Document:

Exhibit
      10.1

     

    SETTLEMENT
      AND ESCROW RELEASE AGREEMENT

     

    THIS
      SETTLEMENT AND ESCROW RELEASE AGREEMENT (this “Agreement”)
      is
      dated as of November 7, 2006 by and among vFinance Investments Holdings, Inc.,
      a
      Florida corporation (“Buyer”),
      vFinance, Inc., a Delaware corporation (“Parent”),
      Global Partners Securities, Inc. a New York corporation (“Global”),
      Level2.com, Inc., a Florida corporation (“Level2”)
      and
      Edwards Angell Palmer & Dodge LLP (formerly Edwards & Angell LLP), a
      Massachusetts limited liability partnership, as escrow agent (the “Escrow
      Agent”).
      Buyer, Parent, Global, Level2 and Escrow Agent are hereinafter, the
“Parties”.

    

    RECITALS

    

    A.
       Each
      of
      the parties to this Agreement entered into a Stock Escrow Agreement as of
      November 2, 2004 (the “Escrow
      Agreement”)
      in
      connection with a Stock Purchase Agreement and an Asset Purchase Agreement
      entered into on the same date (the “Purchase
      Agreements”).

    

    B. Under
      the
      terms of the Escrow Agreement, Edwards Angell Palmer & Dodge LLP acted as
      escrow agent and held a total of 8,324,690 shares of common stock, par value
      $.01 per share (the “Common
      Stock”),
      of
      vFinance, Inc. (the “Parent
      Shares”)
      and
      warrants to purchase 3,299,728 shares of Common Stock of Parent (the
“Parent
      Warrants”).
      

    

    C.
       A
      stock
      certificate representing one-half of the Parent Shares was issued in the name
      of
      Global Partners Securities, Inc. and another stock certificate representing
      one-half of the Parent Shares was issued in the name of Level2.com,
      Inc.

    

    D.
       A
      warrant
      granting Global one-half of the Parent Warrants was executed and deposited
      into
      escrow at the time of the Escrow Agreement and another warrant granting Level2
      one-half of the Parent Warrants was executed and deposited into escrow at the
      time of the Escrow Agreement.

    

    E.
       After
      the
      Parent Shares and Parent Warrants were deposited in escrow, a dispute arose
      among the Parties over the amount of Parent Shares and Parent Warrants that
      were
      deposited in escrow and the value of such items.

    

    F. The
      Parties desire to resolve certain disputes over the amount of Parent Shares
      and
      Parent Warrants deposited into escrow and the value of the same, and for this
      reason, have entered into this Agreement, which sets forth the terms and
      conditions upon which the Parent Shares and Parent Warrants as well as all
      other
      items held by the Escrow Agent shall be released from escrow.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    AGREEMENT

    

    In
      consideration of the respective agreements and covenants contained in this
      Agreement, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties, intending to be
      legally bound, agree as follows:

    

    1.
       Recitals.
      The
      foregoing recitals are true and correct and are hereby incorporated into this
      Agreement. 

    

    2. Calculation
      of Parent Shares and Issuance of New Stock Certificates.
      The
      Parties have determined that the amount of Parent Shares originally deposited
      into escrow exceeded the amount of shares of Common Stock of Parent that should
      have been deposited into escrow by an amount of 1,748,185 shares of Parent.
      Accordingly, the Parties hereto hereby acknowledge and agree that the number
      of
      shares of Common Stock of Parent that should have been deposited into escrow
      equals 6,576,505 shares, with 3,288,253 shares allocated to Global and 3,288,252
      shares allocated to Level2. The Parties hereto hereby authorize and direct
      the
      Escrow Agent to release the original stock certificates representing the Parent
      Shares to Parent and further direct the appropriate officer or other designated
      person of Parent to immediately cancel such stock certificates and issue new
      certificates to Global and Level2 in the amounts described above. Upon such
      issuance, the original stock certificates representing the Parent Shares shall
      have no value and shall be deemed cancelled in full and Parent shall immediately
      (i) deliver a stock certificate to Global in the amount of 3,288,253 shares
      of
      Common Stock of Parent and (ii) deliver a stock certificate to Level2 in the
      amount of 3,288,252 shares of Common Stock of Parent. 

