Document:

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                                                                  EXHIBIT 10.34

                                    AGREEMENT

     This Agreement, entered into this 18 day of February, 2000, by and between
Protein Polymer Technologies, Inc., a corporation of Delaware, having a
principal place of business at 10655 Sorrento Valley Road, First Floor, San
Diego, CA 92121 (hereinafter "PPT"), and Sanyo Chemical Industries, Ltd. a
corporation of Japan, having its principal place of business at 11-1 Ikkyo
Nomoto-cho, Higashiyama-ku, Kyoto 605-0995, Japan (hereinafter "Sanyo");

Recitals

     1. PPT states that it is the owner of PPT Patents and, to its knowledge,
PPT Know-How, as defined hereinbelow, and is the exclusive licensee under
certain other patent rights, and a non-exclusive licensee under other patent
rights relating to the manufacture, use and sale of Proteinaceous Polymers
effective in promoting cell culture, and of Coated Products, as herein defined.

     2. The parties desire to enter into an agreement under which Sanyo is
exclusively licensed by PPT under PPT Patent Rights, as herein defined, and for
the use of PPT Know-How in the manufacture, use and sale of Licensed Products in
fields further defined herein as the Sanyo Field.

     The parties, therefore, agree as follows:

                             ARTICLE 1: DEFINITIONS

     As used in this Agreement, the following terms shall have the following
definitions:

     1.1 "PPT Patents" shall mean patents owned by PPT as listed on attached
Schedule 1.1, all continuations, divisionals, continuations-in-part, and
reissues thereof, rights under any re-examinations certificates relating
thereto, and all foreign counterparts of any of the listed patents or aforesaid
continuations-in-part.

     1.2 "PPT Patent Rights" shall mean PPT's rights under PPT patents.

     1.3 "Proteinaceous Polymer" shall mean a proteinaceous polymer which has
segments containing the amino acid sequences RGD or IKVAV (defined by standard
single letter amino acid designations) useful in promoting cell culture.

     1.4 "Coated Product" shall mean any formed object made of another polymer,
resin, glass, or metal and coated with a Proteinaceous Polymer.

     1.5 "Cell Line" means a microorganism or cell line which contains a
nucleotide sequence which encodes a Proteinaceous Polymer.

     1.6 "Licensed PPT Cell Lines" shall mean E. coli strain EC003 containing
the plasmid pPT0101 used to produce ProNectin(R) F or the plasmid pPT0278 used
to produce ProNectin(R) L.

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<PAGE>

     1.7 "Cell Line Growth Information" shall mean all information necessary to
establish in Sanyo's possession Licensed PPT Cell Lines producing ProNectin(R) F
and ProNectin(R) L in the quantity and quality described in PPT's letter to
Sanyo dated February 18, 2000.

     1.8 "PPT Know-How" shall mean the information and documentation required
for Sanyo to:

     (a)  store and grow by fermentation the Licensed PPT Cell Lines and induce
          their production of ProNectin(R) F and ProNectin(R) L;

     (b)  purify ProNectin(R) F and ProNectin(R) L from biomass obtained by
          fermentation;

     (c)  analyze ProNectin(R)F and ProNectin(R)L for their purity, cell
          attachment activity, and leachable endotoxin content;

     (d)  prepare ProNectin(R)F Diluent and ProNectin(R)L Diluent;

     (e)  prepare ProNectin(R)F+ from ProNectin(R)F;

     (f)  bottle and sterilize by autoclaving ProNectin(R) F in 1 and 5 mg
          quantities, ProNectin(R) L in 1 mg quantity, ProNectin(R) F+ in 1 mg
          quantity; ProNectin(R) F Diluent in 1 and 5 mL volumes, and
          ProNectin(R) L Diluent in 1 mL volume;

     (g)  analyze the fill weights, fill volumes, and sterility of the products
          specified in (f);

     (h)  coat ProNectin(R)F on non-tissue culture treated, non-sterile 6, 24-,
          and 96-well plates, and 35, 60, and 100 mm dishes;

     (i)  sterilize by e-beam irradiation the Coated Products specified in (h);
          and

     (j)  analyze the cell attachment activity, leachable endotoxin content, and
          sterility of the products specified in (h);

as practiced by PPT in its commercial production of the products specified in
(f) and (h) above.

     1.9 "Sanyo Field" shall mean the manufacture, use, sale, importation and/or
exportation of Protelnaceous Polymers, including derivatives and Coated Products
thereof, for in vitro cell attachment and culture and/or for use under the
limitations of a "For Research Use Only" label, where the use is based upon the
cellular receptor binding activity of the RGD or IKVAV amino acid sequence.
Without limiting the foregoing, the Sanyo Field shall include uses for: (i)
screening of drugs and other bioactive materials; (ii) quality control and other
analytical applications in research and/or development; and (iii) quality
control and other analytical applications in the manufacture of other products.
The Sanyo Field shall not include the manufacture, use, sale, importation and/or
exportation of Proteinaceous Polymers, including derivatives and Coated Products
thereof, for use in therapeutic, device, or diagnostic products that require
approval for marketing by any regulatory authority.

     1.10 "Licensed Products" shall mean the Proteinaceous Polymers
ProNectin(R)F and ProNectin(R)L, including derivatives and Coated Products
thereof, as listed on attached Schedule 1.2.

     1.11 "Affiliate" shall mean any entity directly or indirectly controlling,
controlled by, or under common control with, a party. "Control" as used in this
Paragraph 1.11 shall mean ownership of fifty percent (50% or more of the entity
in question.

                                       2
<PAGE>

     1.12 "Date of this Agreement" shall be the date first written hereinabove.

                            ARTICLE 2: LICENSE GRANT

     2.1 PPT grants to Sanyo an exclusive, world-wide, irrevocable paid up
license under PPT Patents and PPT Patent Rights for the use of PPT Know-How and
Licensed PPT Cell Lines solely to make, have made, use, sell, offer for sale,
import and/or export Licensed Products within the Sanyo Field.

     2.2 The rights granted under Paragraph 2.1 hereof shall include the
right to grant sublicenses, including the right to pass on to customers,
distributors and ultimate users the right to use any Licensed Product within the
Sanyo Field. Sanyo shall be fully responsible for enforcing the terms and
conditions of this Agreement with respect to any such sublicensees.

