Exhibit 10.2





TEMPORARY
AMENDMENT TO LOAN AND SECURITY AGREEMENT










WHEREAS, Lender and Borrower are
parties to a certain Loan and Security Agreement, dated June 23, 2008 (as
amended from time to time, the "Agreement") pursuant to which Lender makes loans
and other extensions of credit to Borrower, which loans and extensions of credit
are secured by security interests upon the Collateral,and guaranteed
unconditionally by Guarantor; and





WHEREAS, the Agreement establishes a
secured lending facility limited to a Borrowing Base, which limits the amount
that Borrower may borrow under the Agreement (“Original Borrowing Base”);
and





WHEREAS, the parties desire to increase
temporarily the Original Borrowing Base as hereinafter set forth in order to
permit Borrower to borrow increased funds under the Agreement.










1.
            Definitions.  Capitalized
      terms used in this Amendment, unless otherwise defined herein, shall have
      the meaning ascribed to such term in the
  Agreement.





2.
            Temporary
      Amendments.  The amendment herein shall only be
      applicable beginning October 1, 2009 and ending November 15, 2009
      (“Temporary Amendment Period”).  On November 16, 2009, the
      increase to the Original Borrowing Base herein shall become null and void
      and the Borrowing Base shall revert to the Original Borrowing Base.





3.
            Temporary Increase to
      the Original Borrowing Base.  This Amendment represents a
      temporary increase in the Original Borrowing Base.  As such, on
      November 16, 2009 Borrower shall repay the loans under the Agreement in an
      amount sufficient to comply with the Original Borrowing Base in
      effect.  Subject to the conditions set forth below, the
      Agreement is amended for the term of the Temporary Amendment Period by
      deleting Item
      1(a)(ii)(B)(2) of the Schedule to the Agreement and replacing it
      with the following:





(i) from
October 1, 2009 through November 15, 2009, the first two paragraphs of Item
1(a)(ii)(B)(2) of the Schedule shall read:





(2)
            As
      outlined below, the percentage (%) of the dollar value (determined at the
      lower of cost or market value) of Eligible
  Inventory;




Period(July
      2009 through March 2010)
            
            %July 2009 through
      November 15, 2009
            
            
            80
            %November 16 through
      November 30, 2009
            
            
            70
            %December
      2009
            
            
            65
            %January
      2010
            
            
            60
            %February 2010
      through March 2010
            
            
            50
            %




4.
            Conditions.  The
      effectiveness of this Amendment is subject to the following conditions
      precedent (unless specifically waived in writing by
    Lender):





(a)
            Borrower
      shall have executed and delivered such other documents and instruments as
      Lender may require.





(b)
            All
      proceedings taken in connection with the transactions contemplated by this
      Amendment and all documents, instruments and other legal matters incident
      thereto shall be satisfactory to Lender and its legal
    counsel.





(c)
            No
      Default shall be continuing.





(d)
            There
      shall have occurred no material adverse change in the business,
      operations, financial condition, profits or prospects of Borrower, or in
      the Collateral.





(e)
            Borrower
      shall pay a document fee to Lender in the amount of $1,500 (“Documentation
      Fee”).  The Documentation Fee shall be earned at closing of this
      Amendment and is non-refundable.










Representations and
Warranties of Obligors .





6.           Reaffirmation of
Obligations.  Borrower hereby ratifies and reaffirms the
Agreement and all of its obligations and liabilities thereunder.  Each
Guarantor hereby ratifies and reaffirms the validity, legality and
enforceability of the Guaranty and agrees that such Guaranty is and shall remain
in full force and in effect until all the Obligations have been paid in full.
Borrower and each Guarantor acknowledges and agrees that all terms and
provisions, covenants and conditions of the Agreement shall be and remain
in full force and effect and constitute the legal, valid, binding and
enforceable obligations of Borrower and each Guarantor that is a party thereto
in accordance with their respective terms as of the date hereof. Although each
Guarantor has been informed of the matters set forth herein and has acknowledged
and agreed to same, each Guarantor understands that Lender has no obligation to
inform any Guarantor of such matters in the future or to seek any Guarantor’s
acknowledgment or agreement to future amendments or waivers, and nothing herein
shall create such a duty.  Borrower shall pay to Lender all costs and
expenses, including legal fees, incurred by Lender in connection with
preparation, negotiation and closing of this Amendment.





