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                                                                   Exhibit 10.21

                   LICENSE AGREEMENT OF INTELLECTUAL PROPERTY

         THIS LICENSE  AGREEMENT OF INTELLECTUAL  PROPERTY (the  "Agreement") on
the date as appears on the Signature  Page of this  Agreement is for the License
of Intellectual Property, by and between

THE PARTIES:

         VMM, LLC a Limited  Liability  Company organized and existing under the
laws of the State of North Carolina; and

         QT 5, INC., a corporation  organized and existing under the laws of the
State of Delaware (hereinafter referred to as the "LICENSEE").

                                    PREMISES:

         WHEREAS, LICENSOR has developed and is the proprietary owner of certain
rights,  titles and interest in and to technology and information which it owns,
or lawfully  possesses for itself or holds valid licenses from others,  which it
considers highly proprietary (the "CONFIDENTIAL  INFORMATION") regarding certain
technology,  and has developed and is the proprietary  owner of certain patented
process along with certain rights, titles and interests in and to the technology
and  information  which it owns,  or  lawfully  possesses.  The list of  Patents
LICENSOR  owns is attached as Exhibit A. the Patent  Pending List is attached as
Exhibit B, the FDA 510K  Numbers  are  attached  as  Exhibit C and the  Approved
Platform Products is attached as Exhibit D.

         WHEREAS,   LICENSOR   has  obtained   from  the  U.S.   Food  and  Drug
Administration  (FDA), under the Trade Name and Devise Name B "DrugStop" FDA No.
K991465 - Regulatory Class II approval for  over-the-counter  (OTC) sales to the
general  public,  together with certain other tests trade named "Target  System"
This License includes all application of the Target System presently utilized or
which may be developed in the future by either Party to this Agreement.

         WHEREAS,  LICENSOR'S  rights  include  the right to utilize  the patent
process in it's manufacturing of a home drug-screening  test. LICENSOR provides,
if necessary,  a confirmation service at an additional cost to the customer. The
FDA approved the device that is a preliminary  screen to detect and identify the
presence of drugs within the body using a urine  sample.  The device is designed
to detect the presence of COC (Cocaine, Crack), THC (Marijuana,  Pot, Cannabis),
MOR (Opiates, Heroin, Morphine), AMP (Amphetamine,  Speed, Metamphetamine),  PCP
(Angel Dust).

         WHEREAS,  LICENSEE is a marketing  company that has the  capability  to
Brand  Develop,  Manage and  provide  sales  Strategy  for all aspects of a full
marketing  program  to  sell  and  distribute  all  of  LICENSOR'S  Intellectual
Properties  as set forth in  Exhibits A, B, C and D under  LICENSEE'S  own Brand
Names and under its trademark "Quick Test 5" or any other Brand Names designated
by LICENSEE.

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         WHEREAS,  LICENSEE desires to obtain the exclusive rights from LICENSOR
to sell and distribute all Products under its own brand name or names  including
all existing Brand names of LICENSOR.

         WHEREAS,  it is the  intent  of the  LICENSEE  to file with the FDA for
clearance to market and sell all the Products under its own Brand Name or Names.
LICENSOR herein agrees to assist, provide documentation, and join in any and all
applications for approval required by the FDA.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants and agreements  contained  herein,  and intending to be legally bound,
LICENSOR and LICENSEE hereby agree as follows:

                                   DEFINITIONS

         1.1 Definitions. Whenever used in this Agreement, the Recital above, or
any Exhibit or Schedule hereto,  unless otherwise required by the subject matter
or the  context,  the  following  terms  shall  have the  meanings  respectively
ascribed to them:

                  (a)  "Affiliate,"  means, in respect to any Person,  any other
Person  that  directly  or  indirectly,  through  one  or  more  intermediaries,
controls, is controlled by, or is under common control with such first Person.

                  (b) "Ancillary Agreements: None at the present time.

                  (c) "Best  knowledge"  means,  in  respect  of a Person,  that
nothing has come to the  attention of that Person that gives such Person  actual
knowledge  of the  existence  or absence  of any  material  information  or fact
bearing on the matter.

                  (d)  "Claim"  means a written  notice  asserting a breach of a
representation,  warranty or covenant  specified  in the  Agreement  which shall
reasonably set forth, in light of the information then known to the party giving
such notice,  a description  of and an estimate (if then  reasonable to make) of
the amount involved in such breach or for a claim for injunctive relief.

                  (e)  "Confidential  Information"  means  any  confidential  or
secret information or data, whether or not reduced to writing, pertaining to the
license product, including scientific or technical knowledge,  expertise, skill,
practice,  proprietary rights,  copyrights,  patented or un-patented inventions,
formulas,  trade secrets,  manufacturing  techniques and procedures,  analytical
methodology,  processes,  and data and  shall  include  any and all  technology,
pending and existing  intellectual  property matters,  including patenting,  and
copyrighting  of LICENSOR'S  product lines,  technologies  and  inventions,  and
future plans and operations done in support of such future plans and operations.

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         Provided  however,  that in respect of the  obligations of either party
hereunder, the term "Confidential Information" shall not include any information
that (i) is now or  subsequently  enters the public  domain  through means other
than direct or indirect  disclosure by a party in violation of the terms of this
Agreement or (ii) is lawfully  communicated to a party by a third party, free of
any confidentiality obligation, subsequent to the date hereof.

                  "Completion  Date" means the date upon which QT 5, Inc.  shall
have received written notice to the effect that the FDA has issued to QT 5, Inc.
a Regulatory Clearance in the Field of Activity

                  "Competing Person" means any Person a substantial  majority of
whose  business  is in the same or similar  business  of  LICENSEE  and who is a
direct  competitor of LICENSEE or any of its Affiliates  that is an Affiliate of
such Person

                  "Control"  means (i) when used in respect of any  Person,  the
possession,  directly  or  indirectly,  of the  power to  direct  or  cause  the
direction of the  management  and policies of such entity,  whether  through the
ownership of voting securities,  by contract or otherwise, and (ii) when used in
respect of any security, the possession, directly or indirectly, of the power to
vote,  or to direct the voting of, such  security or the power to dispose of, or
to direct the disposition of, such security.

                  "Controlling   Person"  means,  in  respect  of  any  business
organization  or other legal entity,  a Person having  control of such business,
organization  or entity,  and any  second  Person  having  Control of such first
Person,  and so on in an  ascending  order up to and  including  the last Person
having Control of the next preceding Person who is not subject to the Control of
any other Person.

                  "Enhancements"  means any  change,  correction,  modification,
improvement, enhancement, addition or revision to the Licensed Products.

                  "FDA  Clearance"  means an application to the FDA for the sale
or other  distribution of FDA 510k small device for  professional use and/or OTC
for the Patent Target  System  process for the HIV I & II immuno assay HIV Phase
III, as well as all other FDA Clearances obtained by either LICENSOR or LICENSEE
pursuant to this Agreement.

                  "Governmental  Authority" means any governmental  body, agency
or official of any county or political subdivision of any country..

                  "Indemnified  Party"  means  the  Person  who is  entitled  to
indemnification  for, and to be held  harmless in respect of, a claim,  cause of
action or any other proceedings,  as provided under the terms and subject to the
conditions of this Agreement.

                  "Indemnifying  Party" means the party hereto that is obligated
to indemnify and to hold harmless another Person in respect of a claim, cause of
action or any other  proceeding,  as provided under the terms and subject to the
conditions of this Agreement.

