Document:

Exhibit 4.4

                          REGISTRATION RIGHTS AGREEMENT

         Registration  Rights  Agreement  dated  as of  March  ___,  2004  (this
"Agreement")  by and between  Radix  Marine,  Inc., a Nevada  corporation,  with
principal   executive  offices  located  at  9119  Ridgetop  Blvd.,  Suite  260,
Silverdale,  WA 98383 (the  "Company"),  and La Jolla Cove Investors,  Inc. (the
"Initial Investor").

         WHEREAS, upon the terms and subject to the conditions of the Securities
Purchase  Agreement  dated as of even date herewith,  by and between the Initial
Investor and the Company (the "Securities Purchase Agreement"),  the Company has
agreed to issue and sell to the Initial  Investor a Convertible  Debenture  (the
"Debenture") of the Company in the aggregate principal amount of $300,000 which,
upon  the  terms  of  and  subject  to  the  conditions  contained  therein,  is
convertible into shares of the Company's Common Stock (the "Common Stock") ; and

         WHEREAS,  to induce the  Initial  Investor  to execute  and deliver the
Securities Purchase Agreement, the Company has agreed to provide with respect to
the Common Stock issued upon  conversion of the Debenture and the Warrant Shares
certain registration rights under the Securities Act;

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained herein, the parties hereto,  intending to be legally bound,
hereby  agree as follows:

         1. Definitions

         (A) As used in this  Agreement,  the  following  terms  shall  have the
meanings:

              (1) "Affiliate" of any specified Person means any other Person who
directly, or indirectly through one or more intermediaries, is in control of, is
controlled  by, or is under common  control with,  such  specified  Person.  For
purposes of this  definition,  control of a Person means the power,  directly or
indirectly,  to direct or cause the direction of the  management and policies of
such Person  whether by contract,  securities  ownership or  otherwise;  and the
terms "controlling" and "controlled" have the respective meanings correlative to
the foregoing.

              (2) "Closing Date" means the date of this Agreement.

              (3) "Commission" means the Securities and Exchange Commission.

              (4) "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended,  and the rules and  regulations  of the Commission  thereunder,  or any
similar successor statute.

              (5)  "Investor"  means  each  of  the  Initial  Investor  and  any
transferee or assignee of Registrable Securities which agrees to become bound by
all of the terms and provisions of this  Agreement in accordance  with Section 8
hereof.

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              (6)  "Person"  means  any  individual,  partnership,  corporation,
limited   liability   company,   joint  stock   company,   association,   trust,
unincorporated organization,  or a government or agency or political subdivision
thereof.

              (7)  "Prospectus"   means  the  prospectus   (including,   without
limitation,  any preliminary  prospectus and any final prospectus filed pursuant
to Rule 424(b) under the Securities Act, including any prospectus that discloses
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  on Rule 430A  under the  Securities  Act)
included  in the  Registration  Statement,  as  amended or  supplemented  by any
prospectus  supplement  with respect to the terms of the offering of any portion
of the Registrable  Securities covered by the Registration  Statement and by all
other  amendments  and  supplements to such  prospectus,  including all material
incorporated  by reference in such  prospectus and all documents filed after the
date of such  prospectus by the Company under the Exchange Act and  incorporated
by reference therein.

              (8)  "Public   Offering"  means  an  offer   registered  with  the
Commission and the appropriate  state  securities  commissions by the Company of
its Common Stock and made pursuant to the Securities Act.

              (9)  "Registrable  Securities"  means the Common  Stock  issued or
issuable (i) upon  conversion or redemption of the  Debenture,  (ii) exercise of
the  Conversion  Warrants  (iii)  pursuant  to the terms and  provisions  of the
Debenture or the  Securities  Purchase  Agreement,  (iv) in connection  with any
distribution, recapitalization,  stock-split, stock adjustment or reorganization
of the Company;  provided,  however, a share of Common Stock shall cease to be a
Registrable  Security  for  purposes  of this  Agreement  when it no longer is a
Restricted Security.

              (10)  "Registration  Statement" means a registration  statement of
the Company filed on an appropriate  form under the Securities Act providing for
the  registration  of,  and the sale on a  continuous  or  delayed  basis by the
holders  of, all of the  Registrable  Securities  pursuant to Rule 415 under the
Securities Act,  including the Prospectus  contained  therein and forming a part
thereof,  any amendments to such registration  statement and supplements to such
Prospectus,  and all exhibits to and other material incorporated by reference in
such registration statement and Prospectus.

              (11) "Restricted  Security" means any share of Common Stock issued
upon  conversion or redemption of the Debenture or Warrant except any such share
that (i) has been  registered  pursuant to an effective  registration  statement
under the  Securities  Act and sold in a manner  contemplated  by the prospectus
included in such registration statement, (ii) has been transferred in compliance
with  the  resale  provisions  of Rule  144  under  the  Securities  Act (or any
successor  provision  thereto) or is  transferable  pursuant to paragraph (k) of
Rule 144 under the Securities Act (or any successor  provision thereto) or (iii)
otherwise  has been  transferred  and a new share of Common Stock not subject to
transfer  restrictions  under the  Securities  Act has been  delivered  by or on
behalf of the Company.

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              (12)  "Securities  Act"  means  the  Securities  Act of  1933,  as
amended,  and the rules and  regulations  of the Commission  thereunder,  or any
similar successor statute.

         (B)  All  capitalized  terms  used  and not  defined  herein  have  the
respective meaning assigned to them in the Securities  Purchase Agreement or the
Debenture.

         2. Registration

         (A) Filing and  Effectiveness  of Registration  Statement.  The Company
shall prepare and file with the Commission as soon as practicable a Registration
Statement relating to the offer and sale of the Registrable Securities and shall
use its best  efforts  to cause the  Commission  to  declare  such  Registration
Statement  effective  under the Securities Act as promptly as practicable but in
no event  later than the  Deadline  (as defined in the  Debenture).  The Company
shall  promptly  (and,  in any event,  no more than 24 hours  after it  receives
comments  from the  Commission),  notify the Buyer when and if it  receives  any
comments from the Commission on the Registration  Statement and promptly forward
a copy of such  comments,  if they are in  writing,  to the Buyer.  At such time
after the filing of the Registration  Statement pursuant to this Section 2(A) as
the Commission  indicates,  either orally or in writing,  that it has no further
comments  with respect to such  Registration  Statement or that it is willing to
entertain  appropriate  requests  for  acceleration  of  effectiveness  of  such
Registration  Statement,  the Company shall promptly, and in no event later than
two (2) business  days after  receipt of such  indication  from the  Commission,
request that the  effectiveness  of such  Registration  Statement be accelerated
within forty-eight (48) hours of the Commission's  receipt of such request.  The
Company  shall  notify  the  Initial   Investor  by  written  notice  that  such
Registration  Statement has been declared  effective by the Commission within 24
hours of such declaration by the Commission.

         (B) Eligibility for Use of Form S-3 or an SB-2. The Company agrees that
at such  time as it meets all the  requirements  for the use of  Securities  Act
Registration  Statement  on Form S-3 or SB-2 and it shall file all  reports  and
information  required to be filed by it with the  Commission  in a timely manner
and take all such other action so as to maintain such eligibility for the use of
such form.

         (C) Additional  Registration Statement. In the event the Current Market
Price  declines  to a price per share  the  result of which is that the  Company
cannot satisfy its conversion  obligations to Initial  Investor  hereunder,  the
Company  shall,  to the extent  required  by the  Securities  Act  (because  the
additional shares were not covered by the Registration  Statement filed pursuant
to Section  2(a)),  as reasonably  determined by the Initial  Investor,  file an
additional Registration Statement with the Commission for such additional number
of Registrable  Securities as would be issuable upon conversion of the Debenture
(the  "Additional  Registrable  Securities")  in  addition  to those  previously
registered.  The Company shall, to the extent required by the Securities Act, as
reasonably  determined  by the  Initial  Investor,  prepare  and  file  with the
Commission  not later than the 30th day  thereafter,  a  Registration  Statement
relating to the offer and sale of such  Additional  Registrable  Securities  and
shall use its best efforts to cause the Commission to declare such  Registration
Statement  effective under the Securities Act as promptly as practicable but not
later than the Deadline.  The Company shall not include any other  securities in
the  Registration  Statement  relating to the offer and sale of such  Additional
Registrable Securities.

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         (D) (i) If the Company proposes to register any of its warrants, Common
Stock or any other  shares of common stock of the Company  under the  Securities
Act  (other  than a  registration  (A) on Form  S-8 or S-4 or any  successor  or
similar forms,  (B) relating to Common Stock or any other shares of common stock
of the Company issuable upon exercise of employee share options or in connection
with any employee  benefit or similar  plan of the Company or (C) in  connection
with a direct or indirect  acquisition  by the Company of another  Person or any
transaction  with respect to which Rule 145 (or any successor  provision)  under
the  Securities  Act applies),  whether or not for sale for its own account,  it
will each such time,  give prompt  written  notice at least 20 days prior to the
anticipated  filing  date  of  the  registration   statement  relating  to  such
registration  to each  Investor,  which notice  shall set forth such  Investor's
rights under this Section 2(D) and shall offer such Investor the  opportunity to
include in such registration  statement such number of Registrable Securities as
such Investor may request.  Upon the written request of any Investor made within
10 days after the  receipt  of notice  from the  Company  (which  request  shall
specify the number of Registrable  Securities intended to be disposed of by such
Investor),  the  Company  will use its best  efforts to effect the  registration
under the Securities Act of all Registrable Securities that the Company has been
so requested to register by each Investor, to the extent requisite to permit the
disposition  of  the  Registrable  Securities  so  to be  registered;  provided,
however, that (A) if such registration involves a Public Offering, each Investor
must sell its Registrable Securities to any underwriters selected by the Company
with the consent of such  Investor on the same terms and  conditions as apply to
the Company and (B) if, at any time after giving written notice of its intention
to register any Registrable  Securities  pursuant to this Section 2 and prior to
the effective date of the  registration  statement filed in connection with such
registration,  the Company  shall  determine for any reason not to register such
Registrable  Securities,  the Company shall give written notice to each Investor
and, thereupon,  shall be relieved of its obligation to register any Registrable
Securities in connection with such registration. The Company's obligations under
this Section 2(D) shall terminate on the date that the registration statement to
be  filed  in  accordance  with  Section  2(A)  is  declared  effective  by  the
Commission.

