Document:

10.1 1999 Stock Option Plan of the Company

                         VERTICAL COMPUTER SYSTEMS, INC.
                            (a Delaware Corporation)

                                STOCK OPTION PLAN

                                December 15, 1999

1.    PURPOSE OF PLAN; ADMINISTRATION

      1.    Purpose

The Vertical Computer Systems, Inc. Stock Option Plan (hereinafter the "Plan"),
            is hereby established to grant to officers and other employees of
            Vertical Computer Systems, Inc., a Delaware corporation (the
            "Company") or its parents or subsidiaries (as defined in Sections
            424(e) and (f), respectively, of the Internal Revenue Code of 1986,
            as amended (the "Code")), if any, and to non-employee directors,
            consultants and advisors and other persons who may perform
            significant services for or on behalf of the Company, a favorable
            opportunity to acquire common stock, $.001 par value ("Common
            Stock"), of the Company and, thereby, to create an incentive for
            such persons to remain in the employ of or provide services to the
            Company and to contribute to its success.

      The Company may grant under the Plan both incentive stock options within
the meaning of Section 422 of the Code ("Incentive Stock Options") and stock
options that do not qualify for treatment as Incentive Stock Options
("Nonstatutory Options"). Unless expressly provided to the contrary herein, all
references herein to "options," shall include both incentive Stock Options and
Nonstatutory Options.

      1.2   Administration

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      The Plan shall be administered by the Board of Directors of the Company
(the "Board" or "Committee"), or a committee of two or more directors.
Appointment of Committee members shall be effective upon acceptance of
appointment. Committee members may resign at any time by delivering written
notice to the Board. Vacancies in the Committee may be filled by the Board.

      A majority of the members of the Committee shall constitute a quorum for
the purposes of the Plan. Provided a quorum is present, the Committee may take
action by affirmative vote or consent of a majority of its members present at a
meeting. Meetings may be held telephonically as long as all members are able to
hear one another, and a member of the Committee shall be deemed to be present
for this purpose if he or she is in simultaneous communication by telephone with
the other members who are able to hear one another. In lieu of action at a
meeting, the Committee may act by written consent of a majority of its members.

      Subject to the express provisions of the Plan, the Committee shall have
the authority to construe and interpret the Plan and all Stock Option Agreements
(as defined in Section 3.4) entered into pursuant hereto and to define the terms
used therein, to prescribe, adopt, amend and rescind rules and regulations
relating to the administration of the Plan and to make all other determinations

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necessary or advisable for the administration ofthe Plan; provided, however,
that the Committee may delegate nondiscretionary administrative duties to such
employees of the Company as it deems proper; and, provided, further. in its
absolute discretion, the Board may at any time and from time to time exercise
any and all rights and duties of the Committee under the Plan. Subject to the
express limitations of the Plan, the Committee shall designate the individuals
from among the class of persons eligible to participate as provided in Section
1.3 who shall receive options, whether an optionee will receive Incentive Stock
Options or Nonstatutory Options, or both, and the amount, price, restrictions
and all other terms and provisions of such options (which need not be
identical).

      Members of the Committee shall receive such compensation for their
services as members as may be determined by the Board. All expenses and
liabilities which members of the Committee incur in connection with the
administration of this Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants,
appraisers, brokers or other persons. The Committee, the Company and the
Company's officers and directors shall be entitled to rely upon the advice,
opinions or valuations of any such persons. No members of the Committee or the
Board shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Plan, and all members of the Committee
shall be fully protected by the Company in respect of any such action,
determination or interpretation.

      1.3   Participation

Officers and other employees of the Company, non-employee directors, consultants
            and advisors and other persons who may perform significant services
            on behalf of the Company shall be eligible for selection to
            participate in the Plan upon approval by the Committee; provided,
            however, that only "employees" (within the meaning of Section
            3401(c) of the Code) of the Company shall be eligible for the grant
            of Incentive Stock Options. An individual who has been granted an
            option may, if otherwise eligible, be granted additional options if
            the Committee shall so determine. No person is eligible to
            participate in the Plan by matter of right; only those eligible
            persons who are selected by the Committee in its discretion shall
            participate in the Plan.

      1.4   Stock Subject to the Plan.

      Subject to adjustment as provided in Section 3.5, the stock to be offered
tinder the Plan shall be shares of authorized by unissued Common Stock,
including any shares repurchased under the terms of the Plan or any Stock Option
Agreement entered into pursuant hereto. The cumulative number of shares of
Common Stock to be issued under the Plan shall not exceed 2,500,000 subject to
adjustment as set forth in Section 3.5.

      If any option granted hereunder shall expire or terminate for any reason
without having been fully exercised, the unpurchased shares subject thereto
shall again be available for the purposes ofthe Plan. For purposes of this
Section 1.4, where the exercise price of options is paid by means of the
grantee's surrender of previously owned shares of Common Stock, only the net
number of additional shares of Common Stock, only the net number of additional
shares issued and which remain

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outstanding in connection with such exercise shall be deemed "issued" for
purposes of the Plan.

2.    STOCK OPTIONS

      2.1   Exercise Price; Payment.

      (a) The exercise price of each Incentive Stock Option granted under the
Plan shall be determined by the Committee, but shall not be less than 100% of
the "Fair Market Value" (as defined below) of Common Stock on the date of grant.
If an Incentive Stock Option is granted to an employee who at the time such
option is granted owns (within the meaning of section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of capital stock of
the Company, the option exercise price shall be at least 110% of the Fair Market
Value of Common Stock on the date of grant. The exercise price of each
Nonstatutory Option also shall be determined by the Committee, but shall not be
less than 85% of the Fair Market Value of Common Stock on the date of grant. The
status of each option granted under the Plan as either an Incentive Stock Option
or a Nonstatutory Option shall be determined by the Committee at the time the
Committee acts to grant the option, and shall be clearly identified as such in
the Stock Option Agreement relating thereto.

      "Fair Market Value" for purposes of the Plan shall mean: (i) the closing
price of a share of Common Stock on the principal exchange on which shares of
Common Stock are then trading, if any, on the day immediately preceding the date
of grant, or, if shares were not traded on the day preceding such date of grant,
then on the next preceding trading day during which a sale occurred; or (ii) if
Common Stock is not traded on as exchange but is quoted on Nasdaq or a successor
quotation system, (1) the last sales price (if Common Stock is then listed on
the Nasdaq Stock Market) or (2) the mean between the closing representative bid
and asked price (in all other cases) for Common Stock on the day prior to the
date of grant as reported by Nasdaq or such successor quotation system or (iii)
if there is no listing or trading of Common Stock either on a national exchange
or over-the-counter, that price determined in good faith by the Committee to be
the fair value per share of Common Stock, based upon such evidence as it deems
necessary or advisable.

      (b) In the discretion of the Committee at the time the option is
exercised, the exercise price of any option granted under the Plan shall be paid
in full in cash, by check or by the optionee's interest-bearing promissory note
(subject to any limitations of applicable state corporations law) delivered at
the time of exercise; provided, however, that subject to the timing requirements
of Section 2.7, in the discretion of the Committee and upon receipt of all
regulatory approvals, the person exercising the option may deliver as payment in
whole or in part of such exercise price certificates for Common Stock of the
Company (duly endorsed or with duly endorsed stock powers attached), which shall
be valued at its Fair Market Value on the day of exercise fo the option, or
other property deemed appropriate by the Committee; and, provided further, that
subject to Section 422 of the Code, so-called cashless exercises as permitted
under applicable rules and regulations of the Securities and Exchange Commission
and the Federal Reserve Board shall be permitted in the discretion of the
Committee. Without limiting the Committee's discretion in this regard,
consecutive

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book entry stock-for-stock exercises of options (or "pyramiding") also are
permitted in the Committee's discretion.

