Document:

EXHIBIT 10.5

THIS AGREEMENT dated the 31st day of July, 2000

BETWEEN:

Belcarra Messaging Corp.,
a company  incorporated  in the  Province  of British  Columbia,  Canada and the
Registered Office of which is at 220-1024 Ridgeway Avenue, Coquitlam, BC V3J 1S5
Canada.
(hereinafter referred to as the "Vendor")

AND:

POPstar Global Communications Inc.,
an International Business Company incorporated in British Virgin Islands and the
Registered  Office of which is at KPMG Centre,  Tropic Isle  Building,  P.O. Box
3443, Road Town, Tortola,  British Virgin Islands.
(hereinafter referred to as the "Purchaser")

AND:

POPstar Communications, Inc.,
a company incorporated in the State of Nevada,  U.S.A. and the Registered Office
of which is at 3675 Pecos  McLeod,  Suite  1400,  Las Vegas,  Nevada  89121-3881
U.S.A.
(hereinafter referred to as the "POPstar")

WHEREAS

A.   The Vendor and its principals  possess certain  expertise and  intellectual
     property relating to Internet Messaging; and

B.   The  Purchaser  wishes  to pursue  certain  product  development  involving
     Internet Messaging; and

C.   The Vendor and the  Purchaser  entered  into a Letter of Intent on June 30,
     2000 for the transfer by the Vendor to the Purchaser's ownership of certain
     intellectual property listed herein.

NOW THEREFORE, IN CONSIDERATION of the payment of the consideration (the receipt
and sufficiency of which is hereby  acknowledged) and the promises and covenants
contained herein and IT IS HEREBY AGREED as follows:

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1.   Definitions

     In this  Agreement,  unless the context  otherwise  requires  or  expressly
     provides,   the  following   words  shall  have  the   following   meanings
     respectively:

     "Intellectual  Property"  means (a) the IMAP mail server  software which is
     based on Carnegie  Mellon  University's  "Cyrus" IMAP server as modified by
     the Vendor,  the software being easily  implementable  into a corresponding
     server having  capacities  exceeding  100,000 users using standard computer
     operating  platforms;  (b) Mail Transfer Agent software  technology ("EXIM"
     MTA as  modified by  Fireplug  Computers  Inc.)  providing  scalability  of
     messaging  systems  (carrying all message  types,  including fax, voice and
     other  unified  messaging)  over a range  of  thousands  of  users  to many
     millions of users and over  thousands  of domains;  (c) Open LDAP,  an LDAP
     directory tool,  incorporated  into the MTA software above; and (d) certain
     administrative  software  incorporating  Open LDAP, and as developed by Ted
     Powell.

     "Restricted  Common  Stock"  means up to 20,000  shares of Common  Stock of
     POPstar  issuable to the Vendor as described  in Sections  3(ii) and 3(iii)
     herein.

     "C$" means the lawful currency of Canada.

     "US$" means the lawful currency of the United States of America.

     In this  Agreement,  reference to the plural shall include the singular and
     vice versa.

2.   Sale and Purchase of Intellectual Property

     The Vendor shall transfer to the Purchaser the beneficial  ownership of and
     the  exclusive  right to use and exploit the  Intellectual  Property  which
     shall  include the right to use,  sell,  distribute,  license or market the
     same on a world wide basis.  The Vendor shall transfer to the Purchaser all
     proprietary  and  intellectual  property  rights,  including  all rights of
     Vendor,  if  any,  in and to  trade  names,  trade  marks,  service  marks,
     copyrights,   patents,  designs  and  other  intellectual  property  rights
     relating  to the  Intellectual  Property.  The  sale by the  Vendor  of the
     Intellectual  Property to the  Purchaser  shall be  exclusive to the extent
     that the Vendor  shall not grant to any third party  (save for  Bridgewater
     Systems Corporation,  The Electric Mail Company Inc. and such other parties
     with the prior written  approval of the  Purchaser) the right to use, copy,
     adapt,  prepare derivative works of,  distribute,  sell, lease or otherwise
     dispose of, reproduce,  reverse-engineer,  disassemble,  transmit, perform,
     display the Intellectual  Property,  or any portion thereof.  Forthwith the
     purchase by the Purchaser of the Intellectual Property from the Vendor, the
     Purchaser   shall  have  sole  and  exclusive   unfettered   discretion  in
     commercially  exploiting the Intellectual  Property.  The Vendor's existing
     license for internal use shall remain in force.

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3.   Purchase Consideration

     The  consideration  to be  made  by the  Purchaser  to the  Vendor  for the
     purchase of the Intellectual Property shall be as follows:

          (i)       an initial  cash  payment of  C$35,000.00,  payable upon the
                    Closing of this Agreement;

          (ii)      10,000 shares of Restricted  Common Stock of POPstar,  to be
                    issued upon the Closing of this Agreement;

          (iii)     an additional  10,000  shares of Restricted  Common Stock of
                    POPstar,  to be issued on January 10,  2001,  subject to the
                    fulfillment of the performance benchmarks set out in Section
                    5.2 herein; and

          (iv)      12 equal monthly  payments of C$2,500.00 each, such payments
                    commencing on the 30th day of the calendar  month  following
                    the date of this Agreement.

4.   Closing

     4.1. Place and Time.  Closing of the sale and purchase of the  Intellectual
          Property  shall  take  place at 107 East 3rd  Avenue,  Vancouver,  BC,
          Canada no later than 5:00 p.m.  on August 31,  2000,  or at such other
          place, date and time as the parties hereto may agree in writing.

     4.2. Conditions  to Closing.  Prior to Closing,  the  following  conditions
          shall have been satisfied:

          4.2.1. The Purchaser shall have entered into a royalty-free  licensing
               agreement  (in a form and on terms  no less  favourable  than the
               licensing  agreement  set out in EXHIBIT A hereto) with  Carnegie
               Mellon  University  in  respect  of the  use  and  resale  by the
               Purchaser  of the  IMAP  server  software  developed  as  part of
               Carnegie Mellon  University's  "Cyrus" IMAP server software which
               forms part of the Intellectual Property.