              (ii) If a  registration  pursuant to this Section 2(D)  involves a
Public Offering and the managing  underwriter  thereof advises the Company that,
in its view,  the  number of shares of Common  Stock  that the  Company  and the
Investors intend to include in such  registration  exceeds the largest number of
shares of Common Stock that can be sold without having an adverse effect on such
Public Offering (the "Maximum Offering Size"),  the Company will include in such
registration  only such number of shares of Common  Stock as does not exceed the
Maximum  Offering  Size,  and the number of shares in the Maximum  Offering Size
shall be allocated  among the Company,  the  Investors  and any other sellers of
Common Stock in such Public Offering  ("Third-Party  Sellers"),  first, pro rata
among the Investors until all the shares of Common Stock originally  proposed to
be offered for sale by the Investors have been allocated,  and second,  pro rata
among the Company and any Third-Party  Sellers, in each case on the basis of the
relative number of shares of Common Stock originally  proposed to be offered for
sale under such  registration  by each of the  Investors,  the  Company  and the
Third-Party  Sellers,  as the  case  may be.  If as a  result  of the  proration
provisions of this Section 2(D)(ii), any Investor is not entitled to include all
such  Registrable  Securities in such  registration,  such Investor may elect to
withdraw its request to include any Registrable Securities in such registration.
With  respect to  registrations  pursuant to this  Section  2(D),  the number of
securities required to satisfy any underwriters'  over-allotment option shall be
allocated  among the Company,  the Investors and any Third Party Seller pro rata
on the basis of the relative  number of  securities  offered for sale under such
registration  by each of the  Investors,  the  Company  and any such Third Party
Sellers before the exercise of such over-allotment option.

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         3. Obligations of the Company

         In connection with the registration of the Registrable Securities,  the
Company shall:

(A)  Promptly  (i)  prepare and file with the
Commission  such  amendments  (including   post-effective   amendments)  to  the
Registration  Statement and supplements to the Prospectus as may be necessary to
keep the Registration  Statement  continuously  effective and in compliance with
the  provisions of the  Securities  Act  applicable  thereto so as to permit the
Prospectus  forming  part  thereof to be current  and useable by  Investors  for
resales of the  Registrable  Securities  for a period of five (5) years from the
date on which the  Registration  Statement  is first  declared  effective by the
Commission  (the  "Effective  Time") or such shorter  period that will terminate
when all the Registrable  Securities covered by the Registration  Statement have
been sold pursuant thereto in accordance with the plan of distribution  provided
in the Prospectus,  transferred pursuant to Rule 144 under the Securities Act or
otherwise transferred in a manner that results in the delivery of new securities
not subject to transfer restrictions under the Securities Act (the "Registration
Period") and (ii) take all lawful action such that each of (A) the  Registration
Statement and any amendment thereto does not, when it becomes effective, contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, not misleading
and (B) the  Prospectus  forming  part of the  Registration  Statement,  and any
amendment or supplement  thereto,  does not at any time during the  Registration
Period  include  an  untrue  statement  of a  material  fact or omit to  state a
material fact required to be stated  therein or necessary to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading;

         (B) During the Registration  Period,  comply with the provisions of the
Securities Act with respect to the Registrable Securities of the Company covered
by the  Registration  Statement  until  such  time  as all of  such  Registrable
Securities  have been  disposed of in  accordance  with the intended  methods of
disposition by the Investors as set forth in the Prospectus  forming part of the
Registration Statement;

         (C) (i) Prior to the filing  with the  Commission  of any  Registration
Statement (including any amendments thereto) and the distribution or delivery of
any Prospectus  (including any  supplements  thereto),  provide (A) draft copies
thereof to the Investors and reflect in such  documents all such comments as the
Investors (and their counsel)  reasonably may propose and (B) to the Investors a
copy of the  accountant's  consent  letter to be included in the filing and (ii)
furnish to each  Investor  whose  Registrable  Securities  are  included  in the
Registration  Statement  and its legal counsel  identified  to the Company,  (A)
promptly  after the same is prepared  and publicly  distributed,  filed with the
Commission,  or received by the Company, one copy of the Registration Statement,
each Prospectus, and each amendment or supplement thereto and (B) such number of
copies of the Prospectus and all  amendments  and  supplements  thereto and such
other documents,  as such Investor may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such Investor;

         (D) (i) Register or qualify the Registrable  Securities  covered by the
Registration  Statement  under  such  securities  or  "blue  sky"  laws  of such
jurisdictions  as  the  Investors  who  hold  a   majority-in-interest   of  the
Registrable  Securities being offered reasonably request,  (ii) prepare and file
in such jurisdictions such amendments (including post-effective  amendments) and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof at all times during the Registration Period,
(iii) take all such other lawful  actions as may be  necessary to maintain  such
registrations and  qualifications in effect at all times during the Registration
Period and (iv) take all such  other  lawful  actions  reasonably  necessary  or
advisable to qualify the Registrable  Securities for sale in such jurisdictions;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith  or as a  condition  thereto  to (A)  qualify  to do  business  in any
jurisdiction  where it would not  otherwise  be required to qualify but for this
Section 3(D), (B) subject itself to general taxation in any such jurisdiction or
(C) file a general consent to service of process in any such jurisdiction;

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         (E) As  promptly as  practicable  after  becoming  aware of such event,
notify each Investor of the  occurrence  of any event,  as a result of which the
Prospectus included in the Registration  Statement,  as then in effect, includes
an  untrue  statement  of a  material  fact or omits to  state a  material  fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the  circumstances  under  which they were made,  not  misleading,  and
promptly  prepare an amendment to the  Registration  Statement and supplement to
the  Prospectus  to correct such untrue  statement  or  omission,  and deliver a
number of copies of such  supplement  and  amendment  to each  Investor  as such
Investor may reasonably request;

         (F) As  promptly as  practicable  after  becoming  aware of such event,
notify each  Investor who holds  Registrable  Securities  being sold (or, in the
event of an underwritten offering, the managing underwriters) of the issuance by
the Commission of any stop order or other suspension of the effectiveness of the
Registration  Statement at the earliest possible time and take all lawful action
to effect  the  withdrawal,  rescission  or  removal of such stop order or other
suspension;

         (G) Cause all the Registrable  Securities  covered by the  Registration
Statement  to be listed  on the  principal  national  securities  exchange,  and
included in an inter-dealer quotation system of a registered national securities
association, on or in which securities of the same class or series issued by the
Company are then listed or included;

         (H)  Maintain a  transfer  agent and  registrar,  which may be a single
entity, for the Registrable  Securities not later than the effective date of the
Registration Statement;

         (I) Cooperate with the Investors who hold Registrable  Securities being
offered to facilitate the timely  preparation and delivery of  certificates  for
the Registrable  Securities to be offered pursuant to the registration statement
and  enable  such  certificates  for the  Registrable  Securities  to be in such
denominations  or amounts,  as the case may be, as the Investors  reasonably may
request and  registered in such names as the Investor may request;  and,  within
three  (3)  business  days  after  a  registration   statement   which  includes
Registrable  Securities  is declared  effective by the  Commission,  deliver and
cause legal counsel selected by the Company to deliver to the transfer agent for
the  Registrable  Securities  (with copies to the  Investors  whose  Registrable
Securities  are  included  in  such   registration   statement)  an  appropriate
instruction and, to the extent necessary, an opinion of such counsel;

         (J) Take all such other lawful actions reasonably necessary to expedite
and facilitate the disposition by the Investors of their Registrable  Securities
in accordance  with the intended  methods  therefor  provided in the  Prospectus
which are customary under the circumstances;

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         (K)  Make  generally  available  to its  security  holders  as  soon as
practicable,  but in any event not later  than  three (3)  months  after (i) the
effective  date (as  defined in Rule  158(c)  under the  Securities  Act) of the
Registration  Statement  and  (ii)  the  effective  date of each  post-effective
amendment  to the  Registration  Statement,  as the  case  may be,  an  earnings
statement of the Company and its  subsidiaries  complying with Section 11 (a) of
the  Securities Act and the rules and  regulations of the Commission  thereunder
(including,  at the option of the  Company,  Rule  158);

         (L) In the  event of an  underwritten  offering,  promptly  include  or
incorporate  in a  Prospectus  supplement  or  post-effective  amendment  to the
Registration  Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such Prospectus  supplement or post-effective  amendment
as soon as  practicable  after it is  notified  of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment;

         (M) (i) Make  reasonably  available for  inspection  by Investors,  any
underwriter  participating  in any  disposition  pursuant  to  the  Registration
Statement,  and  any  attorney,  accountant  or  other  agent  retained  by such
Investors or any such  underwriter  all relevant  financial  and other  records,
pertinent   corporate   documents   and   properties  of  the  Company  and  its
subsidiaries,  and (ii) cause the Company's officers, directors and employees to
supply  all  information  reasonably  requested  by such  Investors  or any such
underwriter,  attorney,  accountant or agent in connection with the Registration
Statement, in each case, as is customary for similar due diligence examinations;
provided,  however,  that  all  records,  information  and  documents  that  are
designated  in  writing  by  the  Company,   in  good  faith,  as  confidential,
proprietary  or  containing  any material  nonpublic  information  shall be kept
confidential by such Investors and any such underwriter, attorney, accountant or
agent (pursuant to an appropriate  confidentiality  agreement in the case of any
such  holder or agent),  unless  such  disclosure  is made  pursuant to judicial
process in a court  proceeding  (after first  giving the Company an  opportunity
promptly  to seek a  protective  order  or  otherwise  limit  the  scope  of the
information  sought to be  disclosed)  or is required  by law, or such  records,
information or documents  become  available to the public generally or through a
third party not in violation of an accompanying  obligation of  confidentiality;
and  provided,  further,  that,  if the  foregoing  inspection  and  information
gathering would otherwise  disrupt the Company's  conduct of its business,  such
inspection and information  gathering shall, to the maximum extent possible,  be
coordinated on behalf of the Investors and the other parties entitled thereto by
one firm of counsel  designated  by and on behalf of the majority in interest of
Investors and other parties;

         (N)  In  connection   with  any   underwritten   offering,   make  such
representations   and  warranties  to  the  Investors   participating   in  such
underwritten  offering and to the managers,  in form, substance and scope as are
customarily  made by the  Company  to  underwriters  in  secondary  underwritten
offerings;

         (O) In connection with any  underwritten  offering,  obtain opinions of
counsel  to the  Company  (which  counsel  and  opinions  (in  form,  scope  and
substance)  shall be reasonably  satisfactory to the managers)  addressed to the
underwriters,  covering  such  matters as are  customarily  covered in  opinions
requested in secondary  underwritten offerings (it being agreed that the matters
to be covered by such opinions shall include, without limitation, as of the date
of the opinion and as of the  Effective  Time of the  Registration  Statement or
most recent  post-effective  amendment thereto,  as the case may be, the absence
from the  Registration  Statement  and the  Prospectus,  including any documents
incorporated by reference therein,  of an untrue statement of a material fact or
the omission of a material  fact  required to be stated  therein or necessary to
make the  statements  therein  (in the case of the  Prospectus,  in light of the
circumstances  under which they were made) not misleading,  subject to customary
limitations);

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         (P) In connection with any underwritten offering, obtain "cold comfort"
letters and updates  thereof  from the  independent  public  accountants  of the
Company (and, if  necessary,  from the  independent  public  accountants  of any
subsidiary  of the Company or of any business  acquired by the Company,  in each
case for which  financial  statements and financial data are, or are required to
be,  included in the  Registration  Statement),  addressed  to each  underwriter
participating  in such  underwritten  offering (if such underwriter has provided
such letter,  representations  or documentation,  if any, required for such cold
comfort  letter to be so addressed),  in customary form and covering  matters of
the type  customarily  covered  in "cold  comfort"  letters in  connection  with
secondary underwritten offerings;

         (Q)  In  connection  with  any  underwritten  offering,   deliver  such
documents and  certificates  as may be reasonably  required by the managers,  if
any, and

