Document:

<PAGE>

                                                                      EXH. 10.49

                                LICENSE AGREEMENT

This agreement ("Agreement"), which shall be effective as of January 1, 2001
("Effective Date"), is between: Outlast Technologies, Inc., a Colorado
corporation, with its principal place of business at 6235 Lookout Road, Boulder,
CO 80301 U.S.A. ("Outlast"); and Frisby Technologies, Inc., a North Carolina
corporation, with its principal place of business at 3195 Centre Park Blvd.,
Winston-Salem, NC 27107 ("Frisby").

                                    RECITALS

WHEREAS, Outlast has rights to make, have made, use, and sell certain technology
relating to certain products utilizing reversible thermal storage properties,
and

WHEREAS, Frisby is desirous of securing, and Outlast is willing to grant,
license rights to manufacture, sublicense and sell certain products utilizing
the Technology as defined below,

NOW, THEREFORE, in consideration of the mutual covenants herein and for good and
valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties hereto agree to the following terms and conditions:

                                    ARTICLE 1
                                   DEFINITIONS

1.1 "AFFILIATE" of Frisby shall mean an organization of which more than fifty
percent (50%), if a U.S. organization, or more than forty percent (40%), if a
foreign organization, of the voting stock or ownership is controlled directly or
indirectly by Frisby.

1.2 "CUSTOMER" shall mean a manufacturer of End-Use Products or Intermediate
Products, or a converter, combiner, distributor, or agent who sells to a
manufacturer of End-Use Products or Intermediate Products.

1.3 "END-USE PRODUCTS" shall mean finished products which are intended to be
sold to consumers and are made in whole or in part from Licensed Products.

1.4 "FOAM" shall mean any cellular material formed by the dispersion of gas
bubbles (whether internally chemically generated, externally incorporated, as by
chemical blowing agents, or physically incorporated, as by mechanical whipping
or frothing action) within a polymeric base material. Exemplary base material
polymers include, but are not limited to, polyurethane, ethylene/vinyl acetate
(EVA) copolymer, latex, polyethylene, polypropylene, butyl, silicone, cellulose
acetate, neoprene, epoxy, polystyrene, phenolic, and polyvinyl chloride (PVC).
As used herein "Foam" includes not only a single, continuous foam layer but also
multiple foam layers, if they are substantially continuously attached to one
another.

1.5 "INTERMEDIATE PRODUCT" shall mean MicroPCM Foam (i) that is attached by any
means to fibers, fiber products or fabrics and (ii) is not an End-Use Product.

1.6 "LICENSED PRODUCTS" shall mean the following products: (i) MicroPCMs
intended for use in MicroPCM Foam, and (ii) MicroPCM Foam; wherein the MicroPCM
Foam standing alone, in either case, has thickness greater than two (2)
millimeters and is intended to be attached or joined by any means to fibers,
fiber products or fabric when used in the construction of an End-Use Product.
For purposes of clarity, the MicroPCM Foam thickness specification required
herein applies at the time of production of the MicroPCM Foam, as well as after
the production of the Intermediate Product, but prior to delivery of either by
Frisby, its licensees, Customers, Affiliates, and/or agents. The MicroPCM Foam
shall be considered to be within specification if the MicroPCM Foam is uniformly
greater than two (2) millimeters except for edges and unintended imperfections.
In all cases specified herein, the thickness of the MicroPCM Foam portion of an
Intermediate Product shall be determined by measuring only the MicroPCM Foam and
not the

<PAGE>

fibers, fiber products or fabrics to which the MicroPCM Foam may be attached or
joined. Such thickness must remain greater than two (2) millimeters following
manufacture of both the MicroPCM Foam and the MicroPCM Foam portion of the
Intermediate Product. Intentional and permanent compression of the MicroPCM Foam
portion of the Intermediate Product by any means, without limitation to include
any form of quilt stitching of the MicroPCM Foam, to two (2) millimeters or
below by Frisby, its licensees, Customers, Affiliates and/or agents, except as
might be reasonably necessary to construct a particular End-Use Product in a
manner consistent with conventional fabrication methods, shall be a breach of
this Agreement. For purposes of clarity, permanent compression means that the
MicroPCM Foam portion of the Intermediate Product, when measured at room
temperature 12 hours after said Intermediate Product is removed from a recently
constructed and unused End-Use Product, does not rebound to above two (2)
millimeters in thickness.

1.7 "LICENSED TERRITORY" shall mean worldwide.

1.8 "MICROPCM" shall mean microencapsulated phase change material.

1.9 "MICROPCM FOAM" shall mean any Foam wherein MicroPCMs are combined with the
polymeric base material of the Foam prior to curing, resulting in a Foam
containing a plurality of MicroPCMs integral with and dispersed throughout at
least a longitudinal section of said Foam, and wherein substantially all of said
MicroPCMs are individually surroundingly encapsulated and embedded within said
Foam. "MICROPCM FOAM" shall also mean any Foam with a thickness greater than two
(2) millimeters having applied thereto a polymeric coating, which coating (i)
contains a plurality of MicroPCMs integral with and dispersed throughout said
coating, (ii) has thickness greater than two (2) millimeters, (iii) is
substantially entirely on the surface of the Foam, and (iv) has been cured prior
to being attached or joined to any fibers, fiber products or fabric. For
purposes of clarity, the "MICROPCM FOAM" as defined by the second sentence of
this Section 1.9 must have a total thickness greater than four (4) millimeters.

1.10 "PARTY" shall mean Frisby or Outlast.

1.11 "PARTIES" shall mean Frisby and Outlast.

1.12 "PCM" shall mean phase change material.

1.13 "TECHNOLOGY" shall mean the intellectual property licensed by Outlast from
Triangle Research and Development Corporation of Raleigh, NC, ("TRDC") pursuant
to the TRDC License. "Technology" does not include any patent which Outlast owns
or in which Outlast has rights other than patents licensed under the TRDC
License.

1.14 "TRDC LICENSE" shall mean that certain License Agreement executed January
22, 1991 between TRDC and Gateway Technologies, Inc. (the former name of
Outlast).

                                    ARTICLE 2
                             GRANT OF LICENSE & TERM

2.1 GRANT. Subject to the terms and conditions in this Agreement, including
without limitation Section 2.3, Outlast grants to Frisby an exclusive,
fully-paid license under the Technology and within the Licensed Territory to
make, have made, use, and sell Licensed Products to Customers for incorporation
into End-Use Products. Frisby's rights under this Section 2.1 shall include the
right to sublicense Customers and those who purchase from Customers, either by
sale of Licensed Products or by separate contract. The license granted hereunder
shall be exclusive, even as to Outlast.