          4.2.2. The Seller shall have  obtained  written  release of Ted Powell
               and  Bridgewater   Systems  Corporation  in  form  and  substance
               satisfactory to the Purchaser.

     4.3. Deliveries by the Vendor. At the Closing,  the Vendor shall deliver or
          procure the delivery of the following to the Purchaser:

          4.3.1. All source code and  documentation  developed by or obtained by
               the Vendor in conjunction with the Intellectual Property.

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          4.3.2.  Written  releases  of  Ted  Powell  and  Bridgewater   Systems
               Corproation in form and substance satisfactory to the Purchaser.

     4.4. Deliveries  by the  Purchaser.  At the Closing,  the  Purchaser  shall
          deliver or procure the delivery of the following to the Seller:

          4.4.1.  A  cheque,  bank  draft  or  money  order  in  the  amount  of
               C$35,000.00 made payable to the Vendor.

          4.4.2. A certified  copy of an  irrevocable  instruction by POPstar to
               POPstar's  share  transfer agent  instructing  the share transfer
               agent to issue a  certificate  for  10,000  shares of  Restricted
               Common Stock of POPstar in the name of the Vendor.

5.   Transitional Development Assistance and Further Performance

     5.1. Transitional  Development  Assistance.  The  Vendor  agrees to provide
          transitional  development  assistance  to the  Purchaser in connection
          with the further development by the Purchaser's personnel for a period
          of not less than 12 months.  This period may be extended  upon mutual,
          written agreement between the Vendor and the Purchaser. Payment by the
          Purchaser  to the Vendor in respect of this  transitional  development
          assistance  is set  out in  Section  3(iv)  herein.  The  transitional
          development assistance to be provided by the Vendor shall generally be
          adequate to allow the  Purchaser's  reasonably  capable  personnel  to
          proceed with such further development without such further assistance.
          The  transitional  development  assistance  shall include at least one
          monthly  in-person  review meeting between  technical  personnel to be
          appointed by the Vendor and the Purchaser,  the form and venue of such
          meeting to be determined between the Vendor and the Purchaser.

     5.2. Further  Performance.  The Vendor warrants that it will deliver to the
          Purchaser a working  demonstration of mail server "cluster"  operation
          prior to January  10,  2001,  the date by which an  additional  10,000
          shares of Restricted Common Stock of POPstar,  subject to this Section
          5.2,  are  to be  issued  to the  Vendor.  For  the  purpose  of  this
          Agreement,  a "cluster" of mail servers shall  comprise a plurality of
          IMAP or POP-3 mail  servers  sharing a common  e-mail  domain  address
          while  appearing to  subscribers  and external  routing  entities as a
          single,  large  server.  This  is  facilitated  through  the use of an
          administrative  database  linking each user to a specific  mail server
          within the cluster.  The working  demonstration  shall  comprise:  (i)
          administrative registration of subscribers within a cluster, including
          assignment  of  each  to  a  specific  mail  server;  (ii)  successful
          demonstration  of proper  routing  of e-mail  messages  to  registered
          subscribers,  to the specific server to which each is assigned;  (iii)
          successful  access to and  operation  of the  specific  server by such
          registered  subscribers.  The  Vendor  must  also  demonstrate  to the
          satisfaction  of the  Purchaser a strategy by which the  Purchaser may
          extend administrative  functions associated with subscriber assignment
          to include subscriber reassignment to a

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          different  mail  server  within  a  cluster,  without  loss of  stored
          messages or requiring  any action or change of  procedures on the part
          of the subscriber.

6.   Representations and Warranties by the Vendor

     The Vendor represents and warrants to the Purchaser and POPstar that:

     6.1. Organization  of  the  Vendor.   The  Vendor  is  a  corporation  duly
          organized, validly existing and in good standing under the laws of the
          Province of British  Columbia with full corporate  power and authority
          to execute and deliver this  Agreement and to perform its  obligations
          hereunder.  The execution,  delivery and performance of this Agreement
          have been duly  authorized  by all necessary  corporate  action of the
          Vendor and this Agreement  constitutes a valid and binding  obligation
          of the Vendor; enforceable against it in accordance with its terms.

     6.2. No Conflict as to the Vendor.  Neither the  execution  and delivery of
          this Agreement nor the  consummation  of the sale of the  Intellectual
          Property  to the  Purchaser  will (a)  violate  any  provision  of the
          certificate of incorporation,  memorandum,  articles, by-laws or other
          constituting  documents of the Vendor, or (b) violate,  be in conflict
          with, or constitute a default (or an event which, with notice or lapse
          of time or both,  would  constitute a default)  under any agreement to
          which the  Vendor is a party  which  will  result in the  creation  or
          imposition of any security  interest,  mortgage,  encumbrances,  lien,
          charge,  adverse claim or restriction of any kind on the  Intellectual
          Property,  or (c) violate any statute or law or any judgment,  decree,
          order,  regulation  or rule of any  court or other  governmental  body
          applicable to the Vendor.

     6.3. Title to  Intellectual  Property.  The  Vendor  owns the  Intellectual
          Property   free  from  any  and  all  security   interest,   mortgage,
          encumbrances,  lien, charge, adverse claim or restriction of any kind,
          including  but not limited to any  restriction  on the use,  transfer,
          licensing,  receipt of income or other  exercise of any  attributes of
          ownership.

     6.4. Carnegie Mellon  University  Licensing  Agreement.  It is the Vendor's
          understanding  that the  Purchaser  may be  required  to enter  into a
          royalty-free  licensing  agreement (in a form and has contents similar
          to the licensing  agreement set out in EXHIBIT A hereto) with, and pay
          a one-time  license fee to, Carnegie  Mellon  University in respect of
          the use and  resale  by the  Purchaser  of the  IMAP  server  software
          developed as part of Carnegie Mellon University's  "Cyrus" IMAP server
          software which forms part of the Intellectual Property. To the best of
          the Vendor's knowledge and belief,  Carnegie Mellon University has not
          terminated  its policy of licensing its "Cyrus" IMAP server  software.
          It is the  understanding  of the Vendor that, as of June 30, 2000, the
          date of the Letter of Intent,  the one-time  licensing  fee charged by
          Carnegie  Mellon  University for its "Cyrus" IMAP server  software was
          US$20,000.  The Vendor is not aware of any adverse change, proposed or
          otherwise,

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<PAGE>

          in Carnegie Mellon University's licensing policy and licensing fees.