         (R) In the event that any  broker-dealer  registered under the Exchange
Act shall be an  "Affiliate"  (as  defined in Rule  2729(b)(1)  of the rules and
regulations of the National  Association of Securities Dealers,  Inc. (the "NASD
Rules") (or any successor  provision thereto)) of the Company or has a "conflict
of interest" (as defined in Rule  2720(b)(7) of the NASD Rules (or any successor
provision  thereto)) and such broker-dealer  shall underwrite,  participate as a
member  of  an  underwriting  syndicate  or  selling  group  or  assist  in  the
distribution  of  any  Registrable   Securities   covered  by  the  Registration
Statement,  whether  as a  holder  of  such  Registrable  Securities  or  as  an
underwriter,  a  placement  or sales  agent or a broker  or  dealer  in  respect
thereof, or otherwise,  the Company shall assist such broker-dealer in complying
with the requirements of the NASD Rules, including,  without limitation,  by (A)
engaging a "qualified  independent  underwriter" (as defined in Rule 2720(b)(15)
of the NASD Rules (or any successor  provision  thereto)) to  participate in the
preparation  of  the  Registration   Statement   relating  to  such  Registrable
Securities,  to exercise usual standards of due diligence in respect thereof and
to recommend  the public  offering  price of such  Registrable  Securities,  (B)
indemnifying  such  qualified  independent  underwriter  to  the  extent  of the
indemnification  of underwriters  provided in Section 6 hereof and (C) providing
such  information  to such  broker-dealer  as may be  required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

         4. Obligations of the Investors

              In connection with the registration of the Registrable Securities,
the Investors shall have the following obligations:

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              (A) It shall be a condition  precedent to the  obligations  of the
Company to complete the registration  pursuant to this Agreement with respect to
the  Registrable  Securities of a particular  Investor that such Investor  shall
furnish to the  Company  such  information  regarding  itself,  the  Registrable
Securities  held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such  Registrable  Securities  and shall execute such documents in connection
with such registration as the Company may reasonably request;

         (B) Each  Investor  by its  acceptance  of the  Registrable  Securities
agrees to cooperate  with the Company in  connection  with the  preparation  and
filing  of the  Registration  Statement  hereunder,  unless  such  Investor  has
notified  the  Company  in  writing  of  its  election  to  exclude  all  of its
Registrable Securities from the Registration Statement; and

         (C) Each  Investor  agrees  that,  upon  receipt of any notice from the
Company of the  occurrence of any event of the kind described in Section 3(E) or
3(F), it shall immediately discontinue its disposition of Registrable Securities
pursuant to the  Registration  Statement  covering such  Registrable  Securities
until  such  Investor's  receipt of the  copies of the  supplemented  or amended
Prospectus contemplated by Section 3(E) and, if so directed by the Company, such
Investor shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a  certificate  of  destruction)  all copies in such
Investor's  possession,  of the Prospectus covering such Registrable  Securities
current at the time of receipt of such notice.

         5. Expenses of Registration

         All  expenses,  other  than  underwriting  discounts  and  commissions,
incurred in connection with registrations, filings or qualifications pursuant to
Section 3, but including,  without limitation,  all registration,  listing,  and
qualifications fees, printing and engraving fees,  accounting fees, and the fees
and  disbursements  of counsel for the Company,  and the reasonable  fees of one
firm of counsel to the  holders of a majority  in  interest  of the  Registrable
Securities shall be borne by the Company.

         6. Indemnification and Contribution

         (A)  Indemnification  by the Company.  The Company shall  indemnify and
hold harmless each Investor and each underwriter,  if any, which facilitates the
disposition of Registrable Securities, and each of their respective officers and
directors and each person who controls such Investor or  underwriter  within the
meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange Act
(each such person being  sometimes  hereinafter  referred to as an  "Indemnified
Person") from and against any losses, claims,  damages or liabilities,  joint or
several,  to  which  such  Indemnified  Person  may  become  subject  under  the
Securities  Act or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof)  arise out of or are based upon an
untrue statement of a material fact contained in any  Registration  Statement or
an omission or alleged  omission to state therein a material fact required to be
stated therein or necessary to make the statements therein,  not misleading,  or
arise out of or are based upon an untrue  statement of a material fact contained
in any Prospectus or an omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements  therein,
in the light of the  circumstances  under which they were made, not  misleading;
and the Company  hereby  agrees to  reimburse  such  Indemnified  Person for all
reasonable  legal  and  other  expenses  incurred  by  them in  connection  with
investigating  or defending  any such action or claim as and when such  expenses
are  incurred;  provided,  however,  that the Company shall not be liable to any
such  Indemnified  Person in any such  case to the  extent  that any such  loss,
claim,  damage  or  liability  arises  out of or is  based  upon  (i) an  untrue
statement  or  alleged  untrue  statement  made in, or an  omission  or  alleged
omission from, such Registration Statement or Prospectus in reliance upon and in
conformity with written information furnished to the Company by such Indemnified
Person  expressly  for use therein or (ii) in the case of the  occurrence  of an
event of the type specified in Section 3(E), the use by the  Indemnified  Person
of an outdated or  defective  Prospectus  after the Company has provided to such
Indemnified  Person an updated  Prospectus  correcting  the untrue  statement or
alleged  untrue  statement or omission or alleged  omission  giving rise to such
loss, claim, damage or liability.

                                       9
<PAGE>

         (B) Notice of Claims,  etc.  Promptly  after receipt by a party seeking
indemnification  pursuant to this Section 6 (an "Indemnified  Party") of written
notice of any  investigation,  claim,  proceeding  or other action in respect of
which  indemnification is being sought (each, a "Claim"),  the Indemnified Party
promptly  shall notify the party against whom  indemnification  pursuant to this
Section  6 is  being  sought  (the  "Indemnifying  Party")  of the  commencement
thereof;  but the omission to so notify the Indemnifying Party shall not relieve
it from any  liability  that it  otherwise  may have to the  Indemnified  Party,
except to the extent that the  Indemnifying  Party is materially  prejudiced and
forfeits  substantive  rights  and  defenses  by  reason  of  such  failure.  In
connection  with any  Claim as to which  both  the  Indemnifying  Party  and the
Indemnified  Party are  parties,  the  Indemnifying  Party  shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying  Party, the Indemnified  Party shall have the right to
employ  separate  legal counsel and to participate in the defense of such Claim,
and the Indemnifying Party shall bear the reasonable fees,  out-of-pocket  costs
and expenses of such  separate  legal counsel to the  Indemnified  Party if (and
only if): (x) the  Indemnifying  Party shall have agreed to pay such fees, costs
and  expenses,  (y) the  Indemnified  Party  and the  Indemnifying  Party  shall
reasonably have concluded that  representation  of the Indemnified  Party by the
Indemnifying  Party by the same legal  counsel would not be  appropriate  due to
actual or, as reasonably  determined by legal counsel to the Indemnified  Party,
potentially  differing  interests  between  such  parties in the  conduct of the
defense  of such  Claim,  or if there  may be legal  defenses  available  to the
Indemnified  Party that are in addition to or disparate from those  available to
the Indemnifying Party or (z) the Indemnifying Party shall have failed to employ
legal  counsel  reasonably  satisfactory  to  the  Indemnified  Party  within  a
reasonable period of time after notice of the commencement of such Claim. If the
Indemnified Party employs separate legal counsel in circumstances  other than as
described in clauses (x), (y) or (z) above, the fees, costs and expenses of such
legal counsel shall be borne  exclusively by the  Indemnified  Party.  Except as
provided above, the  Indemnifying  Party shall not, in connection with any Claim
in the same  jurisdiction,  be liable for the fees and expenses of more than one
firm of counsel for the  Indemnified  Party  (together  with  appropriate  local
counsel).  The Indemnified Party shall not, without the prior written consent of
the  Indemnifying  Party (which  consent  shall not  unreasonably  be withheld),
settle or compromise any Claim or consent to the entry of any judgment that does
not  include  an  unconditional  release  of the  Indemnifying  Party  from  all
liabilities with respect to such Claim or judgment.

         (C) Contribution. If the indemnification provided for in this Section 6
is unavailable to or insufficient  to hold harmless an Indemnified  Person under
subsection  (A) above in respect of any losses,  claims,  damages or liabilities
(or actions in respect  thereof)  referred to  therein,  then each  Indemnifying
Party shall contribute to the amount paid or payable by such  Indemnified  Party
as a result of such  losses,  claims,  damages  or  liabilities  (or  actions in
respect  thereof) in such  proportion as is  appropriate to reflect the relative
fault of the Indemnifying Party and the Indemnified Party in connection with the
statements  or  omissions  which  resulted in such  losses,  claims,  damages or
liabilities  (or  actions in  respect  thereof),  as well as any other  relevant
equitable  considerations.  The relative  fault of such  Indemnifying  Party and
Indemnified  Party shall be  determined  by reference  to,  among other  things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged  omission to state a material  fact relates to  information  supplied by

                                       10
<PAGE>

such Indemnifying  Party or by such Indemnified Party, and the parties' relative
intent,  knowledge,  access to information and opportunity to correct or prevent
such  statement or omission.  The parties hereto agree that it would not be just
and equitable if  contribution  pursuant to this Section 6(D) were determined by
pro rata allocation (even if the Investors or any  underwriters  were treated as
one entity for such purpose) or by any other method of allocation which does not
take account of the equitable  considerations  referred to in this Section 6(D).
The amount  paid or payable by an  Indemnified  Party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be  deemed  to  include  any legal or other  fees or  expenses  reasonably
incurred by such Indemnified Party in connection with investigating or defending
any such  action or  claim.  No person  guilty of  fraudulent  misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution   from  any  person   who  was  not   guilty  of  such   fraudulent
misrepresentation. The obligations of the Investors and any underwriters in this
Section 6(D) to contribute  shall be several in proportion to the  percentage of
Registrable  Securities registered or underwritten,  as the case may be, by them
and not joint.

         (D)  Notwithstanding any other provision of this Section 6, in no event
shall any (i)  Investor be required to  undertake  liability to any person under
this Section 6 for any amounts in excess of the dollar amount of the proceeds to
be  received  by such  Investor  from  the sale of such  Investor's  Registrable
Securities  (after  deducting  any fees,  discounts and  commissions  applicable
thereto)  pursuant to any  Registration  Statement under which such  Registrable
Securities are to be registered under the Securities Act and (ii) underwriter be
required  to  undertake  liability  to any Person  hereunder  for any amounts in
excess of the aggregate  discount,  commission or other compensation  payable to
such underwriter with respect to the Registrable  Securities  underwritten by it
and distributed pursuant to the Registration Statement.

         (E) The  obligations  of the Company  under this  Section 6 shall be in
addition  to  any  liability  which  the  Company  may  otherwise  have  to  any
Indemnified  Person and the  obligations  of any  Indemnified  Person under this
Section 6 shall be in addition to any liability  which such  Indemnified  Person
may otherwise have to the Company.  The remedies  provided in this Section 6 are
not exclusive and shall not limit any rights or remedies  which may otherwise be
available to an indemnified party at law or in equity.