2.2 RESERVATION OF RIGHTS. Nothing in this Agreement shall be deemed to convey
to Frisby an interest in the Technology other than as stated in Section 2.1 of
this Agreement. Furthermore, nothing in this Agreement shall be construed to
limit Outlast's ability to make, have made, use, and sell products incorporating
the Technology, except as specifically provided herein. Frisby acknowledges
that, as

                                       2
<PAGE>

respects the Technology, Outlast may sell any product it owns or to which it has
rights, except for the rights to Licensed Products granted to Frisby. Neither
Frisby nor its Affiliates will challenge the validity of the Technology or the
validity of Outlast's license under the Technology. However, an agreement by
Outlast affecting any of the foregoing, or an award or court judgment that is
binding on Outlast and affects any of these matters, in a challenge by any
person or entity other than Frisby or its Affiliates, will inure to Frisby's
benefit to the extent applicable.

2.3 SPECIFIC PRODUCTS/MARKETS RESERVED. Outlast has granted certain exclusive
rights to Benetton Group S.p.A. ("Benetton") in Alpine Ski Boots. No Licensed
Product may be sold for use in Alpine Ski Boots until 1 year after the rights
granted by Outlast to Benetton expire without extension or become non-exclusive.
Outlast shall notify Frisby in writing within thirty (30) days after the rights
granted by Outlast expire without extension or become non-exclusive. One year
after the rights granted by Outlast in Alpine Ski Boots expire without extension
or become non-exclusive, Frisby shall have the non-exclusive right to sell
Licensed Products for use in Alpine Ski Boots. Outlast shall be entitled to
extend the term of any rights granted to Benetton upon such terms as Outlast may
determine.

2.4 SCOPE OF TRDC LICENSE. The Parties agree that MicroPCM Foam that is attached
or joined by any means to fibers, fiber products or fabric is within the scope
of the TRDC License and, therefore, is within the definition of Technology. The
Parties further agree that, except as it is attached or joined by any means to
fibers, fiber products or fabric, MicroPCM Foam is not within the scope of the
TRDC License, and therefore, is not within the definition of Technology. Neither
Frisby nor its Affiliates will challenge the meaning of Technology as set forth
above in this Section with respect to any period during which this Agreement is
in effect. However, an agreement by Outlast that restricts the scope of
Outlast's license under the TRDC License, or an award or court judgment that is
binding on Outlast and restricts the scope of Outlast's license under the TRDC
License, in a challenge by any person or entity other than Frisby or its
Affiliates, will inure to Frisby's benefit hereunder by restricting the
definition and scope of "Licensed Products" to those within the so restricted
scope of the TRDC License, to the extent applicable. Frisby and its Affiliates
will not encourage or support (other than any support which is required to be
given under law) any third party in making any such challenge.

2.5 TERM. Subject to the provisions of Section 3.2 of the agreement dated as of
the date hereof between Outlast and Frisby, this Agreement shall automatically
terminate upon expiration of the last to expire of the patents within the
Technology.

2.6 NOTICES. Frisby shall provide the following notice in writing to all new
licensees, Customers and Affiliates at the time it grants a sublicense to the
Technology to such entity: "Intentional and permanent compression of the
MicroPCM Foam to two (2) millimeters or below, except as might be necessary to
construct the End-Use Product in a manner consistent with conventional
fabrication methods, shall be a breach of the license granted by Frisby.
Thickness of the MicroPCM Foam shall be determined by measuring only the
MicroPCM Foam and not any fibers, fiber products or fabrics to which the
MicroPCM Foam may be attached or joined."

                                    ARTICLE 3
                    DISCOVERIES, INVENTIONS & PATENT MARKINGS

3.1 DISCOVERIES AND INVENTIONS. Frisby shall be entitled to develop
enhancements, modifications or improvements to the Licensed Products
("Improvements"). Frisby grants to Outlast a worldwide, exclusive, fully paid-up
license under the same scope of the Technology to make, have made, use and sell
Improvements subject to the exclusive rights granted to Frisby hereunder. Upon
conception of each Improvement, Frisby shall, as soon as practicable, notify
Outlast in writing about the Improvement in accordance with Section 6.3,
including therein a complete description of the Improvement. For three (3)
months following disclosure by Frisby to Outlast, each Improvement shall not be
publicly disclosed, published, demonstrated, offered for sale or otherwise
divulged by Frisby without Outlast's written consent. During the term of this
Agreement, Frisby's license to make, use and sell Licensed Products shall
include commensurate rights under Improvements, which rights with respect to the
Improvements shall not require any royalty.

                                       3
<PAGE>

3.2 PROSECUTION OF PATENT APPLICATIONS. Frisby, at its sole discretion and at
its own expense, shall file and prosecute patent applications on Improvements
and shall assign or license rights thereto to Outlast, as and to the extent
specified in Section 3.1.

3.3 PATENT MARKING. Except for MicroPCMs sold by Frisby, Frisby shall mark all
Licensed Products and End-Use Products or their containers sold by Frisby under
this Agreement with the words "Patent No." and the numbers of the patent(s)
applicable to each Licensed Product.

                                    ARTICLE 4
                        ENFORCEMENT OR DEFENSE OF RIGHTS
                              AGAINST THIRD PARTIES

4.1 THIRD PARTY INFRINGEMENT. Outlast and Frisby shall notify each other in
writing not more than thirty (30) days after learning of a possible infringement
of the Technology or of any imitation, unauthorized possession, knowledge, or
use of the Technology or of any claim by a third party that the Technology may
be infringing on the rights of a third party.

4.2 ENFORCEMENT AND DEFENSE.

         a. Unless otherwise agreed by the Parties, Frisby shall have the sole
right to institute legal proceedings against any third party that is reasonably
believed to be infringing the Technology with respect to a Licensed Product to
which Frisby has exclusive rights under this Agreement to eliminate such
infringement. Frisby shall pay all costs related to bringing any such action.
Outlast, at Frisby's sole expense, shall reasonably cooperate in the prosecution
of any such action. Frisby shall be entitled to receive and retain the full
amount of any and all settlement amounts, damages, license fees, and costs
recovered or required to be paid relating to any such action.

         b. Outlast and Frisby, as party defendants, shall jointly defend any
action brought by a third party against either Outlast or Frisby or both with
respect to the validity of either Parties' rights in the Technology as they
relate to Licensed Products. Outlast and Frisby shall share equally all costs
related to bringing or defending any such action and shall share equally in any
and all settlement amounts, damages, license fees, and costs recovered or
required to be paid relating to any such action.

4.3 FRISBY'S FAILURE TO ENFORCE OR DEFEND. In the event that Frisby fails to
enforce or defend the Technology in breach of Section 4.2, Outlast may institute
legal proceedings against a third party infringer and shall defend legal
proceedings filed against it. Any action instituted by Outlast against a third
party infringer shall be at Outlast's sole cost and expense and Outlast shall be
entitled to retain all amounts received in costs, settlement or damages.

