Document:

Exhibit 10.12

                             PATHMARK STORES, INC.
                     2000 NON-EMPLOYEE DIRECTORS EQUITY PLAN

1.       Purpose

         The purpose of the Pathmark Stores, Inc. 2000 Non-Employee Directors
Equity Plan (the "Plan") is to promote the long-term growth and financial
success of the Company by attracting, motivating and retaining non-employee
directors of outstanding ability and assisting the Company in promoting a
greater identity of interest between the Company's non-employee directors and
its stockholders.

2.       Definitions

         For purposes of the Plan, the following terms shall be defined as
follows:

         "Annual Meeting" means an annual meeting of the Company's stockholders.

         "Board" means the Board of Directors of the Company.

         "Change in Control" shall mean any of the following:

         (i) the acquisition by any Person of beneficial ownership (within the
         meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or
         more of the Common Stock then outstanding, but shall not include any
         such acquisition by any employee benefit plan of the Company, any
         Person or entity organized, appointed or established by the Company for
         or pursuant to the terms of any such employee benefit plan; any Person
         (other than any of Fidelity Management & Research Company or Fidelity
         Management Trust Company or by any fund or account associated with
         either Fidelity Management & Research Company or Fidelity Management
         Trust Company) who as of September 19, 2000 was the beneficial owner of
         15% or more of the shares of Common Stock outstanding on such date
         unless and until such Person, together with all Affiliates of such
         Person, becomes the beneficial owner of 35% or more of the shares of
         Common Stock then outstanding whereupon a Change in Control shall be
         deemed to have occurred;

         (ii) consummation after approval by the shareholders of Pathmark of
         either (A) a plan of complete liquidation or dissolution of Pathmark or
         (B) a merger, amalgamation or consolidation of Pathmark with any other
         corporation, the issuance of voting securities of Pathmark in
         connection with a merger or consolidation of Pathmark or sale or other
         disposition of all or substantially all of the assets of Pathmark or
         the acquisition of assets of another corporation (each, a "Business
         Combination"), unless, in each case of a Business Combination,
         immediately following such Business Combination, all or substantially
         all of the individuals and entities who were the beneficial owners of
         the Common Stock outstanding immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 50% of
         the then outstanding shares of common stock and 50% of the combined
         voting power of the then outstanding voting securities entitled to vote
         generally in the election of directors, as the case may be, of the
         entity resulting from such Business Combination (including, without
         limitation, an entity which as a result of such transaction owns the
         Company or all or substantially all of Pathmark's assets either
         directly or through one or more subsidiaries) in substantially the same

<PAGE>

         proportions as their ownership, immediately prior to such Business
         Combination, of the Common Stock; or

         (iii) the individuals who, as of September 19, 2000, constitute the
         Board, and subsequently elected members of the Board whose election is
         approved or recommended by at least a majority of such current members
         or their successors whose election was so approved or recommended
         (other than any subsequently elected members whose initial assumption
         of office occurs as a result of an actual or threatened election
         contest with respect to the election or removal of directors or other
         actual or threatened solicitation of proxies or consents by or on
         behalf of a Person other than the Board), cease for any reason to
         constitute at least a majority of such Board.

         For purposes of the above definition of Change in Control only, the
following defined terms shall apply:

                  "Affiliate" means, with respect to any Person, any other
         entity which (i) is a Subsidiary of such Person, (ii) is, directly or
         indirectly, under common control with such Person, or (iii) is,
         directly or indirectly, controlling such Person.

                  "Person" means any person, entity or "group" within the
         meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act,
         except that such term shall not include (i) the Company or any of its
         subsidiaries, (ii) a trustee or other fiduciary holding securities
         under an employee benefit plan of the Company, (iii) an underwriter
         temporarily holding securities pursuant to an offering of such
         securities, or (iv) an entity owned, directly or indirectly, by the
         shareholders of Pathmark in substantially the same proportions as their
         ownership of stock of Pathmark.

