Document:

LUNA TECHNOLOGIES INTERNATIONAL, INC.
                                STOCK BONUS PLAN

         l.  Purpose.  The  purpose of this Stock  Bonus Plan is to advance  the
interests of Luna  Technologies  International,  Inc.  (the  "Company")  and its
shareholders,   by  encouraging  and  enabling  selected  officers,   directors,
consultants  and key employees  upon whose  judgment,  initiative and effort the
Company is largely  dependent for the  successful  conduct of its  business,  to
acquire and retain a  proprietary  interest in the Company by  ownership  of its
stock,  to keep personnel of experience and ability in the employ of the Company
and to compensate them for their  contributions to the growth and profits of the
Company and thereby  induce them to continue to make such  contributions  in the
future.

         2.   Definitions.

              A.   "Board" shall mean the board of directors of the Company.

              B.   "Committee" means the directors duly appointed to administer
                    the Plan.

              C.   "Plan" shall mean this Stock Bonus Plan.

              D.  "Bonus  Share"  shall mean the  shares of common  stock of the
Company  reserved  pursuant to Section 4 hereof and any such shares  issued to a
Recipient pursuant to this Plan.

              E.   "Recipient" shall mean any individual rendering services for
 the Company to whom shares are granted pursuant to this Plan.

         3.  Administration  of  Plan.  The  Plan  shall  be  administered  by a
committee of two or more directors appointed by the Board (the "Committee"). The
Committee shall report all action taken by it to the Board.  The Committee shall
have full and final  authority in its  discretion,  subject to the provisions of
the Plan,  to determine the  individuals  to whom and the time or times at which
Bonus  Shares shall be granted and the number of Bonus  Shares;  to construe and
interpret  the  Plan;  and to make all other  determinations  and take all other
actions deemed necessary or advisable for the proper administration of the Plan.
All such  actions  and  determinations  shall be  conclusively  binding  for all
purposes and upon all persons.

         4. Bonus  Share  Reserve.  There  shall be  established  a Bonus  Share
Reserve to which shall be credited 300,000 shares of the Company's common stock.
In the event that the shares of common stock of the Company should,  as a result
of a stock split or stock dividend or combination of shares or any other change,
or exchange for other securities by  reclassification,  reorganization,  merger,
consolidation,  recapitalization  or  otherwise,  be  increased  or decreased or
changed into or exchanged for, a different  number or kind of shares of stock or
other securities of the Company or of another corporation,  the number of shares

<PAGE>

then  remaining in the Bonus Share  Reserve shall be  appropriately  adjusted to
reflect such action.  Upon the grant of shares hereunder,  this reserve shall be
reduced by the number of shares so granted.  Distributions  of Bonus Shares may,
as the Committee shall in its sole discretion determine, be made from authorized
but unissued shares or from treasury shares.  All authorized and unissued shares
issued  as Bonus  Shares in  accordance  with the Plan  shall be fully  paid and
non-assessable and free from preemptive rights.

         5. Eligibility,  and Granting and Vesting of Bonus Shares. Bonus Shares
may be granted under the Plan to the  Company's (or the Company's  subsidiaries)
employees,  directors and officers,  and  consultants or advisors to the Company
(or its  subsidiaries),  provided  however  that  bona  fide  services  shall be
rendered  by such  consultants  or  advisors  and such  services  must not be in
connection   with  the  offer  or  sale  of  securities  in  a   capital-raising
transaction.

              The Committee, in its sole discretion, is empowered to grant to an
eligible Participant a number of Bonus Shares as it shall determine from time to
time.  Each grant of these Bonus  Shares  shall  become  vested  according  to a
schedule to be established by the Committee  directors at the time of the grant.
For  purposes  of this plan,  vesting  shall mean the  period  during  which the
recipient must remain an employee or provide  services for the Company.  At such
time as the  employment  of the  Recipient  ceases,  any shares not fully vested
shall be  forfeited  by the  Recipient  and shall be returned to the Bonus Share
Reserve. The Committee, in its sole discretion,  may also impose restrictions on
the future  transferability of the bonus shares, which restrictions shall be set
forth on the notification to the Recipient of the grant.

              The aggregate number of Bonus Shares which may be granted pursuant
to this Plan shall not exceed the amount available  therefore in the Bonus Share
Reserve.

         6. Form of Grants.  Each grant shall specify the number of Bonus Shares
subject thereto, subject to the provisions of Section 5 hereof.

