Document:

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                                                                    EXHIBIT 10.1

DATED                                                               7 JULY 2000
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                        (1) CERAVISION (IRELAND) LIMITED

                                     - and -

                           (2) AUGRID OF NEVADA, INC.

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                                 PATENT LICENCE

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                               SUBJECT TO CONTRACT

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                                    CONTENTS

1. DEFINITIONS AND INTERPRETATION............................................2

2. GRANT.....................................................................4

3. OBLIGATIONS OF THE LICENSEE...............................................7

4. PAYMENTS BY THE LICENSEE..................................................9

5. RECORDS..................................................................11

6. SUB-LICENSING............................................................12

7. IMPROVEMENTS.............................................................12

8. DEFENCE OF THE PATENT(S) AND INFRINGEMENTS...............................13

9. CONFIDENTIALITY..........................................................15

10. DURATION................................................................17

11. TERMINATION.............................................................17

12. EFFECT OF TERMINATION...................................................18

13. MAINTENANCE OF PATENTS..................................................19

14. FORCE MAJEURE...........................................................20

15. ASSIGNMENT..............................................................21

16. SEVERABILITY............................................................21

17. THIRD PARTY RIGHTS......................................................21

18. PARTNERSHIP.............................................................21

19. WAIVER AND RELEASE......................................................22

20. ENTIRE AGREEMENT........................................................22

21. NOTICES.................................................................23

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22. LAW AND JURISDICTION....................................................23

SCHEDULE 1..................................................................24

Definitions.................................................................24

SCHEDULE 2..................................................................27

Patents and Applications....................................................27

SCHEDULE 3..................................................................29

Trade Marks and Requirements for Use........................................29

SCHEDULE 4..................................................................30

Royalties...................................................................30

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THIS PATENT LICENCE is made on  7 July 2000

BETWEEN:

(1) CERAVISION (IRELAND) LIMITED a company registered in the Republic of Ireland
(Registration No. 321650) whose registered office is at 1 High Street, Dublin 8
("the LICENSOR"); and

(2) AUGRID OF NEVADA, INC a company registered in the State of Nevada, USA,
whose principal office is at 140 Public Square, The Park Building, Suite 208,
Cleveland, Ohio 44114, USA (the "LICENSEE")

BACKGROUND

(A)      The Licensor is the exclusive Licensee with rights to sub-licence of
         patent applications and non-patented know-how in respect of FED's (as
         defined below), and in particular FEDs incorporating ceramic substrates
         having front layer vias and of methods of sealing a visual display
         having a glass face plate and such an FED.

(B)      As referred to herein, an FED display is comprised essentially of an
         anode or front plate sealed to a cathode or back plate, which latter
         incorporates the field effect emission device. The method of sealing is
         the subject of Sealing Patents (as defined below). The anodes and the
         cathodes in particular are compound structures. These terms are
         therefore used to refer to the respective compound components brought
         together to be sealed. Both types of components as such, and the
         cathodes in particular, are or will be the subject of the Anode and
         Cathode Patents (as defined below).

(C)      For their operation, the individual FED pixels of the cathode require
         to be controlled both individually at their turn in the cycle of
         operation and collectively to produce an image. Driver and control
         integrated circuits for this can be attached to the back of the
         cathodes of the displays. The assembled combinations of FED displays
         and the integrated circuits are the subject of Display Drive and
         Control Circuit Patents (as defined below).

(D)      This licence is concerned with both (i) manufacture of FED displays by
         sealing under the Sealing Patents of anodes and cathodes the subject of
         the Anode and Cathode Patents and (ii) assembly of the integrated
         circuits onto the cathodes after sealing to produce FED displays the
         subject of the Display Drive and Control Circuit Patents.

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(E)      The Licensor has agreed to licence the Licensee with regard to what is
         set out in (D) above upon the terms and conditions specified in this
         Agreement and this Agreement is entered into pursuant to the Exclusive
         Project Agreement and in conjunction with the Machinery Lease
         Agreement.

IT IS HEREBY AGREED as follows:-

1.       DEFINITIONS AND INTERPRETATION

         1.1      In this agreement, the following words and phrases shall have
                  the following meanings:

                  "AGREEMENT YEAR(S)" means the 12 month period ending on the
                  first and subsequent anniversaries of the Effective Date of
                  this agreement.

                  "CERAVISION GROUP" means all those corporate entities which
                  are or during the course of this Agreement become members of
                  the Group of companies of which Ceravision Limited is the
                  parent company.

                  "CUSTOMER(S)" means a person, firm or company in the Sales
                  Territory to whom the Licensee agrees to supply the Products.

                  "DISPLAY DRIVE AND CONTROL CIRCUIT PATENTS" has the meaning
                  ascribed to it in Schedule 1.

                  "EFFECTIVE DATE" means the earlier of the Phase One Completion
                  as defined the Exclusive Project Agreement or 1 July 2001.

                  "EXCLUSIVE PROJECT AGREEMENT" means the agreement between
                  Ceravision Limited and the Licensee dated 6 July 2000.

                  "EXCLUSIVE TERM" has the meaning ascribed to it in Schedule 1.

                  "FEDS" means field effect emission devices for visual
                  displays.

                  "FIELD OF USE" has the meaning ascribed to it in Schedule 1.

                  "LICENSEE'S IMPROVEMENT(S)" means all incremental
                  improvements, modifications or adaptions to any part of the
                  Products or Processes including all major or minor advances in
                  technology relating thereto and inventions which are
                  patentable in their

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                  own right, all or any of which might reasonably be of
                  commercial interest to the Licensor in the operation of the
                  Processes and which may be made or acquired (with free rights
                  of disposal) by either party during the term of this
                  agreement.

                  "MANUFACTURING TERRITORY" has the meaning ascribed to it in
                  Schedule 1.

                  "MINIMUM ROYALTIES" means the minimum payment for each
                  Agreement Year as specified in Part 2 of Schedule 3.

                  "NON-EXCLUSIVE TERM" has the meaning ascribed to it in
                  Schedule 1.

                  "PATENT(S)" means the Sealing Patents and the Anode and
                  Cathode Patents and the Display Drive and Control Circuit
                  Patents.

                  "PROCESSES" has the meaning ascribed to it in Schedule 1.

                  "PRODUCTS" has the meaning ascribed to it in Schedule 1.

                  "PROPRIETARY COMPONENTS" means both (i) Proprietary Anodes and
                  Cathodes and (ii) Proprietary Integrated Circuits, which are
                  the subject of the Display Drive and Control Circuit Patents.

                  "PROPRIETARY ANODES AND CATHODES" means anodes and cathodes
                  which are the subject of the Anode and Cathode Patents.

                  "PROPRIETARY INTEGRATED CIRCUITS" means integrated circuits
                  which are the subject of the Display Drive and Control Circuit
                  Patents.

                  "ROYALTY" means all amounts payable by the Licensee or any
                  sub-licensee as detailed in Schedule 4.

                  "SALES TERRITORY" has the meaning ascribed to it in Schedule
                  1.

                  "SEALING MACHINES" has the meaning ascribed to it in Schedule
                  1.

                  "SEALING PATENTS" has the meaning ascribed to it in Schedule
                  1.

                  "TARGET" has the meaning ascribed to it in Schedule 1.

                  "THE TERM" has the meaning ascribed to it in Schedule 1.

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         1.2      Any reference to a Capitalised term which is not defined above
                  in this Agreement is a reference to a term defined in the
                  Exclusive Project Agreement.

         1.3      Words in the singular include the plural and vice versa and
                  words in one gender include any other gender;

         1.4      Any reference to a statute, statutory provision or
                  sub-ordinate legislation includes such legislation as amended
                  and in force from time to time and any legislation which
                  modifies, consolidates (with or without modification),
                  re-enacts or supersedes it except to the extent that it would
                  impose any new or extended obligation, liability or
                  restriction on, or would otherwise adversely affect the rights
                  of, any party to this agreement;

         1.5      A reference to clauses and schedules are to clauses and
                  schedules of this agreement and references to sub-clauses and
                  paragraphs are references to sub-clauses and paragraphs of the
                  clause or schedule in which they appear;

         1.6      The table of contents and headings are for convenience only
                  and shall not affect the interpretation of this agreement;

2.       GRANT

         2.1      The Licensor grants to the Licensee subject as provided below:

                  2.1.1    under the Sealing Patents, the exclusive, during the
                           Exclusive Term and non-exclusive thereafter during
                           the Non-Exclusive Term, right and licence in the
                           Manufacturing Territory to manufacture Products for
                           use in the Field of Use by sealing together anodes
                           and cathodes by means of Process I, together with the
                           right in the Sales Territory to sell the Products for
                           use in the Field of Use, but not including any right
                           to manufacture sealing machines the subject of the
                           Sealing Patents

                  2.1.2    under the Anode and Cathode Patents, the exclusive,
                           during the Exclusive Term, and non-exclusive
                           thereafter during the Non-Exclusive Term, right and
                           licence in the Manufacturing Territory to manufacture
                           Products for use in the Field of Use by sealing
                           together Proprietary Anodes and Cathodes by means of
                           Process II to make display devices protected by the
                           Anode and

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                           Cathode Patents, together with the right in the Sales
                           Territory to sell the Products incorporating the
                           Proprietary Anodes and Cathodes for use in the Field
                           of Use, but not including any right to manufacture
                           the Proprietary Anodes and Cathodes;

                  2.1.3    under the Display Drive and Control Circuit Patents,
                           the exclusive, during the Exclusive Term, and
                           non-exclusive thereafter during the Non-Exclusive
                           Term, right and licence in the Manufacturing
                           Territory to manufacture Products for use in the
                           Field of Use by assembly of Proprietary Integrated
                           Circuits and non-proprietary integrated circuits onto
                           the cathodes of the Products manufactured under
                           clauses 2.1.1 and 2.1.2 by means of Process III to
                           make display devices protected by the Display Drive
                           and Control Circuit Patents, together with the right
                           in the Sales Territory to sell the Products having
                           such integrated circuits attached for use in the
                           Field of Use, but not including any right to program
                           or otherwise produce the Proprietary Integrated
                           Circuits,

                  which rights in this Clause 2.1 must be exercised jointly and
                  not individually.

         2.2      Licensor further grants to Licensee, subject to Licensee's
                  performance of its obligations hereunder, a non-transferable,
                  indivisible and exclusive, during the Exclusive Term and
                  non-exclusive during the Non-Exclusive Term, right and
                  license, without the right to sublicense, to use the Trade
                  Marks set forth in Schedule 3 in connection with the
                  manufacture of Products in the Manufacturing Territory for use
                  in the Field of Use and the sale of such Products in the Sales
                  Territory for use in the Field of Use.

         2.3      In consideration of the Licence granted above, the Licensee
                  agrees not to manufacture, use or sell any Products or
                  articles outside the Field of Use.

         2.4      The Licensor reserves the right to terminate the exclusivity
                  of this Licence if the Licensee competes within the
                  Manufacturing Territory with the Licensor or any undertakings
                  connected with the Licensor or with other undertakings in
                  respect of research and development, production, use or
                  distribution of products competing with the Processes or the
                  Products and further the Licensor reserves the right to
                  require, at any time, that the Licensee prove to the
                  satisfaction of the Licensor that

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                  none of the Patents is being used by the Licensee, or on its
                  behalf, for the production of any products (or the provision
                  of any services), other than the Products. Licensor and
                  Licensee mutually agree that the restrictions contained at the
                  end of Clause 2.1, and in Clause 2.3 and this Clause 2.4, are
                  reasonable, non-burdensome, and necessary for the proper
                  implementation of the Licence granted herein, and in order to
                  protect Licensor's business and its competitive position in
                  the marketplace. The covenants and agreements contained in
                  this Clause 2 shall each be construed and deemed to consist of
                  a series of separate covenants, one for each type of product
                  and for each region included within the geographic area
                  described above. If a court or arbitrator decides that any
                  provision or restriction in this Clause 2 is unreasonable or
                  unenforceable, the parties agree that the court or arbitrator
                  has the power to delete words and modify this Clause 2 in a
                  manner that comes closest to the intent of the parties as
                  expressed herein while rendering this Agreement as modified
                  valid and enforceable. If a court or arbitrator refuses to
                  enforce all of these separate covenants included herein,
                  Licensor and Licensee agree that certain covenants, which if
                  eliminated would permit the remaining covenants to be
                  enforced, will be deemed eliminated from this Clause 2 for
                  purposes of that enforcement.

         2.5      In the event the Display Drive and Control Circuit Patents do
                  not issue in the United States Patent Office, then the parties
                  agree that the requirement to jointly exercise the Display
                  Drive and Control Circuit Patents together with the Sealing
                  Patents and the Anode and Cathode Patents as set forth in
                  Clause 2.1 shall no longer apply and shall be severable from
                  the other provisions herein, and the grant under Clause 2.1.3
                  shall be of no further force or effect. In such event, the
                  Royalties required to be paid by Licensee to Licensor pursuant
                  to Schedule 4 shall be reduced by ten percent (10%). [For
                  example, for the first 500,000 Products produced in any
                  Agreement Year, the Royalty shall be $8.71 per Product instead
                  of $9.68 per Product.] In the event the Display Drive and
                  Control Circuit Patents do not issue in the United States
                  Patent Office, Licensee shall still be required under Clause
                  2.1 to jointly exercise the rights and Licence under the
                  Sealing Patents and the Anode and Cathode Patents.

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3.       OBLIGATIONS OF THE LICENSEE

         3.1      The Licensee shall use its best endeavours to exploit the
                  Processes and increase the production and sales of the
                  Products within the Sales Territory subject to the terms of
                  this agreement.

         3.2      The Licensee shall ensure that the Products comply with the
                  requirements and standards set by national and public
                  authorities wherever the Licensee intends to sell the Products
                  and shall provide the Licensor with copies of all
                  communications to and from regulatory authorities relating to
                  the Products.

