Document:

EXHIBIT 4.32

                                                                  Warrant 585-XX

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED  (THE  "ACT"),  OR UNDER ANY STATE  SECURITIES  LAWS,  AND MAY NOT BE
OFFERED,  SOLD,  TRANSFERRED,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR AN OPINION
OF COUNSEL  SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM SUCH REGISTRATION
IS AVAILABLE.

THE  SECURITIES   REPRESENTED  BY  THIS   CERTIFICATE  ARE  SUBJECT  TO  CERTAIN
RESTRICTIONS  ON  TRANSFER  SET  FORTH  HEREIN  AND IN THAT  CERTAIN  SECURITIES
PURCHASE AGREEMENT THEREFOR BETWEEN THE COMPANY AND THE ORIGINAL HOLDER HEREOF.

                              VALUESTAR CORPORATION

                             STOCK PURCHASE WARRANT

         THIS  CERTIFIES  THAT, for value  received,  VALUESTAR  CORPORATION,  a
Colorado corporation (the "Company"),  hereby grants to ____________  ("Holder")
the right to purchase from the Company up to _________________ (_____) shares of
the Common Stock of the Company (the "Warrant Shares"), subject to the following
terms and conditions:

         1. Series.  This Warrant is one of a duly authorized series of warrants
of the Company  (which are  identical  except for the  variations  necessary  to
express the identification numbers, names of the holder, number of common shares
issuable upon exercise  thereof and warrant issue dates)  designated as its "585
Warrants."

         2. Term.  This Warrant may be exercised in whole at any time during the
period  from the date of issuance of this  Warrant  until 5:00 p.m.,  California
time, on March 24, 2003 (the "Exercise Period").

         3.  Purchase   Price.   The  purchase  price  for  each  Warrant  Share
purchasable  hereunder  shall be Five and 85/100  United  States  Dollars  (U.S.
$5.85) (the "Warrant Exercise Price").

         4. Exercise of Warrant. The purchase rights represented by this Warrant
may be exercised by the Holder,  in whole or in part,  at any time and from time
to time before the end of the  Exercise  Period by  surrender of this Warrant at
the principal office of the Company in Oakland, California (or such other office
or agency of the Company as may be designated by notice in writing to the Holder
at the address of the Holder  appearing on the books of the  Company),  together
with the Notice of Exercise annexed hereto duly completed and executed on behalf
of the Holder  accompanied  by  payment  in full of the amount of the  aggregate
Warrant  Exercise Price. The Warrant Exercise Price shall be made, at the option
of the Holder,  (i) in immediately  available  funds in United States Dollars or
(ii) if the primary  market for the Warrant  Shares  during the ten (10) Trading
Days (as defined in Section 6 below) immediately  preceding the date of exercise
is the National  Association of Securities Dealers Automated  Quotation System -
National Market System or a national  securities  exchange  registered under the
Exchange Act of 1934, as

                                      -1-

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amended,  cancellation of Warrant Shares,  valued at the average "Closing Price"
(as defined in Section 6 below) of the  Company's  Common Stock for the ten (10)
consecutive   Trading  Days   immediately   preceding   the  date  of  exercise.
Certificates  for shares  purchased  hereunder  shall be delivered to the Holder
within thirty (30) business days after the date on which this Warrant shall have
been exercised as aforesaid, but Holder shall be deemed the record owner of such
Warrant  Shares as of and from the close of  business  on the date on which this
Warrant shall be surrendered.

         5. Fractional Interest.  The Company shall not be required to issue any
fractional shares on the exercise of this Warrant.

         6. Redemption of Warrants.  The Company may elect, by written notice as
provided herein (the "Company Notice"), to redeem, pro rata among all holders of
585 Warrants,  all outstanding 585 Warrants including this Warrant,  in whole or
in part, on a date (the "Redemption  Date") fixed by the Company and which shall
be a Trading Day (as defined below) during which a registration  statement under
the Securities Act of 1933, as amended, covering the Warrant Shares is effective
at a price of $.01 per Warrant Share then exercisable under such outstanding 585
Warrants (the "Redemption  Price") at such time as the average Closing Price (as
defined  below)  of the  Company's  Common  Stock  for the ten (10)  consecutive
Trading Days (as defined  below)  immediately  preceding the date of the Company
Notice equals or exceeds  Fifteen Dollars  ($15.00),  (adjusted for stock splits
and combinations);  provided, however, that this Warrant may be exercised at any
time  prior to 5:00 p.m.,  California  time,  on the  business  day  immediately
preceding the Redemption  Date.  Thereafter,  all rights to acquire such Warrant
Shares shall terminate.

