Document:

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                                  EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made effective as of the
15th day of August, 2001, by and between Clarus Corporation, a Delaware
corporation (the "Company") and Sean E. Feeney, a Georgia resident,
("Employee").

         WHEREAS, the Company desires to employ the Employee, and Employee
desires to accept such employment with the Company; and

         WHEREAS, the Company and Employee desire to set forth in writing all of
the covenants, terms and conditions of their agreement and understanding as to
such employment.

         NOW THEREFORE, in consideration of the foregoing, the mutual promises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

         1. Employment and Duties. The Company hereby employs Employee, and
            ---------------------
Employee hereby accepts employment, as its Chief Operating Officer. Employee
agrees to serve in such capacity and to faithfully and diligently perform such
duties, responsibilities and services that are incidental thereto, as well as
such other duties, responsibilities and services as may be prescribed or
requested by the Chief Executive Officer of the Company from time to time.
Employee shall devote his full time, attention and best efforts to the
performance of his duties, responsibilities and services to the Company in a
lawful manner and in accordance with all policies of and instructions from the
Company.

         2. Term. The term of this Agreement will commence on the date set forth
            ----
above and will terminate one (1) year thereafter, unless said Agreement is
terminated at an earlier date as provided herein. The Agreement shall
automatically renew for identical and successive one (1) year term(s) unless
either party notifies the other of its intention not to renew the Agreement at
least 30 days prior to the expiration of the one year term then in effect;
provided, however, that all post-termination obligations under Sections 5, 6 and
7 shall survive termination or expiration of this Agreement as provided herein.

         3. Compensation and Employee Benefits.
            ----------------------------------

            (a) Compensation. Employee shall receive an annualized salary (the
"Base Salary") of Two Hundred Thousand Dollars ($200,000.00), which shall be
paid in accordance with the Company's regular payroll practices and subject to
any and all withholdings pursuant to applicable law.

            Employee is also eligible to receive additional annualized
incentive compensation of up to $100,000 per year if the Company meets the
revenue, expense and profitability targets and the Employee attains specified
management business objectives as determined by the

<PAGE>

Company's Chief Executive Officer and which shall be attached as Exhibit "A,"
                                                                 ------------
hereto. The Employee's right to receive incentive compensation hereunder will be
measured on a quarterly basis and, if earned, will be payable quarterly.

         (b) Employee/Fringe Benefits. Employee shall be eligible to participate
in all employee benefit programs and fringe benefits (including, but not limited
to, medical, dental, vision, life, accidental death and dismemberment, travel,
accident and short-term/long-term disability insurance plans or programs, paid
time-off, paid holidays, etc.) generally made available to executive employees
of the Company, subject to any and all terms, conditions, and eligibility
requirements for said programs and benefits, as may from time to time be
prescribed by the Company. The Company may alter, modify, add to or delete its
employee benefit plans at any time as it determines in its sole discretion.

         (c) Other Business Expenses. The Company shall reimburse Employee for
his actual out-of-pocket, business expenses that are incurred by Employee and
are reasonable and necessary in relation to and in furtherance of Employee's
performance of his duties to the Company. Such reimbursement shall be subject to
compliance with the Company's reimbursement policies and the provision of
substantiating documents of said expenses as may be reasonably requested by the
Company.

         (d) Vacation. Employee shall be entitled to twenty-four (24) days Paid
Time Off (PTO) per year (which includes vacation, illness and other personal
time away from work) as well as seven (7) days of paid holiday in accordance
with the Company's normal policies; provided, that vacation shall be taken at
such times as shall not unreasonably interfere with the Employee's
responsibilities hereunder. Up to five (5) days of unused PTO may be carried
forward from one year into the next.

     4.  Termination.  This Agreement may be terminated prior to the expiration
         -----------
of the term as follows:

         (a) Death or Disability. The Employee's employment hereunder shall
terminate automatically upon Employee's death. In such event, Employee's estate
shall be entitled to receive any earned and unpaid Base Salary, prorated through
the date of death. If the Employee is prevented from performing his material
duties hereunder as a result of physical or mental illness, injury or incapacity
for either (i) a period of ninety (90) consecutive days or (ii) more than one
hundred-eighty (180) days in the aggregate in any twelve (12) month period, then
the Company may terminate the Employee's employment upon written notice to
Employee. While receiving disability income payments under the Company's
disability income plan, the Employee shall not be entitled to receive any Base
Salary hereunder, but shall continue to participate in the Company's benefit
plans, to the extent permitted by such plans, until the termination of his
employment.

         (b) For Cause. The Company may terminate the Employee's employment
hereunder for Cause at any time upon notice to the Employee setting forth in
reasonable detail the nature of such Cause. In the event that the Company
terminates Employee's employment for Cause (or Employee resigns from his
employment with the Company), the Company shall not be

                                       2

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obligated to pay any salary or other compensation to Employee after the
effective date of termination, other than accrued and unpaid Base Salary earned
through the date of termination.

         (c) Without Cause. In the event the Company terminates this Agreement
without Cause, then Employee shall be entitled to (i) severance pay in the form
of continuation of his annualized Base Salary until the earlier of the
expiration of the remainder of the one year term then in effect, or a period of
six months from the date of such termination, or Employee's earlier commencement
of employment with any other entity. Any such severance pay shall be paid in
accordance with the Company's regular payroll practices and subject to any and
all withholdings pursuant to applicable law, and (ii) a pro rata portion of his
incentive bonus, if any, contemplated by Section 3(a) for the quarter in which
his employment terminated based upon the number of days in the quarter elapsed
prior to such termination. In addition, the Company shall continue to provide,
through COBRA or otherwise, medical insurance coverage contemplated by Section
3(c) until the earlier of the expiration of the remainder of the one year term
then in effect, or a period of six months following the date of Employee's
termination without Cause, or Employee's earlier commencement of employment with
any other entity. Payment of the severance benefits set forth herein shall be
subject to Employee's continued compliance with the provisions of Section 5
hereof. Notwithstanding anything to the contrary herein, the Company's
obligations to under this Section 4(c) shall terminate on the date on which
Employee commences new employment. For purposes hereof, the commencement of a
full-time position, whether as an employee, consultant or independent contractor
shall be deemed to be commencement of "new employment".

