PATENT SUB-LICENSE AGREEMENT, DATED JANUARY 1, 2002,

                  BETWEEN LASER DESIGN INTERNATIONAL, LLC AND

                              CRYSTALIX USA GROUP













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                                           LDI/CUSA PATENT SUB-LICENSE AGREEMENT



                               LDI / CRYSTALIX USA

                          PATENT SUB-LICENSE AGREEMENT



         This Agreement by and between Laser Design International,  LLC ("LDI"),

a California  limited liability  company  (hereinafter  "Licensor"),  on the one

hand, and CRYSTALIX USA ("CUSA"),  a corporation  organized in the United States

(hereinafter  "Licensee")  is entered into as of (OCTOBER 1, 2001)  (hereinafter

the "Effective Date").



         WHEREAS  LDI has  acquired  from  United  Distillers  &  Vintners  (ER)

Limited,  a  corporation   organized  under  the  laws  of  the  United  Kingdom

(hereinafter  "Distillers"),  certain sole and  exclusive  rights in the certain

patents listed in Exhibit A to this Agreement;



         WHEREAS  LDI has  acquired  all  rights in  United  States  Patent  No.

5,637,244 from its predecessor company, Podarok International, Inc.;



         WHEREAS  CUSA  desires  to  obtain a  non-exclusive  license  under the

Licensed  Patents  and LDI desires to grant to CUSA a  non-exclusive  license to

these patents according to the terms set forth below;



         NOW THEREFORE,  in view of the above premises and the following  mutual

covenants and promises, the parties hereto agree as follows:



                                    ARTICLE I



                                   DEFINITIONS



1.1      "The  UDV  Patents"  shall  mean  United States Patent No. 5,206,496 to

Clement et al. (the "US 5,206,496 Patent") issued on or about April 27, 1993 and

the foreign counterparts to the US 5,206,496 patent, as listed in Exhibit A.



1.2      "The  US  5,637,244  Patent"  shall  mean  the United States Patent No.

5,637,244  to Erokhin  issued on or about June 10, 1997 and  assigned to Podarok

International,  Inc.,  which has since merged into Laser  Design  International,

LLC.



1.3      "The Licensed  Patents" shall mean, together, the "UDV Patents" and the

"US 5,637,244 Patent".



1.4      "Net  Sales"  shall  mean  the  sale,  lease,  or  other disposition of

Decorative  Products by  Licensee  and its  Affiliates,  reduced by any units of

Decorative  Products  returned to and accepted by Licensee or its Affiliates for

which the purchase  price of such units has been refunded in full.  For sales of

licensed products to an Affiliate,  sister company, parent company,  controlling

company,  subsidiary,  or entity otherwise related to the Licensee  (hereinafter

"Related  Company),  the higher of the Related Company's  purchase or sale price

for each item will be included in Net





CONFIDENTIAL





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Sales;  provided however that the Net Sales to such Related Company shall not be

recognized  for  royalty  calculations  until sold by the  Related  Company to a

non-Related  Company and shall then be recognized as a sale at the higher of the

Related Company's purchase or sale price.



1.5      "Laser Subsurface Engraving Machine" shall mean any laser marking

device whose  construction or method of operation falls within the claims of the

Licensed Patents.



1.6      "Laser Subsurface Engraving Product" shall mean objects that contain

internal  decorative  or  indicative  images  that  have been  created  inside a

transparent medium with a Laser Subsurface  Engraving  Machine,  as described in

the claims of the Licensed Patents.



1.7      "Decorative Product" or "Decorative Products" shall mean all Laser

Subsurface  Engraving  Products made and/or sold by Licensee  under the terms of

this  Agreement  which are Laser  Subsurface  Engraving  Products  that,  in the

absence of this  Agreement,  would  infringe  one or more claims of the Licensed

Patents, when made, use, or sold. This shall specifically include products which

should be reasonably  expected by Licensee to be re-sold into a nation where one

of the Licensed  Patents  remains valid and  enforceable  as to any claim.  This

shall further be specifically  limited to Laser  Subsurface  Engraving  Products

which fall within the "Decorative  Field of Use," as that term is defined in the

November 1995 United Distillers - LDI Patent License Agreement.



1.8      "Giftware Market Segments" means Products that are sold in the

specialty  advertising ("ASP"), ASI premium,  Museum,  Award, Trophy,  Corporate

Gift,  Nonwearable  Jewelry,  Personalized Gift, Giftware "Cubes",  and Souvenir

market  segments,  including sales of such product to the Retail Market Segment.

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