     6.5. Consents  and  Approvals  of  Governmental  Authorities.  No  consent,
          approval or authorization  of, or declaration,  filing or registration
          with, any governmental  body is required to be made or obtained by the
          Vendor in connection  with the execution,  delivery,  performance  and
          consummation of this Agreement by the Vendor.

     6.6. Other  Consents.  Other than the consent of the board of  directors of
          the Vendor  (which is already  obtained),  no consent of any person is
          required to be obtained by the Vendor for the execution,  delivery and
          performance  of this  Agreement  or the  consummation  of the sale and
          purchase of the Intellectual Property to the Purchaser.

     6.7. No Litigation. There is no claim, action, suit, inquiry, proceeding or
          investigation  by or before any court or governmental  body pending or
          threatened in writing against the Vendor which may affect the value of
          the  Intellectual  Property or the Vendor's title to the  Intellectual
          Property.

     6.8. Non-Competition. The Vendor warrants and represents that, for a period
          of not less than 24 months after the  termination of the  transitional
          development assistance described in Section 5 herein, the Vendor shall
          not, directly or indirectly,  either individually or in partnership or
          jointly or in conjunction  with any third party, as principal,  agent,
          beneficiary,  independent contractor, supplier, consultant, financier,
          lender, guarantor,  partner, proprietor or shareholder in any capacity
          whatsoever or in any other manner whatsoever carry on or be engaged in
          or be concerned with or interested in,  financially or otherwise,  any
          business or undertaking competitive with the Intellectual Property.

     6.9. Vendor's Representations as to POPstar Restricted Common Stock:

          6.9.1. No Qualification.  The Vendor understands and acknowledges that
               (i) none of the Restricted  Common Stock have been qualified by a
               prospectus or registration  statement or otherwise  qualified for
               sale under the securities laws of any  jurisdiction;  (ii) absent
               an exemption  from  registration  or prospectus  requirements  of
               applicable Federal and State securities laws of the United States
               of America,  the issuance and sale of the Restricted Common Stock
               would  require the  involvement  of a  registered  dealer and the
               filing  of  a   prospectus   and   registration   statement   (if
               applicable); (iii) POPstar is and will be issuing such securities
               in reliance upon exemptions from the  registration and prospectus
               requirements of such securities  laws; and (iv) the  availability
               of such exemptions depends upon, among other things, the Vendor's
               representations,  warranties  and  agreements  contained  in this
               Agreement, including, without limitation, the bona fide nature of
               the  investment  intent as expressed  herein.  The Vendor further
               understands and acknowledges  that POPstar is under no obligation
               to  register  or qualify the  Restricted  Common  Stock under any
               applicable securities law, or to comply with any exemptions under
               any applicable  securities  law in connection  with any resale of
               such

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               Restricted Common Stock.

          6.9.2. No Regulatory  Review.  The Vendor understands and acknowledges
               that no securities commission or similar regulatory authority has
               made any finding or  determination  regarding the fairness of the
               offer, sale or issuance of the securities  described herein,  has
               made any  recommendation  or endorsement of the offer and sale of
               the securities  described herein or has reviewed or passed in any
               way upon this  Agreement  or upon the  merits  of the  securities
               described herein.

          6.9.3. Investment. The Vendor is acquiring the Restricted Common Stock
               as principal,  for investment purposes only, for the Vendor's own
               account  and not  with  the view to or for  immediate  resale  or
               redistribution.

          6.9.4.   Speculative   Investment.   The  Vendor  is  aware  that  the
               acquisition  of the  Restricted  Common  Stock  is a  speculative
               investment  involving  a high degree of risk and that there is no
               guarantee   that  the  Vendor  will  realize  any  gain  from  an
               investment in such  Restricted  Common Stock.  The Vendor further
               understands  that the Vendor could lose the entire  amount of the
               Vendor's  investment in such Restricted  Common Stock. The Vendor
               is financially able to bear the economic risk of an investment in
               the Restricted  Common Stock,  including the ability to hold such
               Restricted  Common  Stock  indefinitely  and to afford a complete
               loss of the Vendor's investment in such Restricted Common Stock.

          6.9.5. Resale Restrictions.  The Vendor acknowledges that the Vendor's
               rights  to  transfer   the   Restricted   Common  Stock  will  be
               restricted,  including  restrictions under applicable  securities
               laws,  and that the Vendor has been  independently  advised as to
               such  restrictions,  and,  without limiting the generality of the
               foregoing,  the fact that the Vendor will not be able to trade in
               such  Restricted  Common  Stock  except  where  an  exemption  is
               available   under  relevant   securities   laws  and  the  Vendor
               understands such restrictions.  The Vendor covenants that it will
               not sell,  transfer or otherwise dispose of the Restricted Common
               Stock except in compliance with the applicable  securities  laws.
               In connection therewith, the Vendor acknowledges that POPstar may
               make a notation on its share registers and records  regarding the
               restrictions  on  transfers  set forth in this  Section  and will
               transfer  securities  on the books of POPstar  only to the extent
               not inconsistent therewith.

          6.9.6. No Advertising.  The offering and sale of the Restricted Common
               Stock were not made through an advertisement of the securities in
               the  printed  media of general and  regular  unpaid  circulation,
               radio or television or any other form of advertisement or as part
               of a  general  solicitation.  The  Vendor  acknowledges  that the
               information  received  by the Vendor  does not,  individually  or
               collectively,   constitute  an  offering  memorandum  or  similar
               document  describing the business or affairs of POPstar which has
               been, or

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               appears or purports to have been,  prepared  for delivery to, and
               review by, prospective  Vendors in order to assist them in making
               an investment decision in respect of securities of POPstar.