         3.3      The Licensee shall ensure that all Products supplied by the
                  Licensee are manufactured to the highest standards of quality
                  and workmanship. The Licensee shall upon reasonable notice
                  from the Licensor give the Licensor or its authorised
                  representative free access at any reasonable time to any place
                  where the manufacture of the Products by the Licensee and
                  every permitted sub-licensee shall be carried on for the
                  purpose of ensuring that the Licensee, and any permitted
                  sub-licensee, is observing these obligations.

         3.4      If the Licensee develops or designs during the term of this
                  Agreement further products within the Field of Use it shall
                  immediately by notice in writing to the Licensor give full
                  details of the nature and specification of such products. If
                  the Licensee wishes to manufacture such new products, provided
                  that the Licensor is satisfied that these Products fall within
                  the Field of Use they will be added as Products by written
                  amendment.

         3.5      Following the commencement of production of the Products, the
                  Licensee shall achieve the Target in each Agreement Year.

         3.6      The Licensee shall ensure that all literature and packaging
                  prepared by the Licensee and relating to the Products includes
                  a reference to relevant patent pending or patent numbers and
                  states that such Products are made under licence from the
                  Licensor.

         3.7      The Licensee shall be required to include or apply the Trade
                  Marks set forth in Schedule 3 on all Products and their
                  packaging produced under this Agreement and under the
                  Exclusive Project Agreement. Such required use of the Trade
                  Marks shall include, without limitation, the prominent display
                  of the Trade Marks on the boot-up

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                  screen or introductory screen displayed on the Products during
                  their use. The parties agree that the size, placement, order
                  of appearance or display, and other manner of use of the Trade
                  Marks by Licensee must be pursuant to the requirements and
                  instructions communicated to Licensee from time to time by
                  Licensor. In order to maintain and enhance the goodwill
                  associated with the Trade Marks, Licensee agrees that Licensor
                  must approve all uses of the Trade Marks on the Products and
                  their packaging and on any sales or promotional materials
                  before they are sold or distributed by Licensee. Title to the
                  Trade Marks shall always remain with Licensor. Licensee shall
                  not acquire any right or interest in the Trade Marks except
                  the limited right to use the same pursuant to this Agreement.
                  Licensee agrees that Licensee's use of the Trade Marks shall
                  inure to Licensor's exclusive benefit. Licensee agrees that it
                  will never use the Trade Marks or any similar names or marks
                  in connection with the manufacture, marketing, sale or
                  distribution of any products or services except for the
                  Products for use in the Field of Use. Licensee shall not use
                  any trade name, corporate or business name identical with or
                  confusingly similar to the Trade Marks. Licensee further
                  agrees that it shall not have the right to modify any of the
                  Trade Marks without Licensor's prior written consent. In
                  addition, Licensee agrees that it will not challenge or
                  otherwise contest the validity, ownership or enforceability of
                  the Trade Marks or of any current or subsequent applications
                  or registrations of the Trade Marks or any variations thereof
                  filed by Licensor or its affiliates, and Licensee further
                  agrees not to directly or indirectly apply for or attempt to
                  register for itself or others any of the Trade Marks or any
                  similar names or marks anywhere in the Sales Territory.

         3.8      The Licensee shall provide such advertising and publicity as
                  may reasonably be expected to bring the Products to the
                  attention of as many purchasers and potential purchasers as
                  possible. All such advertising shall be in accordance with the
                  law of the relevant country and shall be submitted to the
                  Licensor for its written approval before publication.

         3.9      The Licensee shall be exclusively responsible for the
                  technical and commercial operation of the Processes that might
                  be necessary or desirable for all Products sold or supplied by
                  the Licensee and accordingly the Licensee shall indemnify the
                  Licensor in respect of all costs damages and expenses incurred
                  as a result of any claims by third parties in tort or
                  otherwise against the Licensor arising in any way

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                  out of the use of any of the Patent(s) and/or sale or use of
                  the Products by the Licensee.

         3.10     Upon commencement of manufacturing the Products, the Licensee
                  shall take out and maintain public liability, Products
                  liability and other insurance in connection with the Products
                  and their sale to and use by third parties anywhere in the
                  Sales Territory, and ensure that at all times it complies with
                  all the terms and conditions of such policies of insurance.
                  Such insurance will provide coverage for not less than
                  $5,000,000 (US dollars) per occurrence for personal injury or
                  property damages.

         3.11     The Licensee shall promptly inform the Licensor in writing of
                  the addresses of all location(s) at which the Processes are
                  being used by or on behalf of the Licensee, and of any changes
                  or additions.

         3.12     If Licensee purchases all of its requirements for Proprietary
                  Integrated Circuits from Licensor or its nominated suppliers
                  as required under the Exclusive Project Agreement, then the
                  parties agree that the Royalties payable by Licensee to
                  Licensor hereunder shall be as set forth in Schedule 4.
                  However, if Licensee wishes to purchase from other third
                  parties and assemble non-proprietary integrated circuits onto
                  the cathodes of the Products, Licensee shall have the right to
                  do so, provided that in such event the parties agree that the
                  Royalties set forth in Schedule 4 payable by Licensee to
                  Licensor shall be increased by One Dollar and Zero Cents (US
                  $1.00) per Product for each Product that incorporates a
                  non-proprietary integrated circuit that Licensee purchases
                  from someone other than Licensor or its nominated suppliers.

4.       PAYMENTS BY THE LICENSEE

         4.1      The Licensee shall during the continuance of this agreement
                  pay to the Licensor the Royalty. In consideration for entering
                  into this Agreement and for the favourable terms hereof, and
                  as additional consideration for the business advantages that
                  Licensee will enjoy by gaining access to the Processes from
                  Licensor pursuant to the provisions of this Agreement in order
                  to be able to plan in advance to utilize the Processes, and
                  for the competitive advantages that Licensee acknowledges it
                  will have hereunder by having access to the Processes under
                  the terms hereof even before the issuance of any Patent(s),
                  then regardless of whether any Patent(s) issue in the

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                  United States Patent Office, Licensee agrees to pay to
                  Licensor a minimum quarterly Access and Reservation of Rights
                  Fee in the amount and at the times set forth in Schedule 4,
                  Part 2.

         4.2      Payments due under clause 4.1 shall be made within 7 days of
                  the end of each calendar quarter in respect of royalties
                  accruing on Products produced.

         4.3      If the royalties payable under clause 4.2 are less than the
                  Minimum Royalties for that calendar quarter, the Licensee
                  shall pay the difference between the Minimum Royalties and the
                  royalty due under clause 4.2 at the time specified in clause
                  4.2. Minimum Royalties payments shall be regarded as royalties
                  for the period to which they relate and will not be carried
                  forward to subsequent periods.

         4.4      The payment of the Minimum Royalties payable under clause 4.3
                  on the due date is a condition precedent to the Licensee's
                  exercise of any rights under this agreement for the Agreement
                  Year in question and the failure promptly to pay such amount
                  shall entitle the Licensor immediately to terminate this
                  agreement.

         4.5      All amounts payable to the Licensor under this agreement shall
                  be:

                  4.5.1    made in US Dollars to the credit of a bank account to
                           be designated in writing by the Licensor;

                  4.5.2    calculated exclusive of sales tax, or any other tax
                           which may be payable by reference to the Products and
                           shall be paid gross without deduction of any
                           withholding or other income taxes unless supported by
                           documentary evidence in the form of official receipts
                           showing the amounts of such taxes and/or other dues
                           paid on behalf of the Licensor except where the
                           Licensee is required by law to make such deduction or
                           withholding, in which event the Licensee shall in
                           addition pay to the Licensor such amount as shall
                           result in the net amount received by the Licensor
                           being equal to the amount which would have been
                           received by the Licensor had no such deduction or
                           withholding been made.

         4.6      For the purposes of conversion into US Dollars (where
                  applicable) of all amounts due from the Licensee to the
                  Licensor, the applicable rate of exchange shall be the

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                  mid-rate at the New York closing on the last day of the
                  calendar quarter in respect of which payment is due and for
                  all other amounts on the day on which payment is due.

         4.7      The Licensor shall be entitled to interest on payments due
                  under this agreement which are outstanding beyond the due date
                  of payment. Such interest shall be at the rate of 6 per cent
                  per annum above the prime rate of Bank of America valid from
                  time to time. Such interest shall be calculated from the due
                  date to the date of payment and shall be deemed to accrue on a
                  daily basis and to be compounded on the last day of the
                  calendar month .

5.       RECORDS

         5.1      The Licensee agrees to keep at its usual place of business
                  true and accurate records and books of account showing:

                  5.1.1    the quality and description of the Products; and

                  5.1.2    all data necessary for the determination of Royalties
                           payable under clause 4.1 including (but not limited
                           to) the quantity of Products made used or sold;

                  5.1.3    such records and books shall be kept separate from
                           any records and books not relating solely to the
                           Products and shall be open to inspection upon
                           reasonable notice by the Licensor or its duly
                           authorised agent or representative or an independent
                           accountant selected by the Licensor and acceptable to
                           the Licensee (such acceptance not to be unreasonably
                           withheld) for the purpose of verifying the accuracy
                           of the Licensee's reports who shall be entitled to
                           take copies of or extracts from the same. The
                           Licensor shall be solely responsible for the costs of
                           its representative or accountant unless he certifies
                           that there is a discrepancy of more than 2.5 per cent
                           in the royalties paid from those payable under this
                           agreement in which event the Licensee shall reimburse
                           the Licensor's costs of the inspection.

         5.2      The Licensee shall submit to the Licensor within 30 days of
                  the end of each calendar quarter a written statement setting
                  out with respect to the operations of the Licensee during that
                  quarter sufficient data to enable accurate determination of
                  Royalties in accordance with clause 4.5.2.

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         5.3      The Licensor agrees to maintain confidential all financial
                  information received with respect to the Licensee's
                  operations.

6.       SUB-LICENSING

         6.1      The Licensee shall not be entitled to assign or sub-license
                  any of its rights or obligations under this agreement save
                  with the express written consent of the Licensor. In this
                  respect, the Licensor shall not unreasonably withhold consent
                  to a sub-licence being granted where a second source of
                  manufacture is required by a customer of the Licensee provided
                  that the Licensor is satisfied that any such sub-licensee is
                  technically qualified and of satisfactory financial standing
                  and that any such sub-licensing agreement to be entered into
                  shall be subject to the prior written approval of the
                  Licensor.

         6.2      Clause 6.1 above does not include sub-licences to Customers,
                  to whom an automatic sub-licence is granted under this
                  agreement to use the Products, including use of the Products
                  as a component part for the production of other Products.

7.       IMPROVEMENTS

         7.1      Licensor and Licensee agree that the know-how, trade secrets
                  or improvements incorporated into the Sealing Machines and/or
                  related to the use, operation and maintenance of the Sealing
                  Machines shall be licenced to Licensee in conjunction with the
                  lease of the Sealing Machines pursuant to the provisions of
                  the Machinery Lease Agreement.

         7.2      If the Licensee shall at any time develop or acquire rights in
                  any Licensee's Improvement during the term of this agreement
                  the Licensee shall to the extent that it is not prohibited by
                  law or by any undertaking given to any other person promptly
                  notify the Licensor in writing giving details of it and
                  provide to the Licensor such information or explanations as
                  the Licensor may reasonably require to be able effectively to
                  utilise the same. In any case where such Licensee's
                  Improvement is severable from and not dependent on the rights
                  licensed under this agreement or the Machinery Lease Agreement
                  (if such can be the case), the Licensee shall grant an
                  irrevocable non-exclusive royalty-free licence with right to
                  grant sub-licences under all rights protecting such
                  Improvement throughout the world to the Licensor with respect
                  to the manufacture use and sale of any article and otherwise
                  upon terms to be

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                  agreed between the parties PROVIDED THAT where the Licensee's
                  Improvement is not severable from the rights licensed under
                  this agreement or the Machinery Lease Agreement the Licensee
                  shall grant to the Licensor an irrevocable, worldwide,
                  exclusive royalty-free licence, with the right to sublicence,
                  under all rights protecting such Licensee's Improvement with
                  respect to the manufacture use and sale of any article.

8.       DEFENCE OF THE PATENT(S) AND INFRINGEMENTS

         8.1      The Licensee shall forthwith give notice in writing to the
                  Licensor of any infringement or suspected or threatened
                  infringement in the Sales Territory of any of the Patents
                  which shall at any time come to its knowledge. Subject to the
                  next following provisions of this clause the Licensee shall
                  take no actions against the suspected infringer (including
                  without limitation sending any cease and desist letters or
                  instituting any legal process against the suspected
                  infringer), pending written instructions from the Licensor.

         8.2      The Licensor shall decide in its absolute discretion whether
                  and what steps (if any) should be taken to prevent or
                  terminate such infringement misappropriation or misuse
                  including the institution of legal proceedings where necessary
                  and the Licensor shall notify the Licensee in writing of such
                  decision as soon as reasonably possible. When the Licensor
                  gives to the Licensee notice that it does not intend to take
                  action as contemplated above the Licensee may commence
                  proceedings at its own expense upon receiving prior written
                  consent from the Licensor. The Licensee may not settle or
                  compromise any such proceedings without the prior written
                  approval of the Licensor who may at any stage thereof reassume
                  control at its own expense.

         8.3      Subject to clause 8.2 above, the Licensor shall have sole
                  control over and shall conduct any such action(s) as it shall
                  deem necessary in pursuance of this clause at its own cost and
                  expense and shall be entitled to receive and retain all
                  amounts awarded or secured by way of settlement or damages
                  profits or otherwise in connection with such claims.

         8.4      The Licensee agrees, at the expense of the Licensor, to
                  provide reasonable assistance to the Licensor in trials, suits
                  and other actions against infringers of the Patent(s).

