<PAGE>

                                                                   EXHIBIT 10.21

                               SERVICES AGREEMENT


THIS AGREEMENT MADE IN TRIPLICATE THIS 1st DAY OF November 1996.



BETWEEN

                             AQUATIC CELLULOSE LTD., a body corporate
                             incorporated under the laws of the Province
                             of British Columbia.
                             (hereinafter called the Company or "ACL")

                                                        OF THE FIRST PART

                             - and -

                             GARY JOHN ACKLES, City of Vernon, in the
                             Province of British Columbia
                             (hereinafter called Ackles)

                                                        OF THE SECOND PART



                    WHEREAS THE COMPANY is engaged in manufacturing, marketing,
sales, research and development in the Aquatic Timber Harvesting Salvaging and
processing industry and

                    WHEREAS Ackles is the Founder and President of the Company
and is an important component to ACL's future success and

                    WHEREAS ACL is desirous of the continued services of Ackles
as President in accordance with terms and conditions hereinafter set out;
<PAGE>

NOW THEREFORE THIS AGREEMENT WITNESSETH in consideration of the mutual covenants
and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree, each with the other as follows and in recognition of the
intention of Ackles to sell a large percentage of Aquatic Cellulose Ltd. in
order to implement a public share offering, which will substantially reduce
Ackles' holdings in ACL the following contract is drawn and duly executed as of
this day, to protect the future interest of Ackles and the Company.


1.0      PRESIDENT'S ROLE


1.1      Ackles covenants and agrees to provide services on a first priority
         basis to the Company for the commercialization of his Aquatic Timber
         Harvesting Technology, and to undertake in accordance with Board
         direction and policies, the duties and responsibilities of Company
         principals.


1.2      In this capacity Ackles agrees to act as company President and Chief
         Executive Officer to:

         - maintain corporate direction
         - to formulate and implement the activities and policies of the company
           as established by the board of directors.
         - to make unilateral decisions which are in the best interest of ACL as
           required to facilitate the function of ACL within the parameters set
           out by the board of directors
         - to act as a director on the board of directors
         - to oversee manufacturing, consulting, sales, contracting, research
           and development activities for the commercialization of the Aquatic
           Timber Harvesting Technology.


1.3      All technical assistance performed under this Agreement will be in the
         best interest of the company subject to the presidents discretion and
         where relevant company board decisions.
<PAGE>

2.0      COMPENSATION

2.1      The companies will compensate Ackles for 1800 hours services at a rate
         of $6000.00 per month, payable in arrears bi-monthly. The fees to be
         paid by the company to Ackles for the services provided are inclusive
         of any allowance for overtime wages required beyond the company's
         normal working day, or the company's normal working week, for the
         activities of ACL. Extra hours worked beyond the 1800 hrs/year will be
         compensated for as straight time off.


2.2      ACL shall be responsible for the remittance of all applicable taxes and
         insurance required by law including, but not limited to, Federal and
         Provincial Income Tax, Canada Pension Plan contributions, Unemployment
         Insurance, Provincial Worker's Compensation.

2.3      A Corporate office of Aquatic Cellulose Ltd. will be maintained in
         Vernon during the term of Ackles' agreement. If office is relocated
         this will be considered a breach of contract and Section 5.2 will
         apply.

2.4      The company will provide a three year contract to employ Ackles as
         company president, at a rate of $72,000/ year in year 1, with an
         escalating salary of a minimum of 10% for years 2 and 3.

2.5      As a result of Ackles commitment to ACL. Ackles is unable to continue
         ongoing development of his Ackles Robotic Arm outside the regime of
         ACL's corporate structure. So it is then agreed that all technological
         advancements made to Ackles Robotic Arm and arm related technologies
         including hardware, software, hydraulic design, barge, etc. All things
         required to allow the Ackles Robotic Arm to work efficiently will be
         considered part of Ackles patents including future patents upgrades or
         copywrite protections that may be necessary regarding Ackles Robotic
         Arm. ACL also agrees to maintain Ackles Patents and all costs related
         to Patent filings and upgrades as Ackles Compensation package cannot
         support such costs.

2.6      Ackles gives exclusive rights to Aquatic Cellulose Ltd. For the use of
         his Ackles Robotic Arm and technologies and arm related technologies in
         under water forest industry only. New technologies and uses for Ackles
         Robotic Arm and arm related technologies, will be
<PAGE>

         first offered to ACL by Ackles. If such technologies are utilized or
         marketed by the Company, Ackles will receive consideration and suitable
         renumeration in the form of cash settlements, royalties and/or shares
         to be approved by the board of directors and Ackles as representative
         of normal compensatory rates. If company chooses not to utilize or do
         not have the ability, due to financial constraints or otherwise to
         utilize such technologies, Ackles will have the exclusive rights to
         technology and its utilization within 30 days of offer.