      Irrespective of the form of payment, the delivery of shares issuable upon
the exercise of an option shall be conditioned upon payment by the optionee to
the Company of amounts sufficient to enable the Company to pay all federal,
state, and local withholding taxes resulting in, the Company's judgment, from
the exercise. In the discretion of the Committee, such payment to the Company
may be effected through (i) the Company's withholding from the number of shares
of Common Stock that would otherwise be delivered to the optionee by the Company
on exercise of the option a number of shares of Common Stock equal in value (as
determined by the Fair Market Value of Common Stock on the date of the exercise)
to the aggregate withholding taxes, (ii) payment by the optionee to the Company
of the aggregate withholding taxes in cash, (iii) withholding by the Company
from other amounts contemporaneously owed by the Company to the optionee, or
(iv) any combination of these three methods, as determined by the Committee in
its discretion.

      2.2   Option Period.

      (a) The Committee shall provide, in the terms of each Stock Option
Agreement, when the option subject to such agreement expires and becomes
unexercisable, but in no event will an Incentive Stock Option granted under the
Plan be exercisable after the expiration often years from the date is granted.
Without limiting the generality of the foregoing, the Committee may provide in
the Stock Option Agreement that the option subject thereto expires 30 days
following a Termination of Employment (as defined in Section 3.2 hereof) for any
reason other than death or disability, or six months following a Termination of
Employment for disability or following an optionee's death.

      (b) Outside Date for Exercise. Notwithstanding any provisions of this
Section 2.2, in no event shall any option granted under the Plan be exercised
after the expiration date of such option set forth in the applicable Stock
Option Agreement.

      2.3   Exercise of Options.

      Each option granted under the Plan shall become exercisable and the total
number of shares subject thereto shall be purchaseable, in a lump sum or in such
installments, whichneed not be equal, as the Committee shall determine;
provided, however, that each option shall become exercisable in full no later
than ten years after such option is granted, and each option shall become
exercisable as to at least 10% of the shares of Common Stock covered thereby on
each anniversary of the date such option is granted; and provided, further, that
if the holder of an option shall not in any given installment period purchase
all of the shares which such holder is entitled to purchase in such installment
period, such holder's right to purchase any share not purchased in such
installment period shall continue until the expiration or sooner termination of
such holder's option. The Committee may, at any time after grant of the option
and from time to time, increase the number of shares purchasable in any
installment, subject to the total number of shares subject to the option and the
limitations set forth in Section 2.5. At any time and from time to time prior to
the time when any

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exercisable option or exercisable portion thereof becomes unexercisable under
the Plan or the applicable Stock Option Agreement, such option, or portion
thereof may be exercised in whol or in part; provided, however, that the
Committee may, by the terms of the option, require any partial exercise to be
with respect to a specified minimum number of shares. No option or installment
thereof shall be exercisable except with respect to whole shares. Fractional
share interests shall be disregarded, except that they may be accumulated as
provided above and except that if such a fractional share interest constitutes
the total the total shares of Common Stock remaining available for purchase
under an option at the time of exercise, the optionee shall be entitled to
receive on exercise a certified or bank cashier's check in an amount equal to
the Fair Market Value of such fractional share of stock.

      2.4   Transferability of Options.

Except as the Committee may determine as aforesaid, an option granted under the
            Plan shall, by its terms, be nontransferable by the optionee other
            than by will or the laws of descent and distribution, or pursuant to
            a qualified domestic relations order (as defined by the Code), and
            shall be exercisable during the optionee's lifetime only by the
            optionee or by his or her guardian or legal representative. More
            particularly, but without limiting the generality of the immediately
            preceding sentence, an option may not be assigned, transferred
            (except as provided in the preceding sentence), pledged or
            hypothecated (whether by operation of law or otherwise), and shall
            not be subject to execution, attachment or similar process. Any
            attempted assignment, transfer, pledge, hypothecation or other
            disposition of any option contrary to the provisions of the Plan and
            the applicable Stock Option Agreement, and any levy of any
            attachment or similar process upon an option, shall be null and
            void, and otherwise without effect, and the Committee may, in its
            sole discretion, upon the happening of any such event, terminate
            such option forthwith.

      2.5   Limitation on Exercise of Incentive Stock Options.

      To the extent that the aggregate Fair Market Value (determined on the date
of grant as provided in Section 2.1 above) of the Common Stock with respect to
which Incentive Stock Options granted hereunder (together with all other
Incentive Stock Option plans of the Company) are exercisable for the first time
by an optionee in any calendar year under the Plan exceeds $100,000, such
options granted hereunder shall be treated as Nonstatutory Options to the extent
required by Section 422 of the Code. The rule set forth in the preceding
sentence shall be applied by taking options into account in the order in which
they were granted.

      2.6   Disqualifying Dispositions of Incentive Stock Options.

If Common Stock acquired upon exercise of any Incentive Stock Option is disposed
            of in a disposition that, under Section 422 of the Code,
            disqualifies the option holder from the application of Section 42
            1(a) of the Code, the holder of the Common Stock immediately before
            the disposition shall comply with any requirements imposed by the
            Company in order to enable the Company to secure the related income
            tax deduction to which it is entitled in such event.

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      2.7   Certain Timing Requirements.

      At the discretion of the Committee, shares of Common Stock issuable to the
optionee upon exercise of an option may be used to satisfy the option exercise
price or the tax withholding consequences of such exercise, in the case of
persons subject to Section 16 of the Securities Exchange Act of 1934, as
amended, only (i) during the period beginning on the third business day
following the date of release of the quarterly or annual summary statement of
sales and earnings of the company and ending on the twelfth business day
following such date or (ii) pursuant to an irrevocable written election by the
optionee to use shares of Common Stock issuable to the optionee upon exercise of
the option to pay all or part of the option price or the withholding taxes made
at least six months prior to the payment of such option price or the withholding
taxes made at least six months prior to the payment of such option price or
withholding taxes.

      2.8   No Effect on Employment.

      Nothing in the Plan or in any Stock Option Agreement hereunder shall
confer upon any optionee any right to continue in the employ of the Company, any
Parent Corporate or any subsidiary or shall interfere with or restrict in any
way the rights of the Company, its Parent Corporation and its Subsidiaries,
which are hereby expressly reserved, to discharge any optionee at any time for
any reason whatsoever, with or without cause.

      For purposes of the Plan, "Parent Corporation" shall mean any corporation
in an unbroken chain of corporations ending with the Company if each of the
corporations other than the Company then owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other
corporations in such chain. For purposes of the Plan, "Subsidiary" shall mean
any corporation in an unbroken chain of corporations beginning with the Company
if each of the corporations other than the last corporation in the unbroken
chain then owns stock possessing 50% or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

3.    OTHER PROVISIONS

      3.1   Sick Leave and Leaves of Absence

Unless otherwise provided in the Stock Option Agreement, and to the extent
            permitted by Section 422 of the Code, an optionee's employment shall
            not be deemed to terminate by reason of sick leave, military leave
            or other leave of absence approved by the Company if the period of
            any such leave does not exceed a period approved by the Company is
            guaranteed either contractually or by statute. A Stock Option
            Agreement may contain such additional or different provisions with
            respect to leave of absence as the Committee may approve, either at
            the time of grant of an option or at a later time.

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      3.2   Termination of Employment.

For purposes of the Plan "Termination of Employment," shall mean the time when
            the employee-employer relationship between the optionee and the
            Company, any Subsidiary or any Parent Corporation is terminated for
            any reason, including, but not by way of limitation, a termination
            by resignation, discharge, death, disability or retirement; but
            excluding (i) terminations where there is a simultaneous
            reemployment or continuing employment of an optionee by the Company,
            any Subsidiary or any Parent Corporation, (ii) at the discretion of
            the Committee, terminations which result in a temporary severance of
            the employee-employer relationship, and (iii) at the discretion of
            the committee, terminations which are followed by the simultaneous
            establishment of a consulting relationship by the Company, a
            Subsidiary or any Parent Corporation with the former employee.
            Subject to Section 3.1, the Committee, in its absolute discretion,
            shall determine the effect of all matters and questions relating to
            Termination of Employment; provided, however, that, with respect to
            employee-employer relationship shall constitute a Termination of
            Employment if and to the extent that such leave of absence or other
            change interrupts employment for the purposes of Section 422(a) (2)
            of the Code and the then-applicable regulations and revenue ruling
            under said Section.