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         8.5      To the best of the Licensor's knowledge and belief the
                  exercise of the rights granted or to be granted to the
                  Licensee hereunder will not result in the infringement of
                  valid patents of third parties. Subject thereto the Licensor
                  gives no warranty in this respect and does not give the
                  Licensee any indemnity against costs, damages, expenses or
                  royalties arising out of proceedings brought against the
                  Licensee or any customer of the Licensee by any third party.
                  Should the Licensee be sued for infringement of any patent or
                  patents of the third party by reason of its operation of the
                  Process or manufacture use or sale of the Products the
                  Licensor shall on request assist the Licensee in its defence
                  to such action to the extent that in all the circumstances it
                  is reasonable to do so but shall otherwise be under no
                  obligations in respect thereof. All costs of any such action
                  shall be borne by the Licensee to whom shall belong all sums
                  that may be recovered from the third party.

         8.6      If at any time during this agreement the Licensee directly or
                  indirectly opposes or assists any third party to oppose the
                  grant of letters patent on any patent application within the
                  Patents or disputes or directly or indirectly assists any
                  third party to dispute the validity of any patent within the
                  Patents or any of the claims thereof the Licensor shall be
                  entitled immediately to terminate all or any of the licences
                  granted hereunder forthwith by written notice thereof to the
                  Licensee.

         8.7      Where Licensee has developed or acquired an Improvement, it
                  shall not publish the same or do anything that might prejudice
                  the validity of any patent that might subsequently be granted
                  on it until Licensor has had at least 15 working days from
                  disclosure in writing of all information relating to it to
                  consider whether patent or other protection should be applied
                  for. Licensee will on request notify Licensor whether it
                  intends to seek any relevant protection. If Licensee does not
                  wish to do so and if Licensor within the 15 working day period
                  notifies Licensee that it would like to seek patent or other
                  protection, then this obligation shall continue for such time
                  as may be reasonably required for Licensor to prepare and file
                  an application for patent or other protection.

         8.8      If, at any time in respect of an Improvement, the Licensee
                  elects not to pursue further an application for patent
                  protection either jointly or on its own behalf or to maintain
                  any such patent protection as it may have obtained the
                  Licensee shall notify the Licensor and shall if so requested
                  assign all rights it may have therein to the Licensor

<PAGE>   18

                  provided that the Licensee in these circumstances shall be
                  entitled to a full irrevocable licence under all relevant
                  rights with the right to sub-license.

9.       CONFIDENTIALITY

         9.1      The Licensee shall keep secret and confidential all or any
                  information relating to the Process, Products or Patent(s)
                  which is communicated to it by the Licensor under this
                  agreement and which contains trade secrets or consists of
                  information not publicly available or which is specifically
                  marked "Confidential" ("CONFIDENTIAL INFORMATION") and the
                  Licensee undertakes as follows:

                  9.1.1    to use all Confidential Information so disclosed
                           exclusively for the purpose of operating the Process
                           under the terms of this agreement;

                  9.1.2    disclosure by the Licensee within its organisation
                           shall be on a "need-to-know" basis and all
                           appropriate safeguards to protect confidentiality
                           shall be taken at all times. The Licensee shall be
                           responsible for the observance of secrecy on the part
                           of its management, employees, workmen, agents and
                           other persons connected with it in any way;

                  9.1.3    the Licensee shall procure that all its directors,
                           employees and sub-licensees (if any) pursuant to this
                           agreement who have access to any Confidential
                           Information are made aware of and subject to the
                           obligations set out in clause 9.1 and shall further
                           procure that all of such employees and sub-licensees
                           shall enter into written undertakings in favour of
                           the Licensor in a form acceptable to Licensor;

                  9.1.4    keep separate all Confidential Information and all
                           information generated by the Licensee based thereon
                           from all documents and other records of the Licensee;

                  9.1.5    keep all documents and any other material bearing or
                           incorporating any of the Confidential Information
                           only at the place where the manufacture of the
                           Products by the Licensee and every permitted
                           sub-licensee shall be carried on;

<PAGE>   19

                  9.1.6    make copies of the Confidential Information only to
                           the extent that the same is strictly required for the
                           purposes of the operation of this agreement;

                  9.1.7    on request of the Licensor made upon expiration or
                           termination of this Agreement shall deliver up to the
                           Licensor all documents and other material in the
                           possession, custody or control of the Licensee
                           (whether in hard copy, electronic or other format)
                           that bear or incorporate any part of the Confidential
                           Information.

         9.2      The foregoing restrictions on the Licensee shall not apply to
                  any Confidential Information which:

                  9.2.1    the Licensee can prove by documentary evidence
                           produced to the Licensor within 14 days of disclosure
                           that such Confidential Information was already in the
                           possession of the Licensee and at its free disposal
                           before the disclosure hereunder to the Licensee;

                  9.2.2    is hereafter disclosed to the Licensee without any
                           obligations of confidence by a third party who has
                           not derived it directly or indirectly from the
                           Licensor;

                  9.2.3    is or becomes generally available to the public in
                           printed publications in general circulation through
                           no act or default on the part of the Licensee or the
                           Licensee's agents or employees.

         9.3      Without prejudice to the generality of sub-clause 9.2.3
                  information shall not be deemed to be generally available to
                  the public by reason only that it is known to only a few of
                  those people to whom it might be of commercial interest and a
                  combination of two or more portions of the Confidential
                  Information shall not be deemed to be generally available to
                  the public by reason only of each separate portion being so
                  available.

         9.4      The Licensee agrees that it will upon the request of the
                  Licensor but at its own expense take such steps as the
                  Licensor may require to enforce any confidentiality
                  undertaking given by its directors, employees and
                  sub-licensees (if any) including but without prejudice to the
                  generality of the foregoing obligation the initiation and
                  prosecution of any legal proceedings and the enforcement of
                  any judgment obtained.

<PAGE>   20

                  All steps taken by the Licensee shall be taken as
                  expeditiously as possible and the Licensee agrees that in
                  respect of its obligation to enforce confidentiality
                  undertakings time shall be of the essence in complying with
                  the requirements of the Licensor.

         9.5      The provisions of this Clause 9 shall remain in force for so
                  long as any Confidential Information remain confidential
                  notwithstanding earlier termination of this agreement.

         9.6      It is specifically agreed that the terms of any
                  confidentiality agreement entered into between the parties
                  prior to this Agreement shall continue to apply and unless
                  agreed otherwise shall be incorporated in this Agreement and
                  shall take precedence over Clause 9.1 to 9.5 inclusive.

10.      DURATION

         This agreement shall come into force upon the Effective Date and shall
         continue in force unless earlier terminated in accordance with Clause
         11 until the expiry of the Non-Exclusive Term.

11.      TERMINATION

         11.1     The Licensor shall have the right to terminate this agreement
                  forthwith by notice in writing to the Licensee if:

                  11.1.1   the Licensee is in material breach of any of the
                           obligations on its part in this agreement provided
                           that if such breach is capable (in the opinion of the
                           Licensor) of remedy the Licensee fails to remedy such
                           breach within 30 days of a notice from the Licensor
                           requiring it so to do, such notice giving adequate
                           particulars of the alleged default and including
                           notification by the Licensor of its intention to
                           terminate this agreement under this clause; or

                  11.1.2   the Licensee shall cease or threaten to cease to
                           carry on business or make any composition with its
                           creditors or suffer the appointment of a receiver of
                           the whole or any part of its assets or undertaking or
                           if any petition shall be presented for an order or a
                           notice be issued convening a meeting of shareholders
                           to consider the passing of a resolution for or a
                           resolution shall

<PAGE>   21

                           be passed for its winding up other than for the
                           purposes of amalgamation or reconstruction or shall
                           sell, transfer or otherwise dispose of all or
                           substantially all of its undertaking and assets
                           involved in the performance of its obligations herein
                           contained; or

                  11.1.3   the Licensee shall be about to suffer any change of
                           control in which event the Licensee shall use it best
                           endeavours to give notice thereof to the Licensor; if
                           such change shall actually occur the Licensor shall
                           have the right any time within six months thereafter
                           to terminate this agreement by notice to the Licensee
                           or its successor. For the purposes of this
                           sub-clause, "control" means the ability to direct the
                           affairs of another, whether by contract, ownership or
                           shares or otherwise howsoever.

                  11.1.4   the Licensee shall have failed to make payment to the
                           Licensor of the amount due pursuant to clause 4;

                  11.1.5   the Licensee at any time challenges in the courts or
                           a relevant Patent Office the validity or necessity of
                           the Patent(s) (in which case, Licensor shall only
                           have the right to terminate the exclusivity of the
                           Licence granted herein and not this entire
                           Agreement);

                  11.1.6   if the Licensee at any time uses the Patent(s) in
                           relation to any products other than the Products;

                  11.1.7   if the Licensee is in breach of clause 3.1 by not
                           having worked the Process to the satisfaction of the
                           Licensor for a period of one year or more;

                  11.1.8   if the Licensee fails to achieve fifty percent (50%)
                           of the Target for each of three (3) successive years
                           and if Licensee fails to demonstrate to Licensor that
                           it has used its best endeavours to achieve the
                           Target;

                  11.1.9   if either the Exclusive Project Agreement or
                           Machinery Lease Agreement terminate for any reason.

12.      EFFECT OF TERMINATION

         Expiration or termination of this agreement for whatever reason shall
         be without prejudice to any express obligations in this agreement of a
         continuing nature and to any rights or

<PAGE>   22

         liabilities of the parties hereunder which have accrued at the date of
         termination or expiration, and in such event:

         12.1     the Licensee shall forthwith offer for sale to the Licensor
                  (or the Licensee's successor appointed by the Licensor) at a
                  fair market value the Products (whether complete or partly
                  constructed). The Licensor shall not be under any obligation
                  to purchase or any of the Products. The Licensor shall notify
                  its determination whether or not to purchase any of the above
                  within three months of the offer being made;

         12.2     notwithstanding the above, the Licensee will have the right to
                  do all that is necessary to complete the construction and sale
                  of the Products either in the process of construction or
                  completed and to complete deliveries upon contracts in force
                  at the date of termination provided that all those matters
                  referred to in this clause 12.2 are completed within three
                  months of the date of termination, and provided that Licensee
                  pays to Licensor all Royalties on such Products;

         12.3     the Licensee shall return all Confidential Information and
                  written materials whether in hard copy, electronic or other
                  format] relating to the Products, Process or Patents or
                  containing technical literature, instruction manuals,
                  advertising or marketing material or drawings, and any other
                  information and reports in its possession of control and all
                  materials supplied by the Licensor together with all copies,
                  reprints, reproductions and translations thereof (whether in
                  hard copy, electronic or other format); and

         12.4     termination of the agreement for any reason shall not bring to
                  an end:

                  12.4.1   the secrecy obligations on the parties under clause
                           9;

                  12.4.2   the Licensee's obligations to pay royalties or other
                           sums which have accrued due or will become due in
                           respect of sales under clause 4.

13.      MAINTENANCE OF PATENTS

         The Licensor shall during the term of this agreement pay all renewal
         fees and do all such acts and things as the Licensor may consider
         necessary to prosecute through to grant and maintain the Patent(s)
         being operated under in the Territory by the Licensee and shall produce
         to the

<PAGE>   23

         Licensee upon written request the receipt for such renewal fees within
         a reasonable period of being requested to do so.

14.      FORCE MAJEURE

         The Licensor shall not be liable to the Licensee nor be deemed to be in
         breach of this Agreement by reason of any delay in performing or any
         failure to perform any of Ceravision's obligations if the delay or
         failure was due to any cause beyond Ceravision's reasonable control
         provided, however, that the Licensor will immediately take appropriate
         action to mitigate the effect or the causes of any such delay, and upon
         cessation of any such delay, the Licensor will immediately recommence
         the performance of its obligations under this Agreement. Without
         prejudice to the generality of the foregoing, the following shall be
         regarded as causes beyond the Licensor's reasonable control:

         14.1     act of God, explosion, flood, tempest, fire or accident;

         14.2     war or threat of war, sabotage, insurrection, civil
                  disturbance or requisition;

         14.3     acts, restrictions, regulations, bye-laws, prohibitions or
                  measures of any kind on the part of any governmental,
                  parliamentary or local authority;

         14.4     import or export regulations or embargoes;

         14.5     Intellectual Property Rights of third parties;

         14.6     strike, lock-outs or other industrial actions or trade
                  disputes (whether involving employees of the Licensor or of a
                  third party);

         14.7     the death or incapacity of any of the key employees, directors
                  or consultants of the Licensor or any of its associates,
                  suppliers or consultants;

         14.8     difficulties which make obtaining raw materials, labour, fuel,
                  parts or machinery commercially unreasonable;

         14.9     power failure or breakdown in machinery.

<PAGE>   24

15.      ASSIGNMENT

         The Licensee shall not without the prior written consent of the
         Licensor assign, transfer, charge, encumber or deal in any other
         similar manner whether in whole or in part with this agreement or its
         rights under this agreement, which consent will not be unreasonably
         withheld if the proposed assignee agrees in writing to assume all of
         Licensee's obligations hereunder, except in the case where Licensor in
         good faith believes that the proposed assignee (i) is a direct or
         indirect competitor of Licensor or its affiliates, (ii) would not
         effectively exploit the Processes and maximize the production of
         Products pursuant to the provisions herein, or (iii) has been a
         defendant in any lawsuit or other proceeding involving intellectual
         property infringement, unfair competition, unfair trade practices,
         fraud or similar claims, where in all such cases Licensor shall have
         the right to withhold its consent in its sole discretion.

16.      SEVERABILITY

         If any provision of this Agreement is declared unlawful, void or
         unenforceable by any judicial or administrative authority, each and
         every other provision of this Agreement, or part thereof, shall
         nevertheless continue in full force and effect, and the unenforceable
         provision shall be changed or interpreted so as best to accomplish the
         objectives and intent of the parties expressed herein within the limits
         of applicable law.

17.      THIRD PARTY RIGHTS

         A person who is not a party to this agreement shall have no right under
         the Contracts (Rights of Third Parties) Act 1999 to enforce any term of
         this agreement. This clause does not affect any right or remedy of any
         person which exists or is available otherwise than pursuant to that
         Act.

