injury including death; One Million Dollars ($1,000,000)
per occurrence with an aggregate of Three Million Dollars ($3,000,000) for
property damage; and One Million Dollars ($1,000,000) per occurrence with an
aggregate of Three Million Dollars ($3,000,000) for errors and omissions. In the
alternative, COMPANY may self-insure subject to prior approval of M.I.T. COMPANY
shall provide M.I.T. with Certificates of Insurance evidencing compliance with
this Section. COMPANY shall continue to maintain such insurance or self-
insurance after the expiration or termination of this Agreement during any
period in which COMPANY or any AFFILIATE or SUBLICENSEE continues (i) to

         February 10, 1998                                Page-9-of-26-
<PAGE>   11
make, use, or sell a product that was a LICENSED PRODUCT under this Agreement or
(ii) to perform a service that was a LICENSED PROCESS under this Agreement, and
thereafter for a period of five (5) years.

         3.3. Use of M.I.T. Name. COMPANY and its AFFILIATES and SUBLICENSEES
shall not use the name of "Massachusetts Institute of Technology," "Lincoln
Laboratory" or any variation, adaptation, or abbreviation thereof, or of any of
its trustees, officers, faculty, students, employees, or agents, or any
trademark owned by M.I.T., or any terms of this Agreement in any promotional
material or other public announcement or disclosure without the prior written
consent of M.I.T. The foregoing notwithstanding, without the consent of M.I.T.,
COMPANY may state that it is licensed by M.I.T. under one or more of the patents
and/or patent applications comprising the PATENT RIGHTS and may disclose such
information in any prospectus, offering memorandum, or other document or filing
required by applicable securities laws or other applicable law or regulation.

         3.4. Marking of LICENSED PRODUCTS. To the extent commercially feasible
and consistent with prevailing business practices, COMPANY shall mark, and shall
cause its AFFILIATES and SUBLICENSEES to mark, all LICENSED PRODUCTS that are
manufactured or sold under this Agreement with the number of each issued patent
under the PATENT RIGHTS that applies to such LICENSED PRODUCT.

         3.5. Compliance with Law. COMPANY shall use reasonably commercial
efforts to comply with, and shall ensure that its AFFILIATES and SUBLICENSEES
use reasonably commercial efforts to comply with, all commercially material
local, state, federal, and international laws and regulations relating to the
development, manufacture, use, and sale of LICENSED PRODUCTS and LICENSED
PROCESSES. COMPANY expressly agrees to comply with the following:

                  (i) COMPANY and its AFFILIATES and SUBLICENSEES shall comply
         with all United States laws and regulations controlling the export of
         certain commodities and technical data, including without limitation
         all Export Administration Regulations of the United States Department
         of Commerce. Among other things, these laws and regulations prohibit or
         require a license for the export of certain types of commodities and
         technical data to specified countries. COMPANY hereby gives written
         assurance that it will comply with, and will cause its AFFILIATES and
         SUBLICENSEES to comply with, all United States export control laws and
         regulations, that it bears sole responsibility for any violation of
         such laws and regulations by itself or its AFFILIATES or SUBLICENSEES,
         and that it

         February 10, 1998                               Page-10-of-26-
<PAGE>   12
         will indemnify, defend, and hold M.I.T. harmless (in accordance with
         Section 3.2.) for the consequences of any such violation.

                  (ii) COMPANY agrees that any LICENSED PRODUCTS used or sold in
         the United States will be manufactured substantially in the United
         States or its territories unless a waiver is obtained from the U.S.
         government.

4. Consideration for Grant of Rights.

         4.1. License Issue Considerations. In partial consideration of the
rights granted COMPANY under this Agreement, COMPANY shall pay to M.I.T.:

              (i) a total license issue fee of Four Hundred and Fifty Thousand
              dollars ($450,000) to be paid as follows:

                           (a) One Hundred Thousand Dollars ($100,000) to be due
                           within five working days of the Effective Date of
                           this Agreement plus

                           (b) Five (5) percent of the amount received by
                           COMPANY for equity provided on each FINANCING EVENT
                           DATE due fifteen days after receipt until a total of
                           Three Hundred and Fifty Thousand ($350,000) has been
                           paid to M.I.T with any balance remaining unpaid to be
                           paid by December 31, 1998;

              (ii) shares of the COMPANY as set forth in Section 4.6 below; and

              (iii) such amount as set forth in Section 6.3 to reimburse M.I.T.
              for its actual expenses incurred as of the Effective Date in
              connection with obtaining the PATENT RIGHTS. These fees and
              payments are due on or before June 1, 1998 and are nonrefundable
              and are not creditable against any other payments due to M.I.T.
              under this Agreement. In the event that payment in full is not
              made by June 1, 1998, this agreement will automatically terminate
              on June 1, 1998 without further notice.

         4.2. License Maintenance Fee. For each calendar year during the TERM,
COMPANY shall pay to M.I.T. the following license maintenance fees on the dates
set forth below:

                  January 1, 1999 and each January 1st thereafter       $100,000

This annual license maintenance fee is nonrefundable; however, the license
maintenance fee may be credited to running royalties subsequently due on NET
REVENUES and SUBLICENSE INCOME

         February 10, 1998                               Page-11-of-26-
<PAGE>   13
earned during the same calendar year, if any. License maintenance fees' paid in
excess of running royalties and SUBLICENSE INCOME due in such calendar year
shall not be creditable to amounts due for future years.

         4.3. Running Royalties. In partial consideration of the rights granted
COMPANY under this Agreement, COMPANY shall pay to M.I.T. a running royalty of
five percent (5%) of NET REVENUES. These milestone payments are nonrefundable.

         4.4. Sharing of SUBLICENSE INCOME. COMPANY shall pay M.I.T. a total of
fifty (50%) of all SUBLICENSE INCOME.

         4.5. No Multiple Royalties. If the manufacture, use, lease, or sale of
any LICENSED PRODUCT or the performance of any LICENSED PROCESS is covered by
more than one of the PATENT RIGHTS, multiple royalties shall not be due.

         4.6. Equity.

                  (a) Initial Grant. In partial consideration of the license
granted COMPANY under this Agreement, COMPANY shall issue to M.I.T shares (the
"Shares") of Common Stock of COMPANY, for a total consideration of Three Dollars
and Fifty Cents ($3.50) to be paid by M.I.T to COMPANY.

                  COMPANY represents to M.I.T. that, as of the Effective Date,
the aggregate number of Shares issued to M.I.T equals at least three and one
half Percent (3.5%) of the COMPANY's issued and outstanding Common Stock
calculated on a "Fully Diluted Basis." For purposes of this Section 4.6, "Fully
Diluted Basis" shall mean that the total number of issued and outstanding shares
of the COMPANY's Common Stock shall be calculated to include conversion of all
issued and outstanding securities then convertible into common stock, the
exercise of all then outstanding options and warrants to purchase shares of
common stock, whether or not then exercisable, and shall assume the issuance or
grant of all securities reserved for issuance pursuant to any COMPANY stock or
stock option plan in effect on the date of the calculation.

                  (b) Anti-Dilution Protection. COMPANY shall issue additional
shares of Common Stock to M.I.T., such that M.I.T.'s ownership of outstanding
Common Stock shall not fall below three and on half Percent (3.5%) on a Fully
Diluted Basis, as calculated after giving effect to the anti-dilutive issuance.
Such issuances shall continue until and including the date upon which a total of
Ten Million Dollars ($10,000,000) in cash in exchange for COMPANY's capital

         February 10, 1998                               Page-12-of-26-
<PAGE>   14
         stock (the "Funding Threshold") shall be received by COMPANY.
         Thereafter, no additional shares shall be due to M.I.T.

                           (c) Participation in Future Private Equity Offerings.
         After the date of the Funding Threshold, M.I.T. shall have the right to
         purchase additional shares of the COMPANY's Common Stock in any private
         offering by the COMPANY of its equity securities in exchange for cash,
         to maintain its pro rata ownership as calculated immediately prior to
         such offering on a Fully Diluted Basis, pursuant to the terms and
         conditions at least as favorable as those granted to the other
         offerees. All rights granted to M.I.T. pursuant to this Section 4.6(c)
         shall terminate immediately prior to a firm commitment underwritten
         public offering of the COMPANY's common stock resulting in gross
         proceeds to the COMPANY of at least $10 million.

         5. Reports; Payments; Records.

                      5.1. Frequency of Reports.

                           (a) Before First Commercial Sale.

                                (i) COMPANY must report FINANCING EVENT DATES
                                within five working days of their occurrence.

                                (ii) COMPANY must report the achievement of the
                                diligence provisions listed under Section 3.1
                                (c), (d), (e), (f), (g), (i), (j), and (k) by
                                fax to M.I.T at 617-258-6790 or the fax number
                                within 15 days of achievement.

                                (ii) Prior to the first commercial sale of any
                                LICENSED PRODUCT or first commercial performance
                                of any LICENSED PROCESS, COMPANY shall deliver
                                reports to M.I.T. annually, within sixty (60)
                                days of the end of each calendar year,
                                containing information concerning the
                                immediately preceding calendar year, as further
                                described in Section 5.2 (to the extent
                                applicable).

                           (b) After First Commercial Sale.
                               After the first commercial sale of any LICENSED
                               PRODUCT or first commercial performance of any
                               LICENSED PROCESS, COMPANY shall deliver reports
                               to M.I.T. within sixty (60) days of the end of
                               each REPORTING PERIOD, containing information
                               concerning the immediately preceding REPORTING
                               PERIOD, as further described in Section 5.2.

                           (c) Upon First Commercial Sale of each LICENSED
         PRODUCT or Commercial Performance of LICENSED PROCESS. COMPANY shall
         report to M.I.T. the date

         February 10, 1998                               Page-13-of-26-
<PAGE>   15
of first commercial sale of each LICENSED PRODUCT and the date of first
commercial performance of each LICENSED PROCESS within sixty (60) days of
occurrence in each country.

         5.2. Content of Reports and Payments. Each report delivered by COMPANY
to M.I.T. shall contain at least the following information for the immediately
preceding REPORTING PERIOD:

                  (i) the number of LICENSED PRODUCTS sold, leased or
         distributed by COMPANY, its AFFILIATES and SUBLICENSEES to independent
         third parties in each country, and, if applicable, the number of
         LICENSED PRODUCTS used by COMPANY, its AFFILIATES and SUBLICENSEES in
         the provision of services in each country;

                  (ii) the number of LICENSED PROCESSES performed by COMPANY,
         its AFFILIATES and SUBLICENSEES in each country;

                  (iii) the gross price charged by COMPANY, its AFFILIATES and
         SUBLICENSEES for each LICENSED PRODUCT and, if applicable, the gross
         price charged for each LICENSED PRODUCT used to provide services in
         each country; and the gross price charged for each LICENSED PROCESS
         performed by COMPANY, its AFFILIATES and SUBLICENSEES in each country;

                  (iv) calculation of NET REVENUES for the applicable REPORTING
         PERIOD in each country, including a listing of applicable deductions;

                  (v) total royalty payable on NET REVENUES in U.S. dollars,
         together with the exchange rates used for conversion;

                  (vi) the amount of SUBLICENSE INCOME received by COMPANY from
         each SUBLICENSEE and the amount due to M.I.T. from such SUBLICENSE
         INCOME, including an itemized breakdown of the sources of income
         comprising the SUBLICENSE INCOME; and

                  (vii) the number of sublicenses entered into for the PATENT
         RIGHTS, LICENSED PRODUCTS and/or LICENSED PROCESSES.