                  "Subsidiary" means with respect to any Person, any entity of
         which: if a corporation, a majority of the total voting power of shares
         of stock entitled (without regard to the occurrence of any contingency)
         to vote in the election of directors, managers or trustees thereof is
         at the time of determination owned or controlled, directly or
         indirectly, collectively or individually, by such Person or by one or
         more Affiliates of such Person, and if a partnership, association,
         limited liability company or other entity, a majority of the
         partnership, membership or other similar ownership interest thereof is
         at the time of determination owned or controlled, directly or
         indirectly, collectively or individually, by such Person or by one or
         more Affiliates of such Person.

                                    ********

         "Common Stock" means the Common Stock of the Company, par value $.01
per share, or such other class or kind of shares or other securities as may be
applicable under Section 11 below.

         "Company" or "Pathmark" means Pathmark Stores, Inc., a Delaware
corporation, or any successor thereto, and its Subsidiaries.

         "Date of Grant" means, with respect to any Director Option, the date on
which such Director Option is granted to a Non-Employee Director.

         "Director Option" means a right to purchase shares of Common Stock
granted to a Non-Employee Director pursuant to Section 6 hereof.

                                       2

<PAGE>

                   "Effective Date" means the effective date of the Plan
provided for in Section 9 below.

         "Fair Market Value" means, with respect to a share of Common Stock, the
fair market value thereof as of the relevant date of determination, as
determined in accordance with a valuation methodology approved by the Board, and
according to the following, as applicable:

                  (i) If the Common Stock is quoted on the NASDAQ National
         Market , in the absence of any alternative valuation methodology
         approved by the Board, the Fair Market Value of a share of Common Stock
         shall equal the per share closing price quoted on the day immediately
         prior to the date of grant as reported in the transactions index of
         each such exchange, as published in The Wall Street Journal, or, if no
         closing price was quoted in any such index for such date, then as of
         the next preceding date on which such a closing price was quoted;

                  (ii) If the Common Stock is not quoted on the NASDAQ National
         Market, but is publicly traded on another national securities exchange
         or quoted on an automated system, the Fair Market Value of a share of
         Common Stock shall equal the per share closing price quoted on the day
         immediately prior to the date of grant as reported in the transactions
         index of each such exchange or automated system, as published in The
         Wall Street Journal, or, if no closing price was quoted in any such
         index for such date, then as of the next preceding date on which such a
         closing price was quoted; and

                  (iii) If the Common Stock is not publicly traded on a national
         securities exchange or quoted on the NASDAQ National Market or any
         other automated system, the Fair Market Value of a share of Common
         Stock shall be reasonably determined in good faith by the Board.

         "Non-Employee Director" means a member of the Board who is not an
employee of the Company or any of its Subsidiaries.

         "Permanent Disability" means a physical or mental impairment rendering
a Non-Employee Director substantially unable to function as a member of the
Board for any period of six consecutive months. Any dispute as to whether a
Non-Employee Director is Permanently Disabled shall be resolved by a physician
mutually acceptable to the Non-Employee Director and the Company, whose decision
shall be final and binding upon the Non-Employee Director and the Company.

         "Person" means any individual, firm, corporation, partnership or other
entity.

         "Subsidiary" means (i) a corporation or other entity with respect to
which the Company, directly or indirectly, has the power, whether through the
ownership of voting securities, by contract or otherwise, to elect at least a
majority of the members of such corporation's board of directors or analogous
governing body, or (ii) any other corporation or other entity in which the
Company, directly or indirectly, has an equity or similar interest and which the
Board designates as a Subsidiary for purposes of the Plan.