         For purposes  hereof,  (i) the term "Trading Day" shall mean any day on
which  securities  are traded on the  applicable  securities  exchange or in the
applicable  securities market; and (ii) the term "Closing Price" in respect of a
Trading Day shall mean the reported closing bid prices on the principal national
securities  exchange  on which  the  Common  Stock of the  Company  is listed or
admitted to trading  or, if not listed or  admitted  to trading on any  national
securities exchange, on the National Association of Securities Dealers Automated
Quotation System - National Market System.

         7. Warrant Confers No Rights of Shareholder.  Holder shall not have any
rights as a shareholder  of the Company with regard to the Warrant  Shares prior
to actual exercise resulting in the purchase of the Warrant Shares.

         8.  Investment  Representation.  Neither  this  Warrant nor the Warrant
Shares issuable upon the exercise of this Warrant have been registered under the
Securities  Act of 1933,  as  amended  (the  "Securities  Act"),  or  under  any
applicable  state  securities  laws.  Holder  acknowledges by acceptance of this
Warrant that (a) it has acquired this Warrant for investment and not with a view
toward distribution; (b) it has a pre-existing personal or business relationship
with the Company,  or its  executive  officers,  or by reason of its business or
financial  experience  it has the  capacity  to  protect  its own  interests  in
connection with the transaction; and (c) except as so notified to the Company in
writing,  it is an  accredited  investor as that term is defined in Regulation D
promulgated  under the  Securities  Act.  Holder agrees that any Warrant  Shares
issuable upon exercise of this Warrant will be acquired for  investment  and not
with a view  toward  distribution;  and  acknowledges  that to the  extent  such
Warrant  Shares will not be registered  under the  Securities Act and applicable
state securities laws, that such Warrant Shares may have to be held indefinitely
unless they are  subsequently  registered or qualified  under the Securities Act
and  applicable  state  securities  laws;  or,  based on an  opinion  of counsel
reasonably  satisfactory to the Company, an exemption from such registration and
qualification  is  available.  Holder,  by  acceptance  hereof,  consents to the
placement of the following  restrictive  legends,  or similar  legends,  on each
certificate  to be  issued  to  Holder by the  Company  in  connection  with the
issuance of such Warrant Shares:

                                      -2-

<PAGE>

         "THE  SECURITIES   REPRESENTED  BY  THIS   CERTIFICATE  HAVE  NOT  BEEN
         REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR QUALIFIED
         UNDER  ANY  STATE  SECURITIES  LAW,  AND MAY NOT BE SOLD,  TRANSFERRED,
         ASSIGNED OR  HYPOTHECATED  UNLESS  THERE IS AN  EFFECTIVE  REGISTRATION
         STATEMENT  UNDER  SUCH ACT  COVERING  SUCH  SECURITIES,  OR THE  HOLDER
         RECEIVES  AN  OPINION  OF  COUNSEL  FOR THE  HOLDER  OF THE  SECURITIES
         SATISFACTORY  TO  THE  COMPANY   STATING  THAT  SUCH  SALE,   TRANSFER,
         ASSIGNMENT  OR  HYPOTHECATION  IS  EXEMPT  FROM  THE  REGISTRATION  AND
         PROSPECTUS  DELIVERY  REQUIREMENTS  OF SUCH  ACT AND THE  QUALIFICATION
         REQUIREMENTS UNDER STATE LAW."

         "THE SECURITIES  REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
         RESTRICTIONS ON TRANSFER SET FORTH IN THAT CERTAIN SECURITIES  PURCHASE
         AGREEMENT  THEREFOR  BETWEEN THE  CORPORATION  AND THE ORIGINAL  HOLDER
         HEREOF."

         9.  Reservation  of Shares.  The Company agrees at all times during the
Exercise  Period to have authorized and reserved,  for the exclusive  purpose of
issuance and delivery  upon  exercise of this  Warrant,  a sufficient  number of
shares of its Common Stock to provide for the exercise of the rights represented
hereby.