      3.3   Issuance of Stock Certificates.

Upon exercise of an option, the Company shall deliver to the person exercising
            such option a stock certificate evidencing the shares of Common
            Stock acquired upon exercise. Notwithstanding the foregoing, the
            Committee in its discretion may require the Company to retain
            possession of any certificate evidencing stock acquired upon
            exercise ofan option which remains subject to repurchase under the
            provisions of the Stock Option Agreement or any other agreement
            signed by the optionee in order to facilitate such repurchase
            provisions.

      3.4   Terms and Conditions of Options.

      Each option granted under the Plan shall be evidenced by a written Stock
Option Agreement ("Stock Option Agreement") between the option holder and the
Company providing that the option is subject to the terms and conditions of the
Plan and to such other terms and conditions not inconsistent therewith as the
Committee may deem appropriate in each case.

      3.5   Adjustments Upon Changes in Capitalization; Merger and
            Consolidation.

If the outstanding share of Common Stock are changed into, or exchanged for cash
            or a different number or kind of shares or securities of the Company
            or of another corporation through reorganization, merger,
            recapitalization, reclassification, stock split-up, reverse stock
            split, stock dividend, stock consolidation, stock combination, stock
            reclassification or similar transaction, an appropriate adjustment
            shall be made by the Committee in the number and kind of shares as
            to which options may be granted. In the event of such a change or
            exchange, other than for shares or securities of another corporation
            or by reason of reorganization, the Committee shall also make a
            corresponding

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adjustment changing the number or kind of shares and the exercise price per
share allocated to unexercised options or portions thereof; which shall have
been granted prior to any such change, shall likewise be made. Any such
adjustment, however, shall be made without change in the total price applicable
to the unexercised portion of the option (except for any change in the aggregate
price resulting from rounding-off of shares quantities or prices).

      In the event of a "spin-off' or other substantial distribution of assets
of the Company which has a material diminutive effect upon the Fair Market Value
of the Common Stock, the Committee in its discretion shall make an appropriate
and equitable adjustment to the exercise prices of options then outstanding
under the Plan.

      Where an adjustment under this Section 3.5 of the type described above is
made to an Incentive Stock Option, the adjustment will be made in a manner which
will not be considered a "modification" under the provisions of subsection
424(b)(3) of the Code.

      In connection with the dissolution or liquidation of the Company or a
partial liquidation involving 50% or more of the assets of the Company, a
reorganization of the Company in which another entity is the survivor, a merger
or reorganization of the Company under which more than 50% of the Common Stock
outstanding prior to the merger or reorganization is converted into cash or into
a security of another entity, a sale of more than 50% of the Company's assets,
or a similar event that the Committee determines, in its discretion, would
materially alter the structure of the Company or its ownership, the Committee,
upon 30 days prior written notice to the option holders, may, in its discretion,
do one or more of the following: (i) shorten the period during which options are
exercisable (provided they remain exercisable for at least 30 days after the
date the notice is given); (ii) accelerate any vesting schedule to which an
option is subject; (iii) arrange to have the surviving or successor entity grant
securities and option prices, or (iv) cancel options upon payment to the option
holders in cash, with respect to each option to the extent then exercisable
(including any options as to which the exercise has been accelerated as
contemplated in clause (ii) above, of any amount that is the equivalent of the
Fair Market Value of the Common Stock (at the effective time of the dissolution,
liquidation, merger, reorganization, sale or other event) or the fair market
value of the option. In the case of a change in corporate control, the Committee
acceleration of the exercisability of any option pursuant to this Section 3.5,
take into account the penalties that my result directly or indirectly from such
acceleration to either the Company or the option holder, or both, under Section
280G of the Code, and may decide to limit such acceleration to the extent
necessary to avoid or mitigate such penalties or their effects.

      No fractional share of Common Stock shall be issued under the Plan on
account of any adjustment under this Section 3,5.

      3.6   Rights of Participants and Beneficiaries.

      The Company shall pay all amounts payable hereunder only to the option
holder or beneficiaries entitled thereto pursuant to the Plan. The Company shall
not be liable for the date,

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      3.10  Privileges of Stock Ownership; Non-Distributive Intent; Reports to
            Option Holders.

      A participant in the Plan shall not be entitled to the privilege of stock
ownership as to any shares of Common Stock not actually issued to the optionee.
Upon exercise of an option at a time when there is not in effect under the
Securities Act of 1933, as amended, a Registration Statement relating to the
delivery a Prospectus meeting the requirement of Section 1 O(a)(3) of said Act,
the optionee shall represent and warrant in writing to the Company that the
shares purchased are being acquired for investment and not with a view to the
distribution thereof.

      The Company shall furnish to each optionee under the Plan the Company's
annual report and such other periodic reports, if any, as are disseminated by
the Company in the ordinary course to its stockholders.

      3.11  Legending Share Certificates.

      In order the enforce any restrictions imposed upon Common Stock issued
upon exercise of an option granted under the Plan or to which such Common Stock
may be subject, the Committee may cause a legend or legends to be placed on any
share certificates representing such Common Stock, which legend or legends shall
made appropriate reference to such restrictions, including, but not limited to,
a restriction against sale of such Common Stock for any period of time as may be
required by applicable laws or regulations. If any restrictions with respect to
which a legend was placed on any certificate ceases to apply to Common Stock
represented by such certificate, the owner of the Common Stock represented by
such certificates may require the Company to cause the issuance of a new
certificate not bearing the legend.

      Additionally, and not by way of limitation, the Committee may impose such
restrictions on any Common Stock issued pursuant to the Plan as it may deem
advisable, including, without limitation., restrictions under the requirements
of any stock exchange upon which Common Stock is then traded.

      3.12  Use of Proceeds.

      Proceeds realized pursuant to the exercise of options Under the Plan shall
constitute general funds of the Company.

      3.13  Changes in Capital Structure; No Impediment to Corporate
            Transaction.

      The existence of outstanding options under the Plan shall not effect the
Company's right to effect adjustments, recapitalization, reorganizations or
other changes in its or any other corporation's capital structure or business,
any merger or consolidation, any issuance of bonds, debentures, preferred or
prior preference stock ahead of or affecting Common Stock, the dissolution or
liquidation of the Company's or any other corporation's assets or business, or
any other corporate

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act, whether similar to the events described above or otherwise.

      3.14  Effective Date of the Plan.

      The Plan shall be effective as of the date of its approval by the
stockholders of the Company within twelve months after the date of the Board's
initial adoption of the Plan. Options may be granted but not exercised prior to
stockholder approval of the Plan. If any options are so granted and stockholder
approval shall not have been obtained within twelve months of the date of
adoption of this Plan by the Board ofDirectors, such options shall terminate
retroactively as ofthe date they were granted.

      3.15  Termination.

      The Plan shall terminate automatically as of the close of business on
December 15, 2009 or earlier as provided in Section 3.8. Unless otherwise
provided herein, the termination of the Plan shall not affect the validity of
any option agreement outstanding at the date of such termination.

      3.16  No Effect on Other Plans.

      The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company, any Subsidiary or any Parent
Corporation. Nothing in the Plan shall be construed to limit the right of the
Company (i) to establish any other forms or incentives or compensation for
employees of the Company, any Subsidiary or any Parent Corporation or (ii) to
grant or assume options or other rights otherwise that under the Plan in
connection with any proper corporate purpose including but not by way of
limitation, the grant or assumption of options in connection with the
acquisition by purchase. lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, partnership, firm or association.

