Document:

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                                                                     Exhibit 4.6

                    SETTLEMENT AGREEMENT AND GENERAL RELEASES

         This SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASES ("Agreement") is
made as of this 10th day of June, 2003, by and between Robert Moore ("Moore")
and NDMS Investments, L.P., a Nevada limited partnership ("NDMS"), on the one
hand, and QT-5, Inc., a Delaware corporation ("QT-5"), SBI-USA, LLC ("SBI-USA")
and Shelly Singhal ("Singhal")(Singhal and SBI-USA being collectively referred
to herein as "SBI"), on the other hand, with reference to the following facts
and definitions:

                                R E C I T A L S:

     A. QT-5 is the successor to Quicktest-5, Inc. and Moneyzone.com, Inc.

     B. SBI is an investor in QT-5, and is desirous of entering into this
Agreement in furtherance of its interests as an investor and in order to obtain
the releases herein.

     C. Devenshire Management Corp ("Devenshire"), Sunset Holdings International
Ltd. ("Sunset"), Alliance Financial Network, Inc. a Nevada corporation
("Alliance"), Chess Management Group LLC ("Chess"), Dale Affonso ("Affonso"),
Christopher Ewing ("Ewing"), and Stephen Radusch ("Radusch") are collectively
referred to herein as the "Consenting Parties").

     D. QT-5, on the one hand, and NDMS and Moore, on the one hand, are entering
into a Settlement Agreement and General Releases of even date herewith (the
"Other Agreement"), which the Consenting Parties have the power to accept
pursuant to and under the terms and conditions set forth therein.

     E. NDMS has loaned funds to QT-5 pursuant to various promissory notes (the
NDMS Notes").

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     F. Moore and QT-5 are parties to that certain Consulting Agreement dated as
of January 1, 2003 (the "Moore Consulting Agreement").

     G. At various times, Moore has received from QT-5 certain shares of QT-5's
common stock (the "Moore Shares").

     H. At various times, NDMS has received from QT-5 certain shares of QT-5's
common stock (the "NDMS Shares").

     I. QT-5 and Devenshire are parties to that certain Bridge Loan Promissory
Note dated as of September 29, 2002 (the "Devenshire Note").

     J. QT-5 and Alliance are parties to that certain Bridge Loan Promissory
Note dated as of September 29, 2002 (the "Alliance Note").

     K. QT-5 and Affonso are parties to that certain Promissory Note dated as of
January 24, 2003 (the "Affonso Note").

     L. QT-5 and Sunset are parties to that certain Consulting Agreement dated
as of June 25, 2002 (the "Sunset Consulting Agreement").

     M. QT-5 and Ewing are parties to those certain Consulting Agreements dated
as of December 1, 2002 and January 1, 2003 (the "Ewing Consulting Agreements").

     N. QT-5 and Radusch are parties to that certain Consulting Agreement dated
as of January 23, 2003 (the "Radusch Consulting Agreement").

     O. At various times, Bossung, Alliance and Chess have, directly or through
related entities, (including family trusts) received from QT-5 shares of QT-5
common stock (collectively, the "Bossung Shares").

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     P. At various times, Affonso has, directly or through related entities,
received from QT-5 shares of QT-5 common stock (the "Affonso Shares").

     Q. At various times, Sunset and Sanders have, directly or through related
entities, received from QT-5 shares of QT-5 common stock (the "Sunset Shares").

     R. At various times, Ewing has, directly or through related entities,
received from QT-5 shares of, and options to purchase shares of, QT-5 common
stock (the "Ewing Shares").

     S. At various times, Radusch has, directly or through related entities,
received from QT-5 shares of, and options to purchase shares of, QT-5 common
stock (the "Radusch Shares").

     T. Moore, NDMS and the Consenting Parties contend that QT-5 has materially
breached its obligations to them and that SBI and their respective directors,
officers, agents, and/or representatives have engaged in wrongful acts that have
caused harm to Moore, NDMS and the Consenting Parties.

     U. QT-5 and SBI contend that NDMS, Moore and the Consenting Parties have
materially breached their obligations to QT-5 and that they engaged in wrongful
acts that have caused harm to SBI.

     V. The contentions in Paragraphs T and U are disputed.

     W. NDMS and Moore, on the one hand, and QT-5 and SBI, on the other hand,
(collectively, the "Parties") are each desirous of fully and forever amicably
resolving and settling their Claims, disputes and differences, on the terms and
conditions set forth herein. The Parties are also desirous of resolving Claims,
disputes and differences between SBI, on the one hand, and the Consenting
Parties (and related persons and entities) on the other hand.

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     X. As used herein, the term "Claims" shall have its broadest possible
meaning and shall include, without limitation: any and all manner of action or
actions, cause or causes of action, suits, proceedings, debts, liabilities,
claims, calls, accounts, accountings, demands, obligations, costs, expenses,
sums of money, controversies, damages, reckonings, and liens of every kind and
nature whatsoever, whether known or unknown, suspected or unsuspected,
contingent or liquidated, in personam or in rem, legal or equitable, statutory
or administrative, which the holder of such Claim has or at any time heretofore
had or may have had, by reason of anything whatsoever occurring, done, omitted
or suffered to be done prior to the date of this Agreement, whether accrued or
accruing before, on or after the date of this Agreement.

     NOW, THEREFORE, in reliance upon and in consideration of the mutual
covenants, releases, agreements and conditions contained herein, and subject to
the provisions and terms of this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which hereby are acknowledged by
each and all of the Parties, the Parties each agree as follows:

     1. EFFECTIVENESS. This Agreement shall become binding upon execution by all
of the Parties ("Effective Date"), whether in counterpart or upon single
instrument, and shall become fully effective immediately thereupon subject only
to the terms and conditions set forth herein. The provisions of Paragraph 4
hereof shall be binding upon Consenting Parties and inure to the benefit of the
Consenting Parties (and their respective releasees) upon their delivery of
notice to SBI and QT-5 that they consent to be bound by the provisions of
Paragraph 4 hereof.

     2. PAYMENT. Immediately upon execution of this Agreement, SBI shall pay to
NDMS the total sum of One Hundred Sixty Eight Thousand Dollars ($168,000) free
and clear of all liens, claims, encumbrances, security interests or equities.
The payment will be made by two

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Cashier's Check(s) payable to "Christensen Miller Client Trust Account" and
delivered to NDMS' counsel at the address set forth below. The first Cashier's
Check shall be in the amount of $122,000, and shall be delivered immediately
upon execution, but no later than 5:00 p.m on Tuesday, June 10, 2003; the second
Cashier's Check shall be in the amount of $46,000 and shall be delivered no
later than 11:00 a.m on Wednesday, June 11, 2003. If the Cashier's Checks are
not delivered timely (time being of the essence), or if they are not paid upon
presentment, this Agreement and the Other Agreement shall be null and void and
of no further effect. The payment contemplated hereunder is being made (a) in
consideration of the releases granted hereunder, and the mutual promises between
NDMS and Moore, on the one hand, and SBI, on the other hand, contained herein,
and (b) in order to induce NDMS and Moore to enter into the Other Agreement.

