Document:

THIS AGREEMENT made this 15th day of November1999

BETWEEN:
      Douglas Sinclair, of the City of Coquitlam in the Province of British
                                Columbia, Canada
                      (hereinafter called "the Assignor")

                                            And

                     Luna Technologies International, Inc.,
                      a body corporate having an office at
                      331 Andover Park East, Suite 1050, in
                              the City of Seattle,
                                 Washington USA
                       (hereinafter called "the Assignee")

WHEREAS the Assignor is the Assignee  (hereinafter  called the "Prior Assignee")
of the  trade-marks,  pursuant to an assignment in writing dated the 15th day of
October  1999 and entered  into  between  Luna  Technologies  Inc. as  Assignor(
hereinafter  called the "Prior Assignor") and Douglas Sinclair as Prior Assignee
and which is  registered  in the USA under the  registration  numbers set out in
Schedule  "A"  hereunto  annexed all of which are used in  association  with the
Assignor's photoluminescence products.

AND WHEREAS on October15,  1999 the Assignor  entered into an agreement with the
Assignee to sell his proprietary technology including the trade-marks set out in
Schedule "A" which are used in association  of the Assignor's  photoluminescence
product technology.

AND WHEREAS the Assignor and  Assignee  wish to confirm the earlier  transfer of
the trademarks set out in Schedule "A" from the Assignor to the Assignee.

NOW,  THEREFORE,  in  consideration of the sum of Ten Dollars ($10.00) and other
good and  valuable  consideration,  the  receipt  and  sufficiency  of which the
Assignor and Assignee  acknowledge,  the Assignor confirms that it did as of the
15th day of November  1999,  sell,  assign and  transfer to the Assignee all its
right,  title and  interest  in the  trade-marks  more  particularly  set out in
Schedule "A" hereunto  annexed and the goodwill of the business  relating to the
trade-marks.

IN WITNESS  WHEREOF the Assignor and the Assignee have affixed their  respective
seals  by their  Officers  properly  authorized  in that  behalf  at the City of
Coquitlam,  in the Province of British Columbia,  Canada, the day and year first
above written.

-------------------------------
Douglas Sinclair

LUNA TECHNOLOGIES INTERNATIONAL, INC.
Per:

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

<PAGE>

     THIS IS SCHEDULE "A" ANNEXED TO THAT CERTAIN  ASSIGMENT  DATED THE 15th DAY
     OF NOVEMBER 1999 AND ENTERED INTO BETWEEN DOUGLAS  SINCLAIR AS ASSIGNOR AND
     LUNA TECHNOLOGIES INTERNATIONAL, INC. AS ASSIGNEE

TRADEMARK               SERIAL NUMBER                       DATE

LUNA                    SN 75-384915                        November 5,1997
LUNAPLAST               SN 75-384916                        November 5,1997

LUNA  TECHNOLGIES  INC.hereby  acknowledges  receiving notice of this Assignment
from Luna Technologies International Inc. and hereby consents to this Assignment
by affixing its  corporate  seal by its  Officers  properly  authorized  in that
behalf this 15th day of November 1999.

Luna Technologies Inc.
Per:

-------------------------------This Agreement Dated this 15st day of November 1999

Between:

     Luna Technologies International,  Inc., a body corporate incorporated under
     the laws of the State of Delaware, USA ("the Purchaser")

                                                      Party of the First Part

                        And

     Douglas  Sinclair  both of the City of Coquitlam in the Province of British
     Columbia, Canada ("the Covenantor")

                                                      Party of the Second Part

WHEREAS the Purchaser and the Vendor are parties to an agreement  dated the 15th
day of October 1999 for the sale of the  proprietary  technology  and trademarks
related to the  proprietary  technology  of the Vendor  (hereinafter  called the
"Sale Agreement").

AND WHEREAS it is a term of the closing of the transactions  contemplated by the
by the Sale Agreement  entered into between the Vendor and the  Covenantor  that
the Covenantor execute and deliver this Non-Competition Agreement.