      10.2  Business Development and Marketing Agreement between Company and
            Avenel Alliance, Inc.BUSINESS DEVELOPMENT AND MARKETING AGREEMENT

      THIS BUSINESS DEVELOPMENT AND MARKETING AGREEMENT (this "Agreement") is
made as of September 7, 2000, by and between Avenel Alliance, Inc., a Florida
corporation ("Avenel Alliance") and its successors and assigns and Vertical
Computer Systems, Inc., a Delaware corporation (the "Company").

                                    RECITALS:

      WHEREAS, the Company is in the business of providing Internet services,
including distributing content via multi-lingual portals, developing software
and building e-commerce solutions. The Company desires to have Avenel Alliance
provide certain services to the Company for the conduct of the business of the
Company; and

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      WHEREAS, Avenel Alliance is willing to provide certain services to the
Company on the terms and subject to the conditions contained in this Agreement.

      NOW, THEREFORE, in consideration of the covenants and mutual agreements
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound, do hereby agree as follows:

1.    Services.

            1.1 Scope of the Services. During the Term (as defined below) and on
the terms and subject to the conditions contained herein, Avenel Alliance shall
provide to the Company those services described on Schedule A attached hereto
and incorporated herein by this reference (the "Services"), and such other
services as the parties may determine, from time to time, which services shall
be set forth in writing and subject to the terms and conditions hereof. Avenel
Alliance shall use commercially reasonable efforts to perform the Services in a
diligent manner; provided, however, the Company acknowledges that Avenel
Alliance will provide services to other entities simultaneously with the
providing of the Services hereunder. Avenel Alliance shall be entitled to
perform the Services through its parent, subsidiaries, affiliates, related
entities and other agents.

            1.2 Method of Performing the Services. Avenel Alliance shall have
the right to determine the method, details, hours and means of performing the
Services. The Company shall have no right to, and shall not, control the manner
or determine the method of accomplishing the Services; provided, however, the
Company shall be entitled to exercise the general power of supervision,
including the right to inspect and the right to make suggestions or
recommendations as to the Services. The Company agrees to provide working space,
equipment and facilities, and any other services or materials Avenel Alliance or
its personnel may reasonably request to perform the Services.

            1.3 Representatives. Each party shall designate a representative to
act as the primary contact person for the provision of Services (the
"Representatives"). To the extent practicable, all communications relating to
the provision of Services shall be directed through the Representatives. The
Company's initial Representative shall be Richard Wade and Avenel Alliance's
initial Representative shall be Steve Iaconis. The parties shall advise each
other in writing of any change of their respective Representative.

            2. Consideration.

            2.1 Monthly Service Fee.In consideration of Avenel Alliance's
performance of the Services (except the "Partner Marketing Services" as defined
on Schedule A attached hereto) the Company agrees to pay to Avenel Alliance
monthly fees (the "Monthly Service Fee") of Five Thousand Dollars ($5,000)
payable in advance on the first (1st) day of each month (or next business day
thereafter) commencing on September 1, 2000 and continuing throughout the Term.

            2.2 Partner Marketing Commission. In consideration of Avenel
Alliance's performance of the Partner Marketing Services, the Company agrees to
pay to Avenel Alliance a six percent (6%) commission, or such other amount as
may be mutually agreed to in writing by the parties hereto (the "Marketing
Commission") on all revenue, income, commission, fee, equity or other
consideration of any nature ("Revenue") received by the Company or its
successors, assigns, affiliates or related entities derived from, as a result
of, or in connection with any contract, agreement or understanding, whether oral
or otherwise, with any individual or entity to which Avenel Alliance represents
the Company or in connection with any other relationship established or created,
in whole or in part, by Avenel Alliance pursuant to this Agreement, provided
such representation shall at a minimum be an "Introduction". For purposes of
this Agreement, an Introduction is made by Avenel Alliance when the name of an
individual or entity is provided to or by the Company and Avenel Alliance takes
an additional act(s) resulting in a face-to-face, teleconference or telephonic
meeting, or other direct contact, between the Company and that

                                       12
<PAGE>

individual or entity (an "Introduction"). Avenel Alliance shall use reasonable
efforts to notice each Introduction in writing prior to or at the time of such
Introduction, but in any event, Introductions shall be claimed in writing by
Avenel Alliance no later than ten (10) days after the Introduction. If the
Company disputes the notice or claim of Introduction, it shall have three (3)
days after the later of the Introduction or receipt of such written notice or
claim of Introduction to object in writing.

The Marketing Commission shall be computed based on Revenues received exclusive
of normal and recurring bona fide trade discounts, reasonable fees and expenses
and any applicable sales or similar taxes. For example, if $100 in revenue is
generated from a sale, and the same sale has a direct product cost of $40, the
Marketing Commission would be paid only on the remaining $60. Marketing
Commissions owed Avenel Alliance hereunder shall be due and payable on or before
the fifteenth (15th) day of the month (or next business day thereafter)
following the month of receipt of Revenue by the Company, regardless of whether
payments to the Company are periodic, contingent or otherwise, and shall be
payable in such form as Avenel Alliance may, at its sole option and subject to
applicable laws, determine.

The Company hereby agrees to negotiate, if at all, with third parties in good
faith so as not to eliminate the Marketing Commission which would otherwise be
due Avenel Alliance; provided, however, the acceptance or rejection of any
business relationship shall be within the Company's sole and absolute
discretion. The Company shall provide to Avenel Alliance, immediately upon
request, copies of all contracts, agreements, term sheets, summaries of
understandings, correspondence, stock certificates, warrants, notes, wire
transfer confirmations, cancelled checks, financial statements or other
documentation satisfactory to Avenel Alliance, and Avenel Alliance shall have
the right, upon reasonable notice, to cause a reputable accounting firm or
independent certified accountant to audit the Company's books and records (and
the Company shall cooperate fully with Avenel Alliance's auditors), in order to
verify the Marketing Commission. The Company shall promptly pay to Avenel
Alliance any underpayment of Marketing Commissions paid to Avenel Alliance under
this Agreement. All reasonable expenses incurred in connection with any such
audit shall be paid by Avenel Alliance; provided, however, the Company shall pay
all expenses of any audit which reveals an underpayment of ten percent (10%) or
more by the Company. Avenel Alliance shall not perform audits any more
frequently than once every six (6) months; provided, however, if any such audit
reveals an error in excess of ten percent (10%), Avenel Alliance may thereafter
perform audits once every three (3) months. Information reviewed in connection
with any such audit and the results of any such audit shall be deemed
confidential and shall be governed by Section 5.5 hereof. Avenel Alliance's
performance of Partner Marketing Services hereunder shall in no event be deemed
to be a breach of Section 5.5 hereof or any confidentiality agreement or
covenant between the Company and Avenel Alliance, its parent company or any of
their affiliates, whether now or hereafter existing.

            In the event of termination of this Agreement by either party for
any or no reason, this Section 2.2 shall survive for a period of five (5) years
from the date of termination (the "Commission Period") and Avenel Alliance shall
be entitled, during the Commission Period, to Marketing Commissions on all
relationships established or created with third parties which are attributable,
in whole or in part, to activities or services performed prior to the effective
date of termination.

            2.3 Method of Payment; Late Payments. Monthly Service Fees and
Marketing Commissions are nonrefundable and will be made by the Company in such
form as Avenel Alliance may specify at the address set forth for Avenel Alliance
in Section 12 hereof or by wire transfer into Avenel Alliance's account pursuant
to wire transfer instructions provided by Avenel Alliance. Any portion of the
Monthly Service Fees or Marketing Commissions which have not been paid to Avenel
Alliance in accordance with the time frames set forth in Sections 2.1 and 2.2
above will bear interest at the maximum amount permitted by applicable law, with
interest accruing from the date each such amount first becomes payable.
Notwithstanding the foregoing, the charging of interest is not a consent to late
payment. Avenel Alliance may, at its option, cease providing the Services if any
portion of the Monthly Service Fees or Marketing Commissions have not been paid
in a timely manner. All costs

                                       13
<PAGE>

incurred by Avenel Alliance in collecting any amounts not paid when due,
including reasonable attorneys' fees, collection agency fees and court costs,
shall be paid by the Company.