     3. GENERAL RELEASES - PARTIES.

        (a) RELEASE OF NDMS AND MOORE BY SBI.

     Except for the promises, covenants and obligations created by or under this
Agreement, SBI, on behalf of themselves and their respective parents,
subsidiaries, affiliates, directors, officers, members, managers, predecessors,
successors, assigns, heirs, executors and administrators, do hereby absolutely
fully and forever release, relieve, waive, relinquish and discharge Moore and
NDMS and their respective directors, officers, parents, subsidiaries, members,
managers, partners, predecessors in interest, divisions, affiliates, agents,
attorneys, assigns, heirs, executors and administrators from any and all Claims
which have been, will be or could have been asserted, directly or indirectly,
against them or any of them arising out of or related to any fact, matter or
thing whatsoever, from the beginning of time to the present,

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including, without limitation: (1) any and all Claims arising out of or related
to the NDMS Notes; (2) any and all Claims arising out of or related to the NDMS
Shares; (3) any and all Claims arising out of or related to the Moore Consulting
Agreement; (4) any and all Claims relating to QT-5; (5) any and all claims
arising out of any business relationship between QT-5 and any releasee; and (6)
any and all Claims for fraud, misfeasance, malfeasance, negligence, breach of
duty, wrongful interference, securities violations, advice given or not given.

        (b) RELEASE OF SBI BY MOORE AND NDMS.

     Except for the promises, covenants and obligations created by or under this
Agreement, NDMS and Moore do hereby absolutely, fully and forever release,
relieve, waive, relinquish and discharge SBI and their respective members,
managers, predecessors in interest, divisions, agents, attorneys, assigns,
heirs, executors and administrators, from any and all Claims arising out of or
related to any fact, matter or thing whatsoever, from the beginning of time to
the present, including, without limitation any and all Claims for fraud, usury,
misfeasance, malfeasance, negligence, breach of duty, wrongful interference,
securities violations, advice given or not given. Notwithstanding the foregoing,
nothing in the foregoing or in this Agreement shall release, relinquish or
waive: (1) the Other Agreement; or (2) any Claims carved out from the releases
given in the Other Agreement

     (c) The Parties hereby covenant that they shall not purport to assign or
transfer or hypothecate, expressly, impliedly, or by operation of law, any Claim
released in Subparagraphs 3(a) or 3(b) above. The Parties further covenant not
to commence, maintain or suffer to be maintained, against any releasee, any
Claim released in Subparagraphs 3(a) or 3(b) above, and the Parties represent
and warrant that they shall take all necessary action to dismiss any action,

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suit or proceeding against any releasee based upon or constituting a Claim
released in Subparagraphs 3(a) or 3(b) above. A breach of these covenants may be
specifically enforced, and the parties agree that, in the event of such breach,
the wronged party may obtain injunctive relief in any court of competent
jurisdiction to enforce these covenants, in addition to any other remedy to
which he or it may be entitled.

          4. GENERAL RELEASES - CONSENTING PARTIES.

             (a) RELEASE OF CONSENTING PARTIES BY SBI.

     Except for the promises, covenants and obligations created by or under this
Agreement, SBI, on behalf of itself and its parents, subsidiaries, affiliates,
members, managers, predecessors in interest, divisions, affiliates, agents,
attorneys, assigns, heirs, executors and administrators, does hereby absolutely
fully and forever release, relieve, waive, relinquish and discharge Consenting
Parties and their respective directors, officers, parents, subsidiaries,
members, managers, partners, successors, predecessors in interest, divisions,
affiliates, agents, attorneys, assigns, heirs, executors and administrators from
any and all Claims which have been, will be or could have been asserted,
directly or indirectly, against them or any of them arising out of or related to
any fact, matter or thing whatsoever, from the beginning of time to the present.

     (b) RELEASE OF SBI BY CONSENTING PARTIES. Except for the promises,
covenants and obligations created by or under this Agreement, Consenting Parties
hereby absolutely, fully and forever release, relieve, waive, relinquish and
discharge SBI and its members, managers, partners, predecessors in interest,
divisions, affiliates, agents, attorneys, assigns, heirs, executors and
administrators, from any and all Claims arising out of or related to any fact,
matter or thing whatsoever, from the beginning of time to the

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present. Notwithstanding the foregoing, nothing in the foregoing or in this
Agreement shall release, relinquish or waive: (1) the Other Agreement; or (2)
any Claims carved out from the releases given in the Other Agreement.

     (c) The Parties and Consenting Parties hereby covenant that they shall not
purport to assign or transfer or hypothecate, expressly, impliedly, or by
operation of law, any Claim released in Subparagraphs 4(a) or 4(b) above. The
Parties and Consenting Parties further covenant not to commence, maintain or
suffer to be maintained, against any releasee, any Claim released in
Subparagraphs 4(a) or 4(b) above, and the Parties represent and warrant that
they shall take all necessary action to dismiss any action, suit or proceeding
against any releasee based upon or constituting a Claim released in
Subparagraphs 4(a) or 4(b) above. A breach of these covenants may be
specifically enforced, and the Parties agree that, in the event of such breach,
the wronged party may obtain injunctive relief in any court of competent
jurisdiction to enforce these covenants, in addition to any other remedy to
which he or it may be entitled.

     (d) The provisions of this Paragraph 4 are conditioned upon Consenting
Parties' execution and delivery to QT-5 and SBI, within ten (10) business days
of the Effective Date, of the consent attached as exhibit A to this Agreement.
As each Consenting Party executes and delivers its or his consent, such consent
shall be effective as to such Consenting Party and shall inure to the benefit of
such Consenting Party and his or its respective releasees.

     5. WAIVER. In connection with the releases set forth in Paragraphs 3 and 4,
the Parties each acknowledge that they are aware that they or their attorneys
may hereafter discover facts different from or in addition to the facts which
they now know or believe to be true with respect to the subject matter of this
Agreement. Nonetheless, it is their intention hereby fully,

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finally, absolutely and forever to settle and release any and all matters
described in the preceding paragraph hereof which exist, may exist or may
heretofore have existed between them and, in furtherance of such intention, the
Releases herein given shall be and will remain in effect notwithstanding the
discovery of any additional or different facts relating to the subject matter of
this Agreement. Therefore, the Parties each acknowledge that they have had the
opportunity and ability to consult with and be informed by attorneys of their
choosing regarding all aspects of this Agreement and that they are familiar with
Section 1542 of the Civil Code of the State of California, which provides as
follows:

           A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
           DOES NOT KNOW OR SUSPECT TO HAVE EXISTED IN HIS FAVOR AT THE TIME
           OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
           MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

The Parties each hereby waive and relinquish all rights and benefits it has or
may have under Section 1542 of the Civil Code of the State of California or any
like statute or law in any other jurisdiction to the full extent it may lawfully
do so.

     6. ATTORNEYS' FEES AND COSTS. As they relate to the negotiation and
settlement of the dispute between the Parties, the Parties shall each bear his
or its own attorneys' fees, costs and all other expenses incurred with respect
to all aspects of the negotiation of this Agreement.