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                  "Intellectual  Property" means all intellectual and industrial
property and  includes  (i)  inventions  and patents for  inventions,  including
re-issue  thereof and  continuation  and  continuations  in part,  (ii) computer
programs,  (iii)  copyrights,  (iv) designs and  industrial  designs,  (v) trade
marks,  and any word,  symbol,  icon, logo or other indicia or origin adopted or
used in  connection  with the  license or service  and (vi)  trade  secrets  and
confidential information described in (d) above.

                  "Intellectual  Property  Rights"  means all  intellectual  and
industrial  property  and other  proprietary  rights in respect of  Intellectual
Property, and includes all right to Intellectual Property.

                   "Know-How"   means   "The   Confidential   Information"   and
proprietary information,  including any patents, formula, pattern,  compilation,
method,  invention,  technique or process,  used in the creation of the Licensed
Product.

                  "Person" means a human being, partnership,  association, joint
venture,  corporation,  legal  representative,  trustee,  trustee in bankruptcy,
receiver or any other legal entity whatsoever.

                   "Licensed   Product"   means   those   certain   patents  and
proprietary rights of LICENSOR as described in Exhibits A, B, C and D.

                   "LICENSOR"  means  VMM  LLC,  a  Limited   Liability  Company
organized and existing under the laws of the State of North Carolina.

                   "LICENSEE  " means QT 5, Inc.  a  corporation  organized  and
existing under the laws of the State of
Delaware.

                   "Regulatory  Clearance"  means  (a)  (i)  in  the  case  of a
product, a clearance by the FDA and (ii) in the case of product clearance by the
FDA for the  sale or other  disposition  of the  patent  target  system  for its
specific and intended  use; or (b) in the event of any change in the  regulatory
process,  a clearance  similar to the foregoing for the sale and distribution of
said product.
                   "Third Party Claim" means,  in respect of the  obligations of
an  Indemnifying  Party  hereunder,  a claim asserted  against,  imposed upon or
incurred by the Indemnified Party by any third party.

                   "Term"  means  the  term of this  Agreement  as set  forth in
paragraph 2.2 (a) Term.

                  "Effective  Date" means the  commencement  of the Term of this
Agreement as set forth in paragraph 2.2 (b) below.

                  "Right of First  Refusal" means the right given to LICENSEE of
first refusal as set forth in paragraph 2.2 (c).

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                   Additional  Terms. The definitions in Section 1.1 shall apply
equally to both the singular and plural forms of the terms defined. Whenever the
context may require,  any pronoun  shall  include the  corresponding  masculine,
feminine and neuter forms. The words  "include,"  "includes" and "including" and
shall  be  deemed  to be  followed  by  the  phrase  "without  limitation."  All
references to "party" and "parties" shall be deemed references to the parties to
this  Agreement  and to a party's  successor in title  unless the context  shall
otherwise  require.  All references to Sections and  Paragraphs  shall be deemed
references  to Sections and  Paragraphs  of this  Agreement,  unless the context
shall otherwise  require.  All references herein to Schedules and Exhibits shall
be deemed to be references to the  Schedule(s)  and Exhibit(s)  attached to this
Agreement.  The terms  "this  Agreement",  "hereof",  "hereunder",  and  similar
expressions refer to this Agreement as a whole and not to any particular Article
or Section  or other  portion  hereof and  include  any  agreement  supplemental
hereto.  The  conjunction  "or"  shall  be  understood  in its  inclusive  sense
(and/or).

                   Headings . The division of this  Agreement  into Articles and
Sections and the insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this Agreement.

                                    ARTICLE 2

2.1      Granting of License.

         Subject to the terms and conditions of this Agreement,  LICENSOR hereby
grants  LICENSEE a right to utilize,  sell,  or resell all LICENSOR  Products as
specified in EXHIBITS A, B, C and D hereof under the LICENSEE'S own Trade Names,
Brand Names and  Trademark  Worldwide.  All  products  Licensed  herein that are
specifically  designated for the general public  consumption  (over the counter)
are  warranted  by  LICENSOR  to meet any and all  government  requirements  and
clearances for sale in the over-the-counter market.

2.2      Term

         2.2 (a) The Term of this Agreement shall be for one (1) year commencing
as of the Effective Date (defined  below).  This Agreement shall be extended for
four (4) additional  Terms of one (1) each on condition  that LICENSEE  performs
its sales  projections  after the  Effective  Date.  The Sales  Projections  are
attached to this Agreement as Exhibit "E" and incorporated  herein by reference.
All of the provisions of this Agreement  shall continue in full force and effect
during the extension period and any subsequent extension periods.

This Agreement shall be automatically  extended for an additional five (5) years
period so long as neither party causes a termination of this Agreement  pursuant
to the terms hereof.

Both Parties  recognize  that those certain  Products  that LICENSEE  intends to
first market and sell are presently not being  manufactured nor has the required
governmental authority cleared them. LICENSOR shall have the duty of providing a
manufacturer  for the Products listed in the Exhibits and shall have the duty to
obtain all  necessary  and  required  regulatory  clearances  for the  Products.
LICENSEE agrees to collaborate with LICENSOR in obtaining said clearances.

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         2.2  (b)  Effective  Date:  The  Term of this  Agreement  shall  become
effective  four (4) months after (a) all  regulatory  clearances  required shall
have been obtained for those Products to be manufactured listed in Exhibit A and
shall  remain in full  force and  effect and all  statutory  waiting  periods in
respect of the same shall have expired and no such clearances  shall contain any
conditions,  restrictions or requirements which LICENSEE  reasonably  determines
would either before or after the Effective  Time have a Material  Adverse Effect
on LICESSE in marketing the Products contemplated by this Agreement,  taken as a
whole and (b) LICENSOR has obtained a manufacturer to manufacturer said Products
consistent  with the  Pricing of the  Product as set forth in Sales  Projections
attached as Exhibit "E".

         2.2. (c) Right of First Refusal:  LICENSOR  herein shall have the right
to sell,  assign and transfer its Patent rights to any of the Patents  listed in
this  Agreement.  In the event that LICENSOR  receives an offer to purchase said
Patent  rights and decides to sell said  rights,  LICENOR  shall first offer the
right to purchase to LICENSEE for the price and the terms of the intended  sale.
LICENSEE  shall have  thirty (30) days from the date that  LICENSOR  delivers to
LICENSEE a copy of the offer in which to accept or reject.  Failure by  LICENSEE
to notify  LICENSOR  shall be construed as a refusal of LICENSEE to exercise its
right of first refusal and LICENSOR shall have the right to sell said Patents.

                  2.3      Private Label Reseller

         LICENSOR  acknowledges  that it is a PRIVATE LABEL  RESELLER  (PLR) and
that LICENSEE shall purchase the products under this Agreement for resale in the
over the counter  (retail)  market  together with any and all direct or indirect
markets  that  LICENSEE  shall  develop as part of its  marketing  program.  The
LICENSEE shall have the following rights:

                  (a) The right to utilize as a private  label any and all label
approved by the FDA for LICENSOR with  LICENSEE'S  name, logo or any other label
thereafter  selected by LICENSEE  and  approved by the FDA. In that  connection,
LICENSOR shall provide LICENSEE with copies of all documents provided to the FDA
in which it obtained  approval  for any of the  Licensed  Products and join with
LICENSEE,  if necessary,  in any  application  for said approval for  LICENSEE'S
label approval.

                  (b) Re-market to unaffiliated third party users in the regular
course of business, and/or;

                  (c) LICENSEE  may include  LICENSOR  product(s)  as part of an
integrated set of products sold direct (retail outlets) or through third parties
as a comprehensive product service or consumer solution.