    

    3. Calculation
      of Parent Warrants and Issuance of New Warrants.
      The
      Parties have determined that the amount of shares of Common Stock indicated
      on
      the Parent Warrants originally deposited into escrow exceeded the amount of
      shares that should have been indicated on the Parent Warrants by an amount
      of
      692,942 shares. Accordingly, the Parties hereto hereby acknowledge and agree
      that the total number of shares of Common Stock of Parent that should have
      been
      purchasable upon exercise of the Parent Warrants equals 2,606,785 shares, giving
      Global a warrant to purchase 1,303,393 shares of Common Stock of Parent and
      giving Level2 a warrant to purchase 1,303,392 shares of Common Stock of Parent.
      The Parties hereto hereby authorize and direct the Escrow Agent to release
      the
      original Parent Warrants to Parent and further direct the appropriate officer
      or
      other designated person to immediately cancel such warrants and execute and
      issue new warrants to Global and Level2 in the amounts described above. Upon
      such issuance, the warrants representing the Parent Warrants shall have no
      value
      and shall be deemed cancelled in full and Parent shall immediately (i) deliver
      a
      fully executed warrant granting Global a right to purchase 1,303,393 shares
      of
      Common Stock of Parent and (ii) deliver a fully executed warrant granting Level2
      a right to purchase 1,303,392 shares of Common Stock of Parent.

    

    4.
       Release
      of ESI Stock.
      Upon
      execution of this Agreement, the Parties hereto authorize and direct the Escrow
      Agent to release the issued and outstanding capital stock of Equity Stations,
      Inc. to Parent or Buyer, if it has not already done so. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.
       Release
      of Escrow Agent.
      The
      Parties each acknowledge and represent that the terms and conditions necessary
      to release all of the items held in escrow by the Escrow Agent have been fully
      satisfied and hereby remise, release, acquit, satisfy, and forever discharge
      the
      Escrow Agent, of and from all manner of action and actions, cause and causes
      of
      action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills,
      specialties, covenants, contracts, controversies, agreements, promises,
      variances, trespasses, damages, judgments, executions, claims and demands
      whatsoever, in law or in equity, which any party hereto ever had, now has,
      or
      which any personal representative, successor, heir or assign of said first
      party, hereafter can, shall or may have, against the Escrow Agent, for, upon
      or
      by reason of any matter, cause or thing related to or in connection with the
      Escrow Agreement, the Parent Shares, the Parent Warrants or any other matters
      in
      any way related to the Purchase Agreements.

    

    6.  Release
      regarding the Items in Escrow.
      Global
      and Level2 each acknowledge and represent that the terms and conditions
      necessary to release all of the items held in escrow by the Escrow Agent have
      been fully satisfied and, upon receipt of the new stock certificates and new
      warrants from Parent, remise, release, acquit, satisfy, and forever discharge
      Parent and Buyer, of and from all manner of action and actions, cause and causes
      of action, suits, debts, dues, sums of money, accounts, reckonings, bonds,
      bills, specialties, covenants, contracts, controversies, agreements, promises,
      variances, trespasses, damages, judgments, executions, claims and demands
      whatsoever, in law or in equity, which any party hereto ever had, now has,
      or
      which any personal representative, successor, heir or assign of said first
      party, hereafter can, shall or may have, against Parent and Buyer, for, upon
      or
      by reason of any matter, cause or thing related to or in connection with the
      Parent Shares, the Parent Warrants or any other matters in any way related
      to
      the Purchase Agreements.

    

    7. Representations
      and Warranties of the Parties.
      Each of
      the Parties hereby represents and warrants to the other Parties as
      follows:

    

    (a) It
      has
      the requisite corporate power and authority to enter into and to consummate
      the
      transactions contemplated by this Agreement and otherwise to carry out its
      obligations hereunder. The execution and delivery of this Agreement and the
      consummation by it of the transactions contemplated hereby have been duly
      authorized by all necessary action and no further action is required by such
      party, its board of directors or its stockholders in connection herewith. This
      Agreement has been duly executed and, when delivered in accordance with the
      terms hereof will constitute the valid and binding obligation enforceable
      against it in accordance with its terms.