         (d) Change of Control. The Employee may terminate his employment
hereunder at any time during the three (3) month period beginning three (3)
months after a Change of Control has occurred by written notice given to the
Company. In the event of such termination:

             (i)   The Company shall continue to pay to the Employee his Base
         Salary as of the date of the Change of Control for a period of six (6)
         months from the date of termination or such earlier date on which
         Employee commences new employment.

             (ii)  The Company shall pay to the Employee a pro rata portion of
         his incentive bonus, if any, contemplated by Section 3(a) for the
         quarter in which his employment terminated based upon the number of
         days in the quarter elapsed prior to termination.

             (iii) The Company shall continue to provide Employee with the
         medical insurance coverage contemplated by Section 3(c), through COBRA
         or otherwise, for a period equal to the earlier of (x) six (6) months
         from the date of termination or (y) Employee's commencement of
         employment with any other entity.

                                       3

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         5. Protective Covenants. Employee is, and will become during the course
            --------------------
of employment, intimately familiar with Confidential Information, Trade Secrets,
products and services, and other property of the Company. The protection of the
Company requires that all such property and information must remain the sole and
private property of the Company to be used only for the Company's benefit, not
to be disclosed to any other party nor used by Employee against the Company or
for the benefit of any other person. Employee shall, upon request of the
Company, and without request promptly on termination of employment, deliver all
Company Property in Employee's possession or control to the Company. Employee
acknowledges and agrees that title to all Company Property is vested in the
Company. In addition, Employee warrants, represents, covenants and agrees,
during the term of his employment and for the periods described below, as
follows:

            (a) Covenant Not to Compete in Certain Ways. By virtue of his
position with the Company, Employee shall be given an opportunity to, and shall
have an obligation to, participate in strategic planning with respect to
competitors of the Company and shall be made privy to the Company's marketing
strategy, product development, pricing, timing and other matters specifically
designed to address market competition. Employee further acknowledges that the
use and/or disclosure by him of such secret information and knowledge would be
inevitable in the event Employee were to become engaged by such a competitor in
a capacity similar to the capacity in which Employee is employed by the Company.
Employee therefore agrees that, for a period of one (1) year following
termination of his employment with the Company, he shall not directly or
indirectly, within the State of Georgia or within a 100-mile radius of the
addresses of the competitors of the Company expressly listed on Exhibit "B"
                                                                -----------
hereto (the "Named Competitors"), become engaged or employed by any Named
Competitor in a capacity substantially identical to the functions and duties
Employee performs on behalf of the Company. Employee acknowledges that the Named
Competitors designated on Exhibit "B" are the key competitors of the Company as
                          -----------
of the date hereof. Employee acknowledges and agrees that there are many other
entities with whom Employee can profitably use his skills and abilities,
including other competitors of the Company, and that it is entirely proper and
reasonable for him to agree not to work for the Named Competitors in the
prescribed capacity for the prescribed times and within the prescribed
locations. The parties agree that Exhibit "B" may be updated and amended from
                                  -----------
time to time by substituting therefor a modified Exhibit "B" that has been
                                                 -----------
signed by both the Company and Employee, and that the Named Competitors shall
thereafter refer to the companies listed on such amended Exhibit "B."
                                                         ------------
            (b) Covenant Not to Solicit Business from Certain Customers. The
Employee acknowledges that during the course of his employment by the Company,
Employee shall have a duty to, and shall be given an opportunity to, make
contact with and strengthen ties with Customers and potential Customers of the
Company. The Employee shall not, for a period of two (2) years after termination
of his employment with the Company, directly or indirectly, for himself or any
other person or entity, solicit any Customer for the purchase or license by such
Customer of any product or service competitive with any of the products and
services which are offered by the Company within the one-year period preceding
termination of Employee's employment.

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            (c) Covenant Not to Solicit Employees. For a period of two (2) years
following the date of termination of his employment with the Company, Employee
shall not, directly or indirectly, for himself or any other person or entity,
employ, solicit or recommend the employment of any employee of the Company for
the purpose of causing such employee to take employment with Employee or any
other person or entity until such employee or former employee has ceased to be
employed by the Company for a period of six (6) months.

            (d) Covenant Not to Disclose Confidential Information or Trade
Secrets. Employee shall not disclose to any person whatsoever or use any Trade
Secrets or Confidential Information of the Company, other than as necessary in
the fulfillment of his duties to the Company in the course of employment. This
paragraph shall be effective during the term of this Agreement and for a period
of two (2) years after termination of employment with respect to all
Confidential Information, and shall remain in effect with respect to all Trade
Secrets so long as such information remains a trade secret under applicable law.

         6. Work Product; Inventions.
            ------------------------

            (a) Ownership by the Company. The Company shall own all right, title
and interest in and to all work product developed by Employee in Employee's
provision of services to the Company, including without limitation, all
preliminary designs and drafts, all other works of authorship, all derivative
works and patentable and unpatentable inventions and improvements, all copies of
such works in whatever medium such copies are fixed or embodied, and all
worldwide copyrights, trademarks, patents or other intellectual property rights
in and to such works (collectively the "Work Product"). All copyrightable
materials of the Work Product shall be deemed a "work made for hire" for the
purposes of U.S. Copyright Act, 17 U.S.C. (S) 101 et seq., as amended.