         7. Rule 144

         With a view to making  available to the  Investors the benefits of Rule
144 under the  Securities  Act or any other  similar rule or  regulation  of the
Commission  that may at any time permit the Investors to sell  securities of the
Company to the public without  registration  ("Rule 144"), the Company agrees to
use its best efforts to:

         (1) comply with the provisions of paragraph (c) (1) of Rule 144 and

         (2) file with the  Commission  in a timely manner all reports and other
documents  required to be filed by the  Company  pursuant to Section 13 or 15(d)
under the  Exchange  Act;  and,  if at any time it is not  required to file such
reports but in the past had been required to or did file such reports,  it will,
upon the request of any Investor,  make available other  information as required
by, and so long as  necessary  to permit  sales of, its  Registrable  Securities
pursuant to Rule 144.

                                       11
<PAGE>

         8. Assignment

         The rights to have the Company register Registrable Securities pursuant
to this  Agreement  shall be  automatically  assigned  by the  Investors  to any
permitted  transferee of all or any portion of such  Registrable  Securities (or
all or any  portion  of the  Debenture  or  Warrant  of  the  Company  which  is
convertible  into such  securities)  only if (a) the Investor  agrees in writing
with the  transferee  or  assignee  to assign  such  rights,  and a copy of such
agreement  is  furnished  to the  Company  within a  reasonable  time after such
assignment,  (b) the Company is, within a reasonable time after such transfer or
assignment,  furnished  with written  notice of (i) the name and address of such
transferee  or  assignee  and (ii) the  securities  with  respect  to which such
registration rights are being transferred or assigned, (c) immediately following
such transfer or  assignment,  the  securities so transferred or assigned to the
transferee or assignee constitute Restricted Securities and (d) at or before the
time the Company received the written notice  contemplated by clause (b) of this
sentence  the  transferee  or assignee  agrees in writing with the Company to be
bound by all of the provisions contained herein.

         9. Amendment and Waiver

         Any  provision  of this  Agreement  may be amended  and the  observance
thereof may be waived (either  generally or in a particular  instance and either
retroactively  or  prospectively),  only with the written consent of the Company
and Investors who hold a majority-in-interest of the Registrable Securities. Any
amendment or waiver  effected in accordance with this Section 9 shall be binding
upon each Investor and the Company.

         10. Changes in Common Stock

         If, and as often as,  there are any changes in the Common  Stock by way
of stock split, stock dividend,  reverse split, combination or reclassification,
or through merger, consolidation,  reorganization or recapitalization, or by any
other means,  appropriate  adjustment shall be made in the provisions hereof, as
may be required, so that the rights and privileges granted hereby shall continue
with respect to the Common Stock as so changed.

         11. Miscellaneous

         (A) A person  or entity  shall be deemed to be a holder of  Registrable
Securities  whenever  such  person or entity  owns of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or more  persons  or  entities  with  respect  to the  same
Registrable  Securities,  the Company shall act upon the basis of  instructions,
notice  or  election  received  from the  registered  owner of such  Registrable
Securities.

         (B) If, after the date hereof and prior to the Commission declaring the
Registration  Statement to be filed pursuant to Section 2(a) effective under the
Securities  Act, the Company grants to any Person any  registration  rights with
respect to any Company  securities which are more favorable to such other Person
than those provided in this  Agreement,  then the Company  forthwith shall grant
(by means of an amendment to this Agreement or otherwise) identical registration
rights to all Investors hereunder.

                                       12
<PAGE>

         (C) Except as may be  otherwise  provided  herein,  any notice or other
communication  or delivery  required or permitted  hereunder shall be in writing
and  shall  be  delivered  personally,  or sent by  telecopier  machine  or by a
nationally  recognized overnight courier service, and shall be deemed given when
so delivered  personally,  or by telecopier machine or overnight courier service
as follows:

                                (1) if to the Company, to:

                                    Radix Marine, Inc.
                                    9119 Ridgetop Blvd., Suite 260
                                    Silverdale, WA 98383
                                    Telephone:       360-692-6446
                                    Facsimile:

                                (2) if to the Investor, to:

                                    La Jolla Cove Investors, Inc.
                                    7817 Herschel Avenue, Suite 200
                                    La Jolla, California 92037
                                    Telephone:       858-551-8789
                                    Facsimile:       858-551-8779

         (3) if to any other  Investor,  at such address as such Investor  shall
have provided in writing to the Company.

The  Company,  the Initial  Investor or any  Investor  may change the  foregoing
address by notice given pursuant to this Section 11(C).

         (D)  Failure of any party to  exercise  any right or remedy  under this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

         (E) This Agreement  shall be governed by and  interpreted in accordance
with the laws of the State of  California.  Each of the parties  consents to the
jurisdiction  of the federal  courts whose  districts  encompass any part of the
City of San Diego or the state courts of the State of California  sitting in the
City of San Diego in connection  with any dispute  arising under this  Agreement
and hereby  waives,  to the  maximum  extent  permitted  by law,  any  objection
including any objection  based on forum non  conveniens,  to the bringing of any
such proceeding in such jurisdictions.

         (F) Should  any party  hereto  employ an  attorney  for the  purpose of
enforcing or construing this Agreement, or any judgment based on this Agreement,
in  any  legal  proceeding   whatsoever,   including   insolvency,   bankruptcy,
arbitration,  declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all  reasonable  attorneys'  fees and all  reasonable  costs,  including but not
limited to service of process,  filing  fees,  court and court  reporter  costs,
investigative  costs,  expert witness fees,  and the cost of any bonds,  whether
taxable or not, and that such reimbursement shall be included in any judgment or
final order issued in that  proceeding.  The "prevailing  party" means the party
determined by the court to most nearly  prevail and not  necessarily  the one in
whose favor a judgment is rendered.

                                       13
<PAGE>

         (G) The remedies  provided in this  Agreement  are  cumulative  and not
exclusive of any remedies provided by law. If any term,  provision,  covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants  and  restrictions  set forth  herein  shall  remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their best efforts to find and employ an  alternative  means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

         (H) The Company shall not enter into any agreement  with respect to its
securities  that is  inconsistent  with the  rights  granted  to the  holders of
Registrable  Securities  in this  Agreement  or  otherwise  conflicts  with  the
provisions  hereof.  The  Company  is not  currently  a party  to any  agreement
granting any  registration  rights with respect to any of its  securities to any
person which  conflicts  with the Company's  obligations  hereunder or gives any
other party the right to include any  securities in any  Registration  Statement
filed  pursuant  hereto,  except  for such  rights  and  conflicts  as have been
irrevocably  waived.  Without limiting the generality of the foregoing,  without
the written  consent of the holders of a majority in interest of the Registrable
Securities, the Company shall not grant to any person the right to request it to
register any of its  securities  under the  Securities  Act unless the rights so
granted  are  subject  in all  respect  to the prior  rights of the  holders  of
Registrable  Securities  set forth herein,  and are not otherwise in conflict or
inconsistent  with the provisions of this  Agreement.  The  restrictions  on the
Company's  rights  to grant  registration  rights  under  this  paragraph  shall
terminate on the date the Registration Statement to be filed pursuant to Section
2(A) is declared effective by the Commission.

         (I) This Agreement,  the Securities Purchase  Agreement,  the Debenture
and the Conversion Warrants  Agreement,  of even date herewith among the Company
and the  Initial  Investor  constitute  the entire  agreement  among the parties
hereto with respect to the subject  matter  hereof.  There are no  restrictions,
promises, warranties or undertakings,  other than those set forth or referred to
herein.  These Agreements  supersede all prior agreements and undertakings among
the parties hereto with respect to the subject matter hereof.

         (J) Subject to the  requirements  of Section 8 hereof,  this  Agreement
shall inure to the benefit of and be binding upon the  successors and assigns of
each of the parties hereto.

         (K) All pronouns and any  variations  thereof  refer to the  masculine,
feminine or neuter, singular or plural, as the context may require.

         (L) The headings in this  Agreement  are for  convenience  of reference
only and shall not limit or otherwise affect the meaning thereof.

                                       14
<PAGE>

         (M) The Company acknowledges that any failure by the Company to perform
its obligations under Section 3, or any delay in such performance,  could result
in direct  damages to the Investors and the Company  agrees that, in addition to
any other liability the Company may have by reason of any such failure or delay,
the Company  shall be liable for all direct  damages  caused by such  failure or
delay.

         (N) This Agreement may be executed in counterparts, each of which shall
be  deemed  an  original  but both of which  shall  constitute  one and the same
agreement.  A facsimile transmission of this signed Agreement shall be legal and
binding on the parties hereto.

         IN WITNESS WHEREOF,  the parties hereto have duly caused this Agreement
to be executed and delivered on the date first above written.

                                     Radix Marine, Inc.

                                     By:
                                         -----------------------------------
                                           Name:
                                           Title:

                                     La Jolla Cove Investors, Inc.

                                     By:
                                         -----------------------------------
                                           Name:
                                           Title:

                                       15EXHIBIT 10.1

                                    AGREEMENT
                                     between
                       UNMANNED SURFACE VEHICLE CONSORTIUM
                                       and
               NAVAL UNDERSEA WARFARE CENTER, DIVISION NEWPORT RI
                                   concerning
     RESEARCH AND DEVELOPMENT OF UNDERSEA WARFARE COMBAT VEHICLE PROTOTYPES

Agreement No. :                 N66604-01-9-126A
Requisition No.:                N66604-2155-02K5

Total Estimated Value of this Agreement:        $22,500,000.00
Funds Obligated, Government, This Action:       NONE
Total Funds Obligated, Government:              NONE
Authorities:   10 U.S.C. 2371 & Section 845 of Public Law 103-160

This Agreement is entered into between the United States of America, hereinafter
referred  to as "the  Government,"  represented  by the Naval  Undersea  Warfare
Center,   Division  Newport  (NUWCDIVNPT)  and  the  "Unmanned  Surface  Vehicle
Consortium," pursuant to and under U.S. Federal law.