         February 10, 1998                               Page-14-of-26-
<PAGE>   16
If no amounts are due to M.I.T. for any REPORTING PERIOD, the report shall so
state. Concurrent with each report, COMPANY shall remit to M.I.T. any payment
due for the applicable REPORTING PERIOD.

         5.3. Financial Statements. On or before the ninetieth (90th) day
following the close of COMPANY's fiscal year, COMPANY shall provide M.I.T. with
COMPANY's financial statements for the preceding fiscal year including, at a
minimum, a balance sheet and an income statement, certified by COMPANY's chief
financial officer or by an independent auditor.

         5.4. Payments in U.S. Dollars. All payments due under this Agreement
shall be payable in United States dollars. Conversion of foreign currency to
U.S. dollars shall be made at the conversion rate existing in the United States
(as reported in the Wall Street Journal) on the last working day of the calendar
quarter preceding the applicable REPORTING PERIOD. Such payments shall be
without deduction of exchange, collection, or other charges, and, specifically,
without deduction of withholding or similar taxes or other government imposed
fees or taxes, except as defined in NET REVENUES.

5.5. Payments in Other Currencies. If by law, regulation, or fiscal policy of a
particular country, conversion into United States dollars or transfer of funds
of a convertible currency to the United States is restricted or forbidden,
COMPANY shall give M.I.T. prompt written notice of such restriction, which
notice shall satisfy the sixty-day payment deadline described in Section 5.2.
COMPANY shall pay any amounts due M.I.T. through whatever lawful methods M.I.T.
reasonably designates; provided, however, that if M.I.T. fails to designate such
payment method within thirty (30) days after M.I.T. is notified of the
restriction, COMPANY may deposit such payment in local currency to the credit of
M.I.T. in a recognized banking institution selected by COMPANY and identified by
written notice to M.I.T., and such deposit shall fulfill all obligations of
COMPANY to M.I.T. with respect to such payment.

         5.6. Records. COMPANY shall maintain, and shall cause its AFFILIATES
and SUBLICENSEES to maintain, complete and accurate records relating to the
rights and obligations under this Agreement and any amounts payable to M.I.T. in
relation to this Agreement, which records shall contain sufficient information
to permit M.I.T. to confirm the accuracy of any reports delivered to M.I.T.
under Section 5.2 and compliance in other respects with this Agreement. The
relevant party shall retain such records for at least five (5) years following
the end of the calendar year to which they pertain, during which time M.I.T., or
M.I.T.'s appointed agents, shall have the right, at M.I.T.'s expense, to inspect
such records during normal business hours to verify any reports and payments
made or compliance in other respects under this Agreement. In the event that

         February 10, 1998                               Page-15-of-26-
<PAGE>   17
any audit performed under this Section reveals an underpayment in excess of ten
percent (10%), COMPANY shall bear the full cost of such audit and shall remit
any amounts due to M.I.T. within thirty (30) days of receiving notice thereof
from M.I.T.

         5.7. Late Payments. Any payments by COMPANY that are not paid on or
before the date such payments are due under this Agreement shall bear interest,
to the extent permitted by law, at two percentage points above the Prime Rate of
interest as reported in the Wall Street Journal on the date payment is due, with
interest calculated based on the number of days that payment is delinquent.

         5.8. Method of Payment. All payments under this Agreement should be
made payable to "Massachusetts Institute of Technology" and sent to the address
identified below. Each payment should reference this Agreement and identify the
obligation under this Agreement that the payment satisfies.

6. Patent Prosecution.

         6.1. Responsibility for PATENT RIGHTS. M.I.T. shall prepare, file,
prosecute, and maintain all of the PATENT RIGHTS. COMPANY shall have reasonable
opportunities to advise M.I.T. and shall cooperate with M.I.T. in such filing,
prosecution and maintenance. Such cooperation includes, without limitation, (i)
promptly executing all reasonable and appropriate papers and instruments to
enable M.I.T. to file, prosecute, and maintain such PATENT RIGHTS in any
country; and (ii) promptly informing M.I.T. of matters that may affect the
preparation, filing, prosecution, or maintenance of any such PATENT RIGHTS (such
as becoming aware of an additional inventor who is not listed as an inventor in
a patent application).

         6.2. International (non-United States) Filings. Appendix B is a list of
countries in which patent applications corresponding to the United States patent
applications listed in Appendix A shall be filed. Appendix B may be amended by
mutual agreement of COMPANY and M.I.T.

         6.3. Payment of Expenses. Payment of all fees and costs, including
attorneys fees, relating to the filing, prosecution and maintenance of the
PATENT RIGHTS shall be the responsibility of COMPANY, whether such amounts were
incurred before or after the Effective Date. As of February 2, 1998, M.I.T. has
incurred approximately $44,000 for such patent-related fees and costs. COMPANY
shall reimburse all amounts due pursuant to this Section within thirty (30) days
of invoicing except as specified in Section 4.1 (iii) for expenses incurred
prior to the

         February 10, 1998                               Page-16-of-26-
<PAGE>   18
Effective Date. Late payments shall accrue interest pursuant to Section 5.7. In
all instances, M.I.T. shall pay the fees prescribed for large entities to the
United States Patent and Trademark Office.

7. Infringement.

         7.1. Notification of Infringement. Each party agrees to provide written
notice to the other party promptly after becoming aware of any infringement of
the PATENT RIGHTS.

         7.2. COMPANY Right to Prosecute. So long as COMPANY remains the only
licensee of the PATENT RIGHTS in the FIELD, COMPANY, to the extent permitted by
law, shall have the right, under its own control and at its own expense, to
prosecute any third party infringement of the PATENT RIGHTS or to defend the
PATENT RIGHTS in any declaratory judgment action brought by a third party that
alleges invalidity, unenforceability, or non-infringement of the PATENT RIGHTS.
Prior to commencing any such action, COMPANY shall consult with M.I.T. and shall
consider the views of M.I.T. regarding the advisability of the proposed action
and its effect on the public interest. COMPANY shall not enter into any
settlement, consent judgment, or other voluntary final disposition of any
infringement action under this Section without the prior written consent of
M.I.T.

         7.3. Recovery. Any recovery obtained in an action brought by COMPANY
under Section 7.2 shall be distributed as follows: (i) each party shall be
reimbursed for any expenses incurred in the action (including the amount of any
royalty or other payments withheld from M.I.T. as described below), (ii) as to
ordinary damages, COMPANY shall receive an amount equal to its lost profits or a
reasonable royalty on the infringing sales (whichever measure of damages the
court shall have applied), and COMPANY shall pay to M.I.T. based upon such
amount a reasonable approximation of the royalties and other amounts that
COMPANY would have paid to M.I.T. if COMPANY had sold the infringing products,
processes and services rather than the infringer, and (iii) as to special or
punitive damages, the parties shall share equally in any award. COMPANY may
offset a total of fifty percent (50%) of any expenses incurred under this
Section and Section 7.2 against any running royalty payments due to
M.I.T. under this Agreement, provided that in no event shall the running royalty
payments under Section 4.3., when aggregated with any other offsets and credits
allowed under this Agreement, be reduced by more than fifty percent (50%) in any
REPORTING PERIOD.

         7.4. M.I.T. as Indispensable Party. M.I.T. shall permit any action
under Section 7.2 to be brought in its name, including being joined as a
party-plaintiff, if required by law, provided that

         February 10, 1998                               Page-17-of-26-
<PAGE>   19
COMPANY shall hold M.I.T. harmless from, and if necessary indemnify M.I.T.
against, any costs, expenses, or liability that M.I.T. may incur in connection
with such action.

         7.5. M.I.T. Right to Prosecute. In the event that COMPANY fails to
initiate an infringement action within a reasonable time after it first becomes
aware of the basis for such action, or to answer a declaratory judgment action
within a reasonable time after such action is filed, or if COMPANY does not have
standing to bring an action under this Article, M.I.T. shall have the right, at
its sole discretion, to prosecute such infringement or answer such declaratory
judgment action, under its sole control and at its sole expense, and any
recovery obtained shall be given to M.I.T.

         7.6. Cooperation. Each party agrees to cooperate fully in any action
under this Article which is controlled by the other party, provided that the
controlling party reimburses the cooperating party promptly for any costs and
expenses incurred by the cooperating party in connection with providing such
assistance.

8. TERM and Termination.

         8.1. TERM. This Agreement shall commence on the Effective Date and
shall remain in effect until the expiration or abandonment of all issued patents
and filed patent applications within the PATENT RIGHTS, unless earlier
terminated in accordance with the provisions of this Agreement.

         8.2. Voluntary Termination by COMPANY. COMPANY shall have the right to
terminate this Agreement, for any reason, (i) upon at least six (6) months prior
written notice to M.I.T., such notice to state the date at least six (6) months
in the future upon which termination is to be effective, and (ii) upon payment
of all amounts due to M.I.T. through such effective date.

         8.3. Termination for Default.

                  (a) Nonpayment. Except as provided in Section 4.1 (iii), in
the event COMPANY fails to pay any amounts due and payable to M.I.T. hereunder,
and fails to make such payments within thirty (30) days after receiving written
notice thereof, M.I.T. may terminate this Agreement immediately upon written
notice to COMPANY.

                  (b) Material Breach. Except as provided in Section 2.1 and 8.3
(a), in the event COMPANY commits a material breach of its obligations under
this Agreement, and fails to cure

         February 10, 1998                               Page-18-of-26-
<PAGE>   20
that breach within sixty (60) days after receiving written notice thereof,
M.I.T. may terminate this Agreement immediately upon written notice to COMPANY.

         8.4. Force Majeure. Neither party will be responsible for delays
resulting from causes beyond the reasonable control of such party, including
without limitation fire, explosion, flood, war, strike, or riot, provided that
the nonperforming party uses commercially reasonable efforts to avoid or remove
such causes of nonperformance and continues performance under this Agreement
with reasonable dispatch whenever such causes are removed.

         8.5. Effect of Termination. The following provisions shall survive the
expiration or termination of this Agreement: Articles 1 and 9, and Sections
3.2., 3.5., 4.6, 5.2. (obligation to provide final report and payment), 5.6.,
8.5., and 10.8. Upon the early termination of this Agreement, COMPANY and its
AFFILIATES and SUBLICENSEES may complete and sell any work-in-progress and
inventory of LICENSED PRODUCTS that exist as of the effective date of
termination, provided that (i) COMPANY is current in payment of all amounts due
M.I.T. under this Agreement, (ii) COMPANY pays M.I.T. the applicable running
royalty or other amounts due on such sales of LICENSED PRODUCTS in accordance
with the terms and conditions of this Agreement, and (iii) COMPANY and its
AFFILIATES and SUBLICENSEES shall complete and sell all work-in-progress and
inventory of LICENSED PRODUCTS within six (6) months after the effective date of
termination.

9. Dispute Resolution.

         9.1. Mandatory Procedures. The parties agree that any dispute arising
out of or relating to this Agreement shall be resolved solely by means of the
procedures set forth in this Article, and that such procedures constitute
legally binding obligations that are an essential provision of this Agreement;
provided, however, that all procedures and deadlines specified in this Article
may be modified by written agreement of the parties. If either party fails to
observe the procedures of this Article, as may be modified by their written
agreement, the other party may bring an action for specific performance of these
procedures in any court of competent jurisdiction.