          6.9.7. Investor's Acknowledgement. The Vendor acknowledges, represents
               and  warrants,  as at the date  given  above and at the  Closing,
               that:

               6.9.7.1. POPstar is offering the restricted Common Stock pursuant
                    to an exemption under Section 4 (2) of the Securities Act of
                    1933 of the  United  States  of  America,  as  amended  (the
                    "Securities Act") not involving any public offering;

               6.9.7.2.  the  Vendor is not a U.S.  Person  (as  defined  in the
                    Securities Act) and is not purchasing the restricted  Common
                    Stock for the account of or the benefit of a U.S. Person;

               6.9.7.3. the Vendor was not offered the  restricted  Common Stock
                    in the United  States (as defined in  Regulation S under the
                    Securities Act);

               6.9.7.4. the Vendor did not execute or deliver this  Agreement in
                    the United States (as so defined); and

               6.9.7.5. to the extent that the Vendor is not a U.S. Person,  the
                    Vendor has satisfied itself as to the full observance of the
                    laws of its  jurisdiction in connection with its acquisition
                    of the restricted Common Stock.

          6.9.8.  Certificate   Legending.   The  certificates   evidencing  the
               Restricted  Common  Stock  may  contain a legend  similar  to the
               following or substantially as follows:

               THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND MAY
               NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS A COMPLIANCE WITH THE
               REGISTRATION  PROVISIONS  OF SUCH  ACT HAS  BEEN  MADE OR  UNLESS
               AVAILABILITY  OF AN EXEMPTION FROM SUCH  REGISTRATION  PROVISIONS
               HAS BEEN  ESTABLISHED,  OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
               THE SECURITIES ACT OF 1933.

          6.9.9. No  Representation.  Other  than as set forth  herein and those
               included  in the  documents  to be  delivered  with  the  Closing
               contemplated  hereby, the Vendor acknowledges that the Vendor has
               not  received  and  will  not  receive  any   representations  or
               warranties  from  POPstar  or any of its  respective  affiliates,
               employees or agents in making an investment  decision  related to
               the acquisition of the Restricted Common Stock described herein.

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7.   Representations and Warranties by the Purchaser

     The Purchaser represents and warrants to the Vendor that:

     7.1. Organization  of the  Purchaser.  The Purchaser is a corporation  duly
          organized, validly existing and in good standing under the laws of the
          British  Virgin  Islands with full  corporate  power and  authority to
          execute  and deliver  this  Agreement  and to perform its  obligations
          hereunder.  The execution,  delivery and performance of this Agreement
          have been duly  authorized  by all necessary  corporate  action of the
          Purchaser  and  this   Agreement   constitutes  a  valid  and  binding
          obligation of the Purchaser; enforceable against it in accordance with
          its terms.

     7.2. No Conflict as to the Purchaser. Neither the execution and delivery of
          this   Agreement  nor  the   consummation   of  the  purchase  of  the
          Intellectual  Property by the Purchaser will (a) violate any provision
          of the certificate of incorporation,  memorandum, articles, by-laws or
          other constituting  documents of the Purchaser,  or (b) violate, be in
          conflict with, or constitute a default (or an event which, with notice
          or  lapse of time or both,  would  constitute  a  default)  under  any
          agreement to which the  Purchaser is a party which will result in this
          Agreement  becoming  null and void,  invalid and  non-binding,  or (c)
          violate any statute or law or any judgment,  decree, order, regulation
          or rule of any  court or other  governmental  body  applicable  to the
          Purchaser.

8.   Representations and Warranties by POPstar

     POPstar represents and warrants to the Vendor that:

     8.1. Organization  of POPstar.  POPstar is a  corporation  duly  organized,
          validly  existing and in good standing  under the laws of the State of
          Nevada, U.S.A., with full corporate power and authority to execute and
          deliver this Agreement and to perform its obligations  hereunder.  The
          execution,  delivery and  performance of this Agreement have been duly
          authorized  by all  necessary  corporate  action of  POPstar  and this
          Agreement  constitutes  a valid and  binding  obligation  of  POPstar;
          enforceable against it in accordance with its terms.

     8.2. No Conflict as POPstar.  Neither the  execution  and  delivery of this
          Agreement  nor the  consummation  of the purchase of the  Intellectual
          Property  by the  Purchaser  will (a)  violate  any  provision  of the
          certificate of incorporation,  memorandum,  articles, by-laws or other
          constituting  documents  of POPstar,  or (b)  violate,  be in conflict
          with, or constitute a default (or an event which, with notice or lapse
          of time or both,  would  constitute a default)  under any agreement to
          which POPstar is a party which will result in this Agreement  becoming
          null and void, invalid and non-binding,  or (c) violate any statute or
          law or any judgment, decree, order, regulation or rule of

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          any court or other governmental body applicable to POPstar.

     8.3. POPstar  Restricted  Common Stock. The delivery of certificates to the
          Vendor  provided  in Section 3 of this  Agreement  will  result in the
          Vendor's  acquisition of registered and beneficial  ownership of those
          Restricted  Common  Stock,  free  and  clear  of all and any  security
          interest,  mortgage,  encumbrances,  lien,  charge,  adverse  claim or
          restriction  of any  kind  other  than as  required  by  U.S./Canadian
          Federal and State/Provincial securities laws.

9.   General Provisions

     9.1. If any  provisions of this  Agreement are determined by a court of law
          or  arbitral  tribunal to be invalid,  illegal or  unenforceable,  the
          validity,  legality and enforceability of the remaining  provisions of
          this Agreement shall not in any way be affected or impaired thereby.

