Document:

Exhibit 10.4

                                LICENSE AGREEMENT

      THIS LICENSE AGREEMENT (the "Agreement") is made this 29th day of
December, 2000 by and between Ovation Products Corporation, a Delaware
corporation with a principal address of 395 East Dunstable Road, Nashua, New
Hampshire 03062 ("Ovation" or "Licensor") and S J Electro Systems, Inc., a
Minnesota corporation with a principal address of P.O. Box 1619, Detroit Lakes,
Minnesota 56502 ("SJE" or "Licensee").

                                   WITNESSETH

      WHEREAS, Ovation and SJE are parties to a Series A Preferred Stock
Purchase Agreement, Promissory Note, Stock Pledge Agreement, Confidentiality
Agreement, and Intellectual Agreement (collectively the "Stock Purchase
Documents"), a Strategic Alliance Agreement, a Distribution Agreement and this
Agreement (collectively the "Strategic Alliance Documents") all of even date
herewith;

      WHEREAS, capitalized terms used herein and not otherwise defined shall
have the same meaning as may be set forth in the Stock Purchase Documents or the
Strategic Alliance Documents; and

      WHEREAS, this Agreement is an integral part of the transactions
contemplated by each of the Stock Purchase Documents and Strategic Alliance
Documents.

      NOW, THEREFORE, in consideration of the respective covenants and
agreements of the parties set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties, intending to be legally bound, hereby agree as follows:

      1.    GRANT OF LICENSE. Subject to the terms and conditions as hereinafter
            set forth, the Licensor hereby grants to the Licensee an exclusive
            license to the Licensor's intellectual property which is now or
            hereafter used or useful in the Septic Appliance, as defined in the
            Strategic Alliance Agreement, including any and all patent
            applications, patents, copyrights, know-how and trade secrets, for
            the Term, as defined below, to manufacture, assemble, warehouse,
            market, distribute, and sell the Products in the Territory, unless
            this Agreement is sooner terminated as hereinafter provided (the
            "License").

      2.    TERM. The term of this Agreement ("Term") begins on the date that
            both parties agree in writing that sales in commercial quantities of
            Products, as defined in the Distribution Agreement, are first made
            (the "Commencement Date," which shall be mutually agreed and
            recording in writing as close to the date agreed upon as
            practicable) and ends on the later of (a) the seventh (7th)
            anniversary of the Commencement Date or (b) the date on which
            Licensee has received $50,000,000 in Profit Sharing Payments, as
            defined in the Strategic Alliance Agreement, provided that in no
            event shall the Term extend beyond the tenth (10th) anniversary of
            the Commencement Date. Upon the expiration of the Term, or the
            sooner termination of this Agreement as provided in Section 3 below,
            the License granted herein shall automatically terminate and expire.

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      3.    TERMINATION. Prior to the commencement of the Term, this Agreement
            may only be terminated upon the mutual consent of the Licensor and
            the Licensee. During the Term, this Agreement may be terminated (i)
            by the Licensee upon six (6) months prior written notice, (ii)
            immediately by the Licensor in the event that the Licensor exercises
            its option to terminate the Distribution Agreement pursuant to
            Section 5.1 thereof, or (iii) immediately by the Licensor in the
            event that Licensee does not cure a material breach of the
            Distribution Agreement within thirty (30) days of receipt of written
            notice of such material breach, or (iv) upon the mutual consent of
            the Licensor and the Licensee.

      4.    PAYMENT OF ROYALTIES.

            During the Term, the Licensee agrees to pay to the Licensor a
            royalty on all sales of Product in the Territory in the amount of
            five percent (5%) of the invoice amount of such sales, net of any
            taxes, Licensee Discounts and/or freight charges.

      5.    PAYMENT OF ROYALTIES. The Licensee shall have no obligation to pay
            any royalty to the Licensor until the Licensee is paid for such
            sale. Such royalties shall be paid to the Licensor on or before the
            15th day of the calendar month after which any partial or final
            payment for such Products is received by the Licensee. In the event
            that a customer returns Products to the Licensor, the royalties
            associated with such returned Products shall be debited from the
            Licensor's royalty account. A statement showing in detail the
            royalties credit and debited, the payments made on account of
            royalties and the current status of the Licensor's royalty account
            shall be furnished to the Licensor with each royalty payment. Upon
            termination of this Agreement for any reason, the Licensee shall not
            be liable to the Licensor for any royalties not then due.

      6.    ASSIGNMENT. Neither this Agreement nor the License may be assigned
            by either party without the prior written consent of the other,
            which consent shall not be unreasonably withheld. Notwithstanding
            the foregoing, either party may assign this Agreement as part of a
            sale of substantially all of the assets of such party without
            obtaining the consent of the other. This Agreement shall be binding
            upon and inure to the benefit of the successors and permitted
            assigns of the parties.

            the Licensor for any royalties not then due.

