Document:

SECURITY AGREEMENT

INTELLECTUAL PROPERTY SECURITY AGREEMENT

INTELLECTUAL PROPERTY SECURITY AGREEMENT (this “Agreement” dated as of November 29, 2005, by and among INFE

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, 

Human Resources, Inc., a Nevada corporation (the “Company”), and the secured parties signatory hereto and their respective endorsees, transferees and assigns (collectively, the “Secured Party”).

W I T N E S S E T H :

WHEREAS, pursuant to a Securities Purchase Agreement, dated the date hereof, between Company and the Secured Party (the “Purchase Agreement”), Company has agreed to issue to the Secured Party and the Secured Party has agreed to purchase from Company certain of Company’s 8% Callable Secured Convertible Notes, due three years from the date of issue (the “Notes”), which are convertible into shares of Company’s Common Stock, par value $.001 per share (the “Common Stock”).  In connection therewith, Company shall issue the Secured Party certain Common Stock purchase warrants (the “Warrants”); and

WHEREAS, in order to induce the Secured Party to purchase the Notes, Company has agreed to execute and deliver to the Secured Party this Agreement for the benefit of the Secured Party and to grant to it a first priority security interest in certain Intellectual Property (defined below) of Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Notes and exercise and discharge in full of Company’s obligations under the Warrants; and

NOW, THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.

Defined Terms.  Unless otherwise defined herein, terms which are defined in the Purchase Agreement and used herein are so used as so defined; and the following terms shall have the following meanings:

“Software Intellectual Property” shall mean:

(a)

all software programs (including all source code, object code and all related applications and data files), whether now owned, upgraded, enhanced, licensed or leased or hereafter acquired by the Company, above;

(b)

all computers and electronic data processing hardware and firmware associated therewith;

(c)

all documentation (including flow charts, logic diagrams, manuals, guides and specifications) with respect to such software, hardware and firmware described in the preceding clauses (a) and (b); and

(d)

all rights with respect to all of the foregoing, including, without limitation, any and all upgrades, modifications, copyrights, licenses, options, warranties, service contracts, program services, test rights, maintenance rights, support rights, improvement rights, renewal rights and indemnifications and substitutions, replacements, additions, or model conversions of any of the foregoing.

“Copyrights” shall mean (a) all copyrights, registrations and applications for registration, issued or filed, including any reissues, extensions or renewals thereof, by or with the United States Copyright Office or any similar office or agency of the United States, any state thereof, or any other country or political subdivision thereof, or otherwise, including, all rights in and to the material constituting the subject matter thereof, including, without limitation, any referred to in Schedule B hereto, and (b) any rights in any material which is copyrightable or which is protected by common law, United States copyright laws or similar laws or any law of any State, including, without limitation, any thereof referred to in Schedule B hereto.

“Copyright License” shall mean any agreement, written or oral, providing for a grant by the Company of any right in any Copyright, including, without limitation, any thereof referred to in Schedule B hereto.

“Intellectual Property” shall means, collectively, the Software Intellectual Property, Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks, Trademark Licenses and Trade Secrets.

“Obligations” means all of the Company’s obligations under this Agreement and the Notes, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later decreased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from the Secured Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.

“Patents” shall mean (a) all letters patent of the United States or any other country or any political subdivision thereof, and all reissues and extensions thereof, including, without limitation, any thereof referred to in Schedule B hereto, and (b) all applications for letters patent of the United States and all divisions, continuations and continuations-in-part thereof or any other country or any political subdivision, including, without limitation, any thereof referred to in Schedule B hereto.

“Patent License” shall mean all agreements, whether written or oral, providing for the grant by the Company of any right to manufacture, use or sell any invention covered by a Patent, including, without limitation, any thereof referred to in Schedule B hereto.

“Security Agreement” shall mean the a Security Agreement, dated the date hereof between Company and the Secured Party.

 

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“Trademarks” shall mean (a) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof, or otherwise, including, without limitation, any thereof referred to in Schedule B hereto, and (b) all reissues, extensions or renewals thereof.

“Trademark License” shall mean any agreement, written or oral, providing for the grant by the Company of any right to use any Trademark, including, without limitation, any thereof referred to in Schedule B hereto.

“Trade Secrets” shall mean common law and statutory trade secrets and all other confidential or proprietary or useful information and all know-how obtained by or used in or contemplated at any time for use in the business of the Company (all of the foregoing being collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to a writing or other tangible form, including all documents and things embodying, incorporating or referring in any way to such Trade Secret, all Trade Secret licenses, including each Trade Secret license referred to in Schedule B hereto, and including the right to sue for and to enjoin and to collect damages for the actual or threatened misappropriation of any Trade Secret and for the breach or enforcement of any such Trade Secret license.

2.

Grant of Security Interest.  In accordance with Section 3(m) of the Security Agreement, to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, the Company hereby, unconditionally and irrevocably, pledges, grants and hypothecates to the Secured Party, a continuing security interest in, a continuing first lien upon, an unqualified right to possession and disposition of and a right of set-off against, in each case to the fullest extent permitted by law, all of the Company’s right, title and interest of whatsoever kind and nature in and to the Intellectual Property (the “Security Interest”).

3.

Representations and Warranties.  The Company hereby represents and warrants, and covenants and agrees with, the Secured Party as follows:

(a)

The Company has the requisite corporate power and authority to enter into this Agreement and otherwise to carry out its obligations thereunder.  The execution, delivery and performance by the Company of this Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company.  This Agreement constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditor’s rights generally.

 

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(b)

The Company represents and warrants that it has no place of business or offices where its respective books of account and records are kept (other than temporarily at the offices of its attorneys or accountants) or places where the Intellectual Property is stored or located, except as set forth on Schedule A attached hereto;

(c)

The Company is the sole owner of the Intellectual Property (except for non-exclusive licenses granted by the Company in the ordinary course of business), free and clear of any liens, security interests, encumbrances, rights or claims, and is fully authorized to grant the Security Interest in and to pledge the Intellectual Property, except as set forth on Schedule D.  There is not on file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those that have been filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Intellectual Property, except as set forth on Schedule D.  So long as this Agreement shall be in effect, the Company shall not execute and shall not knowingly permit to be on file in any such office or agency any such financing statement or other document or instrument (except to the extent filed or recorded in favor of the Secured Party pursuant to the terms of this Agreement), except as set forth on Schedule D  or for a financing statement covering assets acquired by the Company after the date hereof, provided that the value of the Intellectual Property covered by this Agreement along with the Collateral (as defined in the Security Agreement) is equal to at least 150% of the Obligations.

(d)

The Company shall at all times maintain its books of account and records relating to the Intellectual Property at its principal place of business and its Intellectual Property at the locations set forth on Schedule A attached hereto and may not relocate such books of account and records unless it delivers to the Secured Party at least 30 days prior to such relocation (i) written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that the necessary documents have been filed and recorded and other steps have been taken to perfect the Security Interest to create in favor of the Secured Party valid, perfected and continuing first priority liens in the Intellectual Property to the extent they can be perfected through such filings.