     7. REPRESENTATIONS AND WARRANTIES

        (a) SBI represents and warrants that they are the sole owners of and
have not assigned or transferred (voluntarily, involuntarily or by operation of
law), or purported to assign or transfer, to any person, entity or institution,
any Claim released in Paragraphs 3(a) and/or 4(a) hereof.

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     (b) NDMS and Moore represent and warrant that they are the sole owners of
and have not assigned or transferred (voluntarily, involuntarily or by operation
of law), or purported to assign or transfer, to any person, entity or
institution, any Claim released in Paragraph 3(b) hereof.

     (c) NDMS and Moore, on the one hand, and Soft Bank, on the other hand,
represent and warrant that there are no Claims against the other(s) which are
not released by Paragraph 3 hereof, or expressly carved-out therein.

     (d) SBI represents and warrants that, to the best of their knowledge, the
Moore Shares, the NDMS shares, the Affonso Shares, the Bossung Shares, the
Sunset Shares, the Ewing Shares, and the Radusch Shares have been duly
authorized, validly issued, are nonassessable, are not subject to any preemptive
or other similar rights and have not been issued in violation of any applicable
laws, the QT-5 Articles of Incorporation, the QT-5 Bylaws or the terms of any
contract to which QT-5 is a party or bound. There are no obligations, contingent
or otherwise, to repurchase, redeem or otherwise acquire such shares.

     (e) QT-5 and SBI represent and warrant that: (i) SBI-USA is a Limited
Liability Company duly organized, validly existing and in good standing under
the laws of the State of Delaware; (ii) it is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to be
so qualified would have a material adverse effect on its business or properties;
(iii) it has taken all action on the part of the Company, its members and
managers necessary for the authorization, execution and delivery of this
Agreement and the performance of all obligations hereunder; (iv) this Agreement,
when executed and delivered, shall constitute valid and binding obligations of
the Company, enforceable in accordance with its terms; and (v)

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no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state or local
governmental authority on the part of the Company is required in connection with
the consummation of the transactions contemplated by this Agreement

     (g) Each of the undersigned executing this Agreement in a representative
capacity represents and warrants, for the reliance of the Parties: (i) that the
entity on whose behalf he signs is validly existing under the laws of the
several States; (ii) that the entity on whose behalf he signs has the requisite
power and authority to enter into this Agreement; and (iii) that he has the
requisite power and authority to execute this Agreement on behalf of such entity
and to bind such entity to the covenants, conditions, representations and
warranties herein.

     (h) Each Party to this Agreement, and the undersigned, agree to defend,
indemnify and hold harmless the other Party(ies) and the Consenting Parties from
any Claims arising out of or in connection with his or its breach of the
representations and warranties in this Agreement.

     8. CONFIDENTIALITY. The Parties each agree that the terms of this Agreement
shall remain confidential and shall not be disclosed to any third party other
than: (1) to their respective attorneys, accountants, financial advisors and
business partners; (2) as required by applicable federal or state law; (3)
pursuant to a valid subpoena or other compulsory process of a court or other
administrative or governmental entity; or (4) as may be required to enforce the
terms of this Agreement or to perfect any security interest granted pursuant
hereto. In the event that any subpoena or process seeking disclosure of this
Agreement or confidential information concerning its subject matter is received
or expected to be received by any Party (or any officer, director,

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employee, attorney or agent of any Party), such Party shall promptly provide
notice to the other Party.

     9. ANTI-DEFAMATION. The Parties each agree not to make any statement to any
third party concerning the other(s) which is false, slanderous or defamatory.

     10. SUCCESSORS; BENEFICIARIES. This Agreement, and the covenants and
conditions herein, shall be binding upon each of the Parties and also shall be
binding upon and inure to the benefit of their respective predecessors,
successors and assigns. The Consenting Parties (and their respective releasees)
are intended third party beneficiaries of this Agreement.

     11. INTEGRATION; RELIANCE; FRAUD OR MISTAKE. This Agreement and the Other
Agreement contains and constitutes the entire agreement and understanding of the
Parties concerning the subject matter hereof and thereof, and supersedes and
replaces all prior discussions and negotiations, proposed agreements or
agreements, written or oral, pertaining to such subject matters; it is the
intention of the Parties that the Other Agreement fully survive the execution of
this Agreement and that this Agreement survive the Execution of the Other
Agreement. Each of the Parties acknowledges that the other Party has not made
any promise, representation, or warranty not contained herein to induce it to
execute this Agreement and each of the undersigned represents and warrants that
it has not executed this Agreement in reliance on (1) any promise,
representation or warranty not contained herein; or (2) any fact or state of
facts not expressly recited herein. This Agreement settles and releases Claims
for fraud, including Claims of fraudulent concealment, prior to full discovery
of all facts, and by its nature is based upon incomplete knowledge of all
Parties; the Parties acknowledge that they are entering into this Agreement
notwithstanding that fact. Each of the Parties hereto has conducted such

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investigation as it deemed necessary prior to executing this Agreement, waives
and deems unnecessary any further investigation, inquiry or knowledge, and
expressly assumes the risk of any mistake of fact with regard to the making of
this Agreement. The Parties hereby irrevocably waive any right to request or
obtain rescission of this Agreement, and hereby irrevocably elect damages in an
action at law as their sole remedy for any claim of fraud or mistake in entering
into this Agreement. In the event that any claim of fraud or mistake is made by
any Party with respect to this Agreement, this Agreement shall remain in full
force and effect until entry of a final judgment sustaining such claim of fraud
or mistake, and the Party claiming fraud or mistake must pay all legal fees,
costs and expenses (including expert fees) of the defendants on a monthly basis,
pending such final judgment.

     12. MODIFICATION. This Agreement may not be supplemented, modified,
amended, waived, released or terminated except (a) by a writing executed by the
Party to be bound thereby and (b) with the written consent of all other Parties.
Any delegation by any Party to this Agreement shall be ineffective to release
that Party from its obligation(s) to perform any delegated covenants, duties, or
agreements under this Agreement unless such delegation has been approved or
ratified in writing by the Party to whom such performance is due.

     16. CONSTRUCTION. This Agreement in all respects shall be interpreted,
construed, enforced and governed by and under the laws of the State of
California without regard to any internal conflicts of law principles in such
jurisdiction. The Parties each waive any right, express or implied, to request
or to receive the application of the law of any jurisdiction other than the
State of California. This Agreement was and shall be deemed to have been
prepared in the State of California by all of the Parties jointly, and any
uncertainty or ambiguity existing in this

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Agreement shall not be interpreted against any Party by reason of such Party
having been responsible in any fashion for the drafting hereof. Accordingly, any
rule of law, statutory or decisional, that would require interpretation of any
ambiguities in this Agreement against the Party that has drafted it shall be of
no application and hereby is expressly waived to the fullest extent possible.
The provisions of this Agreement shall be interpreted in a reasonable manner to
effect the intentions of the Parties and of this Agreement. If any non-material
part of this Agreement is ruled enforceable or invalid, such ruling shall not
affect the enforceability or validity of the remaining portions of this
Agreement.

     13. EXECUTION. This Agreement may be executed as a single original or in
any number of counterparts, each of which shall be deemed to be an original and
which, taken together, shall be deemed to be one and the same instrument.
Signatures delivered by facsimile shall be effective as original signatures.