4.4 JOINT REPRESENTATION. Outlast and Frisby shall make every effort to agree on
representation by one lead counsel in any joint defense of the Technology who is
the most knowledgeable about the Technology, as well as the claims involved, in
order to promote efficiency and to reduce expenses incurred in the joint defense
of rights against third parties. If the parties involved can not reach a
decision on lead counsel, Outlast shall make the final selection. Any party may
choose to be separately represented, however, in that instance, such party shall
pay its own legal fees and costs for such separate representation in addition to
its share of the costs related to joint representation.

4.5 COOPERATION. The Parties shall cooperate fully in the enforcement or defense
of rights pursuant to this Article 4 including without limitation, releasing
information and documents relevant thereto and participation in any litigation
brought hereunder, to the extent specified.

                                    ARTICLE 5
                    WARRANTY, LIABILITY, AND INDEMNIFICATION

                                       4
<PAGE>

5.1 PROPRIETARY RIGHTS WARRANTY. Outlast warrants that as of the date it
executes this Agreement, it knows of no claim of any third party relating to the
infringement by Outlast of such third party's rights in any patent or other
proprietary right relating to the use of the Technology other than those set
forth on Schedule 5.1 to this Agreement. Frisby warrants that as of the date it
executes this Agreement, it knows of no claim of any third party relating to the
infringement by Frisby of such third party's rights in any patent or other
proprietary right relating to the use of Frisby's intellectual property or
proprietary information other than those set forth on Schedule 5.1 to this
Agreement. In addition, each Party warrants that this Agreement does not
contravene any other agreement to which it is a party or its certificate of
incorporation or by-laws.

5.2 TRDC LICENSE. Outlast warrants that to the best of its knowledge, (i) the
TRDC License is valid and binding upon TRDC and Outlast and is in full force and
effect, and (ii) Outlast has the right under the TRDC License to grant the
rights granted to Frisby pursuant to this Agreement.

5.3 LIMITATION OF LIABILITY. OTHER THAN AS EXPRESSLY SET FORTH IN SECTIONS 5.1
AND 5.2 ABOVE, FRISBY ACKNOWLEDGES AND AGREES THAT OUTLAST HAS NOT MADE, DOES
NOT MAKE, AND HEREBY DISCLAIMS, ANY REPRESENTATION, GUARANTY, CONDITION,
COVENANT OR WARRANTY OF ANY KIND WITH RESPECT TO ITS TECHNOLOGY, WHETHER WRITTEN
OR VERBAL, EXPRESS OR IMPLIED, IN FACT OR AT LAW, INCLUDING WITHOUT LIMITATION
ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR USE.
EXCEPT WITH RESPECT TO INDEMNIFICATION OBLIGATIONS UNDER SECTION 5.4 OR BREACHES
OF ARTICLE 6, NEITHER PARTY SHALL, UNDER ANY CIRCUMSTANCE, BE LIABLE TO THE
OTHER FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL OR EXEMPLARY DAMAGES
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREIN, EVEN IF SUCH PARTY WAS APPRISED OF THE LIKELIHOOD OF SUCH DAMAGES
OCCURRING.

5.4 INDEMNIFICATION.

         a. USE OF TECHNOLOGY: FRISBY. Frisby shall indemnify, defend, and hold
harmless Outlast from any and all claims, liabilities, losses, damages, costs,
and expenses (including reasonable attorneys fees and costs) which Outlast or
Frisby may sustain, whether for personal injury or otherwise, by reason of or as
a result of Frisby's (or its employees, officers, agents, or any person
connected with its business) design, operation of its business, marketing,
manufacture, or distribution of Licensed Products, including but not limited to:
(i) unfair or fraudulent advertising claims, warranty claims, and claims for
unauthorized use of any intellectual property right owned by a third party; (ii)
product defect or liability claims pertaining to the Licensed Products; and
(iii) failure to comply with any laws or regulations, including all of the
United States import/export laws and regulations.

         b. USE OF TECHNOLOGY: OUTLAST. Outlast shall indemnify, defend, and
hold harmless Frisby from any and all claims, liabilities, losses, damages,
costs, and expenses (including reasonable attorneys' fees and costs) which
Outlast or Frisby may sustain, whether for personal injury or otherwise, by
reason of or as a result of Outlast's (or its employees, officers, agents, or
any person connected with its business) design, operation of its business,
marketing, manufacture, or distribution of products made with or containing
Improvements, including but not limited to: (i) unfair or fraudulent advertising
claims, warranty claims, and claims for unauthorized use of any intellectual
property right owned by a third party; (ii) product defect or liability claims
pertaining to such products; and (iii) failure to comply with any laws or
regulations, including all of the United States import/export laws and
regulations.

                                    ARTICLE 6
                            MISCELLANEOUS PROVISIONS

6.1 STATUS OF PARTIES. Nothing contained in this Agreement shall be deemed or
construed as creating a joint venture or partnership between the Parties.
Neither Party shall have the power to control the activities

                                       5
<PAGE>

and operations of the other and their status is, and at all times will continue
to be, that of independent contractors with respect to each other. Neither Party
shall hold itself out as having any authority or relationship in contravention
of this Section 6.1, and neither Party shall act on behalf of the other Party or
enter into any contracts, warranty, or representation as to any other matter on
the behalf of the other Party.

6.2 EFFECT OF WAIVER. No waiver whether express or implied, of any breach of any
term, condition, or obligation of this Agreement shall be construed as a waiver
of any subsequent breach of that term, condition, or obligation, or any other
term, condition, or obligation of this Agreement of the same or different
nature.

6.3 NOTICES. All notices or other communications which are required to be given
or may be given to Parties pursuant to the terms of this Agreement shall be
given in writing and delivered personally or by registered or certified mail,
postage prepaid. Notice shall be deemed given on the date of delivery in the
case of personal delivery or on the delivery date as specified in the return
receipt in the case of registered or certified mail. Notices to be given to
Outlast shall be addressed to Mr. George Cattermole, President, Outlast
Technologies, Inc., 6235 Lookout Road, Boulder, CO 80301, with a copy to Holland
& Hart LLP, 555 Seventeenth Street, Suite 3200, Denver, Colorado 80202, Attn:
Kevin S. Crandell. If given to Frisby, it shall be addressed to Mr. Greg Frisby,
CEO, Frisby Technologies, Inc., 3195 Centre Park Blvd., Winston-Salem, NC 27107,
with a copy to Jones, Day Reavis & Pogue, 599 Lexington Avenue, New York, New
York 10022-8070, Attn: Robert K. Smits. Either Party hereto may at any time, by
thirty (30) days written notice to the other, designate any other person or
address in place of those provided in this Section 7.3 6.3.