(e)

This Agreement creates in favor of the Secured Party a valid security interest in the Intellectual Property securing the payment and performance of the Obligations and, upon making the filings required hereunder, a perfected first priority security interest in such Intellectual Property to the extent that it can be perfected through such filings.

(f)

 Upon request of the Secured Party, the Company shall execute and deliver any and all agreements, instruments, documents, and papers as the Secured Party may request to evidence the Secured Party’s security interest in the Intellectual Property and the goodwill and general intangibles of the Company relating thereto or represented thereby, and the Company hereby appoints the Secured Party its attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; such power being coupled with an interest is irrevocable until the Obligations have been fully satisfied and are paid in full.

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(g)

Except as set forth on Schedule D, the execution, delivery and performance of this Agreement does not conflict with or cause a breach or default, or an event that with or without the passage of time or notice, shall constitute a breach or default, under any agreement to which the Company is a party or by which the Company is bound.  No consent (including, without limitation, from stock holders or creditors of the Company) is required for the Company to enter into and perform its obligations hereunder.

(h)

The Company shall at all times maintain the liens and Security Interest provided for hereunder as valid and perfected first priority liens and security interests in the Intellectual Property to the extent they can be perfected by filing in favor of the Secured Party until this Agreement and the Security Interest hereunder shall terminate pursuant to Section 11.  The Company hereby agrees to defend the same against any and all persons.  The Company shall safeguard and protect all Intellectual Property for the account of the Secured Party.  Without limiting the generality of the foregoing, the Company shall pay all fees, taxes and other amounts necessary to maintain the Intellectual Property and the Security Interest hereunder, and the Company shall obtain and furnish to the Secured Party from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interest hereunder. 

(i)

The Company will not transfer, pledge, hypothecate, encumber, license (except for non-exclusive licenses granted by the Company in the ordinary course of business), sell or otherwise dispose of any of the Intellectual Property without the prior written consent of the Secured Party, which consent will not be unreasonably withheld.

(j)

The Company shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any substantial change in the Intellectual Property, and of the occurrence of any event which would have a material adverse effect on the value of the Intellectual Property or on the Secured Party’s security interest therein.

(k)

The Company shall permit the Secured Party and its representatives and agents to inspect the Intellectual Property at any time, and to make copies of records pertaining to the Intellectual Property as may be requested by the Secured Party from time to time.

(l)

The Company will take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims, causes of action and accounts receivable in respect of the Intellectual Property.

(m)

The Company shall promptly notify the Secured Party in sufficient detail upon becoming aware of any  attachment, garnishment, execution or other legal process levied against any Intellectual Property and of any other information received by the Company that may materially affect the value of the Intellectual Property, the Security Interest or the rights and remedies of the Secured Party hereunder.

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(n)

All information heretofore, herein or hereafter supplied to the Secured Party by or on behalf of the Company with respect to the Intellectual Property is accurate and complete in all material respects as of the date furnished.

(o)

Schedule A attached hereto contains a list of all of the subsidiaries of Company.

(p)

Schedule B attached hereto includes all Licenses, and all Patents and Patent Licenses, if any, owned by the Company in its own name as of the date hereof.  Schedule B hereto includes all Trademarks and Trademark Licenses, if any, owned by the Company in its own name as of the date hereof.  Schedule B hereto includes all Copyrights and Copyright Licenses, if any, owned by the Company in its own name as of the date hereof.  Schedule B hereto includes all Trade Secrets and Trade Secret Licenses, if any, owned by the Company as of the date hereof.  To the best of the Company’s knowledge, each License, Patent, Trademark, Copyright and Trade Secret is valid, subsisting, unexpired, enforceable and has not been abandoned.  Except as set forth in Schedule B, none of such Licenses, Patents, Trademarks, Copyrights and Trade Secrets is the subject of any licensing or franchise agreement.  To the best of the Company’s knowledge, no holding, decision or judgment has been rendered by any Governmental Body which would limit, cancel or question the validity of any License, Patent, Trademark, Copyright and Trade Secrets .  Except as set forth in Schedule B, no action or proceeding is pending (i) seeking to limit, cancel or question the validity of any License, Patent, Trademark, Copyright or Trade Secret, or (ii) which, if adversely determined, would have a material adverse effect on the value of any License, Patent, Trademark, Copyright or Trade Secret.  The Company has used and will continue to use for the duration of this Agreement, proper statutory notice in connection with its use of the Patents, Trademarks and Copyrights and consistent standards of quality in products leased or sold under the Patents, Trademarks and Copyrights.

(q)

With respect to any Intellectual Property:

(i)

such Intellectual Property is subsisting and has not been adjudged invalid or unenforceable, in whole or in part;

(ii)

such Intellectual Property is valid and enforceable;

(iii)

the Company has made all necessary filings and recordations to protect its interest in such Intellectual Property, including, without limitation, recordations of all of its interests in the Patents, Patent Licenses, Trademarks and Trademark Licenses in the United States Patent and Trademark Office and in corresponding offices throughout the world and its claims to the Copyrights and Copyright Licenses in the United States Copyright Office and in corresponding offices throughout the world;

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(iv)

other than as set forth in Schedule B, the Company is the exclusive owner of the entire and unencumbered right, title and interest in and to such Intellectual Property and no claim has been made that the use of such Intellectual Property infringes on the asserted rights of any third party; and

(v)

the Company has performed and will continue to perform all acts and has paid all required fees and taxes to maintain each and every item of Intellectual Property in full force and effect throughout the world, as applicable.

(r)

Except with respect to any Trademark or Copyright that the Company shall reasonably determine is of negligible economic value to the Company, the Company shall:

(i)

maintain each Trademark and Copyright in full force free from any claim of abandonment for non-use, maintain as in the past the quality of products and services offered under such Trademark or Copyright;  employ such Trademark or Copyright with the appropriate notice of registration; not adopt or use any mark which is confusingly similar or a colorable imitation of such Trademark or Copyright unless the Secured Party shall obtain a perfected security interest in such mark pursuant to this Agreement; and not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any Trademark or Copyright may become invalidated;

(ii)

not, except with respect to any Patent that it shall reasonably determine is of negligible economic value to it, do any act, or omit to do any act, whereby any Patent may become abandoned or dedicated; and

(iii)

notify the Secured Party immediately if it knows, or has reason to know, that any application or registration relating to any Patent, Trademark or Copyright may become abandoned or dedicated, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, United States Copyright Office or any court or tribunal in any country) regarding its ownership of any Patent, Trademark or Copyright or its right to register the same or to keep and maintain the same.

(s)

Whenever the Company, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Patent, Trademark or Copyright with the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof or acquire rights to any new Patent, Trademark or Copyright whether or not registered, report such filing to the Secured Party within five business days after the last day of the fiscal quarter in which such filing occurs.

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(t)

The Company shall take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of the Patents, Trademarks and Copyrights, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability.