18.      PARTNERSHIP

         Nothing in this agreement shall create a partnership or joint venture
         between the parties and except as expressly provided in this agreement
         neither party shall enter into or have authority to enter into any
         engagement or to make any representation or warranty on behalf of or to
         pledge the credit of or otherwise to bind or oblige the other party.

<PAGE>   25

19.      WAIVER AND RELEASE

         19.1     Each party may, in whole or in part, release, compound,
                  compromise, waive or postpone, in its absolute discretion, any
                  liability owed to it or right granted to it in the agreement
                  by any other party or parties without in any way prejudicing
                  or affecting its rights in respect of that or another
                  liability or right not so released, compounded, compromised,
                  waived or postponed.

         19.2     No single or partial exercise or failure or delay in
                  exercising any right, power or remedy by either party under
                  this agreement or the granting of time by either party shall
                  prejudice, affect or restrict the rights, powers and remedies
                  of that party under this agreement, nor shall any waiver by
                  either party of any breach of this agreement operate as a
                  waiver of or in relation to any subsequent or any continuing
                  breach of this agreement.

20.      ENTIRE AGREEMENT

         20.1     This agreement (including the schedules to it) sets out the
                  entire agreement and understanding between the parties
                  relating to its subject matter, and this agreement supersedes
                  and extinguishes any prior drafts, agreements, undertakings,
                  representations, warranties and any arrangements of any nature
                  whatsoever, whether or not in writing, relating thereto.
                  Schedules 1-4 are hereby fully incorporated herein. No party
                  has relied on any representation or promise except as
                  expressly set out or referred to in this agreement. Each party
                  unconditionally waives any rights it may have to:

                  20.1.1   claim damages against the other on the basis of any
                           statement made by the other (whether made carelessly
                           or not and whether or not set out or referred to in
                           this agreement) and/or for breach of warranty given
                           by the other (whether or not set out or referred to
                           in this agreement) unless such statement and/or
                           warranty was made or given fraudulently;

                  20.1.2   seek to rescind this agreement on the basis of any
                           statement made by the other (whether made carelessly
                           or not and whether or not set out or referred to in
                           this agreement) unless such statement was made
                           fraudulently.

<PAGE>   26

21.      NOTICES

         21.1     Any notice including a notice of termination or other document
                  to be given under this agreement shall be in writing in
                  English signed by or on behalf of the party giving it and
                  shall be given if left at or sent by pre-paid first class air
                  mail post, pre-paid recorded delivery, marked for the
                  attention of M J Shaheed for the Licensee and Tim Reynolds for
                  the Licensor to the address of the party receiving such notice
                  as set out at the head of this agreement or as notified in
                  writing between the parties for the purposes of this clause.

         21.2     Any such notice shall be deemed to have been given to and
                  received by the addressee:

                  21.2.1   at the time of delivery if delivered personally;

                  21.2.2   7 days after posting excluding a Sunday or public
                           holiday when it shall be the next following working
                           day;

         21.3     In proving the giving of a notice it shall be sufficient to
                  prove that the notice was properly addressed and posted, or
                  that the envelope containing the notice was properly addressed
                  and posted.

22.      LAW AND JURISDICTION

         22.1     This agreement shall be governed by and construed in
                  accordance with English law and each party agrees to submit to
                  the non-exclusive jurisdiction of the English courts and
                  process may be served on either of the parties in the manner
                  specified for notices in clause 21.

                  These submissions shall not affect the right of the Licensor
                  to take any legal action or proceedings to enforce this
                  agreement or arising out of or in connection with the
                  agreement, including obtaining interim relief ("PROCEEDINGS")
                  in any other jurisdiction nor shall the taking or Proceedings
                  in any jurisdiction preclude the Licensor from taking
                  proceedings in any other jurisdiction.

         22.2     The Licensee hereby irrevocably appoints Willoughby and
                  Partners of The Isis Building, Thames Quay, 193 Marsh Wall,
                  London E14 9SG as its agent for the service of process in
                  England so that such service may be validly effected on the

<PAGE>   27

                  Licensee by service on such agent at such address as if
                  he/they had been a party to such proceedings.

         22.3     This Agreement shall be modified or amended only by a writing
                  signed by both Licensor and Licensee.

SIGNED by M J SHAHEED duly authorised        )
for and on behalfof AUGRID OF NEVADA,        )
INC.                                         )

----------------------------------------
M. J. Shaheed, Chief Executive Officer

SIGNED by TIMOTHY O'DONOGHUE duly            )
authorised for and on ) behalf of CERAVISION )
LIMITED:                                     )

----------------------------------------
Timothy O'Donoghue, Director

                                   SCHEDULE 1

                                   DEFINITIONS

"ANODE AND CATHODE PATENTS" means the patent applications set out in Schedule 2
Part 2 relating to anodes and cathodes to be sealed together to form FED
displays, and patents granted on these patent applications. For the avoidance of
doubt, the Anode and Cathode Patents need not include all patents and patent
applications held in the Ceravision Group. The Licensor may add patents to the
Anode and Cathode Patents in its sole discretion.

"DISPLAY DRIVE AND CONTROL CIRCUIT PATENTS" means the patent applications set
out in Schedule 2, Part 3 relating to integrated circuits to be attached to the
substrate of the FED displays for their control and patents granted on these
patent applications. For the avoidance of doubt, the Display Drive and Control
Circuit Patents need not include all FED control patents and patent applications
held in the Ceravision Group. The Licensor may add patents to the Display Drive
and Control Circuit Patents in its sole discretion.

"EXCLUSIVE TERM" means the period of five years from the Effective Date.

<PAGE>   28

"FIELD OF USE" means FEDs for displaying GPS-derived information only or
DVD-derived information only or GPS and DVD derived information only for use in
automotive land vehicles, excluding military and racing vehicles.

"MANUFACTURING TERRITORY" means North America, that is to say USA, Canada and
Mexico.

"NON-EXCLUSIVE TERM" means ten years from the expiry of the Exclusive Term.

"PROCESSES" means the processes as set out below:

         (a)      Process I: manufacture (as claimed in the Sealing Patents) of
                  FED displays within definition of the Products by sealing
                  together of anodes and cathodes and

         (b)      Process II: manufacture of FED displays (as claimed in the
                  Anode and Cathode Patents) within the definition of the
                  Products by sealing together of Proprietary Anodes and
                  Cathodes and

         (c)      Process III: manufacture of FED displays (as claimed in the
                  Display Drive and Control Circuit Patents) within the
                  definition of the Products by assembly of Proprietary
                  Integrated Circuits and non-proprietary integrated circuits,
                  as appropriate in respect of the individual ones of these
                  patents, onto the cathodes of the displays after sealing.

"PRODUCTS" means a 6.5 inch diagonal measurement FED display within the Field of
Use incorporating Proprietary Components.

"SALES TERRITORY" means the World.

"SEALING MACHINES" means the machines which are specified in and perform the
process described in the Sealing Patents.

"SEALING PATENTS" means The patent applications set out in Schedule 2, Part 1
relating to FED sealing, [other scheduled patent applications relating to FED
sealing] and patents granted on these patent applications. For the avoidance of
doubt, the Sealing Patents need not include all FED sealing patents and patent
applications held in the Ceravision Group. The Licensor may add patents to the
Sealing Patents in its sole discretion.

<PAGE>   29

"TARGET" means the requirement to achieve sales of Products in each Agreement
Year of no less than the average sales of Products achieved in the immediately
preceding two Agreement Years (other than in the first 2 Agreement Years).

"THE TERM" means the period of 15 years comprising the Exclusive Term and the
Non-Exclusive Term.

<PAGE>   30

                                   SCHEDULE 2

                            PATENTS AND APPLICATIONS

                                     PART 1

                        National Phases of PCT/US98/20816

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
 NB FILE NO/REFERENCE                APPLICATION NO                           APPLICATION DATE
------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                   <C>
401/II/PCT/CA                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/CN                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/EP                           98953244.5                            1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/JP                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/KR                           10-2000-7003512                       1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/MX                           003137                                1st October 1998
------------------------------------------------------------------------------------------------------------------
4-1/II/PCT/RU                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCT/UK                           0005619.2                             1 October 1998
------------------------------------------------------------------------------------------------------------------
401/II/PCTUSUS                          09/509,713                            1st October 1998
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     PART 2

                        National Phases of PCT/US98/20813

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
    NB FILE NO/REFERENCE           APPLICATION NO                               APPLICATION DATE
------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                   <C>
1401/I/PCT/CA                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/CN                           TBA                                   1 October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/EP                           96949752.4                            1 October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/JP                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/KR                           10-2000-7003510                       1st October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/MK                           003228                                1st October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/RU                           TBA                                   1st October 1998
------------------------------------------------------------------------------------------------------------------
1401/I/PCT/UK                           0006000.4                             1st October 1998
------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   31

<TABLE>

------------------------------------------------------------------------------------------------------------------

<S>                                     <C>                                   <C>
1401/I/PCT/USUS                         09/509,702                            1st October 1998
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                     PART 3

1.       A first patent application on FED drivers to be filed under Nigel
         Brooks CPA file reference 1797.

2.       A first patent application on Trade Mark to be filed under Nigel Brooks
         CPA file reference 1798.

<PAGE>   32

                                   SCHEDULE 3

                      TRADE MARKS AND REQUIREMENTS FOR USE

1. Common Law Trade Marks: CERAVISION and the Ceravision Device; and

2. Registered Trade Marks: CERAVISION and the Ceravision Device are REGISTERED
TRADE MARKS OF CERAVISION LIMITED registered under UK registrations 2,179,309
and 2,179,310 respectively.

<PAGE>   33

                                   SCHEDULE 4

                        CONSIDERATION INCLUDING ROYALTIES

                                     PART 1

First 500,000 Products produced in any Agreement Year         $9.68 per Product

Next 500,000 Products produced in any Agreement Year          $6.24 per Product

Next 1,000,000 Products produced in any Agreement Year        $4.88 per Product

Products above 2,000,000 produced in any Agreement Year $3.92 per Product

The royalty per product shall increase for each Agreement Year pro rata with the
Retail Prices Index in the United Kingdom, over the previous 12 months.

<PAGE>   34

                                     PART 2

                    MINIMUM CONSIDERATION INCLUDING ROYALTIES

Nil for the year beginning 1st July 2000;

$500,000 quarterly thereafter (i.e., beginning with the calendar quarter ending
on 30 September 2001).<PAGE>   1
                                                                    EXHIBIT 10.2

DATED                                                               7 JULY 2000
--------------------------------------------------------------------------------

                             (1) CERAVISION LIMITED

                                     - AND -

                            (2) AUGRID OF NEVADA, INC

              ----------------------------------------------------

                                EXCLUSIVE PROJECT
                                    AGREEMENT
                                   relating to

                         DISPLAYS FOR USE IN AUTOMOBILES

              ----------------------------------------------------

================================================================================

<PAGE>   2

                                    CONTENTS

1. INTERPRETATION............................................................2

2. CONDITION PRECEDENT AND RELATED AGREEMENTS................................7

3. PHASE ONE.................................................................8

4. PHASE TWO.................................................................9

5. PHASE THREE..............................................................10

6. LICENCE TO MANUFACTURE AND EXCLUSIVITY...................................11

7. PROTOTYPES AND PRE-PRODUCTION PRODUCTS...................................11

8. INTELLECTUAL PROPERTY RIGHTS.............................................12

9. PAYMENTS.................................................................13

10. WARRANTIES & LIABILITY..................................................14

11. REPORTING AND ACCESS....................................................18

12. CONFIDENTIALITY.........................................................19

13. ADVERTISING.............................................................21

14. TERMINATION.............................................................22

15. GENERAL.................................................................24

SCHEDULE 1..................................................................30

    (Clause 1.1)............................................................30

SCHEDULE 2..................................................................30

    (Clause 1.1)............................................................30

SCHEDULE 3..................................................................31

    (Clause 1.1)............................................................31

SCHEDULE 4..................................................................33

    (Clause 1.1)............................................................33

<PAGE>   3

THIS AGREEMENT is made on 7 July 2000

BETWEEN

(1)      CERAVISION LIMITED a company incorporated in England and Wales under
         number 3191734 with registered office at Sovereign Court, 230 Upper
         Fifth Street, Central Milton Keynes MK9 2HR ("CERAVISION").

(2)      AUGRID OF NEVADA, INC a corporation organised and validly existing
         under the laws of the State of Nevada whose principal office is at 140
         Public Square, The Park Building, Suite 208, Cleveland, Ohio 44114
         ("AUGRID").

BACKGROUND

A        Ceravision has developed and is developing certain technology relating
         to ceramic-based field emission flat-screen displays and holds (either
         directly or through its Associates) certain patent applications and
         other intellectual property rights in relation to such technology and
         in relation to manufacturing processes and equipment to produce and
         sell such displays and components for incorporation into such displays.

B        Ceravision (Ireland) Limited is a subsidiary undertaking of Ceravision
         and holds licences of Ceravision's Intellectual Property Rights and has
         agreed to license Augrid to use such rights to the extent necessary for
         it to produce the Products as more particularly set out in the Licence
         Agreement.

C        ITW is a subsidiary undertaking of Ceravision and manufactures (under
         licence of some of Ceravision's Intellectual Property Rights) certain
         laser sealing machinery necessary for Augrid to produce the Products as
         more particularly set out in the Licence Agreement.

D        Augrid wishes to be provided with prototypes of displays for use in
         GPS/DVD Equipment; to have ITW supply laser sealing machinery for
         first, a pilot manufacturing line and subsequently, a full scale
         manufacturing line to manufacture such displays; to be granted a
         licence by Ceravision (Ireland) Limited to manufacture and sell
         displays for use only in GPS/DVD Equipment using Technology; and in due
         course to purchase components for incorporation into such displays to
         be supplied by Ceravision or its Associates or nominated suppliers,
         such components being necessary for a technically proper exploitation
         of the Technology.