     2.3 PPT agrees to assign, and hereby does assign, to Sanyo its entire right
and interest, if any, under the SUBLICENSE AGREEMENT FOR RGD-CONTAINING
ENGINEERED PROTEIN POLYMERS, dated October 1, 1991, originally entered into
between PPT and Teljos Pharmaceuticals, Inc. (hereinafter "Telios").

     2.4 PPT agrees to assign, and hereby does assign, to Sanyo its entire right
and interest under the PHS PATENT LICENSE AGREEMENT-NONEXCLUSIVE, dated November
27, 1996, entered into between National Institutes of Health ("NIH") and PPT
("AGREEMENT") and shall notify NIH of the assignment of the AGREEMENT to Sanyo
by PPT within ten (10) days from the Date of this Agreement.

                         ARTICLE 3: TRADEMARK ASSIGNMENT

     3.1 PPT agrees to assign, and hereby does assign, to Sanyo the entire
right, title and interest in and to the trademarks "PRONECTIN,' "PRONECTIN F",
"PRONECTIN L', and "SMARTPLASTIC" and the good will appurtenant thereto
throughout the world for use on or in connection with polymeric proteins,
peptides, products comprising polymeric proteins or peptides, and other related
products and services, including the U.S. trademark registrations 1,705,720 and
2,168,749.

     3.2 PPT agrees not to use or adopt any trademark or service mark that is
confusingly similar to "PRONECTIN," "PRONECTIN F', "PRONECTIN L", or
"SMARTPLASTIC" when applied to goods or services offered or promoted by PPT or
any Affiliate of PPT.

                  ARTICLE 4: TECHNOLOGY TRANSFER AND SERVICES

     4.1 Within thirty (30) days after the Date of this Agreement, PPT shall
deliver to Sanyo sufficient quantities of Licensed PPT Cell Lines to enable
Sanyo to establish the Licensed PPT Cell Lines and provide to Sanyo the PPT
Know-How, including the Cell Line Growth Information.

                                       3
<PAGE>

     4.2 PPT agrees to maintain a stock of Licensed PPT Cell Lines, and
provide additional quantities of the Licensed PPT Cell Lines to Sanyo within
fifteen (15) days of Sanyo's written request, for a period not to exceed one (1)
year from the Date of this Agreement, in order to ensure that Sanyo is enabled
to establish the Licensed PPT Cell Lines according to the Cell Line Growth
Information. Sanyo shall pay PPT for all reasonable costs incurred by PPT in
delivering additional quantities of Licensed PPT Cell Lines to Sanyo pursuant to
this Paragraph 4.2. If Sanyo notifies PPT within the one (1) year period that
Sanyo is not able to establish the Licensed PPT Cell Lines using such additional
quantities of the Licensed PPT Cell Lines, PPT shall establish the Licensed PPT
Cell Lines for Sanyo and provide Sanyo with such Cell Lines at the expense of
Sanyo. Sanyo shall provide written notice to PPT once it has established the
Licensed PPT Cell Lines according to the Cell Line Growth Information and
thereafter, or upon expiration of such one (1) year period, PPT shall have no
further obligation to provide the Licensed PPT Cell Lines to Sanyo.

     4.3 Upon request of Sanyo, PPT shall train Sanyo's personnel at PPT's
facility in San Diego, California, in the bulk manufacture of ProNectin(R) L,
using PPT Cell Lines, by conducting fermentation, purification, and analyses of
the product demonstrating that it meets specifications, provided that PPT's
obligation to train such personnel shall be limited to one (1) man-month within
two (2) months of the Date of this Agreement. The expenses of transport, food
and lodging of such personnel in connection with such training shall be paid by
Sanyo. All other training expenses shall be paid by PPT.

     4.4 For a period of one (1) year from the Date of this Agreement, upon the
written or oral request of Sanyo concerning the practice of PPT Know-How, PPT
shall give Sanyo advice and such further information as PPT possesses to enable
Sanyo to manufacture the Licensed Products in compliance with the specifications
PPT has established for such Licensed Products under PPT Know-How.

                            ARTICLE 5: ASSET TRANSFER

     5.1 within thirty {30) days after the Date of this Agreement, PPT shall
deliver to Sanyo the information in PPT's possession with respect to customers
of the Licensed Products and their use of the Licensed Products.

     5.2 Within thirty (30) days after the Date of this Agreement, PPT shall
ship to a location designated by Sanyo, F.O.B. San Diego, the inventory of
Licensed Products as described in PPT's letter to Sanyo dated February 18, 2000.

     5.3 For a period of one (1) year from the Date of this Agreement, Sanyo
shall have the right to sell the Licensed Products transferred under the
Paragraph 5.2 with PPT's label without changing it.

     5.4 For a period of one (1) year from the Date of this Agreement, PPT shall
take orders from customers on Sanyo's behalf and provide referral services to
customers.

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<PAGE>

     5.5 For a period of six (8) months from the Date of this Agreement, PPT
agrees to maintain all business and market files concerning Licensed Products in
PPT's possession. Upon request of Sanyo, PPT shall deliver to Sanyo such files
from time to time. After the expiration of such six (6) month period, PPT shall
have no further obligation to maintain or deliver such files to Sanyo.

                             ARTICLE 6: COMPENSATION

     6.1 As compensation for the rights granted by PPT to Sanyo under Article 2
hereof, the trademarks assigned under Article 3 hereof, the technology
transferred under Article 4 hereof, and the assets transferred to Sanyo under
Article 5 hereof, Sanyo shall pay to PPT the sum of three hundred and fifty-five
thousand U.S. dollars (U.S. $355,000) as follows:

     (a) One hundred and eighty thousand U.S. dollars (U.S. $180,000) within ten
(10) days of the Date of this Agreement, and

     (b) One hundred and seventy-five thousand U.S. dollars (U.S. $175,000)
within ten (10) days of the receipt of all of the Licensed Cell Lines and PPT
Know-How, including the Cell Line Growth Information described in Paragraph 4.1,
the information described in Paragraph 5.1 and the inventory of the Licensed
Products described in Paragraph 5.2.