(u)

In the event that any Patent, Trademark or Copyright included in the Intellectual Property is infringed, misappropriated or diluted by a third party, promptly notify the Secured Party after it learns thereof and shall, unless it shall reasonably determine that such Patent, Trademark or Copyright is of negligible economic value to it, which determination it shall promptly report to the Secured Party, promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, or take such other actions as it shall reasonably deem appropriate under the circumstances to protect such Patent, Trademark or Copyright.  If the Company lacks the financial resources to comply with this Section 3(t), the Company shall so notify the Secured Party and shall cooperate fully with any enforcement action undertaken by the Secured Party on behalf of the Company.

4.

Defaults.  The following events shall be “Events of Default”:

(a)

The occurrence of an Event of Default (as defined in the Notes) under the Notes;

(b)

Any representation or warranty of the Company in this Agreement or in the Security Agreement shall prove to have been incorrect in any material respect when made; 

(c)

The failure by the Company to observe or perform any of its obligations hereunder or in the Security Agreement for ten (10) days after receipt by the Company of notice of such failure from the Secured Party; and

(d)

Any breach of, or default under, the Warrants.

5.

Duty To Hold In Trust.  Upon the occurrence of any Event of Default and at any time thereafter, the Company shall, upon receipt by it of any revenue, income or other sums subject to the Security Interest, whether payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Party for application to the satisfaction of the Obligations.

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6.

Rights and Remedies Upon Default.  Upon occurrence of any Event of Default and at any time thereafter, the Secured Party shall have the right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Party shall have all the rights and remedies of a secured party under the UCC and/or any other applicable law (including the Uniform Commercial Code of any jurisdiction in which any Intellectual Property is then located).  Without limitation, the Secured Party shall have the following rights and powers:

(a)

The Secured Party shall have the right to take possession of the Intellectual Property and, for that purpose, enter, with the aid and assistance of any person, any premises where the Intellectual Property, or any part thereof, is or may be placed and remove the same, and the Company shall assemble the Intellectual Property and make it available to the Secured Party at places which the Secured Party shall reasonably select, whether at the Company’s premises or elsewhere, and make available to the Secured Party, without rent, all of the Company’s respective premises and facilities for the purpose of the Secured Party taking possession of, removing or putting the Intellectual Property in saleable or disposable form.

(b)

The Secured Party shall have the right to operate the business of the Company using the Intellectual Property and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Intellectual Property, at public or private sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Secured Party may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to the Company or right of redemption of the Company, which are hereby expressly waived.  Upon each such sale, lease, assignment or other transfer of Intellectual Property, the Secured Party may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Intellectual Property being sold, free from and discharged of all trusts, claims, right of redemption and equities of the Company, which are hereby waived and released.

7.

Applications of Proceeds.  The proceeds of any such sale, lease or other disposition of the Intellectual Property hereunder shall be applied first, to the expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in connection therewith) of the Intellectual Property, to the reasonable attorneys’ fees and expenses incurred by the Secured Party in enforcing its rights hereunder and in connection with collecting, storing and disposing of the Intellectual Property, and then to satisfaction of the Obligations, and to the payment of any other amounts required by applicable law, after which the Secured Party shall pay to the Company any surplus proceeds.  If, upon the sale, license or other disposition of the Intellectual Property, the proceeds thereof are insufficient to pay all amounts to which the Secured Party is legally entitled, the Company will be liable for the deficiency, together with interest thereon, at the rate of 15% per annum (the “Default Rate”), and the reasonable fees of any attorneys employed by the Secured Party to collect such deficiency.  To the extent permitted by applicable law, the Company waives all claims, damages and demands against the Secured Party arising out of the repossession, removal, retention or sale of the Intellectual Property, unless due to the gross negligence or willful misconduct of the Secured Party.

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8.

Costs and Expenses.

The Company agrees to pay all out-of-pocket fees, costs and expenses incurred in connection with any filing required hereunder, including without limitation, any financing statements, continuation statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured Party.  The Company shall also pay all other claims and charges which in the reasonable opinion of the Secured Party might prejudice, imperil or otherwise affect the Intellectual Property or the Security Interest therein.  The Company will also, upon demand, pay to the Secured Party the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the Secured Party may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Intellectual Property, or (iii) the exercise or enforcement of any of the rights of the Secured Party under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes and shall bear interest at the Default Rate.

9.

Responsibility for Intellectual Property.  The Company assumes all liabilities and responsibility in connection with all Intellectual Property, and the obligations of the Company hereunder or under the Notes and the Warrants shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Intellectual Property or its unavailability for any reason. 

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10.

Security Interest Absolute.  All rights of the Secured Party and all Obligations of the Company hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes, the Warrants or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Notes, the Warrants  or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the Intellectual Property, or any release or amendment or waiver of or consent to departure from any other Intellectual Property for, or any guaranty, or any other security, for all or any of the Obligations; (d) any action by the Secured Party to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Intellectual Property; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to the Company, or a discharge of all or any part of the Security Interest granted hereby.  Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy.  The Company expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Intellectual Property or any payment received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the Company’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof.  The Company waives all right to require the Secured Party to proceed against any other person or to apply any Intellectual Property which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy.  The Company waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

11.

Term of Agreement.  This Agreement and the Security Interest shall terminate on the date on which all payments under the Notes have been made in full and all other Obligations have been paid or discharged.  Upon such termination, the Secured Party, at the request and at the expense of the Company, will join in executing any termination statement with respect to any financing statement executed and filed pursuant to this Agreement. 

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12.

Power of Attorney; Further Assurances.

(a)

The Company authorizes the Secured Party, and does hereby make, constitute and appoint it, and its respective officers, agents, successors or assigns with full power of substitution, as the Company’s true and lawful attorney-in-fact, with power, in its own name or in the name of the Company, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any notes, checks, drafts, money orders, or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect of the Intellectual Property that may come into possession of the Secured Party; (ii) to sign and endorse any UCC financing statement or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating to the Intellectual Property; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Intellectual Property; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Intellectual Property; and (v) generally, to do, at the option of the Secured Party, and at the Company’s expense, at any time, or from time to time, all acts and things which the Secured Party deems necessary to protect, preserve and realize upon the Intellectual Property and the Security Interest granted therein in order to effect the intent of this Agreement, the Notes and the Warrants, all as fully and effectually as the Company might or could do; and the Company hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof.  This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

(b)

On a continuing basis, the Company will make, execute, acknowledge, deliver, file and record, as the case may be, in the proper filing and recording places in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C, attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by the Secured Party, to perfect the Security Interest granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to the Secured Party the grant or perfection of a security interest in all the Intellectual Property.

(c)

The Company hereby irrevocably appoints the Secured Party as the Company’s attorney-in-fact, with full authority in the place and stead of the Company and in the name of the Company, from time to time in the Secured Party’s discretion, to take any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Intellectual Property without the signature of the Company where permitted by law.

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13.