         9.2. Dispute Resolution Procedures.

                  (a) Negotiation. In the event of any dispute arising out of or
relating to this Agreement, the affected party shall notify the other party, and
the parties shall attempt in good faith to resolve the matter within ten (10)
days after the date of such notice (the "Notice Date"). Any disputes not
resolved by good faith discussions shall be referred to the Director or
Assistant

         February 10, 1998                               Page-19-of-26-
<PAGE>   21
Director of the Technology Licensing Office for M.I.T. and to a senior executive
for the COMPANY (collectively, the "Executives"), who shall meet at a mutually
acceptable time and location within thirty (30) days after the Notice Date and
attempt to negotiate a settlement.

                  (b) Mediation. If the matter remains unresolved within sixty
(60) days after the Notice Date, or if the Executives fail to meet within thirty
(30) days after the Notice Date, either party may initiate mediation upon
written notice to the other party, whereupon both parties shall be obligated to
engage in a mediation proceeding under the then current Center for Public
Resources ("CPR") Model Procedure for Mediation of Business Disputes
(http://www.cpradr.org/medmodel.htm), except that specific provisions of this
Article 9 shall override inconsistent provisions of the CPR Model Procedure. The
mediator will be selected from the CPR Panels of Neutrals. If the parties cannot
agree upon the selection of a mediator within ninety (90) days after the Notice
Date, then upon the request of either party, the CPR shall appoint the mediator.
The parties shall attempt to resolve the dispute through mediation until one of
the following occurs: (i) the parties reach a written settlement; (ii) the
mediator notifies the parties in writing that they have reached an impasse;
(iii) the parties agree in writing that they have reached an impasse; or (iv)
the parties have not reached a settlement within one hundred and twenty (120)
days after the Notice Date.

                  (c) Trial Without Jury. If the parties fail to resolve the
dispute through mediation, or if neither party elects to initiate mediation,
each party shall have the right to pursue any other remedies legally available
to resolve the dispute, provided, however, that the parties expressly waive any
right to a jury trial in any legal proceeding under this Article 9.

         9.3. Preservation of Rights Pending Resolution.

                  (a) Performance to Continue. Each party shall continue to
perform its obligations under this Agreement pending final resolution of any
dispute arising out of or relating to this Agreement; provided, however, that a
party may suspend performance of its obligations during any period in which the
other party fails or refuses to perform its obligations. Nothing in this Article
is intended to relieve COMPANY from its obligation to make payments pursuant to
Articles 4 and 6 of this Agreement.

                  (b) Provisional Remedies. Although the procedures specified in
this Article 9 are the sole and exclusive procedures for the resolution of
disputes arising out of or relating to this Agreement, either party may seek a
preliminary injunction or other provisional equitable relief if, in

         February 10, 1998                               Page-20-of-26-
<PAGE>   22
its reasonable judgment, such action is necessary to avoid irreparable harm to
itself or to preserve its rights under this Agreement.

                  (c) Statute of Limitations. The parties agree that all
applicable statutes of limitation and time-based defenses (such as estoppel and
laches) shall be tolled while the procedures set forth in Sections 9.2.(a) and
9.2(b) are pending. The parties shall cooperate in taking any actions necessary
to effectuate this result.

10. Miscellaneous.

         10.1. No Representations or Warranties. EXCEPT AS OTHERWISE EXPRESSLY
SET FORTH IN THIS AGREEMENT, M.I.T. MAKES NO REPRESENTATIONS OR WARRANTIES OF
ANY KIND CONCERNING THE PATENT RIGHTS, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NONINFRINGEMENT, VALIDITY OF PATENT RIGHTS CLAIMS, WHETHER ISSUED OR PENDING,
AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE.
Specifically, and not to limit the foregoing, M.I.T. makes no warranty or
representation (i) regarding the validity or scope of the PATENT RIGHTS, (ii)
that the exploitation of the PATENT RIGHTS or any LICENSED PRODUCT or LICENSED
PROCESS will not infringe any patents or other intellectual property rights of
M.I.T. or of a third party, and (iii) that M.I.T. or a third party is not
currently infringing or will not infringe the PATENT RIGHTS.

         IN NO EVENT SHALL M.I.T., ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES
AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND,
INCLUDING ECONOMIC DAMAGES OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF
WHETHER M.I.T. SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT
SHALL KNOW OF THE POSSIBILITY OF THE FOREGOING.

         10.2. Compliance with Law and Policies. COMPANY agrees to comply with
applicable law and the policies of M.I.T. in the area of technology transfer and
shall promptly notify M.I.T. of any violation that COMPANY knows or has reason
to believe has occurred or is likely to occur. The M.I.T. policies currently in
effect are available through the M.I.T. Technology Licensing Office and at the
following World Wide Web address: http://web.mit.edu/tlo/www/guide.toc.html.

         February 10, 1998                               Page-21-of-26-
<PAGE>   23
         10.3. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to be one and the same instrument.

         10.4. Headings. All headings are for convenience only and shall not
affect the meaning of any provision of this Agreement.

         10.5. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective permitted successors and
assigns.

         10.6. Assignment. This Agreement is personal to COMPANY and no rights
or obligations may be assigned by COMPANY without the prior written consent of
M.I.T. A purchase of a majority of COMPANY's outstanding voting securities by a
third party without M.I.T.'s prior written consent shall terminate this
Agreement effective on the date of such purchase.

         10.7. Amendment and Waiver. This Agreement may be amended,
supplemented, or otherwise modified only by means of a written instrument signed
by both parties. Any waiver of any rights or failure to act in a specific
instance shall relate only to such instance and shall not be construed as an
agreement to waive any rights or fail to act in any other instance, whether or
not similar.

         10.8. Governing Law. This Agreement and all disputes arising out of or
related to this Agreement, or the performance, enforcement, breach or
termination hereof, and any remedies relating thereto, shall be construed,
governed, interpreted and applied in accordance with the laws of the
Commonwealth of Massachusetts, U.S.A., without regard to conflict of laws
principles, except that questions affecting the construction and effect of any
patent shall be determined by the law of the country in which the patent shall
have been granted.

         10.9. Notice. Any notices required or permitted under this Agreement
shall be in writing, shall specifically refer to this Agreement, and shall be
sent by hand, recognized national overnight courier, confirmed facsimile
transmission, confirmed electronic mail, or registered or certified mail,
postage prepaid, return receipt requested, to the following addresses or
facsimile numbers of the parties:

         If to M.I.T.:     Technology Licensing Office, Room NE25-230
                           Massachusetts Institute of Technology
                           77 Massachusetts Avenue

         February 10, 1998                               Page-22-of-26-
<PAGE>   24
                                   Cambridge, MA 02139-4307
                                   Attention:  Director
                                   Tel:        617-253-6966
                                   Fax:        617-258-6790

                      If to COMPANY:    Robin T. Johannink, President/CEO
                                        PO Box 90725
                                        Auckland Mail Centre, New Zealand
                                        Tel: 64-9-309 5221
                                        Fax: 64-9-307 1740

All notices under this Agreement shall be deemed effective upon receipt. A party
may change its contact information immediately upon written notice to the other
party in the manner provided in this Section.

         10.10. Severability. In the event that any provision of this Agreement
shall be held invalid or unenforceable for any reason, such invalidity or
unenforceability shall not affect any other provision of this Agreement, and the
parties shall negotiate in good faith to modify the Agreement to preserve (to
the extent possible) their original intent. If the parties fail to reach a
modified agreement within sixty (60) days after the relevant provision is held
invalid or unenforceable, then the dispute shall be resolved in accordance with
the procedures set forth in Article 9. While the dispute is pending resolution,
this Agreement shall be construed as if such provision were deleted by agreement
of the parties.

         10.11. Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to its subject matter and supersedes
all prior agreements or understandings between the parties relating to its
subject matter.

         February 10, 1998                               Page-23-of-26-
<PAGE>   25
         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives.

THE EFFECTIVE DATE OF THIS AGREEMENT IS FEBRUARY 10, 1998.

MASSACHUSETTS INSTITUTE OF                   PACIFIC LITHIUM LIMITED
TECHNOLOGY

By:       /s/ J. David Litster               By:      /s/ Robin T. Johannink
Name:     J. David Litster                   Name:    Robin Theodorus Johannink
Title:    Vice President for Research        Title:   Managing Director

MASSACHUSETTS INSTITUTE OF
TECHNOLOGY

By:
Name:
Title:    Vice President for Research

         February 10, 1998                               Page-24-of-26-
<PAGE>   26
                                   APPENDIX A

                    List of Patent Applications and Patents

M.I.T. Case No. 7960
"Glass Compositions for Anode Materials in Rechargeable Lithium Batteries"
by Gerbrand Ceder and Yet-Ming Chiang;
disclosure filed with M.I.T. Technology Licensing Office on 2/2/98

M.I.T. Case No. 7959
"Solid Polymer Electrolyte Lithium Battery and Process of Manufacture"
by Yet-Ming Chiang and Anne M. Mayes
disclosure filed with M.I.T. Technology Licensing Office on 2/1/98

M.I.T. Case No. 7799
"Mixed Ionic-Electronic Conducting Binder for Lithium Battery Electrodes,"
by Yet-Ming Chiang, Anne M. Mayes, and Donald R. Sadoway
disclosure filed with M.I.T. Technology Licensing Office on 7/2/97

M.I.T. Case 7124
"Polymer Electrolyte, Intercalation Compounds and Electrodes for Batteries"
by Mehmet K. Aydinol, Gerbrand Ceder, Yet-ming Chiang, Biying Huang, And
  Young-il Jang
U.S. Patent Application filed 10/10/97
based on Provisional Patent Applications 60/028278 filed 10/11/96 and 60/053876
  filed 7/28/97

M.I.T. Case 7054
"Polymer Electrolyte, Intercalation Compounds and Electrodes for Batteries"
by Anne M. Mayes And Philip P. Soo
U.S. Patent Application No. filed 10/10/97
based on Provisional Patent Application 60/028,341 filed 10/11/96

M.I.T. Case 6774
"Polymer Electrolyte, Intercalation Compounds and Electrodes for Batteries"
by Anne M. Mayes And Donald R. Sadoway
U.S. Patent Application No. filed 10/10/97
based on Provisional Patent Application 60/08,342 filed 10/11/96

February 10, 1998                                                 Page-25-of-26-

<PAGE>   27
PCT application PCT/US97/18839 filed on 10/10/97 designating all PCT
contracting states for the following M.I.T. Cases:

          M.I.T. Case 7124
          "Polymer Electrolyte, Intercalation Compounds and Electrodes for
          Batteries" by Mehmet K. Aydinol, Gerbrand Ceder, Yet-ming Chiang,
          Biying Huang And Young-il Jang

          M.I.T. Case 7054
          "Polymer Electrolyte, Intercalation Compounds and Electrodes for
          Batteries" by Anne M. Mayes And Philip P. Soo

          M.I.T. Case 6774
          "Polymer Electrolyte, Intercalation Compounds and Electrodes for
          Batteries" by Anne M. Mayes And Donald R. Sadoway

           February 10, 1998                       Page -26- of -26-

<PAGE>   28
                                 FIRST AMENDMENT

                  This is an Amendment with the effective date of           to
         the License Agreement dated February 10, 1998 between the Massachusetts
         Institute of Technology ("M.I.T.") and PACIFIC LITHIUM, LTD.
         ("COMPANY"). The parties thereto now further agree as follows:

                  1. Paragraph 3.1 (f) shall be deleted, thereby deleting the
                  requirement for COMPANY to sponsor research at M.I.T. as a
                  condition of the License Agreement.