Integrated Maritime Platforms           For the Naval Undersea Warfare Center
International, Inc. as a member         Division, Newport (NUWCDIVNPT)
of the Consortium

----------------------------------      ---------------------------------------
(Signature)             (Date)          (Signature)                     (Date)
Kathleen Bright                         Brett P. Griffin
President                               Agreement Officer

<PAGE>

                                TABLE OF CONTENTS

ARTICLES                                                        PAGE

ARTICLE I Scope of the Agreement .......................          4
ARTICLE II Term & Termination ..........................          6
ARTICLE III Management .................................          7
ARTICLE IV Administration ..............................          8
ARTICLE V Fiscal Management & Control ..................          9
ARTICLE VI Disputes ....................................         11
ARTICLE VII Patents ....................................         12
ARTICLE VIII Intellectual Property (Other Than Patents).         15
ARTICLE IX Subcontracts ................................         16
ARTICLE X Property .....................................         16
ARTICLE XI Civil Rights Act ............................         18
ARTICLE XII Security ...................................         18
ARTICLE XIII Disclaimers ...............................         18
ARTICLE XIV Warranty ...................................         18
ARTICLE XV Publicity & Publication .....................         18
ARTICLE XVI  Order of Precedence .......................         19
ARTICLE XVII Waiver of Rights ..........................         19
ARTICLE XVIII Severability .............................         19
ARTICLE XIX Entire Agreement, Modification and Execution         19

                                   ATTACHMENTS

               ATTACHMENT (1)Sample Task Description Document
               ATTACHMENT (2)Report Requirements
               ATTACHMENT (3)Security Specification
               ATTACHMENT (4)  Articles of Collaboration
               ATTACHMENT (5)  Participative Management Agreement

<PAGE>

1. This  Agreement is entered into between the United States  Government  acting
through the Naval  Undersea  Warfare  Center,  Division  Newport  (NUWCDIVNPT  )
hereinafter called "NUWCDIVNPT" and/or "the Government" and the Unmanned Surface
Vehicle (USV) Consortium  (referred to as the  "Consortium").  The Consortium is
comprised of Northrop Grumman Corporation,  a corporation organized and existing
under the laws of the State of Delaware (hereinafter called "Northrop Grumman"),
Raytheon  Company,  a corporation  organized and existing  under the laws of the
State of Delaware,  (hereinafter  called  "Raytheon") and,  Integrated  Maritime
Platforms  (formerly  TEAM ONE USA Inc.),  a corporation  organized and existing
under  the  laws of the  State of  Washington  (hereinafter  called  "Integrated
Maritime  Platforms")  herein  individually   referred  to  as  the  "Consortium
Members".

2. Collectively  NUWCDIVNPT and the Unmanned Surface Vehicle  Consortium will be
referred to as the "Team". The Team consists of the four aforementioned  members
as  depicted  in Figure 1.  This  Team will be bound by this  Other  Transaction
Agreement.

3. Hereinafter,  both NUWCDIVNPT and the Consortium together will be referred to
as the "Parties' and individually as "the Party".

WHEREAS  the members of the Team have  complementary  research  and  development
interests, and

WHEREAS  the Team  wishes  to apply  its  talents  and  experiences  to bring to
application and use by the United States  Department of Defense (D.o.D.) certain
maritime  Undersea  Warfare Combat  Vehicles  (UWCVs) as deployable,  off-board,
organic Undersea Warfare (USW) systems and to explore other related applications
for USVs, and

WHEREAS the UWCV applications are aimed at the United States Navy's requirements
for organic Undersea Warfare missions, and

WHEREAS the  Agreement  anticipates  receiving  funding  from the United  States
Government D.o.D. to perform additional  development  efforts in accordance with
the Purpose of the Agreement,

NOW THEREFORE it is agreed that the  Consortium  does hereby enter into an Other
Transaction  Agreement  for research and  development  of Prototype  UWCV's with
NUWCDIVNPT (hereinafter called the Agreement) as authorized under Section 845 of
Public Law 103-160 (National Defense  Authorization Act for fiscal year 1994, as
amended).

<PAGE>

ARTICLE I:  SCOPE OF THE AGREEMENT

A.  Purpose

1. The Purpose of this Agreement is to develop a military  capability to conduct
multiple undersea warfare missions using USVs with varying levels of manning and
autonomy through a multi-phase program named the Spartan Undersea Warfare Combat
Vehicle Program  (hereinafter  referred to as "the UWCV Program") 2. The Program
for application of UWCVs has these key aspects:

The  first  aspect  is  mission   modularity:   the  USV  platform  shall  be  a
reconfigurable maritime surface craft that can execute individually selective or
multiple  naval warfare  missions.  Through past  associations,  the  Consortium
Members and the Government  have performed  studies and analyses which show that
existing  surface craft are capable of carrying and deploying  sensor and weapon
payloads  that are  currently  in  development  or  operational  on aircraft and
undersea vehicles.

The second aspect is unmanned  operations:  the Consortium members have shown in
past  demonstrations  and products  that  existing  manned  surface craft can be
easily made to operate as unmanned vehicles using  non-developmental  technology
already  fielded for use on unmanned  aerial  vehicles,  other unmanned  surface
vehicles,  and unmanned undersea vehicles.  The USV thereby brings to the United
States naval fleet, a capability to perform missions  without putting  personnel
in harm's way. In  addition,  the craft can be operated as a manned  vehicle for
traditional missions such as troop transport.

The third aspect is organic deployability: the unmanned surface vehicle shall be
launched  and  recovered  from naval fleet  mother  vessels.  The USV shall have
minimal impact on its mother naval surface combatant or amphibious  warfare host
ship.   The  USV  should,   to  the  maximum  extent   possible,   use  existing
infrastructure,  i.e. it should be stored and launched  with  equipment  already
resident on the host ship; it should be maintained by personnel already assigned
to the mother ship.

The fourth  aspect is network  centric  warfare:  the USV shall be utilized as a
complementary  node in network centric warfare.  The USV is one of several nodes
(e.g. UUVs, UAVs,  naval warfare ships,  aircraft,  and fixed sites) that can be
linked in a network to provide the battle force  commander an extended  tactical
picture of the environment.  Therefore,  in addition to carrying various sensors
and weapons  payloads,  the USV carries a core  surveillance and  communications
suite capable of monitoring  the tactical  environment  and  communicating  with
other nodes or command platforms.

The fifth  aspect is the  assembly of  affordable  demonstration  USVs that will
allow certain high priority naval warfare  missions to be demonstrated in a four
year period  within  this UWCV  Program.  Specifically,  the  off-board  organic
missions of anti-submarine warfare (ASW) and in-stride mine avoidance (ISMA) are
high priority mission demonstrations for this UWCV Program.

<PAGE>

B.  Specific Performance Requirements

1.  The  Consortium  and  NUWCDIVNPT  shall  be  governed  by the  terms of this
Agreement.  Each member of the Team shall be  responsible  for its own workshare
under the UWCV Program and individual Phases which collectively make up the UWCV
Program.  Figure 2 represents this UWCV Program  structure.  The UWCV Program is
envisioned to cover  multiple  Phases,  each Phase  demonstrating  an increasing
capability  applied to a common  core USV.  Work under  this  Agreement  will be
initiated by the receipt of a funding document from a sponsor requesting work be
performed in a specific area of the UWCV Program.  The funding  document will be
accompanied  by a Task  Description  Document  (TDD)  which  will  provide  work
specifications,  the period of performance.  and budgetary data. A sample TDD is
attached to this  Agreement  as  Attachment  (1).  As the UWCV  Program is multi
phased,  over the term of the  Agreement  additional  development  phases may be
added,  and additional  TDDs  developed as a result.  The Team shall perform the
research  and  development  prescribed  in the  TDD(s),  and provide all reports
required by Attachment  (2),  Report  Requirements.  The "Final Report" shall be
provided  to the  Government  upon  the  completion  of this  Agreement,  or its
termination, whichever event occurs first.

2.  The  specific  items  deliverable  to  NUWCDIVNPT  will be  defined  in each
individual TDD.

3.  During  the  term of the  Agreement,  the  Government  and  the  Consortium,
collectively,  and the Consortium  Members,  individually,  agree to make a good
faith effort to accomplish the best possible research and development results in
a  spirit  of  cooperation  and  open  communication.  The  Government  and  the
Consortium will enter into a separate  Participative  Management  Agreement,  to
establish a mutually acceptable framework for achieving these goals.

C.  Authorities

1. This Agreement is an "Other Transaction"  pursuant to 10 U.S.C. ss. 2371, and
Section  845  of  Public  Law  103-160,  as  amended.  This  Agreement  is not a
procurement  contract,  or  grant,  cooperative  agreement,  or  other  type  of
agreement for the purpose of the Federal Acquisition Regulation (FAR) at Subpart
31.205-18.  The FAR and the Department of Defense FAR  Supplement  (DFARS) apply
only as specifically  referenced herein. Further, this Agreement is not intended
to  create,  nor  shall it be  construed  as, by  implication  or  otherwise,  a
corporation, partnership or other business organization.

D. Workshare Liability

1. The Parties agree that the Consortium,  and its individual Members, are bound
only to use  reasonable  good  faith  efforts  in  achieving  the  goals of this
Agreement.  The  Government  acknowledges  and agrees  that each party  shall be
liable only for its own  workshare  under the UWCV Program.  Consortium  Members
shall not be jointly  and  severally  liable for the  actions,  failures to act,
breaches of this  Agreement,  torts or any other  liabilities  whatsoever on the
part of another Consortium  Member.  Each Consortium Member shall be responsible
only for that effort  assigned by the Program  Management  Committee  (PMC),  as
defined in Article III A.4, and agreed to by the Consortium Member in accordance
with the  individual  Statement of Work as and any liability  arising out of the
members acts or omissions in connection with its respective assignment.

<PAGE>

2. The Government and the Consortium further agree that this Consortium does not
constitute a partnership (for tax or legal purposes) or a joint venture and that
none of the  Consortium  Members is  authorized to act as an agent for any other
except as expressly authorized in accordance with the Articles of Collaboration.
Each  Consortium  Member shall be responsible for payment of any tax which it is
required to pay under applicable federal, state or local statutes or regulations
resulting  from  its  performance  under  this  Agreement  or any  agreement  or
agreements  contemplated by or resulting from this Agreement.  As such,  nothing
contained in this  Agreement  shall be construed as providing for the sharing of
profits or losses arising out of the efforts of the Parties hereunder.

3. All employees of each  Consortium  Member to this Agreement  shall remain the
employees of such Party for all  purposes.  and each Party shall be  responsible
for the payment of the wages,  salaries  and benefits of its  employees  and all
payroll taxes, contributions,  travel expenses and other payments required to be
made with respect thereto.

ARTICLE II:  TERM & TERMINATION

A. Term

1.  This  Agreement  commences  on the date of the  last  signature  hereon  and
terminates  5 years  from that  date.  If all funds for a  particular  phase are
consumed prior to the end of such phase, the Team and each individual Consortium
Member has no obligation to continue  performance under that phase and may elect
to cease said performance at that point.

B. Termination

1. The  Consortium or the  Government  may terminate  this Agreement by a 30 day
advance written notice to the other Party,  provided that such written notice is
preceded by  consultation  between the  Parties.  Additionally,  the  Consortium
Members reserves the right to terminate their  participation in any phase of the
Agreement  in the event that an  Organizational  Conflict of Interest  situation
arises with a thirty day written notice.

2. Unless disposition  instructions are set-forth herein, the Government and the
Consortium  will negotiate in good faith a reasonable  and timely  adjustment of
all outstanding  issues between the Parties as a consequence of termination such
as, but not limited to,  payment for work  completed  including a  proportionate
amount of fee, the cost of settling and paying termination  settlement proposals
under terminated  subcontracts and the reasonable cost of settlement of the work
terminated.  The  failure of the  Parties to achieve  such  adjustment  shall be
resolved in accordance with Article VI, Disputes.

<PAGE>

3. In the event this Other Transaction is terminated, obligations of the parties
regarding the safeguarding  and handling of and rights in Intellectual  Property
and Proprietary Information shall survive the termination of the UWCV Program.

ARTICLE III:  MANAGEMENT

A. Management Responsibilities

1.  Figures 1 and 2 herein  describe the  relationships  between the Parties and
among  the  three  agreements  integral  to the UWCV  Program:  (1)  this  Other
Transaction  Agreement (OTA), (2) Articles of Collaboration  (AC) (Attachment 4)
and (3) a Participative Management Agreement (PMA) (Attachment 5).