                    ARTICLE 7: REPRESENTATIONS AND WARRANTIES

     7.1 PPT represents and warrants that it is the owner of all right, title
and interest in and to PPT Patents and Licensed PPT Cell Lines free and clear of
all liens and encumbrances.

     7.2 PPT represents and warrants that to its knowledge it is the owner of
all right, title and interest in and to the trademarks PRONECTIN" and
"SMARTPLASTIC" free and clear of any liens and encumbrances and that, prior to
the assignment made hereunder, it has the exclusive right to use the aforesaid
marks in commerce, throughout the United States, for use as described in the
Principal Register of the U.S. Patent and Trademark Office under registration
numbers 1,705,720 and 2,168,749, respectively.

     7.3 PPT further represents and warrants that to its knowledge it has the
requisite right and authority to grant the rights and licenses provided for in
this Agreement and that to its knowledge the grant of such rights and licenses
does not violate any right of any third party whether vested, unvested or
inchoate.

     7.4 PPT represents and warrants that PPT Know-How transferred pursuant to
Article 4 hereof is current, accurate, and sufficient in detail and content to
enable Sanyo to grow Licensed PPT Cell Lines and manufacture and sell Licensed
Products in compliance with the specifications PPT has established for said
Licensed Products as described in PPT's letter to Sanyo dated February 18, 2000.

                                       5
<PAGE>

     7.5 PPT makes no representations and provides no warranty with respect to
the assets transferred pursuant to Article 5 hereof, except that the inventory
met the specifications as described in Article 7.4 upon manufacture.

     7.6 PPT represents and warrants that it has not commercialized, on its own
or through third parties, Proteinaceous Polymers other than the Licensed
Products and will not commercialize during the term of this Agreement or
thereafter, on its own or through third parties, Proteinaceous Polymers in the
Sanyo Field.

     7.7 PPT represents and warrants that it has taken and will continue to take
during the term of this Agreement all reasonable security measures to protect
the secrecy, confidentiality and value of the PPT Know-How to the extent that
this is feasible and consistent with its own R & D, commercialization, and
marketing of products and technology it sells outside the Sanyo Field and
instructing customers in appropriate uses thereof.

     7.8 PPT represents and warrants that neither the execution and delivery of
this Agreement nor the consummation of the transactions contemplated under this
Agreement either requires PPT to obtain any permits, authorizations or consents
under current law from any governmental authority or, to PPP's knowledge, from
any third party or results in the breach of or gives rise to a cause for
termination of any agreement or contract to which PPT is a party or by which PPT
is bound or which otherwise relates to PPT Know-How.

     7.9 PPT represents and warrants that there are no pending claims, actions,
judicial or adversary proceedings concerning the PPT Know-How or the
manufacture, use or sale of any product under PPT Patent Rights, and no such
action or proceeding is threatened.

     7.10 PPT represents and warrants that, to its knowledge, neither the
manufacture, use, nor sale of any Licensed Product within the scope of PPT
Patent Rights will: (i) conflict with, infringe upon or violate any patent or
other proprietary right of any third party, except as described in PPT's letter
dated February 18, 2000; or (ii) breach any confidential relationship or violate
any contractual right of any third party except as described in PPP's letter
dated February 18, 2000; and PPT has no notice of any claim that Sanyo's
manufacture, use or sale of any such Licensed Product will or might conflict
with, infringe, or violate any patent, proprietary right, or violate any
contractual right of any third party.

                           ARTICLE 8: CONFIDENTIALITY

     8.1 PPT and Sanyo shall treat information comprising PPT Know-How as
confidential. Sanyo shall not use PPT Know-How outside the Sanyo Field, and
shall not disclose PPT Know-How to others during the term of this Agreement;
provided, however, that Sanyo may, at its discretion, disclose PPT Know-How to
customers, distributors and end users of Licensed Products for use thereof in
the Sanyo Field, and to manufacturing sublicensees who agree to maintain the PPT
Know-How in confidence and not disclose it to others during the term of this
Agreement. PPT shall not use PPT Know-How in the Sanyo Field nor disclose PPT
Know-How to others for use in the

                                       6
<PAGE>

Sanyo Field; provided, however, that PPT may use PPT Know-How outside the Sanyo
Field and, at its discretion, may disclose PPT Know-How for use outside the
Sanyo Field to customers, distributors and end users of products sold outside
the Sanyo Field, and also to other manufacturing licensee(s) who agree to
maintain the PPT Know-How in confidence and not disclose it to others during the
term of this Agreement.

     8.2 In the event that Sanyo discloses any technical or business information
(collectively "Sanyo Information") in confidence to PPT, subject to the
provisions of Paragraph 8.3 hereof, PPT shall not use such information or
disclose it to others during the term of this Agreement without the express
written consent of Sanyo.

     8.3 The provisions of Paragraphs 8.1 and 8.2 shall not apply to any
disclosure or use by the receiving party of information:

     (a) known to the receiving party prior to disclosure thereto by the
disclosing party, as evidenced by the receiving party's written records;

     (b) that is now in the public domain, or which hereafter comes into the
public domain, without fault of the receiving party;

     (c) that is at any time lawfully disclosed to the receiving party from a
third party without violation of any obligation to the disclosing party
hereunder, and without restriction on the further disclosure or use of the
information running in favor of such disclosing party;

     (d) that is developed by the receiving party without reference to the
information as received from the disclosing party;

     (e) that it is necessary for either party to disclose in connection with
the filing of any patent application;

     (f) that a regulatory agency requires (i) Sanyo to disclose in connection
with an application for regulatory approval of an application, use, or process
for manufacture of a Licensed Product within the Sanyo Field; or (ii) PPT to
disclose in connection with an application for regulatory approval of an
application, use, or process for manufacture of a Licensed Product outside the
Sanyo Field;

     (g) that either party is required to disclose by court order; or

     (h) is requested by a treating physician or other health professional in
the event that a medical emergency arises that is associated with the handling
or exposure to a Licensed Product or any precursor thereof, and the physician or
other health professional determines that a medical or occupational health need
exists for such information in order to administer appropriate emergency or
first-aid treatment.