     9.2. This Agreement  shall be governed by and construed in accordance  with
          the laws of the Province of British  Columbia,  Canada and the parties
          hereby  submit  to the  non-exclusive  jurisdiction  of the  courts of
          British  Columbia  (provided  that actions to enforce a judgement of a
          British  Columbia  court  may  be  pursued  by  either  party  in  any
          jurisdiction).  Any  disputes  arising  out  of or  relating  to  this
          Agreement  or the  interpretation,  breach,  termination  or  validity
          hereof shall be settled first through friendly  consultations  between
          the parties. Such consultations will begin immediately after one party
          has   delivered   to  the  other  party   written   request  for  such
          consultation.  If, within thirty (30) days following the date on which
          such notice is given (the "Arbitration  Request Period"),  the dispute
          cannot be settled  through  consultations,  the dispute shall,  on the
          request of either party with notice to the other  party,  be submitted
          to  arbitration  in British  Columbia.  Any decision by the arbitrator
          will be final and binding on the parties,  and the parties agree to be
          bound thereby and to act  accordingly.  If neither party has requested
          arbitration  within the Arbitration  Request Period,  either party may
          bring suit in the courts of British  Columbia,  and each party  hereby
          submits  to the  non-exclusive  jurisdiction  of the courts of British
          Columbia for such purpose (provided that actions to enforce a judgment
          of a British  Columbia  court may be  pursued  by either  party in any
          jurisdiction).

     9.3. All notices, consents,  assignments and other communication under this
          Agreement  shall be in  writing  and shall be deemed to have been duly
          given when (a) delivered by hand, (b) sent by telex or facsimile (with
          receipt confirmed), provided that a copy is mailed by registered mail,
          return  receipt  requested,  or (c) received by the  delivery  service
          (receipt requested), in each case to the appropriate addresses,  telex
          numbers and facsimile set forth below (or to such other address, telex
          numbers and  facsimile as a party may designate as to itself by notice
          to the other parties).

          (a)  If to the Vendor:

                                                                              10
<PAGE>

               Belcarra Messaging Corp.
               Unit 11-555 Clarke Road Suite 13
               Coquitlam, BC V3K 3X0 Canada
               Attn:  Bruce Balden
               Facsimile no:  604-931-6057

          (b)  If to the Purchaser:
               POPstar Global Communications Inc.
               c/o POPstar Communications Canada Corp.
               107 East 3rd Avenue
               Vancouver, BC V5T 1C7 Canada
               Attn:  Don Lau
               Facsimile no:  604-872-6601

          (c)  If to POPstar:
               POPstar Communications, Inc.
               c/o POPstar Communications Canada Corp.
               107 East 3rd Avenue
               Vancouver, BC V5T 1C7 Canada
               Attn:  Don Lau
               Facsimile no:  604-872-6601

     9.4. Each party shall bear its own expenses  incidental to the preparation,
          negotiation,   execution  and  delivery  of  this  Agreement  and  the
          performance of its obligations hereunder.

     9.5. The captions in this  Agreement are for  convenience of reference only
          and shall not be given any effect in interpretation of this Agreement.

     9.6. The failure of a party to insist upon strict  adherence to any term of
          this  Agreement  on any occasion  shall not be  considered a waiver or
          deprive  that  party  the  right  thereafter  to  insist  upon  strict
          adherence  to that  term or any  other  term  of this  Agreement.  The
          parties may waive any term of this Agreement but any waiver must be in
          writing.

     9.7. This Agreement  supersedes all prior agreements among the parties with
          respect to its  subject  matter  with  respect  thereto  and cannot be
          changed or terminated orally.

     9.8. This  Agreement may be executed in two or more  counterparts,  each of
          which shall be considered an original, but all of which together shall
          constitute the same instrument.

     9.9. This  Agreement  shall inure to the benefit of and be binding upon the
          parties hereto and their respective  successors and assigns,  provided
          that none of the parties may assign its rights  hereunder  without the
          consent of the others.

                                                                              11
<PAGE>

THIS AGREEMENT was given on the day and year first above written.

Signed by                              )
                                       )
Name:  Bruce Balden                    )
Title: President                       )
for and on behalf of                   )    /s/ Bruce Balden
Belcarra Messaging Corp.               )    ---------------------------------
                                            Signature

Signed by                              )
                                       )
Name: John McDermott                   )
Title:                                 )
for and on behalf of                   )
POPstar Global                         )    /s/ John McDermott
Communications Inc.                    )    ---------------------------------
                                            Signature

Signed by                              )
                                       )
Name:  John McDermott                  )
Title: President                       )
for and on behalf of                   )    /s/ John McDermott
POPstar Communications, Inc.           )    ---------------------------------
                                            Signature

                                                                              12
<PAGE>

                                    EXHIBIT A

           Form of Licensing Agreement with Carnegie Mellon University
                   In respect of "Cyrus" IMAP server software

CYRUS IMAP                                ASG Home   What's New   Jobs   Search
LICENSING

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                                              Download Software   Project Cyrus

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Version  2.0 and later of the Cyrus  IMAP  server is  covered  by the  following
copyright message:

 *  Copyright (c) 1994-2000 Carnegie Mellon University.  All rights reserved.
 *
 *  Redistribution  and use in  source  and  binary  forms,  with or  without
 *  modification, are permitted provided that the following conditions
 *  are met:
 *
 *  1.  Redistributions of source code must retain the above copyright
 *      notice, this list of conditions and the following disclaimer.
 *
 *  2.  Redistributions in binary form must reproduce the above copyright
 *      notice, this list of conditions and the following disclaimer in
 *      the documentation and/or other materials provided with the
 *      distribution.
 *
 *  3.  The name "Carnegie Mellon University" must not be used to
 *      endorse or promote products derived from this software without
 *      prior written permission.  For permission or any legal
 *      details, please contact
*               Office of Technology Transfer
*               Carnegie Mellon University
*               5000 Forbes Avenue
*               Pittsburgh, PA  15213-3890
*               (412) 268-4387, fax: (412) 268-7395
*               tech-transfer@andrew.cmu.edu
*
*  4.   Redistributions of any form whatsoever must retain the following
*       acknowledgment:
*               "This product includes software developed by Computing  Services
*               at Carnegie Mellon University (http://www.cmu.edu/computing/)."
*
*  CARNEGIE MELLON UNIVERSITY DISCLAIMS ALL WARRANTIES WITH REGARD TO
*  THIS SOFTWARE, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY
*  AND FITNESS, IN NO EVENT SHALL CARNEGIE MELLON UNIVERSITY BE LIABLE
*  FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
*  WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN
*  AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING
*  OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.

