Document:

10.41

                              BRANCH AGREEMENT AND
                            AMENDMENT TO IC AGREEMENT

         THIS AGREEMENT made as of this ___ day of January, 2003 by and among
vFinance Investments, Inc. (the "Company") with principal offices located at
3010 N. Military Trail, Suite 300, Boca Raton, FL 33431; JSM Capital Holding
Corp, ("JSM") a Delaware Corporation with principal offices located at 595
Madison Ave, New York, N. Y. 10022; and John S. Matthews (the "Independent
Contractor"), an individual located at the same address as JSM.

                                   WITNESSETH:

WHEREAS, the Company and the Independent Contactor entered into that certain
independent contractor agreement dated as of December 19, 2002 (the "IC
Agreement") under which, the existing retail brokerage operations owned by JSM
are to be managed by the Independent Contractor for the benefit of JSM as an
independent contractor office of the Company; and

WHEREAS, the Company maintains its own retail brokerage operations, including
certain assets and liabilities associated therewith, ("Branch Operations") at
branch offices located at the addresses set forth in Schedule A hereto and
desires to enter into an agreement pursuant to which it will sell, convey and
transfer such Branch Operations to JSM in accordance with, and subject to, the
terms of this Agreement to be operated, owned and managed by JSM under the
direction and supervision of the Independent Contractor; and

WHEREAS, JSM desires to acquire the Branch Operations subject to the terms of
this Agreement and to issue in exchange therefore, shares of common voting stock
in JSM; and

WHEREAS, as consideration for JSM's agreement to acquire the Branch Operations
and to enter into the IC Agreement, the Company has agreed to issue to JSM a
warrant to purchase one million shares of its common stock in accordance with
the terms of the warrant attached hereto as Schedule C ("Warrant");and

WHEREAS, the parties hereto have executed the IC Agreement as of December 19,
2002 and desire to amend and supplement such agreement, inter alia, in
contemplation of the transfer of the Branch Operations to JSM and to set forth
the terms and conditions of such transfer including provisions addressing the
terms under which the Branch Operations will be managed by the Independent
Contractor.

<PAGE>

         NOW THEREFORE, in consideration of the mutual promises and premises
contained herein, the parties hereto agree as follows.

1. Defined  Terms.  Capitalized  terms,  unless defined  herein,  shall have the
meaning ascribed to them in the IC Agreement.

2.  Transfer of Branch Operations.

         a. Subject to the provisions hereof, on the later to occur of (i)
         February 15, 2003 or (ii) the date on which the parties have secured
         any and all necessary approvals from all applicable Federal, State and
         local regulatory agencies or authorities and clearing firms (the later
         of such dates being referred to as the "Effective Date"), in exchange
         for the Shares (hereinafter defined), the Company shall sell, assign
         convey and transfer to JSM all assets necessary for, or incident to,
         the operation of the Branch Operations ("Assets") including but not
         limited to all customer accounts for any and all retail brokerage
         accounts serviced by registered representatives at the Branch
         Operations ("Transferred Accounts"), all books and records pertaining
         to the Transferred Accounts, all funds or securities held for the
         benefit of such Transferred Accounts; wire codes pertaining the Branch
         Operations, and such other assets as may be necessary for the operation
         of the Branch Operations as they currently exist. Those registered
         representatives and other employees currently located at the Branch
         Operations who are necessary for the effective operation of the Branch
         Operations and who are listed on the attached Schedule B ("Transferred
         Personnel"), shall be deemed employees of JSM as at the Effective Date
         notwithstanding the mechanics of their compensation as set forth in the
         IC Agreement. The Transferred Personnel shall come under the direct and
         exclusive supervision and control of the Independent Contractor on the
         Effective Date.

         b. JSM and the Independent Contractor hereby agree to honor the
         agreements (including without limitation, payouts, bonuses, splits,
         overrides, expense reimbursements and staff support) between the
         Company and the Transferred Personnel which are described in Schedule
         7(d) and further described or reflected in the books and records of the
         Company as of the date hereof including, without limitation, written
         agreements between the Company and the Transferred Personnel as of the
         date hereof which the parties hereto agree have been made available to
         JSM and the Independent Contractor for their review. The parties
         further agree that all forgivable loans on the books and records of the
         Company as of the date hereof shall remain assets of the Company. JSM
         and Independent Contractor agree to use their best efforts to cause
         such Transferred Personnel to honor such forgivable loans as well as
         any other existing obligations of such Transferred Personnel or loans
         by the Company to such Transferred Personnel as reflected on Schedule
         7(d) or otherwise reflected in the books and records of the Company as
         of the date hereof. JSM and Independent Contractor agree that
         commission amounts due to such Transferred Personnel pursuant to their
         applicable agreements which are payable through the IC Agreement may be
         offset by the Company.