              At the time of making any grant,  the  Committee  shall advise the
Recipient  by  delivery  of  written  notice,  in the form of  Exhibit  A hereto
annexed.

         7.   Recipients' Representations.

              A. The  Committee may require that, in acquiring any Bonus Shares,
the  Recipient  agree with,  and represent to, the Company that the Recipient is
acquiring  such Bonus Shares for the purpose of  investment  and with no present
intention  to  transfer,  sell  or  otherwise  dispose  of  shares  except  such
distribution by a legal  representative as shall be required by will or the laws
of any jurisdiction in winding-up the estate of any Recipient. Such shares shall

<PAGE>

be transferable  thereafter  only if the proposed  transfer shall be permissible
pursuant  to  the  Plan  and  if,  in the  opinion  of  counsel  (who  shall  be
satisfactory  to  the  Committee),  such  transfer  shall  at  such  time  be in
compliance with applicable securities laws.

              B. To effectuate Paragraph A above, the Recipient shall deliver to
the Committee,  in duplicate,  an agreement in writing, signed by the Recipient,
in form  and  substance  as set  forth in  Exhibit  B  hereto  annexed,  and the
Committee shall forthwith acknowledge its receipt thereof.

         8.  Restrictions  Upon Issuance.  A. Bonus Shares shall forthwith after
the  making of any  representations  required  by  Section  6  hereof,  or if no
representations  are required then within thirty (30) days of the date of grant,
be duly issued and transferred and a certificate or certificates for such shares
shall be issued in the  Recipient's  name.  The Recipient  shall  thereupon be a
shareholder  with respect to all the shares  represented by such  certificate or
certificates,  shall have all the rights of a  shareholder  with  respect to all
such  shares,  including  the  right to vote  such  shares  and to  receive  all
dividends  and other  distributions  (subject to the  provisions of Section 7(B)
hereof)  paid with respect to such shares.  Certificates  of stock  representing
Bonus  Shares  shall be  imprinted  with a legend to the effect  that the shares
represented thereby are subject to the provisions of this Agreement,  and to the
vesting and transfer limitations established by the Committee, and each transfer
agent for the common  stock shall be  instructed  to like effect with respect of
such shares.

              B. In the event  that,  as the  result  of a stock  split or stock
dividend or  combination  of shares or any other  change,  or exchange for other
securities,   by  reclassification,   reorganization,   merger,   consolidation,
recapitalization or otherwise, the Recipient shall, as owner of the Bonus Shares
subject to restrictions hereunder, be entitled to new or additional or different
shares of stock or securities,  the  certificate or  certificates  for, or other
evidences of, such new or additional or different shares or securities, together
with a stock power or other instrument of transfer appropriately endorsed, shall
also be imprinted  with a legend as provided in Section 7(A), and all provisions
of the Plan  relating  to  restrictions  herein  set forth  shall  thereupon  be
applicable to such new or  additional  or different  shares or securities to the
extent applicable to the shares with respect to which they were distributed.

              C. The grant of any Bonus Shares shall be subject to the condition
that if at any time the  Company  shall  determine  in its  discretion  that the
satisfaction of withholding tax or other  withholding  liabilities,  or that the
listing,  registration,  or qualification of any Bonus Shares upon such exercise
upon any  securities  exchange  or under any state or federal  law,  or that the
consent or approval of any  regulatory  body,  is  necessary  or  desirable as a
condition of, or in connection  with, the issuance of any Bonus Shares,  then in
any such event,  such exercise shall not be effective  unless such  withholding,
listing,  registration,  qualification,  consent,  or  approval  shall have been
effected or obtained free of any conditions not acceptable to the Company.

<PAGE>

              D.  Unless  the  Bonus  Shares  covered  by  the  Plan  have  been
registered with the Securities and Exchange  Commission pursuant to Section 5 of
the Securities Act of l933,  each Recipient  shall,  by accepting a Bonus Share,
represent  and agree,  for  himself and his  transferees  by will or the laws of
descent and distribution, that all Bonus Shares were acquired for investment and
not for resale or  distribution.  The person  entitled to receive  Bonus  Shares
shall,  upon request of the  Committee,  furnish  evidence  satisfactory  to the
Committee (including a written and signed representation) to the effect that the
shares of stock are being  acquired  in good  faith for  investment  and not for
resale or distribution. Furthermore, the Committee may, if it deems appropriate,
affix a legend to certificates  representing  Bonus Shares  indicating that such
Bonus  Shares  have  not  been  registered  with  the  Securities  and  Exchange
Commission and may so notify the Company's  transfer  agent.  Such shares may be
disposed of by a Recipient  in the  following  manner  only:  (l) pursuant to an
effective  registration  statement covering such resale or reoffer, (2) pursuant
to an applicable  exemption from  registration as indicated in a written opinion
of counsel acceptable to the Company, or (3) in a transaction that meets all the
requirements  of Rule l44 of the  Securities and Exchange  Commission.  If Bonus
Shares covered by the Plan have been registered with the Securities and Exchange
Commission,  no such  restrictions on resale shall apply,  except in the case of
Recipients  who  are  directors,  officers,  or  principal  shareholders  of the
Company.  Such persons may dispose of shares only by one of the three  aforesaid
methods.