If you find this  software  useful and  valuable  in your work,  we welcome  any
support you can offer toward continuing this work.

We  gratefully   accept   contributions,   whether   intellectual  or  monetary.
Intellectual contributions in the form of code or constructive collaboration can
be directed to cyrus-bugs+@andrew.cmu.edu (even if it is not a bug).

If you wish to  provide  financial  support to the Cyrus  Project,  send a check
payable to Carnegie Mellon University to

       Project Cyrus
       Computing Services
       Carnegie Mellon University
       5000 Forbes Ave
       Pittsburgh, PA 15213
       USA

--------------------------------------------------------------------------------
Last Updated: Sunday, 16-Jul-2000 16:42:48 EDTEXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT is made effective the 26th day of July, 2000.

BETWEEN:

          SURPLUS OFFICE SYSTEMS,  LLC, a limited company incorporated under the
          laws of  Washington  and  having an office  located  at 543 - 5701 6th
          Avenue South, Seattle, Washington, 98108

          - and -

          ABLE AUCTIONS  (1991) LTD., a company  incorporated  under the laws of
          British  Columbia  and  having  an  office  located  at 1963  Lougheed
          Highway, Coquitlam, British Columbia, V3K 3T8

          (collectively, the "Company")

                                                               OF THE FIRST PART

AND:

          BRETT JOHNSTON, of 2996 Spuraway Avenue, Coquitlam,  British Columbia,
          V3C 2E3

          (the "Employee")

                                                              OF THE SECOND PART

WHEREAS:

A.  The   Company   is   engaged   in  the   business   of  the   manufacturing,
re-manufacturing, and retail sales of office furniture (the "Business");

B. The Employee has  represented  to the Company that he is qualified to provide
management services to the Company in connection with the Business; and

C. The Company  wishes to employ the Employee to provide  those  services to the
Company on the terms and subject to the following conditions;

NOW  THEREFORE  THIS  AGREEMENT  WITNESSES  that the parties  mutually  agree as
follows:

1. EMPLOYMENT

1.1 Subject to the terms and conditions of this  Agreement,  the Company employs
the Employee to perform the duties set out in section 2.1.

1.2 The Employee's obligation to perform the duties and the Company's obligation
to pay the  remuneration  to the  Employee  will  commence on July 26, 2000 (the
"Effective Date") and will continue for a term of three years from the Effective
Date unless earlier terminated in accordance with Article 5 (the "Term").

<PAGE>

                                       2

1.3 At the end of the Term,  the parties may renew this Agreement in writing for
a further term of three years or as the parties otherwise agree.

2. DUTIES

2.1 The  Employee  will use his best  efforts to manage the  Business in the San
Francisco  Bay Area and to perform any other  duties and  functions  that may be
directed by the Company's Board of Directors (the "Duties").

2.2 The  Employee  will  perform  the Duties in a  diligent,  professional,  and
efficient manner to preserve and enhance the Company's  corporate image and will
faithfully devote his full time,  effort,  and ability to the performance of the
Duties.

3. REMUNERATION

3.1 The  Company  will pay the  Employee  a base  annual  salary of  US$125,000,
payable  in  bi-monthly  instalments  of  US$5,208.33  (less  applicable  source
deductions)  on the 15th day (or the  business day  immediately  before the 15th
day,  if the latter is not a  business  day) and the last  business  day of each
month during the Term.

3.2 The  Company  will also pay the  Employee a bonus at the end of each  fiscal
year equal to the positive amount, if any, calculated as follows:

     2% of gross sales of the Business  generated in the San  Francisco Bay Area
     in that fiscal year, minus US$125,000 (the annual base salary)

     Where the Employee performs  services  hereunder for less than 12 months in
any fiscal  year,  the  calculation  of 2% of gross  sales will be based only on
sales  achieved  during those months of services and the amount to be subtracted
will be the total amount of salary  actually  paid to the Employee  during those
months.

     Despite the foregoing,  the bonuses will only be payable to the extent that
the Business  remains  profitable  in the San  Francisco Bay Area in that fiscal
year,  and any bonuses  payable will be reduced as appropriate if payment of the
entire  bonus  earned  would  result in the  Business  suffering a loss for that
fiscal year. Gross sales and  profitability  will be calculated for the purposes
of this section in accordance with generally accepted accounting principles.

3.3 The  Company  will  reimburse  the  Employee  for all  travelling  and other
expenses,  including  expenses  incurred  by the  Employee  in moving to the San
Francisco Bay Area up to a maximum of CDN$5,000,  actually and properly incurred
by him in connection with the Duties. The Employee will provide the Company with
receipts and statements for all expenses at the Company's request.

3.4  Ableauctions.com,  Inc.  (the  "Parent  Company")  will  also  grant to the
Employee,  subject to  regulatory  approval,  an  incentive  stock  option  (the
"Option") to acquire  100,000  shares of its common  stock (the  "Shares") at an
exercise price of US$8.66 per Share,  exercisable in stages for three years from
the date of grant of the Option as follows:

     (a)  the  first  33,333  Shares  may be  purchased  on or after  the  first
          anniversary of the date of grant;

<PAGE>

                                       3

     (b)  the  second  33,333  Shares  may be  purchased  on or after the second
          anniversary of the date of grant; and

     (c)  the  final  33,334  Shares  may be  purchased  on or after  the  third
          anniversary of the date of grant.

          The  Parent  Company  and the  Employee  will  enter  into a  separate
incentive  stock  option  agreement  setting  out in more  detail  the terms and
conditions of the Option.

3.5 Unless the Company  has a vehicle  available  for the  Employee's  use,  the
Employee will provide,  maintain, and use his own vehicle for the performance of
the Duties.  The Company will pay the Employee a vehicle allowance of US$500 per
month.