6.4 SEVERABILITY. The Parties acknowledge and agree that, should any provision
of this Agreement be determined to violate or contravene any law, such provision
shall be severed or modified to the extent necessary to comply with the
applicable law, and such modified provision and the remainder of the provisions
hereof shall continue in full force and effect.

6.5 SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of the
successors, or assigns of the Parties. The license granted by this Agreement
shall be binding on any successor to ownership or control of the Licensed
Products. Frisby shall have the right to assign or sublicense its rights under
this Agreement without the consent of Outlast; provided, however, that any such
assignee or sublicensee agrees in writing to be bound by the terms and
conditions of this Agreement. Name changes and changes of the state of
incorporation shall not require approval. Outlast shall be able to assign its
rights under this Agreement freely and without constraint. In the event of a
merger or consolidation between Outlast and a surviving corporation, or if an
entity purchases or otherwise acquires all, or substantially all, of the assets
of that segment of Outlast's business relating to the subject matter of this
Agreement, Outlast shall be able to assign this Agreement as a whole to the
surviving corporation or purchasing or acquiring entity and, thereafter, Outlast
shall have no further liability to Frisby pursuant to this Agreement; provided,
however, that such surviving or acquiring entity first agrees in writing to be
bound by the terms and conditions of this Agreement.

6.6 MODIFICATION. Except as specifically provided otherwise herein, this
Agreement shall only be modified by written agreement of both Parties.

6.7 INJUNCTIVE RELIEF. The Parties acknowledge that the Technology possesses a
special, unique, and extraordinary character which makes difficult the
assessment of the monetary damage which would be sustained by Outlast as a
result of Frisby's breach of this Agreement, and that irreparable injury would
be caused to Outlast by such breach. Accordingly, Outlast shall have the right
to seek and obtain immediate and permanent injunctive and other equitable
relief, without the necessity of posting a bond, cash or otherwise, in the event
of a breach of this Agreement by Frisby, in addition to any and all rights or
remedies otherwise available to Outlast at law or in equity.

6.8 AUTHORIZATION. The Parties acknowledge that this Agreement is valid, legal,
and binding upon such Party. Outlast represents and warrants that the person
signing this Agreement on behalf of Outlast is duly authorized to bind Outlast
to the terms and conditions of this Agreement. Frisby represents and warrants

                                       6
<PAGE>

that the person signing this Agreement on behalf of Frisby is duly authorized to
bind Frisby to the terms and conditions of this Agreement.

6.9 HEADINGS AND CAPTIONS. The headings or captions in this Agreement are
inserted for convenience and identification only and are in no way intended to
describe, interpret, define, or limit the scope, extent, or intent of this
Agreement or any provisions hereof.

6.10 ENTIRE AGREEMENT. The Parties agree that this Agreement contains the entire
understanding and Agreement between the Parties and supersedes all previous
communications, proposals, representations, and agreements, whether oral or
written, and whether related in any way to the purpose of this Agreement or not.
This Agreement is binding upon the Parties and neither Party shall challenge its
validity. This Agreement shall not be construed against the drafting Party
solely because of the submission of the Agreement to the other Party. Each Party
has had an opportunity to consult with its own legal counsel and has not relied
upon representations or warranties of the other Party except as set forth in
this Agreement.

6.11 COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same instrument.

6.12 CHOICE OF LAW AND JURISDICTION. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Colorado,
without regard to the conflicts of laws principles of such State. Any suit
commenced by Frisby to enforce any provision of this Agreement, or arising out
of or based upon this Agreement, shall only be brought in the United States
District Court for the District of Colorado or the District Court in and for the
County of Boulder, Colorado. Any suit commenced by Outlast to enforce any
provision of this Agreement, or arising out of or based upon this Agreement,
shall only be brought in the United States District Court for the District of
North Carolina or the Court in and for the County of Forsyth, North Carolina.
Each party hereby agrees that such courts shall have in personam jurisdiction
and venue with respect to such party, and each party hereby submits to the in
personam jurisdiction and venue of such courts.

6.13 SURVIVAL. Except as otherwise provided herein, the provisions of this
Agreement that by their sense and context are intended to survive performance by
either or both parties shall also survive the expiration or termination of this
Agreement.

                                       7
<PAGE>

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE DULY
EXECUTED, IN DUPLICATE, AS OF THE EFFECTIVE DATE.

OUTLAST TECHNOLOGIES, INC.

BY: /s/ George R. Cattermole
   --------------------------------------------
NAME: George R. Cattermole
     ------------------------------------------
         (Print)

TITLE: President & CEO    DATE: May 4, 2001
      -----------------        ----------------

FRISBY TECHNOLOGIES, INC.

BY: /s/ Duncan R. Russell
   --------------------------------------------

NAME: Duncan R. Russell
     ------------------------------------------
         (Print)

TITLE: President & COO    DATE: May 4, 2001
      -----------------        ----------------

                                       8
<PAGE>

                                  Schedule 5.1
                                       to
                License Agreement Effective as of January 1, 2001
                                     Between
                           Outlast Technologies, Inc.
                                       and
                            Frisby Technologies, Inc.

                               Third Party Claims

1. Theresa M. Buckley

2. Baychar

                                       9<PAGE>

                                                                       EXH 10.50

                           PATENT ASSIGNMENT AGREEMENT

         This agreement ("Agreement"), which shall be effective as of November
23, 2001, is between: TEXON UK LIMITED whose registered office is at 100 Ross
Walk, Belgrave, Leicester, LE4 5BX United Kingdom ("Texon") and FRISBY
TECHNOLOGIES, INC., a Delaware corporation, with its principal place of business
at 3195 Centre Park Boulevard, Winston-Salem, North Carolina United States of
America 27107 ("Frisby").

                                    RECITALS

         WHEREAS, Texon has an ownership interest in certain patent applications
relating to temperature regulation in nonwovens within the field of footwear,
comprising PCT/GB01/03453 filed August 1st, 2001 and U.S. application nos.
09/750,212 filed on December 28th, 2000 and US01/41497 filed on July 31, 2001
each claiming priority from its U.K. counterpart, patent application numbered
0019142.9 filed August 5th, 2000; and

         WHEREAS, Texon desires to withdraw all pending patent applications with
the exception of U.S. application no. US01/41497 filed on July 31, 2001 before
or immediately following execution of this Agreement; and

         WHEREAS, Frisby wishes to acquire, and Texon is willing to assign,
under the terms and conditions set forth herein, all rights, title and interest
in and to such surviving pending applications;

         NOW, THEREFORE, in consideration of the mutual covenants herein and for
good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties hereto agree to the following terms and conditions:

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

1.1 "AFFILIATE" shall mean, with respect to any person or entity, any other
person or entity directly or indirectly controlling, controlled by, or under
common control with such person or entity. For the purposes of this definition,
"control," when used with respect to any person or entity, means the possession,
directly or indirectly, of the power to cause the direction of the management
and policies of such person or entity, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. 1.2 "ASSIGNED PATENTS"
shall mean U.S. application no. US01/41497 filed on July 31, 2001 and any
continuations, divisionals, continuations-in-part, reexaminations, reissues and
extensions of any of the applications thereof, and any patent applications or
patents on Future Improvements or Existing Technology.