         9.  Limitations.  Neither the action of the Company in establishing the
Plan,  nor any action taken by it nor by the Committee  under the Plan,  nor any
provision  of the Plan,  shall be construed as giving to any person the right to
be retained in the employ of the Company.

              Every  right of action by any  person  receiving  shares of common
stock  pursuant to this Plan against any past,  present or future  member of the
Board, or any officer or employee of the Company arising out of or in connection
with this Plan shall,  irrespective of the place where action may be brought and
irrespective of the place of residence of any such director, officer or employee
cease and be barred  by the  expiration  of one year from the date of the act or
omission in respect of which such right of action arises.

         10.  Amendment,  Suspension or  Termination  of the Plan.  The Board of
Directors may alter, suspend, or discontinue the Plan at any time.

         Unless the Plan shall  theretofore  have been  terminated by the Board,
the Plan shall  terminate  ten years after the  effective  date of the Plan.  No
Bonus Share may be granted during any suspension or after the termination of the
Plan. No amendment,  suspension,  or  termination  of the Plan shall,  without a
recipient's consent,  alter or impair any of the rights or obligations under any
Bonus Share theretofore granted to such recipient under the Plan.

<PAGE>

         11.  Governing Law. The Plan shall be governed by the laws of the State
of Delaware.

         12. Expenses of Administration.  All costs and expenses incurred in the
operation and administration of this Plan shall be borne by the Company.

<PAGE>

                                  - EXHIBIT A -

LUNA TECHNOLOGIES INTERNATIONAL, INC.
STOCK BONUS PLAN

      TO:  Recipient:  PLEASE BE ADVISED that Luna  Technologies  International,
Inc. has on the date hereof  granted to the Recipient the number of Bonus Shares
as set forth under and pursuant to the Stock Bonus Plan. Before these shares are
to be issued,  the Recipient must deliver to the Committee that  administers the
Stock Bonus Plan an agreement in duplicate, in the form as Exhibit B hereto. The
Bonus  Shares  are  issued  subject  to  the  following   vesting  and  transfer
limitations.

            Vesting:

            Number of Shares                    Date of Vesting

            Transfer Limitations:

                                       LUNA TECHNOLOGIES INTERNATIONAL, INC.

                                        By
      Date                                 its

<PAGE>

                                 - EXHIBIT B -

Luna Technologies International, Inc.
61 B Fawcett Rd.
Coquitlam, British Columbia
Canada  V3K 6V2

Gentlemen:

     I represent  and agree that said Bonus Shares are being  acquired by me for
investment and that I have no present  intention to transfer,  sell or otherwise
dispose  of such  shares,  except  as  permitted  pursuant  to the  Plan  and in
compliance with applicable  securities  laws, and agree further that said shares
are being acquired by me in accordance with and subject to the terms, provisions
and conditions of said Plan, to all of which I hereby  expressly  assent.  These
agreements   shall  bind  and  inure  to  the   benefit   of  my  heirs,   legal
representatives, successors and assigns.

            My address of record is:

            and my social security number:                              .

                                          Very truly yours,

Receipt of the above is hereby acknowledged.

                                    LUNA TECHNOLOGIES INTERNATIONAL, INC.

                                      By
Date                                      itsTHIS AGREEMENT made in triplicate on the 31st day of March 1999

BY AND BETWEEN:

      LUNA TECHNOLOGIES INC. a body corporate incorporated under the laws
      of the Province of British Columbia, Canada

            (hereinafter referred to as "the Vendor")

                                                OF THE FIRST PART

                        AND

      LUNA TECHNOLOGIES INTERNATIONAL, INC. a body corporate incorporated
      under the laws of the State of Delaware, USA

            (hereinafter referred to as "the Purchaser")

                                                OF THE SECOND PART

WHEREAS  the  Vendor   operates   and  carries  on  a   photoluminescent   sign,
photoluminescent product design and emergency wayfinding systems business.