         10. Adjustment for  Re-Classification  of Capital Stock. If the Company
at any time during the Exercise  Period shall,  by  subdivision,  combination or
re-classification of securities,  change any of the securities to which purchase
rights under this Warrant exist under the same or different number of securities
of any class or classes,  this Warrant  shall  thereafter  entitle the Holder to
acquire  such  number and kind of  securities  as would have been  issuable as a
result of such change with respect to the Warrant  Shares  immediately  prior to
such subdivision,  combination or re-classification.  If shares of the Company's
common stock are subdivided into a greater number of shares of common stock, the
purchase  price for the Warrant  Shares upon  exercise of this Warrant  shall be
proportionately   reduced  and  the  Warrant  Shares  shall  be  proportionately
increased; and conversely,  if shares of the Company's common stock are combined
into a smaller number of common stock shares, the price shall be proportionately
increased, and the Warrant Shares shall be proportionately decreased.

         11. Public Offering Lock-Up. In connection with any public registration
of this Company's securities,  the Holder (and any transferee of Holder) agrees,
upon the request of the Company or the underwriter(s) managing such underwritten
offering of the Company's securities, not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of this Warrant,  any
of the shares of Common  Stock  issuable  upon  exercise of this  Warrant or any
other  securities  of the Company  heretofore  or  hereafter  acquired by Holder
(other  than those  included  in the  registration)  without  the prior  written
consent of the Company and such underwriter(s), as the case may be, for a period
of time not to exceed 30 days before and one hundred eighty (180) days after the
effective date of the registration;  provided,  however, that Jim Stein and each
person that is an officer, director, or beneficial owner of five percent (5%) or
more of the  outstanding  shares of any class of  capital  stock of the  Company
enters into such an  agreement.  Upon  request by the  Company,  Holder (and any
transferee of Holder) agrees to enter into any further agreement in writing in a
form reasonably satisfactory to the Company and such underwriter(s). The Company
may impose stop-transfer  instructions with respect to the securities subject to
the  foregoing  restrictions  until the end of said 180-day  period.  Any shares
issued  upon  exercise  of  this  Warrant  shall  bear  an  appropriate   legend
referencing this lock-up provision.

                                      -3-

<PAGE>

         12. Assignment. With respect to any offer, sale or other disposition of
this Warrant or any underlying  securities,  the Holder will give written notice
to the Company prior thereto,  describing  briefly the manner thereof,  together
with a written opinion of such Holder's counsel,  to the effect that such offer,
sale or other distribution may be effected without registration or qualification
(under any applicable federal or state law then in effect). Furthermore, no such
transfer shall be made unless the transferee meets the same investor suitability
standards set forth in Section 8 of this Warrant.  Promptly upon  receiving such
written  notice  and  reasonably  satisfactory  opinion,  if so  requested,  the
Company,  as promptly as practicable,  shall notify such Holder that such Holder
may sell or otherwise dispose of this Warrant or the underlying  securities,  as
the  case  may be,  all in  accordance  with the  terms  of the  written  notice
delivered  to the Company.  If a  determination  has been made  pursuant to this
Section  12 that  the  opinion  of  counsel  for the  Holder  is not  reasonably
satisfactory  to the Company,  the Company  shall so notify the Holder  promptly
after such determination has been made. Each Warrant thus transferred shall bear
the same legends  appearing on this  Warrant,  and  underlying  securities  thus
transferred shall bear the legends required by Section 8. The Company may impose
stop-transfer instructions in connection with such restrictions.  Subject to any
restrictions on transfer described  elsewhere herein, the rights and obligations
of the Company and the Holder of this Warrant  shall be binding upon and benefit
the successors,  assigns,  heirs,  administrators and transferees of the parties
hereto.

         13.  Notice.  Any  notice,   demand,  consent  or  other  communication
hereunder  shall be in writing  addressed  to the other  party at its  principal
office or, in respect  of  Holder,  as its  address as shown on the books of the
Company, or to such other address as such party shall have theretofore furnished
by like notice,  and either served  personally,  sent by express,  registered or
certified first class mail, postage prepaid, sent by facsimile transmission,  or
delivered by reputable commercial courier. Such notice shall be deemed given (i)
when so  personally  delivered,  or (ii) if mailed as  aforesaid,  five (5) days
after  the  same  shall  have  been  posted,  or  (iii)  if  sent  by  facsimile
transmission, as soon as sender receives written or telephonic confirmation that
the message has been  received  and such  facsimile  is followed the same day by
mailing by prepaid first class mail, or (iv) if delivered by commercial courier,
upon receipt.

         14.  Governing  Law. This Warrant shall be governed by and construed in
accordance  with the laws of the State of  California,  applicable  to contracts
between  California  residents entered into and to be performed  entirely within
the State of California.