      7.    ASSIGNMENT. Neither this Agreement nor the License may be assigned
            by either party without the prior written consent of the other,
            which consent shall not be unreasonably withheld. Notwithstanding
            the foregoing, either party may assign this Agreement as part of a
            sale of substantially all of the assets of such party without
            obtaining the consent of the other. This Agreement shall be binding
            upon and inure to the benefit of the successors and permitted
            assigns of the parties.

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      8.    HEADINGS. The headings in this Agreement are solely for convenience
            of reference and shall not affect the interpretation hereof.

      9.    WAIVER. The waiver of one party of a breach of any provision of this
            Agreement by the other party shall not operate or be construed as a
            waiver of any subsequent breach of the same or any other provision
            in this Agreement by the other party.

     10.    GOVERNING LAW. This Agreement shall be governed by and construed in
            accordance with the laws of the State of New Hampshire, without
            regard to its choice or conflicts of laws and provisions.

     11.    ENTIRE AGREEMENT. This Agreement, the Strategic Alliance Documents,
            and the Stock Purchase Documents set forth the entire understanding
            and agreement of the parties with respect to the subject matter
            hereof. This Agreement may be altered, modified or amended only by a
            written document specifically referring to this Agreement signed by
            the parties.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by the duly authorized representative, under seal, as of the day and year first
above written.

                                        OVATION PRODUCTS CORPORATION

                                        By: /s/ Allen E. Becker
                                            ------------------------------------
                                        Name: Allen Becker
                                              ----------------------------------
                                        Title: CEO
                                               ---------------------------------

                                        S J ELECTRO SYSTEMS, INC.

                                        By: /s/ Laurie Lewandowski
                                            ------------------------------------
                                        Name: Laurie Lewandowski
                                              ----------------------------------
                                        Title: CEO
                                               ---------------------------------

                                       3Exhibit 10.5

Twain's Responsibility

o     Twain will be responsible for the development and implementation of a
      comprehensive strategic plan to take Ovation into the Japanese market,
      under the direction and oversight of Ovation's management.

Basic Compensation Formula

o     It is in the interest of both parties that Twain be compensated in
      proportion to its success in building a business for Ovation in Japan. The
      following compensation schedule will apply:

Basic Compensation Formula

o     Twain will receive no consulting fees; however, Ovation will pay Twain a
      retainer of $10,000 on the first day of each month, beginning September l,
      2001. At Ovation's option, any and all such payments may be deferred until
      February l, 2002, at which time a lump-sum payment of all deferred and
      current payments will be made, and no further deferrals will be made
      unless mutually agreed.

Contingency: Ovation Unable to Pay Retainer

-     If, at any time after November 3 0, 2001, Ovation is unable to meet its
      obligations under this agreement, Twain, at its sole option, may allow
      retainer to accrue for up to six months, consecutive or non-consecutive.
      Accrued retainer becomes payable as soon as Ovation completes an
      additional round of funding. After six months of unpaid retainer, Twain
      has option to license Ovation technology at fair and reasonable cost for
      development of the Japanese market at Twain's expense and risk. Option
      will be exclusive unless explicitly precluded by some pre-existing
      agreement entered into by Ovation.

Basic Compensation Formula

o     Ovation will reimburse Twain for all out-of-pocket expenses incurred by
      Twain in its activities on Ovation's behalf, including consulting and
      advisor's fees paid to third parties. No expenses will be incurred by
      Twain without the advance approval of Ovation.

Basic Compensation Formula

o     Ovation will pay Twain a commission of 1% on all Ovation sales revenues in
      Japan up to an accumulated total of $100 million in sales. Ovation will
      pay 0.75% of the next $200 million in accumulated sales, and 0.5% of all
      sales revenues thereafter. Twain's retainer for any month will be reduced
      by the amount of any commissions paid in that month. Commissions in excess
      of retainer paid in any month will be deducted against future retainer
      payments.

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<PAGE>

Basic Compensation Formula

o     Ovation will pay Twain a one-time bonus of $1 million if total revenues in
      any period of 12 months or less reach $100 million, and a one-time bonus
      of $5 million if sales in any period of 12 months or less reach $500
      million. At Ovation's option, these bonuses may be paid in five equal
      annual installments, with the first installment to be paid within 6 months
      after the target sales volume has been achieved.

Termination: Favorable Scenario

o     The foregoing formula will remain in effect indefinitely. However, after
      sales have reached $10 million in any 12 month period, if year-to-year
      sales fail to grow for three consecutive years, Ovation may: (1) terminate
      the relationship, and cease making payments to Twain 4 years after
      advising Twain of its intention to terminate; or (2) negotiate another
      compensation arrangement that is agreeable to both parties.