7.           Ratification.  The
terms and provisions set forth in this Amendment shall modify and supersede all
inconsistent terms and provisions of the Agreement, and shall not be deemed to
be a consent to the modification or waiver of any other term or condition of the
Agreement.  Except as expressly modified and superseded by this
Amendment, the terms and provisions of the Agreement are ratified and confirmed
and shall continue in full force and effect.





8.           No Novation,
etc.  This Amendment is not intended to be, nor shall it be
construed to create, a novation or accord and satisfaction, and the Agreement,
as amended hereby, shall remain in full force and
effect.  Notwithstanding any prior mutual temporary disregard of any
of the terms of the Agreement, the parties agree that the terms of
the Agreement shall be strictly adhered to on and after the date
hereof, except as expressly modified by this Amendment.





9.           Release
of Claims.  To
induce Lender to enter into this Amendment, each Obligor hereby releases,
acquits and forever discharges Lender, and Lender's officers, directors, agents,
employees, successors and assigns, from all liabilities, claims, demands,
actions or causes of action of any kind (if any there be), whether absolute or
contingent, due or to become due, disputed or undisputed, liquidated or
unliquidated, at law or in equity, or known or unknown, that any one or more of
them now have or ever have had against Lender up to and including the date of
this Amendment, whether arising under or in connection with the Agreement or
otherwise.





10.           Non-Waiver of
Default.  Neither this Amendment, Lender’s forbearance
hereunder nor Lender's continued making of loans or other extensions of credit
at any time extended to Borrower in accordance with the Agreement shall be
deemed a waiver of or consent to any Default.  Obligors agree that
such Defaults shall not be deemed to have been waived, released or cured by
virtue of advances, loans or other extensions of credit at any time extended to
Borrower, Lender's agreement to forbear pursuant to the terms of this Amendment
or the execution of this Amendment.





11.           Severability.  Any
provision of this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment, and the effect thereof shall be confined to the provision so held to
be invalid or unenforceable.





12.           Counterparts.  This
Amendment may be executed in one or more counterparts, each of which shall
constitute an original, but all of which taken together shall be one and the
same instrument.





13.           Successors and
Assigns.  This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, heirs
and personal representatives.





IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed under seal and delivered by their
respective duly authorized officers on the date first written
above.








FCC,
LLC d/b/a First Capital




By:/s/ Lee E.
Elmore


Lee
E.
Elmore


Senior
Vice
President








Aerogrow
International, Inc.




By:/s/ Jervis B.
Perkins


Jervis
B. Perkins, President and


Chief
Executive
Officer










ACKNOWLEDGMENT
AND AGREEMENT





The
undersigned Guarantor acknowledges the foregoing Temporary Amendment to Loan and
Security Agreement and agrees that his Guaranty in favor of Lender dated January
1, 2009 (as may be amended) remains in full force and effect, subject to no
right of offset, claim or counterclaim.








GUARANTOR





/s/ Jack J.
Walker


(L.S.)


Jack J.
Walker, Individually











ACKNOWLEDGMENT
AND AGREEMENT OF VALIDITY GUARANTORS





The
undersigned, Validity Guarantors in respect of the indebtedness of Borrower to
Lender, hereby (a) acknowledge receipt of the foregoing Temporary Amendment;
(b) consent to the terms and execution thereof; (c) acknowledge that
the Obligations of Borrower under the Loan Agreement may have increased; (d)
reaffirm their obligations to Lender pursuant to the terms of the Validity
Agreement to which they are a party; and (e) acknowledge that Lender may
amend, restate, extend, renew or otherwise modify the Loan Agreement and any
indebtedness or agreement of Borrower, or enter into any agreement or extend
additional or other credit accommodations, without notifying or obtaining the
consent of the undersigned and without impairing the liability of the
undersigned under any Validity Agreement for all of each Borrower’s present and
future indebtedness to Lender.











/s/ Jervis B.
Perkins


Jervis B.
Perkins





/s/ H. MacGregor
Clarke


H.
MacGregor Clarke