     14. BREACH. In the event that any proceeding, suit or action is brought to
enforce any provision of this Agreement, or in connection with any breach of or
default under this Agreement, the prevailing Party shall be entitled to recovery
of its reasonable costs and expenses, including actual attorneys' fees, in
addition to any other relief to which that Party may be entitled.

     15. NOTICES. All notices required by this Agreement shall be deemed to have
been made (a) on the date of actual delivery thereof, if sent by facsimile (with
confirmation report) or personally delivered to the below address, or (b) on the
date which is two days after deposit with United States Express Mail or
overnight courier, addressed as follows:

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                  (a)      If to QT-5:
                           5655 Lindero Canyon Road, Suite 120
                           Westlake Village
                           Attention: Timothy Owens
                           Facsimile: 916-313-3565

                  (b)      If to SBI: 2361 Campus Drive, Suite 210
                           Irvine, CA  92612
                           Attn:  Shelly Singhal, Managing Director
                           Facsimile:  949-679-7280

                  (c)      If to NDMS or Moore:
                           5855 Via Manigua
                           Las Vegas, NV
                           89120 Attention: Robert Moore
                           Facsimile: 702-547-4559

                               - with a copy to -

                           CHRISTENSEN, MILLER, FINK,
                               JACOBS, GLASER, WEIL & SHAPIRO, LLP
                           2121 Avenue of the Stars, 18th Floor
                           Los Angeles, California 90067-5010
                           Attention:  Kevin J. Leichter, Esq.
                           Facsimile:  310-556-2920

     16. ASSISTANCE OF COUNSEL. The Parties each acknowledge that it has been
represented by independent counsel of its own choice throughout all negotiations
proceeding the execution of this Agreement and in the execution of this
Agreement and that each of the Parties has

/ / /

/ / /

/ / /

/ / /

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executed this Agreement after consultation with counsel and after careful
consideration of each of its terms and with full understanding of the legal
effect of such terms. THE UNDERSIGNED HAVE READ AND UNDERSTAND THE FOREGOING AND
AGREE TO ITS TERMS AS OF THE DATE SET FORTH AT THE BEGINNING OF THIS

AGREEMENT.

Dated:  June 10, 2003               QT-5:

                                    By  /s/ Timothy Owens
                                       ---------------------------------------
                                           Timothy Owens, CEO/Director

                                    By  /s/ Steve Reder
                                        ---------------------------------------
                                           Steve Reder, President/Director

Dated:  June 10, 2003              SBI-USA LLC

                                    By  /s/ Shelly Singhal
                                        ---------------------------------------
                                           Shelly Singhal

Dated:  June 10, 2003              NDMS INVESTMENTS, L.P.

                                    By /s/ Robert Moore
                                        ---------------------------------------
                                           Robert Moore, General Partner

                                        /s/ Shelly Singhal
                                        ---------------------------------------
                                           Shelly Singhal, Personally

                                        /s/ Robert Moore
                                        ---------------------------------------
                                           Robert Moore, Personally

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                                    EXHIBIT A

                                     CONSENT

     Reference is made to that certain Settlement Agreement and General Releases
dated as of June 10, 2003. The undersigned hereby consents to the provisions of
Paragraph 4 and agrees to be bound thereby.

Dated: June __, 2003                           ALLIANCE FINANCIAL NETWORK

                                               By
                                                 -------------------------------
Dated: June __, 2003                           DEVENSHIRE MANAGEMENT CORP

                                               By
                                                 -------------------------------
Dated: June __, 2003                           CHESS MANAGEMENT GROUP

                                               By
                                                 -------------------------------
Dated: June __, 2003                           SUNSET HOLDINGS INTERNATIONAL

                                               By
                                                 -------------------------------
Dated: June __, 2003                           DALE AFFONSO

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

Dated: June __, 2003                           CHRIS EWING

                                               ---------------------------------
Dated: June __, 2003                           TODD SANDERS

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

Dated: June __, 2003                           BILL BOSSUNG

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

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Exhibit B-1

                                     CONSENT

     Reference is made to that certain Settlement Agreement and Mutual General
Releases dated as of June 10, 2003.

     Dale Affonso hereby consents to the provisions of Paragraphs 4 and 8 and
agrees to be bound thereby.

                                                     DALE AFFONSO, an individual

Dated:  June __, 2003                                ---------------------------

                                       1

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Exhibit C-1

                                     CONSENT

     Reference is made to that certain Settlement Agreement and Mutual General
Releases dated as of June 10, 2003.

     Devenshire Management Corp, Todd Sanders and Sunset Holdings International
Ltd. each hereby consents to the provisions of Paragraphs 5 and 9 and agrees to
be bound thereby.

Dated:  June __, 2003                         DEVENSHIRE MANAGEMENT CORP

                                              ----------------------------------
                                              By:
                                              Its:

                                              TODD SANDERS, an individual

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

                                              SUNSET HOLDINGS INTERNATIONAL LTD.

                                              ----------------------------------
                                              By:
                                              Its:

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Exhibit D-1

                                     CONSENT

     Reference is made to that certain Settlement Agreement and Mutual General
Releases dated as of June 10, 2003.

     Alliance Financial Network, Inc., Bill Bossung and Chess Management Group,
LLC each hereby consents to the provisions of Paragraphs 6 and 10 and agrees to
be bound thereby.

Dated:  June __, 2003                        ALLIANCE FINANCIAL NETWORK, INC.

                                             ----------------------------------
                                             By:
                                             Its:

                                             BILL BOSSUNG, an individual

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

                                             CHESS MANAGEMENT GROUP, LLC

                                             -----------------------------------
                                             By:
                                             Its:

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Exhibit E

                                     CONSENT

         Reference is made to that certain Settlement Agreement and Mutual
General Releases dated as of June 10, 2003.

     Christopher Ewing hereby consents to the provisions of Paragraph 11 and
agrees to be bound thereby.

                                               CHRISTOPHER EWING, an individual

Dated:  June __, 2003                          --------------------------------

                                       1

<PAGE>

Exhibit F
                                     CONSENT

         Reference is made to that certain Settlement Agreement and Mutual
General Releases dated as of June 10, 2003.

     Stephen Radusch hereby consents to the provisions of Paragraph 12 and
agrees to be bound thereby.

                                               STEPHEN RADUSCH, an individual

Dated: June __, 2003                           ---------------------------------

                                       1

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                                                                     Exhibit 4.7

                               SECURITY AGREEMENT

     THIS SECURITY  AGREEMENT (this  "Agreement") is made and entered into as of
June 10, 2003 by and among QT-5,  Inc., a Delaware  corporation  ("Debtor"),  in
favor of Dale Affonso ("Secured  Party"),  with reference to the following facts
and circumstances.

     A. Debtor is delivering a promissory note to Secured Party in the principal
amount of $50,000 (the "Secured Amount").

     B. In order to secure its obligations to repay the Secured  Amount,  Debtor
has agreed to grant Secured Party a security interest in certain collateral,  as
described herein.