2.7      A company vehicle and vehicle expenses will continue to be provided to
         Ackles by the company as long as Ackles is employed with the Company.

2.8      Ackles will occupy a position on the Board of Directors as long as he
         is employed by the Company.


3.0      CONFIDENTIALITY


3.1      It is understood and agreed that all information obtained during the
         term of this agreement shall be treated by Ackles and the Company as
         confidential and will not be used in any manner detrimental to Company
         interests, nor disclosed to any party except in Company interests, and
         with the consent of Ackles.

3.2      All notes, records, working papers, tiles, research material or
         literature developed by Ackles for the Company in connection with his
         duties are considered to be the property of the Company.


4.0      SATISFACTORY PERFORMANCE


4.1      Ackles and the Company shall be responsible for, and shall give
         adequate attention to, the faithful presentation and completion of all
         matters pursuant to this Agreement.


5.0      TERMINATION

5.1      This Agreement may be terminated by Ackles giving (3) three months
         notice in writing to the Company or by the Company giving three (3)
         months notice in writing to Ackles.
<PAGE>

         During such notice period, Ackles agrees to provided 425 hours full
         time services to the Company on the same terms and conditions as
         preceded the termination notice.

5.2      If the board of directors, for any reason votes Ackles out as President
         and/or Chief Executive Officer, or modified the terms of this
         agreement, then Ackles has an option to be bought down by the company
         to a 5% holding at a minimum price of $.50/share or market value
         whichever is greater, over 3 years in equal payments per year with the
         1st payment due 30 days following termination. A severance package will
         also be provided to Ackles by the Company in this event which is
         equivalent to 24 months of the most recent salary and benefits earned
         by Ackles prior to termination, to be paid within 6 months, in 6 equal
         payments to Ackles by the Company.


6.0      RESIGNATION

6.1      Voluntary Resignation - Gary Ackles has the option to leave ACL at the
         time of contract expiry with a 90 days severance package. Upon such a
         voluntary resignation Ackles has the option to be bought down to 5% of
         company shareholdings at a minimum price of $.50/share or market value
         whichever is greater over 3 years in equal payments per year with the
         1st payment due 30 days following resignation.


7.0      NON-COMPETITION

7.1      For a period of two (2) years following termination of the contract
         Ackles will not directly or indirectly, either as a proprietor,
         shareholder, director, officer, employer, manager, or employee provide
         his professional services to any individual, firm or organization
         offering services of consulting engineering, surveying or planning in
         competition with the Company.


8.0      CONTRACT RENEWAL


8.1      90 days prior to contract expiry a new contract will be agreed upon by
         the directorship of all termination provisions outlined in this
         agreement will automatically apply.
<PAGE>

9.0      EFFECTIVE DATE

9.1      Notwithstanding the date of execution of this Agreement, the effective
         date for the commencement of Ackles' services for ACL under this
         agreement shall be November 1, 1996.

10.0     ALTERATIONS/ADDITIONS

10.1     If, at any time during the continuance of the Agreement, the parties
         hereto deem it necessary or expedient to make any alterations or
         additions to this Agreement, they may do so by means of a written
         approval between the Company board and Ackles which shall be
         supplemental hereto and form a part hereof.


11.0     COMPLETE AGREEMENT

11.1     The parties hereto agree that there are no representation, warranties
         or conditions affecting this Agreement other than expressed herein and
         that this Agreement contains the complete Agreement between the parties
         hereto and supersedes any prior agreements, whether written or verbal.


11.2     The validity of this contract will be legally and financially
         maintained by ACL.


12.0     MUTUAL COVENANTS

         The parties hereto covenant and agree to enter into and execute such
         further documents, contracts and assurances and to do all such things
         as may be deemed necessary by counsel for any of them, in order to give
         full force and effect to the true intent and meaning of this Agreement.
<PAGE>

         If any part of this agreement is deemed invalid it does not affect the
         validity of the remaining provisions outlined in this agreement.


13.0     HEADINGS, CAPTIONS, ETC


13.1     The captions, paragraphs or section numbers and headings or marginal
         notes appearing in this Agreement are inserted only as a matter of
         convenience and in no way define, limit or describe the scope or intent
         of this Agreement, not any part thereof.


         IN WITNESS WHEREOF, the parties hereto have hereunto set their
respective hands and seals all on the day and in the year first above written.




                                     ________________________________
                                     AQUATIC CELLULOSE LTD.


_________________________________
WITNESS:


                                     ________________________________
                                     GARY ACKLES


________________________________________________________________________________