                  2. The remaining portion of the License Issue Fee of $350,000
                  due on December 31, 1998 under Paragraph 4.1 of the License
                  Agreement, and the License Maintenance Fee of $100,000 due on
                  January 1, 1999 under Paragraph 4.2 of the License Agreement
                  shall both be due on May 15, 1999. Furthermore, if such fees
                  are not received by June 15, 1999 then, paragraph 8.3(a)
                  notwithstanding, M.I.T. shall have the right to terminate the
                  License Agreement effective immediately upon notice to
                  COMPANY.

                  3. As a substitute for the equity shares to be provided by
                  COMPANY to M.I.T. under the provisions of Paragraph 4.6 (a)
                  and (b) of the License Agreement, COMPANY shall grant to
                  M.I.T. Two Hundred Thousand (200,000) shares of common stock
                  of Pacific Lithium Limited, such shares to be delivered to
                  M.I.T. within 15 days of the effective date of this Amendment.
                  Thereafter, no further shares shall be due to M.I.T. except as
                  provided in Paragraph 4.6 (c) as amended in Item 4 below.

                  4. The Participation provisions of Paragraph 4.6 of the
                  License Agreement shall pertain to shares of Pacific Lithium,
                  Limited.

         Agreed to for:

         MASSACHUSETTS INSTITUTE                      PACIFIC LITHIUM LIMITED
         OF TECHNOLOGY

         By: /s/ Lita Nelson                          By: /s/ Robin T. Johannink

         Name: Lita Nelson                            Name: Robin T. Johannink

         Title: Director
           Technology Licensing Office                Title: Managing Director

         Date: December 10, 1998                      Date: 14 December 1998
<PAGE>   29
                                SECOND AMENDMENT

         This is an Amendment with the effective date of 14 December 1998 to the
License Agreement dated February 10, 1998 between the Massachusetts Institute of
Technology ("M.I.T.") and PACIFIC LITHIUM, LTD. ("COMPANY"). The parties thereto
now further agree as follows:

         1. The grant of Article II, as it pertains to anodes, shall be
nonexclusive, with full rights to sublicense.

         2. M.I.T. further grants to COMPANY an option to add to the Patent
Rights of this Agreement by amendment, an exclusive license, only in the field
of use of "cathodes, "any new invention arising from the research laboratories
of Prof. Yet-Ming Chiang or Prof. Gerbrandt Ceder at M.I.T. which is:

         (a) Dominated by the claims of the Patent Rights of the License
         Agreement existing as of the Effective Date of the Agreement or as
         shall be subsequently narrowed by the patent prosecution process of
         these original Patent Rights by the time the new invention is
         disclosed; and

         (b) Invented within five years of the Effective Date of the License
         Agreement.

         Such option shall be exercisable in the following manner under the
         following terms:

         (i) COMPANY shall notify M.I.T. in writing within three months of
         receipt of a description of the new invention that it wishes to add the
         invention to the License Agreement.

         (ii) COMPANY shall reimburse M.I.T. for the costs of filing,
         prosecution and maintenance of the patent rights of the new invention,
         but any such costs incurred shall be shared pro rata with any other
         optionee(s) or licensee(s) to the patent rights at the time the costs
         are incurred.

         (iii) All other terms and conditions shall be as in the License
         Agreement.

         (iv) The exclusivity of COMPANY's license to the new invention shall be
         subject to the nonexclusive license rights of the U.S. Government if
         the Government was a sponsor in whole or in part to the research
         leading to the invention.

         Agreed to for:

         MASSACHUSETTS INSTITUTE                       PACIFIC LITHIUM LIMITED
         OF TECHNOLOGY

         By: /s/Lita Nelson                            By: /s/Robin T. Johannink

         Name: Lita Nelson                             Name: Robin T. Johannink

         Title:  Director                              Title: Managing Director

         Technology Licensing Office

         Date: December 10, 1998                       Date: 14 December 1998
<PAGE>   30
                                 THIRD AMENDMENT

         This is an Amendment with the effective date of ______________________
to the License Agreement dated February 10, 1998 between the Massachusetts
Institute of Technology ("M.I.T.") and PACIFIC LITHIUM, LTD. ("COMPANY") as
amended. The parties thereto now further agree as follows.

Paragraph 3.1 (c) shall be revised to read:

COMPANY shall raise at least Ten Million Dollars ($10,000,000) by June 15, 1999
from the sale of COMPANY's equity securities for its own account. Furthermore,
Paragraph 8.3(b) notwithstanding, if COMPANY has not provided notification and
evidence to M.I.T. by June 16, 1999 that such funds have been committed to the
COMPANY, M.I.T. shall have the right to terminate this Agreement effective
immediately upon notice to COMPANY.

Agreed to for:

MASSACHUSETTS INSTITUTE                                PACIFIC LITHIUM LIMITED
OF TECHNOLOGY

By: /s/Lita Nelson                                     By: /s/Robin T. Johannink

Name: Lita Nelson                                      Name: Robin T. Johannink

Title: Director                                        Title: Managing Director

Technology Licensing Office

Date: February 2nd, 1999                               Date: 26 February 1999
<PAGE>   31
                                FOURTH AMENDMENT

         This is an Amendment with the effective date of March 30, 1999 to the
License Agreement dated February 10, 1998, between the Massachusetts Institute
of Technology ("M.I.T.") and PACIFIC LITHIUM, LTD. ("COMPANY") as amended. The
parties now further agree as follows:

         1.       Paragraph 1.2 of the License Agreement shall be deleted.

         2.       Paragraph 1.3 of the License Agreement shall hereafter read:

                  "FIELD" shall mean all fields, without exception; provided
                  however that the field of "anodes" shall be nonexclusive as
                  provided in the Second Amendment dated December 14, 1998.

Agreed to for:

MASSACHUSETTS INSTITUTE                                PACIFIC LITHIUM LIMITED
OF TECHNOLOGY

By: /s/Lita Nelson                                     By: /s/Robin T. Johannink

Name: Lita Nelson                                      Name: Robin T. Johannink

Title: Director                                        Title: Managing Director

Technology Licensing Office

Date: March 30, 1999                                   Date: 10 April 1999<PAGE>   1
                              EXHIBIT NUMBER 10.12
<PAGE>   2
                             AGREEMENT FOR RESEARCH,
                    DEVELOPMENT AND LICENSING OF TECHNOLOGIES

                                     BETWEEN

                          ENERGY VENTURES INC. (CANADA)

                                       AND

                             PACIFIC LITHIUM LIMITED
                                       PLL

                                OCTOBER 13, 1999

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                         1
<PAGE>   3
                       AGREEMENT FOR RESEARCH, DEVELOPMENT
                      AND COMMERCIALISATION OF TECHNOLOGIES

PARTIES

1.       ENERGY VENTURES INC. (CANADA) a duly incorporated company having its
         registered office in Canada (with its affiliates, called "EVI") and

2.       PACIFIC LITHIUM LIMITED a duly incorporated company having its
         registered office in New Zealand (with its affiliates, called "PLL")

BACKGROUND

A.       EVI is the sole and exclusive world-wide licensee and/or owner of the
         proprietary rights in certain valuable Products and Processes
         comprising lithium manganese oxide compounds for use as cathodes in
         battery applications developed and/or owned by National Research
         Council of Canada ("NRC") which proprietary rights include patents,
         copyright and confidential information.

B.       EVI wishes NRC and PLL to carry out additional research and development
         on the Products and Processes to develop them into commercially
         feasible processes and products.

C.       In the event that NRC and PLL are able to work together to develop
         their respective Products and Processes to produce commercially
         feasible Products and Processes, PLL will elect to exercise the License
         Rights to be granted by EVI under this Agreement.

D.       EVI grants PLL the rights to the Licensed Products set out in this
         Agreement on the terms and conditions in this Agreement.

THE PARTIES AGREE

1.       The terms set out in Parts 1, 2 and 4 of this Agreement shall apply as
         from the Commencement Date.

2.       The terms set out in Parts 1, 2, 3 and 4 of this Agreement shall apply
         in the event that the preconditions set out in Part 3 are satisfied.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                         2
<PAGE>   4
THIS AGREEMENT WAS EXECUTED as of the 13th day of October 1999

SIGNED by PACIFIC LITHIUM
LIMITED in accordance with its
Constitution:

<TABLE>
<S>                                                        <C>
/s/ Robin T. Johannink                                     /s/ Keith Young
Signature of authorised person                             Signature of authorised person

MANAGING DIRECTOR                                          DIRECTOR
Office held                                                Office held

ROBIN T. JOHANNINK                                         KEITH YOUNG
Name of authorised person (print)                          Name of authorised person (print)
</TABLE>

SIGNED by ENERGY VENTURES INC. (CANADA)
in accordance with its Constating Documents:

<TABLE>
<S>                                                        <C>
/s/ D. Wayne Hartford                                      /s/ Peter F. Searle
Signature of authorised person                             Signature of authorised person

President and Chief Executive Officer                      Vice President of Finance and Treasurer

D. Wayne Hartford                                          Peter F. Searle
Name of authorised person (print)                          Name of authorised person (print)
</TABLE>

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                         3
<PAGE>   5
                                     PART 1

                                 INTERPRETATION

         PRESUMPTIONS OF INTERPRETATION
1.0      Unless the context otherwise requires, a word which denotes:

         1.1      The singular denotes the plural and vice versa;

         1.2      Any gender denotes the other genders; and

         1.3      A person includes an individual, a body corporate and a
                  government.

2.0      Unless the context otherwise requires, a reference to:

         2.1      Any legislation includes any regulation or instrument made
                  under it and where amended, re-enacted or replaced means that
                  amended, re-enacted or replacement legislation;

         2.2      Any other agreement or instrument where amended or replaced
                  means that agreement or instrument as amended or replaced;

         2.3      A Clause, Schedule or annexure is a reference to a clause of,
                  annexure to, schedule to or exhibit to this Agreement;

         2.4      A group of persons includes any one or more of them;

         2.5      A party or parties is a reference to a party to or the parties
                  to this Agreement; and to their affiliates ("affiliate" having
                  the same meaning given to it in section 1(4) of the Ontario
                  Business Corporations Act); and

         2.6      A thing or amount is a reference to the whole and each part of
                  it.

         JOINT AND SEVERAL
3.0      An Agreement warranty representation or obligation which binds or
         benefits 2 or more persons under this Agreement binds or benefits those
         persons jointly and separately.

         SUCCESSORS AND ASSIGNS
4.0      A person includes the trustee, executor, administrator, successor in
         title and assign of that person. This Clause must not be construed as
         permitting a party to assign any right under this Agreement.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                         4
<PAGE>   6
         BUSINESS DAY
5.0      A business day is a day during which banks are open for general banking
         business in Ontario.

6.0      Unless the context otherwise requires, a term of this Agreement which
         has the effect of requiring anything to be done on or by a date which
         is not a business day must be interpreted as if it required it to be
         done on or by the next business day.

         DEFINITIONS
7.0      Where commencing with a capital letter:

         "COMMENCEMENT DATE" means 9 August 1999

         "CONFIDENTIAL INFORMATION" means, in respect to each disclosing party,
         all information provided by that party including its Intellectual
         Property, and all other information relating to its processes, business
         and products where knowledge of such information is not in the public
         domain and might reasonably be regarded by the receiving party to be
         confidential.

         "CONFIRMATION DATE" means the date on which PLL gives notice of its
         intention to take up its License Rights under Clause 20 but in any
         event shall be not later than 31 March 2000.