2.  This  OTA  is an  agreement  between  NUWC  and  the  Consortium.  This  OTA
establishes  NUWC  Code  31,  the  Surface  Undersea  Warfare  Department,  as a
Technical Performance Member of the Spartan UWCV Team (the "Team").

3. The  Articles  of  Collaboration  for the  Industry  Consortium  establish  a
Consortium  Management  Committee for the purposes of directing  the  Consortium
(Refer  to  Fig  1).  The  AC  defines  the  decision-making  procedures  of the
Consortium Management  Committee.  The Consortium shall function pursuant to its
AC,  which  Articles  are in the  possession  of the Parties to this  Agreement.
Changes to the AC are the  prerogative of the Consortium.  The Consortium  shall
notify the AO prior to implementing such changes. Any changes in the AC requires
that requires a corresponding  change in the OTA,  including  expressions of the
intent of this OTA,  or changes  that  affect  the UWCV  Program,  requires  the
advance  approval of the Government.  The revised AC shall be incorporated  into
the Agreement through a modification to the Agreement.

4. The  Participative  Management  Agreement  establishes  a Program  Management
Committee  (PMC)  for the  purposes  of  managing,  controlling,  and  assessing
performance  of the  Spartan  UWCV Team  (Refer to Fig 1). The PMA  defines  the
decision-making  procedures of the UWCV Team.  The PMC defines  phases,  assigns
effort to the Technical  Performance Members and seeks customers for funding for
multiple  Phases of the UWCV  Program  (Refer  to Fig 2).  For each  Phase,  the
participating  members  produce a Phase  Management  Plan that describes how the
participating  members will carry out their  respective  workshares.  Workshares
will be derived  from  Technical  Description  Documents  (TDDs),  which will be
incorporated  into  this OTA when  each  order is  placed.  The TDDs set out the
customer's  requirements and desired deliverables.  The Phase Management Plan(s)
will describe the relationship of TDDs to Work Breakdown  Structure(s) (WBS) and
Statements of Work (SOW) for each Technical Performance Member.

5.  NUWCDIVNPT  Code 31  shall,  as a  consequence  of  collaborating  with  the
Consortium in the performance of research and development  under this Agreement,
monitor performance under this Agreement for the Government.

ARTICLE IV:  ADMINISTRATION

<PAGE>

The  following  personnel  of the  Parties  shall serve as points of contact for
their  respective  areas of  responsibility  in the execution of the  Agreement.
These  individuals may be changed by their respective Party upon notification to
the other Parties

For NUWCDIVNPT:

                              Technical and Programmatic Matters:
                              Mr. Alan L. Goodman, NUWCDIVNPT, Code 31
                              Spartan UWCV Program Manager
                              Phone:  (401) 832- 8674
                              E-mail: goodmanal@npt.nuwc.navy.mil

                              Contractual & Administrative Matters:
                              Mr. Brett Griffin, Agreements Officer
                              NUWCDIVNPT Code 5912
                              Phone: (401) 832-2150
                              E-mail: griffinbp@npt.nuwc.navy.mil

For the Consortium:

                              Technical and Programmatic Matters:
                              Michael Armenia, Program Manager
                              Phone:  (401) 842-2079, Fax: (401) 842-5229
                              E-mail: Michael_Armenia @res.raytheon.com

                              Contractual & Administrative Matters:

                              Norbert J. Rattay, Contract Administrator

                              Phone:  (401) 842-3997, Fax: (401) 842-5229
                              E-mail: Norbert_J_Rattay@res.raytheon.com

For the Administrative Agreements Officer (AAO a.k.a. ACO or AGO):

                           Defense Contract Management Command, Syracuse, GSO
                           Philip C. Goettel , Administrative Agreements Officer
                           Phone: (315) 448-7890, Fax: (315) 448-7921
                           E-mail: BSA6027@DCRB.DLA.MIL

For the Payment Office:

                              DFAS Columbus Center, DFAS-CO/Bunker Hill Division
                              P.O. Box 182077 Columbus, OH 43218-2077

ARTICLE V:  FISCAL MANAGEMENT & CONTROL

<PAGE>

A. By execution of this  Agreement,  the Consortium  enters into a single "Other
Transaction  Agreement" with NUWC pursuant to 10 U.S.C.  ss.2371 and under which
NUWCDIVNPT's  Agreement Officer shall receive funding from Sponsors and fund the
Consortium.

B.  The  Articles  of  Collaboration  establish  the  duties  of the  Consortium
Administrator  (CA)  empowered by the  Consortium  to  administer  the financial
aspects of the Undersea Warfare Combat Vehicle Program.

C. Name and Address of Financial Institution:

Integrated Maritime Platforms:

CAGE Code: 1UJ60

Bank of America
1000 Sixth Street
Bremerton, WA 98337
Phone: 1-360-478-7906
FAX: 1-360-478-7914
ABA - 125000024
Acct. - 11214202
Client Manager: Jeffery H. Reynolds (360)415-2535

The above  information  may be changed  by the  respective  Party  upon  written
notification to the other Party.

D. The CA will  report  quarterly  to the PMC at its  quarterly  meetings on the
finances of the Consortium. Additionally, the CA shall report monthly to the PMC
by  written  report on the  status of  finances.  E. In  addition,  the CA shall
prepare all  financial  reports  required by this OTA and submit such reports to
NUWCDIVNPT and the PMC, in accordance with TDD  requirements.  Each Member shall
provide the  required  financial  inputs to permit the CA to meet the  reporting
requirements.  The financial reporting will not include any Member's proprietary
financial or pricing information.

F. The tasks  performed by the CA shall be allowable  expenses to the Consortium
including but not limited to financial reporting.

G. All  Members  of the  Consortium,  as well as NUWC,  shall  participate  in a
cost/schedule   management  process.   Said  process  will  be  defined  in  the
Participative  Management Agreement and will be used as a management tool of the
Program Management Committee to plan/monitor workscope budgets and schedules.

H. Other Provisions

1. The Consortium and each individual  Consortium  Members obligation to perform
each Phase of this Agreement  shall be limited by the amount of funds  obligated
to this  Agreement  for each such phase and the amounts  allocated to individual
Members by the PMC under TDDs and subsidiary WBS items.

<PAGE>

2. The NUWC Technical Code(s) obligation to perform each Phase of this Agreement
shall be limited by the amount of funds  obligated  to this  Agreement  for each
such Phase and the amount  allocated  by the PMC under TDDs and  subsidiary  WBS
items.

I. Funding and Payment

1. Funding will be obligated against the OTA when TDDs are issued hereunder.

2. The  Consortium  will be reimbursed  for actual costs and  applicable  fee in
accordance with TDD(s).

3.  Consortium  Members  may not bill  more  often  than  once a month for costs
incurred in the  performance  of this  Agreement.  The original  invoice will be
submitted to the  Agreements  Officer  identified at Article IV. The  Agreements
Officer will then  transmit the signed  invoice to the DCM address at Article IV
and the Payment Office address at the Funding and Payment Article. A signed copy
will  also be  mailed to the  Consortium  Members.  Each  invoice  will  clearly
identify the total costs for all effort currently being invoiced.

4. The Government shall make payment to the Consortium Members when requested as
work  progresses,  in amounts  determined to be allowable in accordance with the
provisions of this Agreement.

J. The  Consortium  Members shall maintain  adequate  records to account for all
funding under this Agreement. The Consortium Members' relevant financial records
are subject to examination or audit by the Government for a period not to exceed
three (3) years after expiration of the period of performance of this Agreement.
The Government shall have direct access to sufficient records and information of
the Consortium Member, to ensure full  accountability for all funding under this
Agreement. The Government's audit/examination shall be limited to verifying that
the Consortium  Members incurred costs are in accordance with Generally Accepted
Accounting  Principles  (GAAP).  Such  audits,  examination,  or access shall be
performed  during business hours on business days upon prior written notice with
mutually  agreed to date and shall be  subject to the  business  confidentiality
requirements of the audited party.

ARTICLE VI: DISPUTES

A.  Resolution  procedure  for  disputes  between  the  Consortium  and the NUWC
Agreements Officer

1. The Consortium  shall submit disputes,  claims or controversies  (hereinafter
"claim" or "claims")  arising out of this Agreement to the  Agreements  Officer.
Claims shall  specify the nature and basis for the relief  requested,  and shall
include all data and relevant  facts in support of the claim.  Within 10 working
days after receipt of this notice by the Agreements Officer, an executive of one
of the  Consortium  Members  appointed by the Consortium to represent it and the
Agreements  Officer  shall  meet to  attempt  to  resolve  the  matter by mutual
agreement.  If the  matter  cannot be  resolved  by mutual  agreement  within 15
working days after receipt of a written request,  the Agreements  Officer shall,
within 45 days  after  receipt  of such  written  claim or  request,  proceed as
follows:

<PAGE>

a. Prepare a written  decision,  which shall include the basis for the decision,
the relevant facts on which the decision is based, or

b. Notify the Member of a date when a written  decision  will be rendered not to
exceed an additional 15 days.  The notice shall address why  additional  time is
needed and what, if any,  additional  information is required from the Member to
adjudicate the claim.

2. The Agreement Officer's decision is final, unless:

               a.  Appealed  to the  Director  of  NUWC,  Office  of  Management
Operations,  by  giving  written  notice  to the  Director  of NUWC,  Office  of
Management  Operations and to the Agreements  Officer within 90 calendar days of
receiving the decision of the Agreements Officer, or

               b. Suit is filed in the United  States  Court of  Federal  Claims
within 6 months of receiving the decision of the Agreements  Officer,  provided,
however,  that written notice of the intention to file said suit is given to the
Director of NUWC,  Office of Management  Operations,  within 90 calendar days of
receiving the decision of the Agreements Officer.

3. In the  event of an  appeal  filed  with the  Director  of  NUWC,  Office  of
Management  Operations,  the parties  shall  endeavor to agree upon an Alternate
Dispute  Resolution  (ADR)  technique  (such  as  discussions,   mediation,   or
mini-trial)  appropriate  to  resolve  any  dispute,  and  they  shall  use  ADR
procedures "to the maximum extent  practicable".  If the parties are not able to
agree  upon an ADR  technique,  or if they are not able to resolve  the  dispute
despite their  participation in an ADR proceeding,  the Director of NUWC, Office
of Management Operations, shall decide the appeal.

4. If the Director of NUWC,  Office of Management  Operations,  shall decide the
appeal, said decision shall be final.

B. Limitation of Damages

1. Claims for damages,  by either party, of any nature whatsoever  pursued under
this Agreement, or any way related to this Agreement, shall be limited to direct
damages only, up to the aggregate amount of NUWC funding disbursed for the Phase
under which the claim arose.

2. In no event  shall  either  Party be liable  for  claims  for  consequential,
punitive,  special  and  incidental  damages,  claims  for lost  profits  or for
attorney's  fees,  loss of use, rising out of or associated with the performance
of this Agreement.

<PAGE>

ARTICLE VII:  PATENTS

A. As used herein, "Invention" means any invention or discovery, which is or may
be patentable or otherwise protectable under Title 35 of the United States Code.