            (b) Assignment and Transfer. In the event any right, title or
interest in and to any of the Work Product (including without limitation all
worldwide copyrights, trademarks, patents or other intellectual property rights
therein) does and shall not vest automatically in and with the Company, Employee
agrees to and hereby does irrevocably assign, convey and otherwise transfer to
the Company, and the Company's respective successors and assigns, all such
right, title and interest in and to the Work Product with no requirement of
further consideration from or action by Employee or the Company.

            (c) Registration Rights. The Company shall have the exclusive
worldwide right to register, in all cases as "claimant" and when applicable as
"author," all copyrights in and to any copyrightable element of the Work
Product, and file any and all applicable renewals and extensions of such
copyright registrations. The Company shall also have the exclusive worldwide
right to file applications for and obtain (i) patents on and for any of the Work
Product in Employee's name and (ii) assignments for the transfer of the
ownership of any such patents to the Company.

            (d) Additional Documents. Employee agrees to execute and deliver all
documents requested by the Company regarding or related to the ownership and/or
other intellectual property rights and registrations specified herein. Employee
hereby further

                                       5

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irrevocably designates and appoints the Company as Employee's agent and
attorney-in-fact to act for and on Employee's behalf and stead to execute,
register and file any such assignments, applications, registrations, renewals
and extensions and to do all other lawfully permitted acts to further the
registration, prosecution and issuance of patents, copyright or similar
protections with the same legal force and effect as if executed by Employee.

         7.  Employee's Obligations Upon Termination. Upon the termination of
             ---------------------------------------
Employee's employment hereunder for whatever reason, Employee automatically
tenders Employee's resignation from any office Employee may hold with the
Company, and Employee shall not at any time thereafter represent himself to be
connected or to have any connection with the Company or its related entities.

         8.  Assignment. Due to the personal service nature of Employee's
             ----------
obligations, Employee may not assign this Agreement. Subject to the restrictions
in this Section, this Agreement shall be binding upon and benefit the parties
hereto, and their respective heirs, successors or assigns.

         9. Legality and Severability. The parties covenant and agree that the
            -------------------------
provisions contained herein are reasonable and are not known or believed to be
in violation of any federal, state, or local law, rule or regulation. In the
event a court of competent jurisdiction finds any provision herein (or subpart
thereof) to be illegal or unenforceable, the parties agree that the court shall
modify said provision(s) (or subpart(s) thereof) to make said provision(s) (or
subpart(s) thereof) and this Agreement valid and enforceable. Any illegal or
unenforceable provision (or subpart thereof), or any modification by any court,
shall not affect the remainder of this Agreement, which shall continue at all
times to be valid and enforceable.

         10. Entire Agreement; Modification; Governing Law. This Agreement
             ---------------------------------------------
constitutes the entire understanding between the parties regarding the subject
matters addressed herein and supersedes any prior oral or written agreements
between the parties. This Agreement can only be modified by a writing signed by
both parties, and shall be interpreted in accordance with and governed by the
laws of the State of Georgia without regard to the choice of law provisions
thereof. Notwithstanding the foregoing, the protective provisions contained in
Paragraph 5 hereof shall be governed and enforced in accordance with the laws of
the state in which enforcement of such provisions is sought.

         11. Negotiated Agreement. Employee and the Company agree that this
             --------------------
Agreement shall be construed as drafted by both of them, as parties of
equivalent bargaining power, and not for or against either of them as drafter.

         12. Review and Voluntariness of Agreement. Employee acknowledges
             -------------------------------------
Employee has had an opportunity to read, review, and consider the provisions of
this Agreement, that Employee has in fact read and does understand such
provisions, and that Employee has voluntarily entered into this Agreement.

         13. Non-Waiver. The failure of the Company to insist upon or enforce
             ----------
strict performance of any provision of this Agreement or to exercise any rights
or remedies thereunder

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will not be construed as a waiver by the Company to assert or rely upon any such
provision, right or remedy in that or any other instance.

         14. No Conflicting Obligations. Employee hereby acknowledges and
             --------------------------
represents that Employee's execution of this Agreement and performance of
employment-related obligations and duties for the Company as set forth hereunder
will not cause any breach, default or violation of any other employment,
non-disclosure, confidentiality, non-competition or other agreement to which
Employee may be a party or otherwise bound. Employee hereby agrees that he will
not use in the performance of his duties for the Company (or otherwise disclose
to the Company) any trade secrets or confidential information of any prior
employer or other person or entity if and to the extent that such use or
disclosure may cause a breach or violation of any obligation or duty owed to
such employer, person, or entity under any agreement or applicable law.

         15. Forum; Encorcement. In the event of litigation arising from this
             ------------------
Agreement, Employee hereby expressly consents to jurisdiction and venue in any
State or Federal Court sitting in Fulton County, State of Georgia, and waives
any objections to such jurisdiction and venue. Employee further agrees that if
Employee were to breach the provisions of Section 5 or 6 hereof, the Company
would be irreparably harmed and therefore, in addition to any other remedies
available at law, the Company shall be entitled to equitable relief, including
without limitation, specific performance and preliminary and permanent
injunction, against any breach or threatened breach of said Sections 5 and 6,
without having to post bond.