Termination: Unfavorable Scenario

If, after 18 months of effort:

-     Both parties agree that the Japanese market is not worth pursuing, the
      relationship ends three months after such agreement. No further retainer
      or expenses will be paid. If Ovation then sells products, directly or
      indirectly, into Japan within 36 months, Twain receives full commission
      per above schedule.

Termination: Unfavorable Scenario

-     Twain feels market still worth pursuing and Ovation does not, retainer and
      expense reimbursement cease, but Twain has option to license Ovation
      technology at fair and reasonable cost for development of the Japanese
      market at Twain's expense and risk. Option will be exclusive unless
      explicitly precluded by some pre-existing agreement entered into by
      Ovation.

-     Ovation feels that Japanese market is worth pursuing and Twain does not,
      Ovation may discontinue the relationship on three months notice. If
      desired, Twain will assist Ovation in making transition arrangements.

Personnel Issues

o     It is agreed that William Givens (Givens) and Tomoharu Nishino (Nishino)
      will be the principal Twain Associates personnel assigned to this project,
      and that any change will be subject to prior approval by Ovation.

o     It is further recognized that Givens will play a central role in the
      development of Ovation's market position in Japan, and that, in his
      absence, the value of Twain Associates to Ovation would be significantly
      reduced.

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<PAGE>

Personnel Issues

o     It is also recognized that the ultimate value of Ovation's business in
      Japan will be determined by basic contributions made by Twain/Givens long
      before revenues are available to compensate Twain in accordance with the
      compensation formula outlined above.

o     Accordingly, it is prudent to allow for the contingency of Givens's
      involuntary incapacity, for any reason beyond his control, prior to or
      during the initial launch. The agreed intention of the parties is to
      assure that the ultimate compensation paid to Twain is commensurate with
      Givens's actual contribution prior to the time of any such incapacitation.

Personnel Issues

o     Accordingly, the following seven tasks, have been identified as the major
      requirements for a successful market entry into Japan by Ovation. Twain's
      ultimate value to Ovation will be measured by the extent to which these
      tasks are accomplished. Each task has been assigned a value approximating
      its relative importance to the overall plan.

Critical Tasks

            1.    Selection of one or more strategic                    20%
                  manufacturing partners
            2.    Negotiation of a formal agreement with the            10%
                  manufacturing partner
            3.    Securing Japanese Government clearances               20%
                  for sale and operation of Ovation products
                  in Japan
            4.    Establishment of an Ovation sales,                    20%
                  distribution, and marketing infrastructure
                  in Japan
            5.    Initial launch of Ovation products in                 10%
                  Japan
            6.    Cumulative sales of $10 million                       10%
            7.    Sales of $100 million in any 12 month                 10%
                  period

Contingency Compensation

o     In the event of Givens's incapacity prior to the completion of all seven
      of those tasks, Twain's compensation will be the amount calculated under
      the Basic Compensation Formula, multiplied by the sum of the values
      assigned to the tasks that have been accomplished prior to Givens's
      incapacity. If Givens should be incapacitated prior to completion of any
      task, Ovation will be obligated to pay no compensation other than
      retainer.

                                       3
<PAGE>

o     It is noted that tasks 1 - 4 will not necessarily be accomplished
      sequentially. It is likely that partner selection, government clearances,
      and distribution arrangements will to a significant extent be accomplished
      in parallel.

"Completion" of Tasks Defined

For purposes of calculating Twain's compensation;

-     Task 1 will be accomplished when Ovation and a prospective manufacturing
      partner initial an agreement to enter into negotiations aimed at a
      long-term partnership.

-     Task 2 will be accomplished when Ovation and a manufacturing partner sign
      a long-term agreement.

-     Task 3 will be accomplished when Ovation can legally sell its products
      into the Japanese market.

-     Task 4 will be accomplished when Ovation is capable of processing customer
      orders and delivering and servicing its products in Japan.

-     Task 5 will be accomplished upon the initial arms-length sale of an
      Ovation unit to a customer in Japan.

-     Tasks 6 and 7 are self-explanatory.

Partial credit may be given for uncompleted tasks at Ovation's option.

Alternative Strategies

o     This agreement is based on certain assumptions concerning Ovation's
      ultimate strategic posture in Japan; namely, that Ovation will establish
      an independent sales office in Japan and supply the market on a
      non-exclusive basis, subcontracting the manufacture of its products to a
      Japanese manufacturer. It is understood that some alternative posture
      (e.g., licensing, joint venture, etc.) may develop which will not permit
      Twain's compensation to be based directly on Ovation's revenues. In such
      an event it is agreed that the parties will negotiate in good faith an
      alternative compensation arrangement, which will result in an equivalent
      level of compensation for Twain.

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