    

    (b) It
      is
      duly organized and validly existing under the laws of the jurisdiction of its
      incorporation, has the requisite corporate power and authority to execute,
      deliver and to consummate the transactions contemplated hereby, and has taken
      all necessary corporate action to authorize the execution, delivery and
      performance of this Agreement;

    

    (c) Neither
      the execution and delivery of this Agreement nor the performance of its
      obligations hereunder will violate any provision of law applicable to it or
      require any consent or approval of, or filing with or notice to any public
      body
      or authority under any provision of law applicable to it other than notices
      or
      filings pursuant to the federal securities laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    8. Expenses.
      All
      fees and expenses incurred by any of the parties hereto shall be borne by the
      party incurring such fees and expenses and all sales, transfer or other similar
      taxes payable in connection with this Agreement will be borne by the party
      incurring such taxes.

    

    9.
       Cooperation.
      The
      Parties hereto intend that this Agreement be a legally enforceable document,
      and
      agree to work together and cooperate in completing the transactions contemplated
      hereby. The Parties further agree that each shall, at each other's or the
      transfer agent’s request, execute and deliver all such further assignments,
      endorsements and other documents as may be reasonably requested in order to
      effectuate and comply with the terms of this Agreement.

    

    10.
       Notices.
      All
      notices, requests, claims, demands and other communications hereunder shall
      be
      in writing and shall be deemed given when delivered personally (including
      delivery by recognized courier service, such as Federal Express), delivered
      by
      facsimile transmission or on the fifth (5th)
      succeeding business day after being mailed postage prepaid, by registered or
      certified mail to the respective parties at the following addresses (or at
      such
      other address for a party as shall be specified in a notice given in accordance
      with this Section 10):

    

    If
      to
      Parent to:         vFinance,
      Inc. 

    3010
      North Military Trail

    Boca
      Raton, FL 33431

    Attention:
      Chief Executive Officer

    Facsimile
      No.: (561) 981-1089

     

    If
      to the
      Buyer
      to:             
 vFinance
      Investments Holdings, Inc.

    3010
      North Military Trail

    Boca
      Raton, FL 33431

    Attention:
      President

    Facsimile
      No.: (561) 981-1089

    

    If
      to
      Global to:          Global
      Partners Securities, Inc.

    c/o
      Keith
      Wasserstrom

    1909
      Tyler Street - PH

    Hollywood,
      FL 33020

    Attention:
      President

    Facsimile
      No.: (954) 241-6846

     

    If
      to
      Level2
      to:                   
 Level2.com,
      Inc.

    c/o
      Wasserstrom Giulianti, P.A.

    1909
      Tyler Street

    Wachovia
      Center-Penthouse

    Hollywood,
      FL 33020

    Attn:
      Keith Wasserstrom

    Facsimile
      No.: (954) 241-6846

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    If
      to
      Escrow Agent to:        Edwards Angell Palmer
& Dodge, LLP

    350
      East
      Las Olas Blvd.

    Suite
      1150

    Fort
      Lauderdale, FL 33301-4215

    Attention:
      Leslie J. Croland, P.A.

    Telephone: (954)
      727-2600

    Facsimile
      No.: (954)
      727-2601

    

    11. Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Florida without regard to its conflict of law principles. The
      parties hereto hereby irrevocably submit to the jurisdiction of any federal
      or
      state court sitting in Broward County, Florida in any action or proceeding
      arising out of or relating to this Agreement and irrevocably waive the defense
      of an inconvenient forum to the maintenance of any such action or
      proceeding.

    

    12. Amendments.
      This
      Agreement may not be amended or modified except by an instrument in writing
      signed by, or on behalf of, the Parties hereto.