                                       7
<PAGE>

No combination or compilation of information shall qualify under any of the
exceptions of this Paragraph 8.3 merely because it is constituted of plural
elements of information which qualify under one or more of such exceptions, even
though all of such elements of information do so qualify, unless the combination
or compilation is fully set forth in a single document meeting at least one of
such exceptions.

                             ARTICLE 9: INFRINGEMENT

     PPT will promptly notify Sanyo of any counterfeiting, imitation or passing
off of any Licensed Product or suspected infringement of any PPT Patent in the
Sanyo Field by any third party of which PPT becomes aware. Sanyo shall have the
right at its sole discretion and at its own expense to bring an action to police
such third party infringement. PPT agrees to join such action as a party
plaintiff provided that Sanyo underwrites the reasonable expense of
representation of PPT as a party plaintiff in such action based on claims which
Sanyo asserts. PPT shall fully cooperate with Sanyo in the prosecution of such
action including the provision of witnesses and documentation which Sanyo
requests in connection with the investigation of the claim and the submission of
evidence supportive thereof. PPT may be represented in such action by its own
counsel at its own expense. It is understood and agreed that Sanyo is not and
shall not be obligated to provide representation to PPT or to defray PPT's
expenses in the defense of any claim brought by any party against PPT, either in
any action or proceeding brought by Sanyo under this Article 9 or otherwise.

                             ARTICLE 10: INDEMNITIES

     10.1 PPT shall indemnify, defend, and hold Sanyo harmless from and against
any and all loss, claims, suits, proceedings, expenses, recoveries, and damages,
including costs and attorneys fees arising out of, based on, or caused by breach
of any of the warranties of Article 7 hereof.

     10.2 Sanyo shall indemnify, defend, and hold PPT harmless from and against
any and all loss, claims, suits, proceedings, expenses recoveries, and damages,
including costs and reasonable attorneys fees arising out of, based on, or
caused by any manufacture, use or sale of Licensed Products by Sanyo, or by any
customer of Sanyo, except that Sanyo shall have no obligation to defend or
indemnify PPT with respect to any damages, losses or liabilities arising out of
gross negligence or more culpable act or omission of PPT.

     10.3 PPT shall indemnify, defend, and hold Sanyo harmless from and against
any and all loss, claims, suits, proceedings, expenses, recoveries, and damages,
including costs and reasonable attorneys fees arising out of, based on, or
caused by any manufacture, use or sale of Proteinaceous Polymer(s), including
derivatives or Coated Products thereof, by PPT either outside the exclusive
grant to Sanyo under this Agreement or in violation thereof, or by any customer
of PPT, except that PPT shall have no obligation to defend or indemnify Sanyo
with respect to any damages, losses or liabilities arising out of gross
negligence or more culpable act or omission of Sanyo.

                                       8
<PAGE>

                        ARTICLE 11: TERM AND TERMINATION

     11.1 This Agreement shall remain in effect until the expiration of the last
to expire of patents comprised by PPT Patent Rights.

     11.2 Either party shall be entitled to remedies at law and equity
recognized and applied by a court having proper jurisdiction over a dispute that
may arise between the parties.

                            ARTICLE 12: ASSIGNABILITY

     This Agreement shall be assignable by Sanyo to any third party subject to
transfer of the entire business to which this Agreement relates.

                               ARTICLE 13: NOTICES

     Any notice or report or other communication permitted or required under
this Agreement shall be in writing and sent by certified mail, express mail,
postage prepaid, return receipt requested, or by commercial delivery service,
addressed to the party to whom the notice is to be given. Ail notices, reports
or other communications made hereunder shall be deemed to have been made five
days after the date postmarked, if sent by mail, or two business days after
deposit if sent by commercial delivery service. Changes in address shall be
accomplished by a notice in compliance with this Article 13. The current address
for each party is as follows:

       PROTEIN POLYMER                      SANYO CHEMICAL
       TECHNOLOGIES, INC.                   INDUSTRIES, LTD.
       10655 Sorrento Valley Road           11-1 Ikkyo Nomoto-cho,
       San Diego, CA 92101                  Higashiyama-ku, Kyoto 605-0995
       United States of America             Japan
       Attention: J. Thomas Parmeter,       Attention: Masakazu SugJura, General
       President                            Manager, Bio & Medical Group,
                                            Technology & Business Innovation
                                            Department, Research Division

                            ARTICLE 14: MISCELLANEOUS

     14.1 Sanyo shall have the right to mark Licensed Products with the numbers
of PPT Patents applicable thereto.

     14.2 This Agreement shall be construed in accordance with the law and
judicial decisions of the State of California in effect as of the Date of this
Agreement.

     14.3 PPT agrees for itself, its successors, and assigns, that it will
execute without further consideration any further lawful documents and
assurances, including recordable trademark assignments, that may be deemed
necessary by Sanyo to secure to Sanyo's interest in the rights transferred under
this Agreement.

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<PAGE>

     14.4 This Agreement represents the entire understanding between the parties
as of the Date of this Agreement with respect to the subject matter hereof, and
supersedes all prior agreements, negotiations, understandings, representations,
statements, and writings, between the parties relating thereto. No modification,
alteration, waiver or change in any of the terms of this Agreement shall be
valid or binding upon the parties hereto unless made in writing and specifically
referring to this Agreement and duly executed by each of the parties hereto.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their duly authorized representatives as of the day and
year first written above.

PROTEIN POLYMER                         SANYO CHEMICAL
TECHNOLOGIES, INC.                      INDUSTRIES, LTD.