     NOW,  THEREFORE,  IN  CONSIDERATION  of the  foregoing  and other  good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, Debtor and Secured Party hereby agree as follows:

     1. GRANT OF SECURITY  INTEREST.  As security  for Debtor's due and punctual
performance of the Obligations (as hereinafter  defined),  Debtor hereby pledges
with Secured Party the Collateral (as hereinafter defined), and grants, assigns,
transfers and conveys to Secured Party a continuing security interest in any and
all of  Debtor's  right,  title  and  interest  in and to the  Collateral.  Such
security interest shall be second in priority to (and in certain  circumstances,
pari passu with) the  security  interest  granted in favor of NDMS  Investments,
L.P. and pari passu in priority with the security  interests granted in favor of
Devenshire Management Corp. and Alliance Financial Network, Inc.

     2. OBLIGATIONS. This Agreement, and Debtor's pledge of and grant to Secured
Party of a security  interest in and to the Collateral,  is made to secure:  (i)
due and punctual  performance of Debtor's obligation to repay the Secured Amount
pursuant  to a  Secured  Note of  even  date  herewith  and  any  other  note or
instrument executed by Debtor and payable to Secured Party which recites that it
is secured hereby,  including any and all amendments,  modifications,  renewals,
extensions,   substitutions  or  replacements   hereof  or  thereof;   (ii)  due
performance  of each and every  material  obligation,  covenant and agreement of
Debtor  contained  herein or in any other note or instrument  executed by Debtor
for the  purpose of further  securing  the  Secured  Amount  (collectively,  the
"Obligations").

     3. COLLATERAL. As used herein, the term "Collateral" shall collectively and
severally mean all assets of Debtor, including but not limited to the following:

           (a) EQUIPMENT.  All equipment (as defined in the  California  Uniform
Commercial Code (the "Code")), machinery, tools, furniture,  furnishings,  plant
fixtures, business fixtures and other storage and office equipment, now owned or
held,  or  hereafter  acquired by the Debtor,  wherever  located,  and all parts
thereof and all additions and accessions  thereto and  replacements  thereof and
documents  therefor,  including any documents of title  representing  any of the
above (any and all of the foregoing being the "Equipment");

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           (b)  INVENTORY.  All inventory (as defined in the Code) in all of its
forms, now owned or held, or hereafter acquired by the Debtor, wherever located,
including, but not limited to (i) all goods (wherever located and whether in the
possession of the Company or a bailee or other person for storage,  transit,  or
otherwise) manufactured or assembled or held for sale or lease or furnished, and
raw materials and work in process,  finished and unfinished goods, and materials
used or consumed in the Debtor's business,  (ii) all goods which are returned to
or repossessed by the Debtor, and (iii) all additions and accessions thereto and
replacements and products thereof, including,  without limitation, any documents
of title  representing  any of the above (any and all of the foregoing being the
"Inventory");

           (c)  ACCOUNTS.  All accounts,  chattel  paper,  instruments  (each as
defined in the Code),  and other  obligations  of any kind, now owned or held or
hereafter  acquired  by the Debtor,  including,  without  limitation,  insurance
claims insurance settlement proceeds,  tax refund claims and tax refunds arising
out of or in  connection  with the sale or  lease of goods or the  rendering  of
services,  and all rights in and to all security  agreements,  leases, and other
contracts  securing  or  otherwise  relating  to  any  such  accounts,   general
intangibles,  chattel  paper,  instruments  or  obligations,  and all  books and
records relating to any of the foregoing (any and all of the foregoing being the
"Accounts");

           (d) INSTRUMENTS.  All notes and other  instruments (as defined in the
Code) and any instrument  which  constitutes a part of chattel paper,  and other
evidences of indebtedness in which the Debtor now or hereafter has any interest,
to the extent of that interest;

           (e)  DOCUMENTS.  All  documents (as defined in the Code) in which the
Debtor now or hereafter has any interest, to the extent of that interest;

           (f)  CHATTEL  PAPER.  All  chattel  paper (as defined in the Code) in
which the Debtor now or hereafter has any interest;

           (g) GENERAL  INTANGIBLES.  All General  Intangibles  (as  hereinafter
defined) in which the Debtor now or hereafter has any interest, to the extent of
that  interest,  including,  without  limitation,  the Debtor's  interest in the
Patent  Assignment  between Debtor and Marshall  Thompson and the subject Patent
No.  6,268,386  (the  "Patent").   "General   Intangibles"  means  any  "general
intangibles" (as such term is defined in the Code),  and shall include,  without
limitation,  (i)  all  patents,  patent  applications,   trademarks,   trademark
registrations,  trade names and trademark applications;  (ii) license agreements
with any other  Parties,  whether the Debtor is a licensor or licenses under any
such license  agreement,  and the right to prepare for sale,  sell and advertise
for sale all inventory now or hereafter  covered by such licenses;  (iii) all of
the Debtor's books, records and files, including computer software and tapes and
all other forms of electronic  information  storage;  (iv)  copyrights and other
rights in intellectual property; (v) interests in partnerships,  joints ventures
and other business associations; (vi) licenses and permits; (vii) trade secrets,
propriety or confidential  information,  customer lists,  inventions (whether or
not  patented  or  patentable),  technical  information,   procedures,  designs,
knowledge,  know-how, software, data bases, data, skill, expertise,  experience,
processes,  models, drawings, materials and records, and goodwill; (viii) claims
in or under  insurance

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policies,  including  unearned  premiums;  (ix) deposit accounts;  (x) rights to
receive tax  refunds and other  payments;  (xi) rights of  indemnification;  and
(xii) all of the Debtor's rights under any warranties or guaranties of any kind,
including equipment, machinery or services;

           (h)  CONTRACTS.  All of the  Debtor's  rights  under  all  contracts,
undertakings  or  agreements  (other than  rights  evidenced  by chattel  paper,
documents or instruments) in or under which the Debtor may now or hereafter have
any right, title or interest,  including, without limitation, with respect to an
account,  any  agreement  relating  to the  terms  of  payment  or the  terms of
performance thereof;

           (i) INVESTMENT  PROPERTY.  All investment property (as defined in the
Code), in which Debtor now or hereafter has an interest or entitlement;

           (j) OTHER PERSONAL PROPERTY. All other goods and personal property in
which the Debtor has any interest,  to the extent of that interest,  whether now
or hereafter  owned or existing,  leased,  consigned by or to or acquired by the
Debtor and wherever located; and

           (k) PROCEEDS AND PRODUCTS. All proceeds and products of the foregoing
(including,  without  limitation,  cash proceeds and non-cash proceeds resulting
from the sale or other voluntary or involuntary disposition thereof or any other
realization in respect thereof) and including,  but not limited to, all property
of any  type  that is  acquired  with  any cash  proceeds,  and all  guarantees,
insurance  and  rights  against  sureties  the  Debtor  may  have in  connection
therewith and all proceeds and products  relating thereto or therefrom,  and all
the  Debtor's  right,  title  and  interest  in  and to  additions,  accessions,
replacements  and  substitutions  to and for the  foregoing,  and all documents,
ledger sheets and files of the Debtor relating  thereto.  The term "proceeds" as
used herein shall  include,  without  limitation,  all accounts,  chattel paper,
deposit  accounts,   instruments,   equipment,   inventory,  documents,  general
intangibles  and other  proceeds  that arise from the sale,  lease,  transfer or
other use or disposition  of any kind of any of the Collateral  described in the
foregoing paragraphs (a) through (j), inclusive,  or proceeds,  and all proceeds
of any type described above acquired with cash proceeds.