Notices.  All notices, requests, demands and other communications hereunder shall be in writing, with copies to all the other parties hereto, and shall be deemed to have been duly given when (i) if delivered by hand, upon receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof, (iii) if sent by nationally recognized overnight delivery service (receipt requested), the next business day or (iv) if mailed by first-class registered or certified mail, return receipt requested, postage prepaid, four days after posting in the U.S. mails, in each case if delivered to the following addresses:

If to the Company:

INFE

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, 

Human Resources, Inc.

67 Wall Street, 22nd Floor

New York, NY 10005

Attention: Chief Executive Officer 

Telephone:

(212) 859-3466

Facsimile:

With a copy to:

Laura Anthony, Esq.

330 Clemants Street, #217

West Palm Beach, FL 33401

Attention:  Laura Anthony, Esq.

Telephone:  (561) 514-0936

Facsimile:   (561) 514-0832

If to the Secured Party:

AJW Partners, LLC

AJW Offshore, Ltd.

AJW Qualified Partners, LLC

New Millennium Capital Partners, II, LLC

1044 Northern Boulevard

Suite 302

Roslyn, New York  11576

Attention:  Corey Ribotsky

Facsimile:  516-739-7115

With copies to:

Ballard Spahr Andrews & Ingersoll, LLP

1735 Market Street, 51st Floor

Philadelphia, Pennsylvania  19103

Attention:  Gerald J. Guarcini, Esquire

Facsimile:  215-864-8999

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14.

Other Security.  To the extent that the Obligations are now or hereafter secured by property other than the Intellectual Property or by the guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Secured Party shall have the right, in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying or affecting any of the Secured Party’s rights and remedies hereunder.

15.

Miscellaneous.

(a)

No course of dealing between the Company and the Secured Party, nor any failure to exercise, nor any delay in exercising, on the part of the Secured Party, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

(b)

All of the rights and remedies of the Secured Party with respect to the Intellectual Property, whether established hereby or by the Notes or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

(c)

This Agreement and the Security Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede all prior negotiations, understandings and agreements with respect thereto.  Except as specifically set forth in this Agreement, no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this Agreement and signed by the parties hereto.

(d)

In the event that any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason, unless such provision is narrowed by judicial construction, this Agreement shall, as to such jurisdiction, be construed as if such invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable.  If, notwithstanding the foregoing, any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction, such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability without invalidating the remaining portion of such provision or the other provisions of this Agreement and without affecting the validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction.

(e)

No waiver of any breach or default or any right under this Agreement shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of the same or similar nature or otherwise.

(f)

This Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and assigns.

14

(g)

Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order to carry out the provisions and purposes of this Agreement.

(h)

This Agreement shall be construed in accordance with the laws of the State of New York, except to the extent the validity, perfection or enforcement of a security interest hereunder in respect of any particular Intellectual Property which are governed by a jurisdiction other than the State of New York in which case such law shall govern.  Each of the parties hereto irrevocably submit to the exclusive jurisdiction of any New York State or United States Federal court sitting in Manhattan county over any action or proceeding arising out of or relating to this Agreement, and the parties hereto hereby irrevocably agree that all claims in respect of such action or proceeding may be heard and determined in such New York State or Federal court.  The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  The parties hereto further waive any objection to venue in the State of New York and any objection to an action or proceeding in the State of New York on the basis of forum non conveniens.

(i)

EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL FOLLOWING SUCH CONSULTATION.  THIS WAIVER IS IRREVOCABLE, MEANING THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.  IN THE EVENT OF A LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

(j)

This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

15

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

16

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year first above written.

INFE

-

,

 HUMAN RESOURCES, INC.

By:  _____________________________________

Arthur Viola

Chief Executive Officer

AJW PARTNERS, LLC

By: SMS Group, LLC

By:  _____________________________________

Corey S. Ribotsky

Manager

AJW OFFSHORE, LTD.

By:  First Street Manager II, LLC

By:  _____________________________________

Corey S. Ribotsky

Manager

AJW QUALIFIED PARTNERS, LLC

By:  AJW Manager, LLC

  

  

By:  _____________________________________

Corey S. Ribotsky

Manager

NEW MILLENNIUM CAPITAL PARTNERS II, LLC

By:  First Street Manager II, LLC

 

 

By:  _____________________________________

Corey S. Ribotsky

Manager

18

SCHEDULE A

Principal Place of Business of the Company:

Locations Where Intellectual Property is Located or Stored:

List of Subsidiaries of the Company:

19

 

SCHEDULE B

A.

Licenses, Patents and Patent Licenses

Registration or 

Patent

Application or Registration No. 

Country

Filing Date

B.

Trademarks and Trademark Licenses

Registration or 

Trademark

Application or Registration No. 

Country

Filing Date

C.

Copyrights and Copyright Licenses

Registration or 

Name

Application or Registration No. 

Country

Filing Date

D.

Trade Secrets and Trade Secret Licenses

Registration or 

Name

Application or Registration No. 

Country

Filing Date

20

SCHEDULE C

Jurisdictions:================================================================================

                                  EXHIBIT 10.15

                     INTELLECTUAL PROPERTY LICENSE AGREEMENT
                     ---------------------------------------

     THIS  AGREEMENT  is  made as of the  _____________________between  SPEAKING
ROSES  INTERNATIONAL,  INC.,  located at 404 Ironwood  Drive Salt Lake City Utah
84115;     USA      ("Licensor"),      and_________________,      located     at
_____________("Licensee").

                                   WITNESSETH:

       WHEREAS, Licensor has proprietary rights to certain intellectual property
used in the  printing,  marking,  stamping or embossing  of flowers,  plants and
other  products  ("Embossing  Process"),  has protected  rights to the Embossing
Process pursuant to United States and international patents pending and granted,
has developed  certain equipment and devices useful in the Embossing Process and
owns all rights in the United States and  throughout the world to the trademarks
used in  connection  with the  Embossing  Process,  (all of  which  intellectual
property is referred to hereinafter as "Licensed Property"); and

       WHEREAS,  Licensee  wishes to acquire from  Licensor the right to use the
Licensed Property pursuant to the terms and conditions of this Agreement.

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

       5.    Licensor hereby grants to  Licensee and Licensee hereby accepts for
the term of this Agreement, subject to the provisions and conditions hereinafter
set forth, the license ("License") to utilize the Licensed Property,  solely and
only in connection with the manufacture, distribution and sale, solely in retail
stores named SPEAKING ROSES, of the products set forth in Schedule "A," attached
hereto ("Licensed Products").

       6.    Licensee's  distribution  and sale of the Licensed  Products  shall
be  territorially  limited to such territory set forth in Schedule "B," attached
hereto  ("Territory"),  unless such limitation shall be in violation of the laws
of the territory.  No sales shall be made to any customer which Licensee  knows,
or has reason to believe, will export same from the Territory.