         2.4      Use of Trademark

         LICENSOR hereby grants LICENSEE the right to use and display LICENSEE'S
trademarks, service marks, and trademarks and trade names that are applicable to
LICENSOR Product(s) under this private labeling agreement. LICENSEE will not use
any of LICENSOR'S Marks as part of its corporate, trade or other business name.

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                                    ARTICLE 3

                  3.1      Products

         LICENSOR'S  Licensed  Products are specified in EXHIBITS A, B, C, and D
attached hereof.

                                    ARTICLE 5
                 REPRESENTATIONS AND WARRANTIES OF THE LICENSOR

         To induce the  LICENSEE  to acquire the License  rights,  the  LICENSOR
hereby makes the following representations and warranties:

         5.1 Organization.  Standing and Qualifications.  The LICENSOR, VMM, LLC
is a Limited  Liability  company,  duly organized,  validly existing and in good
standing  under the laws of the State of North  Carolina.  The LICENSOR has full
power and authority to carry on its business as it is now being conducted and to
own the  property and assets it now owns.  The  Individual  LICENSORS  have full
rights to enter into this Agreement.

         5.2  Authorization.  The  LICENSOR  that is a LLC has  full  power  and
authority to execute and deliver this Agreement to consummate  the  transactions
contemplated  hereby. The execution,  delivery and performance of this Agreement
and the  consummation  of the  transactions  contemplated  hereby have been duly
authorized by all necessary  action required by law, the LICENSOR'S  Articles or
otherwise to be taken by the LICENSOR to authorize the execution and delivery of
this Agreement and the agreements  specified  herein or the  consummation of the
transactions contemplated hereby and thereby.

         5.3 Binding Agreements. This Agreement constitutes the legal, valid and
binding obligations of the LICENSOR, enforceable in accordance with its terms.

         5.4 No Violation. Neither the execution and delivery by the LICENSOR of
this  Agreement  nor  the  consummation  by the  LICENSOR  of  the  transactions
contemplated  hereby will (a) violate any provision of the Articles of VMM, LLC;
(b) conflict with or violate any statute, law, regulation, rule, order, judgment
or decree of any court or Governmental  Authority  binding upon or applicable to
the  LICENSOR.  The  LICENSOR  is not a party to,  nor is it bound  by,  and the
LICENSOR  Product  Line are not subject to, any  agreement  or  commitment  that
prohibits the  execution  and delivery by the LICENSEE of this  Agreement or the
consummation of the transactions contemplated hereby.

         5.5  Litigation.  No  action,  suit,  inquiry,  audit,  or to the  Best
Knowledge of the LICENSOR no proceeding or investigation, by or before any court
or governmental or other  regulatory or  administrative  agency or commission is
currently pending or, to the Best Knowledge of the LICENSOR threatened, against,
involving  or arising in  connection  with the  LICENSOR'S  Product Line or that
questions or challenges the validity of this Agreement or any action taken or to
be taken by the LICENSOR pursuant to this Agreement.

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         5.6 Right to License LICENSOR'S Product Line. LICENSOR has the right to
license the  intellectual  property as  described in Exhibits A, B, C, and D and
the right to manufacture  Products  utilizing said intellectual  property rights
and patents.

         5.7 Intellectual Property Rights.

                  To the Best Knowledge of the LICENSOR,  the License rights and
the use thereof  will not infringe  upon or violate any Patent and  Intellectual
Property  Right of any Third  Person.  Further,  LICENSOR  herein agrees that it
shall renew any and all patents  required to insure the rights of both  LICENSOR
and LICENSEE under this Agreement.

                                    ARTICLE 6

                 REPRESENTATIONS AND WARRANTIES OF THE LICENSEE

To induce the LICENSOR to enter into this License  Agreement  with the LICENSEE,
the LICENSEE hereby represents and warrants to the LICENSOR as follows:

         6.1  Corporate  Organization  and  Good  Standing.  The  LICENSEE  is a
Company, duly organized, validly existing and in good standing under the laws of
the State of Delaware.

         6.2 Authorization.  The LICENSEE has full corporate power and authority
to execute  and  deliver  this  Agreement  and to  consummate  the  transactions
contemplated  hereby. The execution,  delivery and performance of this Agreement
and the  consummation of the transactions  contemplated  hereby and thereby have
been duly  authorized by all  necessary  corporate  action  required by law, the
LICENSEE'S  Articles of Incorporation,  or otherwise to be taken by the LICENSEE
to authorize the execution and delivery of this  Agreement and the  consummation
of the transactions contemplated hereby.

         6.3 Binding Agreements. This Agreement constitutes the legal, valid and
binding agreements of the LICENSEE enforceable in accordance with its terms.

         6.4 No Violation. Neither the execution and delivery by the LICENSEE of
this  Agreement  nor  the  consummation  by the  LICENSEE  of  the  transactions
contemplated  hereby,  will  (a)  violate  any  provisions  of the  Articles  of
Incorporation  of the LICENSEE;  (b) conflict with or violate any statute,  law,
regulation,  rule,  order,  judgment  or  decree  of any  court or  Governmental
Authority binding upon or applicable to the LICENSEE or by which the property or
assets of the LICENSEE are bound or affected.

         6.5  Litigation.  No  action,  suit,  inquiry,  audit,  or to the  Best
Knowledge of the LICENSEE no proceeding or investigation, by or before any court
or governmental or other  regulatory or  administrative  agency or commission is
currently pending or, to the Best Knowledge of the LICENSEE threatened, against,
involving  or  arising  in  connection  with the  LICENSEE  entering  into  this
Agreement or that  questions or challenges the validity of this Agreement or any
action taken or to be taken by the LICENSEE pursuant to this Agreement.

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                                    ARTICLE 7
                            COVENANTS OF THE PARTIES

         7.1 Cooperation.

                   (a) Each party shall  cooperate  reasonably with the other in
preparing and filing all notices,  applications,  reports and other  instruments
and documents  which are required by any statute,  rule,  regulation or order of
any Governmental  Authority in connection with the transactions  contemplated by
this  Agreement,  including the Private  Label of the licensed  Product with the
FDA.

                  (b) LICENSEE agrees not to use or exploit  LICENSOR'S  Product
Line in a manner that can be reasonably  foreseen to bring it into  disrepute or
materially diminish the value of exploiting such Product Line in connection with
the marketing, promotion, distribution, sale, licensing or use of the Products.

                                    ARTICLE 8

                            CONFIDENTIAL INFORMATION

         8.1  Confidentiality of Intellectual  Property of LICENSOR and Customer
Proprietary Marketing Data of LICENSEE

         It is expressly  understood and agreed that all  intellectual  property
and data furnished to LICENSEE by LICENSOR or any  information or data regarding
customers  or data  provided by  LICENSEE  to  LICENSOR  and such data as may be
provided by one to the other  regarding  and  including  that  required  for the
proper  marketing,  sale or re-sale of its products,  all of which constitutes a
valuable  intellectual  proprietary  property and trade secret(s) of LICENSOR or
LICENSEE,  as the respective  party providing such data has divulged.  Providing
such  material,  under any  circumstances,  shall not  constitute a grant of any
right of reproduction, manufacturing, distributing, resale, re-licensing (except
as later set forth) or ownership  in any manner  whatsoever.  Both  LICENSEE and
LICENSOR agree that:

         (a) To observe complete  confidentiality  with regard to all aspects of
such data including,  without limitation,  agreeing not to disclose or otherwise
permit any other person or entity access to, in any manner, any such data in any
form  whatsoever.  Such  disclosure  or access  shall  only be  permitted  to an
employee of LICENSOR  or LICENSEE as the case might be of the  Marketing  Plans,
Business  Relationships,  Automated Customer Service (CRM) Systems and any other
proprietary  business or client  information  as permitted  and on the terms and
conditions defined in this License Agreement;

         (b) To ensure that both  LICENSOR  and  LICENSEE  and their  respective
employees,  agents,  representatives,  independent  contractors,  customers, sub
contractors or sub  LICENSEE'S and business  invitee's and guests are advised of
the  confidential  nature of such data and to insure by  agreement  or otherwise
that they are prohibited from copying or revealing,  for any purpose whatsoever,
the contents of the data;

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         (c) LICENSEE  shall not alter or remove any  copyright  or  proprietary
rights notice of  identification,  which indicates  LICENSOR'S  ownership of the
Product.  LICENSOR shall not alter or remove any proprietary  rights,  notice of
identification, which indicates LICENSEE'S confidential data, including customer
data:

         (d) Each  respective  party agrees to notify the other  promptly and in
writing of the circumstances surrounding any possession, use or knowledge of any
such data of which either  LICENSOR or LICENSEE  has  knowledge by any person or
entity other than those authorized;

         (e) Each respective party agrees to take any and all actions reasonably
necessary or desirable to ensure continued confidentiality and protection of all
such  data and to  prevent  access to such  data by any  person  or  entity  not
authorized by this section.

         Should  this  Agreement  terminate  for any reason  (including  without
limitation,  breach  by  LICENSEE  of  any of its  obligations  hereunder),  the
confidentiality  provisions of this Agreement  shall survive the  termination of
this Agreement and shall continue to be binding upon both LICENSOR and LICENSEE.

                                    ARTICLE 9
                       PROTECTION OF THE LICENSOR'S RIGHTS

         9.1 Notice of Infringement or Unauthorized Use. LICENSEE shall promptly
inform LICENSOR in writing of any act of infringement,  unauthorized use, piracy
or misappropriation  of, or breach of any confidentiality  agreement  pertaining
to, or in any way affecting, the Licensed Property, or any Enhancements thereto,
that are discovered by LICENSEE or are otherwise brought to its attention.  Each
party shall promptly inform the other party in writing of any notice of claim or
action,  or any  threatened  claim or action,  against either party by any third
Person arising out of in any way related to the Licensed Product.

         9.2      Institution. Prosecution and Defense of Claims.
                  ----------------------------------------------

                  (a) (i)  Promptly  following  the  delivery to the LICENSOR of
notice  from the  LICENSEE  of any act of any  infringement,  unauthorized  use,
piracy or  misappropriation  of, or breach of any  confidentiality  agreement or
affecting  the  Licensed  Property,  or, in the case  where  such  infringement,
unauthorized  use,  piracy  misappropriation  or  breach  is  discovered  by the
LICENSEE or is otherwise  brought to its attention and the LICENSEE  provides to
the LICENSOR  written notice  thereof,  then promptly  following the delivery of
such  notice to the  LICENSOR,  the  LICENSOR  shall take such steps as shall be
necessary  in order to protect  the  LICENSEE  and the  LICENSOR'S  rights  with
respect to the said Licensed Property, respectively,  including, but not limited
to, instituting or authorizing others to institute any claim, suit or proceeding
at law or in equity arising out of or related to the infringement,  unauthorized
use, piracy or misappropriation  of, or breach of any confidentiality  agreement
pertaining to, or in any way affecting the Licensed Property.

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                  (ii) The institution,  prosecution, maintenance and control of
any claim,  suit or proceeding at law or in equity arising out of or related to,
or in any way affecting the Licensed  Property shall be subject to the direction
and control of the LICENSOR,  at its sole cost and expense, and any and all sums
that may be received,  obtained,  collected or recovered in any such claim, suit
or proceeding,  whether by decree, judgment,  settlement or otherwise,  shall be
the sole and exclusive property of the LICENSOR.

         (b) If requested by  LICENSOR,  LICENSEE  shall join the LICENSOR as, a
party complainant in any such claim, suit or proceeding.

         (c)  LICENSOR  shall  defend,  at its own  expense,  any  claim  that a
Third-Party  shall  institute  effecting  the  Licensed  Product  granted to the
LICENSEE  herein.  LICENSEE  shall  cooperate  fully in the  defense of any such
claim,  suit or  proceeding  against  any party by a third  Person,  brought  in
connection with,  arising out of or related to the Licensed  Property,  and each
party shall  execute such  documents  and take such actions as may be reasonably
requested by the other party and consistent  with the rights and  obligations of
the parties hereunder.

         (d) LICENSOR shall indemnify LICENSEE for any costs,  damages, or other
expenses  suffered by LICENSEE in connection with any Third-Party  claiming that
said  Third-Party is the owner or has rights to the Licensed Product licensed to
LICENSEE.

         (e) LICENSEE, in its sole discretion, and with the consent of LICENSOR,
undertake to institute and prosecute any claim,  suit or proceeding at law or in
equity  arising  out of or  related  to, or in any way  affecting  the  Licensed
Property in which case it shall be subject to the  direction  and control of the
LICENSEE,  at its  sole  cost  and  expense,  and any and all  sums  that may be
received,   obtained,  collected  or  recovered  in  any  such  claim,  suit  or
proceeding,  whether by decree, judgment,  settlement or otherwise, shall be the
sole and exclusive property of the LICENSEE. If requested by LICENSEE,  LICENSOR
shall join the  LICENSEE  as, a party  complainant  in any such  claim,  suit or
proceeding

                                   ARTICLE 10

                                 INDEMNIFICATION

         10.1 Survival of Representations  and Warranties and Covenants.  Except
as otherwise  expressly provided herein, all representations and warranties made
by any party in this Agreement  shall survive from and after the date hereof and
shall continue in effect for a period of two (2) years from the date hereof, and
all covenants  made by any party in this  Agreement  shall survive  indefinitely
unless  otherwise  terminated  by the  parties.  Any  right  of  indemnification
pursuant   to  this   Article  13  in  respect  of  a  claimed   breach  of  any
representation,  warranty or covenant  shall expire at the date of expiration of
the representation, warranty or covenant claimed to be breached (the "Expiration
Date"),  unless on or prior to the Expiration Date a Claim has been made against
the party from whom indemnification is sought. If a Claim is timely made, it may
continue  to be  asserted  beyond  the  Expiration  Date of the  representation,
warranty or covenant to which such Claim relates.

                                       11
<PAGE>

         10.2     Indemnification.

                  (a) The LICENSOR  hereby agrees to indemnify and hold harmless
LICENSEE from and against all Damages asserted against, imposed upon or incurred
by LICENSEE,  directly or indirectly, by reason of or resulting from, any breach
or  inaccuracy of any  representation,  warranty or covenant of the LICENSOR set
forth in this Agreement.

                  (b) The LICENSEE  hereby agrees to indemnify and hold harmless
LICENSOR from and against all Damages asserted against, imposed upon or incurred
by LICENSOR,  directly or indirectly,  by reason of or resulting from any breach
or  inaccuracy of any  representation,  warranty or covenant of the LICENSEE set
forth in this Agreement.