         16. Notices. Any notice or other communications under this Agreement
             -------
shall be in writing, signed by the party making the same, and shall be delivered
personally or sent by certified or registered mail, postage prepaid, addressed
as follows:

                  If to Employee:          Sean E. Feeney
                                           8195 High Hampton Chase
                                           Alpharetta, Georgia 30022

                  If to the Company:       Clarus Corporation
                                           3970 Johns Creek Court
                                           Suwanee, Georgia 30024
                                           Attention: President

or to such other address as may hereafter be designated by either party hereto.
All such notices shall be deemed given on the date received.

         17. Definitions. As used in this Agreement, the following terms shall
             -----------
have the following meanings:

(a)          "Cause."

             (i)    The Employee's repeated failure to perform (other than by
         reason of disability), or gross negligence in the performance of, his
         material duties and responsibilities hereunder and the continuance of
         such failure or negligence for a period of thirty (30) days after
         notice to the Employee;

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               (ii)  Material breach by the Employee of any provision of this
          Agreement or any other written agreement between the Employee and the
          Company or any of its affiliates; and

               (iii) Other conduct by the Employee that involves a material
          violation of law or breach of fiduciary obligation on the part of the
          Employee or is otherwise materially harmful to the business,
          interests, reputation or prospects of the Company or any of its
          affiliates.

(b)       "Change of Control" For the purposes herein, a "Change of Control"
shall be deemed to have occurred on the earliest of the following dates:

               (i)   The date any entity or person shall have become the
         beneficial owner of, or shall have obtained voting control over, (X)
         fifty-one percent (51%) or more of the outstanding Common Stock of the
         Company if the Company's stock is not then registered with the SEC and
         publicly traded or (Y) forty percent (40%) or more of the outstanding
         Common Stock of the Company if the Company has consummated its initial
         public offering;

               (ii)  The date the stockholders of the Company approve a
         definitive agreement (A) to merge or consolidate the Company with or
         into another corporation, in which the Company is not the continuing or
         surviving corporation or pursuant to which any shares of Common Stock
         of the Company would be converted into cash, securities or other
         property of another corporation, other than (X) a merger or
         consolidation of the Company in which holders of Common Stock
         immediately prior to the merger or consolidation have the same
         proportionate ownership of Common Stock of the surviving corporation
         immediately after the merger as immediately before and (Y) a merger or
         consolidation of the Company in which holders of Common Stock
         immediately prior to the merger or consolidation continue to own at
         least a majority of the combined voting securities of the Company (or
         the surviving entity) outstanding immediately after such merger or
         consolidation, or (B) to sell or otherwise dispose of all or
         substantially all the assets of the Company; or

               (iii) The date there shall have been a change in a majority of
         the Board of Directors of the Company within a 12-month period unless
         the nomination for election by the Company's stockholders of each new
         director was approved by the vote of two-thirds of the directors then
         still in office who were in office at the beginning of the 12-month
         period.

(c)      "Company Property." All property, including, without limitation, real,
          ----------------
personal, tangible or intangible, including all computer programs, electronic
data, educational or instructional materials, inventions, Confidential
Information, Trade Secrets, facilities, trade names, logos, patents, copyrights
and all tangible materials and supplies (whether originals or duplicates and
including, but not in any way limited to, computer diskettes, brochures,
materials,

                                       8

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sample products, video tape cassettes, film, catalogs, books, records, manuals,
sales presentation literature, training materials, calling or business cards,
customer records, customer files, customer names, addresses and phone numbers,
directives, correspondence, documents, contracts, orders, messages, memoranda,
notes, circulars, agreements, bulletins, invoices and receipts), which in any
way pertain to the Company's business, whether furnished to Employee by the
Company or prepared, compiled or acquired by Employee while employed by the
Company, all being the sole property of the Company.

(d) "Confidential Information." All information or material regarding the
Company's business that has or could have commercial value or other utility in
the business in which the Company is engaged or contemplates engaging, or
information which if disclosed without authorization could be detrimental to the
business of the Company, including, but not limited to, its business plans,
marketing plans, methods of operation, products, software programs,
documentation of computer programs, programming procedures, algorithms,
formulas, equipment, techniques, existing and contemplated services, inventions,
systems, devices (whether or not patentable), financial information and
practices, plans, pricing, selling and marketing techniques, proposals or bids
for actual or potential customers, names, addresses and phone numbers of the
Company's customers, credit information and financial data of the Company and
the Company's customers, particular business requirements of the Company's
customers, and special methods and processes involved in designing, producing
and selling the Company's products and services, all shall be deemed
Confidential Information and the Company's exclusive property; provided,
however, that Confidential Information shall not include information that has
entered the public domain other than through the actions of Employee.
Confidential Information shall also include the foregoing types of information
with respect to all affiliates of the Company.

(e) "Customer." Customer means any customer or prospective customer of the
Company with whom Employee had Material Contact during the twelve (12) months
immediately preceding the termination of the Employee's employment with the
Company.

(f) "Material Contact." Material Contact means interaction between the Employee
and the customer or potential customer which takes place in an effort to further
the business relationship, and shall be deemed to exist between the Employee and
each customer or potential customer of the Company with whom the Employee dealt;
whose dealings with the Company were coordinated or supervised by the Employee;
or about whom the Employee obtained and used confidential information in the
ordinary course of business as a result of such Employee's association with the
Company.

(g) "Trade Secrets." All information, including, but not limited to, technical
or non-technical data, formulas, patterns, programs, devices, methods,
processes, financial data, product plans or a list of actual or potential
customers or suppliers, which derives economic value from not being generally
known and which is the subject of reasonable efforts by the Company to maintain
its secrecy.

                     [EXECUTION SET FORTH ON FOLLOWING PAGE]

                                       9

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands
and seals as of the date first above written.