       7.    The license  granted   herein  shall  be  for  a  period  ("Initial
License Period") commencing on the above date ("Commencement Date") and expiring
as set forth in Schedule  "C,"  attached  hereto,  unless  terminated  sooner in
accordance  with the  provisions  of this  Agreement.  At the  expiration of the
Initial  License  Period,  the parties hereto shall  negotiate in good faith the
renewal of the term hereof.

       8.    (a)  Licensee  shall  pay  to  Licensor,  upon  execution  of  this
Agreement,  such sum as set forth in Schedule "F," attached hereto as an Initial
License Fee for each  individual  full-service  retail store location  opened by
Licensee.

                                        1
<PAGE>

             (b)  Licensee shall pay to Licensor such royalties ("Royalties") as
set forth in Schedule "G," attached hereto.  Royalties shall be paid by Licensee
based on Licensor's  monthly Gross Revenue,  excluding only sales, VAT and other
relevant taxes.

             (c)  All payments  made  pursuant to this and the  Equipment  Lease
Agreement shall be nonrefundable.

       9.    All payments hereunder  shall be by bank draft or wire transfer for
the full  amount of such  payment,  upon  terms  and  payable  at United  States
commercial banks  acceptable to Licensor in its sole discretion.  If the Central
bank or similar  governing body in the Territory  shall impose any  restrictions
preventing  payment of funds due to Licensor  hereunder,  and Licensee shall not
otherwise  remit such  amounts to  Licensor,  Licensor  may, in its  discretion,
terminate  this  Agreement and may instruct  Licensee to deposit such funds in a
specified account of Licensor in a banking institution located in the Territory.

       10.   (a)  Licensee  shall,  on or  before  the tenth  (10th) day of each
month,commencing the month following the month of the Commencement Date, furnish
Licensor complete and accurate statements ("Royalty  Statements"),  certified to
be accurate by Licensee and specifying Licensee's Gross Revenue.  Licensee shall
use such statement  forms as Licensor shall provide or approve.  Licensee shall,
upon  demand by  Licensor  but not more than once per year,  at its own  expense
furnish to Licensor a detailed  statement  prepared by an independent  certified
public  accountant  specifying  the  quantity  sold,  and the sales price of the
Licensed Products up to the date of Licensor's demand.

             (b)  Licensee  shall,  on  or  before  the  tenth (10th)day of each
month  commencing the month  following the month of the  Commencement  Date, pay
directly  to  Licensor,  in the manner  deemed  acceptable  to  Licensor,  which
Licensor shall have the right to modify upon reasonable notice to Licensee, such
sums as are  indicated  in the  Royalty  Statement  for the  month to which  the
Royalty Statement refers as due and payable to Licensor. All payments made shall
be in United  States  currency at the then  applicable  exchange rate and in the
form as specified by Licensor.  Interest at the rate of one and one-half percent
(1-1/2%) per month, or in the event that one and one-half  percent  (1-1/2%) per
month exceeds the legal limit,  then at the maximum legal rate,  shall accrue on
any amount due to  Licensor  from and after the date upon which said  payment is
due until  the date  said  payment  is  actually  made.  Licensor's  receipt  or
acceptance of any Royalty  Statement or Royalty paid pursuant to this  Agreement
(or the cashing of any check or draft constituting payment of any Royalty) shall
not preclude Licensor from questioning the correctness  thereof at any time, and
in the event that any  inconsistencies or mistakes are discovered in any Royalty
Statements  or  Royalty  payments,   Licensee  shall  immediately  rectify  such
inconsistencies or mistakes and shall pay the appropriate Royalty to Licensor.

             (c)  Licensee  shall  keep,  maintain  and  preserve  at Licensee's
principal place of business  accurate books of account and records  covering all
transactions  relating to the License and this Agreement.  Licensor and its duly
authorized  representative  shall have the right,  upon reasonable notice and at
all reasonable  hours of the day, to examine said books of account,  records and
all other  documents  and  material  in the  possession  or under the control of
Licensee with respect to the subject matter and terms of this Agreement and

                                       2
<PAGE>

shall have free and full access thereto to examine and make extracts  therefrom.
Licensee shall keep all such books of account and records available for at least
two (2) years  subsequent  to the  Expiration  Date,  or if the License has been
extended  through the Renewal License Period,  the Renewal  Expiration Date, and
Licensor and its duly authorized representatives shall have the right to examine
such books of account and  records  during  such two (2) year  period.  Licensor
agrees  that it will  conduct no more than one (1)  examination  pursuant to the
provisions  of this  Subparagraph  during any twelve (12) month  period.  In the
event such examination discloses any deficiencies greater than two percent (2%),
the costs of the  examination  will be paid by Licensee.

       11.   It is agreed  that,  for the  initial  setup of each retail  store,
Licensee  shall  purchase  from  Licensor  and/or its  approved  suppliers,  all
equipment,  inventory,  etc. that will be necessary to operate the retail store.
Thereafter,  Licensor shall provide Licensee a list of the designated  suppliers
of the Core Products and the Accessory Products,  all as set forth in Licensor's
operations manual  ("Products") for all subsequent  purchases,  all purchases of
floral  products  must be from  designated  suppliers.  If  Licensee  desires to
purchase any  equipment,  supplies,  services,  or products from  manufacturers,
distributors,  or suppliers  other than those  designated by Licensor,  Licensee
shall first make a written  request to  Licensor,  requesting  authorization  to
purchase  such items.  In connection  with such request for  approval,  Licensee
shall  submit  such  information  and  samples as  Licensor  requests  and, as a
condition  to any such  approval,  Licensor  shall have the right,  from time to
time, to inspect the facilities of such manufacturers, distributors or suppliers
to   assure   proper   production,   refrigeration,   handling,   storage,   and
transportation of the equipment, supplies, services, or products to be purchased
by Licensee.

       12.   (a)  Licensee shall, prior to Licensee's manufacture,  distribution
or sale of the Licensed Products,  submit to Licensor,  at Licensee's expense, a
prototype  sample  of  each  Licensed  Product,  together  with  any  packaging,
container, carton, enclosed material, tag, label, wrapping material, advertising
or  promotional  material  for  use in any  media  ("Packaging")  which  will be
associated in any manner with or used to promote the Licensed Products. Licensee
shall  not  commence  the  manufacture,  distribution  or sale  of the  Licensed
Products unless and until Licensor shall have approved in writing,  the artwork,
design,  quality and style of the Licensed Products and the Packaging.  Licensor
shall  endeavor to provide  Licensee as promptly  as  reasonably  possible  with
Licensor's written approval or written  disapproval of the Licensed Products and
the Packaging.  However,  if written  approval is not furnished  within ten (10)
business days of Licensor's receipt, approval is deemed denied.

             (b)  Licensee shall not, after having received  Licensor's  written
approval of the Licensed  Products and the Packaging  pursuant to the provisions
of  Paragraph  9(a),  above,  cause or permit any  deviation or variation in the
artwork,  design,  quality or style of the  Licensed  Products or the  Packaging
without Licensor's approval in writing prior to any such deviation or variation.
Licensor  shall own all  copyrights in the Licensed  Products and the Packaging.
Licensor may, but shall have no obligation to, register any copyrights.