<PAGE>

         c. The parties hereto agree that upon the termination or non-renewal of
         the IC Agreement, (i) Transferred Personnel may elect to return to the
         Company as employees without any potential legal or regulatory claim
         against the Company by JSM or the Independent Contractor or obligation
         or payment by the Company to JSM or the Independent Contractor, and
         (ii) for a period of one year following such termination, the Company
         will not, directly or indirectly, solicit or induce any employee,
         consultant, or registered representative that is employed by, or under
         the supervision of, JSM or Independent Contractor, other than
         Transferred Personnel, to leave his or her employment or to otherwise
         sever their relationship with JSM or the Independent Contractor.

         d. JSM and the Independent Contractor agree the expansion and growth of
         their business will be limited to New York City, Long Island, the New
         York counties immediately surrounding and including New York City, the
         New Jersey counties of Bergen, Essex and Hudson, and the current
         leaseholds (or successor locations thereto) located in Red Bank, N.J.
         and Boca Raton, FL (excluding independent contractors or branch offices
         of the Company)

3. Leaseholds. The parties understand that the physical office locations
occupied by the Branch Operations ("Leaseholds") will be shared by JSM and the
Company from and after the Effective Date. Prior to the Effective Date, the
Company and JSM will agree upon that portion of the space in each office
location that is to be occupied by JSM exclusively which shall based on optimum
occupancy of JSM/Independent Contractor personnel and a fixed number of Company
personnel at such offices ("Segregated Offices") and the parties further agree
to apply the same portion of the space that is to be shared ("Common Area"). The
percentage of space to be allocated to JSM in each Leasehold after the Effective
Date ("Occupancy Percentage"), and any personal property associated therewith,
is set forth on Schedule A hereto and shall be deemed to include both Common
Area and Segregated Area. On the Effective Date, JSM shall and does hereby
sublet and shall pay to the Company on a timely basis pursuant to the terms of
the applicable Leaseholds and underlying leases that portion of each of the
Leaseholds represented by multiplying the applicable Occupancy Percentage by the
amount of rent being paid under each respective Leasehold (reduced by any other
third party subtenant income received by the Company with respect to such
applicable Leasehold). For the purpose of providing a form of "rent concession"
to JSM, notwithstanding the Occupancy Percentage set forth on Schedule A hereto
applicable to the Leasehold in Red Bank, New Jersey, JSM shall be permitted to
occupy no less than fifty percent of the Segregated Offices and Common Area from
and after the Effective Date as if the Occupancy Percentage for the Red Bank
Leasehold was no less than fifty percent from and after the Effective Date. The
duration of the sublet shall be co-terminus with the underlying lease ("Lease")
for each particular Branch Operation. No renewal options under any Lease shall
be exercised by any party without the prior written consent of the other
parties. Each party, at the request of the any other party, agrees to execute a
sublease ("Sublease") for each Leasehold in form and substance reasonably
satisfactory to all parties provided that such Subleases shall not be
inconsistent with the terms and intent hereof. The rent under each Sublease
shall be equal to the total rent (including any items of additional rent, CAM or
other charges of any nature whatsoever payable to the landlord thereunder with
respect to occupancy of the respective Leaseholds from and after the Effective
Date) payable under each Lease multiplied by the applicable Occupancy
Percentage. Independent Contractor shall not be required to advance or post any
security deposit under any of the Leases or Subleases and any deposit previously
posted by the Company shall remain the property of the Company.

<PAGE>

Each of the parties will cooperate with each other in the joint occupancy of the
Leaseholds where applicable and both parties agree that the Occupancy Percentage
for any Leasehold shall be adjusted at any time and from time to time by written
agreement of the parties to reflect fair adjustments in the proportionate use
and occupancy. The parties agree and understand that the Occupancy Percentage
should only be changed as a result of:

a. Changes in the number of JSM/Independent  Contractor  personnel above optimum
usage  assuming  there is no change above on the number of Company  personnel on
the date hereof; or

b. An increase in the number of Company  personnel above the fixed number on the
date hereof  disproportionate  to any  increase  above the optimum  usage in the
number of JSM/Independent  Contractor  personnel at a particular  Leasehold.

c. Unless the parties shall otherwise agree, the space currently occupied by JSM
at 595 Madison Ave. New York,  N. Y. may be utilized by both the Company and JSM
and as such  shall be deemed one of the  Leaseholds  subject to the terms of the
this  Agreement;   provided  however,  the  rent  payable  by  the  Company  for
utilization  of all or a portion  of such  space  shall not  exceed the rent the
Company would have spent for comparable space in its existing offices at its New
York City location.