                              THE COMPANY:

                              CLARUS CORPORATION

                              By: /s/  Stephen P. Jeffery
                                  --------------------------------------------
                                  Stephen P. Jeffery, Chief Executive Officer

                              EMPLOYEE:

                              /s/ Sean E. Feeney
                              ------------------------------------------------
                              Sean E. Feeney

                                       10

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                                   EXHIBIT "A"
                                   -----------

                             INCENTIVE COMPENSATION

                                     [NONE]

                                       11

<PAGE>

                                   EXHIBIT "B"
                                   -----------

             List of Competitors Pursuant to Section 5 of Agreement

                 Name:                                     Address:
                 ----                                      -------

1.       Ariba Corporation                      1565 Charleston Road
                                                Mountain View, CA 94043

                                                600 Northpark Town Center
                                                1200 Abernathy Road
                                                Atlanta, GA 30328

                                                and

                                                Jamboree Center
                                                One Plaza Park
                                                Suite 600
                                                Irvine, CA 92614

2.       Commerce One                           CarrAmerica Corporate Center
                                                Buildings #1 & #4
                                                4440 Rosewood Drive
                                                Pleasanton, CA 94588

                                                And

                                                999 Peachtree Street, Suite 140
                                                Atlanta, GA 30309
                                                U.S.A.

3.       Purchase Pro                           3291 North Buffalo Drive
                                                Las Vegas, Nevada 89129

4.       Metiom, Inc.                           One Liberty Plaza - 22nd Floor
                                                New York, NY 10006

                                                and

                                                555 North Point Center East
                                                Alpharetta, GA 30022

                                       12

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Printed Name of Employee:

Sean E. Feeney

/s/   Sean E. Feeney
----------------------------------
Signature of Employee

Effective Date:   August 15, 2001

CLARUS CORPORATION

By:  /s/   Stephen P. Jeffery
     -------------------------------------------
     Stephen P. Jeffery, Chief Executive Officer

Effective Date:   August 15, 2001

                                       13<PAGE>

                                                                    Exhibit 10.1

                           EXCLUSIVE LICENSE AGREEMENT

This Agreement is made by and among Regent Court Technologys (hereinafter "RCT")
and Star Scientific, Inc. (hereinafter "SSI"). RCT and SSI individually and
collectively are hereinafter referred to as "Party" or "Parties," as the case
may be.

1. CONSIDERATION AND EFFECTIVE DATE

      1.1 The effective date of this Agreement (the "Agreement") shall be as of
March 16, 2001.

      1.2 WHEREAS Regent Court Techno1ogies ("RCT"), a general partnership of
which Jonnie R. Williams ("Williams"), of Manakin-Sabot, Virginia, and Francis
O'Donnell, Jr., M.D. ("O'Donnell"), of Chesterfield, Missouri, are partners,
Williams, individually, O'Donnell individually, and Star Tobacco &
Pharmaceuticals, Inc., a Virginia corporation ("STPI") entered into a Licensing
Agreement on January 5, 1998 for certain intellectual properly rights, including
without limitation Patent Rights under United States and foreign patent
applications relating to methods to cure tobacco so as to substantially prevent
the formation of tobacco-specific nitrosamines in cured tobacco, and products
containing such specially-cured tobacco, which license agreement was amended on
August 3, 1998 (hereinafter "the Basic License Agreement");

      1.3 WHEREAS as of March 16, 2001 STPI assigned all of its rights and
obligations under the Basic License Agreement to SSI and SSI assumed all such
rights and obligations; and

      1.4 WHEREAS RCT and SSI wish to terminate the Basic License Agreement and
supersede with this Agreement;

            NOW, THEREFORE, the Parties enter into this License Agreement in
consideration of the mutual covenants and terms expressed herein.

                                       1
<PAGE>

2. PARTIES AND EFFECT

      2.1 Regent Court Technologies ("RCT") is a general partnership having a
place of business at 709 The Hamptons Lane, Chesterfield, Missouri 63017.

      2.2 Star Scientific, Inc. ("SSI") is a Delaware corporation having its
principal place of business at 801 Liberty Way, Chester, Virginia 23836-2704.

      2.3 The Basic License Agreement is hereby terminated.

3. DEFINITIONS

      3.1 "Patent Rights," as used in this Agreement, shall mean (i) all claims
of patent applications and issued patents which are now owned by RCT in the
United States and in foreign countries, or to which RCT has rights, and which
read on Low TSNA Tobacco or which read on the Know-How; (ii) all claims of
such patent applications and issued patents which may hereafter be filed or
issued, or of which RCT or Williams or O'Donnell may hereafter become owner, or
to which any of them may hereafter acquire rights during the term of this
Agreement, and which read on or relate to Low TSNA Tobacco or which read on or
relate to the Know-How; (iii) any inventions, conceived or reduced to practice
before the date of this Agreement or during the term of this Agreement, and
thereafter made the subject of a patent application, relating to the production,
treatment or curing of tobacco, or a method of manufacturing a product
containing tobacco, or of extracting one or more substances from tobacco for the
purpose of incorporating such substance or substances in a product or products,
and which RCT, Williams or O'Donnell may hereafter own or acquire rights to.
"Patent Rights" shall include, without limitation, U.S. Patents 5,803,081,
5,845,647, 6,135,121, 6,202,649, and any and all divisions, continuations,
continuations-in-part, and reissues thereof.