    

    13.  Waiver.
      Any
      Party to this Agreement may (a) extend the time for the performance of any
      obligations or other acts of any other party hereto or (b) waive compliance
      with
      any agreements or conditions contained herein. Any such extension or waiver
      shall be valid only if set forth in an instrument in writing signed by the
      party
      to be bound thereby. Any waiver of any term or condition shall not be construed
      as a waiver of any subsequent breach or a subsequent waiver of the same term
      or
      condition, or as a waiver of any other term or condition, of this Agreement.
      The
      failure of any party to assert any of its rights hereunder shall not constitute
      a waiver of any of such rights.

    

    14. Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any rule of law or public policy, all other terms and
      provisions of this Agreement shall nevertheless remain in full force and effect
      so long as the economic and legal substance of the transactions contemplated
      by
      this Agreement is not affected in any manner materially adverse to any party.
      Upon such determination that any term or other provision is invalid, illegal
      or
      incapable of being enforced, the parties hereto shall negotiate in good faith
      to
      modify this Agreement so as to effect the original intent of the Parties as
      closely as possible in a mutually acceptable manner in order that the
      transactions contemplated hereby are consummated as originally contemplated
      to
      the greatest extent possible.

    

    15. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement of the Parties hereto with respect
      to
      the subject matter hereof and supersedes all prior agreements and undertakings,
      both written and oral, among the parties hereto with respect to the subject
      matter hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    16. No
      Third Party Beneficiaries.
      This
      Agreement shall be binding upon and inure solely to the benefit of the Parties
      hereto and their permitted assigns, and nothing herein, express or implied,
      is
      intended to or shall confer upon any other Person any legal or equitable right,
      benefit or remedy of any nature whatsoever under or by reason of this
      Agreement.

    

    17. Headings.
      The
      descriptive headings contained in this Agreement are for convenience of
      reference only and shall not affect in any way the meaning or interpretation
      of
      this Agreement.

    

    18. Survival.
      All
      representations, warranties and covenants shall survive the date
      hereof.

    

    19. Successors.
      This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective directors, officers, heirs, legal representatives,
      attorneys, successors and assigns. 

     

    20. Counterparts.
      This
      Agreement may be executed in one or more counterparts, and by different Parties
      hereto in separate counterparts, each of which when executed shall be deemed
      to
      be an original but all of which when taken together shall constitute one and
      the
      same agreement and facsimile signatures shall have the same effect as original
      signatures.

     

    [Signature
      blocks appear on the following page]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the Parties hereto has duly executed, or has caused
      this Agreement to be duly executed by its duly authorized representative, as
      of
      the date first written above.

     

    
      	 	 	 
	 	VFINANCE
              INVESTMENTS HOLDINGS, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Leonard
              J. Soklow
	 	
              

              Name:
                Leonard J. Soklow

              Title:
                Authorized Representative

            

    
      	 	 	 
	 	
              VFINANCE,
                INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Leonard
              J. Sokolow
	 	
              

              Name:
                Leonard J. Sokolow

              Title:
                Authorized Representative

            
	 	
            

    

    
      	 	 	 
	 	
              GLOBAL
                PARTNERS SECURITIES, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Marcos
              Konig
	 	
              

              Name:
                Marcos Konig

              Title:
                President

            
	 	
            

      	 	 	 
	 	LEVEL2.COM, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Marcos
              Konig
	 	
              

              Name:
                Marcos Konig

              Title:
                President

            
	 	
            

      	 	 	 
	 	EDWARDS ANGELL PALMER & DODGE,
              LLP
	 
 	 
 	 
 
	
            	By:  	/s/ Leslie
              J.
              Croland
	 	
              

              Name:
                Leslie J. Croland

              Title:
                PartnerExhibit
      10.2

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF ABSENT
      REGISTRATION OF SUCH SECURITIES UNDER SAID ACT AND SAID LAWS UNLESS THE COMPANY
      RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED.

     

    Void
      after 5:00 p.m. New York Time on the Expiration Date

    

    WARRANT

    TO
      PURCHASE COMMON STOCK OF

    VFINANCE,
      INC.