     4.  POWERS  OF  SECURED  PARTY.  Debtor  appoints  Secured  Party  its true
attorney-in-fact,  effective  upon any Event of  Default,  to perform any of the
following  powers,  which are coupled with an interest,  are  irrevocable  until
termination  of this Agreement and may be exercised from time to time by Secured
Party'  officers,  employees or agents,  or any of them:  (i) to  liquidate  any
certificate of deposit  pledged to Secured Party hereunder prior to its maturity
date and to apply the  proceeds  thereof to payment of the  Obligations  or hold
such  proceeds  as part of the  Collateral,  notwithstanding  the fact that such
liquidation may give rise to penalties for early  withdrawals of funds;  (ii) to
sell,  exchange or  otherwise  dispose of any portion of the  Collateral  and to
apply the proceeds  thereof to payment of the  Obligations;  (iii) to notify any
person  obligated on any security,  instrument or other document subject to this
Agreement  of  Secured  Party'  rights  hereunder;  (iv)  to  collect  by  legal
proceedings or otherwise all dividends, interest, principal or other sums now or
hereafter  payable upon or on account of the  Collateral;  (v) to enter into any
extension,  reorganization,  deposit, merger or consolidation  agreement,

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or any other agreement relating to or affecting the Collateral or proceeds,  and
in  connection  therewith  to deposit or  surrender  control of the  Collateral,
accept other  property in exchange for the  Collateral,  and do and perform such
acts and  things as Secured  Party may deem  proper,  and any money or  property
received in exchange  for the  Collateral  shall be applied to the  Obligations;
(vi)  to make  any  compromise  or  settlement  Secured  Party  deem  necessary,
desirable or proper in respect of the Collateral;  (vii) to insure,  process and
preserve the  Collateral;  and (viii) to perform any  obligation of Debtor under
this Agreement, in Debtor's name or otherwise.

     5.  REPRESENTATIONS  AND  WARRANTIES.  Debtor  represents  and  warrants to
Secured Party as follows:

           (a) Debtor is a corporation,  duly organized, validly existing and in
good standing under the laws of the State of Delaware.

           (b) Debtor has all requisite  capacity and power to execute,  deliver
and perform its obligations  under this Agreement,  except that Debtor discloses
and  represents  that there is an existing  dispute  between Debtor and Marshall
Thompson,  the inventor and  proprietary  owner of that  certain  United  States
Patent No. 6,268,386 dated July 31, 2001 for Nicotine  Beverage and Debtor is in
the process of demanding  arbitration to resolve the dispute. This Agreement has
been  duly  authorized  by all  necessary  corporate  action,  has been  validly
executed  and  delivered  by Debtor,  constitutes  the legal,  valid and binding
obligation of Debtor,  enforceable in accordance  with its terms,  and creates a
legal, valid and enforceable security interest in and to the Collateral.

           (c) Except as otherwise set forth on Schedule  5(c),  Debtor owns the
Collateral free and clear of all liens, claims, encumbrances, security interests
or equities, other than the security interest created hereby.

           (d) Debtor's principal place of business is at the location set forth
in Section 14, and,  except as otherwise set forth on Schedule  5(d), all of the
Collateral  is  physically  located  in the  County  of Los  Angeles,  State  of
California.

           (e)  Debtor  has not sold,  transferred,  assigned  or  conveyed  the
Collateral, or any portion thereof, to any person other than Secured Party.

     6.  COVENANTS AND  AGREEMENTS OF DEBTOR.  Debtor  covenants and agrees with
Secured  Party that from the date hereof and until payment and  satisfaction  in
full of each and all of the  Obligations,  unless Secured Party shall  otherwise
consent in writing, which consent shall be granted or withheld in Secured Party'
sole and absolute discretion, Debtor will:

           (a) Duly  observe  and  perform  each  and  every  material  term and
condition of any and all agreements,  instruments and documents  relating to the
Collateral,  and  diligently  protect  and  enforce  its  rights  under all such
agreements.

           (b) Pay promptly  when due all taxes,  assessments  and  governmental
charges or levies  imposed upon the  Collateral  or in respect of the income and
profits

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therefrom,  except  where  nonpayment  does  not  involve  any  danger  of sale,
forfeiture or loss of any of the Collateral or any interest therein.

           (c)  Insure  the  Collateral  with  financially  sound and  reputable
insurers  against loss or damage by fire,  theft,  bodily  injury and such other
casualties,  as are usually insured against by companies  engaged in the same or
similar businesses as Debtor.

           (d) Keep and  maintain at its own cost and expense  satisfactory  and
complete records of the Collateral, including without limitation a record of all
payments received and all credits granted with respect to the Collateral and all
other dealings in the  Collateral.  Upon the occurrence of any Event of Default,
Debtor  will  deliver  and turn over any such books and  records to the  Secured
Party at any time on demand of the Secured Party.  Prior to the occurrence of an
Event of Default  and upon  reasonable  written  notice of no less than five (5)
business  days from Secured  Party,  Debtor shall permit any  representative  of
Secured  Party to inspect  such books and records and will  provide  photocopies
thereof to Secured Party at Secured Party's  expense.  Upon  reasonable  written
notice of no less than five (5) business days to Debtor, with the consent of the
Debtor,  as to the  time of  entry,  which  consent  shall  not be  unreasonably
withheld,  Secured  Party  shall  also have the right to enter into and upon the
premises  where any of the  Equipment or Inventory is located for the purpose of
inspecting the same,  observing its use and otherwise protecting Secured Party's
interests therein.

           (e) Give Secured Party ten (10) days prior written  notice before (i)
changing  its  principal  place of business or moving its books and records to a
location  other  than that set forth in Section 14  hereof;  (ii)  changing  the
location of any  Equipment or Inventory,  or (iii)  changing the location of any
other  Collateral  to a place outside the State of  California;  and in any such
event taking such action as is  necessary to cause the security  interest in the
Collateral to continue to be perfected.

           (f) Not change  its name,  identity  or  corporate  structure  in any
manner  which  might  make any  financing  or  continuation  statement  filed in
connection with this Agreement misleading within the meaning of Section 9-402 of
the Code,  unless  Debtor shall have taken all action  necessary  or  reasonably
requested by Secured Party to amend such financing or continuation  statement so
that it is not seriously  misleading  and shall have  notified  Secured Party of
such action.

           (g) Not sell, lease, assign, transfer,  convey, pledge,  hypothecate,
mortgage or further  encumber any of the  Collateral,  provided that Debtor,  so
long as no Event of Default  shall have occurred and be  continuing,  may in the
ordinary  course of business  (i) sell  Inventory  and goods,  (ii)  collect and
settle Accounts and (iii) dispose of obsolete or non-serviceable  Equipment.  In
addition,  Debtor may grant  security  interests  in favor of NDMS  Investments,
L.P., Devenshire Management Corp. and Alliance Financial Network, Inc.