         15.  Attorneys' Fees. If any action at law or in equity is necessary to
enforce or interpret the terms of this Warrant,  the  prevailing  party shall be
entitled to reasonable  attorneys' fees, costs and  disbursements in addition to
any other relief to which such party may be entitled.

         16. Descriptive Headings. The headings used herein are descriptive only
and for the convenience of identifying provisions,  and are not determinative of
the meaning or effect of any such provisions.

         IN WITNESS WHEREOF,  the Company has caused this Warrant to be executed
by its duly authorized officer this 24th day of March, 2000.

                                                  VALUESTAR CORPORATION

                                                  /s/ JAMES I. STEIN
                                                  James Stein, President and CEO

                                      -4-

<PAGE>

                               NOTICE OF EXERCISE
                          COMMON STOCK PURCHASE WARRANT

To:      VALUESTAR CORPORATION

         (1) The  undersigned  hereby elects to purchase ______ shares of Common
Stock of ValueStar  Corporation,  pursuant to the terms of the attached Warrant,
and tenders herewith payment in full of the purchase price for such shares.

         (2) In exercising  this Warrant,  the  undersigned  hereby confirms and
acknowledges  that the shares of Common Stock are being acquired  solely for the
account  of the  undersigned  and not as a  nominee  for any  other  party,  for
investment,  and that the undersigned will not offer,  sell or otherwise dispose
of any such shares of Common  Stock  except  under  circumstances  that will not
result in a violation of the  Securities  Act of 1933, as amended,  or any state
securities laws.

         (3) Please issue a certificate representing said shares of Common Stock
in the name of the undersigned.

         (4)  Please  issue a new  Warrant  for the  unexercised  portion of the
attached Warrant in the name of the undersigned.

         Date: _________________, 2000

                                                              (Name)

                                                              (Signature)

                                                              (Print Address)

                                      -5-EXHIBIT 10.18

                              VALUESTAR CORPORATION
                      NON-QUALIFIED STOCK OPTION AGREEMENT

THIS NON-QUALIFIED STOCK OPTION AGREEMENT ("Agreement") is made and entered into
effective  as of the  28th  day of  January,  2000,  by  and  between  VALUESTAR
CORPORATION,  a  Colorado  corporation  (the  "Company")  and  Robert  Sick (the
"Optionee").

                                   BACKGROUND

A. The Company has  determined to reward and to provide  incentives to those who
are primarily  responsible for the operations of the Company and for shaping and
carrying  out the  long-range  plans of the Company and aiding in its  continued
growth and financial success.

B. In furtherance of these  purposes,  the Board of Directors of the Company has
authorized the grant to Optionee of a stock option to purchase certain shares of
the common stock,  par value $.00025 per share, of the Company  ("Common Stock")
by resolution dated January 28, 2000.

C.  The  Company  and  Optionee  wish to  confirm  the  terms,  conditions,  and
restrictions of this option.

For and in consideration of the premises, the mutual covenants contained herein,
and other good and valuable consideration, the parties hereto agree as follows:

                                    ARTICLE 1

                          GRANT AND EXERCISE OF OPTION

1.1 GRANT OF  OPTION.  Subject  to the  terms,  restrictions,  limitations,  and
conditions  stated herein,  the Company hereby grants to Optionee an option (the
"Option") to purchase 345,000 shares of Common Stock (the "Option Shares").  The
date first  written above shall be the date on which the Option has been granted
(the "Grant Date").

1.2 EXERCISE OF THE OPTION (a) The Option may be  exercised  with respect to all
or any portion of the vested  Option Shares at any time during the Option Period
(as defined  below) by the delivery to the Company,  at its  principal  place of
business,  of (i) a written  notice of exercise  which shall be delivered to the
Company no earlier  than  thirty (30) days and no later than ten (10) days prior
to the date upon which  Optionee  desires to exercise  all or any portion of the
Option (the "Exercise  Date");  (ii) a certified check payable to the Company in
the amount of the Exercise Price (as defined below)  multiplied by the number of
Option  Shares  being  purchased  (the  "Purchase  Price")  OR with the  advance
approval of the  Company,  by  delivery  of a number of shares of Common  Stock,
which have been held by Optionee  for at least six months,  having a fair market
value,  as of the date the Option is  exercised,  at least equal to the Purchase
Price OR with the advance  approval of the Company by a certified  check payable
to the  Company in an amount less than the  Exercise  Price and by delivery of a
number of shares of Common Stock,  which have been held by Optionee for at least
six months,  having a fair market value, as of the date the Option is exercised,
at least equal to the balance of the Purchase Price OR with the advance approval
of the  Company by Optionee  advising  the  Company,  at the time this Option is
exercised,  to withhold