1.3 "ASSIGNED PROPERTY" shall mean the Assigned Patents, Future Improvements and
Existing Technology.

1.4 "EFFECTIVE DATE" shall mean the date first written above.

1.5 "EXISTING TECHNOLOGY" shall mean any and all inventions, developments,
existing improvements, and proprietary information in existence, owned by Texon
as of the Effective Date, other than any such inventions, developments,
improvements and proprietary information described within the Assigned Patents,
relating to the use of phase change materials for temperature regulation in
Nonwoven Materials.

1.6 "FUTURE IMPROVEMENTS" shall mean any new enhancements, modifications,
improvements, inventions or developments relating to the use of phase change
materials for

<PAGE>

temperature regulation in Nonwoven Materials conceived or reduced to practice by
Texon during the Term.

1.7 "NET SELLING PRICE" shall mean money or any other consideration, exclusive
of sales taxes, custom duties, value added taxes, transportation, insurance and
reasonable allowances for returns if any, received by Frisby for the sale or
other disposition or Protected Products. The term "sale" as used herein shall
mean "final sale" as used in Article 1.11.

1.8 "NONWOVEN MATERIAL" shall mean as defined under ASTM D 1117-80, namely a
textile structure produced by bonding or interlocking of fibers, or both,
accomplished by mechanical, chemical, thermal, or solvent means and combinations
thereof, but not including paper, or fabrics that are woven, knitted or tufted".

1.9 "PARTY" or "PARTIES" shall mean Texon or Frisby or both as the context may
require.

1.10 "PROPRIETARY INFORMATION" shall mean any and all information relating to
(i) this Agreement and, in specific, any amounts paid by Frisby pursuant to this
Agreement, (ii) any financial information provided by Frisby pursuant to this
Agreement, and (iii) the Assigned Property, including without limitation files
and correspondence relating to the Assigned Property, in each case whether in
writing, verbal, recorded or in some other physical or non-physical form.

1.11 "PROTECTED PRODUCT" shall mean (i) any nonwoven footwear component material
sold by Frisby or its Affiliates covered by at least one Valid Claim, and (ii)
any MicroPCM materials sold by Frisby and its Affiliates used to create a
nonwoven footwear component material covered by at least one Valid Claim,
provided, however, that Frisby shall only be required to pay royalties pursuant
to Article 3 once with respect to any materials used to create such a nonwoven
footwear component material covered by at least one Valid Claim. If, for
example, any such

<PAGE>

materials (i) are sold by Frisby, or its respective Affiliates, and (ii) are
re-acquired by Frisby or its respective Affiliates as part of a created nonwoven
footwear component material, and (iii) the created nonwoven footwear component
material is then re-sold under circumstances in which a royalty will be paid
under Article 3, no royalty shall be paid with respect to the initial sale of
the materials used to create the nonwoven footwear component materials, but
royalties shall be paid on the final sale of the created nonwoven footwear
component material.

1.12 "TERM" shall mean the period commencing on the Effective Date and ending at
the earlier of (a) the first date on which there are no Valid Claims covering
Protected Products or (b) December 31, 2009.

1.13 "VALID CLAIM" shall mean any claim of the Assigned Patents that has not
been held invalid or unenforceable by a final unappealed or unappealable
decision of a court of competent jurisdiction or the appropriate administrative
agency.

                                   ARTICLE 2
                     DELIVERABLES AND INFORMATION RETENTION

2.1 ASSIGNMENT. Subject to the terms and conditions in this Agreement, Texon
hereby sells, assigns and transfers to Frisby, and Frisby hereby accepts, all of
Texon's rights, title and interests in and to the Assigned Property to Frisby.
The Parties agree that Texon's rights, title and interests in and to the
Assigned Property are limited to the field of footwear. Texon retains no rights
in the Assigned Property, except as specifically set forth in this Agreement.

2.2 RETENTION OF DOCUMENTS. Texon shall preserve all of its files relating to
the Assigned Patents during the Term.

                                   ARTICLE 3
                             PAYMENTS AND ROYALTIES

3.1 ROYALTIES. Commencing as of the Effective Date and continuing throughout the
Term, Frisby shall pay patent use royalties to Texon in accordance with the
following: (a) for

<PAGE>

Protected Products with a total weight up to and including 300 grams per square
meter (gsm) ("Category 1"): Frisby shall pay Texon a royalty equal to 2.5% of
the Net Selling Price on the first $500,000 USD in cumulative Category 1
Protected Product sales. Once cumulative sales of Category 1 Protected Products
exceed $500,000, Frisby shall pay a royalty of 1% of the Net Selling Price of
Category 1 Protected Products; (b) for Protected Products with a total weight in
excess of 300 gsm ("Category 2"), Frisby shall pay Texon a royalty equal to 5%
of the Net Selling Price on the first $500,000 USD in cumulative Category 2
Protected Product sales. Once cumulative sales of Category 2 Protected Products
exceed $500,000, Frisby shall pay a royalty of 1.5% of the Net Selling Price of
Category 2 Protected Products.

Payments of monies owed under these Articles 3.1(a) and 3.1(b) shall be made
within 45 days following the close of each calendar year. If for any reason any
payments owing to Texon are not paid when due, then interest shall begin
accruing on the due date and shall be payable on the unpaid balance at a rate of
0.5% per month. All payments owing under these Articles 3.1(a) and 3.1(b) shall
be made by wire-transfer to:

         Account no. Texon UK - USDA
         Royal Bank of Scotland plc
         Corporate Banking Office
         P.O. Box 450
         5-10 Great Tower Street
         London EC3P 3HX
         Sortcode: 16-04-00
         Swift: RBOSGB2L

3.2 MINIMUM CUMULATIVE ROYALTIES. Notwithstanding anything herein to the
contrary, if Frisby's royalty payments pursuant to Articles 3.1(a) and 3.1(b)
herein do not total, in sum, at least $25,000 by December 31, 2004, then the
difference between $25,000 and the amount actually paid to Texon shall be paid
to Texon by Frisby in cash or an alternative form of

<PAGE>

compensation acceptable to Texon. This guarantee is regardless of whether or not
Valid Claims exist at December 31, 2004. Any payments due pursuant to this
Article 3.2 shall be paid before February 15, 2005. If for any reason any
payments owing to Texon are not paid when due, then interest shall begin
accruing on the due date and shall be payable on the unpaid balance at a rate of
0.5% per month. All payments owing under this Article 3.2 shall be made by
wire-transfer to:

         Account no. Texon UK - USDA
         Royal Bank of Scotland plc
         Corporate Banking Office
         P.O. Box 450
         5-10 Great Tower Street
         London EC3P 3HX
         Sortcode: 16-04-00
         Swift: RBOSGB2L

3.3 EFFECT OF VALID CLAIM. The patent use royalties as set forth in Articles
3.1(a) and 3.1(b) shall apply throughout the Term so long as there is at least
one Valid Claim covering the Protected Product in question. Neither Frisby nor
its Affiliates will challenge the validity or enforceability of the Assigned
Patents following execution of this Agreement.