         10.3 Limitation of Indemnification.  LICENSOR herein shall be obligated
to indemnify LICENSEE for only such Third-Party Claims that are established by a
court  judgment  or  order  against  LICENSEE   involving  and  limited  to  the
Proprietary   Patent(s)  or  any  Enhancements   thereto.  The  obligations  and
liabilities of LICENSOR to indemnify  LICENSEE shall be subject to the following
terms and conditions:

                  (a) LICENSOR shall  indemnify and save LICENSEE  harmless from
all liability for actual  infringement of any Third-Party  Patent(s)  claimed by
said  Third-Party  to be the  Patent(s)  used and  developed by  LICENSOR.  And,
LICENSOR shall indemnify and save LICENSEE  harmless from and against all costs,
counsel  fees,  expenses  and  liabilities  incurred in or about any claim of or
action for such  infringement;  provided  however,  that LICENSEE shall promptly
notify LICENSOR,  in writing of said Third-Party  Claim and transmit to LICENSOR
all papers served on LICENSEE in any suit involving such claim of  infringement,
and provided  further,  that LICENSEE permits LICENSOR to have entire charge and
control of the defense of any such suit.

                  (b)  LICENSEE  shall  provide  LICENSOR  with all  records and
documents within the LICENSEE'S possession,  custody, or control relating to any
Third-Party  Claim.  Nothing in this  provision  shall be deemed to constitute a
waiver of any attorney-client, work-product or joint defense privilege.

                  (c) LICENSOR'S  indemnity obligation set forth in this Section
shall survive the  termination  or expiration of this  Agreement with respect to
the Third-Party's Claim of rights to the Proprietary Patent(s) of LICENSOR which
occurs during the Term.

                                   ARTICLE 11

                                   TERMINATION

         11.1 Termination of this Agreement

         If either party  breaches a material  provision of this  Agreement  and
fails to cure such  violation  within thirty (30) days after  written  notice of
said breach has been mailed by the other party,  this Agreement shall terminate.
Upon  termination,  the terms and  conditions  herein will  continue to apply to
LICENSOR  Products  owned by  LICENSEE.  If any  outstanding  debts are owing to
either  party  by  the  other,  these  amounts  shall  become  due  and  payable
immediately.

                                       12
<PAGE>

         A. LICENSEE'S Default.  If any of the following events occur,  LICENSEE
shall be in default and LICENSOR shall have the right to  immediately  terminate
this Agreement upon written notice to LICENSEE.

         If  LICENSEE  ceases  to  function  as  a  going  concern,  or  becomes
insolvent, makes an assignment for the benefit of creditors, files a petition in
bankruptcy,  permits a petition in  bankruptcy to be filed against it, or admits
in writing  its  inability  to pay its debts as they  mature or if a receiver is
appointed for a substantial part of its assets;

         LICENSEE  ceases to carry on the  business of a LICENSEE of  LICENSOR'S
Products;

         B. LICENSOR'S Default.  If any of the following events occur,  LICENSOR
shall be in  default  and  LICENSEE,  at its  option,  shall  have the  right to
terminate this Agreement upon thirty (30) days written notice to LICENSOR.

         LICENSOR ceases to function as a going concern,  or becomes  insolvent,
makes  an  assignment  for  the  benefit  of  creditors,  files  a  petition  in
bankruptcy,  permits a petition in  bankruptcy to be filed against it, or admits
in writing  its  inability  to pay its debts as they  mature or if a receiver is
appointed for a substantial part of its assets;

         C.  Obligations on Termination.  Upon termination of this Agreement for
         any reason whatsoever, LICENSEE and LICENSOR shall perform each and all
         of  the  following  obligations,   all  of  which  shall  survive  such
         termination:

         (ii)  LICENSEE  shall  discontinue  the use of any  LICENSOR  trade  or
         service Marks.
         (ii) LICENSEE will promptly refer to LICENSOR the details of any verbal
         or written  inquiries  LICENSEE may receive regarding any of LICENSOR'S
         Products,  and, in the case of written  inquiries,  will provide copies
         thereof  to  LICENSOR;  (iii)  LICENSEE  shall do all  other  things as
         LICENSOR  may  reasonably   request  for  the  purpose  of  terminating
         LICENSEE'S  business and  contractual  arrangements  with  LICENSOR and
         effecting an orderly  transition of sales and/or  service from LICENSEE
         to LICENSOR.

                                   ARTICLE 12

                                 CONSIDETRATION

         12.1     Consideration for exclusive License.

                  Upon the  execution of this  Agreement  LICENSEE  herein shall
issue to LICENSOR  and/or  nominees Two Million Two Hundred  Sixty  Thousand Six
Hundred  (2,260,600)  Shares  of  LICENSEE'S  (QT 5,  Inc.)  common  stock  (144
restricted) in addition to One Million One Hundred Sixty (1,000,160) shares have
been  previously  issued to Victor  Parker that he is holding in escrow and that
shall be released to him upon the execution of this Agreement.

                                       13
<PAGE>

Therefore,  the total stock  consideration  is Three  Million Two Hundred  Sixty
Thousand  Seven  Hundred  Sixty  Shares.  Said  shares  of stock  represent  the
consideration  paid by LICENSEE to LICENSOR  for the  exclusive  rights  granted
under this Agreement

      Removal of Legend LICENSEE shall remove any legend on the Shares within 10
days of the  certificate  qualifying  for the  removal  of such  legends  due to
registration compliance with Rule 144 or otherwise.

                                   ARTICLE 13

                            MISCELLANEOUS PROVISIONS

         13.1     Notices

                  (a) All  notices,  request,  demands and other  communications
which are required or may be given pursuant to the terms of this Agreement shall
be in writing and shall be deemed  delivered  (i) on the date of  delivery  when
delivered  by hand;  (ii) on the date of  transmission  when  sent by  facsimile
transmission  during  normal  business  hours  with  telephone  confirmation  of
receipt;  (iii)  on the  next  business  day  after  transmission  when  sent by
facsimile  transmission  after normal  business  hours;  (iv) two (2) days after
dispatch  when sent by a reputable  courier  service that  maintains  records of
receipt  or (v) five (5) days  after  dispatch  when  sent by  registered  mail,
postage prepaid, return=receipt requested; provided that, in any such case, such
communication is addressed provided in the immediately following paragraph (b).

                  (b) All notices,  request,  demands and other  communications,
which are required or may be given pursuant to the terms of this Agreement shall
be addressed as follows:

(i) If to LICENSOR.

                                    2929 Vail Avenue
                                    City of Commerce
                                    California 90040.
                                    Telephone: (323) 721 8552
                                    Facsimile: (323) 721 8554

(ii) If to LICENSEE.

                                    QT 5, INC.
                                    Lindero Canyon Road
                                    Suite 120
                                    Westlake Village, CA 91362
                                    Telephone: 818 338 1510
                                    Facsimile: 818 338 1551

                                       14
<PAGE>

Or to such other  address as any party  shall have  designated  by notice in the
foregoing manner to the other parties.

         13.2  Compliance  with Laws.  In  connection  with the License  granted
herein and the  consummation  of the  transactions  contemplated  hereby and the
performance by a party of its  obligations  hereunder,  each of the LICENSOR and
the  LICENSEE  shall  comply  with all  applicable  laws,  requirements,  rules,
regulations  and  standards  of   Governmental   Authorities  of  any  pertinent
jurisdiction  so that  neither of the  parties  shall be subject to any fines or
penalties;  or violate any laws or regulations  affecting the lease, license and
sale of the Products contemplated herein.

         13.3  Authority  to Contract and  Perform.  Both  LICENSOR and LICENSEE
represents  that they each  respectively  have full right and authority to enter
into this Agreement and to perform its  obligations and that it has not made and
will  not  make  any  contract  or  commitment  contrary  to the  terms  of this
Agreement.