1.  Any  Invention  that is  first  conceived  by  employees  or  agents  of any
Consortium  Member in  connection  with the  performance  of this  Agreement and
funded by the Government shall,  unless expressly provided otherwise in any such
subsequent  contract,  be and remain the property of the Consortium Member whose
employees or agents developed same and is hereinafter  referred to as a 'Subject
Invention'.  All employees of each  Consortium  Member to this  Agreement  shall
remain the employees of such Consortium Member for all purposes.

2.  Unless  the  Consortium  Member  shall  have  notified  NUWCDIVNPT  that the
Consortium  Member does not intend to retain title, the Consortium  Member shall
retain  the entire  right,  title,  and  interest  throughout  the world to each
Subject  Invention  consistent with the provisions of this Article and 35 U.S.C.
ss. 202. With respect to any Subject  Invention in which the  Consortium  Member
retains  title,  the  Government  shall  have a  nonexclusive,  nontransferable,
irrevocable,  paid-up  license to practice,  or have  practiced on behalf of the
Government, but not for any commercial purpose, the Subject Invention throughout
the world.

3. The Consortium  Member shall disclose each Subject  Invention  within six (6)
months  after the  inventor  discloses  it in writing to his  company  personnel
responsible  for patent  matters.  The disclosure to NUWCDIVNPT  shall be in the
form of a written  report,  and shall  identify  the  Agreement  under which the
invention was made and the identity of the inventor(s). It shall be sufficiently
complete in technical detail to convey a clear understanding to the extent known
at the  time of the  disclosure,  of the  nature,  purpose,  operation,  and the
physical, chemical,  biological, or electrical characteristics of the invention.
The disclosure shall also identify any  publication,  sale, or public use of the
invention.  If the invention has not been  published,  the invention  disclosure
shall describe if and when the invention is intended (at the time of disclosure)
to be published.

4. If the Consortium  Member  determines that it does not intend to retain title
to any such  invention,  the  Consortium  Member  shall  notify  NUWCDIVNPT,  in
writing,  within one (1) year of disclosure to NUWCDIVNPT.  However, in any case
where publication,  sale, or public use has initiated the one (1)-year statutory
period  wherein  valid  patent  protection  can still be  obtained in the United
States, the period for such notice may be shortened by NUWCDIVNPT to a date that
is no more than  sixty  (60)  calendar  days  prior to the end of the  statutory
period.

5. The Consortium Member shall file its initial patent  application on a Subject
Invention to which it elects to retain title within two (2) years after election
of title or, if earlier,  prior to the end of the statutory period wherein valid
patent  protection can be obtained in the United States after a publication,  or
sale, or public use. The Consortium Member may elect to file patent applications
in additional  countries  (including  the European  Patent Office and the Patent
Cooperation  Treaty) within either ten (10) months of the corresponding  initial
patent  application or six (6) months from the date permission is granted by the
Commissioner  of Patents and  Trademarks  to file foreign  patent  applications,
where such filing has been prohibited by a Secrecy Order.

<PAGE>

6. Requests for extension of the time for disclosure election and filing may, at
the  discretion  of  NUWCDIVNPT,  and  after  considering  the  position  of the
Consortium Member, be granted.

7. Upon NUWC's written request,  the Consortium Member shall convey title to any
Subject Invention to NUWC under any of the following conditions:

a. If the  Consortium  Member fails to disclose or elects not to retain title to
the Subject Invention within the times specified in this Article; provided, that
the  Government  may only request  title within  ninety (90) calendar days after
learning of the failure of the Consortium Member to disclose or elect within the
specified times.

b. In those  countries  in which  the  Consortium  Member  fails to file  patent
applications within the times specified in this Article;  provided,  that if the
Consortium  Member has filed a patent  application  in a country after the times
specified in this  Article,  but prior to its receipt of the written  request by
NUWCDIVNPT the Consortium Member shall continue to retain title in that country;
or

c. In any country in which the  Consortium  Member  decides not to continue  the
prosecution of any application for, to pay the maintenance fees on, or defend in
reexamination or opposition proceedings on, a patent on a Subject Invention.

8. The  Consortium  Member shall  retain a  nonexclusive,  royalty-free  license
throughout the world in each Subject  Invention to which the Government  obtains
title. The license extends to all  subsidiaries  and affiliates,  if any, within
the  corporate  structure of the  Consortium  Member,  and includes the right to
grant  licenses of the same scope to the extent that the  Consortium  Member was
legally  obligated  to do so at the time the  Agreement  was  awarded and to its
customers and subcontractors. The license is transferable only with the approval
of  NUWCDIVNPT,  except when  transferred  to the  successor of that part of the
business  to which the  invention  pertains.  NUWCDIVNPT  approval  for  license
transfer shall not be unreasonably withheld.

9. The  Consortium  Member's  domestic  license  may be revoked or  modified  by
NUWCDIVNPT to the extent necessary to achieve expeditious, practical application
of the Subject  Invention  pursuant to an application  for an exclusive  license
submitted  consistent  with  appropriate  provisions  at 37 CFR Part  404.  This
license shall not be revoked in that field of use or the  geographical  areas in
which the Consortium Member has achieved practical  application and continues to
make the benefits of the  invention  reasonably  accessible  to the public.  The
license in any foreign  country may be revoked or modified at the  discretion of
NUWCDIVNPT  to the extent that the  Consortium  Member,  its  licensees,  or the
subsidiaries or affiliates have failed to achieve practical  application in that
foreign country.

10. Before  revocation or modification of the license,  NUWCDIVNPT shall furnish
the Consortium  Member a written notice of its intention to revoke or modify the
license,  and the  Consortium  Member shall be allowed thirty (30) calendar days
(or such other time as may be authorized  for good cause shown) after the notice
to show cause why the license should not be revoked or modified.

<PAGE>

11. The  Consortium  Member  agrees to execute or to have  executed and promptly
deliver to NUWCDIVNPT all instruments  necessary to (i) establish or confirm the
rights the Government  has  throughout the world in those Subject  Inventions to
which the Consortium Member elects to retain title, and (ii) convey title to the
Consortium Member when requested under this Article and to enable the Government
to obtain patent protection throughout the world in that Subject Invention.

12.  The  Consortium  Member  agrees  to  require,  by  written  agreement,  its
employees, other than clerical and non-technical employees, to disclose promptly
in writing to personnel  identified as  responsible  for the  administration  of
patent  matters each Subject  Invention  made under this Agreement in order that
the Consortium Member can comply with the disclosure provisions of this Article.
The Consortium Member shall instruct  employees,  through employee agreements or
other suitable educational  programs,  on the importance of reporting inventions
in sufficient time to permit the filing of patent applications prior to U. S. or
foreign statutory bars.

13. The  Consortium  Member  shall notify  NUWCDIVNPT  of any  decisions  not to
continue the  prosecution  of a patent  application,  pay  maintenance  fees, or
defend in a reexamination or opposition proceedings on a patent, in any country,
not less than thirty (30)  calendar  days before the  expiration of the response
period required by the relevant patent office.

14. The Consortium Member shall include,  within the specification of any United
States patent  application  and any patent  issuing  thereon  covering a Subject
Invention,  the following  statement:  "This  invention was made with Government
support under Agreement No. N66604-01-9-1264.  The Government has certain rights
in this invention."

15. The  Consortium  Member shall include this Article,  suitably  modified,  to
identify  the  subcontractor,  in all  subcontracts  or lower  tier  agreements,
regardless of tier, for experimental, developmental, or research work.

16. Upon request, the Consortium Member agrees to submit, during the term of the
Agreement,  an annual  report on the  utilization  of a Subject  Invention or on
efforts at  obtaining  such  utilization  that are being made by the  Consortium
Member or  licensees  or  assignees.  Such  reports  shall  include  information
regarding the status of development,  date of first  commercial sale or use, and
such  other data and  information  as the agency  may  reasonably  specify.  The
Consortium Member also agrees to provide  additional reports as may be requested
by  NUWCDIVNPT  in  connection  with  any  march-in  proceedings  undertaken  by
NUWCDIVNPT  in  accordance  with this  Article.  Consistent  with 35 U.S.C.  ss.
202(c)(5),  NUWCDIVNPT  agrees it shall not disclose such information to persons
outside the Government without permission of the Consortium Member.

<PAGE>

17.  Notwithstanding  any other provision of this clause,  the Consortium Member
agrees that it shall not grant to any person the exclusive  right to use or sell
any Subject  Invention in the United  States  unless such person agrees that any
product  embodying  the Subject  Invention  or  produced  through the use of the
Subject  Invention  shall be  manufactured  substantially  in the United States.
However,  in individual  cases,  the  requirements  for such an agreement may be
waived by NUWCDIVNPT upon a showing by the Consortium Member that reasonable but
unsuccessful  efforts  have  been made to grant  licenses  on  similar  terms to
potential  licensees  that would be likely to manufacture  substantially  in the
United States or that,  under the  circumstances,  domestic  manufacture  is not
commercially feasible.

B. No Consortium Member makes any representation,  warranty,  indemnification or
inducement with respect to the  infringement of intellectual  property rights of
third parties.

ARTICLE VIII:  INTELLECTUAL PROPERTY (OTHER THAN PATENTS)

A. This  Article  concerns  rights in  Intellectual  Property by and between the
Government  and the  Consortium.  Rights in  Intellectual  Property by and among
members  of the  Consortium  are  addressed  in  the  Consortium's  Articles  of
Collaboration.

B. As used herein  "Proprietary  Information"  sha1l mean technical  information
(including  data,  know-how,   trade  secrets  and  unpatented  inventions)  and
commercial or business information which is treated as proprietary or privileged
by the disclosing Consortium Member, which is disclosed to the NUWCDIVNPT hereto
in  connection  with  this  Agreement,  and  which  is  not  otherwise  publicly
available.

C. Any  Proprietary  Information  that is owned or controlled by any  Consortium
Member prior to the date of this Agreement, or which is acquired or developed by
a Consortium Member  independently of its performance of this Agreement or other
government  contract  shall at all times  continue to be owned or  controlled by
said Consortium Member and is hereinafter referred to as "Background Proprietary
Information".  The government shall receive no rights in Background  Proprietary
Information. Any Proprietary Information that is first conceived by employees or
agents of any  Consortium  Member in  connection  with the  performance  of this
Agreement,  unless expressly provided otherwise in any such subsequent contract,
will be and remain the  property of the  Consortium  Member  whose  employees or
agents developed same and is hereinafter referred to as "Foreground  Proprietary
Information". The Government shall receive Limited Rights (meaning the rights to
use, modify,  reproduce,  release,  perform,  display,  or disclose  Proprietary
Information,  in whole or in part,  within  the  Government)  in all  Foreground
Proprietary  Information  delivered to the Government under this Agreement.  The
Government  may not,  without the written  permission of the  Consortium  Member
asserting  Limited  Rights,  release or  disclose  the  Proprietary  Information
outside the  Government,  use the  Proprietary  Information to  manufacture,  or
authorize  the  Proprietary  Information  to be used by  another  non-Government
party.