           (h)  Promptly  pay or  otherwise  cause to be  discharged  any  lien,
charge,   security  interest  or  other  encumbrance  that  may  attach  to  the
Collateral, or any portion thereof, other than pursuant to this Agreement.

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           (i) Promptly  notify  Secured Party of any  attachment or other legal
process  levied  against  any of the  Collateral  and of  any  filed  claims  or
proceedings,  that might in any way  affect or impair  Secured  Party'  security
interest in the  Collateral  or the rights and  remedies  of Secured  Party with
respect thereto as noted in paragraph 5(b) above.

           (j)  Defend  the  Collateral  against  all  claims,  liens,  security
interests,  demands and other encumbrances of third parties at any time claiming
an interest in the Collateral  that is adverse to Secured Party' interest in the
Collateral hereunder.

           (k) At the written  request of Secured  Party and at Secured  Party's
expense,  execute and permit to be filed one or more financing  statements,  and
amendments  thereto,  under  the  Code,  any other  applicable  state's  Uniform
Commercial Code naming Debtor as debtor and Secured Party as secured Parties and
indicating therein the types or describing the Collateral.

           (l) Not,  without the prior written  consent of Secured Party,  which
consent shall not be unreasonably withheld, execute, file or authorize or permit
to be filed in any jurisdiction or with any governmental authority any financing
or similar  statement  relating to the Collateral,  or any portion  thereof,  in
which  any  person  other  than  Secured  Party is named  as a  secured  Parties
thereunder.

           (m)  Reimburse  Secured  Party  upon  demand  for any costs and fees,
including  reasonable  attorneys' fees and accountants' fees and other expenses,
incurred in collecting  any sums payable by Debtor under any of the  Obligations
secured  hereby,  enforcing any term or provision of this Agreement or otherwise
in the collection of the Collateral and the  preparation  and enforcement of any
agreement relating thereto.

           (n) Take any and all  actions  reasonably  requested  in  writing  by
Secured  Party to payoff those  certain  obligations  set forth on Schedule 5(c)
hereto, if any, including, but not limited to, the filing of one or more Uniform
Commercial Code termination statements or other applicable documents.

           (o)  Execute  and  deliver  to  Secured  Party  any and  all  further
agreements,  instruments,  or documents and take any and all such further action
as Secured  Party,  in its sole  discretion,  may deem necessary or advisable in
order to  evidence,  effectuate,  perfect,  protect,  maintain,  or realize upon
Secured  Party'  security  interest in the  Collateral  or the priority  thereof
including,  without  limitation,  any  documents  required  to be filed with the
United States Patent and Trademark Office.

     7. EVENTS OF DEFAULT.  The  occurrence  of an "Event of Default"  under the
Secured Note (after  expiration of any applicable cure periods) shall constitute
an "Event of Default" hereunder.

     8. SECURED PARTY' REMEDIES. If an Event of Default occurs hereunder,  then,
Secured Party may, at its option,  but is not required to, do any one or more of
the following without demand or notice to Debtor:

           (a) Declare  all of the  Obligations  immediately  due and payable in
full, notwithstanding the terms of any other writing or evidence of debt;

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           (b) Transfer the Collateral into Secured Party' s name or that of its
nominee;

           (c)  From  time to time,  proceed  with the  foreclosure  of  Secured
Party's security  interest and sale of the Collateral,  or any portion of it, in
any manner permitted by law or provided for herein;

           (d) Take  possession of and retain the Collateral in  satisfaction of
the Obligations upon compliance with the provisions of the Code; or

           (e) Exercise any and all remedies of a secured Parties under the Code
or as otherwise provided by law.

     9.  APPLICATION  OF PROCEEDS.  After the occurrence of an Event of Default,
all income and  distributions  with respect to the  Collateral  and all proceeds
from any sale of the Collateral pursuant hereto shall be applied as follows:

           (a)  First,  in  such  order  as  Secured  Party  shall  in its  sole
discretion  determine,  (i) to the payment of all costs and expenses incurred by
Secured Party in connection with any sale of the Collateral,  including, without
limitation,  all court costs and the reasonable fees and expenses of counsel for
Secured  Party in  connection  therewith;  (ii) to the repayment of all advances
made by Secured Party hereunder for the account of Debtor; and (iii) the payment
of any and all other costs and  expenses  paid or  incurred by Secured  Party in
connection  with this Agreement or otherwise in connection  with the Obligations
or the exercise of any right or remedy hereunder;

           (b) Second, to the payment of interest on the Obligations;

           (c) Third, to the payment or satisfaction of the Obligations; and

           (d) Fourth,  any amounts  remaining after the foregoing  applications
shall  be  remitted  to  Debtor  or as a court  of  competent  jurisdiction  may
otherwise direct.

     10. power of attorney.

           (a) Debtor  does  hereby  irrevocably  make,  constitute  and appoint
Secured  Party  or any  of  its  officers  or  designees  its  true  and  lawful
attorney-in-fact  with  full  power  in the  name of  Secured  Party  or  Debtor
effective upon an Event of Default to endorse any notes,  checks,  drafts, money
orders or other  evidence of payment  relating to the  Collateral  that may come
into the possession of Secured Party, and to do any and all other acts necessary
or proper to carry out the intent of this Agreement;

           (b) Debtor does  hereby  further  irrevocably  make,  constitute  and
appoint  Secured  Party or any of its officers or designees  its true and lawful
attorney-in-fact  in the name of Secured Party or Debtor effective upon an Event
of  Default,  (i) to enforce  all  Debtor's  rights  under and  pursuant  to all
agreements  with  respect  to  the  Collateral  and to  enter  into  such  other
agreements as may be necessary to protect  Secured Party' rights and interest in
and to the Collateral; (ii) to execute such other and further mortgages, pledges
and  assignments of the  Collateral as Secured Party may reasonably  require for
the
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purpose of protecting, maintaining or enforcing the security interest granted to
the Secured Party herein;  and (iii) to do any and all other things necessary or
proper to carry out the intention of this Agreement; and

           (c) Each of the foregoing  appointments  shall be deemed coupled with
an interest and irrevocable.

     11. PRIVATE SALE AUTHORIZED.

           (a) Debtor  recognizes  that Secured  Party may be unable to effect a
public sale of all or part of the Collateral.  Debtor consents to a private sale
even though such sale may be at prices and upon terms less favorable than if the
Collateral were sold at public sales.

           (b)  Debtor  recognizes  that  a  sale,  public  or  private,  of the
Collateral  may not be able to be effected and Secured Party or its assignee are
hereby  expressly  authorized at their election to retain the Collateral until a
sale can be effected.  Until such sale,  Secured Party or its assignee may elect
to hold the  Collateral  and be  treated  as the  owner  thereof,  and  shall be
entitled to collect all income thereon.

           (c) The  purchaser or purchasers at any public or private sale of the
Collateral  shall take the Collateral  free of any right or equity of redemption
in Debtor, which rights and equities Debtor hereby expressly waives.

           (d) Debtor  agrees that written  notice  mailed to Debtor twenty (20)
business  days  prior to the date of public or  private  sale of the  Collateral
shall constitute reasonable notice for such sales.