3.6 During the Term,  the  Employee  will be  entitled  to a total of four weeks
vacation in each calendar year and the Employee  agrees to take vacations at the
times that the President of the Company may reasonably  approve having regard to
the Company's operations.

3.7 The Employee will be entitled to participate in any medical or other benefit
plans or  programs  that may be  established  by the  Company  during  the Term,
provided that:

     (a)  the Employee will contribute US$200 per month toward monthly premiums;
          and

     (b)  the Company  will  contribute  not more than  US$800 per month  toward
          monthly  premiums  in respect of the  Employee,  his  spouse,  and any
          children.

3.8 The Company  will  continue to pay the  premiums  and any other costs of the
life insurance  policy for the Employee and the  beneficiary of such policy will
remain the Employee's wife.

4. RELATIONSHIP OF THE PARTIES

4.1 The Duties are personal in character  and the Employee  cannot assign either
this  Agreement  or any rights or  benefits  arising  under this  Agreement.  In
performing  the  Duties,  the  Employee  will  operate as and have the status of
employee  and will not act or hold  himself  out as or be an agent or partner of
the Company.

5. TERMINATION

5.1 This Agreement and the employment of the Employee may be terminated:

     (a)  at any time by  notice  from the  Company  to the  Employee  for "just
          cause" (as defined below);

     (b)  after the first  year from the  Effective  Date,  if the  Employee  by
          reason  of  illness  or  mental or  physical  disability  fails for 60
          consecutive  days to perform the Duties,  then by three months' notice
          from the Company to the Employee.

     For the purposes of this Agreement, "just cause" is defined as follows:

     (c)  the Employee's  continued  failure or negligence to perform any of the
          Duties in the  manner or within  the time  required  or the  continued
          breach of or default in any of the Employee's  covenants,  duties,  or
          obligations 30 days after the Company delivers a

<PAGE>

                                      4

          written  demand for  substantial  performance  to the Employee,  which
          demand  specifically  identifies  the manner in which the Employee has
          not performed the Duties or the nature of the breach or default;

     (d)  the Company acting reasonably determines the Employee has violated the
          confidentiality  of any  information as provided for in this Agreement
          or has become of unsound mind or is declared incompetent to handle his
          own personal affairs;

     (e)  any  dishonesty  or  misconduct  on  the  part  of the  Employee  that
          materially affects the Company;

     (f)  the  conviction  of  the  Employee  for  any  crime   involving  moral
          turpitude, fraud, or misrepresentation; or

     (g)  the Employee  becomes bankrupt or makes any arrangement or composition
          with its creditors.

5.2 On termination  of this Agreement for any reason,  the Employee will deliver
to the  Company  all  documents  pertaining  to  the  Company  or its  Business,
including without limitation all correspondence,  reports, contracts, data bases
related to the Company, and anything included in the definition of "Confidential
Information" set out in section 6.1.

6. CONFIDENTIALITY AND NON-COMPETITION

6.1 For the  purposes of this  Article 6,  "Confidential  Information"  includes
without limitation:

     (a)  trade secrets  concerning  the business and affairs of the Company and
          its affiliates (collectively, the "Companies"), data, know-how, ideas,
          past and current supplier and customer lists,  current and anticipated
          customer  requirements,  price lists, market studies,  business plans,
          computer  software  and  programs  (including  object  code and source
          code),   computer   software  and  database   technologies,   systems,
          structures  and  architectures  (and related  formulae,  compositions,
          processes, improvements,  devices, inventions,  discoveries, concepts,
          designs, methods, and information), and any other information, however
          documented, that is a trade secret; and

     (b)  information  concerning  the  business  and affairs of the  Companies,
          which includes historical financial statements,  financial projections
          and budgets,  historical and projected sales, capital spending budgets
          and plans,  the names and backgrounds of key personnel,  and personnel
          training and techniques and materials, however documented; and

     (c)  notes, analyses, compilations,  reports, studies, summaries, and other
          material  prepared by or for the  Companies  containing  or based,  in
          whole or in part, on any information included in the foregoing.

6.2 The  Employee  acknowledges  and agrees  that all  Confidential  Information
prepared,  produced,  developed, known, or obtained by the Employee, directly or
indirectly,  whether before or after the date hereof, belongs exclusively to the
Companies, which will be entitled to all rights, interests, profits, or benefits
in respect thereof.

6.3 The Employee will not disclose at any time any  Confidential  Information to
any person not expressly  authorized in writing by the Company for that purpose.
The Employee will comply with

<PAGE>

                                       5

any  directions  that  the  Company  may  make to  ensure  the  safeguarding  or
confidentiality of all Confidential Information.

6.4 The Employee  will not  disseminate  or distribute  any of the  Confidential
Information to the media,  members of the public,  shareholders  of the Company,
prospective  investors,  members  of  the  investment  or  brokerage  community,
securities  regulators,  or any other third  party,  without  the Company  first
reviewing and approving the  Confidential  Information  before  dissemination or
distribution.

6.5 The Employee will not make any copies,  summaries, or other reproductions of
any Confidential  Information  without the Company's express written permission,
provided  that the  Company  permits the  Employee  to maintain  one copy of the
Confidential Information for his own use during the Term.

6.6 The  Employee  will not,  either  directly  or  indirectly,  use for his own
benefit or for the benefit of any third party any Confidential Information.

6.7 The Employee  acknowledges and agrees that  Confidential  Information is and
will be of a  special  and  unique  character,  the  loss  of  which  cannot  be
reasonably,  readily, or accurately  calculated in monetary terms.  Accordingly,
the  Companies  will be  entitled to  injunctive  or other  equitable  relief to
prevent  or cure any  breach  or  threatened  breach  of this  Agreement  by the
Employee.  Resort to equitable  relief,  however,  will not be construed to be a
waiver of any other right or remedy that the  Companies  may have for damages or
otherwise.