            2.4 (i) Stock Grant. In consideration of the promises and covenants
contained in this Agreement and as further compensation for services rendered
hereunder, Avenel Alliance shall acquire all right, title and interest in and to
Five Hundred Thousand (500,000) restricted shares of the common stock of VCSY
(the "Shares") registered in its name. A certificate representing the Shares
shall be delivered to Avenel Alliance within ten (10) days of the date hereof.
The Shares shall have been duly authorized, validly issued, fully paid and
nonassessable, will be free and clear of all liens, and will not be subject to
any preemptive rights, rights of first refusal or redemption rights.

                  (ii) Warrants. In further consideration of Avenel Alliance's
performance of the Services, the Company shall issue to Avenel Alliance warrants
for the purchase of Seven Million (7,000,000) restricted shares of Common Stock
of the Company with the exercise price on one (1) share of Common Stock of the
Company under the warrants being Thirty-Five Cents ($.35) (which exercise price
and the number of shares for which the warrants are exercisable shall be subject
to anti-dilution adjustments and the other terms and conditions of the warrant).
The warrants shall vest according to the following schedule:

                  Vesting Date                                  Shares Vested
                  ------------                                  -------------

                  September 30, 2000                             583,333.33

                  October 31, 2000                               583,333.33

                  November 30, 2000                              583,333.33

                  December 31, 2000                              583,333.33

                  January 31, 2001                               583,333.33

                  February 28, 2001                              583,333.33

                  March 31, 2001                                 583,333.33

                  April 30, 2001                                 583,333.33

                  May 31, 2001                                   583,333.33

                  June 30, 2001                                  583,333.33

                  July 31, 2001                                  583,333.33

                  August 31, 2001                                583,333.33
                                                                 ----------

                                               Total Vested       7,000,000

                                       14
<PAGE>

provided, however, in the event this Agreement is terminated prior to the one
(1) year anniversary hereof (i) by Avenel Alliance for no reason or for a reason
not including a termination of this Agreement by Avenel Alliance pursuant to
Section 4(b) or 4(c) hereof, or (ii) by the Company pursuant to Section 4(b)
hereof, unvested warrants shall be cancelled as of the effective date of
termination. The vested warrants shall be exercisable, in whole or in part, at
any time and from time to time from the date of vesting through the close of
business on the date four (4) years from the dated of vesting.

Subject to termination under Section 4, below, on the first day of each Renewal
Term, the Company shall issue to Avenel Alliance warrants representing one
percent (1%) of the outstanding Common Stock of the Company) or such other
amount as the parties may agree to in writing; provided, however, the exercise
price on one (1) share of Common Stock of the Company under the warrants during
a Renewal Term shall be the average closing price of the Company's Common Stock
over the ten (10) trading days immediately preceding the first (1st) day of such
Renewal Term (which exercise price and the number of shares for which the
warrants are exercisable shall be subject to anti-dilution adjustments and the
other terms and conditions of the warrant).

            2.5 Reimbursement of Expenses. The Company shall reimburse Avenel
Alliance for all expenses, including travel, lodging, meals and other
extraordinary expenses, incurred by Avenel Alliance in connection with the
performance of the Services hereunder within fifteen (15) days of receipt of
expense reports from Avenel Alliance, supported by receipts or other reasonable
documentation; provided, however, that any expense in excess of One Thousand
Dollars ($1,000) shall be approved in advance in writing by the Company. If
Avenel Alliance incurs expenses during travel for the benefit of multiple
partner companies, such expenses will be pro-rated accordingly.

      3. Term. The term of this Agreement shall commence on the date hereof and
shall continue for a period of one (1) year (the "Initial Term"). At the end of
the Initial Term, this Agreement shall be automatically renewed for successive
one (1) year terms (each, a "Renewal Term") until otherwise terminated pursuant
to the terms and conditions hereof. The Initial Term and all Renewal Terms are
collectively, the "Term".

      4. Termination. This Agreement may be terminated at any time by the mutual
written consent of the parties hereto. Either party hereto shall have the right
to terminate this Agreement (a) on the first (1st) anniversary of the first day
of the Initial Term, or on any subsequent anniversary of the first day of a
Renewal Term, by giving at least ninety (90) days' prior written notice to the
other party, (b) upon sixty (60) days' prior written notice in the event that
the other party breaches any of such party's material representations,
warranties, covenants or agreements hereunder, unless such breaching party cures
any such breach within the applicable notice period or, with respect to a breach
which cannot be cured in sixty (60) days, commences cure of such breach and
thereafter proceeds with all diligence to cure same; provided, however, the
Company shall not be entitled to a cure period for monetary breaches of Section
2 hereof or (c) immediately upon providing written notice to the other party in
the event the other party files any bankruptcy or insolvency proceeding. In the
event Avenel Alliance provides notice of termination under Section 4(b) above,
Avenel Alliance shall have the right to suspend performance of the Services for
the notice period unless and until the Company fully remedies the breach prior
to the expiration of the notice period. Termination pursuant to this Section 4
shall not be the exclusive remedy for any breach by either party, but shall be
in addition to any other rights or remedies that the terminating party may have
against the other party. Notwithstanding termination of this Agreement by either
party for any or no reason, Section 2.2 hereof shall survive for the Commission
Period and the Company shall be bound by its covenants thereunder.

      5. Proprietary Information.

            5.1 The Company's Marks. The Company hereby grants to Avenel
Alliance a non-exclusive license to use the Company's tradenames, logos,
trademarks, service marks and other intellectual property rights (the "Company
Marks") solely in connection with the performance of Services hereunder. Avenel
Alliance agrees to use the Company Marks in accordance with such quality
standards as may be established by the Company and communicated in writing to
Avenel Alliance from time to time. Avenel Alliance understands and

                                       15
<PAGE>

agrees that Avenel Alliance's use of the Company Marks in connection with this
Agreement shall not create any right, title or interest of Avenel Alliance in or
to the Company Marks except as otherwise set forth herein and that the Company
Marks and are and shall remain the sole and exclusive property of the Company.

            5.2 Avenel Alliance's Trade Secrets. The Company acknowledges that
to perform the Services hereunder, it will be necessary for Avenel Alliance to
disclose to the Company certain data, information, processes, procedures or
improvements that are commercially valuable to Avenel Alliance and not generally
known in the industry ("Avenel Alliance Trade Secrets") that have been developed
by Avenel Alliance at great expense and effort. The Company agrees that it shall
not disclose, transfer, use, copy or allow access to any such Avenel Alliance
Trade Secrets to any employees, agents or third parties, except those on a need
to know basis to give effect to the Company's rights hereunder and who have
bound themselves to protect the confidentiality of such Avenel Alliance Trade
Secrets. Upon termination of this Agreement, the Company will promptly return to
Avenel Alliance all Avenel Alliance Trade Secrets in its possession or the
possession of any agents or affiliates, including copies thereof and notes
relating thereto.

            5.3 Intellectual Property Rights Created by Avenel Alliance. Avenel
Alliance shall retain all right, title and interest in and to all products and
intellectual property of any kind developed by Avenel Alliance or its employees,
consultants, agents or partners, including, but not limited to, products and
intellectual property developed during the Term hereof ("Avenel Alliance
Intellectual Property"), and nothing contained herein shall be deemed to grant
to the Company any ownership, security or other interest in any Avenel Alliance
Intellectual Property. The Company agrees, upon the request of Avenel Alliance,
to execute all assignments and other documents necessary to perfect Avenel
Alliance's rights in the Avenel Alliance Intellectual Property.