         134 Ethics and Compliance with Law. Both LICENSOR and LICENSEE covenant
each with the  other,  that they will  maintain  the  highest  ethical  business
standards and avoid and refrain from being involved in any activities  which may
in any manner  disparage the LICENSOR'S or LICENSEE'S  Products.  Furthermore in
the conduct of its  business,  both  LICENSOR and LICENSEE  will comply with all
applicable Federal, State and local laws, rules and regulations.

         13.5 Choice of Law. The validity,  construction  and performance of the
Agreement shall be interpreted,  construed and enforces according to the laws of
the State of California.

         13.6  Arbitration.  Except for any  controversy  or claim arising after
either party has become  insolvent,  bankrupt,  enters into a  composition  with
creditors,  or  has  a  receiver  appointed  for  any  of  its  properties,  any
controversy  or claim  arising  out of or  relating  to this  Agreement  will be
settled by  arbitration  or  mediation  in Los  Angeles  County,  California  in
accordance  with the rules,  then in effect,  of the  Judicial  Arbitration  and
Mediation  Service,  its successor or a similar  alternative  dispute resolution
entity.  Judgment  upon award  rendered may be entered in any court of competent
jurisdiction.  Whichever  party  prevails will be entitled to recover all of its
expenses,  cost, and reasonable  attorney fees as they relate to the arbitration
proceedings,  to any litigation or proceeding arising out of or relating to this
Agreement to compel arbitration,  or to enforce an award. The Parties shall have
the rights of discovery as provided in the  California  Code of Civil  Procedure
the same as if said action was filed in a judicial proceeding.

         13.7 Entire Agreement.  This Agreement (together with the Schedules and
the Exhibits  expressly  identified in this  Agreement)  constitutes  the entire
agreement of the parties with respect to the subject  matter hereof and thereof,
and supersedes all prior agreements and understandings of the parties,  oral and
written, in respect of such subject matter.

         13.8 Binding  Effect.  This Agreement  binds and insures the benefit of
the parties  hereto,  their  respective  heirs,  representatives,  successors or
assigns.

         13.9 Paragraph  Headings.  The paragraph headings in this Agreement are
for convenience only, and they have no substantive or interpretive effect.

                                       15
<PAGE>

         13.10 Waiver.  Neither modification of this Agreement nor any waiver of
any term or  condition  hereof  shall be  effective  unless it is in writing and
signed by the parties hereto.  If either party fails to meet the requirements of
any term of this  Agreement  or waives any  breach  hereunder,  that  failure or
waiver will neither prevent a subsequent  enforcement of such term nor be deemed
a waiver of any subsequent breach.

         13.11 Partial  Invalidity.  In the event of the determination  that any
terms,  covenant or  condition of this  Agreement is of no force or effect,  the
remaining terms,  conditions or covenants contained herein shall not be affected
thereby,  and  the  obligations  of  the  parties  hereto  with  respect  to the
performance of the remaining  terms,  covenants and conditions shall continue in
full force and effect.

         13.12 Assignment. Either Party may assign this Agreement.
               ----------

         13.13  Indemnity.  LICENSOR and  LICENSEE  agree to each hold the other
free and harmless  from any and all claims,  damages and expenses of any kind or
nature  whatsoever:  (1) arising  from acts of the other;  or (2) as a direct or
indirect  consequence of  termination  of this Agreement in accordance  with its
terms.  LICENSOR  agrees to hold  LICENSEE  free and  harmless  from any and all
claims, damages, and expenses of any kind or nature including attorneys fees and
costs arising out of any claim of patent or other infringements by a third party
as it relates to the use by  LICENSEE  of  product(s)  supplied  to  LICENSEE by
LICENSOR.  Further,  LICENSEE is relying on the representations of LICENSOR that
it has the  approval  from the FDA for  over-the-counter  sales  to the  general
public. In that regard,  LICENSOR agrees to hold LICENSEE free and harmless from
any and all  claims,  damages,  and  expenses  of any kind or  nature  including
attorney  fees and  cost  arising  out of any  claim  from the FDA or any  other
governmental  agency  regarding  the sale of the  product  to the  public.  This
indemnification  shall be void and of no force or  effect if  LICENSEE  fails to
obey or comply with any reasonable instruction or limitation imposed by LICENSOR
or the  FDA.  This  section  shall  inure  to the  benefit  of  anyone  who buys
product(s) from LICENSEE that was supplied by LICENSOR.

         13.14 Execution in Counterparts.  This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.

         13.15   Relationship  of  the  Parties.   LICENSEE  is  an  independent
contractor  and private  labeler.  Nothing in this  Agreement  will be deemed or
construed  to  create  an  agency,  partnership,  joint  venture  or  employment
relationship   between   LICENSOR  and  LICENSEE.   LICENSEE   will,   under  no
circumstances,  represent itself directly or by implication, as LICENSOR'S agent
or  employee,  nor will  LICENSEE  purport or attempt  to bind  LICENSOR  to any
liability or obligation  whatsoever.  Nothing  contained  herein will impose any
liability on LICENSOR in connection  with the operation of LICENSEE'S  business,
or for  any  expenditure,  obligation  or  liability  incurred  by  LICENSEE  in
performing or preparing to perform, any of its obligations under this Agreement.
The credit risk with respect to sales by LICENSEE to its customers will be borne
by LICENSEE,  and the collectibles of any amount due LICENSEE will in no respect
eliminate, reduce or otherwise affect an obligation of LICENSEE to LICENSOR.

                                       16
<PAGE>

         13.16 Amendment.  This Agreement may only be modified,  supplemented or
amended by a written instrument executed by the parties to it.

         13.17 Conditions Precedent.  Each and every provision of this Agreement
shall be contingent and become effective only upon the execution and delivery of
the Intellectual Property hereinabove described.

         13.18 Schedules. Exhibits and Other Agreements.
               ----------------------------------------

                  (a) The Schedules,  Exhibits and other agreements specifically
referred to in, and delivered  pursuant to, this  Agreement are an integral part
of it. Any disclosure that is made in any of the Schedules delivered pursuant to
this Agreement  shall be deemed  responsive to any other  applicable  disclosure
obligation hereunder.

                  (b) The  following  are the  Exhibits  and  Schedules  annexed
hereto and incorporated by reference and deemed to be part hereof:

                        (i) Exhibits:

                            Exhibit A - List of Patents of Licensor
                            Exhibit B - Patent Pending List
                            Exhibit C - FDA 510K Numbers
                            Exhibit D - Approved Platform Products
                            Exhibit E -  Sales Projections

         13.19 [Intentionally Omitted]

                                 SIGNATURE PAGE

         IN WITNESS WHEREOF,  LICENSOR and LICENSEE have executed this Agreement
the day and year written below .

LICENSOR                                     LICENSEE
VMM, LLC                                     QT 5. INC.
5655 Lindero Canyon Rd. # 120
___________________                          Westlake Village, California, 91362

Dated: _____________, 2003                   Dated: ___________________, 2003

BY: _______________________________          BY:________________________________
           Managing Member                      Timothy J. Owens
                                                Its: CEO

                                       17
<PAGE>

VICTOR PARKER

Dated:  ______________________, 2003

BY: ______________________
    Victor Parker

                                       18
<PAGE>

                                    EXHIBIT A

                              Information Redacted

                                       19
<PAGE>

                                    EXHIBIT B

                              Information Redacted

                                       20
<PAGE>

                                    EXHIBIT C

                              Information Redacted

                                       21
<PAGE>

                                    EXHIBIT D

                              Information Redacted

                                       22

<PAGE>
                                    EXHIBIT E

                              Information Redacted

                                       23Exhibit 10.1

                          REGISTRATION RIGHTS AGREEMENT

      REGISTRATION RIGHTS AGREEMENT ("Agreement") made as of October 21, 2003
between AdStar, Inc., a Delaware corporation (the "Company"), on the one hand,
and Edward P. Hopey ("Hopey") and Gil Wolsky ("Wolsky") on the other hand.