                                       3

<PAGE>

3.       Administration

         (a) Administration by the Board. The Plan shall be administered by the
Board, which may adopt rules and regulations it considers necessary or
appropriate to carry out the Plan's purposes. The Board's interpretation and
construction of any Plan provision shall be final and conclusive. The Board may,
but need not, from time to time delegate some or all of its authority under the
Plan to a committee consisting of one or more members of the Board, any such
delegation to be subject to the restrictions and limits that the Board specifies
at the time of such delegation or thereafter. References in the Plan to the
"Board" shall, to the extent consistent with the terms and limitations of any
such delegation, be deemed to include a reference to any such committee to which
the Board's authority hereunder has been delegated.

         (b) Award Certificate. The terms and conditions of each grant of
Director Options under the Plan shall be embodied in an award agreement or award
certificate which shall incorporate the Plan by reference, shall indicate the
date on which the Director Options were granted and the number of Director
Options granted on such date.

4.       Shares Available

         Subject to the provisions of Section 11 below, the maximum number of
shares of Common Stock which may be issued under the Plan (the "Section 4
Limit") shall be 130,000 shares. For purposes of determining the number of
shares of Common Stock that remain available for issuance, there shall be added
back to the Section 4 Limit and again be available under the Plan any shares of
Common Stock tendered to pay the exercise price of a Director Option. Either
authorized and unissued shares of Common Stock or treasury shares may be
delivered pursuant to the Plan.

5.       Eligibility

         Director Options shall be granted only to Non-Employee Directors.

6.       Grants of Director Options

         (a) General. A Director Option shall entitle a Non-Employee Director to
purchase a specified number of shares of Common Stock during a specified period
at an exercise price per share of Common Stock determined as provided below. All
Director Options provided for herein shall have the general terms and conditions
set forth in Section 7 below.

         (b) Initial Grants. On the date of the first regularly scheduled
meeting of the Board after the Effective Date each Non-Employee Director shall
receive Director Options to purchase 3,000 shares of Common Stock. The exercise
price per share of Common Stock of each Director Option provided for in this
Section 6(b) shall be the Fair Market Value of one share of Common Stock on the
Date of Grant.

         (c) Annual Grants of Director Options. As of the date of the first
regularly scheduled meeting of the Board during the Company's third fiscal
quarter (the "Third Quarter Meeting"), each Non-Employee Director shall
automatically receive Director Options to purchase 3,000 shares of Common Stock;
provided that the Non-Employee Director shall continue to serve as a director of
the Company after such meeting of the Board; and provided, further, that with
respect to Non-Employee Director who, as of any Third Quarter Meeting, has
served on the Board for less than one year, such Non-Employee Director shall
receive a pro rated number of Directors Options. The exercise price

                                       4

<PAGE>

per share of Common Stock of each Director Option provided for in this Section
6(c) shall be the Fair Market Value of one share of Common Stock on the date of
the Date of Grant.

         (d) Grants of Director Options to New Directors. On the date that a
Non-Employee Director is initially elected or appointed to the Board (other than
in connection with the Third Quarter Meeting in which case such new Non-Employee
Director shall receive his or her initial grant of Directors Options in the
ordinary course under Section 6(c) above), such Non-Employee Director shall
receive Director Options to purchase 3,000 shares of Common Stock. The exercise
price per share of Common Stock of each Director Option provided for in this
Section 6(d) shall be the Fair Market Value of one share of Common Stock on the
Date of Grant.

7.       General Terms and Conditions of Directors Options

         (a) Option Term. Each Director Option shall expire on the date of the
Annual Meeting held in the fifth calendar year following the date of grant,
subject to earlier expiration as provided herein.

         (b) Vesting; Accelerated Vesting; Effect of Termination of Service.

                  (i) Vesting Generally. Each Director Option shall vest and
         become with respect to one-third of the shares of Common Stock subject
         to such Option on the first through the third anniversaries of the date
         of grant, provided that the Non-Employee Director continues to serve as
         a member of the Board on each such anniversary date. Notwithstanding
         the preceding sentence, all Director Options shall be considered fully
         vested and exercisable upon the earlier to occur of (X) termination of
         the Non-Employee Director's service on the Board by reason of death or
         Permanent Disability or (Y) a Change in Control.