    

    1,303,393
      Shares

    

    Date
      of
      Issuance: November 7, 2006

    

    THIS
      CERTIFIES that Global Partners Securities, Inc. (herein called “Holder”), or
      registered assigns, is entitled to purchase from vFINANCE, INC., a corporation
      organized and existing under the laws of Delaware (herein called the “Company”),
      at any time after the date hereof and until 5:00 p.m. (Eastern Time) on the
      Expiration Date (as defined below) One Million Three Hundred Three Thousand
      Three Hundred Ninety Three (1,303,393) fully paid and non-assessable shares
      of
      Common Stock of the Company, (defined below) at a purchase price per share
      of
      $0.11 (the “Exercise Price”). This Warrant is issued in replacement of the
      warrant dated November 2, 2004 to purchase 1,649,864 shares of Common Stock
      of
      the Company issued to the Holder, which warrant has been canceled pursuant
      to
      the terms of that certain Settlement and Escrow Release Agreement dated November
      7, 2006 by and among the Company, vFinance Investments, Inc., the
      Holder, Level2.com, Inc. and Edwards Angell Palmer & Dodge LLP.

    

    The
      number of shares of Common Stock to be received upon the exercise of this
      Warrant and the price to be paid for a share of Common Stock are subject to
      limitation and adjustment from time to time as hereinafter set
      forth.

    

    Definitions

    

    “Capital
      Stock”
means
      the Company’s Common Stock, and any other stock of any class, whether now or
      hereafter authorized, which has the right to participate in the distribution
      of
      earnings and assets of the Company without limit as to amount or
      percentage.

    

    “Common
      Stock”
means
      the Company’s Common Stock, par value $0.01 per share.

    

    “Expiration
      Date”
means
      November 2, 2009.

    

    “Warrant
      Shares”
means
      the shares of Common Stock deliverable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      1. Exercise
      of Warrant.
      This
      Warrant may be exercised in whole or in part on any business day (the “Exercise
      Date”) on or before the Expiration Date by presentation and surrender hereof to
      the Company at its principal office at the following address: 3010 North
      Military Trail, Boca Raton, Florida 33431, or at the office of its stock
      transfer or warrant agent, if any, (or at such other address as the Company
      may
      hereafter notify the Holder in writing) with the Purchase Form annexed hereto
      duly executed and accompanied by proper payment of the Exercise Price in full
      in
      lawful money of the United States of America in the form of a check, subject
      to
      collection, for the number of Warrant Shares specified in the Purchase Form.
      If
      this Warrant should be exercised in part only, the Company shall, upon surrender
      of this Warrant, execute and deliver a new Warrant evidencing the rights of
      the
      Holder thereof to purchase the balance of the Warrant Shares purchasable
      hereunder. Upon receipt by the Company of this Warrant and such Purchase Form,
      together with proper payment of the Exercise Price, at such office, the Holder
      shall be deemed to be the holder of record of the number of Warrant Shares
      being
      purchased, notwithstanding that the stock transfer books of the Company shall
      then be closed or that the certificates representing such Warrant Shares shall
      not then be actually delivered to the Holder. The Company shall pay any and
      all
      documentary stamp or similar issue or transfer taxes payable in respect of
      the
      issue or delivery of the Warrant Shares.

    

    Section
      2. Reservation
      of Shares.
      The
      Company shall reserve at all times for issuance and delivery upon exercise
      or
      conversion of this Warrant all Warrant Shares from time to time issuable upon
      exercise of this Warrant. All such shares shall be duly authorized and, when
      issued upon the exercise of this Warrant in accordance with the terms hereof,
      including payment of the applicable Exercise Price in full, shall be validly
      issued, fully paid and nonassessable, free and clear of all liens, security
      interests, charges and other encumbrances or restrictions (“Liens”) on sale
      (other than (i) restrictions pursuant to applicable federal and state securities
      laws, and (ii) any Liens created by any action or inaction of the Holder of
      the
      Warrant Shares). 