         "CONTRACT YEARS" refers to the 12 month periods commencing on 1 April
         2000.

         "INTELLECTUAL PROPERTY" means, in respect to each party, all
         intellectual property of such party and of any related entity including
         the patents, patents pending, copyright, secret information and
         processes, all trade marks, trade names, know-how and all other
         information which is commercially sensitive or commercially valuable to
         that party;

         "LICENSE RIGHTS" means the rights for PLL to take a license of the
         Licensed Products in accordance with the terms of Part 3 of this
         Agreement.

         "LICENSE TERM" means the period starting on 1 April 2000 and continuing
         until the last expiry date of the Patents.

         "LICENSED PRODUCTS" means all Intellectual Property and Confidential
         Information with respect to the Products and Processes owned by EVI or
         licensed or assigned to it and/or owned by NRC, either wholly or
         jointly with PLL or any other persons.

         "MINIMUM GUARANTEED ROYALTY FEES" means the Minimum Guaranteed Royalty
         Fees payable by PLL set out in column 4 of SCHEDULE D.

         "PATENTS" means the patents for the Products set out in SCHEDULE A and
         such other patents owned by EVI or NRC which are added by mutual
         agreement with PLL to Schedule A during the License Term.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                         5
<PAGE>   7
         "PROCESSES" means the processes relating to the synthesis of Products
         and "PLL'S PROCESSES" shall mean the processes developed by PLL prior
         to, during and after the Research and Development Program which enable
         or will enable it to synthesise the Products on a commercial basis.

         "PRODUCTS" means lithium manganese oxide-based products for use as
         cathodes in battery applications which have been made using the
         Processes developed by or licensed or assigned to EVI or by PLL and EVI
         during the conduct of the Research and Development Program or R&D
         program, and such other products as the parties may from time to time
         include but which shall exclude Products developed by PLL prior to or
         outside of the Research and Development Program or R&D program.

         "R&D" means the research and development program referred to in Clause
         13.2.

         "RESEARCH AND DEVELOPMENT CONTRIBUTIONS" means fees payable by PLL to
         EVI on account of NRC's costs in carrying out the Research and
         Development Program pursuant to Clause 13.1.

         "RESEARCH AND DEVELOPMENT PROGRAM" means the research program set forth
         in SCHEDULE B.

         "ROYALTY FEES" means the fees or share of revenue payable by PLL to EVI
         on the Licensed Products set out in SCHEDULE C.

         "$" and "DOLLARS" mean US dollars.

         "TERRITORY" means the World

         EXTENSION OF DEFINITIONS
8.0      Where a word or phrase is given a defined meaning, another part of
         speech or other grammatical form in respect of that word or phrase has
         a corresponding meaning.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                         6
<PAGE>   8
                                     PART 2

               RESEARCH AND DEVELOPMENT OF PROCESSES AND PRODUCTS

CONDUCT OF RESEARCH AND DEVELOPMENT PROGRAM
9.0      PLL shall use its best efforts to conduct the Research and Development
         Program with NRC and EVI in accordance with the timetable, protocols,
         objectives and procedures set out in Schedule B.

10.0     The Research and Development Program shall be carried out by the
         personnel set out in Schedule B or by such other persons who shall be
         acceptable to PLL, NRC and EVI.

11.0     The Research and Development Program shall be carried out at PLL and
         NRC's respective research centres and PLL shall give the researchers
         access to all necessary facilities to enable the Research and
         Development Program to be conducted efficiently. EVI shall ensure that
         NRC cooperates with PLL in relation to the Research and Development
         Program.

12.0     PLL shall appoint one person to an Oversight Committee and EVI shall
         ensure NRC also appoints one person. The Oversight Committee shall
         supervise the conduct of the Research and Development Program and shall
         be responsible for resolving all issues relating to the day to day
         conduct of the Research and Development Program.

COSTS OF THE RESEARCH AND DEVELOPMENT PROGRAM AND OF R&D
13.0     PLL shall pay EVI:

         13.1     The Research and Development Contributions in respect to the
                  Research and Development Program at the rate of $22,225 per
                  calendar month commencing on Commencement Date and monthly
                  thereafter, terminating on the expiry of three month's notice
                  given by PLL of its intention to cease participation in the
                  Research and Development Program, such notice not to be given
                  before 1 January 2000, such that the total Research and
                  Development Contributions required to be paid by PLL in
                  respect to the Research and Development Program shall be not
                  less than $200,000; and

         13.2     In respect of R&D required by PLL to be carried out by NRC,
                  following the completion of the Research and Development
                  Program, for further research and development of the Licensed
                  Products, such fee amount, not to be less than $100,000 per
                  Contract Year, as is stipulated by PLL, and such further
                  amounts per Contract Year as PLL and EVI shall agree PROVIDED
                  THAT if PLL wishes to stipulate an amount below $100,000 in
                  any Contract Year, it shall only be entitled to license any
                  new Products developed by EVI or NRC in and after that
                  Contract Year on the commercial terms that EVI shall determine
                  and PROVIDED FURTHER that

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                         7
<PAGE>   9
                  all R&D must be documented in a manner similar to that of
                  Schedule B and agreed to by both EVI and NRC.

GRANT OF RIGHTS TO LICENSED PRODUCTS
14.0     EVI grants to PLL and PLL accepts the following:

         14.1     The sole and exclusive rights to exploit those Licensed
                  Products exclusively licensed or assigned to EVI by NRC as at
                  the Commencement Date.

         14.2     The non-exclusive rights to exploit those Licensed Products
                  which are licensed to EVI or jointly owned by EVI with any
                  other party following license or assignment to EVI by NRC as
                  at the Commencement Date.

          for a term commencing on the Commencement Date and terminating on the
          later of 31 March 2000 or the date of effective termination of this
          Agreement. During this term, EVI shall not itself use for commercial
          purposes (except for research and development) nor shall it license
          any of the rights granted to PLL under this Agreement to any other
          person and shall ensure that NRC shall do the same.

OWNERSHIP OF JOINTLY DEVELOPED PRODUCTS
15.0     Any new Products conceived or first reduced to practice in the course
         of or as a result of the Research and Development Program or the R&D
         program shall, subject to Clause 13.2, be assigned into the joint
         ownership of PLL and EVI and shall either be licensed exclusively to
         PLL pursuant to this Agreement if PLL exercises its License Rights or
         may be used by PLL and EVI independently of each other if PLL does not
         exercise its License Rights PROVIDED THAT where the Products have been
         developed using the intellectual property rights of any third person,
         the parties shall be subject to the rights of such third person as to
         the ownership and rights to the new Products.

         For further clarification, prior to 1 April 2000, PLL agrees not to
         sell Licensed Products or Products in commercial quantities to any
         person, without the written permission of EVI.

PROTECTION OF THE INTELLECTUAL PROPERTY IN THE JOINTLY DEVELOPED PRODUCTS
16.0     PLL shall either at its discretion or at the request of EVI, file and
         keep current in the joint names of EVI and PLL such patent applications
         as are reasonably required to protect the interests of EVI and PLL in
         the Intellectual Property for the jointly developed Products in the
         countries that the parties consider appropriate. The costs of applying
         for, prosecuting and maintaining such patent applications shall be
         borne by PLL.

17.0     EVI shall at the request of PLL, provide PLL with all documents
         required by PLL to effect the filing of the patent applications and
         shall ensure NRC provides the same, including assignments of rights
         signed by the inventors employed by NRC.

OWNERSHIP OF PROCESSES
18.0     EVI acknowledges:

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999                                                          8
<PAGE>   10
         18.1     as at the date of execution of this Agreement, PLL is the
                  owner of PLL's Processes and that neither EVI nor NRC have
                  developed their know-how to the point that they can synthesise
                  the Products on a commercially viable basis.

         18.2     for itself and NRC, that all additions to PLL's Processes
                  conceived or first reduced to practice in the course of or as
                  a result of the Research and Development Program shall be
                  assigned into the sole and exclusive ownership of PLL.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999                                                          9
<PAGE>   11
                                     PART 3

                       LICENSING OF PROCESSES AND PRODUCTS

CONFIRMATION OF UPTAKE OF LICENSE RIGHTS
19.0     This Part 3 shall commence and be in full force and effect if PLL in
         its absolute discretion determines that the jointly developed Processes
         and Products are capable of producing processes and products which meet
         PLL's target specifications (which include performance, price, ability
         to be commercially manufactured, stability and other factors) and gives
         notice to EVI that it takes up the License Rights hereunder.

PART 3 CONDITIONAL
20.0     The application of this Part 3 is conditional upon PLL confirming its
         wish to take up the License Rights on or before 31 March 2000 or such
         later date agreed by EVI, failing which, this Part 3 shall have no
         effect.

GRANT OF LICENSE RIGHTS
21.0     EVI or, at the election of EVI any related company of EVI, in respect
         of any part of the following rights, grants to PLL and PLL accepts the
         following for the License Term:

         21.1     The sole and exclusive rights to exploit the Licensed Products
                  owned by EVI or exclusively licensed or assigned to EVI by NRC
                  as at the Confirmation Date.

         21.2     The non-exclusive rights to exploit the Licensed Products
                  owned by EVI or jointly owned by EVI with any other party or
                  non-exclusively licensed or assigned to EVI by NRC as at the
                  Confirmation Date.

         21.3     The exclusive rights to exploit the Licensed Products and
                  Processes either owned by EVI or licensed or assigned to EVI
                  by NRC or jointly owned by EVI with PLL following licensing or
                  an assignment to EVI by NRC which exist at 1 April 2000 or
                  which arise at any time during the License Term, subject to
                  the provisions of Clause 13.2.

         Should EVI elect that the grant of the above rights be in part or in
         total by a related company of EVI, the parties agree, in such event, to
         execute such appropriate other agreement or agreements containing the
         terms herein agreed.

CONSIDERATION FOR LICENSE RIGHTS
22.0     PLL shall pay to EVI the following:

         22.1     The Minimum Guaranteed Royalty Fee for the first Contract Year
                  of $100,000 which shall be paid within 90 days of the
                  Confirmation Date; and

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999.                                                       10
<PAGE>   12
         22.2     Either:
                  (a)      The Royalty Fees calculated on the license fees and
                           royalties or on the net sales of manufactured
                           Licensed Products  and Products in each Contract
                           Year, as set out in SCHEDULE C, subject to adjustment
                           pursuant to Clauses 25 and 26; or

                  (b)      The Minimum Guaranteed Royalty Fees of each Period or
                           Contract Year as set out in Column 4 of SCHEDULE D.

                  whichever shall be the greater

         PROVIDED THAT

                  (c)      respecting the first Contract Year only, the amount
                           so computed shall be reduced by the $100,000 to be
                           paid as per Clause 22.1;
                  (d)      the amounts paid by PLL to EVI in respect of R&D as
                           per Clause 13.2 shall be credited to PLL as
                           non-refundable payments on account of the Minimum
                           Guaranteed Royalty Fees of the Contract Year of
                           receipt of payment;
                  (e)      The Minimum Guaranteed Royalty Fees payable
                           respecting any Contract Year shall be adjusted to
                           reflect the actual selling price of Licensed Products
                           or Products and of battery cells utilising the
                           Licensed Products or Products.

23.0     The Royalty Fees, shall be calculated quarterly and payable no later
         than 30 days following the end of each Contract Year quarter. The
         payment respecting the final quarter of any Contract Year shall be
         adjusted as required to attain at least the Minimum Guaranteed Royalty
         Fees for that Contract Year.