                  (ii) Exercise Following Termination of Service. Following
         termination of a Non-Employee Director's service on the Board, the
         former Non-Employee Director (or the former Non-Employee Directors'
         estate, personal representative or beneficiary, as the case may be)
         shall have the right, subject to the other terms and conditions hereof,
         to exercise all Director Options that had vested as of or in connection
         with the termination of service:

                           (A) at any time within two years after the date of
                  termination of service, if such termination was by reason of
                  death, Permanent Disability or retirement from the Board in
                  accordance with the retirement policy then in effect for Board
                  members, or

                           (B) in all other cases, at any time within one year
                  after the date of termination of service;

         subject, in all cases, to earlier expiration of the Director Option
pursuant to Section 7(a) above.

         (c) Notice of Exercise. Subject to the other terms and conditions of
the Plan, a Non-Employee Director may exercise all or any portion of a vested
Director Option by giving notice of exercise to the Company or its designated
agent, provided, however, that no fewer than 10 shares of Common Stock may be
purchased upon any exercise of a Director Option unless the number of shares
purchased at such time is the total number of shares in respect of which the
Director Option is then exercisable, and provided, further, that in no event
shall the Option be exercisable for a fractional share. The date of exercise of
an Option shall be the later of (i) the date on which the Company or its agent
receives such notice or (ii) the date on which the conditions provided in
Sections 7(d) and 7(e) below are satisfied.

                                       5

<PAGE>

         (d) Payment. The exercise price of a Director Option may be paid in
cash or previously owned shares or a combination thereof or by any other method
approved by the Board.

         (e) Limitation on Exercise. A Director Option shall not be exercisable
unless the Common Stock subject thereto has been registered under the Securities
Act of 1933, as amended (the "1933 Act"), and qualified under applicable state
"blue sky" laws in connection with the offer and sale thereof, or the Company
has determined that an exemption from registration under the 1933 Act and from
qualification under such state "blue sky" laws is available.

         (f) Issuance of Shares. Subject to the foregoing conditions, as soon as
is reasonably practicable after its receipt of a proper notice of exercise and
payment of the exercise price for the number of shares with respect to which a
Director Option is exercised, the Company shall deliver to the exercising
Non-Employee Director, at the principal office of the Company or at such other
location as may be acceptable to the Company and the Non-Employee Director, one
or more stock certificates for the appropriate number of shares of Common Stock
issued in connection with such exercise. Such shares shall be fully paid and
nonassessable and shall be issued in the name of the Non-Employee Director.
Notwithstanding the foregoing, the Board in its discretion may, subject to rules
and procedures as it may adopt from time to time, provide Non-Employee Directors
with the opportunity to defer receipt of shares of Common Stock issuable upon
exercise of Director Options.

8.       Transferability

         Director Options may not be transferred, pledged, assigned or otherwise
disposed of except by will or the laws of descent and distribution or pursuant
to a domestic relations order, provided, however, that Director Options may be
transferred to a member or members of a Non-Employee Director's immediate family
(as defined below) or to one or more trusts or partnerships established in whole
or in part for the benefit of one or more of such immediate family members
(collectively as "Permitted Transferees"), subject to such rules and procedures
as may from time to time be adopted or imposed by the Board. If a Director
Option is transferred to a Permitted Transferee, it shall be further
transferable only by will or the laws of descent and distribution or, for no
consideration, to another Permitted Transferee of the Non-Employee Director. A
Non-Employee Director shall notify the Company in writing prior to any proposed
transfer of a Director Option to a Permitted Transferee and shall furnish the
Company, upon request, with information concerning such Permitted Transferee's
financial condition and investment experience. For purposes of the Plan, a
Non-Employee Director's "immediate family" means any child, stepchild,
grandchild, spouse, son-in-law or daughter-in-law and shall include adoptive
relationships; provided, however, that if the Company adopts a different
definition of "immediate family" (or similar term) in connection with the
transferability of employee stock options awarded to employees of the Company,
such definition shall apply, without further action of the Board, to the Plan.