      3.2 "Know-How," as used in this Agreement shall mean all information,
including without limitation trade secrets, whether or not patentable, relating
to, used in, or useful in connection with, Low TSNA Tobacco, or any methods or
devices which are claimed to result in

                                       2
<PAGE>

and be useful in connection with tobacco or any product containing tobacco that
is less toxic and potentially less harmful to humans, or for which therapeutic
claims are made, whether any such information is now in the possession of RCT,
Williams or O'Donnell, or developed or acquired by any of them during the term
of this Agreement.

      3.3 "Low TSNA Tobacco" shall mean tobacco in which the formation of one or
more tobacco-specific nitrosamines has been substantially prevented during the
tobacco curing process. "Low TSNA Tobacco" shall also refer to any process or
device used to product Low TSNA Tobacco.

      3.4 "Product" shall mean any article, composition, apparatus, substance,
chemical, material, method or services which is made, used, distributed or sold
which: (i) is covered in whole or in part by one or more pending or unexpired
claims contained in any patent included in the Patent Rights; (ii) is pictured
using a method or process which is covered in whole or in part by one or more
pending or unexpired claims contained in any patent included in the Patent
Rights and/or which utilizes any of the Know-How; or (iii) the use of which
is covered in whole or in part by one or more pending or unexpired claims
contained in any patent included in the Patent Rights. For purpose of this
definition, a Product is covered by a pending or unexpired claim of a patent if
in the course of manufacture, use, distribution or sale, it would, in the
absence of this Agreement, infringe one or more claims of a patent which has not
been held invalid by a court from which no appeal can be taken.

      3.5 "License," shall mean the license granted in Section 4 hereof.

      3.6 "FDA" shall mean the United States Food and Drug Administration.

      3.7 "Licensor Affiliate" shall mean any entity controlled by Williams
and/or O'Donnell.

      3.8 "Royalties" shall mean the royalties payable by SSI to RCT as set
forth in Section 5.1 of this Agreement.

                                       3
<PAGE>

      3.9 "Affiliated Sublicensee" shall mean an entity which SSI owns or
controls or which owns or controls SSI or which is under the common ownership or
control of another Affiliated Sublicensee.

      3.10 "Royalty Income" shall mean all royalties, license fees and other
revenue howsoever characterized earned by SSI and any Affiliate Sublicensee from
any third party other than SSI and any Affiliated Sublicensee by reason of or
pursuant to a sublicense, or rights in the nature of a sublicense, granted under
the License or otherwise.

      3.11 "Net Sales Price" shall mean the gross sales price of a Product, less
any rebates actually paid, discounts and allowances actually taken, and returns
to the extent credit is given or paid. There shall be no deduction from Net
Sales Price of any federal excise or sales taxes payable on account of the sale
of Products or otherwise, including without limitation tobacco product excise
taxes.

4. GRANT OF LICENSE

      4.1 Subject to the terms and conditions of this Agreement, RCT hereby
grants and agrees to grant to SSI an exclusive and irrevocable license, with the
right to grant sublicenses as provided in this Agreement, under the Patent
Rights and under the Know-How, to make, have made, use, sell or otherwise
dispose of, or deal in, any Product anywhere in the world.

5. ROYALTIES

      5.1 In consideration of the grant of License hereunder, SSI agrees to pay
to RCT (a) a royalty of two percent (2%) on the Net Sales Price on the sale of
Products, less any Deductions, by SSI and any Affiliated Sublicensee, and (b) a
royalty of six percent (6%) on the Royalty Income, less any Deductions earned by
SSI and any Affiliated Sublicensee. As used herein, "Deductions" shall refer to
all expenses accruable under generally accepted accounting practices for (i) the
cost of applying for, obtaining, maintaining, enforcing and defending any
Patents

                                       4
<PAGE>

Rights, (ii) research and development costs related to any Product or any
potential Product, or any improvement thereto, or any technology which would be
encompassed within the definition of Patent Rights or Know-How. Only those
Deductions accruable from and after January 1, 1998, shall be deducted from the
Net Sales Price in order to determine the amount of Royalties earned for that
period.

      5.2 All Royalties shall be paid by SSI to RCT on a quarterly basis within
thirty (30) days after the end of each calendar quarter in which such Royalties
are accrued. Each such payment shall be accompanied by an accounting statement,
which shall include:

      (i) the quantity and classification (e.g., tobacco, cigarettes, snuff,
chewing tobacco, or cigars) of Products sold;

      (ii) the aggregate Net Sales Price of each classification of Products sold
and the aggregate Net Sales Price of all Products sold;

      (iii) the amount of Royalty Income earned, broken down by identity of
sublicensee and a description of the transaction by which the Royalty Income has
been earned, including, if applicable, a copy of any royalty report or similar
report received by SSI or any Affiliated Sublicensee;

      (iv) the amount and classification (i.e., whether patent-related expense
or research and development expense) of Deductions, and the aggregate amount of
all Deductions; and

      (v) the total of all Royalties payable to RCT.

      5.3 SSI and all Affiliated Sublicensees shall keep proper books of account
showing sales of Products. RCT's designated auditing firm shall have access to
the books and records of SSI and all Affiliated Sublicensee at all reasonable
times to independently determine the amount of Royalties payable hereunder, but
for no other purpose. Under no circumstances shall RCT require such an
examination more often than once a calendar year. All information obtained by
RCT and its auditing firm shall be kept strictly confidential by RCT and its
auditing firm.

                                       5
<PAGE>

6. RETENTION OF RIGHTS

      6.1 Notwithstanding the exclusive license granted in Section 4, RCT will
have the absolute, nontransferable right to use the technology covered by the
Patent Rights and Know-How and all improvements thereof, for conducting
research.