       13.   Use by Licensee of the trademarks and, where  relevant, the patents
included within the Licensed  Property  ("Trademarks")  shall be governed by the
following additional conditions:

                                       3
<PAGE>

             (a)  Licensee agrees to limit  its  use  of the  Trademarks  to the
Territory and to the Licensed Products, all in accordance with the foregoing and
according to processes,  specifications and other quality standards  established
or approved by Licensor for the Licensed  Products in connection  with which the
Trademarks  are  used.

             (b)  In order that Licensor may be assured that the  provisions  of
this Agreement are being observed,  Licensee agrees that it shall allow Licensor
or its designee to enter upon Licensee's premises (including the premises of all
contract  manufacturers)  during regular business hours,  upon not less than ten
(10) days' notice,  for the purpose of inspecting the Licensed  Products and the
facilities in which the Licensed Products are manufactured and packaged.  In the
event that the quality  standards are not  maintained  throughout  the period of
manufacture of any Licensed Products  hereunder,  then, upon written notice from
Licensor,   Licensee  shall   immediately   discontinue   the   manufacture  and
distribution  of  those  specific  Licensed  Products  that do not meet the said
quality  standards and shall not resume the manufacture and distribution of such
Licensed  Products  until the quality  standards  are again met and  approved by
Licensor.

             (c)  Licensee agrees that the Trademarks shall be displayed only in
such form and manner as shall be  specifically  approved by  Licensor.  Licensee
also agrees that wherever  practical it shall cause to appear on all material on
or in connection with which the Trademarks are used, such legends,  markings and
notices  as  Licensor  may  request in order to give  appropriate  notice of any
Trademarks,  trade name or other  rights  therein  or  pertaining  thereto.

             (d)  Licensee  agrees  that it shall use no markings other than the
following  legend on and in connection with the Licensed  Products without first
obtaining Licensor's written approval:

             Trademarks  owned by SPEAKING ROSES INTERNATIONAL, INC. and used by
_____________under authorization.

             (e)  Licens ee  agrees, at  Licensee's  expense  and on  Licensor's
request,  to submit to Licensor a reasonable number of production samples of the
Licensed  Products and of any or all materials  bearing the  Trademarks in order
that the Licensor may be assured that the provisions of this Agreement are being
fulfilled.

             (f)  All  rights  in the  Trademarks  and the  other  areas  of the
Intellectual  Property other than those specifically granted herein are reserved
to Licensor for its own use and benefit. Licensee acknowledges that it shall not
acquire any rights of whatsoever  nature in the Licensed Property as a result of
Licensee's use thereof, and that all use of the Licensed Property shall inure to
the benefit of Licensor.

             (g)  Upon the termination of the term of this Agreement, all rights
to use the Licensed  Property in the manner provided for in this Agreement shall
revert automatically to Licensor, and Licensee shall immediately discontinue all
use of the Trademarks except as may herein be provided.

                                       4
<PAGE>

             (h)  Licensee  shall  not at any time  attack  the  title to or any
rights of Licensor  in and to the  Licensed  Property or attack the  validity of
this Agreement or breach the confidentiality of the terms of this Agreement.

             (i)  At its  sole  option, but  without  any  obligation  to do so,
Licensor  may, in its  discretion,  commence,  prosecute or institute  any suit,
action or proceeding in furtherance of any claims for  infringement or imitation
of the Licensed Property.  Licensee shall promptly notify Licensor in writing of
any manufacture,  distribution, sale or advertisement for sale of and product of
the same general type or class as the Licensed  Products which Licensee believes
may constitute an infringement  upon  Licensor's  rights or an authorized use of
the Licensed  Property.  Licensor  shall have the sole  discretion  and right to
determine  the  appropriate  action to be taken  against any such  infringement,
imitation  or  unauthorized  use of the  Licensed  Property  including  the sole
discretion to settle any such claims or any controversy  arising out of any such
claims.  Licensee  shall not  commence,  prosecute  or  institute  any action or
proceeding against any person,  firm or corporation in any manner related to the
Licensed Property. Licensee shall assist Licensor to such extent as Licensor may
reasonably request in protecting the Licensed Property.  Specifically,  Licensee
agrees  to  give  testimony,  provide  exhibits,  provide  facts  and  otherwise
cooperate with Licensor. Licensee shall not have any rights against Licensor for
damages or  otherwise by reason of any  determination  by Licensor not to act or
any  settlement  to  which  Licensor  may  agree  with  respect  to any  alleged
infringements  or  imitations  by others of the  Licensed  Property  and/or  the
Licensed  Products,  nor  shall  any  such  determination  of  Licensor  or such
settlement by Licensor affect the validity or enforceability of this Agreement.

       14.   If  Licensee  files a petition in bankruptcy, or is  adjudicated  a
bankrupt,  or if a petition  in  bankruptcy  is filed  against  Licensee,  or if
Licensee  becomes  insolvent,  or makes an  assignment  for the  benefit  of its
creditors  or an  arrangement  pursuant  to any  bankruptcy  law, or if Licensee
discontinues  its  business,  or if a receiver is appointed  for Licensee or its
business,  the License can be terminated at Licensor's sole option,  and without
notice,  upon the occurrence of any such event. In the event that the License so
terminates,  neither  Licensee  nor its  receivers,  representatives,  trustees,
agents,  administrators,  successors,  and/or  assigns  shall  have any right to
manufacture,  distribute,  sell,  exploit  or in any way  deal  with  any of the
Licensed  Products  or any  Packaging  except with and  pursuant  to  Licensor's
special consent and instructions in writing.

       15.   If Licensee shall breach any  provision of this  Agreement Licensor
shall have the right to  terminate  the  License  upon ten (10) days'  notice in
writing to  Licensee,  and such notice of  termination  shall  become  effective
unless  Licensee  shall  completely  cure said  breach  within said ten (10) day
period and satisfy Licensor that such breach has been cured.

       16.   If the License is terminated in  accordance with the  provisions of
the Agreement all Royalties due to Licensor in accordance with the provisions of
this Agreement  shall be immediately due and payable to Licensor within ten (10)
days from the effective date of any such termination of the License.