                                   ARTICLE 4
                          RECORD KEEPING AND REPORTING

4.2 RECORDS. Frisby shall keep, at its principal place of business, complete and
accurate records and books of account showing quantities of each Protected
Product sold or otherwise disposed of by that Party and its respective
Affiliates, the Net Selling Price of each such Protected Product. Frisby shall
also keep, at its principal place of business, sufficient information to enable
Texon to determine whether any product sold by Frisby or its Affiliates is a
Protected Product.

4.3 ANNUAL REPORTS. Starting with the year 2001, and not later than 45 days
after the close of each calendar year thereafter, Frisby shall render written
reports to Texon, signed by a duly authorized officer and certified by such
officer as accurate, to the best of his or her knowledge,

<PAGE>

for each quarter in the preceding year of the following: (i) the quantity of
each Protected Product sold or otherwise disposed of by Frisby and its
respective Affiliates, (ii) the Net Selling Price of each Protected Product sold
or otherwise disposed of by Frisby and its respective Affiliates, and (iii) the
calculation of the royalties owed to Texon under Article 3.1 of this Agreement.

4.4 INSPECTION. All records of Frisby pertaining to this Agreement, including
those identified in Article 4.1, shall be available for annual inspection by
Texon. Such inspections shall be conducted during normal business hours at
Frisby's primary place of business upon reasonable advance notice and not more
than once per calendar year.

4.5 DISCREPANCIES. If, in any given year of this Agreement, Texon discovers a
discrepancy between the royalties calculated and paid by Frisby and the
royalties Texon determines are owed based on Texon's inspection of Frisby's
records, Texon shall promptly provide written notice of the discrepancy (the
"Discrepancy Notice") to Frisby. Frisby shall then have thirty (30) days from
the date of such Discrepancy Notice to dispute Texon's calculations. If, at the
end of such thirty (30) day period, Texon has received no written notice from
Frisby disputing the discrepancy, or Frisby has confirmed the discrepancy, the
amount of the discrepancy shall then become due as a payment from Frisby to
Texon. If the amount of the discrepancy is greater than $25,000 USD, Frisby
shall pay, in addition to the amount of the discrepancy, the costs of Texon's
inspection that year. Any payment made under this Article 4.4 shall be paid to
Texon by Frisby in cash or an alternative form of compensation acceptable to
Texon, and shall be paid within sixty (60) days from date of the Discrepancy
Notice. If for any reason any payments owing to Texon are not paid when due,
interest shall begin accruing on the due date and shall be payable on the unpaid
balance at a rate of 0.5% per month. All payments owing under this Article 4.4
shall be made by wire-transfer to

<PAGE>

         Account no. Texon UK - USDA
         Royal Bank of Scotland plc
         Corporate Banking Office
         P.O. Box 450
         5-10 Great Tower Street
         London EC3P 3HX
         Sortcode: 16-04-00
         Swift: RBOSGB2L

                                   ARTICLE 5
                       PATENT PROSECUTION AND MAINTENANCE

5.1 PATENT PROSECUTION. Frisby shall assume the prosecution of the Assigned
Patents, including all costs, expenses, filing fees and attorney's fees
associated therewith, including the costs associated with the proper recording
of this assignment with the United States Patent and Trademark Office (USPTO).
Frisby shall control, in its sole discretion, all aspects of such prosecution,
including without limitation any decision to continue or abandon any such
prosecution. Texon shall bear no costs related to any such prosecution, but
Texon shall cooperate in any such prosecution and shall provide such information
and assistance as is reasonable.

5.2 MAINTENANCE. Frisby shall assume responsibility for the maintenance of the
Assigned Patents, including payment of all maintenance fees. Frisby shall
control, in its sole discretion, all aspects of such maintenance, including
without limitation any decision to continue or abandon any such maintenance.

5.3 SUITS IN DEFENSE OF ASSIGNED PROPERTY. Each Party shall notify the other
Party in writing not more than thirty (30) days after learning of any claim by a
third party with respect to the validity or enforceability of the Assigned
Patents, or that the Assigned Property infringes the rights of any third party.
Frisby shall have the right in its sole discretion to defend any legal
proceedings brought by a third party which affects in any way the validity or
enforceability of

<PAGE>

the Assigned Patents, except that Frisby shall have the obligation to defend any
legal proceedings brought by a third party against Texon that relates in any way
to such claims. Patent use royalties owed to Texon pursuant to paragraph 3.1 of
this Agreement will not accrue for the time period that such a proceeding is
active; however, such proceedings will have no affect on Frisby's requirements
pursuant to paragraph 3.2 of this Agreement. Texon shall not be responsible in
any way for defending any such third party claims. Frisby shall control, in its
sole discretion, all aspects of any such proceedings, including without
limitation any decision to continue, settle or abandon any such proceedings.
Frisby shall be responsible for all costs related to bringing any such
proceedings. Texon shall provide information and assistance to Frisby in
defending against any challenge to the validity and enforceability of the
Assigned Patents

                                   ARTICLE 6
                        FUTURE DISCOVERIES AND INVENTIONS

6.1 TOTALITY OF INTEREST. Texon represents and warrants that, as of the
Effective Date, it has no right, title or interest whatsoever in, and has not
previously transferred any right, title or interest whatsoever in: (i) any
United States and/or foreign patents or patent applications relating to the use
of phase change materials in Nonwoven Materials for temperature regulation,
including without limitation any continuation, continuation-in-part or
divisional patent applications or any reexamination or reissue patents or any
extensions thereof, other than the Assigned Patents, or (ii) any Existing
Technology.

6.2 FUTURE IMPROVEMENTS. Texon shall notify Frisby in writing, as soon as
practicable, of any Future Improvements. Each such notice shall include a
complete description of the Future Improvement. To the extent that under
applicable law, the transfer by Texon of any Future Improvement pursuant to this
Agreement is invalid or unenforceable, or to the extent that Frisby agrees that
such transfer should not be made, Texon hereby grants to Frisby a worldwide,

<PAGE>

exclusive, perpetual license to use such Future Improvements to make, have made,
use and sell products, including the exclusive right to grant sub-licenses to
third parties.