1.    Non-Competition

     (i)  For a period of Five (5) years from the date  hereof,  the  Covenantor
          will not  personally,  or on behalf of any other person,  partnership,
          company,  corporation  or  other  entity,  contact  any  supplier,  or
          customer,  directly or  indirectly,  or aid,  abet or assist any other
          person  or  entity in  contacting  any  supplier  or  customer  of the
          Covenantor,  for the purpose of initiating,  engaging in or furthering
          competition  with  the  business  which  incorporates  the  use of the
          trademarks and proprietary technology purchased by the Purchaser.

     (ii) The  Covenantor,  for a period of Five (5) years from the date  hereof
          shall not accept employment with or directly or indirectly organize or
          participate in the organization of any firm, partnership, corporation,
          joint venture,  sole  proprietorship  or other business  entity within
          North America if such firm, partnership,  corporation,  joint venture,
          sole  proprietorship,  or entity is  engaged  or to be  engaged in any
          similar  business,  conduct or activity in competition to the business
          which incorporates the trademarks and proprietary technology purchased
          by the Purchaser; and:

     (iii)The Covenantor shall not, directly or indirectly,  either individually
          or as a consultant,  employee, partner, owner, officer or stockholder,
          or in any other capacity  whatsoever with respect to any person,  firm
          partnership,  corporation, joint venture, sole proprietorship or other
          business  entity within North  America,  except as a  shareholder  for
          investment  purposes holding less than a One Per Cent (1%) interest in
          a corporation  whose shares are traded on a securities  exchange or on
          an over-the-counter market, engage in or aid, assist or abet any other
          person  or  entity  to carry on,  be  engaged  in any  business  which

<PAGE>

          incorporates  the  trademarks or  proprietary  technology,  conduct or
          activity in competition to the proprietary technology purchased by the
          Purchaser, advise or act as a consultant for, lend money to, guarantee
          the debts or obligations of, or otherwise provide financial assistance
          to any person or entity in any business  incorporating  the technology
          and  trademarks,  conduct or activity in  competition  to the business
          incorporating   the  technology   and  trademarks   purchased  by  the
          Purchaser.

     (iv) The Covenantor expressly  acknowledges that the foregoing restrictions
          are reasonable in the  circumstances and acknowledges that damages are
          an  inadequate  remedy for the  Purchaser  in the event of a breach of
          this  covenant  and  therefore  agrees  that  the  Purchaser  shall be
          entitled to  injunctive  relief,  in  addition  to all other  remedies
          provided by law, for any breach of this covenant.

     (v)  Notwithstanding the foregoing, if the time limitation in the foregoing
          covenant  is at time  determined  to be  unreasonable  by a  Court  of
          competent  jurisdiction  adjudicating  upon the  validity of covenant,
          then such time  limitation  shall be  reduced to a period of Three (3)
          years.

Nothing in the foregoing shall be read or construed as a prohibition against the
Covenantor  accepting  employment  by the  Purchaser  or any  subsidiary  of the
Purchaser.

2. 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: 331 Andover  Park East,  Suite 1050 Seattle
          Washington

     (b)  If  for  the  Covenantor:  #2  Barnett  Highway,  Coquitlam,   British
          Columbia, 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  respective  address for the
purposes of this clause.

3.    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.

4.    Laws

This agreement  shall be governed by and interpreted by the laws of the State of
Washington.

IN WITNESS WHEREOF THE COVENANTOR  hereto has hereunto affixed his hand and seal
and the  Purchaser  has  affixed its  corporate  seal by its  officers  properly
authorized in that behalf the day and year first above written.
                                    )
                                    )
----------------------------------  )
Douglas Sinclair

Luna Technologies International, Inc.
Per:

==================================THIS AGREEMENT IN TRIPLICATE THIS 15th DAY OF JANUARY 2000

BETWEEN:

               LUNA TECHNOLOGIES (CANADA) LTD., a body corporate,
                duly incorporated under the laws of the Province
                               of British Columbia
                   (hereinafter referred to as "the Employer")

                                                            OF THE FIRST PART

                                       AND

                   Douglas Sinclair, of the City of Coquitlam,
                       in the Province of British Columbia
                   (hereinafter referred to as "the Employee")

                                                           OF THE SECOND PART

WHEREAS  the   Employer   carries  on  the   business  of  a   manufacturer   of
Photoluminescence products.