<PAGE>   4

IT IS AGREED:

1.       INTERPRETATION

         1.1      In this Agreement unless the context otherwise requires the
                  following words and expressions have the following meanings:

                  "ASSOCIATE" in relation to any undertaking means an
                  undertaking connected with it within the meaning of the Block
                  Exemption.

                  "AUTOMOBILE" automotive land vehicles, excluding military
                  vehicles and racing vehicles.

                  "BLOCK EXEMPTION" the Technology Transfer Block Exemption
                  contained in Commission Regulation 240/96 of January 31 1996.

                  "BUSINESS DAY" a day (other than a Saturday) on which clearing
                  banks in the City of London are open for normal sterling
                  banking business.

                  "CERAVISION IRELAND" Ceravision (Ireland) Limited a company
                  incorporated in Ireland under registration number 321650 with
                  registered office at 1 High Street, Dublin 8, Ireland.

                  "CERAVISION'S INTELLECTUAL PROPERTY RIGHTS" Intellectual
                  Property Rights of Ceravision or its Associates.

                  "CONFIDENTIAL INFORMATION" all the information relating to the
                  Prototypes, the Pre-Production Products, the Products and the
                  machinery for production thereof whether or not comprised in
                  the Technology and/or Ceravision's Intellectual Property
                  together with any other information relating to the technology
                  or business affairs of Ceravision or its Associates in each
                  case disclosed by Ceravision or its Associates to Augrid or
                  otherwise obtained by or coming to the knowledge of Augrid
                  (whether in writing, orally, pictorially, in machine-readable
                  form, by observation during visits, by examination of
                  Prototypes or otherwise howsoever) directly or indirectly from
                  Ceravision or its Associates which is indicated to be
                  confidential or which by virtue

<PAGE>   5

                  of its nature or content is clearly of a confidential nature,
                  and any information derived from any such information.

                  "DVD" Digital Video Disc or CD-ROM as those terms are
                  understood at the date of this agreement.

                  "GPS" the global positioning system as that term is understood
                  at the date of this agreement including differential GPS and
                  including future enhancements to the GPS system.

                  "GPS/DVD" equipment fixed (or designed solely to be fixed)
                  into Automobiles only for (i) GPS navigation only or (ii)
                  display of information recorded on DVD only or for combined
                  uses (i) and (ii) only. For avoidance of doubt, any equipment
                  which is adapted to any information other than GPS
                  navigational information and/or information recorded on DVD
                  does not fall within this definition.

                  "INTELLECTUAL PROPERTY RIGHTS" intellectual property of all
                  types, including patents, design, copyright, registered
                  designs, trade marks, trade names, know-how and other similar
                  such rights existing or arising anywhere in the world
                  (including applications for and rights under licences of any
                  of the foregoing) which relate to the Prototypes, the
                  Pre-Production Products or the Products or the Technology.

                  "ITW" International Technology Works, Inc., a California
                  corporation whose principal office is at 10134 Artesia Place,
                  Bellflower, California.

                  "LICENCE AGREEMENT" the licence agreement to be entered into
                  between Ceravision (Ireland) Limited and Augrid for the
                  manufacture and sale of the Products in the agreed form.

                  "MACHINERY LEASE AGREEMENT" the agreement for the supply of
                  machinery and associated services and disclosure of know-how
                  to be entered into between ITW and Augrid in the agreed form.

                  "MILESTONE" the step towards completion of Phase One specified
                  in Schedule 2.

                  "PHASE ONE" the research and development project to develop
                  and supply Prototypes to Augrid.

<PAGE>   6

                  "PHASE ONE COMPLETION" the date on which Ceravision delivers
                  prototypes in accordance with Clause 3.1.

                  "PHASE TWO" the project for the establishment by Augrid of the
                  Pilot Line including the supply by ITW of a laser sealing
                  machine for the Pilot Line in accordance with the Machinery
                  Lease Agreement.

                  "PHASE TWO COMPLETION" the date on which Ceravision notifies
                  Augrid that Ceravision and ITW have fulfilled all their
                  obligations under this Agreement and the Machinery Lease
                  Agreement for Phase Two whether or not Augrid has then
                  completed the Pilot Line.

                  "PHASE TWO MACHINE" the laser sealing machine to be supplied
                  by ITW during Phase Two in accordance with the Machinery Lease
                  Agreement.

                  "PHASE TWO NOTICE" a single notice to be given by Augrid to
                  Ceravision in the form set out in Schedule 3 certifying that
                  Augrid has available financial resources to complete Phase Two
                  and giving Ceravision 30 days' notice to commence Phase Two.

                  "PHASE THREE" the project for the establishment by Augrid of a
                  manufacturing plant. to manufacture Products on a full
                  production scale including the supply by ITW of specialist
                  manufacturing equipment in accordance with the Machinery Lease
                  Agreement.

                  "PHASE THREE COMPLETION" the date on which Ceravision notifies
                  Augrid that Ceravision and ITW have fulfilled all their
                  obligations under this Agreement and the Machinery Lease
                  Agreement for Phase Three whether or not Augrid has then
                  completed the manufacturing plant.

                  "PHASE THREE NOTICE" a single notice to be given by Augrid to
                  Ceravision in the form set out in Schedule 4 certifying that
                  Augrid has available financial resources to complete Phase
                  Three and giving ITW 30 days' notice to commence Phase Three.

                  "PILOT LINE" a pilot manufacturing line to be established by
                  Augrid for the manufacture of Products on a pre-production
                  scale.

                  "PRE-PRODUCTION PRODUCTS" any Products produced during the
                  course of Phase Two or Phase Three of the Project prior to
                  full-scale production.

<PAGE>   7

                  "PRODUCTS" 6.5 inch (diagonal measurement) field emission
                  displays on a ceramic substrate exclusively for incorporation
                  in GPS/DVD Equipment.

                  "PROJECT" Phase One, Phase Two and Phase Three.

                  "PROPRIETARY COMPONENTS" components (particularly anodes and
                  cathodes) required for incorporation in Products which
                  components are the subject of, or can only be produced using,
                  any of Ceravision's Intellectual Property Rights.

                  "PROTOTYPE" a prototype of the Products produced by Ceravision
                  or its Associates (whether or not complying with the
                  Specification).

                  "QUARTER" a period of three months (and "quarterly" shall be
                  construed accordingly).

                  "SPECIFICATION" the specification for the Prototypes set out
                  in Schedule 1.

                  "TECHNOLOGY" all technology known to Ceravision or its
                  Associates, whether truly confidential or not, whether
                  included in Ceravision's Intellectual Property Rights or not,
                  embodied or to be embodied in the Prototypes, the
                  Pre-Production Products or the Products or in the processes
                  and machinery which will be required by Augrid in the
                  manufacture of Products (whether existing at the date of this
                  Agreement or developed by Ceravision during the term of the
                  Project) including all know-how, inventions, designs,
                  drawings, technical specifications, computer programs and
                  other technology of whatever nature.

                  "TERM" the term of this Agreement being the period from the
                  date of this Agreement until it terminates under Clause 14.1.

                  "UK" Great Britain and Northern Ireland.

                  "US" United States of America.

                  "VAT" value added tax or any other tax or levy of
                  substantially similar effect.

         1.2      In this Agreement, unless the context otherwise requires:

                  1.2.1    the singular includes the plural and vice versa and
                           reference to any gender includes the other genders;

<PAGE>   8

                  1.2.2    references to persons include companies,
                           unincorporated associations and partnerships;

                  1.2.3    references to "the term of the Project" are to the
                           period (from the date of this Agreement until the
                           Project terminates under Clause 14.1;

                  1.2.4    words and phrases defined in the Companies Act 1985
                           have the same meanings, but the word "company"
                           includes any body corporate;

                  1.2.5    references to "Clauses" are to clauses or sub-clauses
                           of this Agreement, references to "Schedules" are to
                           schedules to this Agreement and references within a
                           Schedule to "paragraphs" are to paragraphs of that
                           Schedule;

                  1.2.6    the "(pound)" symbol or the word "pounds" denotes
                           pounds sterling and the $ symbol or the word
                           "dollars" denote US dollars;

                  1.2.7    references to any document "in the agreed form" are
                           to that document in the form of the draft initialled
                           for the purposes of identification by or on behalf of
                           the parties to this Agreement;

                  1.2.8    references to any rate of interest mean that rate as
                           from time to time in force, calculated from day to
                           day on the basis of a 365 day year, and compounded on
                           the last day of March, June, September and December
                           in each year, both before and after judgment; and
                           references to a base lending rate, if there is no
                           such published or determinable rate at the
                           appropriate time, mean such reasonably equivalent
                           rate in accordance with Clause 9.3 below; and

                  1.2.9    examples preceded by the word "including" are to be
                           construed as not limiting the generality of the words
                           preceding it.

         1.3      In this Agreement:

                  1.3.1    any reference to a statute or statutory instrument or
                           any section or part of it includes any enactment
                           replacing or amending it (with or without
                           modification) or any instrument, order or regulation
                           made under it and

<PAGE>   9

                           also includes any past statutory provision (as from
                           time to time modified or re-enacted) which it has
                           directly or indirectly replaced;

                  1.3.2    headings are for convenience only and are not to
                           affect the construction of anything in this
                           Agreement; and

                  1.3.3    references to any English legal term for any action,
                           remedy, judicial process, process, legal document,
                           legal status, court, official or legal concept shall
                           in respect of any jurisdiction other than England be
                           deemed to include that which most nearly approximates
                           in that jurisdiction to the English legal term.

         1.4      The Schedules are an integral part of this Agreement and are
                  to be construed as one with it, and references to this
                  Agreement include the Schedules.

2.       CONDITION PRECEDENT AND RELATED AGREEMENTS

         2.1      This Agreement is conditional upon the Licence Agreement and
                  the Machinery Lease Agreement being entered into by the
                  parties and being or becoming unconditional in all respects
                  (save as to any condition requiring this Agreement to be or
                  become unconditional). If this condition shall not be
                  fulfilled within seven days after the date of this Agreement
                  this Agreement shall be of no effect and neither party shall
                  have any liability to the other.

         2.2      Augrid shall enter into the Licence Agreement and the
                  Machinery Lease Agreement on or as soon as practicable after
                  the date of this Agreement.

         2.3      Ceravision shall procure that Ceravision Ireland and ITW enter
                  into the Licence Agreement and the Machinery Lease Agreement
                  respectively on or as soon as practicable after the date of
                  this Agreement. Having satisfied its obligation under this
                  Clause 2.3 Ceravision shall not be responsible for the
                  performance by Ceravision Ireland and ITW of their obligations
                  under the Licence Agreement and the Machinery Lease Agreement
                  respectively which shall be the sole responsibility of
                  Ceravision Ireland and ITW respectively.

         2.4      Where this Agreement provides for the parties or their
                  Associates to agree or negotiate during the Term any other
                  agreement (not being the Licence Agreement or

<PAGE>   10

                  the Machinery Lease Agreement), contractual terms or other
                  arrangements (including prices or specifications for machines
                  or components) the parties state their intention to negotiate
                  in good faith to agree reasonable commercial terms for such
                  arrangements but such agreements shall not be conditions of
                  this Agreement and this Agreement, the Licence Agreement and
                  the Machinery Lease Agreement shall remain in all respects
                  valid and enforceable notwithstanding any future to agree such
                  arrangements.

3.       PHASE ONE

         3.1      During Phase One Ceravision will use its reasonable endeavours
                  to develop and produce, within one year of the date of this
                  Agreement, ten Prototypes complying with the Specification;
                  provided that:

                  3.1.1    Ceravision shall not be required to expend all of its
                           effort on the Project, nor shall Ceravision and its
                           Associates be required to expend in aggregate on
                           Phase One (including their internal costs and
                           overheads) more than $3,000,000; and

                  3.1.2    Ceravision shall not be required to devote its entire
                           resources or entire key personnel to the Project and
                           shall not be prevented by this Clause 3.1 or Clause
                           2.2 from giving undertakings to use its best
                           endeavours in other projects.

         3.2      Ceravision will devote such time, resources and personnel to
                  the Project as it considers (in its sole discretion) necessary
                  to comply with its obligations under this Agreement.

         3.3      Ceravision will be required to incorporate into the Prototypes
                  only such of its existing or developed technology as is
                  required to comply with the Specification. Ceravision will not
                  be required to and does not guarantee to incorporate all of
                  its existing or developed technology if that is not a
                  requirement under the Specification.

         3.4      The Specification may not be altered (save as contemplated
                  therein) other than with the written consent of Ceravision and
                  Augrid.

<PAGE>   11

         3.5      Ceravision will use its reasonable endeavours (subject to
                  Clauses 3.1.1 and 3.1.2) to supply ten Prototypes to Augrid
                  which comply with the Specification at a time or times to be
                  determined by Ceravision within one year of the date of this
                  Agreement. It is anticipated that during Phase One Ceravision
                  will also supply preliminary Prototypes not complying fully
                  with the Specification, but demonstrating the current state of
                  work towards production of Prototypes which do so comply. The
                  Prototypes shall at all times remain the property of
                  Ceravision and shall be marked as such. Should Ceravision
                  require longer to provide the Prototypes which comply with the
                  Specification, it shall give notice (and may give notice from
                  time to time) to Augrid that it requires further time for such
                  supply and of the amount of such further time as Ceravision
                  estimates to be required. Ceravision shall have no liability
                  in respect of any such delay.

         3.6      Augrid shall have the right to use the Prototypes until it
                  commences production of the Pre-Production Products or this
                  Agreement is terminated, whichever occurs first ("Prototype
                  Use Period"). At the expiration of the Prototype Use Period,
                  Augrid, at its expense, shall return all of the Prototypes to
                  Ceravision.