AND  WHEREAS  the Vendor  has  incurred  significant  research  and  development
expenditures on the invention hereinafter referred to and is the assignee of all
the exclusive  right,  title and interest,  pursuant to an assignment in writing
dated the 19th day of November  1997 made  between  the Vendor as  assignee  and
Douglas  Sinclair and Kimberly Landry  (hereinafter  called the  "Inventors") as
assignors,  of proprietary  technology for a new photoluminescence  illumination
invention and process known as a  "PHOTOLUMINESCENT  LIGHT EMITTER WITH ENHANCED
PHOTOMETRIC  BRIGHTNESS  CHARACTERISTICS"   (hereinafter  referred  to  as  "the
invention"):

AND WHEREAS the Vendor is desirous of selling,  assigning and  transferring  all
its right, title and interest in the said invention and patent application based
thereon to the Purchaser.

AND WHEREAS the Purchaser is desirous of purchasing the exclusive  right,  title
and interest of the Vendor in the invention and patent application based thereon
and having the following  assigned from the Vendor to the Purchaser on the terms
and conditions herein set forth:

   o     the  patent  application  dated the 19th day of  November  1997 made by
         Kimberly Landry and Douglas  Sinclair and assigned to the Vendor on the
         19th  day of  November  1997(a  copy of  which is  attached  hereto  as
         Schedule "A"), and

WITNESSETH  THEREFORE IN CONSIDERATION OF THE MUTUAL  PROMISES,  COVENANTS,  AND
REPRESENTATIONS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS:

<PAGE>

ARTICLE I DEFINITIONS:

1.01 In this  agreement  unless  there is  something  in the  subject  matter or
   context inconsistent therewith:

      (a)"Closing Date" shall mean:

         (i)   The 3Oth day of April 1999
        (ii)  Such other earlier date as the Parties hereto may mutually agree

      (b) "Effective Date" shall mean the 31st day of March 1999

ARTICLE II - SALE OF TECHNOLOGY

2.01 The Vendor  agrees to sell and the  Purchaser  agrees to purchase as at the
Effective  Date,  at and for the price of Ninety  Thousand  Dollars USD ($90,000
USD), all of the Vendor's  right,  title and interest in the invention and which
for greater clarity but without in any way restricting the foregoing definition,
shall include:

(i)  that certain patent application dated the 19th day of November 1997 made by
     Douglas Sinclair and Kimberly Landry and assigned to the Vendor on the 19th
     day  of  November  1997  for  the   proprietary   technology   known  as  a
     PHOTOLUMINESCENT   LIGHT  EMITTER  WITH  ENHANCED  PHOTOMETRIC   BRIGHTNESS
     CHARACTERISTICS  including  all research and  development  expended on such
     technology  to the date  hereof.  The said  Douglas  Sinclair  and Kimberly
     Landry having developed the proprietary technology and having applied for a
     patent pursuant to application  number  08/979,094 filed with United States
     Patent and Trademark Office, a copy of which is appended hereto as Schedule
     "A".

The Purchaser  hereby  acknowledges  that the invention herein purchased and the
patent  application  based  thereon is being  purchased  without any warranty or
representation  from the Vendor or the  Inventors  that a patent  will issue for
such invention IN THE UNITED STATES PATENT AND TRADEMARK  OFFICE or in any other
country or  jurisdiction  and further  that such  invention  has any  commercial
viability or fitness for any particular purpose.

2.03 The Vendor's  right,  title and interest in the  invention at the Effective
Date  and  on  the  Closing  Date  shall  be  free  and  clear  of  all  claims,
encumbrances, charges and other third party rights or interests.

2.04 The  Purchaser  shall not be deemed by this  agreement to have accepted any
obligation or assumed any  obligation or  responsibility  for the payment of any
debt, obligation,  liability, claim or demand of whatsoever nature of or against
the Vendor in respect of the invention or patent application.

ARTICLE III UNDERTAKING BY THE VENDOR

The  Vendor  undertakes  that it will  not,  prior to the  Closing  Date sell or
otherwise in any way assign,  transfer,  alienate,  hypothecate or dispose of to
any person,  firm or corporation its right, title, and interest in the invention
or the patent application sold to the Purchaser.