<PAGE>

from exercise  under the Option the  appropriate  number of Option  Shares,  the
aggregate  fair  market  value of which on the date of exercise of the Option is
equal to the aggregate cash purchase price of the Option Shares being  exercised
and purchased  under the Option,  and such  withholding  shall  constitute  full
payment for the  non-withheld  Option  Shares issued upon exercise OR such other
consideration  as the Board of Directors may specifically  authorize;  and (iii)
except as permitted in Paragraph  1.2(b) below, a certified check payable to the
Company  in the  amount of all  withholding  tax  obligations,  if any  (whether
federal,  state or local),  imposed on the Company by reason of the  exercise of
the Option,  or if  applicable  the  Withholding  Election  described in Section
1.2(b). Upon acceptance of such notice,  receipt of payment in full, the Company
shall cause a  certificate  representing  the shares of Common Stock as to which
the Option has been exercised (less any withheld  Option Shares,  if applicable)
to be issued and delivered to the Optionee.

(b) In lieu of paying  the  withholding  tax  obligation,  if any,  in cash,  as
described in Section  1.2(a)  (iii),  the  Optionee may elect,  with the advance
approval  of the  Company,  to have the actual  number of shares  issuable  upon
exercise of the Option reduced by the smallest  number of whole shares of Common
Stock which,  when multiplied by the fair market value of the Common Stock as of
the date the Option is  exercised,  is  sufficient  to satisfy the amount of the
withholding  tax  obligations  imposed on the Company by reason of the  exercise
thereof  (the  "Withholding  Election").  The  Optionee  may take a  Withholding
Election only if all of the following conditions are met:

         (i) the  Withholding  Election must be made by electing the Withholding
         Election  in the  written  notice of  exercise;  and by  executing  and
         delivering to the Company a properly  completed  Notice of  Withholding
         Election; and

         (ii) any Withholding  Election made will be irrevocable;  however,  the
         Company may, in its sole discretion,  disapprove and not give effect to
         any Withholding  Election at its discretion or due to its cash position
         or based on any other  regulatory or statutory factor in its reasonable
         judgment.

1.3 EXERCISE  PRICE.  The exercise price for each share of Common Stock shall be
Seven Dollars ($7.00) (the "Exercise Price").

1.4 TERM AND TERMINATION OF OPTION.  Except as otherwise  provided  herein,  the
term of the  Option  ("Option  Period")  shall  commence  on the Grant  Date and
terminate on January 27, 2005. Subject to paragraph 1.5 below, this Option shall
become  exercisable  (vest)  based on the  passage of services to the Company in
accordance with the following vesting schedule:

         20,000 options shares shall vest on June 30, 2000
         25,000 options shares shall vest on September 30, 2000
         30,000 options shares shall vest on December 31, 2000
         22,500 options shares shall vest on March 31, 2001
         22,500 options shares shall vest on June 30, 2001
         22,500 options shares shall vest on September 30, 2001
         22,500 options shares shall vest on December 31, 2001
         22,500 options shares shall vest on March 31, 2002
         22,500 options shares shall vest on June 30, 2002
         22,500 options shares shall vest on September 30, 2002
         22,500 options shares shall vest on December 31, 2002
         22,500 options shares shall vest on March 31, 2003
         22,500 options shares shall vest on June 30, 2003
         22,500 options shares shall vest on September 30, 2003
         22,500 options shares shall vest on December 31, 2003

                                       2

<PAGE>

Once the right to  purchase  shares has  accrued  and  vested,  such  shares may
thereafter  be  purchased at any time,  or in part from time to time,  until the
termination  date of this Option,  subject to the  provisions  of Paragraph  1.7
below.  In no case may this Option be  exercised  for a fraction of a share.  No
shares shall vest after  termination of services to the Company unless otherwise
agreed in writing.

Upon the  expiration of the Option Period as set forth above,  this Option,  and
all unexercised  rights granted to the Optionee  hereunder shall terminate,  and
thereafter be null and void.