         3.7      For the avoidance of doubt, and not withstanding the
                  generality of Clause 8, all intellectual property and
                  technology developed during Phase One, whether relating to the
                  Prototypes or not, shall belong exclusively to Ceravision, or
                  such of its Associates in which it vests by operation of law.

4.       PHASE TWO

         4.1      Phase Two shall commence 30 days after Augrid shall give the
                  Phase Two Notice and shall order and pay the deposit for the
                  Phase Two Machine in accordance with the Machinery Lease
                  Agreement. The Phase Two Notice may not be given more than six
                  months after Phase One Completion. If the Phase Two Notice is
                  given before Phase One Completion, the costs incurred by
                  Augrid in respect of Phase Two shall be at the risk of Augrid
                  in the event of failure of Phase One.

         4.2      Augrid may not give the Phase Two Notice unless it has
                  available to it financial resources to fund all expenditures
                  envisaged in Phase Two as set out in the form of notice in
                  Schedule 3 and has attached confirmation from a bank
                  acceptable to Ceravision confirming the availability of such
                  resources.

<PAGE>   12

         4.3      During Phase Two, Augrid shall provide premises, facilities,
                  machinery (other than the Phase Two Machine), labour and all
                  other requirements for the establishment and commissioning of
                  the Pilot Line. Augrid shall use its best endeavours to
                  establish and commission the Pilot Line within six (6) months
                  after the delivery of the Phase Two Machine.

         4.4      During Phase Two, Ceravision shall produce or procure the
                  production of detailed specifications, initial or indicative
                  prices and terms for supply of Proprietary Components in and
                  after Phase Three. The parties shall endeavour to negotiate
                  reasonable terms for such supply. The parties recognise that
                  Proprietary Components are necessary for a technically proper
                  exploitation of the licensed Technology. Augrid agrees to buy
                  all its requirements for Proprietary Components from
                  Ceravision or its nominated supplier and Ceravision shall use
                  reasonable endeavours to make such supplies available to
                  Augrid.

         4.5      For the avoidance of doubt, and notwithstanding the generality
                  of Clause 8, all Intellectual Property and Technology
                  developed during Phase Two, whether relating to the Prototypes
                  or not, shall belong exclusively to Ceravision, or such of its
                  Associates in which it vests by operation of law.

5.       PHASE THREE

         5.1      Phase Three shall commence 30 days after Augrid shall give the
                  Phase Three Notice and shall order and pay the deposit for
                  laser sealing equipment as provided in of the Machinery Lease
                  Agreement. The Phase Three Notice may not be given before nor
                  more than six months after Phase Two Completion. By giving the
                  Phase Three Notice, Augrid accepts that Phase One and Phase
                  Two have been successfully completed and that Ceravision and
                  ITW have discharged their obligations in full under this
                  Agreement and the Machinery Lease Agreement in Phase Two.

         5.2      Augrid may not give the Phase Three Notice unless it has
                  available to it financial resources to fund all expenditure
                  envisaged in Phase Three as set out in the form of notice in
                  Schedule 4 and has attached confirmation from a bank
                  acceptable to Ceravision confirming the availability of such
                  resources.

         5.3      During Phase Three Augrid shall provide premises, facilities,
                  machinery (other than the laser sealing machinery to be
                  provided by ITW under the Machinery Lease

<PAGE>   13

                  Agreement), labour and all other requirements for the
                  establishment and commissioning of a manufacturing plant for
                  the Products. Augrid shall use its best endeavours to
                  establish and commission the manufacturing plant within one
                  year after the commencement of Phase Three.

6.       LICENCE TO MANUFACTURE AND EXCLUSIVITY

         6.1      Ceravision shall, or shall procure that such of its Associates
                  as hold any necessary Ceravision's Intellectual Property
                  Rights shall, from time to time during the Term assign or
                  license to Ceravision Ireland such of Ceravision's
                  Intellectual Property Rights as are licensed by Ceravision
                  Ireland to Augrid under the Licence.

         6.2      During the Term Ceravision will not and will procure that none
                  of its subsidiary undertakings will:

                  6.2.1    do anything which if done by Ceravision Ireland would
                           constitute a breach by it of Clause 2 of the Licence
                           Agreement (exclusivity);

                  6.2.2    assign or license to any person any of Ceravision's
                           Intellectual Property Rights on terms which would
                           allow the licensee or assignee to do anything which
                           if done by Ceravision Ireland would constitute a
                           breach by it of Clause 2 of the Licence Agreement.

         6.3      Subject to Clause 6.2 Ceravision will be entitled to license
                  Ceravision's Intellectual Property, including any of the
                  Technology or any of its other technology, or to enter into
                  any arrangement with any person or to take any other action it
                  considers appropriate to supply, develop, manufacture or
                  otherwise deal in any goods embodying Ceravision's
                  Intellectual Property and/or the Technology or any of its
                  other technology.

7.       PROTOTYPES AND PRE-PRODUCTION PRODUCTS

         7.1      Augrid will not dismantle or reverse engineer the Prototypes
                  or Pre-Production Products or otherwise attempt to reproduce
                  the Prototypes or Pre-Production Products except in accordance
                  with the Licence Agreement. Augrid will not dismantle or
                  reverse engineer or otherwise attempt to reproduce the laser
                  sealing machines to be supplied by ITW under the Machinery
                  Lease Agreement.

<PAGE>   14

         7.2      Augrid will, at its own expense, keep the Prototypes, the
                  Pre-Production Products and the laser sealing machines to be
                  supplied by ITW under the Machinery Lease Agreement in its
                  possession and under strict security as recommended by
                  security consultants appointed by Ceravision and will comply
                  with any security measures reasonably specified by such
                  consultants from time to time, which may include constant
                  supervision by or on behalf of Ceravision. Augrid shall give
                  the security consultants appointed by Ceravision access to its
                  promises and personnel to enable them to make and review
                  compliance with their recommendation. Augrid shall at all
                  times keep the Prototypes and Pre-Production Products insured
                  against all risks including accidental damage in their full
                  replacement cost. Augrid will not be entitled to use sell or
                  deal with the Prototypes or Pre-Production Products other than
                  for demonstration and evaluation purposes or otherwise as
                  specifically permitted by Ceravision.

         7.3      The Prototypes and the Pre-Production Products shall be the
                  property of Ceravision. Augrid shall not part with possession
                  of any Prototypes or Pre-Production Products and shall upon
                  request by Ceravision account for the whereabouts of each of
                  the Prototypes or Pre-Production Products and/or deliver up to
                  Ceravision the Prototypes or Pre-Production Products or any of
                  them.

8.       INTELLECTUAL PROPERTY RIGHTS

         8.1      All Intellectual Property Rights in the Prototypes, the
                  Pre-Production Products, the Products, the laser sealing
                  machines to be supplied by ITW under the Machinery Lease
                  Agreement and the Technology (whether existing at the date of
                  this Agreement or developed or registered during the term of
                  the Project) belong and will belong to Ceravision or its
                  Associates. Augrid agrees that it does not own and will not
                  own any Intellectual Property Rights in the Prototypes, the
                  Pre-Production Products, the Products, the laser sealing
                  machines to be supplied by ITW under the Machinery Lease
                  Agreement and/or the Technology. Ownership of any such rights
                  in improvements in the Products or the laser sealing machines
                  or processes for producing the Products shall be in accordance
                  with the provisions of the Licence Agreement and the Machinery
                  Lease Agreement. Without prejudice to the generality of the
                  foregoing nothing in this Agreement, nor the supply by
                  Ceravision or any of its Associates to Augrid or any of its
                  Associates of any machinery or other

<PAGE>   15

                  goods or any services shall confer any licence (implied or
                  otherwise) to use or otherwise to exploit Ceravision's
                  Intellectual Property Rights (or to use such machinery or
                  goods) which is not expressly set out in the Licence Agreement
                  and in the Machinery Lease Agreement.

         8.2      Ceravision may defer the supply of any Prototypes to Augrid
                  until such time as Ceravision has applied for patent
                  protection in respect of the relevant Technology but if it
                  does so Ceravision shall promptly apply for such protection.

9.       PAYMENTS

         9.1      In consideration for the services in Phase One referred to in
                  Clause 2 Augrid will pay Ceravision:

                  9.1.1    $1,000,000 (one million dollars) on the date that is
                           the latter of (i) five (5) business days after the
                           execution of this Agreement, or (ii) the execution of
                           the Machinery Lease Agreement;

                  9.1.2    $1,000,000 (one million dollars) six months after the
                           date of this Agreement or seven days after Ceravision
                           notifies Augrid that the Milestone has been achieved,
                           whichever is the earlier (so that for the avoidance
                           of doubt such payment shall not be conditional on
                           achievement of the Milestone); and

                  9.1.3    $1,000,000 (one million dollars) seven days after
                           Ceravision delivers the ten Prototypes (or the last
                           of the ten Prototypes) complying with the
                           Specification in accordance with Clause 3.1 (such
                           payment being conditional upon such delivery).

         9.2      All sums stated in this Agreement are exclusive of VAT and
                  sales taxes and net of all withholding taxes, imposts and
                  levies, which if applicable will be paid in addition at the
                  same time as the payment to which it relates or, if later,
                  upon demand by Ceravision.

         9.3      Any sum payable by Augrid to Ceravision in connection with
                  this Agreement which is not received by Ceravision in cleared
                  funds on the due date shall bear interest at 4% above the base
                  lending rate of Lloyds TSB Bank plc from the due date until

<PAGE>   16

                  receipt by Ceravision in cleared funds. All payments to be
                  made by Augrid to Ceravision shall be made free of any
                  deduction, set-off, counterclaim, enquiry or any other matter
                  whatsoever.

         9.4      Time for the making of payments by Augrid to Ceravision is of
                  the essence of this Agreement. Payments shall only be treated
                  as having been made when they are received in cleared funds in
                  the account specified in Clause 9.7.

         9.5      No part of the consideration paid by Augrid to Ceravision and
                  its Associates shall be refundable to Augrid in any
                  circumstances whatsoever, provided that this Clause shall not
                  be construed as excluding any right of Augrid to claim damages
                  for breach of contract by Ceravision.

         9.6      All payments to Ceravision in accordance with this Agreement
                  shall be made to the following bank account:

                           Account Name: Ceravision Limited

                           Account Number 11163825

                           Bank: Lloyds TSB Bank

                           Branch: Secklow Gate, Milton Keynes, UK

                           Sort Code: 30-15-53

                  or to such other dollar account in the UK or the US as
                  Ceravision may nominate for the purpose.

         9.7      Augrid shall not exhibit, publicise or otherwise disclose the
                  Prototypes referred to in Clause 9.1.3 to any person until it
                  has made all the payments required by Clause 9.1.3 and has
                  previously paid the amounts required by Clauses 9.1.1 and
                  9.1.2.

10.      WARRANTIES & LIABILITY

         10.1     Augrid warrants to Ceravision that:

                  10.1.1   Augrid is a corporation organised and validly
                           existing and in good standing under the laws of the
                           State of Nevada.

<PAGE>   17

                  10.1.2   Augrid has the necessary power and authority to enter
                           into and perform this Agreement and has taken all
                           corporate action necessary to authorise this
                           Agreement and this Agreement constitutes a valid and
                           binding obligation of Augrid in accordance with its
                           terms.

                  10.1.3   The execution by Augrid of, and the performance by
                           Augrid of its obligations under, this Agreement does
                           not and will not:

                           10.1.3.1   require the consent of or any filing with
                                      any court, authority or person;

                           10.1.3.2   result in a breach of, or constitute a
                                      default under, any instrument to which
                                      Augrid or any of its Associates is a party
                                      or by which Augrid or any of its
                                      Associates is bound; or

                           10.1.3.3   result in a breach of any order, judgment
                                      or decree of or undertaking to any court,
                                      authority or person to which Augrid or any
                                      of its Associates is a party or by which
                                      Augrid or any of its Associates is bound.

         10.2     Ceravision warrants to Augrid that:

                  10.2.1   Ceravision is a company duly incorporated under the
                           laws of England and Wales;

                  10.2.2   Ceravision has the necessary power and authority to
                           enter into and perform this Agreement and has taken
                           all corporate action necessary to authorise this
                           Agreement and this Agreement constitutes a valid and
                           binding obligation of Ceravision in accordance with
                           its terms;

                  10.2.3   the execution by Ceravision of, and the performance
                           by Ceravision of its obligations under, this
                           Agreement does not and will not:

                           10.2.3.1   require the consent of or any filing with
                                      any court, authority or person;

<PAGE>   18

                           10.2.3.2   result in a breach of, or constitute a
                                      default under, any instrument to which
                                      Ceravision or any of its Associates is a
                                      party or by which Ceravision or any of its
                                      Associates is bound; or

                           10.2.3.3   result in a breach of any order, judgment
                                      or decree of or undertaking to any court,
                                      authority or person to which Ceravision or
                                      any of its Associates is a party or by
                                      which Ceravision or any of its Associates
                                      its bound;

                  10.2.4   Ceravision has no present knowledge that Ceravision's
                           Intellectual Property Rights are not or will not be
                           valid and subsisting;

                  10.2.5   Ceravision or its Associates are the owners of the
                           patent applications detailed in the Licence
                           Agreement;

                  10.2.6   Ceravision believes at the date of this Agreement, in
                           the light of the technical information known to it
                           and its experience of the relevant technology and
                           having taken reasonable care in forming its opinion,
                           that:

                           10.2.6.1   it (or its Associates) will be able to
                                      produce the Prototypes during the time
                                      allowed for Phase One;

                           10.2.6.2   it (or its Associates) will be able to
                                      produce and deliver the Phase Two Machine
                                      during Phase Two;

                           10.2.6.3   the laser sealing machines to be supplied
                                      by ITW under the Machinery Lease Agreement
                                      will, if Augrid fulfils its obligations
                                      and provides all materials, machinery,
                                      facilities and other things required which
                                      are not Ceravision's responsibilities
                                      under this Agreement, and acquires the
                                      Proprietary Components from Ceravision or
                                      its Associates or nominated suppliers, be
                                      capable of carrying out their laser
                                      sealing function in the production of the
                                      Pre-Production Products and the Products;

<PAGE>   19

                  10.2.7   neither Ceravision nor any of its Associates is a
                           party to any litigation or arbitration proceedings in
                           relation to Ceravision's Intellectual Property Rights
                           or in relation to any allegation that the Technology
                           does or will infringe the Intellectual Property
                           Rights of any person and no such proceedings have
                           been threatened against Ceravision or any of its
                           Associates;

                  Provided that nothing in this Clause 10.2 or elsewhere in this
                  Agreement shall be construed as a warranty that Ceravision's
                  Intellectual Property Rights are or will be valid, subsisting
                  and enforceable nor that the Technology does not and will not
                  infringe the Intellectual Property Rights of any other person,
                  and any warranty or representation to such effect is expressly
                  excluded.