D. Any Data  delivered to the Government  under this  Agreement  shall be marked
with the following legend:

<PAGE>

         "Use,  duplication,  or disclosure is subject to the  restrictions  set
forth in Agreement  No.  N66604-01-9-1264  between  NUWCDIVNPT  and the Unmanned
Surface Vehicles Consortium."

ARTICLE IX: SUBCONTRACTS

The Consortium is authorized to use commercial  practices  under this Agreement.
This  authorization  includes,  but is not limited to,  waiver from  competitive
bidding where the Consortium deems that it is appropriate and relief from normal
flow-down requirements to subcontractors, if any, under the UWCV Program.

ARTICLE X  PROPERTY

A. Definitions

1. "Property" means any tangible  personal property other than property actually
consumed during the execution of work under this Agreement.

B. Title to Property

1. The  Government  shall  retain  title to all  property  purchased  with  100%
Government  Funds  under this  Agreement.  Should any item of  property  with an
acquisition value greater than $100,000 be required, the Consortium shall obtain
prior written  approval of the Agreements  Officer.  Each Technical  Performance
Member (TPM) shall be responsible  for protection,  and  preservation of Program
property  at its own  expense  when such  property  is in the  custody or on the
premises  of the TPM.  The Team shall be  responsible  for the  maintenance  and
repair of Program Property and this will be an allowable  billable expense under
this Agreement. Each Technical Performance Member shall establish and maintain a
program  for the  use,  maintenance,  repair,  protection  and  preservation  of
Government  property  in  accordance  with sound  business  practices.  Title to
Property  acquired  with  more  than  one  Consortium  member's  funds  for  the
performance  of this  Agreement  will be as determined by mutual  agreement,  as
evidenced in writing,  through the Consortium  Management Committee prior to the
acquisition  thereof.  Title to Property  acquired  with one or more  Consortium
member's funds and Government funds will be as determined by mutual agreement of
the Program Management Committee prior to the acquisition of such property. Such
mutual  agreement  will be evidenced  in a writing  signed by the members of the
Program  Management  Committee.  Any property purchased by any Consortium Member
with its own funds and used in the  performance  of this  Agreement  will remain
with such Consortium Member.

C. Disposition of Property

1. At the completion of the term of this Agreement,  items of property titled to
the Government shall be disposed of in the following manner:

<PAGE>

               a. Purchased by the Consortium at an agreed-upon price, the price
to represent fair market value,  with the proceeds of the sale being returned to
NUWC; or

               b. Transferred to a Government  research  facility with title and
ownership being transferred to that Government organization; or

               c.  Donated to a  University  or  technical  learning  center for
research purposes; or

               d. Any other mutually agreeable disposition procedure.

D.  Damage or Loss of Government Property

1. In recognition of the experimental and  developmental  nature of this effort,
the Government and the Consortium hereby agree that,  notwithstanding  any other
provision of this  Agreement to the contrary,  the Consortium and the Consortium
Members individually,  shall not be liable for loss or destruction of, or damage
to the property of the Government, including any prototypes delivered under this
Agreement,  or for  expenses  incidental  to such loss,  destruction  or damage,
except where such loss or  destruction of the  Government  property  provided or
acquired under this Agreement :

a. Results from a risk  expressly  required to be insured under this  Agreement,
but only to the extent of the insurance required to be purchased or maintained;

b. That  results  from a risk that is in fact  covered by insurance or for which
the Member is otherwise reimbursed,  but only to the extent of such insurance or
reimbursement;

c. That occurs during the  performance of any tests or  demonstrations  required
under any TDD of this Agreement or which occurs after  Government  acceptance of
any prototypes or equipment  delivered  under this contract and results from any
defects or  deficiencies  in the  prototypes  or  equipment  or in the  services
performed  by the  Consortium,  as long as those  defects do not result from the
willful or negligent  misconduct of any of the  Consortium  Members'  managerial
personnel who have supervision or direction of all or  substantially  all of the
Consortium Members' business.

d. That  results from  willful  misconduct  or lack of good faith on the part of
Member's managerial personnel; or

e.  That  results  from a  failure  on the  part  of a  Member,  due to  willful
misconduct  or  lack of  good  faith  on the  part  of the  Member's  managerial
personnel to establish and administer a program or system for the control,  use,
protection, preservation or maintenance of Government property.

ARTICLE XI:  CIVIL RIGHTS ACT

This  Agreement is subject to the  requirements  of Title VI of the Civil Rights
Act of 1964 as amended  (42 U.S.C.  2000-d)  relating  to  nondiscrimination  in
federal programs.

<PAGE>

ARTICLE XII:  SECURITY

This research and  development  shall be provided  protection as required by the
appropriate security  requirements stated in the DD Form 254, attached hereto as
Attachment (2). The highest level of classification  involved in the performance
of this Agreement is expected to be SECRET. The highest security  classification
of any item  deliverable  under this  Agreement  is expected to be SECRET.  This
Agreement document, itself, is unclassified.

ARTICLE XIII:  DISCLAIMERS

Such  information  as may be  transmitted or exchanged by the Parties under this
Agreement  shall  not  constitute  any  representation,   warranty,   assurance,
guarantee,  or  inducement  by  any  Party  to the  other  with  respect  to the
infringement  of any patent or proprietary  right owned or controlled by a third
party.

ARTICLE XIV:  WARRANTY

No warranty  of any kind  whatsoever  is offered or made,  either  expressed  or
implied, by virtue of this Agreement.

ARTICLE XV:  PUBLICITY & PUBLICATION

Any data release, news release, public announcement,  advertisement, publication
or  publicity,  released by either Party to this  Agreement  that  concerns this
Agreement,  shall be  subject to prior  approval  of the other  Party.  Any such
publicity shall give due credit to the  contributions of each Party. The Parties
agree to provide  each  other  with an  advanced  copy of any  manuscript  to be
released  in any  publication  or  symposium  presentation  when the  manuscript
utilizes data derived from this Agreement.  The copy shall be sent  sufficiently
in advance to afford the other Party time to review the  manuscript  and provide
its concurrence  before the manuscript is published or presented at a symposium.
This Article shall not proscribe  NUWCDIVNPT  from satisfying  either  statutory
obligations,  or Department of Defense administrative  requirements that concern
public affairs releases.

ARTICLE XVI:  ORDER OF PRECEDENCE

In the  event of any  inconsistency  between  the  terms of this  Agreement  and
language set forth in the Task Description  Document or any other attachments to
this Agreement,  the inconsistency shall be resolved by giving precedence in the
following order: (1) The Agreement, (2) the Task Description Document(s) and (3)
all other Attachments to the Agreement.

ARTICLE XVII:  WAIVER OF RIGHTS

<PAGE>

Any waiver of any  requirement  contained in this  Agreement  shall be by mutual
agreement of the  Parties.  Any waiver shall be reduced to writing and a copy of
the waiver shall be provided to each Party.  Failure to insist upon  performance
of any of the terms and conditions of the Agreement shall not be deemed a waiver
of any rights by any Party.

ARTICLE XVIII  SEVERABILITY

If any clause,  provision or section of this  Agreement is held to be illegal or
invalid by any court, the invalidity of such clause,  provision or section shall
not affect any of the remaining clauses,  provisions or sections hereof and this
Agreement  shall be construed and enforced as if such illegal or invalid clause,
provision or section had not been contained herein.

ARTICLE XIX: ENTIRE AGREEMENT AND MODIFICATION

A. This Agreement constitutes the entire agreement of the Parties and supersedes
all prior  and  contemporaneous  agreements,  understandings,  negotiations  and
discussions  among the  Parties,  whether  oral or written,  with respect to the
subject matter hereof.

B. This  Agreement may be changed,  modified,  or otherwise  revised only by the
consent  of the  Government  and the  Consortium,  and  such  consent  shall  be
evidenced  by  a  written  bilateral  modification  to  this  Agreement.   Minor
administrative  changes,  such as changes in the paying  office,  may be made to
this Agreement unilaterally by the Government.

C. This Agreement,  or  modifications  thereto,  may be executed in counterparts
each of which shall be deemed as original, but all of which taken together shall
constitute one and the same instrument.

<PAGE>

                                 ATTACHMENT (1)
                        SAMPLE TASK DESCRIPTION DOCUMENT
                          FY01 SPARTAN UWCV DEVELOPMENT
                         TASK DESCRIPTION DOCUMENT (TDD)

The  Consortium in Phase 1 of the Prototype  Project,  will examine the 7-m Navy
Standard rigid-hull inflatable boat (RHIB) as a potential ASW and In Stride Mine
Avoidance asset,  and report on the same. The details of performance  under this
Task Description  Document shall be as agreed to by the Parties through the PMC.
The final  version of the TDD shall be  incorporated  into this  Agreement  by a
modification thereto.

                                 ATTACHMENT (2)

                               REPORT REQUIREMENTS

               With the exception of the Final Report,  all reports listed below
shall be provided as follows:  two (2) copies shall be provided to the NUWC Code
31; and one (1) copy shall be provided to the NUWC Agreements  Officer.  For the
purpose of this Attachment, a "plan" is a report.

A.             QUARTERLY STATUS REPORT

               Beginning  forty-five (45) calendar days after the effective date
of this Agreement, and quarterly thereafter at quarterly PMC meetings throughout
the  term of the  Agreement,  the  Consortium  shall  provide  a  status  report
consisting of two (2) major sections.

               1.  Technical  Status:  This  section  shall  detail  the  Team's
technical  progress to date and report all problems,  technical issues, or major
developments,  and external  collaborations  during the  reporting  period.  The
Consortium's form/format is acceptable.

               2.  Business  Status:  This  section  shall  detail the status of
resources  relative to the Team's expenditure  profiles.  Any major deviations (
plus or minus 10% of cost/schedule  Management  profiles  contained in the Phase
Management  Plan(s)) shall be explained along with proposed  adjustment actions.
The Consortium's form/format is acceptable.

B.             SPECIAL TECHNICAL REPORTS

<PAGE>

               As specified in the TDD's  between the  Consortium  and NUWC Code
31, the Consortium  shall,  from time to time,  provide to NUWC Code 31 selected
special reports on significant events or subjects.

C.            FINAL REPORT

              1. The  Consortium  shall  provide  a Final  Report  of all  major
developments  by the  Consortium  within  sixty  (60)  calendar  days  after the
termination of this Agreement.

              2. The Final Report shall be marked with a Distribution  Statement
to  denote  the  extent  of its  availability  for  distribution,  release,  and
disclosure  without  additional  approvals or  authorizations.  The Final Report
shall be marked on the front  page in a  conspicuous  place  with the  following
marking:

                  "DISTRIBUTION  STATEMENT B.  Distribution  authorized  to U.S.
                  Government  agencies,  only.  Other requests for this document
                  shall  be  referred  to  NUWC,  ATTN:  Technical   Information
                  Officer."

                                 ATTACHMENT (3)

                             SECURITY SPECIFICATION

<PAGE>

                                 ATTACHMENT (4)

                            ARTICLES OF COLLABORATION
                                     FOR THE

                      UNMANNED SURFACACE VEHICLE CONSORTIUM

<PAGE>

                                 ATTACHMENT (5)

                       PARTICIPATIVE MANAGEMENT AGREEMENT

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