9.       Term

         The Effective Date shall be the date of the approval of the Plan of
Reorganization of the Company and its parent companies, assuming the Plan is
approved by the stockholders of the Company prior to such date. Unless earlier
terminated in accordance with Section 10 below, the Plan shall expire on the
date of the Annual Meeting held in 2010. Grants of Director Options shall be
made in connection with the Annual Meeting held in 2010, and shall be the last
grants made under the Plan. Expiration of the Plan in connection with the Annual
Meeting held in 2010 shall not affect awards of Director Options made prior to
such Annual Meeting, which awards shall remain outstanding subject to the terms
hereof.

                                       6

<PAGE>

10.      Amendments

         The Board may at any time and from time to time alter, amend, suspend
or terminate the Plan in whole of in part, including without limitation to amend
the provisions for determining the amount of or Directors Options to be issued
to a Non-Employee Director, provided, however, that:

                  (i) any amendment which under the requirements of applicable
         law or stock exchange rule must be approved by the stockholders of the
         Company shall not be effective unless and until such stockholder
         approval has been obtained in compliance with such law or rule; and

                  (ii) except as provided in Section 11 below, the Board may
         not, without the approval of the Company's stockholders, increase the
         number of shares available for issuance under the Plan pursuant to
         Section 4 above or reduce the exercise price of a Director Option.

No termination or amendment of the Plan that would adversely affect a
Non-Employee Director's rights under the Plan with respect to any award of
Director Options made prior to such action shall be effective as to such
Non-Employee Director unless he or she consents thereto.

11.      Adjustment of and Changes in Shares

         In the event of any merger, consolidation, recapitalization,
reclassification, stock dividend, distribution of property, special cash
dividend or other change in corporate structure affecting the shares, the Board,
in its discretion, may make (i) such proportionate adjustments as it considers
appropriate in the number and kind of shares authorized for issuance hereunder
in order to preserve, but not increase, the benefits or potential benefits
intended to be made available hereunder and/or (ii) such other adjustments as it
deems appropriate. The Board's determination as to what, if any, adjustments
shall be made shall be final and binding on the Company and all Non-Employee
Directors who receive grants under the Plan.

12.      No Right to Re-election

         Nothing in the Plan shall be deemed to create any obligation on the
part of the Board to nominate any of its members for re-election by the
Company's stockholders, nor confer upon any Non-Employee Director the right to
remain a member of the Board for any period of time, or at any particular rate
of compensation.

13.      Governing Law

         The Plan and all agreements entered into under the Plan shall be
construed in accordance with and governed by the laws of the State of Delaware.

14.      No Restriction on Right of Company to Effect Corporate Changes

         The Plan shall not affect in any way the right or power of the Company
or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or any
issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to or
affect the Common Stock or the rights thereof or which are convertible into or
exchangeable for Common Stock, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

                                       7

<PAGE>

15.      Unfunded Plan

         The Plan is unfunded. Prior to the payment or settlement of the
exercise of any Director Options, nothing contained herein shall give any
non-Employee Director any rights that are greater than those of a general
creditor of the Company. In its sole discretion, the Board may authorize the
creation of trusts or other arrangements to meet the obligations created under
the Plan to deliver Common Stock with respect to awards hereunder.