7. PATENT PROSECUTION

      7.1 SSI shall diligently prosecute at SSI's discretion and at SSI's
expense all United States patent applications, and foreign patent applications
in such foreign jurisdictions as SSI chooses, included within the Patent Rights,
and shall otherwise at its discretion take such action as shall perfect or
effect its title to the Patent Rights. SSI shall provide RCT with copies of all
U.S. and foreign patent applications included in Patent Rights, and, generally,
shall provide to RCT such other information regarding the Patent Rights as RCT
may request from time to time. All patent prosecution information supplied by
SSI to RCT hereunder shall be subject to the confidentiality provisions of this
Agreement.

      7.2 The Parties understand that International Application No.
PCT/US99/20909 has been assigned by Williams to SSI. SSI shall have the right to
file for and obtain patents based on said International Application No.
PCT/US99/20209 in the name of Star Scientific, Inc. in such foreign
jurisdictions as SSI chooses. In consideration of the assignment, SSI shall pay
a royalty to RCT for foreign patents based on International Application No.
PCT/US99/20209 in the same manner as provided for in Section 5.

8. PATENT INFRINGEMENT

      8.1 SSI shall promptly notify RCT of all claims, allegations and
notifications of infringement of third party patents. Except for the placing in
escrow of a portion of royalties as

                                       6
<PAGE>

referred to hereinafter, RCT shall have no obligation or liability in the event
that legal action is brought against SSI for patent infringement. Such
obligation and liability shall be borne by SSI. SSI may choose legal counsel and
defend the patent infringement lawsuit. During such lawsuit, SSI may place all
Royalties in an interest-bearing escrow account. The escrow account shall be
established in a bank mutually acceptable to both parties under escrow
instructions insulating the finds from claims of any creditor. Upon termination
of the action, one-half (1/2) of any judgment amount, reasonable attorneys' fees
and costs, may be paid from this escrow account. In addition, should the
settlement of any such patent infringement lawsuit involve payment of royalties
by SSI to a third party for the continued right to manufacture, use, and sell a
Product, then funds in the escrow account and royalties payable to RCT may be
applied against up to one-half (1/2) of such royalties to a third party. Any
funds thereafter remaining in the escrow shall be paid to RCT. The above shall
constitute RCT's sole liability and responsibility in the event of such action.
During the patent infringement litigation each Party shall keep the other Party
informed in writing of significant developments in the lawsuit.

      8.2 SSI shall promptly notify RCT of any potential infringement of any of
the Patent Rights. In the event that a third party infringes on any of the
Patent Rights, SSI shall have the right but not an obligation to bring legal
action to enforce any such patent, including the right to bring suit in the name
of Star Scientific, Inc. If SSI exercises such right, SSI shall select legal
counsel and pay all legal fees and costs of prosecution of such action. In the
event that SSI shall choose not to take such action, RCT shall have the right,
at its option and at it own expense, to prosecute any action to enjoin such
infringement or to prosecute any claim for damages. The party prosecuting any
such action shall be entitled to retain any funds received as a result of
settlement or judgment of such action. The Parties may also agree to jointly
pursue infringers. After deduction and payment to the Parties of their
respective costs and fees (including without limitation reasonable attorneys'
fees) incurred in prosecuting any such actions, the net funds obtained as a
result of settlement or of judgment of any such jointly prosecuted action shall
be divided in the following manner: 25% of all net funds shall be divided
equally by the Parties and 75% of all the net funds shall be divided between the
Parties in the proportion to the amount of legal fees and costs incurred by the
Parties in the prosecution of such actions. If funds are

                                       7
<PAGE>

insufficient to pay all cost and fees then all of the funds shall be paid to the
Parties in said proportion.

      8.3 During any litigation described in Section 8, each Party shall keep
the other Party timely informed of any significant development in the litigation
and provide all reasonably requested technical assistance. During any such
controversy, full royalty payment shall continue, except as otherwise provided
herein.

9. SUBLICENSES

      9.1 SSI may sublicense any of the Patent Rights; provided that, with
respect to any sublicense to an Affiliated Sublicensee, it shall be a condition
precedent to any such sublicense that such Affiliated Sublicensee shall agree in
writing to be jointly and severally obligated and liable to RCT for all of the
obligations of SSI under this Agreement, and that no further right to
sublicense may be granted to an Affiliated Sublicensee and further provided that
all sublicensees shall agree to the terms of Section 10 hereof.

10. PATENT MARKING

      10.1 SSI, all Affiliated Sublicensees and any other sublicensee shall use
reasonable efforts to place all appropriate patent and other intellectual
property notices, markings and indicia on product and marketing literature for
any Products as needed to protect the patent and other intellectual property
rights of RCT and right for damage for infringement thereof.

11. TERMINATION

      11.1 SSI may terminate this Agreement at any time, for any reason, by
providing RCT not less than thirty (30) days prior written notice thereof.

                                       8
<PAGE>

      11.2 RCT may terminate his Agreement upon the occurrence of any of the
following:

      (i) A default in the payment of Royalties when due and payable, or a
failure to submit to RCT when due a true and complete accounting statement
pursuant to Section 5.2 of this Agreement, which default or failure continues
for a period of at least thirty (30) days after RCT has given to SSI written
notice of such default or failure.

      (ii) A material breach of any other obligation of SSI under this
Agreement, which breach shall not have cured within sixty days after RCT has
given to SSI written notice of such breach, in which notice RCT shall have
specified in reasonable detail the nature of such breach. For pursues of
determining materiality, and provided the nature of the breach may be measured
in monetary terms, a breach shall be deemed "material" if such breach results in
a loss of Royalties exceeding $100,000.