         10.3     Ceravision will comply with its specific obligations under
                  this Agreement but otherwise gives no warranty whatsoever in
                  relation to any aspect of the Project save as expressly set
                  out in Clause 10.2. Save as to the extent of its present
                  belief as expressly set out in Clause 10.2 Ceravision does not
                  warrant that it has or ever will have the ability to develop
                  the Technology necessary to produce the Prototypes, the
                  Pre-Production Product or the Products.

         10.4     If Ceravision and its Associates fails to comply with any of
                  its obligations under this Agreement and the Licence Agreement
                  and the Machinery Lease Agreement, their liability (if any) to
                  Augrid for damages for breach of contract or otherwise in
                  relation to this Agreement or its subject-matter (including
                  for misrepresentation, negligence or breach of statutory duty
                  but excluding a liability due to Ceravision's own fraud or
                  liability for death or personal injury arising from
                  Ceravision's own negligence) in respect of such failure shall
                  be limited so that the aggregate liability of Ceravision and
                  its Associates shall not exceed the total amount received by
                  Ceravision and its Associates in relation to the phase of the
                  Project in which the default occurs. In no circumstances shall
                  the payments made by Augrid to Ceravision or its Associates in
                  relation to Phase One and Phase Two be refundable after Phase
                  One Completion, nor shall such payments be treated for any
                  purposes as a loss for which Augrid is entitled to be
                  compensated even if there shall subsequently be discovered
                  some breach by Ceravision of its obligations in relation to
                  Phase One. No officer, employee or agent of Ceravision or of
                  any of its Associates shall have any liability to Augrid in
                  relation

<PAGE>   20

                  to this Agreement or its subject matter (save in respect of
                  his own fraud). Such officers, employees or agents and
                  Ceravision's Associates may enforce this term of this
                  Agreement as provided in the Contracts (Rights of Third
                  Parties) Act 1999.

         10.5     The parties agree that Phase One and Phase Two essentially
                  comprise exploratory research. In these circumstances the
                  parties agree that it is reasonable that:

                  10.5.1   the monies paid by Augrid to Ceravision and its
                           Associates are not refundable in any circumstances;

                  10.5.2   no liability shall accrue to Ceravision and its
                           Associates for any delay in performing their
                           obligations in Phases One and Two, and Ceravision and
                           its Associates shall have the time they advise they
                           require to discharge their obligations;

                  10.5.3   no warranty is being given by Ceravision or its
                           Associates relating to the throughput of the laser
                           sealing machine(s) to be supplied in Phase Three. The
                           specification of these machines will be established
                           prior to or at the completion of Phase Two; and

                  10.5.4   if Ceravision or its Associates fail to comply with
                           their obligations under this Agreement, the Licence
                           Agreement or the Machinery Lease Agreement or their
                           subject matter in Phase One or Phase Two their
                           aggregate liability in respect of such failures
                           (other than liability for death or personal injury
                           arising from negligence) shall not exceed $500,000.

                  Ceravision's Associates may enforce this term of this
                  Agreement as provided in the Contracts (Rights of Third
                  Parties) Act 1999.

11.      REPORTING AND ACCESS

         11.1     Ceravision will issue oral reports at least monthly and
                  written reports at least quarterly on the progress of Phase
                  One and PhaseTwo.

         11.2     Both Ceravision and Augrid will be entitled to visit each
                  other's premises at regular intervals on giving reasonable
                  advance notice of the visit. Other than in exceptional
                  circumstances visits by Augrid to Ceravision should not be
                  more often than

<PAGE>   21

                  quarterly. Augrid will be entitled to be accompanied by
                  potential investors funders or employees on its visits
                  (subject to the prior approval of Ceravision such approval not
                  to be unreasonably withheld, and subject to such persons
                  signing confidentiality undertakings in such form as
                  Ceravision shall require) and Ceravision agrees that it will
                  not initiate or receive from such persons any communication
                  without the prior consent or request of Augrid. Augrid shall
                  not communicate with any director (other than Anthony Cooper
                  or Timothy Reynolds), employee, contractor or supplier of
                  Ceravision without the express written consent or Ceravision.

12.      CONFIDENTIALITY

         12.1     Augrid will maintain the Confidential Information as strictly
                  confidential and:

                  12.1.1   will not use it or any part of it for any purpose
                           other than for the purposes of the Project;

                  12.1.2   will not part with possession of it or any part of it
                           as regards any information relating to the
                           manufacture of the Products (the parties recognise
                           that certain information which is presently
                           confidential, and is presently to be kept
                           confidential, will be disclosed by sale of the
                           Products tinder the Licence Agreement);

                  12.1.3   will safeguard it as appropriate for sensitive
                           commercial and technical information, including
                           through taking reasonable security measures at its
                           own expense;

                  12.1.4   will not without the prior written consent of
                           Ceravision disclose any of the Confidential
                           Information to any person other than its employees
                           who are required in the course of their duties to
                           receive and consider it for evaluating the Project
                           and who shall be informed by the Augrid of the
                           confidential nature of the information; Augrid shall
                           procure that Augrid's employees observe the terms of
                           this Agreement and Augrid shall be responsible for
                           any breach by such employees or any other person to
                           whom it may have disclosed Confidential Information
                           or any part of it with or without the consent of
                           Ceravision;

<PAGE>   22

                  12.1.5   will not without the prior written consent of
                           Ceravision allow any of the Confidential Information
                           or any Prototype or Pre-Production Product to be
                           transmitted, transported or held outside of the US or
                           the UK; and

                  12.1.6   following the termination of this Agreement under
                           Clause 14.1 (except where termination is under Clause
                           14.1.1 upon entering into of the Licence Agreement).
                           will return to Ceravision on request all of the
                           Confidential Information which is in a physical form
                           (including all copies) and will destroy any other
                           records (including, without limitation, those in
                           machine-readable form) containing any of the
                           Confidential Information and will not thereafter use
                           Confidential Information or any part of it for any
                           purpose.

         12.2     The terms of Clause 12.1 will apply both during and after the
                  term of the project and will survive termination of this
                  Agreement for any reason.

         12.3     The undertakings of Augrid in Clause 12.1 will not apply in
                  respect of any of the Confidential Information:

                  12.3.1   which is or comes into the public domain through no
                           act or default on the part of Augrid or its
                           Associates or their directors, employees or advisers;
                           provided that information shall not be deemed to be
                           in the public domain by reason only that it is known
                           to only a few of those people to whom it may be of
                           commercial interest; and a combination of two or more
                           portions of the Confidential Information shall not be
                           deemed to be in the public domain by reason only of
                           each separate portion being in the public domain; or

                  12.3.2   which Augrid can show by letter to Ceravision within
                           30 days of the date of this Agreement was in its
                           possession or known to it by being in its use or
                           being recorded in its files prior to the date of this
                           Agreement and which was not previously acquired by
                           Augrid directly or indirectly from Ceravision under
                           an obligation of confidence; or

                  12.3.3   which is hereafter lawfully disclosed or made
                           available to Augrid from a source other than
                           Ceravision without breach by Augrid or such source of
                           any obligation of confidentiality or non-use owed
                           towards Ceravision.
<PAGE>   23

         12.4     The undertakings of Augrid in Clause 12.1 shall not apply to
                  any disclosure of Confidential Information or any part of it
                  required by an order of a court of competent jurisdiction,
                  provided that Augrid shall have taken all reasonable steps to
                  avoid such disclosure becoming necessary.

         12.5     In case of any dispute as to whether any of the exceptions in
                  this Clause 12 applies it shall be for Augrid to prove that it
                  does apply.

         12.6     If the exceptions in this Clause 12 apply to some but not all
                  of the Confidential Information, those exceptions shall not
                  thereby apply to a combination of parts of the Confidential
                  Information to which they do and do not apply.

         12.7     Each party will be entitled to disclose the fact that it is
                  working on this Project with the other. Augrid may make public
                  the general features and benefits of the Products for
                  marketing purposes subject to obtaining Ceravision's prior
                  written consent (which shall not be unreasonably withheld) but
                  shall use its best endeavours to minimise disclosure of
                  Confidential Information or any part of it in so doing.

         12.8     Save as expressly provided in Clauses 3.4 and 3.7 of this
                  Agreement or as expressly provided in the Licence Agreement
                  Ceravision will not be obliged to disclose any of the
                  Confidential Information or to supply details of any of the
                  Technology to Augrid.

13.      ADVERTISING

         13.1     Augrid will be entitled to issue publicity, and advertising
                  material in relation to the Prototypes provided that no part
                  of the Confidential Information is disclosed and provided that
                  Ceravision has approved the material in writing before it is
                  published, such approval not to be unreasonably withheld.

         13.2     All Prototypes and Pre-Production Products will be branded
                  under such Ceravision trade mark as may be required by
                  Ceravision from time to time and Augrid must ensure that the
                  name of Ceravision is credited in all publicity and
                  advertising material in a manner as required by Ceravision.
                  Augrid will indicate on such material in the manner required
                  by Ceravision that the technology embodied in the Prototype or
                  Pre-Production Product is patented.

<PAGE>   24

         13.3     Augrid will not exhibit the Prototypes or Pre-Production
                  Products without Ceravision's consent and then only if a
                  representative of Ceravision is present at the exhibition
                  unless the requirement of such presence is waived in writing
                  by Ceravision.

14.      TERMINATION

         14.1     This Agreement shall terminate:

                  14.1.1   upon Phase Three Completion;

                  14.1.2   if the Licence Agreement or the Machinery Lease
                           Agreement shall terminate or become invalid or
                           unenforceable for any reason (provided always that if
                           the Licence Agreement or the Machinery Lease
                           Agreement shall be discharged or terminated due to
                           breach by Augrid or its act or default Ceravision may
                           elect to treat this Agreement as continuing):

                  14.1.3   at any time after Phase One Completion upon Augrid
                           notifying Ceravision that it does not intend to give
                           a Phase Two Notice or at any time after Phase Two
                           Completion upon Augrid notifying Ceravision that it
                           does not intend to give a Phase Three Notice;

                  14.1.4   if Augrid fails to give a Phase Two Notice within the
                           period specified in Clause 4.1 or fails to give a
                           Phase Three Notice within the period specified in
                           Clause 5.1;

                  14.1.5   if Augrid having failed to make any payment (whether
                           under this Agreement, the Licence Agreement or the
                           Machinery Lease Agreement) to Ceravision or any of
                           its Associates when due, has not made payment within
                           14 days of the date of a notice given to Augrid by
                           Ceravision requiring Augrid to remedy such default
                           and Ceravision gives notice to Augrid terminating
                           this Agreement; provided that for the purposes of
                           this Clause 14.1.5 only (and without prejudice to any
                           other remedy Ceravision may have) Augrid shall be
                           entitled, once and once only during the Term, to
                           claim a single period of grace of up to 120 days
                           during which Ceravision shall not be entitled to
                           terminate this Agreement under this Clause 14.1.5
                           (provided further that if at any time

<PAGE>   25

                           during the Term Augrid shall fail to make any payment
                           to Ceravision or any of its Associates by the date 21
                           days after the due date for payment Augrid shall be
                           deemed to have claimed its period of grace);

                  14.1.6   if either party:

                           14.1.6.1   is in material breach of its obligations
                                      under this Agreement (or in the case of
                                      Augrid, of its obligations under the
                                      Licence Agreement, the Machinery Lease
                                      Agreement or any other contract or
                                      arrangement relating to the Project) and
                                      (if such breach is capable of remedy)
                                      fails to remedy such breach within a
                                      reasonable time specified in a notice
                                      given to it by the other party requiring
                                      it to do so; or

                           14.1.6.2   has a petition presented against it for
                                      its winding-up or administration or passes
                                      a resolution or convenes a meeting to
                                      consider a resolution for winding-up or
                                      has a receiver or administrative receiver
                                      appointed in respect of any of its assets
                                      or proposes any voluntary arrangement with
                                      its creditors or takes or has any action
                                      taken in respect of it under the law of
                                      any jurisdiction relating to bankruptcy,
                                      insolvency, moratorium or protection from
                                      creditors;

                   and the other party gives notice terminating this Agreement;

                  whichever shall first occur.

         14.2     Ceravision may terminate this Agreement immediately by notice
                  in writing upon Augrid if there is a change of control of
                  Augrid where "control" means the ability to direct the affairs
                  of another whether by contract, ownership of shares or
                  otherwise howsoever.

         14.3     Upon termination of this Agreement for any reason:

                  14.3.1   the Project will automatically terminate;

                  14.3.2   subject to Clauses 14.5 and 14.6 the rights and
                           obligations of the parties under this Agreement will
                           terminate;

<PAGE>   26

                  14.3.3   Ceravision will not be required to refund to Augrid
                           any payments made by Augrid pursuant to Clause 9;

                  14.3.4   if the Agreement terminates during Phase One under
                           Clauses 14.1.5 or 14.1.6 otherwise than due to a
                           default by Ceravision, Ceravision will be entitled to
                           immediate payment by Augrid if all sums which would
                           have been payable under Clause 9.1 had Phase One been
                           completed;

                  14.3.5   subject to Clause 14.3.4 Augrid's payment obligations
                           under Clause 9 shall cease with effect from the date
                           of termination of the Agreement except that all sums
                           due for payment before the date of termination of the
                           Agreement (and any interest thereon to the date of
                           payment) shall remain due;

                  14.3.6   Augrid shall immediately return any Prototypes,
                           Pre-Production Products and the Confidential
                           Information to Ceravision (except where termination
                           is under Clause 14.1.1 upon entering into of the
                           Licence Agreement).