<PAGE>

ARTICLE IV EXAMINATION AND VERIFICATION

The Purchaser shall have the right during the period from the date hereof to the
date of  closing  to  verify or cause to be  verified  the  representations  and
warranties  set out herein below,  and to examine all the  technical  documents,
records,  reports and files of the Vendor so as to satisfy the  Purchaser of the
technical and financial viability of such invention.  Any such examination shall
not  prejudice  the  Purchaser's  right with  respect to any of the  Purchaser's
rights  with  respect to any claims for breach of any such  representations  and
warranties.

ARTICLE V INTERIM OPERATION

(a)      During  the  period  from  and  including  the  Effective  Date  to and
         including the Closing Date, the Vendor shall not undertake any activity
         or do anything  which will result in the  reduction of the value of the
         invention or impair the patent application process based thereon.

ARTICLE VI TERMINATION

If prior to the Closing Date:

(a)  The  examination  and  verification by the Purchaser or on its behalf shall
     reveal  that the  representations  and  warranties  set out  herein are not
     accurate or true, or

(b)  Any  condition  which is to be fulfilled  by the Vendor  before the Closing
     Date is not so fulfilled and the Purchaser has not waived its fulfillment,

The Purchaser  shall give the Vendor  immediate  notice in writing of such fact,
giving the pertinent details known to the Purchaser in respect thereof,  and the
Closing Date shall then be postponed  for a period of Seven (7) days and if such
breach or failure  complained  of is not  remedied  within Five (5) days of such
notice,  the  Purchaser,  at its option,  within Two (2) days from the expiry of
said delay of Five (5) days, may terminate the Agreement by notice in writing to
the Vendor,  whereupon the  transaction  contemplated by this agreement shall be
cancelled  ab initio  and the  Parties  hereto  will be  reinstated  to the same
position in which they were prior to the date hereof;  Provided however, that in
the event the Purchaser does not then so terminate the  Agreement,  the decision
not to terminate the Agreement  shall not prejudice the  Purchaser's  right with
respect to any claims for breach of the said representations and warranties.

ARTICLE VII DELIVERY AT CLOSING DATE

Unless the Agreement  shall have been  terminated by the Purchaser  prior to the
Closing Date pursuant to ARTICLE VI hereof:

(a)   The Purchaser shall:

         (i)  deliver  to the  Vendor on the date for  closing  at the place for
         closing,  a promissory note in the sum of Ninety  Thousand  Dollars USD
         ($90,000 USD),  which sum shall be due and payable without  interest on
         or before the 30th day of June 2000. The Purchaser shall have the right
         to prepay any or the entire said sum without notice or bonus.

<PAGE>

         (ii)  deliver  to the  Vendor on the date for  closing at the place for
         closing  a  certificate  signed  by the  Directors  that all  necessary
         corporate  action has been taken to  approve,  confirm,  and adopt this
         agreement  and to authorize the execution and delivery of all documents
         herein and the performance of acts and consummation of all transactions
         on the part of Purchaser to be done or performed hereunder.

(a)   The Vendor shall:

         (i) have  taken all  necessary  corporate  action by the  Directors  to
         approve, ratify, confirm and adopt this agreement, and to authorize the
         execution and delivery of all documents  herein and the  performance of
         all acts and consummation of all transactions on the part of the Vendor
         to be done or performed hereunder.

         (ii) deliver to the Purchaser at the Closing Date a certificate  signed
         by the Directors to the effect that the following  representations  and
         warranties which the Vendor is hereby making to the Purchaser, are true
         and correct as at the Closing Date.

         (iii) deliver to the Purchaser an  assignment in  registerable  form of
    Patent  Application   08/979,094   satisfactory  to  the  Purchaser,   which
    assignment  has  been  acknowledged,   approved  and  consented  to  by  the
    Inventors.

ARTICLE VIII THE DIRECTORS OF THE VENDOR WARRANT AND REPRESENT:

(a)  That the Vendor was duly incorporated and is a valid and subsisting company

(b)  That the Vendor has the  corporate  power to sell the  invention and assign
     the patent application based thereon set out in Schedule "A" herein.

(c)  That no other person,  firm or company has any right,  title or interest in
     the patent  application filed by Douglas Sinclair and Kimberly Landry,  for
     the proprietary  technology and invention known as a PHOTOLUMINESCENT LIGHT
     EMITTER WITH ENHANCED PHOTOMETRIC BRIGHTNESS CHARACTERISTICS and the Vendor
     is currently the developer and exclusive  owner of the aforesaid  invention
     which is more particularly described in Schedule "A".