6.8 The  Employee  agrees that  during the Term and any  renewal  term and for a
period of two years following the date of termination of this Agreement, he will
not, either for himself or for any other person:

     (a)  encourage  or  entice  any  persons  who are  employees  or  full-time
          independent  contractors  of  the  Companies  (collectively,  "Service
          Providers")  at any time during the Term or any renewal  term,  or who
          were Service  Providers at any time within the 30 days  preceding  the
          date of this  Agreement,  to seek  employment  or service with persons
          other than the Companies; or

     (b)  offer employment or service or contracts,  directly or indirectly,  to
          any persons who are Service  Providers  at any time during the Term or
          any renewal term, or who were Service Providers at any time within the
          30 days preceding the date of this Agreement; or

     (c)  in any way interfere with the  relationship  between the Companies and
          any Service Providers;

     (d)  induce or  attempt  to induce  any  customer,  supplier,  or  business
          relation  of the  Companies  to cease doing  business  with any of the
          Companies,  or in any way interfere with the  Companies'  relationship
          with any customer, supplier, or business relation of the Companies.

6.9 The Employee  agrees with the Company that he will not,  except as a Service
Provider of any of the Companies:

     (a)  at  any  time  during  the  Term  or any  renewal  term  or any  other
          association  with any of the  Companies  and during any notice  period
          while  the  Employee  is  receiving   remuneration  from  any  of  the
          Companies, or

<PAGE>

                                       6

     (b)  where  the Term or the  association  of the  Employee  with any of the
          Companies is terminated for whatever reason, for a period of two years
          thereafter,

either  individually  or in a partnership or jointly or in conjunction  with any
person, firm, corporation,  government,  association, or syndicate as principal,
agent, employee,  director,  officer,  consultant, or in any other manner, carry
on, manage,  operate,  or engage or participate in any business whose activities
compete  in whole or in part  with the  Business  or any other  business  of the
Companies  within the Greater  Vancouver area or the San Francisco Bay Area. The
Employee  agrees that this covenant is reasonable  with respect to its duration,
geographical area, and scope.

6.10 If the  Employee  breaches  any of the  provisions  of this  Article 6, the
Companies or any of them will be entitled to damages  from the Employee  and, in
addition to its rights to damages and any other rights any of the  Companies may
have, to obtain  injunctive or other equitable  relief to restrain any breach or
threatened  breach or otherwise to  specifically  enforce the provisions of this
Article 6, it being  agreed  that money  damages  alone would be  inadequate  to
compensate the Companies and would be an inadequate remedy for such breach.  The
remedies  afforded to the Companies by this Agreement will be cumulative and not
alternative  and will be in  addition to and not in  substitution  for any other
rights and remedies available to the participants at law or in equity, including
the remedy of injunctive relief.

6.11 On termination of this Agreement,  the Employee will furnish to the Company
a certificate in a form approved by the Company's  solicitors that declares that
the Employee has not:

     (a)  divulged,  disclosed,  distributed, or otherwise made available to any
          person any of the Confidential Information; or

     (b)  reproduced or made any use of the Confidential Information for his own
          benefit or for the benefit of any third party; or

     (c)  acted  contrary to this  Article 6, except  with the  Company's  prior
          written consent.

7. NOTICES

7.1 Any  notices to be given by either  party to the other will be  sufficiently
given  if  delivered  personally  or  transmitted  by  facsimile  or if  sent by
registered mail, postage prepaid,  to the parties at their respective  addresses
shown on the first page of this  Agreement,  or to any other addresses as either
party may  notify to the other  from  time to time in  writing.  Notice  will be
deemed to have been given at the time of  delivery,  if  delivered  in person or
transmitted by facsimile, or within three business days from the date of posting
if mailed.

8. FURTHER ASSURANCES

8.1 Each party will at any time and from time to time,  at the other's  request,
sign and deliver  other  documents  and do other things that the other party may
reasonably  request to carry out and give full effect to the terms,  conditions,
and intent of this Agreement.

9. ENUREMENT

9.1 This Agreement is binding on the parties to this  Agreement,  and will enure
to the  benefit of the  Companies  and their  successors  and  assigns,  and the
Employee, his heirs, personal representatives, and permitted assigns.

<PAGE>

                                       7

10. ASSIGNMENT

10.1 The Company may assign this Agreement to any affiliated company upon notice
to the Employee.

11. WAIVER

11.1 The rights and remedies of the parties to this Agreement are cumulative and
not  alternative.  Neither the failure nor any delay by any party in  exercising
any right,  power, or privilege under this Agreement will operate as a waiver of
such right,  power, or privilege,  and no single or partial exercise of any such
right,  power, or privilege will preclude any other or further  exercise of such
right,  power,  or  privilege  or the  exercise of any other  right,  power,  or
privilege. To the maximum extent permitted by applicable law,

     (a)  no claim or right  arising out of this  Agreement can be discharged by
          one party,  in whole or in part,  by a waiver or  renunciation  of the
          claim or right unless in writing signed by the other party;

     (b)  no waiver  that may be given by a party will be  applicable  except in
          the specific instance for which it is given; and

     (c)  no notice  to or demand on one party  will be deemed to be a waiver of
          any  obligation  of that party or of the right of the party giving the
          notice or demand to take further  action  without  notice or demand as
          provided in this Agreement.

12. SEVERABILITY

12.1  If  any  provision  of  this   Agreement  is  determined  to  be  void  or
unenforceable  in whole or in part,  that provision will be deemed not to affect
or impair the validity of any other  provision of this Agreement and the void or
unenforceable provision will be severable from this Agreement.

13. GOVERNING LAW

13.1 This  Agreement  will be governed by and construed in  accordance  with the
laws  of  Washington  and  the  parties  irrevocably  attorn  to the  courts  of
Washington.

     IN WITNESS  WHEREOF the parties  have signed this  Agreement as of the date
written on the first page of this Agreement.

SURPLUS OFFICE SYSTEMS, LLC                  ABLE AUCTIONS (1991) LTD.
Per:                                         Per:

-----------------------------------          -----------------------------------
Authorized Signatory                         Authorized Signatory

-----------------------------------
BRETT JOHNSTON

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