BY:   /s/ J. THOMAS PARMETER            By:   /s/ FUSAYOSHI MASUDA
   ----------------------------            ---------------------------
   J. Thomas Parmeter                      Fusayoshi Masuda
   PRESIDENT                               SENIOR MANAGING DIRECTOR

                                       10
<PAGE>

                                  SCHEDULE 1.1
                                  ------------
<TABLE>
<CAPTION>
PATENT                                                        CORRESPONDING INTERNATIONAL
NUMBER            ISSUE DATE     TITLE                        PATENTS AND/OR APPLICATIONS
------            ----------     -----                        ---------------------------
<S>               <C>            <C>                          <C>

U.S. 5,514,581    May 7, 1996    Functional Recombinantly     PCT/US89/05016: issued in
                                 Prepared Synthetic Protein   Austral[a, Europe, Finland,
                                 Polymer                      Norway, South Korea; Pending in
                                                              Denmark, Japan

U.S. 5,760,004    Jun 2, 1998    Chemical modification of     PCT/US95/12959: Issued in
                                 repetitive polymers to       Australia. Pending in Canada,
                                 enhance water solubility     Europe, Japan

U.S. 5,770,697    Jun 23, 1998   Peptides Comprising          Not Applicable
                                 Repetitive Units of Amino
                                 Acids and DNA Sequences
                                 Encoding the Same
</TABLE>

<TABLE>
<CAPTION>
PATENT
APPLICATION                                                   CORRESPONDING INTERNATIONAL
NUMBER            FILING DATE    TITLE                        PATENTS AND/OR APPLICATIONS
-----------       -----------    -----                        ---------------------------
<S>               <C>            <C>                          <C>
U.S.     S/N      Jun 7, 1995    Peptides     Comprising      Not Applicable
08/482,085                       Repetitive Units of Amino
                                 Acids and DNA Sequences
                                 Encoding the Same

U.S.     S/N      Jun 7, 1995    Functional Recombinanty      Not Applicable
08/475,411                       Prepared Synthetic Protein
                                 Polymer

U.S.     S/N      Jun 7, 1995    Functional Recombinantly     Not Applicable
08/478,029                       Prepared Synthetic Protein
                                 Polymer

U.S.     S/N      Feb 23, 1998   Chemical modification of     Not Applicable
09/028,086                       repetitive polymers to
                                 enhance water solubility

</TABLE>

                                  SCHEDULE 1.2
                                  ------------

                        Trade Name             Product Number
                        ----------             --------------
                        ProNectin F            PF1001, PF1005
                        ProNectin L            PL1001
                        ProNectin F Plus       PP1001
                        SmartPlastic           PF3035, PF3060, PF3100,
                                               PF4006, PF4024, PF4096

                                       11INTERNATIONAL LICENSING AND CONSULTING AGREEMENT

     This  International Licensing Agreement (hereinafter  called
"Agreement') is entered into and made as of the date last written
herein between KENMAR Company Trust (hereinafter called "KENMAR")
and  AimRite  Holdings Corporation (hereinafter  called  "AimRite
Holdings")  and  also  hereinafter individually  referred  to  as
"party" or "Party" or collectively referred to as the parties" or
"Parties" is made with reference to the following facts:

     WHEREAS both KENMAR and AimRite Holdings believe that  their
combined  efforts in the development, production and  sale  of  a
Computer  Optimized Adaptive Suspension Technology including  the
Setflex  Air  Suspension  System  based  on  certain  proprietary
information,  suspension  technology,  confidential  information,
trade secrets, documentation, copyrights, trademarks, tradenames,
documentation, patents and pending patents held by  KENMAR  would
be in the best interests of both Parties; and

     WHEREAS  AimRite  Holdings  is  desirous  of  utilizing  the
services of certain consultants who are under contract to  KENMAR
in order to assist it in the fulfillment of its obligations under
this agreement.

     IT IS THEREFORE AGREED AS FOLLOWS:

  1.   Definitions

     a.    The  Suspension  Technology The term  "The  Suspension
Technology"  as  used  herein shall mean  the  hardware  designs,
control    algorithms,   proprietary   information,    inventions
(patentable   or  unpatentable),  ideas,  methods,  data,   trade
secrets,   confidential   information,  copyrights,   trademarks,
tradenames, patents and patents pending owned by or which are  or
hereafter  owned,  developed or obtained  by  KENMAR  and/or  its
consultants   relating  to  the  following  patents:  #4,722,548,
#4,634,142, #4,651,838, #4,677,263 #5,529,152 and any  subsequent
patents or patents pending derived therefrom.

     b.   Customer The term "customer" shall mean those third parties,
whether  individual,  corporate or otherwise  that  purchase  any
product  manufactured  by AimRite Holdings using  the  technology
either directly, through an OEM Agreement or sublicense.

     c.   Price. The term " Price" shall mean the price charged by
AimRite  Holdings for the products manufactured or caused  to  be
manufactured,  distributed or sold by  it  using  the  technology
under this agreement, sublicense or any O.E.M. agreement.

     d.   Sale. The term "sale" as used herein shall mean any contract
or  agreement,  written, electronic or oral by which  a  customer
obtains  the  possession  or  use of a  product  manufactured  by
AimRite Holdings using the suspension technology licensed herein.
This  term  shall  include any payments received  by  AimRite  on
account of any O.E.M. agreements and/or sublicenses:

     e.    Original Equipment Manufacturer's Agreements. The term
"Original   Equipment   Manufacturer's  Agreements"   or   O.E.M.
Agreements means those agreements entered into from time to  time
by  AimRite  Holdings which allow AimRite Holdings to  offer  the
products  using the technology for manufacture, distribution  and
sale  to  customers  as part of a package at  a  price  which  is
competitive  to  that  offered  through  AimRite  Holdings'   own
distribution network.

     f.    Trademark. The term "trademark" shall mean the acronym
"COAST" the words "SETFLEX" , Setflex Air Suspension and any  and
all symbols, stylized logos, trademarks, trade names, slogans  or
service  marks  whether  or not copyrighted,  service  marked  or
trademarked,   of  any  kind  associated  with   the   suspension
technology,  including  but not limited  to  the  term  "Computer
Optimized Adaptive Suspension Technology" from which the  acronym
is  derived  and  any and all other such trademarks,  as  defined
herein, which are developed by KENMAR and/or its consultants.

     g.     Confidential  Information.  The  term   "confidential
information" shall mean all information obtained by  or  provided
to  AimRite Holdings by KENMAR and/ or its consultants during the
course  of  this  agreement with relation to the development  and
sale of the suspension technology.