                                       8EXHIBIT 4.19.4

                    THIRD AMENDMENT TO SHAREHOLDER AGREEMENT

         This THIRD AMENDMENT TO SHAREHOLDER  AGREEMENT (this  "Amendment") made
as of  September  14,  2000,  by and among  VALUESTAR  CORPORATION,  a  Colorado
corporation (the "Company"),  SEACOAST CAPITAL PARTNERS LIMITED  PARTNERSHIP,  a
Delaware  Limited  Partnership  ("Seacoast"),  PACIFIC  MEZZANINE  FUND,  L.P. a
California  limited  partnership  ("Pacific")  and TANGENT GROWTH FUND,  L.P., a
California  limited  partnership  ("Tangent")  (individually  and  collectively,
"Purchaser"),  and Jim Stein ("Stein"), James A. Barnes ("Barnes"), and Jerry E.
Polis ("Polis") (individually and collectively, the "Shareholder").

         WHEREAS, the Company,  Purchaser and Shareholder have entered into that
certain  Shareholder  Agreement,  dated as of March 31, 1999, as amended on July
22, 1999 and December 8, 1999 (collectively, the "Shareholder Agreement" and, as
further amended hereby, the "Agreement")

         WHEREAS,  in  connection  with a Series C Convertible  Preferred  Stock
financing  of  the  Company,   Shareholder  has  requested  that  Purchaser  and
Shareholder make certain amendments to the Shareholder Agreement,  and Purchaser
and  Shareholder  are willing to do so upon the terms and  conditions  set forth
herein.

         NOW,  THEREFORE,  in consideration of the premises herein contained 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. DEFINITIONS. All capitalized terms used but not otherwise defined in
this Amendment shall have the meanings ascribed to them in the Agreement. Unless
otherwise  specified,  all section  references  herein  refer to sections of the
Shareholder.

         2. AMENDMENT TO ARTICLE VI - First Refusal; and Co-Sale Rights. Each of
Seacoast,  Pacific and Tangent  hereby agree that solely for purposes of Article
VI of the  Shareholder  Agreement,  Shareholder  shall only mean Stein.  Neither
Barnes nor Polis nor any Capital Stock now owned or later  acquired by either of
them or otherwise held by Barnes or Polis or their  affiliates  shall be subject
to any of the provisions set forth in Article VI of the Shareholder Agreement.

         3.  AMENDMENT  TO ARTICLE  VII  -Voting  Agreement.  Each of  Seacoast,
Pacific and Tangent  hereby  agree that  Barnes' and Polis'  voting  obligations
under  Article VIII of the  Shareholders  Agreement  with respect to any Capital
Stock now owned or later  acquired by either of them or their  affiliates  shall
expire at such time that Barnes or Polis,  as the case may be, are no longer the
beneficial  owners with respect to such shares of Capital Stock,  whether or not
they continue to own other shares of Capital Stock.

                                      -1-

<PAGE>

         4. MISCELLANEOUS.

         4.1 Survival of Representations and Warranties. All representations and
warranties made in the Shareholder,  including, without limitation, any document
furnished in  connection  with this  Amendment,  shall survive the execution and
delivery of this Amendment and the Other  Agreements,  and no  investigation  by
Purchaser or any closing shall affect the  representations and warranties or the
right of Purchaser to rely upon them.

         4.2 Reference to Shareholder  Agreement.  The Shareholder Agreement and
any and all other agreements, documents or instruments now or hereafter executed
and  delivered  pursuant  to the terms  hereof or  pursuant  to the terms of the
Shareholder  Agreement,  as  amended  hereby,  are  hereby  amended  so that any
reference  in  the  Shareholder  Agreement  and  such  other  Agreements  to the
Shareholder  Agreement  shall mean a reference to the  Shareholder  Agreement as
amended hereby.

         4.3 Expenses of Purchaser.  As provided in the  Shareholder  Agreement,
the Company agrees to pay on demand all costs and expenses incurred by Purchaser
in connection with the preparation,  negotiation and execution of this Amendment
and  any  other  agreements   executed  pursuant  hereto,   including,   without
limitation, the reasonable costs and fees of Purchaser's legal counsel.

         4.4  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.

         4.5 Successors and Assigns. This Amendment will inure to the benefit of
and be binding  upon the  parties  hereto and their  respective  successors  and
permitted assigns.