ARTICLE IX REPRESENTATIONS FOR PURCHASER'S BENEFIT

All of the  representations  and warranties  hereby made by the Vendor and to be
made by the Vendor at the Closing Date and all of conditions contained herein to
be  performed  by the  Vendor  shall  be for  the  Purchaser's  benefit  and the
Purchaser  shall have the right at any time to waive the same without  prejudice
to any of its recourses with respect to any other breaches by the Vendor. All of
the representations and warranties contained herein and made by the Vendor shall
survive the Closing Date.

ARTICLE X REDUCTION IN PURCHASE PRICE FOR BREACH

It is understood and agreed that any recourse in favor of the Purchaser  arising
from:

<PAGE>

      (a) Any loss and claims the cause of which  originated prior or that might
      be sustained  after the Closing Date, as a result of  undisclosed  claims,
      charges  and  liabilities  generally,  to the extent that said loss is not
      covered  by  insurance,  and  as a  result  of any  misrepresentations  or
      warranties by the Vendor herein,

shall be  exercised  against  but not  limited  to the  balance  (if any) of the
purchase  price and shall  operate in reduction of same  provided  that,  in the
event any such  claim  shall be made or any loss  shall be  sustained,  then the
Purchaser shall give the Vendor notice in writing of such claim or loss, and the
Vendor shall be afforded  reasonable  facilities for investigating such claim or
loss, and the Purchaser shall act in accordance  with the Vendors  instructions,
if the Vendors  instructions  are communicated to the Purchaser in ample time to
enable the Purchaser to take  appropriate  action,  or, failing  receipt of such
instructions,  as the Purchaser may deem expedient in the circumstances;  and if
the  Purchaser  then pays any  amount in  settlement,  including  penalties  and
interest,  if  any,  and  for  legal  and  accounting  services  in  respect  of
negotiations for settlement thereof or by way of costs upon or in respect of the
contestation  thereof,  and the Vendor shall not have paid the  Purchaser,  upon
demand,  the  purchase  price  to  be  paid  to  the  Vendor  shall  be  reduced
proportionately  by the amount that the sum paid by the  Purchaser  bears to the
value of the invention and patent  application sold,  transferred or assigned at
the date of this agreement.

ARTICLE XI CLOSING

The  closing  shall take place at the  Vendor's  offices at  Vancouver,  British
Columbia,  at 10:00 a.m. on April 30th, 1999 or such other date as may be agreed
upon by the Parties.

ARTICLE XII NOTICE

Any  notice to be given  hereunder  shall be  deemed to have been duly  given if
reduced to writing,  signed by or on behalf of the Party  giving such notice and
delivered by hand or mailed by registered mail, postage prepaid and addressed as
follows:

(a)  If for the Purchaser,  at: 4714 Ballard Avenue NW #300 Seattle,  Washington
     USA
(b)  If for the Vendor, at: #2 - 2773 Barnet Highway, Coquitlam BC, Canada

and if mailed,  such notice  shall be deemed to have been  received on the fifth
business day next following the date of mailing.  Any Party may, by notice given
in accordance with the foregoing,  change their address for the purposes of this
clause.

ARTICLE XIII SUCCESSORS AND ASSIGNS

This  agreement  shall inure to the  benefit of and be binding  upon the Parties
hereto and their respective legal representatives, successors and assigns.

ARTICLE XIV LAWS

This Agreement  shall be governed by and interpreted in accordance with the laws
of the State of Washington, USA.

<PAGE>

ARTICLE XVI CONFIDENTIALITY

In the event the transaction  contemplated  hereby, for any reason whatsoever is
cancelled,  the  Purchaser  shall  then be under  the  obligation  to treat  all
information  that the  Purchaser  might then have  acquired  in  relation to the
Vendor's  proprietary  technology,  invention and patent application as strictly
confidential.

ARTICLE XVII COSTS

It is understood  and agreed that each of the Parties hereto shall pay their own
costs and expenses relating to the transaction contemplated herein including all
fees and expenses of their accountants and counsel.

IN WITNESS  WHEREOF THE PARTIES HERETO HAVE AFFIXED THEIR  RESPECTIVE  CORPORATE
SEALS BY THEIR  OFFICERS  PROPERLY  AUTHORIZED IN THAT BEHALF,  THE DAY AND YEAR
FIRST ABOVE WRITTEN.

LUNA TECHNOLOGIES INTERNATIONAL, INC.
Per:

---------------------------------------

LUNA TECHNOLOGIES INC.
Per:

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]