1.5 ACCELERATION OF VESTING. In the event of a merger, sale or reorganization of
the Company with or into any other  corporation or corporations or a sale of all
or substantially all of the assets or outstanding stock of the Company, in which
transaction the Company's stockholders immediately prior to such transaction own
immediately after such transaction less than 50% of the equity securities of the
surviving  corporation  or its  parent,  all  Option  Shares  that have not been
terminated in accordance with this agreement,  that will become vested within 48
months  of the  closing  date of such  merger,  sale or  reorganization  will be
accelerated.  In the  event  of a merger  of the  Company  with or into  another
corporation,  this outstanding  option may be assumed or an equivalent option or
right may be substituted by such successor corporation or a parent or subsidiary
of such successor corporation.  For the purposes of this paragraph,  this Option
shall be considered  assumed if,  following the merger,  the Option  confers the
right to purchase or receive,  for each Option  Share  immediately  prior to the
merger, the consideration (whether stock, cash, or other securities or property)
received  in the merger by  holders  of Common  Stock for each share held on the
effective  date of the  transaction  (and if the holders are offered a choice of
consideration,  the type of consideration chosen by the holders of a majority of
the outstanding  shares).  If such  consideration  received in the merger is not
solely common stock of the  successor  corporation  or its Parent,  the Board of
Directors of the Company  may,  with the consent of the  successor  corporation,
provide for the  consideration  to be received upon the exercise of this Option,
for each Option Share, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger.

1.6 RIGHTS AS  STOCKHOLDER.  Optionee,  or, if  applicable,  any  Transferee (as
defined in Section 3.12 (c)) shall have no rights as a stockholder  with respect
to any shares covered by the Option until a stock  certificate for the shares is
issued in Optionee's or Transferee's  name. No adjustment to the Option shall be
made  pursuant to Section 3.1 hereof for  dividends  paid or declared on or with
respect to Common Stock in cash,  securities  other than Common Stock,  or other
property, for which the record date is prior to the date of exercise hereof.

1.7 EARLY  TERMINATION OF OPTION.  The Option Period shall terminate on the date
of the first to occur of the following:

         (a) January 27, 2005:

         (b)  Disability  or Death as provided by this  subparagraph  (b).  This
         Option shall  terminate and no further  options  shall vest  thereafter
         upon Optionee's  death or disability and any vested options at the time
         of such death or disability  shall no longer be  exercisable  after the
         expiration  of twelve (12) months from the date of death or  disability
         of the Optionee.

                                       3

<PAGE>

         (c) If Optionee's  services as an employee is terminated for no reason,
         or for any reason  (voluntarily or otherwise)  other than disability or
         death,  then no further  options shall vest  thereafter and this Option
         shall  terminate  and no longer be  exercisable  six months  after such
         termination.  If Optionee shall die within six months after termination
         the  remaining  vested  portion  shall  terminate on the earlier of the
         expiration  of the  Option  Period or twelve  months  after the date of
         death.

         (d) the date immediately  preceding the consummation of the dissolution
         or liquidation of the Company. The Company will use its best efforts to
         provide  written notice to Optionee of such  dissolution or liquidation
         or like  transaction,  at least (30) days prior to the  closing of such
         transaction  to permit  Optionee to  exercise  the Option to the extent
         vested. In no event will te option be exercisable  beyond expiration of
         the Option Period.

                                    ARTICLE 2

                     RESTRICTION ON OPTION AND OPTION SHARES

2.1  RESTRICTIONS  ON  TRANSFER  OF  OPTION.  The  Option  evidenced  hereby  is
non-transferable other than by will or the laws of descent and distribution, and
shall be  exercisable  during the lifetime of Optionee  only by Optionee (or, in
the event of Optionee's death or disability, by a permitted Transferee).

2.2  LOCK-UP  PROVISION.  In  connection  with any  public  registration  of the
Company's securities, the Optionee (and any transferee of Optionee) agrees, upon
the  request of the Company or the  underwriter(s)  managing  such  underwritten
offering of the Company's securities, not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise  dispose of this Option,  any
of the shares of Common Stock issuable upon exercise of this Option or any other
securities of the Company  heretofore or hereafter  acquired by Optionee  (other
than unrestricted  securities  acquired in the open market and those included in
the  registration)  without  the prior  written  consent of the Company and such
underwriter(s),  as the case  may be,  for a period  of time not to  exceed  one
hundred  eighty  (180) days from the  effective  date of the  registration  (the
"Lock-Up Period"). Upon request by the Company,  Optionee (and any transferee of
Optionee) agrees to enter into any further reasonable  agreement in writing in a
form  reasonably   satisfactory   to  the  Company  and  such   underwriter(s)in
furtherance of such lock-up. The Company may impose  stop-transfer  instructions
with respect to the securities  subject to the foregoing  restrictions until the
end of said 180-day period. Any shares issued upon exercise of this Option shall
bear an  appropriate  legend  referencing  this lock-up  provision (the "Lock-Up
Legend").