            5.4 Intellectual Property Jointly Developed. The Company shall
retain all right, title and interest in and to all intellectual property jointly
developed by Avenel Alliance and the Company in connection with the performance
of Services hereunder ("Company Intellectual Property"), and nothing contained
herein shall be deemed to grant to Avenel Alliance any ownership, security or
other interest in any Company Intellectual Property. Notwithstanding the
foregoing, any such jointly developed Company Intellectual Property shall be
available for use by Avenel Alliance in performing the Services hereunder.
Avenel Alliance agrees, upon the request of the Company, to execute all
assignments and other documents necessary to perfect the Company's rights in the
Company Intellectual Property.

            5.5 Confidentiality; Press Releases. The Company will make available
to Avenel Alliance certain information which is either nonpublic, confidential
or proprietary in nature concerning the Company. Avenel Alliance agrees to keep
all such information confidential and not to (i) disclose such information to
any third party (other than its affiliated entities and its and their directors,
officers, advisors, agents and employees) unless required by law or (ii)
knowingly use such confidential information in any way that is detrimental to
the Company. Avenel Alliance shall have no such obligation, however, with
respect to information which (a) was or becomes generally available to the
public, (b) was or becomes available to Avenel Alliance on a non-confidential
basis from a source other than the Company, or (c) was within Avenel Alliance's
possesion prior to being furnished to Avenel Alliance by the Company. Avenel
Alliance will inform its affiliates and its and their directors, officers,
agents and employees of the confidential nature of the information. Except as
otherwise provided in Section 5.7 hereof, the provisions of this Section 5.5
relating to confidentiality shall terminate two (2) years from the date hereof.
Avenel Alliance acknowledges that the Company is a fully-reporting public
company pursuant to the Securities Exchange Act of 1934 and that all information
granted to Avenel Alliance and its employees is subject to the restrictions of
the Act and other relevant securities laws. Each party agrees that it will not
issue any press release or other public disclosure with respect to the other
party's activities (A) without the prior approval of the other party, which
approval shall not be unreasonably withheld, or (B) except as required by law or
any listing agreement with a securities exchange.

                                       16
<PAGE>

            5.6 Injunctive Relief. The parties acknowledge and agree that any
remedy at law for any breach of the provisions of this Section 5 would be
inadequate, and that the aggrieved party shall be entitled to obtain, and the
other party shall not oppose, injunctive or other equitable relief for any such
breach in addition to all other remedies available at law or otherwise.

            5.7 Survival. The provisions of this Section 5 shall survive any
termination of this Agreement and, with respect to Avenel Alliance Trade Secrets
or the Company's trade secrets, the parties hereto shall be bound by the terms
of this Section 5 indefinitely until such items cease to be trade secrets.

      6. Representations, Warranties and Covenants of the Company.

            6.1 Organization. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the state of its
organization, has all requisite corporate power and authority to execute and
deliver this Agreement and holds all licenses, permits and other required
authorizations from governmental authorities necessary to conduct its business
as it is now being conducted.

            6.2 Authorization and Validity. The Company has full authority and
legal capacity to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. This Agreement, when executed, will constitute
the legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws and subject
to general principles of equity.

            6.3 Capitalization. Upon the date of the issuance of the stock and
warrants (pursuant to Section 2.4 hereof), the authorized capital stock of the
Company shall consist of 1,000,000,000 shares of Common Stock, par value $.00001
per share ("Common Stock"), 746,787,820 shares of which are issued and
outstanding; 600,000 shares of Series A 4% Convertible Preferred Stock, par
value $.001 per share ("Series A Preferred Stock"), 50,000 shares of which are
issued and outstanding; 375,000 shares of Series B 10% Convertible Preferred
Stock, par value $.001 per share ("Series B Preferred Stock"), 7,200 shares of
which are issued and outstanding; and 300,000 shares of Series D 15% Convertible
Preferred Stock, par value $.001 per share ("Series D Preferred Stock"), 25,000
shares of which are issued and outstanding (the Series A Preferred Stock, Series
B Preferred Stock and Series D Preferred Stock are, collectively, the "Preferred
Stock"). All the shares of Common Stock and Preferred Stock will have been duly
authorized, validly issued and will be fully paid, nonassessable and free of
preemptive rights.

            6.4 No Infringement. The Company owns the Company Marks, including
its patents and copyrights, and the Company Marks do not (i) infringe upon or
misappropriate in any manner any intellectual property rights of any third
parties, (ii) violate any laws or regulations, (iii) violate rights of any
person or entity, including, without limitation, rights of privacy or publicity,
or (iv) otherwise result in any consumer fraud or other harm to any third party.

            6.5 Compliance with Laws. The Company is operating and will continue
to operate its business in compliance with all applicable laws and regulations.

            6.6 Access to Information. The Company agrees to make available to
Avenel Alliance such documents and other information as may be necessary to
monitor the Company's performance and for Avenel Alliance to perform the
Services and its other obligations hereunder.

            6.7 Material Adverse Changes. The Company shall use its best efforts
to notify Avenel Alliance in writing of any material adverse change in its
business, financial condition or prospects during the Term hereof.

                                       17
<PAGE>

            6.8 No Misrepresentations or Omissions. The Company's
representations and warranties are true as of the date hereof and shall remain
true at all times during the Term and there are no omissions which make such
representations misleading in any manner.

      7. Representations and Warranties of Avenel Alliance.

            7.1 Organization. Avenel Alliance is a corporation duly organized,
validly existing and in good standing under the laws of the state of its
organization, has all requisite corporate power and authority to execute and
deliver this Agreement and holds all licenses, permits and other required
authorizations from governmental authorities necessary to conduct its business
as it is now being conducted.

            7.2 Authorization and Validity. Avenel Alliance has full authority
and legal capacity to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. This Agreement, when executed, will constitute
the legal, valid and binding obligation of Avenel Alliance, enforceable in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws and subject
to general principles of equity.

            7.3 No Misrepresentations or Omissions. Avenel Alliance's
representations and warranties are true as of the date hereof and shall remain
true at all times during the Term and there are no omissions which make such
representations misleading in any manner.

      8. Indemnification.

            8.1 Indemnification of Avenel Alliance.

            (a)   The Company shall indemnify and hold Avenel Alliance and its
                  parent, subsidiaries, affiliates and related entities and each
                  of their directors, members, officers, employees and agents,
                  harmless from and against all Indemnifiable Losses (as
                  hereinafter defined) which are actually and reasonably
                  incurred by Avenel Alliance in connection with, arising out of
                  or resulting from (i) any threatened, pending or completed
                  claim, action, suit or proceeding to which Avenel Alliance was
                  or is a party or is threatened to be made a party by reason of
                  Avenel Alliance's providing the Services to the Company
                  hereunder, (ii) the untruth, inaccuracy or breach of any
                  representation or warranty made by the Company in this
                  Agreement or (iii) the nonfulfillment or breach of any
                  covenant, agreement or obligation of the Company contained in
                  this Agreement. Provided, however, Avenel Alliance shall not
                  be indemnified for actions constituting bad faith, fraud,
                  gross negligence, willful breach of this Agreement or willful
                  or wanton misconduct with respect to the Company's business.
                  To the extent that Avenel Alliance has been successful on the
                  merits or otherwise in defense of any such claim, action, suit
                  or proceeding, Avenel Alliance shall be presumed not to have
                  engaged in any act of bad faith, fraud, gross negligence,
                  willful breach of this Agreement or willful or wanton
                  misconduct with respect to the Company's business.

            (b)   Expenses (including reasonable attorneys' and accountants'
                  fees) incurred by Avenel Alliance in defending any claim,
                  action, suit or proceeding pursuant to Section 8.1(a) (i)
                  above shall be paid by the Company in advance of the final
                  disposition of the matter upon receipt of an undertaking by or
                  on behalf of Avenel Alliance to repay such amount if Avenel
                  Alliance is ultimately determined not to be entitled to
                  indemnification by the Company.