6.3 PROSECUTION OF PATENT APPLICATIONS. Frisby shall have the right in its sole
discretion to determine whether or not patent protection is to be sought for any
Existing Technology or Future Improvement. Frisby shall control, in their sole
discretion, all aspects of any such prosecution, including without limitation
any decision to continue or abandon any such prosecution. Frisby shall pay all
costs related to any such prosecution. Texon shall cooperate in any such
prosecution and shall provide such information and assistance as is reasonably
available. If Frisby elects not to seek patent protection for any Future
Improvement, it shall notify Texon of such decision in writing within sixty (60)
days after Texon has notified Frisby of the Future Improvement, in which event
Texon shall have the right, at its sole discretion and expense, to file a patent
application on such Future Improvement. If Frisby decides to abandon the
prosecution of a patent application on any Future Improvement, they shall notify
Texon of such decision in writing at least thirty (30) days before such
abandonment, in which event Texon shall have the right, at its sole discretion
and expense, to continue or abandon such prosecution. Any such prosecution of
Future Improvements by Texon shall have no effect upon ownership of the Assigned
Property under this Agreement.

                                   ARTICLE 7
                            DEFAULTS AND TERMINATION

7.1 DEFAULT BY FRISBY UNDER ARTICLES 3.1 OR 3.2. Texon shall have the sole right
to terminate this Agreement by written notice to Frisby if Frisby has failed to
make all payments required pursuant to Articles 3.1(a), 3.1(b), and 3.2,
provided: (i) Texon gives Frisby written notice describing such default and
specifying the amount then due pursuant to those Articles, and (ii) Frisby fails
to cure the default within sixty (60) days after such notice has been given and
for

<PAGE>

no other reason. Frisby shall be entitled to cure the default by paying the
amount then due pursuant to those Articles.

7.2 EFFECT OF TERMINATION. Upon termination of Frisby's rights pursuant to
Article 7.1: (i) Texon shall be granted a royalty-free, fully-paid up,
non-exclusive license to make, sell, and use Protected Products; (ii) Frisby
shall immediately cease to enjoy any rights with respect to Protected Products,
and (iii) any licenses granted by Frisby or its Affiliates for the production,
marketing or sale of Protected Products shall immediately terminate. Frisby and
its Affiliates and their respective sublicensees shall have six (6) months to
use or dispose of their then-existing Protected Products in accordance with the
terms of this Agreement, which disposition shall be reported to Texon in
accordance with Article 4, accompanied by remittance in full of royalties under
Article 3.1.

7.3 RETENTION OF RIGHTS. Article 7.2 describes the only circumstances under
which Texon shall be entitled to terminate the rights of Frisby under this
Agreement. In the case of any other default by Frisby under this Agreement,
Texon shall retain the right to pursue any rights and remedies available under
this Agreement or by operation of law other than termination of this Agreement.

                                   ARTICLE 8
                    ADDITIONAL REPRESENTATIONS AND WARRANTIES

8.1 DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. Frisby acknowledges and agrees
that except as explicitly set forth herein, Texon makes no representations or
warranties of any kind or nature, either express or implied, concerning the
Assigned Property. In particular, nothing contained in this Agreement shall be
construed as (i) a warranty or representation by Texon as to the validity, scope
or enforceability or noninfringement of any Assigned Patents or (ii) the
patentability of any claim in any Assigned Patent. Texon disclaims all liability
and

<PAGE>

responsibility for any damages, including property damage, personal injury, and
consequential damages, whether or not foreseeable that may result from the
manufacture use, lease or sale of products incorporating the inventions
disclosed or claimed in the Assigned Property.

8.2 EXECUTION AND AUTHORITY. Each of the Parties, solely with respect to herself
or itself, represents and warrants that (i) this Agreement has been duly
executed and delivered by such Party and constitutes the legal, valid and
binding obligation of such Party, enforceable against such Party in accordance
with its terms, and (ii) execution, delivery and performance by such Party of
this Agreement have been duly authorized by all requisite corporate and
individual action, as the case may be, of such Party and, to the best of their
knowledge, will not violate any provision of law, any order of any court or
other agency of government, any of such Party's organizational documents, if
any, or any provision of any agreement or instrument to which such Party is
bound, or conflict, result in a breach of, or constitute (with due notice or
lapse of time or both) a default under any such agreement or instrument.

8.3 ASSIGNED PATENTS. Texon represents and warrants that (i) it has the right to
make the transfers and grant the rights herein granted free and clear of any
lien, encumbrance, restriction or, to its knowledge, any adverse claim; (ii) it
has not granted to any other person or entity any right or license with respect
to the Assigned Patents, (iii) neither it nor, to the best of its knowledge, any
entity under its direction or control, publicly used or sold any product
embodying the claims of the Assigned Patents or disclosed any claims of the
Assigned Patents in a printed publication, in each case more than one year
before the application filing date of the applicable Assigned Patent; and (iv)
to its knowledge, there are no claims or proceedings with respect to the title,
invalidity, unenforceability or infringement of the Assigned Patents.

<PAGE>

                                    ARTICLE 9
                                 CONFIDENTIALITY

9.1 NON-USE OF PROPRIETARY INFORMATION. Each Party shall use its best efforts to
maintain confidential the Proprietary Information of other Parties and shall not
make use thereof, in whole or in part, except for the express purposes
authorized in this Agreement. Except as specifically provided in this Agreement,
each of the Parties shall not communicate any portion of the Proprietary
Information of any other Party to any third party. Exceptions. No Party shall be
obligated or required to maintain in confidence any Proprietary Information of
another Party which it can demonstrate with written records: (i) is in the
public domain or known to the receiving Party prior to disclosure by the
disclosing Party; (ii) becomes known to the receiving Party from a source other
than the disclosing Party without breach of any obligation or confidence; (iii)
is or has been furnished to the disclosing Party by a third party without
restriction on the disclosing Party's right to disclose; (iv) is reasonably
necessary to be disclosed in performance of this Agreement; (v) is required to
be disclosed by law or the rules of NASDAQ or any national stock exchange
applicable to a Party; or (vi) is compelled to be disclosed by a court of law of
competent jurisdiction, provided, however, that the receiving Party shall notify
the disclosing Party in writing at least 10 days prior to any such disclosure.