                                    ARTICLE 3

                               GENERAL PROVISIONS

3.1 CHANGE IN CAPITALIZATION.  If the number of outstanding shares of the Common
Stock shall be increased or decreased by a change in par value, split-up,  stock
split,  reverse  stock  split,  reclassification,  distribution  of common stock
dividend, or other similar capital adjustment,  an appropriate  adjustment shall
be made by the Board of  Directors  in the number and kind of shares as to which
the

                                       4

<PAGE>

Option, or the portion thereof then unexercised, shall be or become exercisable,
such that  Optionee's  proportionate  interest shall be maintained as before the
occurrence  of the event.  The  adjustment  shall be made without  change in the
total  price  applicable  to the  unexercised  portion  of the Option and with a
corresponding  adjustment in the Exercise Price.  No fractional  shares shall be
issued or made subject to the Option in making such adjustment.  All adjustments
made by the Board of Directors under this Section shall be final,  binding,  and
conclusive.

3.2 LEGENDS.  Each  certificate  representing  the Option Shares  purchased upon
exercise of the Option  shall  (unless a  registration  statement  covering  the
Option Shares is in effect) be endorsed  with the following  legend and Optionee
shall not make any transfer of the Option shares  without first  complying  with
the restrictions on transfer described in such legend:

                             TRANSFER IF RESTRICTED

         THE SECURITIES  EVIDENCED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (THE "SECURITIES ACT") OR
         SIMILAR  STATE   SECURITIES   LAWS   APPLICABLE   TO  SUCH   SECURITIES
         (COLLECTIVELY THE "ACTS") AND MAY NOT BE SOLD,  TRANSFERRED,  ASSIGNED,
         OR  HYPOTHECATED  UNLESS (1) THERE IS AN EFFECTIVE  REGISTRATION  UNDER
         SUCH  ACTS  COVERING  SUCH  SECURITIES,  (2)  THE  TRANSFER  IS MADE IN
         COMPLIANCE  WITH RULE 144  PROMULGATED  UNDER THE  SECURITIES  ACT,  OR
         SIMILAR  STATE  SECURITIES  LAW,  OR (3) THE  COMPANY  HAS  RECEIVED AN
         OPINION OF COUNSEL,  REASONABLY  SATISFACTORY  TO THE COMPANY,  STATING
         THAT SUCH SALE,  TRANSFER,  ASSIGNMENT OR  HYPOTHECATION IS EXEMPT FROM
         THE REGISTRATION REQUIREMENTS OF THE ACTS.

Optionee agrees that the Company may also include any other legends  required by
applicable federal or state securities laws.

3.3 GOVERNING LAWS. This Agreement shall be construed, administered and enforced
according  to the laws of the State of  California,  excluding  that body of law
dealing with conflicts of law.

3.4 SUCCESSORS. This Agreement shall be binding upon and inure to the benefit of
the heirs,  legal  representatives,  successors,  and  permitted  assigns of the
parties.

3.5  NOTICE.  Except  as  otherwise  specified  herein,  all  notices  and other
communications  under this Agreement  shall be in writing and shall be deemed to
have been given if  personally  delivered or if sent by  registered or certified
United States mail, return receipt requested,  postage prepaid, addressed to the
proposed  recipient at the last known  address of the  recipient.  Any party may
designate  any other  address to which notices shall be sent by giving notice of
the address to the other parties in the same manner as provided herein.

3.6 SEVERABILITY. In the event that any one or more of the provisions or portion
thereof  contained in this Agreement shall for any reason be held to be invalid,
illegal,  or  unenforceable  in any respect,  the same shall not  invalidate  or
otherwise  affect any other  provisions of this  Agreement,  and this  Agreement
shall be  construed  as if the invalid,  illegal or  unenforceable  provision or
portion thereof had never been contained herein.

                                       5

<PAGE>

3.7 ENTIRE  AGREEMENT.  This Agreement  expresses the entire  understanding  and
Agreement  of the  parties  with  respect to the  subject  matter  hereof.  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.

3.8 VIOLATION. Any transfer,  pledge, sale, assignment,  or hypothecation of the
Option or any portion  thereof made in violation of the terms of this  Agreement
shall be void and without effect.