         4.6  Headings.  The headings of the sections  and  subsections  of this
Amendment are inserted for convenience only and do not constitute a part of this
Amendment.

         4.7  Counterparts.  This  Amendment  may be  executed  in any number of
counterparts, which shall collectively constitute one agreement.

         4.8 Law  Governing.  THIS  AMENDMENT  SHALL  BE  DEEMED  TO  HAVE  BEEN
SUBSTANTIALLY  NEGOTIATED  AND MADE IN THE  STATE  OF  CALIFORNIA  AND  SHALL BE
INTERPRETED AND THE RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS
OF THE UNITED  STATES  APPLICABLE  THERETO AND THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND PERFORMED THEREIN,
WITHOUT GIVING EFFECT TO THE CHOICE-OF-LAW  RULES THEREOF OR ANY OTHER PRINCIPLE
THAT  COULD  REQUIRE  THE  APPLICATION  OF THE  SUBSTANTIVE  LAW  OF  ANY  OTHER
JURISDICTION.

         4.9 Waiver; Modification. NO PROVISION OF THIS AMENDMENT MAY BE

                                      -2-

<PAGE>

WAIVED, CHANGED OR MODIFIED, OR THE DISCHARGE THEREOF ACKNOWLEDGED,  ORALLY, BUT
ONLY BY AN AGREEMENT IN WRITING SIGNED BY THE PARTY AGAINST WHOM THE ENFORCEMENT
OF ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT.

         4.10 Final  Agreement.  THE SHAREHOLDER  AGREEMENT,  AS AMENDED HEREBY,
REPRESENTS  THE ENTIRE  EXPRESSION  OF THE PARTIES  WITH  RESPECT TO THE SUBJECT
MATTER  HEREOF  AND  THEREOF  ON  THE  DATE  THIS  AMENDMENT  IS  EXECUTED.  THE
SHAREHOLDER AGREEMENT, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR,  CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

               [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

                                      -3-

<PAGE>

         IN WITNESS WHEREOF, the Company,  Purchaser and Shareholder have caused
this Amendment to be executed and delivered as of the date first written,  which
execution may be done in counterparts.

                  COMPANY:

                                   VALUESTAR CORPORATION

                                   By: /s/ James Stein
                                       ---------------
                                   Name:   James Stein
                                   Its:    Chief Executive Officer

                  SHAREHOLDER:

                                   /s/ James Stein
                                   ---------------
                                   James Stein

                                   /s/ James A. Barnes
                                   -------------------
                                   James A. Barnes,  individually,  as President
                                   of Sunrise Capital,  Inc. and General Partner
                                   of  Tiffany   Investments,   and  as  General
                                   Partner   of  Tiffany   Investments   Limited
                                   Partnership

                                   /s/ Jerry E. Polis
                                   ------------------
                                   Jerry E. Polis, individually, as President of
                                   Davric  Corporation  and Trustee of the Jerry
                                   E. Polis Family Trust

                                      -4-

<PAGE>

                  PURCHASER:

                  SEACOAST CAPITAL PARTNERS LIMITED
                  PARTNERSHIP
                           By:      Seacoast I Advisors, LLC,
                                    its general partner

                           By:      /s/ Jeffrey J. Holland
                                    ----------------------
                           Name:    Jeffrey J. Holland
                           Its:     Vice President

                  PACIFIC MEZZANINE FUND, L.P.
                           By:      Pacific Private Capital
                                    its general partner

                           By:      /s/ Nathan W. Bell
                                    ------------------
                           Name:    Nathan W. Bell
                           Its:     General Partner

                  TANGENT GROWTH FUND, L.P.
                           By:      Tangent Fund Management, LLC
                                    its general partner

                           By:      /s/ Mark P. Gilles
                                    ------------------
                           Name:    Mark P. Gilles
                           Its:     Vice President

                                      -5-

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