    

    Section
      3. Fractional
      Interest.
      The
      Company will not issue a fractional share of Common Stock or scrip upon any
      exercise of this Warrant. Instead, the Company will deliver its check for the
      current Market Value (as defined below) of the fractional share. The current
      Market Value of a fraction of a share of Common Stock is determined as follows:
      multiply the current Market Value of a full share of Common Stock by the
      fraction of a share and round the result to the nearest cent.

    

    The
      Market Value of a share of Common Stock shall be determined as
      follows:

    

    (i)         
       If
      the
      Common Stock is listed on a national securities exchange or admitted to unlisted
      trading privileges on such exchange or is an over-the-counter equity security
      whose bid and ask prices are reported, the current market value shall be the
      last reported sale price of the Common Stock on the last business day prior
      to
      the date of exercise or conversion of this Warrant or if no such sale is made
      on
      such day, the average closing bid and asked prices for such day; or

    

    (ii)         
       If
      the
      Common Stock is not so listed or admitted to unlisted trading privileges, the
      current market value shall be the mean of the last reported bid and asked prices
      reported by the National Quotation Bureau, Inc., on the last business day prior
      to the date of exercise or conversion; or

    

    (iii)        
       If
      the
      Common Stock is not so listed or admitted to unlisted trading privileges and
      bid
      and asked prices are not so reported, the current market value per share shall
      be an amount determined in such reasonable manner as may be prescribed in good
      faith by the Board of Directors of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      4. Exchange,
      Transfer, Assignment or Loss of Warrant.

    

    (a) The
      Holder of this Warrant shall be entitled, at its option, without expense and
      without obtaining the consent of the Company, to assign its interest in this
      Warrant, or any of the Warrant Shares, in whole or in part, upon presentation
      and surrender hereof to the Company or its stock transfer agent, if any;
provided,
      however,
      that
      the transferee, prior to any such transfer, agrees in writing, in form and
      substance satisfactory to the Company, to be bound by the terms of this Warrant
      and provides the Company with an opinion of counsel in such form reasonably
      acceptable to the Company, that such transfer would not be in violation of
      the
      Act or any applicable state securities or blue sky laws. 

    

    (b) Subject
      to the provisions of Section
      4 (a)
      and
Section
      7,
      upon
      surrender of this Warrant to the Company or at the office of its stock transfer
      agent or warrant agent, with the Assignment Form annexed hereto duly executed
      and funds sufficient to pay any transfer tax, the Company shall, without charge,
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees named in such instrument of assignment and, if the Holder’s entire
      interest is not being assigned, in the name of the Holder, and this Warrant
      shall promptly be canceled. 

    

    Section
      5. Adjustment
      of Exercise Price and Number of Shares.
      The
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price shall be subject to adjustment from time to time upon the
      occurrence of certain events, as follows:

    

    (a) Reclassification,
      Consolidation or Merger.
      In case
      of any reclassification or change of outstanding securities issuable upon
      exercise of this Warrant (other than a change in par value, or from par value
      to
      no par value, or from no par value to par value or as a result of a subdivision
      or combination) or in case of any consolidation or merger of the Company with
      or
      into another corporation (other than a merger with another corporation in which
      the Company is a continuing corporation and which does not result in any
      reclassification or change, other than a change in par value, or from par value
      to no par value, or from no par value to par value, or as a result of a
      subdivision or combination of outstanding securities issuable upon the exercise
      of this Warrant), the Company, or such successor or purchasing corporation,
      as
      the case may be, shall, without payment of any additional consideration
      therefor, execute a new warrant providing that the Holder shall have the right
      to exercise such new warrant (upon terms not less favorable to the Holder than
      those then applicable to this Warrant) and to receive upon such exercise, in
      lieu of each share of Common Stock theretofore issuable upon exercise or
      conversion of this Warrant, the kind and amount of shares of stock, other
      securities, money or property receivable upon such reclassification, change,
      consolidation or merger by the Holder of one share of Common Stock issuable
      upon
      exercise or conversion of this Warrant had the Warrants been exercised or
      converted immediately prior to such reclassification, change, consolidation,
      or
      merger. Such new warrant shall provide for adjustments which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
Section 5.
      The
      provisions of this Subsection
      5(a)
      shall
      similarly apply to successive reclassifications, changes, consolidations, or
      mergers.