                                   WITNESSETH

      WHEREAS, the Company, Hopey, Wolsky and certain other entities have,
simultaneously herewith, entered into an Agreement and Plan of Merger dated and
even date (the "Merger Agreement"); and

      WHEREAS, in connection with the Merger Agreement, the Company has agreed
to enter into this Agreement with Hopey and Wolsky.

      NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and other valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

      1. Certain Definitions. As used in this Agreement, the following terms
shall have the following respective meanings:

      "Allowed Delay" is defined in Section 3(e).

      "Closing Date" shall have the same meaning as in the Merger Agreement.

      "Commission" shall mean the United States Securities and Exchange
Commission, or any other federal agency at the time administering the
"Securities Act" (as defined herein).

      "Common Stock" shall mean the Common Stock, $.0001 par value per share, of
the Company, as constituted as of the date of this Agreement.

      "Consideration Shares" shall have the same meaning as in the Merger
Agreement.

      "Exchange Act" shall mean the United States Securities Exchange Act of
1934, as amended, or any similar federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time.

      "Filing Date" is defined in Section 2.

      "Registration Expenses" shall mean the expenses described in Section 5.

      "Registration Period" is defined in Section 3(a).

<PAGE>

      "Securities Act" shall mean the United States Securities Act of 1933, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

      "Selling Expenses" shall mean the expenses described in Section 5.

      "Selling Holders" shall mean Hopey and Wolsky collectively.

      2. Registration.

            (a) Subject to the provisions of paragraph (b) and Section 3 below,
on or prior to the 60th day (the "Filing Date") following the Closing Date, the
Company shall file a Registration Statement on Form S-3 (or any successor form
relating to secondary offerings) (the "Resale Registration Statement")
registering the sale by the Selling Holders of the Consideration Shares under
the Securities Act.

            (b) Anything contained herein to the contrary notwithstanding, with
respect to the registration required pursuant to this Section 2, the Company may
include in such registration any issued and outstanding shares of Common Stock
held by others.

      3. Obligations Of The Company.

            In connection with the registration of sale of the Consideration
Shares, the Company shall have the following obligations:

            (a) The Company shall prepare promptly, and file with the Commission
not later than the Filing Date, the Resale Registration Statement with respect
to the Consideration Shares and thereafter use its reasonable best efforts to
cause such Resale Registration Statement to become effective as soon as possible
after such filing with the Commission, and keep the Resale Registration
Statement effective until the earlier of the second anniversary of the Closing
Date or the sale of all of the Consideration Shares (the "Registration Period"),
which Resale Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein, or necessary to make the statements therein not misleading.

            (b) The Company shall prepare and file with the Commission such
amendments (including post-effective amendments) and supplements to the Resale
Registration Statement and the prospectus used in connection with the Resale
Registration Statement as may be necessary to keep the Resale Registration
Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the Securities Act with respect to
the disposition of all Consideration Shares covered by the Resale Registration
Statement until such time as all of such Consideration Shares have been disposed
of in

                                       2
<PAGE>

accordance with the intended methods of disposition by the Selling Holders as
set forth in the Resale Registration Statement. The Company shall use its
reasonable best efforts to cause any amendment to the Resale Registration
Statement to become effective as soon as practicable following the filing
thereof.

            (c) The Company shall furnish to the Selling Holders (i) promptly
(but in no event more than two (2) business days) after the same is prepared and
filed with the Commission, one copy of the Resale Registration Statement and any
amendment thereto, and (ii) such number of copies of a prospectus and all
amendments and supplements thereto as such Selling Holders may reasonably
request in order to facilitate the disposition of the Consideration Shares owned
by such Selling Holders. The Company will immediately notify each Selling Holder
by facsimile of the effectiveness of Resale Registration Statement or any
post-effective amendment. The Company will promptly respond (but in no event
more than twenty (20) business days) to any and all comments received from the
Commission, with a view towards causing Resale Registration Statement or any
amendment thereto to be declared effective by the Commission as soon as
practicable.

            (d) The Company shall use reasonable efforts to (i) register and
qualify the Consideration Shares covered by the Resale Registration Statement
under such other securities or "blue sky" laws of such jurisdictions in the
United States as the Selling Holders reasonably request, (ii) prepare and file
in those jurisdictions such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the
Consideration Shares for sale in such jurisdictions; provided, however, that the
Company shall not be required in connection therewith or as a condition thereto
to (a) qualify to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 3(d), (b) subject itself to general
taxation in any such jurisdiction, (c) file a general consent to service of
process in any such jurisdiction, (d) provide any undertakings that cause the
Company undue expense or burden, or (e) make any change in its charter or
bylaws, which in each case the Board of Directors of the Company determines to
be contrary to the best interests of the Company and its stockholders.

            (e) As promptly as practicable after becoming aware of such event,
the Company shall notify each Selling Holder of the happening of any event, of
which the Company has knowledge, as a result of which the prospectus included in
the Resale Registration Statement, as then in effect, includes an untrue
statement of a material fact or omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
use its reasonable best efforts promptly to prepare a supplement or amendment to
the Resale Registration Statement to correct such untrue statement or omission,
and deliver such number of copies of such supplement or amendment to each
Selling Holder as such Selling Holder may reasonably request; provided that, the
Company may delay the disclosure of material non-public information concerning
the Company (as well as prospectus or Resale Registration Statement updating)
the disclosure of which at the time is not, in the good faith opinion of the
Company, in

                                       3
<PAGE>

the best interests of the Company (an "Allowed Delay"); provided, further, that
the Company shall promptly (i) notify the Selling Holders in writing of the
existence of (but in no event, without the prior written consent of the Selling
Holders, shall the Company disclose to such Selling Holders any of the facts or
circumstances regarding) material non-public information giving rise to an
Allowed Delay and (ii) advise the Selling Holders in writing to cease all sales
under such Resale Registration Statement until the end of the Allowed Delay.
Upon expiration of the Allowed Delay, the Company shall again be bound by the
first sentence of this Section 3(e) with respect to the information giving rise
thereto.

            (f) The Company shall use its reasonable best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of the Resale
Registration Statement, and, if such an order is issued, to obtain the
withdrawal of such order at the earliest moment and to notify each Selling
Holder of the issuance of such order and the resolution thereof.

            (g) The Company shall permit a single firm or counsel designated by
the Selling Holders, at the expense of the Selling Holders, to review such
Resale Registration Statement and all amendments and supplements thereto a
reasonable period of time prior to their filing with the SEC, and not file any
document in a form to which such counsel reasonably objects. The sections of
such Resale Registration Statement covering information with respect to the
Selling Holders, the Selling Holder's beneficial ownership of securities of the
Company or the Selling Holders intended method of disposition of Consideration
Shares shall conform to the information provided to the Company by each of the
Selling Holders.

            (h) The Company shall cause all the Consideration Shares covered by
the Resale Registration Statement to be listed on each national securities
exchange on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Consideration Shares is then
permitted under the rules of such exchange.

            (i) The Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Selling Holders of Consideration
Shares pursuant to the Resale Registration Statement.