3.9 HEADINGS.  Paragraph  headings used herein are for  convenience of reference
only and shall not be considered in construing this Agreement.

3.10 SPECIFIC PERFORMANCE.  In the event of any actual or threatened default in,
or breach of, any of the terms, conditions and provisions of this Agreement, the
party or parties  who are  thereby  aggrieved  shall have the right to  specific
performance  and injunction in addition to any and all other rights and remedies
at law or in equity, and all such rights and remedies shall be cumulative.

3.11 NO EMPLOYMENT  RIGHTS CREATED.  The grant of the Option hereunder shall not
be construed  as giving  Optionee  the right to  continued  employment  with the
Company.

3.12 CERTAIN  DEFINITIONS.  The  capitalized  terms listed below are used herein
with the meaning thereafter ascribed:

          (a)  "Disability"  means (1) the  inability of Optionee to perform the
         duties of  Optionee's  employment  with the  Company due to physical or
         emotional incapacity or illness, where such inability is expected to be
         of  long-continued  and  indefinite  duration or (2) Optionee  shall be
         entitled to (i) disability retirement benefits under the federal Social
         Security Act or (ii) recover  benefits  under any long-term  disability
         plan or policy  maintained  by the Company.  In the event of a dispute,
         the determination of Disability shall be made by the Board of Directors
         and shall be supported  by advice of a physician  competent in the area
         to which such Disability relates.

         (b) "Fair Market Value" means of the  applicable  prices  selected from
         the following  alternatives  for the date as of which Fair Market Value
         is to be  determined  as quoted in the Wall Street  Journal (or in such
         other reliable  publication as the committee,  in it's discretion,  may
         determine  to rely upon):  (i) if the common stock is listed on the New
         York Stock  Exchange,  the mean of highest and lowest  sales prices per
         share  of  the  Common   Stock  as  quoted  in  the  NYSE  -  Composite
         transactions listing for such or each date, (ii) if the common Stock is
         not listed on such  exchange,  the mean of the highest and lowest sales
         prices  per share of  Common  stock for such or each date on (or on any
         composite  index  including)  the principal  United  States  Securities
         Exchange  registered  under the 1934 Act on which the  Common  Stock is
         listed,  or  (iii)  if the  Common  Stock  is not  listed  on any  such
         exchange,  the mean of the highest and lowest sales prices per share of
         the Common  Stock for such or each date on the National  Associates  of
         Securities Dealers Automated Quotations Systems or any successor system
         then in use ("NASDAQ"). If there are no such sales price quotations for
         the date as of which Fair Market  Value is to be  determined  but there
         are such sales price quotations  within a reasonable period both before
         and after such date,  then Fair  Market  Value shall be  determined  by
         taking a weighted  average of the means  between the highest and lowest
         sales  prices per share

                                       6

<PAGE>

         of the Common Stock as so quoted on the nearest  date  before,  and the
         nearest  date after,  the date as of which Fair  Market  Value is to be
         determined.  The average should be weighted inversely by the respective
         numbers of trading  days  between the selling  dates and the date as of
         which Fair Market Value is to be determined. If there are no such sales
         price  quotations  on, or within a  reasonable  period  both before and
         after, the date as of which Fair Market Value is to be determined, then
         Fair Market  Value of the Common  Stock  shall be the mean  between the
         bonafide  bid and asked  prices per share of Common  Stock as so quoted
         for such date on NASDAQ,  or if none, the weighted average of the means
         between such bonafide bid and asked prices on the nearest  trading date
         before,  and the nearest trading date after,  the date as of which Fair
         Market  Value is to be  determined,  if both such  dates  are  within a
         reasonable  period. If the Fair Market Value of the Common Stock cannot
         be determined on the basis set forth in this definition for the date as
         of which Fair Market Value is to be determined,  the Committee shall in
         good faith  determine the Fair Market Value of the Common Stock on such
         date.  Fair Market  Value  shall be  determined  without  regard to any
         restriction,  other than a restriction  which, by its terms, will never
         lapse.

         (c) "Transferee"  means the estate, or the executor or administrator of
         the estate, of a deceased Optionee,  or the personal  representative of
         an Optionee suffering a Disability.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year
first set forth above.

VALUESTAR CORPORATION

BY: /s/ JAMES STEIN
ITS: President

ATTESTED:

BY: /s/ MICHAEL KELLY
ITS: Controller

ACCEPTED:

/s/ ROBERT A. SICK
ROBERT SICK

                                       7

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