    

    (b) Subdivision
      or Combination of Shares.
      If the
      Company at any time while this Warrant remains outstanding and prior to the
      Expiration Date shall subdivide or combine its Common Stock, the Exercise Price
      shall be proportionately reduced, in case of subdivision of shares, as of the
      effective date of such subdivision, or, if the Company shall take a record
      of
      holders of its Common Stock for the purpose of so subdividing, as of such record
      date, whichever is earlier, or shall be proportionately increased, in the case
      of combination of shares, as of the effective date of such combination, or,
      if
      the Company shall take a record of holders of its Common Stock for the purpose
      of so combining, as of such record date, whichever is earlier.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c) Certain
      Dividends and Distributions.
      If the
      Company at any time while this Warrant is outstanding and prior to the
      Expiration Date shall:

    

    (i)          
       Stock
      Dividends.
      Pay a
      dividend in shares of, or make other distribution of shares of, its Common
      Stock, then the Exercise Price shall be adjusted, as of the date the Company
      shall take a record of the holders of its Common Stock for the purpose of
      receiving such dividend or other distribution (or if no such record is taken,
      as
      at the date of such payment or other distribution), to that price determined
      by
      multiplying the Exercise Price in effect immediately prior to such payment
      or
      other distribution by a fraction (a) the numerator of which shall be the total
      number of shares of Common Stock outstanding immediately prior to such dividend
      or distribution, and (b) the denominator of which shall be the total number
      of shares of Common Stock outstanding immediately after such dividend or
      distribution; or

    

    (ii)         
       Liquidating
      Dividends, Etc.
      Make a
      distribution of its assets to the holders of its Common Stock as a dividend
      in
      liquidation or by way of return of capital or other than as a dividend payable
      out of earnings or surplus legally available for dividends under applicable
      law,
      the Holder shall, upon its exercise, be entitled to receive, in addition to
      the
      number of shares of Common Stock receivable thereupon, and without payment
      of
      any additional consideration therefor, a sum equal to the amount of such assets
      as would have been payable to it as owner of that number of shares of Common
      Stock receivable by exercise or conversion of the Warrant had it been the holder
      of record of such Common Stock on the record date for such distribution, or
      if
      no such record is taken, as of the date of such distribution, and an appropriate
      provision therefor shall be made a part of any such distribution.

    

    (d) Adjustment
      of Number of Shares.
      Upon
      each adjustment in the Exercise Price pursuant to any provisions of this
Section
      5,
      the
      number of shares of Common Stock purchasable hereunder shall be adjusted, to
      the
      nearest one hundredth of a whole share, to the product obtained by multiplying
      such number of shares purchasable immediately prior to such adjustment by a
      fraction, the numerator of which shall be the Exercise Price immediately prior
      to such adjustment and the denominator of which shall be the Exercise Price
      immediately thereafter.

    

    Section
      6. Officers’
      Certificate.
      Whenever the Exercise Price shall be adjusted as required by the provisions
      of
Section
      5,
      the
      Company shall forthwith file in the custody of its secretary or an assistant
      secretary at its principal office an officers’ certificate showing the adjusted
      Exercise Price determined as herein provided, setting forth in reasonable detail
      the facts requiring such adjustment and the manner of computing such adjustment.
      Each such officers’ certificate shall be signed by the chairman, the chief
      executive officer, president, chief financial officer, secretary or any
      assistant secretary of the Company. A copy of each such officers’ certificate
      shall be promptly mailed to the Holder and the original shall be made available
      at all reasonable times for inspection by any other holder of a Warrant executed
      and delivered pursuant to Section
      4
      hereof.