      4. Obligations Of The Selling Holders.

            In connection with the registration of sale of the Consideration
Shares, the Selling Holders shall have the following obligations:

            (a) It shall be a condition precedent to the obligations of the
Company to complete the registration pursuant to this Agreement with respect to
the Consideration Shares of a particular Selling Holder that such Selling Holder
shall furnish to the Company, in writing, such information regarding itself, the
securities of the Company held by him and the intended method of disposition of
the Consideration Shares held by him as shall be reasonably required to effect
the registration of such Consideration Shares and shall execute such documents
in connection with such registration as the Company may reasonably request. At
least fifteen (15)

                                       4
<PAGE>

business days prior to the Filing Date, the Company shall notify each Selling
Holder of the information the Company requires from each such Selling Holder.

            (b) Each Selling Holder, by such Selling Holder's acceptance of the
Consideration Shares, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the
Resale Registration Statement hereunder, unless such Selling Holder has notified
the Company in writing of such Selling Holder's election to exclude all of such
Selling Holder's Consideration Shares from the Resale Registration Statement.

            (c) Each Selling Holder agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(e)
or 3(f), such Selling Holders will immediately discontinue disposition of
Consideration Shares pursuant to the Resale Registration Statement covering such
Consideration Shares until such Selling Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(e) or 3(f) and, if
so directed by the Company, such Selling Holder shall deliver to the Company (at
the expense of the Company) or destroy (and deliver to the Company a certificate
of destruction) all copies in such Selling Holder's possession, of the
prospectus covering such Consideration Shares current at the time of receipt of
such notice.

      5. Expenses. All expenses incurred by the Company in complying with
Sections 2 and 3 hereof, including without limitation, all registration and
filing fees, printing expenses, fees and disbursements of counsel for the
Company and independent public accountants for the Company, fees and expenses,
including counsel fees, incurred in connection with complying with state
securities or "blue sky" laws, fees of the National Association of Securities
Dealers, Inc., transfer taxes, fees of transfer agents and registrars, and costs
of insurance are called "Registration Expenses." All selling commissions
applicable to Consideration Shares, including any fees and disbursements of any
special counsel retained by the Selling Holders, are called "Selling Expenses."

      The Company will pay all Registration Expenses. All Selling Expenses shall
be borne by the Selling Holders.

      6. Rule 144 Reporting. With a view to making available to the Selling
Holders the benefits of certain rules and regulations of the Commission which
may permit the sale of the Consideration Shares without registration, the
Company agrees to:

      (a) make and keep public information available, as those terms are used
and defined in Commission Rule 144; and

      (b) use its reasonable best efforts to file with the Commission in a
timely manner all reports and other documents required by the Company under the
Exchange Act.

                                       5
<PAGE>

      7. Indemnification and Contribution.

      (a) In the event of a registration of the sale by the Selling Holders of
any Consideration Shares under the Securities Act pursuant to this Agreement,
the Company will indemnify and hold harmless Hopey and Wolsky, as the case may
be, against any losses, claims, damages or liabilities, joint or several, to
which Hopey and Wolsky, as the case may be, may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities, or actions in respect thereof, arise out of or are based upon any
untrue statement or alleged untrue statement of any fact contained in the Resale
Registration Statement under which such Consideration Shares was registered
under the Securities Act pursuant to this Agreement, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state
therein a fact required to be stated therein or necessary to make the statements
therein not misleading, and will reimburse Hopey and Wolsky, as the case may be,
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case if and
to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished by Hopey and
Wolsky, as the case may be, in writing specifically for use in the Resale
Registration Statement.

      (b) In the event of a registration of the sale by the Selling Holders of
any of the Consideration Shares under the Securities Act pursuant to this
Agreement, Hopey and Wolsky, as the case may be, will indemnify and hold
harmless the Company, each person, if any, who controls the Company within the
meaning of the Securities Act, each officer of the Company who signs the Resale
Registration Statement and each director of the Company, against all losses,
claims, damages or liabilities, joint or several, to which the Company or such
officer, director, or controlling person may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities, or
actions in respect thereof, arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Resale
Registration Statement under which such Consideration Shares were registered
under the Securities Act pursuant to this Agreement, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company and each such
officer, director, and controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action, provided, however, that Hopey and
Wolsky, as the case may be, will be liable hereunder in any such case if and
only to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in reliance upon and in conformity with information
pertaining to Hopey and Wolsky, as the case may be, furnished in writing to the
Company by Hopey and Wolsky, as the case may be, specifically for use in the
Resale Registration Statement.

                                       6
<PAGE>

      (c) Promptly after receipt by a party indemnified hereunder of notice of
the commencement of any action or the receipt of any claim, such indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to such indemnified party other than under this
Section 7 and shall only relieve it from any liability which it may have to such
indemnified party under this Section 7 if and to the extent the indemnifying
party is prejudiced by such omission. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate in
and, to the extent it shall wish, to assume and undertake the defense thereof
with counsel satisfactory to such indemnified party and, after notice from the
indemnifying party to such indemnified party of its election so to assume and
undertake the defense thereof, the indemnifying party shall not be liable to
such indemnified party under this Section 7 for any legal expense subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation and of liaison with counsel so selected;
provided, however, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the indemnifying
party or if the interests of the indemnified party reasonably may be deemed to
conflict with the interests of the indemnifying party, the indemnified parties
shall have the right to select one separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the indemnifying party as incurred.

      (d) To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 7 to the fullest extent permitted by law; provided, however, that
(i) no contribution shall be made under circumstances where the indemnifying
party would not have been liable for indemnification under the fault standards
set forth in Section 7, (ii) no Selling Holder guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any Selling Holder who was not guilty of such
fraudulent misrepresentation, and (iii) contribution (together with any
indemnification or other obligations under this Agreement) by any Selling Holder
shall be limited in amount to the net amount of proceeds received by such
Selling Holder from the sale of Consideration Shares.

      8. Miscellaneous.

      (a) The rights granted to Hopey and Wolsky hereunder may not be assigned
to any other person.

      (b) All notices, requests, demands and other communications which are
required to be or may be given under this Agreement shall be in writing and
shall be deemed to have been duly given when (a) delivered in person, (b) the
day following dispatch by an overnight courier service

                                       7
<PAGE>

(such as Federal Express or UPS, etc.) or (c) five (5) days after dispatch by
certified or registered first class mail, postage prepaid, return receipt
requested, to the party to whom the same is so given or made:

            if to the Company, Hopey and Wolsky, at the address of such party
            set forth in the Merger Agreement.

      (c) All questions concerning the construction, validity and interpretation
of this Agreement shall be governed by the internal law, and not the law of
conflicts, of the State of California.

      (d) This Agreement may not be amended or modified or otherwise altered
except pursuant to an instrument, in writing, signed by each of the parties.

      (e) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

      (f) If any provision of this Agreement shall be held to be illegal,
invalid or unenforceable, such illegality, invalidity or unenforceability shall
attach only to such provision and shall not in any manner affect or render
illegal, invalid or unenforceable any other provision of this Agreement, and
this Agreement shall be carried out as if any such illegal, invalid or
unenforceable provision were not contained herein.

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer, and Hopey and Wolsky have duly executed
this Agreement, as of the date first written above.

                                          AdStar, Inc.

                                          By: /s/ Leslie Bernhard
                                             ----------------------------------
                                             Leslie Bernhard, President and CEO

                                          /s/ Edward P. Hopey
                                          -------------------------------------
                                          Edward P. Hopey

                                          /s/ Gil Wolsky
                                          -------------------------------------
                                          Gil Wolsky

                                       9

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