12. REMEDIES

      12.1 SSI acknowledges and agrees that any violation of this Agreement by
SSI would result in irreparable harm to RCT. Accordingly, SSI consents and
agrees that, if SSI violates any of the provisions of this Agreement, RCT shall
be entitled, in addition to other remedies available to it, to an injunction to
be issued by any court of competent jurisdiction restraining SSI from committing
or continuing any violation of this Agreement, without the need for posting any
bond or any other undertaking.

13. NOTICES, REPORTS AND PAYMENTS

      13.1 Any notice, report or payment permitted or required under this
Agreement shall be in writing, and shall be sent or delivered to the receiving
party at the address set forth below or at such address as either Party may from
time to time designate in writing.

                                       9
<PAGE>

If RCT to: Regent Court Technologies            If SSI to: Star Scientific, Inc.
           c/o Francis E. O'Donnell, Jr., M.D.             7475 Wisconsin Avenue
           709 The Hamptons Lane                           Suite 850
           Chesterfield, MO 63017                          Bethesda, Maryland
                                                            20814
                                                           c/o Paul L. Perito,
                                                           Chairman, President
                                                           and Chief
                                                           Operating Officer

14. PARAGRAPH HEADINGS

      14.1 Paragraph headings are for the convenience of this Agreement only and
shall not add to or detract from any of the terms or provisions.

15. SEVERABILITY

      15.1 If any provision of this Agreement is held invalid under any law
applicable to the Parties, Affiliated Sublicensees and other sublicensees
and/or assignees, that provision shall be considered severable and its
invalidity shall not affect the remainder of this Agreement, which shall
continue in full force and effect.

16. CONTROLLING LAW, JURISDICTION AND VENUE

      16.1 This Agreement shall be deemed to be executed and to be performed in
the Commonwealth of Virginia, and shall be construed in accordance with the laws
of the Commonwealth of Virginia as to all matters, including but not limited to
matter of validity, constriction, effect and performance. In the event of any
controversy, claim or dispute between the Parties hereto arising out of or
relating to this Agreement, such controversy, claim or dispute may be tried
exclusively in the courts of the Commonwealth of Virginia or in the United
States Federal District Court located in, or closest to, Richmond, Virginia, as
either party may elect.

                                       10
<PAGE>

Each of the Parties hereby waives any defense of lack of in personam
jurisdiction, improper venue and forum non conveniens, and agrees that service
of process of such court may be made upon each of them by personal delivery or
by mailing certified or registered mail, return receipt requested, to the other
Party at the address provided for in Section 13 hereof. Both Parties hereby
submit to the jurisdiction of the court so selected, to the exclusion of any
other courts which may have had jurisdiction apart from this Section 16.

17. TERM OF THE AGREEMENT

      17.1 Except as otherwise terminated pursuant to the other provisions of
this Agreement, this Agreement shall terminate upon expiration of the last to
expire of the Patent Rights.

18. NEGATION OF WARRANTIES

      18.1 Nothing in this Agreement shall be construed as:

      (i.) a warranty or representation by RCT as to the validity or scope of
any of the Patent Rights; or

      (ii.) a warranty or representation that any Products made, used, sold or
otherwise disposed of under any license granted in this Agreement is or will be
free from infringement of patents of third parties; or

      (iii.) an obligation to bring or prosecute actions or suits against third
parties for infringement; or

      (iv.) conferring the rights to use in advertising, publicity or otherwise
any trademark, trade name, or names or any contraction, abbreviation, simulation
or adoption thereof, of RCT; or

                                       11
<PAGE>

      (v.) any obligation to furnish any know-how not provided.

      18.2 RCT MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, nor does RCT represent that the rights granted
hereunder will result in Products that are commercially successful.

      18.3 SSI further agrees that it will not rely upon technical information
provided by RCT in developing and manufacturing any Products hereunder, but will
independently test, analyze and evaluate all Products prior to manufacture and
distribution of such Products.

19. INDEMNTIIY

      19.1 SSI shall defend, indemnify and hold harmless RCT and its partners,
employees, and agents and Williams and O'Donnell, and their respective
successors, heirs and assigns (the "Indemnitees"), against all liabilities,
demands, losses, costs, and expenses (including without limitation attorneys'
fees) incurred by or imposed upon the Indemnitees or any one of them in
connection with any claims, suits, actions, demands or judgments arising out of
any theory of liability (including but not limited to, actions in the form of
tort, warranty, or strict liability) for death, personal injury, illness, or
property damage arising from SSI's use, sale, or other disposition of any
Product, or exercise of any of rights under the License.

      19.2 SSI agrees, at its own expense, to provide attorneys reasonably
acceptable to RCT to defend against any actions brought or filed against any
party indemnified hereunder with respect to the subject of indemnity contained
herein, whether or not such actions are rightfully brought.

      19.3 As a condition precedent to a grant of permission by RCT for SSI to
sublicense any of the Patent Rights herein after the date of this Agreement, the
prospective sublicensee shall agree to indemnify SSI and RCT to the same extent
and degree as SSI has agreed to indemnify RCT herein.

                                       12
<PAGE>

20. ATTORNEYS' FEES

      20.1 In any action on or concerning this Agreement, the prevailing Party
shall be awarded its reasonable attorneys' fees, cost and necessary
disbursements, to be paid by the non-prevailing Party.

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

                                REGENT COURT TECHNOLOGIES

                              By: /s/ Francis E. O'Donnell
                                 --------------------------------------
                                Francis E. O'Donnell, General Partner

                                STAR SCIENTIFIC, INC.

                              By: /s/ Paul L. Perito
                                 ---------------------------------------
                                Paul L. Perito, Chairman, President and
                                Chief Operating Officer

                                       13

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