       17.   (a)  Licensee  hereby  indemnifies  and  agrees  to  hold  Licensor
harmless of and from any claims or suits  arising out of any alleged  defects in
the Licensed Products,  the unauthorized use of any patent,  process,  method or
device or out of infringement of any copyright,  trade name,  patent or libel or
invasion  of the right of  privacy,  publicity,  or other  property  rights,  or
failure to perform, or

                                       5
<PAGE>

infringement  or breach of any other  personal or property  right of any person,
firm, or  corporation  by Licensee,  its officers,  employees,  agents or anyone
directly or indirectly acting by, through, on behalf of, pursuant to contractual
or any other  relationship  with  Licensee in connection  with the  preparation,
manufacture,  distribution,  advertising,  promotion and/or sale of the Licensed
Products and/or any material  relating thereto and/or naming or referring to any
performers,  personnel,  marks and/or  elements.  With respect to the  foregoing
indemnification,  Licensee  shall defend and hold  harmless  said Licensor at no
cost and expense  whatsoever,  including but not limited to attorney's  fees and
court costs.  Licensor shall have the right to defend any such action or proceed
with  attorneys  of its own  selection.  Licensee  hereby  agrees  that it shall
indemnify  and  forever  hold  harmless  Licensor  against  and from any and all
claims, (whether justified or not) costs,  liabilities,  judgments,  damages and
expenses including,  without limitation,  reasonable attorneys' fees arising out
of any breach or alleged  breach by Licensee of any provision of this  Agreement
or any  misrepresentation  made by  Licensee  herein  or any  act not  expressly
authorized  by this  Agreement.

             (b)  As between the parties, Licensee will be responsible to ensure
that the logos,  pictures,  writing or other information it requests Licensor to
emboss for its products may be embossed  without  violating  any third  parties'
copyright, trademark, design, trade secret or other proprietary rights. Licensee
specifically  agrees to indemnify and hold harmless  Licensor and its Affiliates
from  any  and  all  claims,   actions,   demands,   damages   (whether  actual,
compensatory,  punitive or statutory),  losses, liabilities,  judgments, and all
costs and expenses,  including  reasonable  attorney's  fees, of whatever nature
instituted  or brought  by or  awarded  to any  person or entity  arising in any
manner  from  trademark  or  copyright   infringement   or  violation  of  other
proprietary rights as a result of printing,  marking,  stamping and embossing of
logos, pictures,  writing or other information on the Licensed Products pursuant
to an order  placed  by  Licensee  or its  consumers  under  this  Agreement  in
accordance with the terms of the order.

             (c)  Licensor  hereby  indemnifies  Licensee  and  agrees  to  hold
Licensee  harmless  of and from any  claims  or  suits,  and  related  costs and
attorney  fees,  arising solely out of Licensee's use pursuant to the License of
the Trademarks, provided that Licensee shall notify Licensor in writing promptly
upon Licensee's  acquiring  knowledge of any such claim or suit. With respect to
the  foregoing  indemnification,  Licensor  shall defend and hold  harmless said
Licensee  at no cost  and  expense  whatsoever,  including  but not  limited  to
attorney's fees and court costs. Licensor shall have the option to undertake and
conduct the defense of, at any time prior to  judgment,  any claim or suit which
may be subject to the indemnification  provisions of this subparagraph,  without
Licensee's express consent in writing.

             (d)  Notwithstanding  any other provisions of this Agreement, in no
event  shall  the   Licensee  or  the  Licensor  be  liable  to  the  other  for
consequential or indirect damages,  foreseeable or not, arising from the other's
performance or non-performance, negligent or otherwise, of its obligations under
this Agreement.

       18.   (a)  Licensee agrees that, for a period equal to the greater of (i)
the  term  of  any  United  States  patent  issued  on all  or  any  portion  of
Intellectual  Property or (ii) three (3) years following the termination of this
Agreement,  whether by  expiration,  default  or  otherwise,  Licensee  will not
directly or indirectly  make, use or sell any flowers,  plants or other products
that incorporate any portion of the Intellectual Property, or have any ownership

                                       6
<PAGE>

interest in, or participate in the financing,  operation,  management or control
of, either  directly or indirectly,  any person,  firm,  corporation or business
that  engages  in the  manufacture,  use or sale of  flowers,  plants  or  other
products that incorporate any portion of the Intellectual Property.

             (b)  Licensee agrees and  acknowledges that the time and geographic
limitations  on the  restrictions  contained in this  Agreement are  reasonable.
Licensee also acknowledges and agrees that same are necessary for the protection
of the Intellectual Property,  that under the terms of this Agreement,  Licensee
shall receive adequate consideration for any loss of opportunity associated with
the provisions herein, and that these provisions provide a reasonable method for
protecting  Licensor's business value which will be imparted to Licensee. If any
restriction  set  forth in this  paragraph  is  found  by a court  of  competent
jurisdiction  to be  unenforceable  because it extends  for too long a period of
time or over too great a range of  activities  or over too broad a  geographical
area, it shall be  interpreted  to extend only over the maximum  period of time,
range or  geographical  area as to which it may be  enforceable  and the parties
hereby affirm such restrictions as so modified.

       19.   Both  during  the  term  of  this  Agreement  and   following   the
termination  or  expiration  of this  Agreement,  Licensee will retain in strict
confidence,  and not disclose, any Confidential  Information to third parties or
use  Confidential  Information  for the benefit of anyone other than Licensee or
Licensor  without  the prior  written  consent  of  Licensor.  All  Confidential
Information  obtained  pursuant  to this  Agreement  shall  be  subject  to this
Agreement  unless expressly  excepted in writing by Licensor.  Licensee shall be
responsible for enforcing the  confidentiality  of the Confidential  Information
and shall  take such  actions,  including  commencement  of actions at law or in
equity,  to the extent  necessary  to  prevent  any  disclosure  by any of their
agents,  employees,  or  subcontractors.   Licensee  further  acknowledges  that
Licensor shall be entitled to equitable  relief by way of injunction if Licensee
breaches or threatens to breach any of the provisions of this Agreement.

       20.   The  language  of this  Agreement is  English, and any  amendments,
modifications, notices, or other communications provided in connection with this
Agreement shall be in English.  If this Agreement is translated into one or more
other languages, the English language version shall be the governing version for
purposes of interpreting and enforcing this Agreement.

       21.   Licensee  shall,  prior to  sixty (60) days prior to the Expiration
Date or, if the License is terminated  prior to the  Expiration  Date,  ten (10)
days after the effective date of any such termination,  account to Licensor in a
statement  indicating the number and description of the Licensed  Products which
Licensee  has on hand  and/or in process of  manufacture  as of the date of said
statement.  Licensor  shall have the option to conduct a physical  inventory  of
Licensee in order to verify such statement of remaining  inventory.  If Licensee
refuses to permit  Licensor to conduct such physical  inventory,  Licensee shall
forfeit its rights to dispose of any of the Licensed Products  subsequent to the
Expiration  Date  or the  effective  date  of any  termination  pursuant  to the
provisions  of this  Agreement.  Nothing  contained in this  paragraph  shall be
construed to limit Licensor's rights or remedies.

       22.   (a)  Licensee  shall  have  the  right  to  dispose  of, on  a non-
exclusive  basis,  for a period of sixty (60) days  subsequent to the Expiration
Date such items of the Licensed  Products as Licensee has remaining in inventory
as of the Expiration Date provided that Licensee shall have complied with all of
the provisions of this Agreement.  Any Licensed  Products not disposed of at the

                                       7
<PAGE>

expiration  of said  sixty (60) day  period  shall,  at  Licensor's  option,  be
delivered to Licensor or destroyed.