     12. FINANCING STATEMENTS AND PAYMENT DIRECTIONS. To the extent permitted by
law,  Debtor  hereby  authorizes  Secured  Party  to file any  amendments  to or
continuations  of any financing  statement  filed with regard to the  Collateral
without the signature of Debtor. Debtor further authorizes Secured Party upon an
Event of Default to notify any account  debtors  that all sums payable to Debtor
relating to the Collateral shall be paid directly to Secured Party.

     13.  TERMINATION.  UPON  SATISFACTION  in  full  of  each  and  all  of the
Obligations,  and the payment of all  additional  costs and  expenses of Secured
Party  provided for herein,  this  Agreement  shall  terminate and Secured Party
shall deliver to Debtor,  at Debtor's  expense,  such of the Collateral as shall
not  have  been  sold or  otherwise  disposed  of or  applied  pursuant  to this
Agreement;  provided  that if Secured  Party is  required  to return any amounts
received  by Secured  Party on account of the  Obligations,  the first  priority
security interests provided hereunder shall reattach.

     14. NOTICES.Any notice or other  communication  required or permitted to be
given  under  this  Agreement  shall be in  writing  and sent by  United  States
Overnight  Express Mail or priority Federal Express  delivery,  postage prepaid,
and addressed as follows:
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              If to Debtor:          QT-5, Inc.
              ------------
                                     5655 Lindero Canyon Road , Suite 120
                                     Westlake Village, CA 91362
                                     Attention: Timothy J. Owens

              If to Secured Party:   Dale Affonso
                                     355 South Grand Ave.
                                     Suite 2000
                                     Los Angeles, CA 90071

 or such other address as either Parties may from time to time specify in
writing to the other in the manner aforesaid. If personally delivered, such
notices or other communications shall be deemed delivered upon delivery. If sent
by United States mail or Federal Express delivery, such notices or other
communications shall be deemed delivered upon delivery or refusal to accept
delivery as indicated on the delivery receipt.

     15.   SURVIVAL   OF   REPRESENTATIONS.   All   covenants,   agreements   or
representations  and  warranties  made  herein  and in any  documents  delivered
pursuant hereto shall survive the execution hereof.

     16. ASSIGNMENTS. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and
assigns of such Parties, and all covenants, promises and agreements by or on
behalf of Debtor contained in this Agreement shall bind and inure to the benefit
of the successors and assigns of Secured Party and Debtor.

     17.  GOVERNING LAW. This Agreement  shall be governed by, and construed and
enforced in accordance with, the laws of the State of California, without regard
to conflict of laws principles.

     18. NO IMPLIED WAIVERS BY SECURED PARTY.  Neither any failure nor any delay
on the part of  Secured  Party  in  exercising  any  right,  power or  privilege
hereunder  shall  operate  as a waiver  thereof,  nor shall a single or  partial
exercise  thereof  preclude  any other or further  exercise of any other  right,
power or  privilege.  The rights,  remedies and benefits of Secured Party herein
expressly  specified  are  cumulative  and not  exclusive  of any other  rights,
remedies or benefits that Secured  Party may have at law, in equity,  by statute
or otherwise.  Without  limiting the generality of the foregoing,  Secured Party
shall have all rights and  remedies of a secured  Party under  Division 9 of the
Code, as it may be amended or superseded from time to time.

     19. MODIFICATIONS AND WAIVERS.

           (a) No  modification,  amendment  or waiver of any  provision of this
Agreement,  nor consent to any departure of Debtor herefrom,  shall in any event
be  effective  unless the same shall be in writing and signed by Secured  Party,
and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given.

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<PAGE>

           (b) No notice or demand on Debtor in any case shall entitle Debtor to
any  other  or  further  notice  or  demand  in  the  same,   similar  or  other
circumstances.

           (c) Debtor hereby waives presentment,  notice of dishonor and protest
of all instruments  included in or evidencing the liability of Debtor in respect
of the  Obligations  or the Collateral and any and all other notices and demands
whatsoever, whether or not relating to such instruments.

           (d) The  Obligations  shall not be  affected  by (i) the  failure  of
Secured  Party to assert any claim or demand or to  enforce  any right or remedy
against  Debtor;  (ii) any extension or renewal  thereof;  (iii) any rescission,
waiver,  amendment or  modification  of any of the terms or  provisions  of this
Agreement or of any other agreement;  or (iv) the release of any collateral held
by Secured Party for the Obligations or any of them.

     20.  SEVERABILITY.  In case any one or more of the provisions  contained in
this Agreement should be determined by a court of law to be invalid,  illegal or
unenforceable in any respect,  the validity,  legality and enforceability of the
remaining  provisions  contained  herein  shall  not in any way be  affected  or
impaired thereby.

     21. SUBMISSION TO JURISDICTION; SERVICE OF PROCESS. Debtor hereby:

           (a) irrevocably  submits to the jurisdiction of the state and federal
courts  sitting in the City of Los Angeles,  State of California for the purpose
of any  suit,  action or other  proceedings  arising  out of or based  upon this
Agreement  or the subject  matter  hereof  brought by any party  hereto or their
respective successors or assigns; and

           (b) waives, and agrees not to assert, by way of motion, as a defense,
or otherwise,  in any such suit, action or proceeding,  any claim that it is not
subject  personally  to the  jurisdiction  of the above named  courts,  that its
property is exempt or immune from attachment or execution, that the suit, action
or proceeding is brought in an inconvenient  forum,  that the venue of the suit,
action or  proceeding is improper or that this  Agreement or the subject  matter
hereof may not be enforced in or by such court.

           (c) waives any right to jury trial and any  offsets or  counterclaims
in any such action,  suit or proceeding  (other than compulsory  counterclaims);
and

           (d) consents to service of process by registered  mail at the address
to which notices are to be given.

     22. CAPTIONS.  The captions in this Agreement are inserted only as a matter
of  convenience  and for  reference  and shall not be deemed to  define,  limit,
enlarge,  or describe  the scope of this  Agreement or the  relationship  of the
parties,  and  shall  not  affect  this  Agreement  or the  construction  of any
provisions herein.

     23. PRONOUNS. Whenever the context so requires, the masculine shall include
the feminine  and the neuter,  and the singular  shall  include the plural,  and
conversely.

     24.   COUNTERPARTS.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of which shall be deemed an original, but all of which shall
together  constitute one and the same instrument.  The facsimile of the executed
counterpart  shall  have the same  force and  effect as if it was an  originally
executed counterpart.

                                       10

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                      QT-5, INC.,
                                      a Delaware corporation

                                      By:   /s/ Steve Reder
                                      ----------------------------------
                                            Steve Reder
                                            President, Director

                                      By:   /s/ Timothy Owens
                                      ----------------------------------
                                            Tim Owens
                                            Chief Executive Officer, Director

Acknowledged and agreed by
Secured Party:

By   /s/ Dale Affonso
    -------------------------------
         Dale Affonso

                                       11
<PAGE>

                                  Schedule 5(c)

                                      NONE

                                       12

<PAGE>

                                  Schedule 5(d)

                                      NONE

                                       13

<PAGE>

                                    EXHIBIT A

                                 PATENT MORTGAGE

                                       14

<PAGE>

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