            8.2 Indemnification of the Company. Avenel Alliance shall indemnify
and hold the Company, its directors, officers, employees and agents, harmless
from and against all Indemnifiable Losses which are actually and reasonably
incurred by the Company in connection with, arising out of or resulting from (i)
any act or services performed by Avenel Alliance on behalf of the Company beyond
the scope of authority conferred upon Avenel Alliance by this Agreement, (ii)
the untruth, inaccuracy or breach of any representation or warranty made by
Avenel Alliance in this Agreement, or (iii) willful or wanton misconduct, bad
faith, fraud, gross negligence or willful breach of this Agreement by or on the
part of Avenel Alliance.

            8.3 Notification. If any Indemnity (as hereinafter defined) receives
notice of the assertion or commencement of any claim against such Indemnitee
with respect to which an Indemnifying Party (as hereinafter defined) is

                                       18
<PAGE>

obligated to provide Indemnification under this Agreement, the Indemnitee will
give such Indemnifying Party reasonably prompt written notice thereof, but not
later than twenty (20) calendar days after receipt of such notice of such claim.
Such notice will describe the claim in reasonable detail, will include copies of
all material written evidence thereof and will indicate the estimated amount, if
reasonably practicable, of the Indemnifiable Loss that has been or may be
sustained by the Indemnitee. The Indemnifying Party will have the right to
participate in or, by giving written notice to the Indemnitee within ten (10)
calendar days, to assume the defense of any claim at such Indemnifying Party's
own expense and by such Indemnifying Party's own counsel (which counsel shall be
reasonably satisfactory to the Indemnitee), and the Indemnitee will cooperate in
good faith in such defense.

            8.4 Defense of Action. If, within ten (10) calendar days after
giving notice of a claim to an Indemnifying Party pursuant to Section 8.3 above,
an Indemnitee receives written notice from the Indemnifying Party that the
Indemnifying Party has elected to assume the defense of such claim as provided
in the last sentence of Section 8.3 above, the Indemnifying Party will not be
liable for any legal expenses subsequently incurred by the Indemnitee in
connection with the defense thereof; provided, however, that if (i) the
Indemnifying Party does not assume the defense of such claim (or fails to notify
the Indemnitee that the Indemnifying Party desires to assume such defense as
provided herein), (ii) the Indemnifying Party fails to take reasonable steps
necessary to defend diligently such claim within ten (10) calendar days after
receiving written notice from the Indemnitee that the Indemnitee believes the
Indemnifying Party has failed to take such steps, (iii) the Indemnitee is
advised by counsel that the Indemnifying Party has separate or inconsistent
defenses to a claim that create significant conflicts of interest or (iv) the
Indemnifying Party otherwise consents, the Indemnitee may assume its own
defense, and the Indemnifying Party will be liable for all reasonable costs or
expenses paid or incurred in connection therewith. Without the prior written
consent of the Indemnitee, the Indemnifying Party will not enter into any
settlement of any claim which could lead to liability or create any financial or
other obligation on the part of the Indemnitee for which the Indemnitee is not
entitled to indemnification hereunder and which does not contain an
unconditional release of the Indemnitee with respect to such claim.

            8.5 Notices. Notwithstanding any other provision of this Agreement,
failure to give timely notice or to include any specified information in any
notice as provided in Sections 8.3 or 8.4 above will not affect the rights or
obligations of any party hereunder, except and only to the extent that, as a
result of such failure, any party which was entitled to receive such notice was
materially prejudiced as a result of such failure.

            8.6 Definitions. As used in this Section 8, the term

                  (i)   "Indemnitee" means any person entitled to
                        indemnification pursuant to this Section 8;

                  (ii)  "Indemnifying Party" means any person required to
                        provide indemnification pursuant to this Section 8; and

                  (iii) "Indemnifiable Losses" means any and all damages,
                        losses, liabilities, obligations, costs and expenses
                        related to or resulting from any claim, demand, action
                        or suit (by any person) for which indemnification is
                        required by this Section 8, including, without
                        limitation, the reasonable costs and expenses of any and
                        all actions, suits, proceedings, demands, assessments,
                        judgments, settlements and compromises relating thereto
                        and including reasonable attorneys' fees and expert
                        consultant fees and expenses incurred in connection
                        therewith.

            8.7 Disclaimer. AVENEL ALLIANCE DISCLAIMS ALL WARRANTIES EXPRESS OR
IMPLIED WITH RESPECT TO THE SERVICES RENDERED BY ITS PERSONNEL OR THE RESULTS
OBTAINED FROM THEIR WORK, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OF FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL AVENEL
ALLIANCE BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL

                                       19
<PAGE>

DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS OR REVENUES OF THE COMPANY
OR ITS SUCCESSORS, ASSIGNS, AFFILIATES OR RELATED ENTITIES.

      9. Nonsolicitation. Each party acknowledges that the other provides a
valuable service by identifying and assigning personnel to perform hereunder and
by permitting the other to work with its personnel on various projects. Each
party further acknowledges that the other would be deprived of the benefits of
its work force if the other party hires any of its personnel. Accordingly,
without the prior written consent of the other party, each party, on behalf of
itself, its affiliates, related entities, successors and assigns agrees not to,
and shall cause of each such entity's shareholders, directors, members,
officers, employees and agents, not to, directly or indirectly, recruit, hire,
or solicit for employment any of the other party's personnel, or attempt to do
any of the foregoing, during the Term hereof and for one (1) year after the
termination of this Agreement. This covenant shall survive the termination of
this Agreement.

      10. Governing Law; Arbitration. This Agreement shall be construed in
accordance with, and shall be governed by, the laws of the State of Florida
(without regard to the choice of law provisions thereof). Any controversy or
claim arising out of or relating to this Agreement, or breach thereof, shall be
settled by arbitration in accordance with the Arbitration Rules of the American
Arbitration Association. The Arbitration Tribunal shall consist of three (3)
arbitrators, of whom one shall be nominated by Avenel Alliance, one by the
Company, and the third, who shall serve as Chairman, shall be chosen by the two
party-nominated arbitrators or, in the event that party-nominated arbitrators
are unable to designate the third arbitrator, by the American Arbitration
Association. The award of the arbitrator shall be final and binding. Judgment
upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. The parties waive any right to appeal the arbitral award,
to the extent a right to appeal may be lawfully waived. Each party retains the
right to seek judicial assistance (i) to compel arbitration, (ii) to obtain
interim measures of protection pending arbitration or (iii) to enforce any
decision of the arbitrators, including the final arbitral award. The prevailing
party in the arbitration shall be entitled to receive reimbursement of its
reasonable expenses incurred in connection therewith.

      11. Entire Agreement; Amendment; Waiver. This Agreement, the Schedules
attached hereto and the warrant and other agreements contemplated hereby,
contain the entire understanding and agreement between the parties relating to
the subject matter hereof, except as otherwise referred to herein. Neither this
Agreement nor any provisions hereof may be waived, modified, amended, changed,
discharged or terminated, except by an agreement in writing signed by the party
against whom enforcement of any waiver, modification, change, amendment,
discharge or termination is sought. No waiver of any provision of this Agreement
shall be deemed, or shall constitute, a waiver of any other provision, whether
or not similar, nor shall any waiver constitute a continuing waiver.

      12. Notices. Every notice or other communication required or permitted to
be given by this Agreement shall be in writing and shall be deemed received when
delivered to the other party personally or by confirmed facsimile or if mailed,
three (3) business days after it is deposited in the United States mail,
certified or registered, return receipt requested, postage prepaid, addressed as
follows, or to such other address that such party may have specified by notice
given to the other parties in accordance with this Section 12:

         If to the Company to:              Vertical Computer Systems, Inc.
                                            6336 Wilshire Boulevard
                                            Los Angeles, CA 90048
                                            Facsimile: (323) 655-1920
                                            Attn: Richard Wade, President

         If to Avenel Alliance to:          Avenel Alliance, Inc.
                                            5935 Carnegie Boulevard, Suite 101
                                            Charlotte, NC 28209

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                                            Facsimile: (704) 553-7136
                                            Attn: Melinda Morris Zanoni, Esq.