  2.   Grant of License

     a.   KENMAR hereby appoints AimRite Holdings as its non-exclusive
master  licensee  for the manufacture, sales and distribution  of
products  derived from the suspension technology for  the  entire
world  subject to its faithful performance of the terms  of  this
agreement.  AimRite  Holdings  understands  and  agrees  that  no
exclusive  license is created or intended by this  agreement  and
that  KENMAR  has the right to engage in similar agreements  with
other  master licensees for the same geographical area which  may
be  contemplated by the parties to this agreement as well as make
direct sales of products derived from the suspension technology.

     b.   Original Equipment Manufacturers Agreements and Sublicenses.
AimRite  Holdings  is authorized to enter into O.E.M.  Agreements
and  sublicenses with customers, if necessary to  facilitate  the
performance of its duties under this agreement. Such sublicenses,
shall be subject to the approval of KENMAR.

     c.    Use of Name During the term of this agreement, AimRite
Holdings shall be authorized to use the trademarks, as defined in
this  agreement in its advertising and sales material subject  to
the  approval of KENMAR. The parties agree that KENMAR  owns  all
the   rights  to  the  trademarks  and  any  derivatives  thereof
throughout the world..

     d.   Direct Sales by KENMAR. KENMAR retains the right to make
direct sales to customers, including multi-national corporations,
governmental  agencies  and  governments  whom  it  has  directly
contacted at such prices and under such circumstances as  it,  in
its  sole  discretion, shall deem to be in the best interests  of
KENMAR.

  3.   Payment

     a.   Payment Amount. For the grant of the licensing rights herein
AimRite Holdings shall transfer to KENMAR within 10 days  of  the
signing  of  this  agreement one million seven  hundred  thousand
(1,700,000) shares of stock in AimRite Systems International  and
two million (2,000,000) shares of stock in AimRite Holdings.   As
and  for  further  consideration for the  grant  of  the  license
herein,  for  each  sale as defined in Paragraph  I  (d)  herein,
KENMAR  shall be entitled to receive eight percent  (8%)  of  the
AimRite Holdings price as defined in Paragraph I (c).

     b.   Sales Tax AimRite Holdings shall be responsible for the
collection and payment of any applicable sales tax.

     c.   Remittance of funds All payments received from the sales
shall  be  remitted to KENMAR or the assignees named in Paragraph
3(g)  hereof  within 30 days of the receipt  of  funds  from  the
customer by AimRite Holdings. This right to payment shall survive
the termination of this agreement.

     d.   Payment for Underpayment Any payment found to be due to
KENMAR  and/or  the  assignees named  in  Paragraph  3(g)  hereof
pursuant  to any review or audit conducted pursuant to Paragraphs
4  (d) shall be paid immediately by AimRite Holdings plus ten per
cent (10%) per annum from the date such payment was due.

     e.   No Offsets All sums payable by one party to the other or the
assignees  named  in  Paragraph 3(g)  under  the  terms  of  this
agreement  shall be paid without offsets, setoff; or  adjustments
of any kind.

     f.   Past Due Payments Any past due payments owing from one party
to  the  other  or the assignees named in Paragraph  3(g)  hereof
shall  accrue interest at the rate of ten percent per annum until
paid.

     g.   Assignment KENMAR hereby irrevocably assigns two percent
(2%) of the total payments due to it under Paragraph 3 (a) hereof
to  James Hamilton. KENMAR further hereby irrevocably assigns two
percent (2%) of the total payments due to it under Paragraph 3(a)
hereof  to Lonnie Woods. It is the intent of this paragraph  that
the  payments due to James Hamilton and Lonnie Woods pursuant  to
this  assignment shall be calculated in the same  manner  as  the
payments due KENMAR under Paragraph 3 (a) and thereafter  applied
as  a  reduction of the amount due KENMAR by AimRite Holdings  so
that the amounts due James Hamilton and Lonnie Woods are based on
the term "sale" as defined in Paragraph l(d). It is the intent of
this  calculation that KENMAR receive a net of four percent  (4%)
and James Hamilton and Lonnie Woods two percent (2%) each out  of
the total of the eight percent (8%) called for in Paragraph 3(a).

     h.   Consultants AimRite Holdings shall pay to KENMAR a monthly
consulting  fee plus costs for the use of consulting services  of
Lonnie  Woods and James Hamilton or for such other or  additional
consultants as KENMAR shall, in its sole and absolute discretion,
deem necessary and appropriate to assist AimRite Holdings in  the
fulfillment  of its obligations under Paragraph 4 hereof  as  set
forth  in paragraph 5 hereof. AimRite Holdings agrees to pay  for
such costs and services as billed for by KENMAR.

  4.   Obligations of AimRite Holdings

     a.   Manufacturing, Distributing and Sales. AimRite Holdings
shall  diligently  work to develop, manufacture,  distribute  and
sell products based the technology.

     b.   Distributorships and Manufacturing Sublicenses. AimRite
Holdings  shall exercise its best efforts, if it deems  necessary
and   appropriate,  to  seek  and  obtain  agreements,  including
sublicenses,  for  the  manufacture,  distribution  and  sale  of
products based on the technology. Such agreements are subject  to
the review and approval of KENMAR.

     c.   Authority AimRite shall have no right, power or authority to
bind  KENMAR to any agreement without the written consent of  and
acceptance by KENMAR.

d.   Supervision and Marketing. AimRite Holdings shall diligently
supervise and monitor the performance of all sublicensees and
distributors who are parties to agreements obtained by it for the
manufacture and/or distribution of products based on the
suspension technology. Other duties shall include, but not be
limited, to:

       (i)  Providing regular updates to KENMAR of the significant sales
     and accomplishments of AimRite Holdings with reference to the
     development,  manufacturing  and  sales  of  the  suspension
     technology.