24.0     Research and Development Contributions shall be treated by EVI as
         non-refundable advance payments of the Minimum Guaranteed Royalty Fees
         through 31 March 2000. Amounts paid by PLL to EVI in respect of R&D as
         per Clause 13.2 shall be credited to PLL as non-refundable payments on
         account of the Minimum Guaranteed Royalty Fees as set out in Column 4
         of Schedule D of the applicable Contract Year or on account of Royalty
         Fees of such year.

ADJUSTMENT TO ROYALTY FEES
25.0     EVI acknowledges that:

         25.1     PLL is the licensee of products and processes developed and
                  owned by third parties (including Massachusetts Institute of
                  Technology) and that there may be advantages in combining
                  those third parties' know-how with the Licensed Products;

         25.2     It will join in negotiations with PLL and such third parties
                  and shall in good faith, use its best efforts to agree on the
                  amount of Royalty Fees or royalties to be paid by PLL to EVI
                  and the third parties provided that the total Royalty Fees or
                  royalties

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999.                                                       11
<PAGE>   13
                  payable by PLL to all parties shall not exceed the Royalty
                  Fees that would have been payable to EVI if the third parties
                  know-how had not been used. Multiple Royalty Fees shall not be
                  due to EVI if the sale, use, lease or manufacture of any
                  Licensed Products or Products is covered by more than one of
                  the Patents. Nothing in this Clause shall oblige EVI to accept
                  a reduction in the Royalty Fees due to it.

26.0     If PLL funds R&D as per Clause 13.2 in an amount below $100,000 for any
         Contract Year within the first five years of the License Term, the
         license set out in this Agreement shall cease to be "sole and
         exclusive" for Contract Years subsequent to such year and the Minimum
         Guaranteed Royalty Fees as set out in Column 4 of Schedule D shall
         reduce by:

         26.1     one third for the sixth to tenth Contract Years of the License
                  Term; subsequent to such year

         26.2     two thirds for the eleventh to fifteenth Contract Years of the
                  License Term subsequent to such year;

         and thereafter be at zero.

PAYMENT OF PATENT COSTS
27.0     PLL shall manage the prosecution, grant and continuing registration of
         all patents filed or required by the parties to be filed in respect to
         the Licensed Products or Products and shall promptly pay all such
         costs.

TARGET SALES
28.0     PLL shall use its best endeavours to:

         28.1     Construct and commission a pilot plant capable of producing
                  commercial quality Products on or before the Confirmation
                  Date; and

         28.2     Achieve the target sales of Products set out in SCHEDULE D.

INFORMATION AND AUDIT
29.0     EVI shall be entitled to receive:

         29.1     Quarterly reports from PLL detailing research and development,
                  manufacturing, marketing and sales activities in the preceding
                  Contact Year quarter, within 30 days of the end of such
                  quarter;

         29.2     Such information that EVI may reasonably require to calculate
                  the amount of Royalty Fees computed as per Schedule C; and

         29.3     Advice of all sublicenses granted by PLL respecting Licensed
                  Products or Products and, within a reasonable period of time
                  after the grant of any such sublicense, a certified copy of
                  such sublicense agreement.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999.                                                       12
<PAGE>   14
30.0     EVI may from time to time, by its representative or by an independent
         accountant or auditor, examine or audit the records of PLL relating to
         any information which PLL has provided to EVI or which PLL is required
         to have provided to EVI but has failed to do so.

31.0     EVI shall pay the cost of any inspection or audit carried out pursuant
         to the immediately preceding Clause if the audit or inspection
         establishes that information provided by PLL to EVI was complete and
         correct.

32.0     PLL shall pay the cost of any inspection or audit carried out pursuant
         to Clause 30 if the audit or inspection is required to obtain
         information which PLL has failed to provide or if the audit or
         inspection establishes that information provided by PLL to EVI was
         incorrect or incomplete other than in a particular which is trivial or
         minor.

COLLABORATIVE MARKETING
33.0     PLL acknowledges that EVI wishes PLL to sublicense the use of the
         Licensed Products or Products by battery manufacturers for maximum
         generation of Royalty Fees. PLL and EVI agree to collaborate on the
         identification, presentation and marketing of sub-licenses of the
         Licensed Products or Products to battery manufacturers and such other
         potential sub-licensees as the parties consider appropriate from time
         to time. PLL shall not refuse to grant a sub-license of the License
         Rights to any person who meets the criteria reasonably set by PLL and
         EVI for a suitable licensee except with the prior approval of EVI, such
         approval not to be unreasonably withheld.

TERMINATION OF EXCLUSIVITY OF LICENSE RIGHTS
34.0     The exclusivity of the License Rights may be reduced to non-exclusive
         License Rights by:

         34.1     EVI, in the event that PLL fails to meet a) the Minimum
                  Guaranteed Royalty Fees in any two consecutive Contract Years
                  and b) the accumulative Minimum Guaranteed Royalty Fees of the
                  same two consecutive Contract Years, or

         34.2     PLL, in the event that it reasonably believes that it will be
                  unable to meet the Minimum Guaranteed Royalty Fees respecting
                  Contract Years ending 31 March 2003 or later,

         and in such circumstances:

                  (a)      the Minimum Guaranteed Royalty Fees shall reduce in
                           accordance with Clause 26 PROVIDED THAT if PLL has
                           paid EVI Royalty Fees of at least $1,000,000 as at
                           that date, the Minimum Guaranteed Royalty Fees shall
                           then not apply to PLL; and

                  (b)      EVI may grant License Rights to any other person or
                           persons on such terms and conditions as it considers
                           appropriate.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                        13
<PAGE>   15
                  (c)      where EVI grants License Rights to another person on
                           terms and conditions more favourable than those
                           applying to PLL under this Agreement, EVI shall
                           extend the more favourable terms and conditions to
                           PLL.

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                        14
<PAGE>   16
                                     PART 4

                          GENERAL TERMS AND CONDITIONS

OWNERSHIP OF INTELLECTUAL PROPERTY
35.0     PLL acknowledges and agrees that EVI has license or other rights to the
         Intellectual Property in respect to EVI's and NRC's Processes and
         Products. In order to protect and maintain EVI's and NRC's rights in
         the above, PLL shall:

         35.1     Use EVI's and NRC's Intellectual Property solely in accordance
                  with this Agreement and in accordance with all instructions,
                  rules and procedures prescribed by EVI and NRC from time to
                  time;

         35.2     Not orally or in writing attack or contest, including by or in
                  any administrative or judicial action or proceeding before any
                  governmental authority, the ownership of EVI's or NRC's
                  Intellectual Property nor will PLL orally or in writing
                  disparage the name, the Intellectual Property or the
                  reputation of EVI or NRC.

36.0     EVI acknowledges and agrees on behalf of itself and NRC, that PLL has
         sole and exclusive rights to the Intellectual Property in respect to
         PLL's Processes and Products. In order to protect and maintain PLL's
         rights in the above, EVI shall (and shall ensure that NRC shall also):

         36.1     Use PLL's Intellectual Property solely in accordance with this
                  Agreement and in accordance with all instructions, rules and
                  procedures prescribed by PLL from time to time;

         36.2     Not orally or in writing attack or contest, including by or in
                  any administrative or judicial action or proceeding before any
                  governmental authority, the ownership of PLL's Intellectual
                  Property nor orally or in writing disparage the name, the
                  Intellectual Property or the reputation of PLL.

37.0     EVI warrants and undertakes to PLL that EVI and/or its related
         companies have full right, power and entitlement to grant to PLL the
         License Rights over all of NRC's Licensed Products and Products and
         NRC's Processes set out in this Agreement and NRC shall provide PLL
         with such evidence as PLL shall reasonably require to establish such
         claim.

RIGHTS IN THE INTELLECTUAL PROPERTY UPON TERMINATION OF THIS AGREEMENT
38.0     On termination of this Agreement PLL and EVI will:

         38.1     Immediately cease to use the Intellectual Property of the
                  other (including, in the case of PLL ceasing to use the
                  Intellectual Property of NRC), except for Intellectual
                  Property jointly owned by PLL and EVI;

Agreement for Research, Development and Licensing of Technologies,
dated October 13,1999.                                                        15
<PAGE>   17
         38.2     Not thereafter do or display or suffer or permit to be done or
                  displayed any act matter or thing which may lead or induce or
                  shall be calculated or likely to lead or induce members of the
                  public to believe that the parties are still connected or
                  associated in any way with each other or are still entitled to
                  market or distribute the Products

         and EVI shall ensure that NRC shall also comply with the obligations of
         this Clause as if it were EVI.

39.0     If any party fails to comply with Clause 38.2 then the other party by
         its employees and agents may enter the defaulting party's premises and
         remove all of its Intellectual Property and material relating to its
         Intellectual Property. All costs and expenses incurred in so doing
         shall be recoverable as a debt owing by the defaulting party.

CONFIDENTIALITY
40.0     No party will (and EVI shall ensure that NRC shall not) disclose to any
         person any Confidential Information, unless that disclosure is
         expressly authorised in writing by the owner of such Confidential
         Information.

41.0     Other than may be necessary to reasonably carry out either party's day
         to day commercial activities, neither party shall (and EVI shall ensure
         that NRC shall not) disclose the terms of this Agreement nor issue any
         promotional material or other public announcement or disclosure in
         respect to the existence or nature of the relationship between PLL, EVI
         and NRC without the prior approval of all of such persons in writing.

SPECIFIC SECRECY OBLIGATIONS
42.0     Each of the Parties shall (and EVI shall ensure that NRC shall):

         42.1     Treat as confidential and keep absolutely secret, all the
                  Confidential Information received by it from the other party;

         42.2     Take all proper and effective precautions to prevent the
                  disclosure of the Confidential Information and to preserve the
                  secrecy and confidentiality of the Confidential Information
                  including, without limitation, taking all necessary action to
                  prevent unauthorised persons from obtaining access to the
                  Confidential Information whether by a direct or indirect
                  exposure to it or otherwise;

         42.3     Take all reasonable steps to ensure that its employees or
                  agents also observe the secrecy requirements of this
                  Agreement; and

         42.4     Return to the owner all physical or written records containing
                  the Confidential Information or documentation relating to or
                  concerning the Confidential Information including copies of
                  documentation then in existence immediately upon the
                  termination or expiration of this Agreement.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        16
<PAGE>   18
CIRCUMSTANCES WHEN DISCLOSURE OF CONFIDENTIAL INFORMATION IS PERMITTED
43.0     A party is relieved of its obligations to preserve the confidentiality
         of the Confidential Information if and only to the extent that:

         43.1     Such Confidential Information is or becomes generally publicly
                  available other than as a result of a breach of this Agreement
                  by the party; or

         43.2     Such Confidential Information was developed independently by
                  the party; or

         43.3     Specific disclosure was required by law.

BEST ENDEAVOURS
44.0     Each of the parties shall do (and EVI shall ensure that NRC will do)
         all things necessary to carry out the terms of this Agreement to the
         fullest effect in accordance with best business practice. In
         particular, each of the parties shall:

         44.1     Diligently and fully exploit (or support the exploitation of)
                  the License Rights under this Agreement; and

         44.2     Keep free from conflicting enterprises or any other activities
                  which would be detrimental to or interfere with the conduct of
                  this Agreement.