9.3 RELEASE OF INFORMATION. Frisby shall be the only party with the right to
publicly release information relating to this Agreement, including but not
limited to the description of the products covered by the Agreement and the
financial terms contained herein. In the event Frisby makes public disclosure of
the execution of this Agreement, such announcement shall then be submitted to
Texon in advance of publication for review and approval. Texon shall forward any
media inquiries concerning this Agreement directly to Frisby. Subsequent press
releases that pertain to Category 2 Protected Products shall properly credit
Texon as the "co-inventor" or "co-

<PAGE>

developer" of such products, and Frisby shall provide Texon with a courtesy copy
of such press releases. In addition, Frisby may make any disclosure related to
this Agreement in its financial statements and regulatory filings that it deems
prudent without notice of any kind to Texon.

                                   ARTICLE 10
                            MISCELLANEOUS PROVISIONS

10.1 STATUS OF PARTIES. Nothing contained in this Agreement shall be deemed or
construed as creating a joint venture or partnership between the Parties. None
of the Parties shall have the power to control the activities and operations of
another and their status is, and at all times will continue to be, that of
independent contractors with respect to each other. None of the Parties shall
hold itself out as having any authority or relationship in contravention of this
Article 10.1, and no Party shall act on behalf of the other Party or enter into
any contracts, warranty, or representation as to any other matter on the behalf
of the other Party.

10.2 EFFECT OF WAIVER. No waiver whether express or implied, of any breach of
any term, condition or obligation of this Agreement shall be construed as a
waiver of any subsequent breach of that same term, condition or obligation, or
any other term, condition or obligation of this Agreement of the same or
different nature.

10.3 NOTICES. All notices or other communications which are required to be given
or may be given to the Parties pursuant to the terms of this Agreement shall be
given in writing and delivered personally or by registered or certified mail,
postage prepaid. Notice shall be deemed given on the date of delivery in the
case of personal delivery or on the delivery date as specified in the return
receipt in the case of registered or certified mail. Notices to be given to
Texon shall be addressed to Texon at the address first set forth above, with a
copy to Peabody & Arnold LLP, 50 Rowes Wharf, Boston, Massachusetts, 02110,
Attn: Donald Burnham. Copies need not be sent in the case of communication to
Texon that consist of royalty payments and reports made by

<PAGE>

Frisby in the ordinary course. Notices to be given to Frisby shall be addressed
to Frisby at the address first set forth above, with a copy to Womble, Carlyle,
Sandridge & Rice LLC, 200 West Second Street, Post Office Drawer 84,
Winston-Salem, NC, Attn: Peter Zorn. Either Party hereto may at any time, by
thirty (30) days written notice to the others, designate any other person or
address in place of those provided in this Article 10.3.

10.4 SEVERABILITY. The Parties acknowledge and agree that, should any provision
of this Agreement be determined to violate or contravene any law, such provision
shall be severed or modified to the extent necessary to comply with the
applicable law, and such modified provision and the remainder of the provisions
hereof shall continue in full force and effect.

10.5 SUCCESSORS AND ASSIGNS. None of the Parties may assign her or its rights,
duties or obligations under this Agreement without written consent from the
other Parties, which consent shall not be unreasonably withheld; provided,
however, that (i) Frisby shall be entitled to assign this Agreement to any
parent or wholly-owned subsidiary of Frisby or in connection with a merger,
consolidation, or sale of all or substantially all of Frisby's assets or equity
interests and (ii) Texon shall be entitled to assign its rights, but not its
obligations, under this Agreement upon not less than 30 days prior written
notice to Frisby. Any purported assignment in violation of this Agreement shall
be null and void.

10.6 FURTHER ASSURANCES. Each Party agrees to cooperate fully with the other
Parties and to execute such further instruments, documents and agreements and to
give such further written assurances, as may be reasonably requested by the
others to better evidence and reflect the transactions described herein and
contemplated hereby, and to carry into effect the intents and purposes of this
Agreement.

<PAGE>

10.7 MODIFICATION. Except as specifically provided otherwise herein, this
Agreement shall only be modified by written agreement of each of the Parties.

10.8 INJUNCTIVE RELIEF. The Parties acknowledge that the Assigned Property
possesses a special, unique, and extraordinary character that makes difficult
the assessment of the monetary damage which would be sustained as a result of a
breach of this Agreement, and that irreparable injury would be caused to the
non-breaching Parties by such breach. Accordingly, each of the Parties shall
have the right to seek and obtain immediate and permanent injunctive and other
equitable relief, without the necessity of posting a bond, cash or otherwise. In
the event of a breach of this Agreement, in addition to any and all rights or
remedies otherwise available at law or in equity.

10.9 HEADINGS AND CAPTIONS. The headings or captions in this Agreement are
inserted for convenience and identification only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this
Agreement or any provisions hereof.

10.10 ENTIRE AGREEMENT. The Parties agree that this Agreement contains the
entire understanding and Agreement between the Parties and supersedes all
previous communications, proposals, representations, and agreements, whether
oral or written, excepting the duly signed Confidentiality Agreement With
Specified Objective between the Parties dated May 8th, 2000. This Agreement is
binding upon the Parties and no Party shall challenge its validity. This
Agreement shall not be construed against the drafting Party solely because of
the submission of the Agreement to another Party. Each Party has had an
opportunity to consult with its own legal counsel and has not relied upon
representations or warranties of the other Parties except as set forth in this
Agreement.

<PAGE>

10.11 COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same instrument.

10.12 CHOICE OF LAW AND JURISDICTION. This Agreement shall be governed by, and
construed and enforced in accordance with the laws of the United States of
America, State of North Carolina, without regard to the conflicts of laws
principles of such State, except as to the patentability, validity,
enforceability, scope or infringement of patents and patent applications, which
shall be governed by the law of the granting jurisdiction. Any suit commenced by
either Party to enforce any provision of this Agreement, or arising out of or
based upon this Agreement, shall only be brought in the United States District
Court for the District of North of Carolina or the Court in and for the County
of Forsyth, North Carolina. Each Party hereby agrees that such courts shall have
in personam jurisdiction and venue with respect to such party, and each party
hereby submits to the in personam jurisdiction and venue of such courts.

10.13 SURVIVAL. Except as otherwise provided herein, the provisions of this
Agreement that by their sense and context are intended to survive performance by
the Parties shall also survive the expiration or termination of this Agreement.

<PAGE>

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed as of the Effective Date. TEXON UK LIMITED

BY: /s/ Peter Ericson Selkirk
   ---------------------------------------------

NAME:
        ----------------------------------------
(Print) Peter Ericson Selkirk
        ----------------------------------------
TITLE:  Director
        ----------------------------------------
DATE:   November 23, 2001
        ----------------------------------------

FRISBY TECHNOLOGIES, INC.

BY: /s/ Gregory S. Frisby
   ---------------------------------------------

NAME:
        ----------------------------------------
(Print) Gregory S. Frisby
        ----------------------------------------
TITLE:  Chairman & CEO
        ----------------------------------------
DATE:   November 23, 2001
        ----------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]