       (ii) Receiving and responding to all support related questions
     regarding the suspension technology from customers.

     e.   Records. Maintain full, clear and accurate records with
respect  to all sales and make such records available at  AimRite
Holdings' cost to KENMAR and/or those parties to whom KENMAR  has
assigned  part  of  the  royalty payable  hereunder  pursuant  to
Paragraph  3(g), upon reasonable request but not later  than  one
week  after  such  request,  at the offices  of  KENMAR.  AimRite
Holdings further agrees to allow such auditors and accountants as
may be employed by KENMAR and/or those parties to whom KENMAR has
assigned  part  of  the  royalty payable  hereunder  pursuant  to
Paragraph 3(g) access to its books and records relating to  sales
as  defined in this Agreement. If the amount found due and  owing
to  KENMAR  under this Agreement is more than 25% of  the  actual
amount  paid,  then  AimRite Holdings shall pay  KENMAR's  actual
costs in performing the review of the records, including but  not
limited  to, such professional fees and costs as are incurred  by
KENMAR..

     f.   Reports AimRite Holdings shall provide a quarterly marketing
report  for KENMAR describing AimRite Holdings' activities during
the  prior  period  with  reference to  the  fulfillment  of  its
obligations under this agreement.

     g.   Payment to Assignees AimRite Holdings shall pay the sums
which  have  been  assigned to Lonnie Woods  and  James  Hamilton
pursuant  to Paragraph 3(g ) of this agreement directly to  those
individuals named therein and provide a report thereof to KENMAR.
It  is  specifically agreed that James Hamilton and Lonnie  Woods
are  intended third-party beneficiaries of this agreement to  the
extent  of  the assignments set forth in Paragraph 3(g)  and,  to
that  extent,  may enforce those rights directly against  AimRite
Holdings.

     h.   No Modification or Reverse Engineering. AimRite Holdings
will  not  modify,  reverse engineer, decompile  or  enhance  the
software  associated  with  the  suspension  technology   without
KENMAR's  prior written consent. KENMAR shall own all proprietary
rights  in  any  such modifications or enhancements  and  AimRite
Holdings  hereby  transfers and assigns all  proprietary  rights,
including patent, copyright and trade secret rights to  any  such
modifications or enhancements to KENMAR.

     i.   Copyright and Patent Notice AimRite Holdings agrees to place
a  copyright, trademark and patent notices identifying KENMAR  as
the  copyright, trademark and/or patent owner on such  copies  of
the  suspension  technology where such notice  does  not  already
appear.  Such  notices  shall  also  appear  in  any  of  AimRite
Holdings' advertisements and promotional material.

  5.   Obligations of KENNLAR

     a.   Consulting Services KENMAR shall provide the services of
such consultants as agreed upon herein to assist AimRite Holdings
in  the  fulfillment of its obligations under Paragraph 4  hereof
and as follows. The payment for such consultants is set forth  in
Paragraph  3(h). KENMAR will, at the request of AimRite Holdings,
provide  its consultants to reasonably personally assist  in  the
closing  of  major  potential sales by  distributors.  Reasonable
personal  assistance shall include reasonable telephonic  support
from  the  United  States.  In the  event  KENMAR  shall  send  a
consultant  traveling  for the purpose of assistance  to  AimRite
Holdings under the terms of this agreement AimRite Holdings shall
provide transportation, meals and lodging for the consultant. All
transportation  costs  shall  be  paid  by  AimRite  Holdings  in
advance.

     b.    Right of First Refusal In the event that KENMAR or its
consultants shall develop new or additional technology  based  on
or  related to the suspension technology licensed herein,  KENMAR
shall  first offer such new or additional technology  to  AimRite
Holdings under the same terms and conditions of this agreement so
long  as  AimRite is, in the sole and absolute opinion of KENMAR,
in compliance with the terms of this agreement.

  6.   Non-Circumvention

     Both  Parties agree that, during the term of this  agreement
and  thereafter,  that  neither party will,  either  directly  or
indirectly,  entertain,  engage or participate  in  any  activity
designed to circumvent the terms of this agreement or the  rights
accruing  to  the parties after termination of this agreement  by
engaging in dealings or conduct the object of which would  be  to
deprive  either party of their expectations under this Agreement.
Neither party shall directly or indirectly, entertain, engage  or
participate  in  any attempt by any heir, successors,  assign  of
any'  entity to circumvent this agreement nor shall any party  to
this   Agreement  engage  in  the  dealings  prohibited  by  this
paragraph with any entity known or suspected by either  party  to
have  been  established  for  the purpose  of  circumventing  the
Agreement. This Paragraph shall not apply if KENMAR exercises its
rights under Paragraphs 2(a) and 2(d) if this agreement.

  7.   Termination

     a.   In General. This agreement is deemed to have commenced on
the  date  this  agreement is signed and shall remain  in  effect
thereafter  for twenty years from the date of the first  sale  of
the  suspension technology or the term of the last to  expire  of
any patents or pending patent rights licensed to AimRite Holdings
under this agreement or pursuant to the exercise of any right  of
first  refusal provided for this agreement, whichever is  longer.
Either party may terminate this agreement within thirty (30) days
prior written notice based on any of the following:

       (i)  The other party's failure to comply with any term  or
     obligation set forth in this agreement within thirty (30) days
     after written notification of such failure.

       (ii) Mutual agreement of the parties.

     b.    Rights  and Duties Upon Termination. In the  event  of
termination  of  this agreement both parties  and  the  assignees
named in Paragraph 3(g) shall have the rights and obligations set
forth in Paragraphs 2 and 3 of this Agreement until such time  as
the last unit of the suspension technology licensed hereunder  is
sold  by  either  AimRite  Holdings directly,  under  any  O.E.M.
agreement or a sublicense. Payments to KENMAR for the services of
consultants  pursuant to Paragraph 3(h) shall be immediately  due
and  payable.  AimRite  Holdings  shall  immediately  return  all
confidential  information to KENMAR. The provisions of  Paragraph
4(h) shall also survive the termination of this agreement.

  8.   Relationship of the Parties

     Neither   AimRite   Holdings  nor  KENMAR   (including   its
consultants)  are  authorized to obligate the other  party  other
than  as stated in this Agreement. This Agreement does not create
a  joint venture, partnership or association. The relationship of
the  parties shall be as principal to principal. AimRite Holdings
shall  not  obtain or claim any right, title or interest  in  any
work product, patent, pending patent, writings, ideas or concepts
either   written,   electronic  or  oral  from   any   consultant
contractually  obligated to KENMAR who services are  provided  to
AimRite   Holdings   under   this  agreement   and   specifically
acknowledges that all such work product, patent, pending  patent,
writings,  ideas or concepts either written, electronic  or  oral
are the exclusive property of KENMAR.