    

    Section
      7. Transfer
      to Comply with the Securities Act of 1933.
      No
      sale, transfer, assignment, hypothecation or other disposition of this Warrant
      or of the Warrant Shares shall be made if such transfer, assignment or other
      disposition would result in a violation of the Act, or any state securities
      laws. Upon exercise of this Warrant, the Holder shall, if requested by the
      Company, confirm in writing, in a form reasonably satisfactory to the Company,
      that the shares of Common Stock so purchased are being acquired solely for
      the
      Holder’s own account, and not as a nominee thereof, for investment, and not with
      a view toward distribution or resale, except as permitted by the Act, and shall
      provide such other information to the Company as the Company may reasonably
      request. Any Warrant and any Warrants issued upon exercise of, substitution
      for,
      or upon assignment or transfer of this Warrant, as the case may be, and all
      shares of Common Stock issued upon exercise hereof or conversion thereof shall
      bear legends (in addition to any legend required by state securities laws)
      in
      substantially the form set forth on the first page of this Warrant, unless
      and
      until such securities have been transferred pursuant to an effective
      registration statement under the Act or may be freely sold to the public
      pursuant to Rule 144 (or any successor rule thereto) or otherwise. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      8. Modification
      and Waiver.
      Neither
      this Warrant nor any term hereof may be changed, waived, discharged or
      terminated other than by an instrument in writing signed by the Company and
      by
      the holder hereof.

    

    Section
      9. Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder hereof or the Company shall be delivered or shall be sent by
      certified mail or documented overnight delivery service, postage prepaid, or
      by
      telecopy, receipt acknowledged, to the Holder at its address as shown on the
      books of the Company or to the Company at the address indicated therefor in
      Section
      1
      of this
      Warrant.

    

    Section
      10. Descriptive
      Headings and Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      This
      Warrant shall be construed and enforced in accordance with, and the rights
      of
      the parties shall be governed by, the laws of the State of
      Delaware.

    

    Section
      11. No
      Impairment.
      The
      Company will not knowingly avoid or seek to avoid the observance or performance
      of any of the terms to be observed or performed hereunder by it, but will at
      all
      times in good faith assist in the carrying out of all of the provisions of
      this
      Warrant.

    

    Section
      12. Rights
      of the Holder.
      The
      Holder shall not, by virtue hereof, be entitled to any rights of a stockholder
      in the Company, either at law or equity, and the rights of the Holder are
      limited to those expressly set forth in this Warrant.

    IN
      WITNESS WHEREOF,
      the
      Company has duly caused this Warrant to be signed by its duly authorized officer
      and to be dated as of November 7, 2006.

     

    
      	 	 	 
	 	vFINANCE, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Leonard
              J. Sokolow
	 	
              

              Name:
                Leonard J. Sokolow

              Title:
                Chief Executive Officer and President

            
	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    PURCHASE
      FORM

     

    Dated
      _______________________

     

    The
      undersigned hereby irrevocably elects to exercise the within Warrant to purchase
      _____________ shares of Common Stock and hereby makes payment of
      $____________________ in payment of the exercise price thereof.

    

    
      	 	____________________________________________________
	 	[PRINT OR TYPE NAME OF
              ENTITY]
	 	
            
	 	By:
              _________________________________________________________
	 	 
	 	Name:  ______________________________________________________
	 	 
	 	Title:
              ________________________________________________________

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT
      FORM

    

    Dated
      ________________________

    

    

    FOR
      VALUE
      RECEIVED, _________________________________ hereby sells, assigns and

    (please
      type or print in block letters)

     

    transfers
      unto _____________________________________________________ (the “Assignee”),
      of

    (please
      type or print in block letters) 

    

    ________________________________________________________________________________________________________________

    (Address)

    

    its
      right
      to purchase up to _________ shares of Common Stock represented by this Warrant
      and does hereby irrevocably constitute and appoint
      _______________________________ Attorney, to transfer the same on the books
      of
      the Company, with full power of substitution in the premises.

    
      

      
        	 	____________________________________________________
	 	[PRINT OR TYPE NAME OF
                ENTITY]
	 	
              
	 	By:
                _________________________________________________________
	 	 
	 	Name:  ______________________________________________________
	 	 
	 	Title:
                ________________________________________________________

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