      13. Binding Effect; Assignment. The provisions of this Agreement shall
inure to the benefit of and be binding upon the parties and their respective
successors and permitted assigns. This Agreement may not be assigned by either
party without the prior written consent of the other party hereto; provided,
however, Avenel Alliance may assign this Agreement to its parent, subsidiaries,
affiliates and related entities without the consent of the Company.

      14. Severability. If any provision or part of any provision of this
Agreement shall be invalid or unenforceable in any respect, such provision or
part of any provision shall be ineffective to the extent of such invalidity or
unenforceability only, without in any way affecting the remaining parts of such
provision or the remaining provisions of this Agreement.

      15. No Third-Party Beneficiaries. This Agreement is not intended to, and
shall not be construed to, create any right enforceable by any person not a
party hereto, including any creditor of the Company or of Avenel Alliance.

      16. Independent Contractor; No Agency. Each party hereto is engaged in an
independent business and will perform its obligations under this Agreement as an
independent contractor and not as an agent or representative of the other party.
Neither party will have any right or authority to create any obligation or make
any representation or warranty in the name of or on behalf of the other party.

      17. Force Majeure. Avenel Alliance shall have no liability for any failure
or delay resulting from any act of God, war, governmental action, legal
prohibition, fire, power failure, labor or materials shortage, carrier
interruption of any kind or other condition beyond the reasonable control of
Avenel Alliance affecting its ability to perform the Services hereunder.

      18. Further Assurances. Each party agrees to execute such additional
instruments and take such actions as may be reasonably requested by the other
party to carry out the intent and purposes of this Agreement.

      19. Construction. Unless the context otherwise requires, whenever used in
this Agreement, the singular shall include the plural and the plural shall
include the singular.

      20. Counterparts/Facsimile Signatures. This Agreement may be executed in
counterparts (whether by facsimile or otherwise), each of which shall be deemed
an original, and all of which shall together constitute one and the same
agreement.

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

                                           THE COMPANY:

                                           VERTICAL COMPUTER SYSTEMS, INC.

                                           By: _________________________
                                               Richard Wade
                                               Its: President

ATTEST:

By: ________________________
    Its: Secretary

                                           AVENEL ALLIANCE:

                                           AVENEL ALLIANCE, INC.

                                           By: _________________________
                                               Christopher Anderson
                                               Its: Senior Vice President

ATTEST:

By: ________________________
    Its: Secretary

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                                   SCHEDULE A

                                    SERVICES

The following outlines the currently identified services to be provided to the
Company by Avenel Alliance relating solely to the operation of the Company's
portal sites, globalfare.com, and CCP Software (the "Products"):

PARTNER MARKETING SERVICES

Avenel Alliance shall use commercially reasonable efforts to market, promote,
introduce, represent or refer the Company to other entities identified by Avenel
Alliance in the industry in order to find potentially beneficial partners and
establish relationships for the Company ("Partner Marketing Services"). THE
COMPANY UNDERSTANDS THAT AVENEL ALLIANCE MAY ALSO HAVE AGREEMENTS OR
UNDERSTANDINGS WITH THE PARTNER COMPANIES OR OTHER THIRD PARTIES TO WHOM AVENEL
ALLIANCE REPRESENTS THE COMPANY AND BY EXECUTION OF THIS AGREEMENT EXPRESSLY
CONSENTS TO AVENEL ALLIANCE'S ACTING AS AN AGENT FOR AND REPRESENTING EACH SUCH
PARTY.

BUSINESS DEVELOPMENT SERVICES*

Avenel Alliance shall use commercially reasonable efforts to serve as a business
development resource for the Company to create opportunities for the expansion
of the Products:

      o     Identify opportunities with e-commerce companies, technology
            providers and other marketing vehicles for co-branded or private
            label sites where appropriate

      o     Assist in the development of material for the purpose of presenting
            the Products to prospective users |X| Represent the Company at
            various trade shows, conventions and industry functions for the
            purpose of fostering revenue-based relationships for the Products or
            the Company as directed

      o     Identify and foster relationships with targeted organizations for
            the purpose of instituting a revenue-based relationship for the
            Products
                  o     Target suitable prospects and work in conjunction with
                        the Company's staff to present the Products
                  o     Establish a mutual benefit and profitability model for
                        organizations with an interest in the Products and
                        propose the terms of a joint venture relationship, as
                        well as aid in structuring such relationship
                  o     Provide oversight on deployment and integration

      o     Assist in the development and execution of a Company affiliate
            program

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SALES AND MARKETING SERVICES*

Avenel Alliance shall use commercially reasonable efforts to provide the
following sales and marketing services:

      o     Review and make recommendations on existing or proposed marketing
            initiatives of the Company related to Products that include:
                  o     Consumer-direct marketing plans
                  o     Business to business marketing plans
                  o     Marketing plans for the purpose of licensing sales
                  o     Media strategies and spending

      o     Tailor client marketing initiatives through strategic planning and
            predictive research

      o     Public Relations' plans and execution strategies of the Company
            related to the Products:
                  o     Design and utilization of media lists
                  o     Messaging points strategies
                  o     Provide direction and introductions to position Company
                        staff as industry experts through public speaking
                        engagements and visible positions within the industry

      o     Recommendations on the structure of permission-based online direct
            marketing programs for the Company related to the Products:
                  o     Creative element input
                  o     Establish e-mail campaign elements and goals
                  o     Creation of Customer Relationship Management (CRM)
                  o     Develop membership loyalty and retention initiatives
                  o     Provide strategies for cross-selling and up-selling
                        customer database
                  o     Develop highly segmented target audience profiles and
                        other advice and counsel with respect to audience
                        selection o Provide ROI tracking methods and designs o
                        Make recommendations on updated messaging (creative and
                        placement) based on quantifiable results

                                       24
<PAGE>

MERGER AND ACQUISITION SERVICES*

Avenel Alliance shall use commercially reasonable efforts to provide the
following acquisition services as directed by the Company:

      o     Identify areas where an acquisition may add value to the Company

      o     Identify and recommend strategic acquisition candidates

      o     Aid in the structuring of acquisitions, mergers or joint ventures

      o     Aid in post-acquisition integration

CLIENT MANAGEMENT AND ACCOUNT SERVICES*

Avenel Alliance shall use commercially reasonable efforts to provide the
following account management and marketing services:

      o     Review and make recommendations on existing or proposed account
            management programs

                  o     Provide structures and requirements
                  o     Identify staffing requirements
                  o     Create job descriptions
                  o     Propose and assist in selection of candidates

WEB SITE ANALYSIS*

Avenel Alliance shall use commercially reasonable efforts to perform an analysis
of current or proposed consumer or business targeted web sites and accompanying
forms, surveys, transaction capabilities, databases, graphic user interface
(GUI) and fulfillment in order to make recommendations on:

      o     Improved customer retention

      o     E-commerce functionality and strategies

      o     Overall design and aesthetics

      o     Improving conversion ratios and pull-through rates

      o     Implementation of point-of-sale opportunities

* ANY SERVICES WITHIN THESE CATEGORIES THAT RESULT IN AVENEL ALLIANCE
INTRODUCING OR REPRESENTING THE COMPANY TO OTHER ENTITIES IN THE INDUSTRY OR
FINDING POTENTIAL PARTNERS OR ESTABLISHING RELATIONSHIPS FOR THE COMPANY SHALL
ALSO BE DEEMED TO BE "PARTNER MARKETING SERVICES" AND SHALL BE SUBJECT TO THE
PROVISIONS OF THIS AGREEMENT THAT GOVERN PARTNER MARKETING SERVICES.

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