  9.   Indemnification

     a.   By KENM4R . KENMAR shall indemnify and hold harmless AimRite
Holdings  against any and all liability, suits,  claims.  losses,
damages  and  judgments,  and  shall  pay  all  costs  (including
reasonable  attorneys fees) and damages to the extent  that  such
liability,  costs  or  damages  arise  from  a  claim  that   the
suspension  technology  infringes on  any  third  party's  United
States patent or copyright. KENMAR may, at its option, defend  or
settle  such action, or any part thereof brought against  AimRite
Holdings  arising  from  a  claim  that  such  infringement,   as
described  herein, has occurred. KENMAR's obligations under  this
section  are  conditioned on being given  (i)  Prompt  notice  in
writing  of such claim by AimRite Holdings and (ii) the right  to
control  and direct the investigation, defense and settlement  of
each such claim. The provisions of this section shall survive any
termination of this agreement

b.   By AimRite Holdings. AimRite Holdings shall indemnify and
hold harmless KENMAR against any and all liability, suits,
claims. losses, damages and judgments, and shall pay all costs
(including reasonable attorneys fees) and damages to the extent
that such liability, costs or damages arise from a claim that the
suspension technology was the proximate result of any non-patent
infringement damages by any third party. AimRite Holdings may, at
its option, defend or settle such action, or any part thereof
brought against KENMAR arising from that a claim for damages, as
described herein, has occurred. AimRite Holdings' obligations
under this section are conditioned on being given (i) Prompt
notice in writing of such claim by KENMAR and (ii) the right to
control and direct the investigation, defense and settlement of
each such claim. The provisions of this section shall survive any
termination of this agreement.

  10.  General Provisions

     a.   Assignment. Neither KENMAR nor AimRite Holdings Owner will
assign  any  of  the rights or obligations under  this  agreement
without the prior written consent of the other party.

     b.    Notices All notices under this agreement to be sent by
certified mail, return receipt requested, to the address below or
to  any  other  address to which the parties may, from  time  top
time, designate:

     KENMAR:

     AimRite Holdings:

     c.   Integration and Amendment This written Agreement sets forth
the  entire  understanding of the parties  with  respect  to  the
subject  matter  of  this  Agreement  and  supersedes  all  prior
agreements, understandings and negotiations with respect  to  the
subject  matter hereof. Neither party to this Agreement (nor  its
officers, agents, employees, representatives or attorneys  of  or
for  any party) has made any statement or representation  to  any
other party regarding any fact relied upon in this Agreement, and
each  party  does  not rely on any statement,  representation  or
promise  of  any  other  party (or any officer,  agent  employee,
representative or attorney for the other party) in executing this
Agreement  except  as  expressly stated in  this  Agreement.  Any
amendments  to  this Agreement must be in writing and  signed  by
both parties.

     d.   Investigation Each party to this Agreement has made such
investigation of the facts pertaining to this Agreement  and  all
the matters pertaining thereto as it deems necessary.

     e.   Review and Ratification Each party or responsible officer
thereof  has  read  this  Agreement,  including  each  and  every
provision  thereof,  and understands the  contents  thereof  Each
party  represents  that  the  shareholders  of  each  party   has
consented either in writing or at a meeting of shareholders  duly
held, to the transactions contemplated hereby.

     f.   Construction Each party has cooperated in the drafting and
preparation of this Agreement. Hence, in any construction  to  be
made  of  this Agreement, the same shall not be construed against
any party.

     g.   Terms Each term of this Agreement is contractual and not
merely a recital.

     h.    Legal Advice Each Party has received independent legal
advice from its respective attorneys with regard to the making of
this Agreement and each and every term hereof

     i.    Consideration Both parties acknowledge that they  have
received equal, valuable and legally sufficient consideration  in
return  for  the  obligations  and  benefits  given  under   this
Agreement.

     j.   Governing Law This Agreement shall be deemed to have been
executed  and  delivered  in the State of  Nevada  and  shall  be
governed by and interpreted with the Laws of the State of  Nevada
except  those laws relating to choice of law. The parties  hereby
agree  that any dispute regarding the interpretation or  validity
of  this  Agreement will be subject to the exclusive jurisdiction
of the Nevada State Courts in and for Clark County, Nevada and to
the  personal and exclusive jurisdiction and venue of this court.
The  parties  agree that the prevailing side in any such  dispute
shall be entitled to reasonable attorney's fees in enforcing this
Agreement.

     k.   Waiver. Failure by either party to enforce, at any time or
for  any  period of time any of the provisions of this  agreement
shall  not be construed as a waiver of such provisions and  shall
in   no  way  effect  a  party's  right  to  later  enforce  such
provisions.

     l.   Severability. If any part of this Agreement is determined by
any  court or tribunal of competent jurisdiction to be wholly  or
partially  unenforceable  for any reason,  such  unenforceability
shall not affect any other part of this agreement.

     m.   Remedies. All rights conferred under this Agreement or by
any  other  instrument  or law shall be  cumulative  and  may  be
exercised singularly or concurrently. Each party agree  that  any
breach  of this agreement would cause irreparable damage  to  the
other  parties to this agreement and that, in the event  of  such
breach,  the  remaining party to this agreement  shall  have,  in
addition  to  any  and  all remedies at  law,  the  right  to  an
injunction,  specific performance or such other equitable  relief
to  prevent the violation of such party's obligations under  this
agreement.

     n.   Good Faith and Fair Dealing All implied in law covenants of
Good  Faith  and  Fair  dealing shall  be  incorporated  by  this
reference into this agreement.

     o.   Future Benefits This Agreement is binding upon and shall
inure  to  the benefit of the parties, their heirs and successors
in interest whether individual, or corporate.

     p.   Time. Time is of the essence in this agreement.

     q.   Execution by Facsimile This Agreement may be executed in
counterparts  and  by facsimile signature. When  each  party  has
signed  and  delivered  at  least  one  such  counterpart,   each
counterpart shall be deemed an original and, when taken  together
with  other  signed counterparts, shall constitute one  agreement
which  shall be binding on all parties. No counterpart  shall  be
effective  until  all  of  the parties  here  have  executed  and
exchanged an executed counterpart hereof

     AGREED:

     KENMAR  COMPANY  TRUST                     AIMRITE  HOLDINGS
CORPORATION

     Dated: Feb 25, 1997                     Dated: Feb 25, 1997

     By:                                By:

     /s/ Kenneth P. Coleman (T)                   /s/ Kenneth  P.
Coleman

     Trustee                                 President

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