AND  WHEREAS  the  Employee is skilled  and  experienced  and has a  proprietary
knowledge of the photoluminescent business.

AND WHEREAS the Employer wishes to employ the Chief Executive Officer as part of
the management team required to manage and operate its business.

NOW THEREFORE  THIS AGREEMENT  WITNESSETH  that in  consideration  of the mutual
covenants and agreements  herein  contained,  the parties do hereby covenant and
agree each with the other as follows:

ARTICLE 1. APPOINTMENT AND TERM

1.1 The Employer  hereby  appoints  and retains the Employee as Chief  Executive
Officer to be part of the Employer's  management  team to manage and conduct the
day to day business  operations of the Employer.  It is agreed that all services
contracted  for by the Employer from the Employee  herein are to be performed in
Canada.  The Employee agrees to accept the position of Chief  Executive  Officer
and to be  part  of the  management  team to  conduct  the  day to day  business
operations  on behalf of the Employer,  for a term  commencing on the 1st day of
January 2000 and expiring on the 31st day of December  2000 or such earlier date
as this Agreement may be terminated, and subject to any renewals, as hereinafter
provided.  The parties hereby agree that after the 1st day of June 2000,  either
party may terminate this agreement by giving 30 days written notice to the other
party of their intention to terminate this agreement

<PAGE>

ARTICLE 2. COMPENSATION

2.1 The Employer shall pay to the Employee, in consideration for the services to
be performed by the Employee, pursuant to the terms of this Agreement:

      (i) the  sum of FIVE  THOUSAND  DOLLARS  ($5,000)  per  month  payable  in
      bi-monthly installments of TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500) each
      in each month,  the first of such  bi-monthly  payments to commence on the
      15th  day of  January  2000  and to  continue  thereafter  in  consecutive
      bi-monthly installments during the term of this agreement.

      (ii) a sum equal and in  reimbursement  for all  expenses  incurred by the
      Employee  during the currency of this agreement  related to the Employee's
      management  and operation of the business  including but without  limiting
      the generality of the foregoing, all travel expenses including the cost of
      accommodation  and meals,  all automobile  expenses  including the cost of
      gasoline,  insurance and repairs for the use of the Employee's  automobile
      while used in the  performance of the Employees  duties as Chief Executive
      Officer of the Employer,  all telephone,  cellular,  fax or  communication
      charges  incurred by the Employee in the  performance  of his duties,  all
      entertainment  charges  incurred by the Employee in the performance of his
      duties and all other  expenses or charges  incurred by the Employee in the
      performance of his duties as Chief Executive Officer. All such expenses or
      charges  shall be  reimbursed  at the end of any given  month  during  the
      currency of this  agreement  and shall be verified  and  submitted  by the
      Employee  with  copies of all bills,  invoices  or other  proof of payment
      acceptable to the Employer.

ARTICLE 3. RENEWAL

3.1 This agreement shall be automatically  renewed for a further term of six (6)
months at the expiry of the term  hereof,  with  automatic  renewals  of further
terms of six (6) months each,  unless  terminated by the parties as  hereinafter
provided.

ARTICLE 4. COMPENSATION DURING RENEWAL

4.1 Upon  renewal  of this  agreement  according  to  Article  3.1  hereof,  the
compensation to be paid to the Employee,  in  consideration  of his managing the
day to day operations of the business,  shall be such salary as is agreed to the
by the parties,  and until the parties reach  agreement on the salary to be paid
during the renewal  period;  the  Employer  shall pay to the  Employee  the same
salary as was paid during the initial six (6) months,  or the  previous  six (6)
month  period  prior to any renewal  period,  whichever  is  appropriate  in the

<PAGE>

circumstances. Upon agreement being reached, the parties shall adjust the salary
paid back to the date of  renewal.  In the event the parties are unable to agree
to the salary to be paid to the Employee during any renewal term, within 90 days
of the renewal date, this agreement shall terminate.