PROHIBITIONS
45.0     None of the parties shall (and EVI shall ensure that NRC shall not):

         45.1     Use the Intellectual Property of the other parties except in
                  the manner permitted in this Agreement;

         45.2     Be a party to the doing of any act whereby the goodwill trade
                  or business of the other party may be prejudicially affected;

         45.3     Hold itself out as an affiliate of the other;

         45.4     Pledge the credit of the other party;

INDEMNITY AND WARRANTIES
46.0     Each of the parties unconditionally and irrevocably indemnifies the
         other against any loss, liability, costs or expenses which the other
         party may incur because it or NRC:

         46.1     Fails to pay any moneys due and payable to the other party (or
                  within any applicable period of grace) or in the manner
                  required;

         46.2     Fails to perform any of its obligations under this Agreement
                  or under any other contractual arrangement between it and the
                  other party;

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        17
<PAGE>   19
         46.3     Has infringed the intellectual property rights of any other
                  person.

         And it will on demand pay to the other party the amount of that loss,
         liability, cost or expense.

RIGHT TO PROSECUTE INFRINGEMENTS OF THE INTELLECTUAL PROPERTY
47.0     PLL shall have the right under its control and at its own expense to
         prosecute any third party infringements of EVI or NRC's Intellectual
         Property so long as it is the sole and exclusive licensee of EVI's and
         NRC's Intellectual Property. EVI shall cooperate with PLL (and shall
         ensure NRC's cooperation) on any action brought by PLL under this
         Clause subject only to PLL paying EVI and NRC's reasonable costs.

48.0     Nothing in Clause 47 shall oblige PLL to take any action that it does
         not consider to be in its best interests. However, in such
         circumstances, EVI may at its discretion and cost, take such action and
         any recovery obtained by EVI shall be the property of EVI. PLL shall
         cooperate with EVI on any action brought by EVI under this Clause
         subject only to EVI paying PLL's reasonable costs.

TERMINATION
49.0     PLL shall have the right to terminate this Agreement at the end of any
         Contract Year for any reason upon at least 12 month's written notice to
         EVI.

50.0     Either Party may elect to terminate this Agreement by giving notice in
         writing to the other party of its intention to do so if the other
         party:

         50.1     Commits a breach of any of the provisions of this Agreement
                  and fails to rectify the breach (if capable of being
                  rectified) within 30 days of being required to do so in
                  writing other than, in the case of PLL, a failure to meet the
                  target sales as set out in Schedule D;

         50.2     Commits an act of bankruptcy or fails to contest within ten
                  working days of service of any petition in liquidation;

         50.3     Becomes the subject of any proceedings to obtain an order or
                  resolution for its winding up (except as part of a bona fide
                  reconstruction scheme);

         50.4     Has a receiver/manager, official manager or provisional
                  liquidator appointed over the whole or part of its
                  undertakings or assets;

         50.5     Has an execution or other process of any court or authority or
                  any distress levied upon any of its property without it being
                  paid out, set aside or withdrawn within 14 days of its issue;

         50.6     Has a substantial part of its assets resumed, confiscated or
                  forfeited;

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        18
<PAGE>   20
         50.7     Agrees with the other party in writing to terminate this
                  Agreement at the end of any Contract Year; or

         50.8     After remedying any default in respect to which notice
                  requiring it to remedy such default was given, continues to
                  engage in the same non-compliance whether or not corrected
                  after such notice.

CONSEQUENCES OF TERMINATION OR EXPIRATION
51.0     In the event that this Agreement expires or is terminated:

         51.1     All rights of PLL under this Agreement will terminate;

         51.2     PLL will forthwith;

                  (a)      Pay to EVI any outstanding Research and Development
                           Contributions, or fees in respect of R&D, or Royalty
                           Fees or Minimum Guaranteed Royalty Fees, or charges
                           due to NRC or EVI at the effective date of
                           termination or expiration within 30 days of the
                           effective date of termination or expiration;

                  (b)      Cease to hold itself out as a licensee of the
                           Licensed Products or that it is associated with NRC
                           or EVI in any way;

                  (c)      Cease using NRC's or EVI's Intellectual Property and
                           the Licensed Products except those Licensed Products
                           or Products jointly owned by PLL;

                  (d)      Return to NRC and EVI all documents and other
                           material or matters relating to their respective
                           Intellectual Property and the Licensed Products or
                           Products except those Licensed Products or Products
                           jointly owned by PLL.

52.0     Termination or expiration of this Agreement shall be without prejudice
         to any claim any party may have against the other or others under this
         Agreement as at the date of effective termination or expiration.

GENERAL ACKNOWLEDGEMENTS
53.0     Each of the parties acknowledges that:

         53.1     This Agreement contains all the terms conditions and
                  obligations of the parties.

         53.2     It shall make, do perform and execute all documents acts
                  matters and things required to ensure that no term of this
                  Agreement shall be breached by it.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        19
<PAGE>   21
NOTICES
54.0     Any notice, demand or other document under or relating to this
         Agreement will be sufficiently served if delivered personally or if
         sent by E-mail, fax, or prepaid registered letter to the party to be
         served at the address of such party at such address as may from time to
         time be notified in writing by such party to the other parties.

55.0     Any notice, demand or other document will be deemed to have been served
         at the time of delivery or, if service is effected in any other manner
         described, at the time when it would in the ordinary course be
         delivered.

AMENDMENT
56.0     This Agreement may only be varied by the written agreement of the
         parties.

APPROVALS AND CONSENT
57.0     Except when the contrary is stated in this Agreement, a party may give
         or withhold an approval or consent to be given under this Agreement in
         that party's absolute discretion and subject to those conditions
         determined by the respective party.

58.0     A party is not obliged to give its reasons for giving or withholding a
         consent or for giving a consent subject to conditions.

COUNTERPARTS
59.0     This Agreement may be executed in a number of counterparts and if so
         executed, the counterparts taken together constitute one Agreement.

NO WAIVER
60.0     No failure by a party to exercise any power given to it or to insist
         upon the strict compliance by the other or others with any obligations
         or conditions and no customary practice of the parties or variances
         with the terms of this Agreement shall constitute a waiver of that
         party's right to demand exact compliance with the terms of this
         Agreement other than in relation to breaches which have been waived nor
         shall a waiver by it of any particular default affect or impair its
         right in respect of any subsequent default of the same or different
         nature, nor any delay or omission by that party to exercise any right
         arising from default shall affect or impair its rights as to the said
         default or any subsequent default.

FURTHER ASSURANCE
61.0     Each party shall promptly execute all documents and do all things that
         another party from time to time reasonably requests to effect, perfect
         or complete this Agreement and all transactions incidental to it.

LEGAL COSTS
62.0     The Parties shall each pay all their own legal and other expenses
         relating directly or indirectly to the negotiation, preparation and
         execution of this Agreement and all documents incidental to it.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        20
<PAGE>   22
SEVERANCE
63.0     In the event of illegality, each of the terms of this Agreement is
         severable from the other terms of this Agreement and the severance of
         one term does not affect the other terms.

DISPUTE RESOLUTION
64.0     The parties agree that any dispute arising out of or relating to this
         Agreement shall be resolved solely by:

         64.1     Negotiation between the chief executive officers of the
                  parties in good faith discussions, such discussions to be held
                  within 5 working days of one party notifying the other of a
                  dispute and the nature of such dispute;

         64.2     If the parties fail to resolve the dispute through mediation
                  within 120 working days, either party shall have the right to
                  pursue any other remedies available to it.

65.0     Should PLL confirm its wish to take up the License Rights as per this
         Agreement, PLL shall, after the Confirmation Date and after receipt of
         the sum of $1 to be paid by EVI to PLL, issue to EVI 100,000 fully paid
         Class B ordinary shares in the capital of PLL in consideration for the
         support provided to PLL by EVI. Such 100,000 fully paid Class B shares
         of PLL are as presently constituted, adjusted as appropriate to give
         effect to share subdivisions, consolidations, mergers and
         amalgamations, stock dividends, distributions in property and other
         corporate changes.

66.0     This Agreement shall be governed by the laws of the Province of
         Ontario, Canada, except that any questions affecting the construction
         or effect of any of the Patents shall be determined by the law of the
         country in which the Patent shall have been granted.

Agreement for Research, Development and Licensing of Technologies,
dated October 13, 1999                                                        21
<PAGE>   23
                                   SCHEDULE B

                        RESEARCH AND DEVELOPMENT PROGRAM

DEVELOPMENT OF COMMERCIAL Li(x)CR(y)Mn(z)O(2) CATHODE MATERIALS

TIMESCALE:

9 months

OVERALL GOAL:

To prepare reproducible pilot plant batches (200 kg) of Li(x)Cr(y)Mn(z)O(2)-
based cathode material meeting or exceeding the following market-driven
requirements:

-    200 mAh/g capacity at 25 (degree)C using a 0.2C rate

-    140 mAh/g capacity at -20 (degree)C using a 0.2C rate

-    capacity at 1C rate >90%  of capacity at 0.2C rate

-    maximum charging voltage of 4.3 V

-    smooth discharge curve between ca. 4.2 and 2.8 V

-    fade rate <10% at 55 (degree)C over 100 cycles

-    safety better than LiCoO(2)

-    cost of production lower than LiCoO(2)

CORE PERSONNEL RESOURCES:

NRC

-    Rod McMillan (Project Manager for NRC)

-    Isobel Davidson (Senior Research Officer) 75%

-    Yves Grincourt (Research Assistant-Electrochemical) 75%

-    Post-doctoral fellow 100%

-    Technical Officer 1 100%

-    Technical Officer 2 100%

PLL

-    Paul Pickering (Project Manager for PLL)

-    Brett Ammundsen (Materials Development) 75%

-    Research Scientist (Materials Development) 75%

-    Hans Desilvestro (Electrochemical) 60%

-    Research Technician 1 (Synthetic) 100%

-    Research Technician 2 (XRD-structural analysis) 75%

-    Research Technician 3 (Electrochemical) 90%

-    Research Technician 4 (Electrochemical) 90%

-    David Hassell (Process Engineering) 75%

-    Process Engineer 100%

-    Process Technician 1 100%

-    Process Technician 2 100%

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              23
<PAGE>   24
This project will be jointly managed between NRC and PLL. NRC's representative
will be Dr Rod McMillan and PLL's representative will be Dr Paul Pickering. Dr
McMillan will be responsible for work performed at NRC, Dr Pickering will be
responsible for work performed at PLL

LABORATORY AND EQUIPMENT RESOURCES:

NRC

-    Preparative labs

-    Laboratory furnaces

-    Benchtop spray dryer

-    Electrochemical testing facility

-    AC impedance spectrometer

-    X-ray diffraction (XRD)

-    Thermal analysis (TGA-DSC)

-    Accelerated rate calorimeter (ARC)

-    AA

-    BET surface area

-    Particle sizer

-    Gas pycnometer

-    Scanning electron microscope (SEM)

-    X-ray photoelectron spectrometer (XPS)

PLL

-    Preparative labs

-    Laboratory furnaces

-    Large-scale furnaces

-    Electrochemical testing facility

-    AC impedance spectrometer

-    X-ray diffraction

-    AA and ICP

-    High-resolution SEM (University of Auckland)

PROGRAM

The program is divided into inter-related tasks. Each task has well-defined
objectives and to each task are assigned persons who will be overall responsible
for guiding and coordinating the task to ensure that the objectives are met
within the timescale, and that relevant information is communicated to those
responsible for related tasks. While responsibility for individual tasks has
been assigned variously to the NRC and PLL, it is nonetheless envisaged that
work will be cooperative with contributions from both parties to all tasks.