             (b)  If  the  License  is  terminated pursuant to the provisions of
this Agreement, Licensee shall not dispose of any items of the Licensed Products
which Licensee has remaining in inventory without  Licensor's express consent in
writing and in strict  accordance with such  instructions as Licensor shall give
to Licensee.

             (c)  Upon the  expiration of the Disposal  Period,  Licensee  shall
provide  to  Licensor  a final  statement  of the  total  number of items of the
Licensed  Products  distributed  and sold by Licensee during the Initial License
Period and the Disposal Period.

       23.   (a)  Licensee's  failure  to  cease  the manufacture, distribution,
sale or advertisement  for sale of the Licensed  Products upon the expiration or
termination  of the License will result in immediate and  irreparable  damage to
Licensor.  Licensee  acknowledges that no adequate remedy at law exists for such
failure to cease the manufacture,  distribution,  sale or advertisement for sale
of the Licensed  Products and Licensee agrees that Licensor shall be entitled to
the remedies of injunction,  specific  performance or other equitable  relief to
prevent a breach of this Agreement by Licensee.

             (b)  None of the provisions of  Subparagraph  (a) of this Paragraph
shall constitute or be construed to limit or waive any rights and remedies which
Licensor may have.

       24.   Licensee   shall  be  released  from  its  obligations  under  this
Agreement in the event that governmental regulations or other causes arising out
of a state of  national  emergency  or war,  or causes  beyond  the  control  of
Licensee render performance by Licensee impossible, hi such event, all Royalties
due with respect to sales by Licensee of the Licensed  Products shall become due
and  payable  and no  portion  of the  Advance  Payment  shall be  repayable  or
returnable  to  Licensee.  Licensee's  release of  obligations  pursuant  to the
provisions of this paragraph shall be limited to a delay in time for Licensee to
meet its obligations for a period not to exceed two (2) months,  and if Licensee
fails to meet such obligations  after such two (2) month period,  Licensor shall
have the absolute  right to terminate  the License upon ten (10) days' notice in
writing to Licensee,  which notice of termination  shall become effective unless
Licensee  shall  completely  meet all of its  obligations  under this  Agreement
within  said  ten  (10)  day  period  and  satisfy  Licensor  that  all of  said
obligations have been met.

       25.   (a)  Licensor may assign  its  rights  and  obligations  under this
Agreement to any person,  firm or corporation.  Licensor agrees to give Licensee
written  notice  of any  such  assignment  pursuant  to the  provisions  of this
paragraph.

             (b)  The License herein granted is personal to Licensee and may not
be assigned, transferred, pledged, mortgaged or otherwise encumbered by Licensee
in whole or in part, except as approved by Licensor in writing.

       26.   This  Agreement does not constitute  and shall not be  construed to
constitute an agency,  a partnership,  or a joint venture  between  Licensor and
Licensee. Licensee shall have no right to obligate or to bind Licensor in any

                                       8
<PAGE>

manner  whatsoever,  and nothing  contained in this  Agreement  shall give or is
intended  to give any  rights of any nature to any third  party.

       27.   (a)  In the event  that any legal action or any other proceeding is
commenced to enforce any provision of this Agreement or as a result of a breach,
default or misrepresentation in connection with any provision of this Agreement,
the successful or prevailing  party shall be entitled,  in addition to any other
relief to which said party may be  entitled,  to recover  reasonable  attorneys'
fees and costs of litigation incurred in such action or proceeding.

             (b)  Except  as  specifically  set forth in this Agreement, any and
all  disputes,  controversies  and claims  arising  out of or  relating  to this
Agreement,  or concerning the respective rights or obligations hereunder, of the
parties hereto shall be settled and determined by arbitration in Salt Lake City,
Utah, in accordance with and pursuant to the then existing rules of the American
Arbitration Association.  The arbitrators shall have the power to award specific
performance or injunctive relief and reasonable  attorneys' fees and expenses to
any party in such arbitration  power.  The arbitration  award shall be final and
binding  upon the parties  and  judgment  therein  shall be entered in any court
having jurisdiction thereof. The service of any notice, process, motion or other
document in connection  with an  arbitration  under this  Agreement,  or for the
enforcement  of any  arbitration  award  hereunder,  or in  connection  with any
judicial  action for  injunctive  relief  sought by Licensor may be  effectuated
either by personal service upon a party at the address hereinabove  provided, or
as otherwise  provided by law, and with respect to any such judicial  action the
parties hereby submit to the jurisdiction of the federal and state courts in the
State of Utah.

       28.   Notices  by either party to the other shall be in writing and shall
be given by addressing them as indicated above and sending them by registered or
certified  mail or by sending them by  facsimile  with  confirmation  copy or by
email to follow.  All  statements  and notices  hereunder  shall be given at the
respective  addresses of Licensor and Licensee as set forth on the first page of
this Agreement  unless  written notice of a change of address is given.  Notices
shall be deemed  effective the date the notice is given,  except that notices of
change of address shall be effective when received.

       29.   This  Agreement  shall be  governed by and  construed  under and in
accordance with the laws of the State of Utah as an agreement made and wholly to
be performed  therein and Licensee  hereby  consents to the  jurisdiction of the
State Courts of Utah or the Federal Courts located therein.

       30.   This  Agreement  may  be  signed  in separate counterparts, each of
which  is  deemed  to be an  original  and all of  which  taken  together  shall
constitute one and the same agreement.  Licensee may indicate its agreement with
the terms and conditions  hereof and may become party to this Agreement  through
electronic execution.

       31.   This   Agreement   constitutes  the  entire  understanding  between
Licensor  and  Licensee  and shall not be modified or amended  unless in writing
signed by both Licensor and Licensee. The failure of either Licensor or Licensee
to enforce,  or the delay by Licensor  or  Licensee  in  enforcing,  any of said
party's

                                       9
<PAGE>

rights under this Agreement  shall not be deemed a continuing  waiver,  and said
party  may,  within  such  time  as is  provided  by  applicable  law,  commence
appropriate suits, actions or proceedings to enforce any or all such rights.

                                       10
<PAGE>

       IN WITNESS WHEREOF, Licensor and Licensee have executed this Agreement as
of the date first above written.

                          SPEAKING ROSES INTERNATIONAL, INC.
                          ("Licensor")

                          By
                            ----------------------------------------------------
                                                                         (Title)

                          -----------------
                          ("Licensee")

                          By
                          ------------------------------------------------------
                                                                         (Title)

                                       11
<PAGE>

                                    SCHEDULES
                                    ---------

                                  SCHEDULE "A"

                               Licensed Products:

Flowers, plants and other products that are embossed, marked, printed or stamped
                         using the Embossing Process.

                                  SCHEDULE "B"

                                   Territory:

                                  -------------

                                  SCHEDULE "C"

                             Initial License Period:

                    Ten (10) years from the Commencement Date

                                  SCHEDULE "D"

                              Initial License Fee:

                                  SCHEDULE "E"

                                   Royalties:

                                Five (5%) Percent

                                       12

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