ARTICLE 5. DUTIES OF THE EMPLOYEE

5.1 The Employee is empowered and engaged to perform the following duties:

     (a)  the  furnishing  of all  management  services  for  the  economic  and
          efficient day to day operation of the business.

     (b)  the employment, in the name of the Employer and at its expense, of all
          employees  necessary to carry out the business of the Employer and the
          direction,   control  and   termination  of  employment  of  all  such
          employees.  Provided  however the Employee shall not hire or terminate
          any employee  without  first  notifying  the Board of Directors of the
          Employer.

     (c)  ensuring  that proper  books of account  and  records  relating to the
          business  operations of the business are kept and to have prepared and
          supply  reports of the results of the business as and when directed by
          the Board of Directors of the Employer.

     (d)  ensuring that all proper statutory,  regulatory filings or reports and
          tax returns are filed in a diligent and prompt manner to all necessary
          Governmental or regulatory bodies

     (e)  devoting such reasonable time, skill,  labor and attention as shall be
          necessary to carry out the Employee's obligations hereunder during the
          term or any renewal hereof.

     (f)  exercise  reasonable efforts to manage the day to day operations so as
          to enhance and promote the Employer's business in as profitable manner
          as possible, having due regard at all times to the instructions of the
          Board of Directors of the Employer.

     (g)  obey and carry out all lawful orders given by the Employer's  Officers
          and Board of Directors.

5.2 It is agreed and  understood by the parties  hereto that the Employee  shall
make a full time  commitment of his time and attention to the  management of the
Employer's  business,  and shall not  without  the  consent  in  writing  of the
Employer,  engage in any other new business or occupation outside of his current
business and financial interests, or become a director, manager, or agent of any
new company,  firm, or individual,  without the written  consent of the Board of
Directors first had and received.

<PAGE>

ARTICLE 6. CONTRACTS

6.1 Subject to the instructions of the Board of Directors of the Employer,  from
time to time, the Employee shall have the authority to make the usual  contracts
necessary for carrying on the Employer's business in the ordinary course.

ARTICLE 7. CONFIDENTIALITY

7.1 The Employee shall well and  faithfully  serve the Employer and use his best
efforts to promote the  interest  thereof,  and shall not  disclose  the private
affairs  of the  Employer,  or any  secret of the  Employer,  any  customers  or
suppliers of the Employer, or the financial status of the Employer, or any other
business information  concerning the business operations of the Employer, to any
person other than the Board of Directors of the Employer,  and shall not use for
his  own  purpose,  or  any  other  purpose  than  those  of the  Employer,  any
information he may acquire with respect to the Employer's business.

ARTICLE 8. ASSIGNMENT

8.1 Neither  party may assign this  Agreement  without the express prior written
consent of the other party, which may be arbitrarily withheld.

ARTICLE 9. NOTICE

9.1 Any  notice,  demand,  request or  approval  which may, or is required to be
given, pursuant to the terms of this Agreement, shall be in writing and shall be
sufficiently given or made if served personally on the Employee or a director or
officer of the Employer,  or if mailed prepaid  registered mail, and in the case
of:

            THE EMPLOYEE:
            #2 - 2773 Barnet Highway, Coquitlam, BC, V3B 1C2

            THE EMPLOYER:
            61B Fawcett Road, Coquitlam, BC, V3K 6V2

or to such other address as the parties may from time to time by written  notice
change. The date of receipt of any such notice,  demand,  request or approval if
served  personally  shall  be  deemed  the date of  delivery,  or if  mailed  as
aforesaid, the second business day following the date of mailing.

ARTICLE 10. ENUREMENT

10.1 This  Agreement  shall be  effective  as of the 1st day of January 2000 and
enure to the benefit of and be binding upon the heirs, executors, administrators
and permitted assigns of the parties hereto.

<PAGE>

IN WITNESS  WHEREOF the Employee has hereunto  affixed his hand and seal and the
Employer  has  hereunto  affixed its  corporate  seal by its  officers  properly
authorized in that behalf on the day and year above written.

-------------------------------------
Douglas Sinclair

Luna Technologies (Canada) Ltd.
Per:

-------------------------------------
Robert H. Humber

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