For approximately the first half of the program, a strong effort at both centres
will be directed toward materials development at the laboratory scale and
electrochemical test cell development. In the second half of the program,
resources at PLL will be more focussed on scale-up of process and production,
with the NRC both contributing to this and continuing materials development.

TASK 1: DEVELOP COMPOSITIONS

Coordinators Isobel Davidson (NRC) & Brett Ammundsen (PLL)

Key objectives:

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              24
<PAGE>   25
-    Prepare Li(x)Cr(y)Mn(z)O(2)-based compounds with controlled composition and
     particle size/structure designed to exceed the minimum market-defined
     criteria for rate-related capacity and stability of capacity.

-    Determine the best composition for scale-up and commercialisation.

WORK PLAN

1.1  ESTABLISH CHEMICAL COMPOSITION RANGE FOR MATERIAL

-    PLL to reproduce Li(x)Cr(0.5)Mn(0.5)O(2) by coprecipitation, and to
     optimise coprecipitation procedure (including temperature/time/gas
     requirements for subsequent processing) to produce material showing
     equivalent or better electrochemical properties compared with spray-dried
     samples.

-    NRC to optimise spray-drying procedure (including
     temperature/time/atmosphere requirements for subsequent processing).

-    Parallel exploration of varying composition using spray drying (NRC) and
     coprecipitation (PLL).

1.2  ESTABLISH INFLUENCE OF SYNTHESIS ROUTE AND CONDITIONS

-    Simplify synthetic procedure

          -    investigate formation and stability of compositions as a function
               of temperature/time/atmosphere.

          -    analysis of each process step by XRD, AA and TGA

-    Investigate alternative process routes using readily available dry
     precursors.

1.3  INVESTIGATE ALTERNATIVE FORMULATIONS

-    Investigate partial and total substitution of Cr by Ni, Fe, Co, Ti, V or
     Al.

TASK 2: EXAMINE CRYSTAL STRUCTURE AND PARTICLE MORPHOLOGY

Coordinators Isobel Davidson (NRC) & Brett Ammundsen (PLL)

Key objectives:

-    Obtain data relevant to Task 1 and feed back to Task 1 observations and
     correlations in combination with electrochemical data from Task 3.

WORK PLAN

2.1 DETERMINE EFFECT OF COMPOSITION ON CRYSTAL STRUCTURE

-    XRD

2.2 DETERMINE EFFECT OF SYNTHESIS ROUTE AND REACTION CONDITIONS ON CRYSTAL
STRUCTURE AND PARTICLE MORPHOLOGY

-    XRD, SEM, particle size analysis, BET, oxidation state analysis

2.3 DETERMINE INFLUENCE OF ALTERNATIVE FORMULATIONS ON CRYSTAL STRUCTURE AND
PHASE STABILITY

-    XRD

TASK 3: ELECTROCHEMICAL CHARACTERISATION AND TESTING OF SAMPLES

Coordinators Hans Desilvestro (PLL) & Yves Grincourt (NRC)

Key objectives:

-    Obtain data relevant to Task 1 and feed back to Task 1 observations and
     correlations in combination with structural/morphological data from Task 2.

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              25
<PAGE>   26
WORK PLAN

3.1 ESTABLISH REPRODUCIBILITY OF ELECTROCHEMICAL DATA BETWEEN NRC AND PLL.

-    Optimise electrode formulation and cell configuration.

          -    Exchange of electrodes, cells, and cell hardware between NRC and
               PLL

3.2 OPTIMISATION OF TEST CELL ASSEMBLY

-    Investigate electrochemical conditions to increase rate-related capacity
     and minimise capacity fade

          -    Optimise stack pressure

          -    Optimise for Li metal and Carbon anodes

3.3 INVESTIGATION OF INTERCALATION MECHANISMS AND RATE-LIMITING FACTORS

-    In-situ pulse experiments on different time scales during charge-discharge

-    AC impedance specroscopy

-    dQ/dV plots

-    XRD, chemical analysis, and thermal stability of cycled materials at
     various states of charge and as a function of first charge conditions

3.4 EXTENDED CYCLING TESTS

-    Determine influence of composition and synthesis conditions on temperature-
     and rate-related capacity, and on cycling stability.

TASK 4: DEVELOP SYNTHETIC PROCEDURES TOWARD PRODUCTION PROCESS

Coordinator Brett Ammundsen (PLL)

Key objectives:

-    Reproduce compounds prepared in Task 1 (retaining electrochemical
     performance characteristics) using commercially viable synthesis procedures
     streamlined toward scale-up and production.

TASK 5: SCALE-UP TRIALS (100 g TO 5 kg)

Coordinators David Hassell and Brett Ammundsen (PLL)

Key objectives:

-    Prepare Li(x)Cr(y)Mn(z)O(2)-based compounds developed in Task 1 (and Task
     9) as reproducible 100 g and 5 kg batches.

TASK 6: SCALE UP TO 100 T PER ANNUM PILOT PLANT

Coordinator David Hassell (PLL)

Key objectives:

-    Produce reproducible 200 kg batches of the selected material (retaining
     electrochemical performance characteristics of the small batch samples) in
     the pilot plant.

TASK 7: VERIFY REPRODUCIBILITY OF COMPOSITION, STRUCTURE & MORPHOLOGY FOR
SCALE-UP SAMPLES

Coordinators Isobel Davidson (NRC) & Brett Ammundsen (PLL)

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              26
<PAGE>   27
Key objectives:

-    Obtain data for samples produced in Tasks 5 & 6 and feed back to Tasks 5 &
     6 observations and correlations.

TASK 8: ELECTROCHEMICAL TESTING OF SCALE-UP SAMPLES

Coordinator Hans Desilvestro (PLL)

Key objectives:

-    Obtain data for samples produced in Tasks 5 & 6 and feed back to Tasks 5 &
     6 observations and correlations.

WORK PLAN

8.1 EXTENDED CYCLING TESTS

-    Determine reproducibility and influence of synthesis conditions on
     temperature- and rate-related capacity, and on cycling stability.

TASK 9: CONTINUED MATERIAL DEVELOPMENT TO ENHANCE PROPERTIES

Coordinator Isobel Davidson (NRC)

Key objectives:

-    Continue development of Li(x)Cr(y)Mn(z)O(2)-based compounds to further
     improve electrochemical characteristics after achievement of initial
     performance goals.

-    Feed new developments into the loop of scale-up to commercial product.

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              27
<PAGE>   28
Gantt Chart: Development of commercial Li(x)Cr(y)Mn(z)O(2) cathode materials

<TABLE>
<CAPTION>

<S>                                       <C>
Task 1 (compositions) NRC+PLL...........  Aug '99 - Dec '99
Task 2 (structure-morphology) NRC+PLL...  Aug '99 - Dec '99
Task 3 (electrochemical) NRC+PLL........  Aug '99 - Apr '00
Task 4 (commercial synthetic procedures)
 NRC+PLL................................  Sep '99 - Dec '99
ms stable rate-related capacity
 objectives achieved....................  Dec '99
ms composition for scale-up
 determined.............................  Dec '99
ms precursor preparation defined for
 scale-up...............................  Dec '99
Task 5 (pre-scale-up trials 100 g to
5 kg) PLL................................ Aug '99 - Apr '00
Task 6 (scale up to pilot plant) PLL....  Jan '00 - Apr '00
Task 7 (reproducibility of scale-up
 samples) PLL...........................  Aug '99 - Apr '00
Task 8 (electrochemical testing scale-up
 samples) PLL...........................  Aug '99 - Apr '00
ms reproducible pilot plant batches
 produced...............................  Mar '00
Task 9 (continued material development)
 NRC....................................  Jan '00 - Apr '00
</TABLE>

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              28
<PAGE>   29
                                   SCHEDULE C

                                  ROYALTY FEES

ROYALTY FEES OF EACH CONTRACT YEAR TO BE CALCULATED AS:

a)   33% of the license fees earned by PLL from the sub-licensing to a third
     party of the rights to the Licensed Products whether such fees are paid by
     the sub-licensee in one sum or by installments, and

b)   4% of Net Sales where Licensed Products or Products are manufactured by
     PLL, any related party of PLL or by any other party.

PROVIDED THAT

1)   When the amount of Royalty Fees payable by PLL to EVI re any Contract Year
reaches the higher of $1 million or the Minimum Guaranteed Royalty Fees for that
Contract Year, the percentage of the license fees payable by PLL to EVI under
paragraph a) above shall then reduce from 33% to 25% on the balance of the
license fees upon which Royalty Fees are payable to EVI during that Contract
Year; and

2)   "Net Sales" shall mean gross sales of Licensed Products or Products less
sales taxes, freight, insurances, reasonable sales persons' or agents'
commissions and packaging costs; and

3)   In the event that PLL or any related party of PLL uses the Licensed
Products or Products in its manufacture of cells or batteries, the Royalty Fees
payable to EVI shall be the higher of (1) 4% of the best price that PLL or any
related party of PLL or any licensed manufacturer of the Licensed Products or
Products sells the Licensed Products or Products calculated on the Licensed
Products or Products used by PLL or any related party of PLL in its
manufacturing process, or (2) 1% of the Net Sales of cells or batteries
utilising the Licensed Products or Products which are sold by PLL or any related
party of PLL.

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              29
<PAGE>   30
                                   SCHEDULE D

                                  TARGET SALES

<TABLE>
<CAPTION>
 PERIOD OR CONTRACT YEAR ENDING       GUARANTEED CELL        CELL VALUES BASED ON       GUARANTEED MINIMUM
            31 MARCH                VOLUMES CONTAINING       THE GUARANTEED CELL       ROYALTY FEES BASED ON
                                     LICENSED CATHODE.       VOLUMES AT A COST OF     CELL COST OF $2.00 PER
                                                              $2.00 PER CELL.                  CELL.
                                    (See Note 1 below)        (See Note 1 Below)        (See Note 1 Below)
                                    ------------------        ------------------        ------------------
<S>                                 <C>                      <C>                      <C>
              2000                          Nil                      Nil                    $  200,000
              2001                          Nil                      Nil                    $  100,000
              2002                         500,000               $ 1,000,000                $  100,000
              2003                       5,000,000               $10,000,000                $  200,000
              2004                      10,000,000               $20,000,000                $  400,000
              2005                      25,000,000               $50,000,000                $1,000,000
              2006                      50,000,000              $100,000,000                $2,000,000
              2007                      75,000,000              $150,000,000                $3,000,000
      2008 and thereafter           (See Note 2 below)        (See Note 2 below)        (See Note 2 below)
</TABLE>

NOTES:

1.       An indicative cell cost value of $2.00 per cell has been used in
         calculating the Minimum Guaranteed Royalty Fees. If the cell cost
         values reduce to below $2.00 per cell and there is no corresponding
         increase in the sale volumes of the cells so that the Minimum
         Guaranteed Royalty Fees are achieved, then the parties shall negotiate
         in good faith to either reduce the Minimum Guaranteed Royalty Fees or
         to convert this Agreement to a non-exclusive arrangement. The term
         "cost" means the aggregate of the raw materials cost, costs of
         conversion and other costs including production overheads incurred in
         the manufacture of the cell.

2.       The above targets shall, in Contract Years ending 31 March 2008 and
         later, increase each Contract Year by a percentage equivalent to the
         overall world market $ of sales increase of similar Products, applied
         to the previous Contract Year's actual values.

This is the final page of the Agreement.

Agreement for Research, Development and Licensing of Technologies, dated October
13, 1999

                                                                              30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]