         14.4     Termination of the obligations of either party under this
                  Clause 14 is without prejudice to its liability for any breach
                  of this Agreement prior to such termination or to its
                  obligation to do anything which it ought to have done before
                  such termination.

         14.5     The provisions of Clauses 8 and 12 of this Agreement will
                  continue to apply following termination of this Agreement.

         14.6     If at any time Augrid shall be in breach of any of its
                  obligations under this Agreement, the Licence Agreement or the
                  Machinery Lease Agreement then, without prejudice to any other
                  right or remedy it may have in respect of such breach,
                  Ceravision shall be entitled to suspend further performance by
                  it of this Agreement until such time as Augrid shall have
                  remedied the breach.

15.      GENERAL

         15.1     This Agreement and attached Schedules together with the
                  Licence Agreement and the Machinery Lease Agreement sets out
                  the entire agreement between Augrid and Ceravision and its
                  Associates in connection with the transactions contemplated by
<PAGE>   27

                  this Agreement and supersedes all previous negotiations and
                  agreements oral or written. Schedules 1-4 are hereby fully
                  incorporated herein. All previous agreements between the
                  parties are agreed to be superseded and to have no further
                  effect except in relation to confidentiality. Each party
                  acknowledges that it has not relied on any warranty or
                  representation by the other or by any of its Associates or
                  their respective officers, employees or agents save as set out
                  in this Agreement and waives any rights it may have in respect
                  of any such warranty or representation not set out in this
                  Agreement. In particular, all obligations and benefits arising
                  from the Agreement between the parties dated 24 September 1998
                  are hereby cancelled.

         15.2     This Agreement is not capable of being varied except in
                  writing signed by the authorised representatives of each of
                  the parties.

         15.3     This Agreement is personal to Augrid and neither it nor any
                  benefit arising under it may be assigned by Augrid without the
                  prior written consent of Ceravision, which consent shall not
                  be unreasonably withheld if the proposed assignee agrees in
                  writing to assume all of Augrid's obligations hereunder,
                  except in the case where Ceravision in good faith believes
                  that the proposed assignee (i) is a direct or indirect
                  competitor of Ceravision or its Associates, (ii) would not
                  effectively exploit the Technology and maximize the production
                  of Products pursuant to the provisions herein, or (iii) has
                  been a defendant in any lawsuit or other proceeding involving
                  intellectual property infringement, unfair competition, unfair
                  trade practices, fraud or similar claims, where in all such
                  cases Ceravision shall have the right to withhold its consent
                  in its sole discretion. Ceravision may assign the benefit of
                  this Agreement to any company to which the whole of its
                  business and technical expertise relevant to the Project is
                  transferred so long as Ceravision has determined that such
                  assignee has the capability to comply with this Agreement in
                  the same manner as prior to any such transfer. Ceravision may
                  assign the benefit of this Agreement in whole or in part to
                  any of its Associates as it sees fit. Ceravision shall be free
                  to dispose of Ceravision's Intellectual Property Rights
                  provided that it retains such rights as may be necessary to
                  enable it to comply with this Agreement. Any of the
                  obligations of Ceravision or of any of Ceravision's Associates
                  under this Agreement or under any contract entered into with
                  Augrid or any of Augrid's Associates in pursuance of the
                  Project may be performed by Ceravision or any of Ceravision's
                  Associates. Ceravision or any of Ceravision's Associates to
                  which Augrid or any of Augrid's Associates has any

<PAGE>   28

                  obligation (including an obligation to make a payment) shall
                  be entitled to direct that the obligation of Augrid shall be
                  performed to or for the benefit of Ceravision or any of
                  Ceravision's Associates. The Contracts (Rights of Third
                  Parties) Act 1999 shall apply to this Agreement to the extent
                  that any of Ceravision's Associates for the time being may
                  enforce any term of this Agreement, but not otherwise. This
                  Agreement may be rescinded or varied by the parties to it
                  without the consent of any third party. Save as expressly
                  stated in Clause 10.4 or this Clause 15.3 the parties do n not
                  intend any term of this Agreement to be enforceable by any
                  third party and the Contracts (Rights of Third Parties) Act
                  1999 shall not apply.

         15.4     Ceravision shall not be liable to Augrid nor be deemed to be
                  in breach of this Agreement by reason of any delay in
                  performing or any failure to perform any of Ceravision's
                  obligations if the delay or failure was due to any cause
                  beyond Ceravision's reasonable control; provided however, that
                  Ceravision will immediately take appropriate action to
                  mitigate the effect or the causes of any such delay, and upon
                  the cessation of any such delay Ceravision will immediately
                  recommence the performance of its obligations under this
                  Agreement. Without prejudice to the generality of the
                  foregoing, the following shall be regarded as causes beyond
                  Ceravision's reasonable control:

                  15.4.1   act of God, explosion, flood, tempest, fire or
                           accident;

                  15.4.2   war or threat of war, sabotage, insurrection, civil
                           disturbance or requisition;

                  15.4.3   acts, restrictions, regulations, bye-laws,
                           prohibitions or measures of any kind on the part of
                           any governmental, parliamentary or local authority;

                  15.4.4   import or export regulations or embargoes;

                  15.4.5   Intellectual Property Rights of third parties;

                  15.4.6   strike, lock outs or other industrial actions or
                           trade disputes (whether involving employees of
                           Ceravision or of a third party);

<PAGE>   29

                  15.4.7   the death or incapacity of any of the key employees,
                           directors or consultants of Ceravision or any of its
                           Associates, suppliers or consultants;

                  15.4.8   difficulties which make obtaining raw materials,
                           labour, fuel, parts or machinery commercially
                           unreasonable;

                  15.4.9   power failure or breakdown in machinery.

         15.5     The parties will each bear their own legal and accountancy
                  costs and other expenses incurred in connection with this
                  Agreement.

         15.6     Any notice to be given in connection with this Agreement must
                  be in writing. Without prejudice to proof that it has been
                  effectively given in any other manner, it shall be deemed duly
                  served if delivered at or posted by first class recorded
                  delivery post (or recorded air mail if posted or addressed
                  outside the European Union) to the address of the party
                  concerned which is set out in this Agreement or notified to
                  the other party in accordance with this Clause. If delivered
                  personally, the notice shall be deemed served on the day on
                  which it is delivered. If posted, evidence that the notice was
                  properly addressed, stamped and put into the post shall be
                  conclusive evidence of service and the notice shall be deemed
                  served on the second business day after posting or, if posted
                  to an address outside the British Isles, on the fifth business
                  day after posting; but if a copy of a notice is also sent by
                  fax on or after the day of posting, it shall be deemed served
                  three hours after the end of fax transmission. A copy notice
                  to be sent by fax shall be sent:

                  15.6.1   if addressed to Ceravision, on (+44 1234) 756029
                           marked for the attention of T J Reynolds, with copy
                           to (+44 20 7796 6113 marked for the attention of P
                           Pattinson;

                  15.6.2   if addressed to Augrid, on 001 216 344 9008 marked
                           for the attention of M J Shaheed with copy to 001 330
                           253 4131 marked for the attention of R C Meeker;

                  or to any current fax number and contact details of the
                  intended recipient notified to the sender in accordance with
                  this Clause. A notice served or deemed served after

<PAGE>   30

                  5pm (recipient's local time) on any business day or on a day
                  which is not a business day shall be deemed served on the next
                  following Business Day.

               THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

<PAGE>   31

         15.7     The proper law of this Agreement is English law and the
                  parties hereby submit to the exclusive jurisdiction of the
                  English courts in relation to any claim or matter arising out
                  of this Agreement. Augrid hereby irrevocably appoints
                  Willoughby and Partners (Shareen Peeruohamed) of The Isis
                  Building, Thames Quay, 193 Marsh Wall, London E14 as its agent
                  for the service of process in England so that such service may
                  be validly effected on Augrid by service on such agent at such
                  address as if they had been a party to such proceedings. These
                  submissions shall not effect the right of Ceravision to take
                  any legal action or proceedings in any court of competent
                  jurisdiction for urgent preliminary specific performance
                  orders and/or injunctive or other conservatory and/or
                  provisional relief as Ceravision deems to be necessary or
                  appropriate to compel the other party and its officers,
                  employees and agents to comply with its obligations under this
                  Agreement ("Proceedings") nor shall the taking of Proceedings
                  in any jurisdiction preclude Ceravision from taking
                  Proceedings in any other jurisdiction.

THIS AGREEMENT has been executed on the date first stated above.

SIGNED by M J SHAHEED duly authorised for    )
and on behalf of AUGRID OF NEVADA, INC.      )
                                             )

---------------------------------------------------------
M. J. Shaheed,
Chief Executive Officer

SIGNED by TIMOTHY O'DONOGHUE duly            )
authorised for and on behalf of CERAVISION   )
LIMITED:                                     )

---------------------------------------------------------
Timothy O'Donoghue,
Director

<PAGE>   32

                                   SCHEDULE 1

                                  (CLAUSE 1.1)

                           THE PROTOTYPE SPECIFICATION

FED Specifications for the Augrid GPS Application:

1.       QVGA FED.

2.       90 lines per inch resolution.

3.       Digital Video Input, 8-bit RGB to be used for GPS application.

4.       12 VDC inputs for automotive GPS application.

5.       The working QVGA FED will be retrofitted into the Alpine CVA 1005
         Mobile Multimedia Station and demonstrated.

                                   SCHEDULE 2

                                  (CLAUSE 1.1)

                                  THE MILESTONE

When Ceravision shall be able to demonstrate a prototype 6.5 inch diagonal
screen functioning in Ceravision's Demountable Equipment at Ceravision's
premises or a location nominated by Ceravision.

<PAGE>   33

                                   SCHEDULE 3

                                  (CLAUSE 1.1)

                            FORM OF PHASE TWO NOTICE

                   [On headed paper of Augrid of Nevada, Inc]

To: Ceravision Limited

Gentlemen,

This notice is the Phase Two Notice as defined in the Exclusive Project
Agreement relating to Displays for Use in Automobiles made between Ceravision
Limited and Augrid of Nevada, Inc ("Augrid") dated ___________ 200 ("the
Agreement"). Terms defined in the Agreement have the same meanings in this
Notice.

I hereby certify, for and on behalf of Augrid as follows:

1.       Augrid has complied in all respects with its obligations under the
         Agreement, the Machinery Lease Agreement and the Licence Agreement
         [save in the following respects:-]

2.       Augrid has available to it, either in available liquid resources of its
         own or as committed facilities which are unconditional (save as to
         conditions fulfilment of which is within Augrid's sole control or
         conditions which will be fulfilled on commencement of Phase Two or by
         the performance of Phase Two to the points where relevant payments will
         be due). Letters from Augrid's bank [and other relevant financial
         institutions] addressed to Ceravision confirming the availability of
         such resources or facilities are annexed to this notice.

3.       Augrid's budget for Phase Two requires expenditure of $_____________ on
         Phase Two. A copy of that budget is annexed to this notice.

4.     In the opinion of the directors of Augrid the resources and facilities
       described at 2 above are adequate to finance Augrid's anticipated
       expenditure on Phase Two and Augrid has adequate working capital to carry
       on its business and to meet its obligations as they fall due throughout
       the period of Phase Two.

5.       Augrid has today made payment of the sum of $_________________ to ITW
         as required by Clause _________________ of the Machinery Lease
         Agreement.

<PAGE>   34

Accordingly I hereby give notice that Phase Two will commence on ___________
2000.

Yours faithfully

Chief Financial Officer

Augrid of Nevada, Inc

<PAGE>   35

                                   SCHEDULE 4

                                  (CLAUSE 1.1)

                           FORM OF PHASE THREE NOTICE

                   [On headed paper of Augrid of Nevada, Inc]

To:  Ceravision Limited

Gentlemen,

This notice is the Phase Three Notice as defined in the Exclusive Project
Agreement relating to Displays for Use in Automobiles made between Ceravision
Limited and Augrid of Nevada, Inc ("Augrid") dated ___________ 2000 ("the
Agreement"). Terms defined in the Agreement have the same meanings in this
Notice.

I hereby certify, for and on behalf of Augrid as follows:

1.       Augrid has complied in all respects with its obligations under the
         Agreement the Machinery Lease Agreement and the Licence Agreement [save
         in the following respects:-]

2.       Augrid has available to it, either in liquid resources of its own or as
         committed facilities which are unconditional (save as to conditions
         fulfilment of which is within Augrid's sole control or conditions which
         will be fulfilled on commencement of Phase Three or by the performance
         of Phase Three to the points where relevant payments will be due).
         Letters from Augrid's bank [and other relevant financial institutions]
         addressed to Ceravision confirming the availability of such resources
         or facilities are annexed to this notice.

3.       Augrid's budget for Phase Three requires expenditure of
         $_______________ on Phase Three. A copy of that budget is annexed to
         this notice.

4.       In the opinion of the directors of Augrid the resources and facilities
         described at 2 above are adequate to finance Augrid's anticipated
         expenditure on Phase Three and Augrid has adequate working capital to
         carry on its business and to meet its obligations as they fall due
         throughout the period of Phase Three.

5.       Augrid has today made payment of the sum of $________________ to ITW as
         required by Clause ____________ of the Machinery Lease Agreement.

<PAGE>   36

Accordingly I hereby give notice that Phase Three will commence on
__________________ 2000

Yours faithfully

Chief Financial Officer

Augrid of Nevada, Inc.

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