JSM acknowledges that all of the furniture, fixtures and equipment located in
the Leaseholds (other than any personal property located at the existing offices
of JSM) including, but not limited to, the items of personal property listed on
Schedule 7(h) hereto, shall be retained by the Company but shall be leased to
JSM for its use in, and as part of, the Leaseholds for no additional rent, for
the term of the IC Agreement.

4. Operating Expenses.  On and after the Effective Date, JSM shall pay and shall
cause  to be paid  or  reimbursed  to the  Company,  as the  case  may  be,  its
proportionate share of all operating expenses of the Branch Operations. The term
"Operating Expenses" shall mean, and be limited to the following:

a. All  salaries,  commissions,  payroll  taxes,  insurance  and other  items of
compensation and expenses related thereto for all Transferred  Personnel and any
additional  employees that may be hired to work for or to be shared by (with the
Company)  JSM/Independent  Contractor  after  the  Effective  Date  (hereinafter
"Compensation  Expense").  Compensation  Expense for any employee whose services
are  shared  by the  Company  and  JSM/Independent  Contractor  shall be  shared
proportionately by the Company and JSM/Independent Contractor; provided that JSM
shall not be  responsible  for any  compensation  expense for  employees  of the
Company not utilized by JSM/Independent  Contractor in whole or part. Unless the
Company  and JSM shall  otherwise  agree in  writing,  all  personnel  under the
supervision  and control of the  Independent  Contractor  shall  nevertheless be
deemed  employees  of the Company for payroll and  insurance  purposes,  and JSM
shall reimburse the Company for any expenses related  thereto.

b. All telephone and other  telecommunication  charges for the Branch Operations
which shall be charged to JSM proportionately based upon the ratio of the number
of JSM/Independent  Contractor employees utilizing such services compared to the
total number of individuals  utilizing such services.

c. All  ticket  charges  and  fees  and  expenses  normally  paid by  registered
representatives under the supervision and control of the Independent  Contractor
which shall be paid in accordance with the IC Agreement.

d. All  miscellaneous  charges for the operation of the Branch Operations in the
Leaseholds  including such items as equipment  maintenance  services  contracts,
office  supplies  and  utilities,  all of which  items  shall be  allocated  and
apportioned  based upon actual usage where  possible or, if not,  based upon the
ratio of the  number  of  employees  of  JSM/Independent  Contractor  at a given
Leasehold  location  compared to the total  number of  individuals  occupying or
utilizing such Leasehold.

e.  The  parties  understand  that  the  Independent  Contractor  is a  majority
shareholder  and control  person of JSM.  As such,  the  Independent  Contractor
agrees that the Company shall be permitted to deduct from any commissions,  fees
or other payments due to the Independent  Contractor by the Company under the IC
Agreement  any and all  amounts  due and owing to the  Company  by JSM under the
terms of this Agreement. In such event, the Independent Contractor shall have no
recourse or claim against the Company  except  through JSM and to the extent JSM
would have a claim or recourse pursuant to the terms of this Agreement.

5. Liabilities. Neither JSM nor the Independent Contractor shall be liable for
any costs, customer claims, customer account losses, expenses, claims,
obligations or liabilities of any nature or description, direct or indirect,
known or unknown, where such liabilities or claims arose from actions or
omissions of any employee, registered representative, officer or director of the
Company occurring prior to the Effective Date, or in any manner arose from
operation or ownership of the Branch Operations prior to the Effective Date. The
Company shall indemnify and hold harmless the Independent Contractor and JSM
from and against any such claims or liabilities in accordance with the
indemnification provisions set forth in Section 9 hereof. The Company shall not
be responsible for any claims or liabilities arising from operation or ownership
of the Branch Operations from and after the Effective Date and JSM shall
indemnify and hold harmless the Company from and against any such claims or
liabilities in accordance with the indemnification provisions set forth in
Section 9 hereof.

<PAGE>

6. Issuance of Shares/Buy Back.

         (a) In exchange for the transfer of the Branch Operations as
         hereinabove set forth, JSM, on the Effective Date, shall issue and
         transfer to the Company shares of its common voting stock representing
         nineteen and nine-tenths percent (19.9%) of the total issued and
         outstanding common stock of JSM after giving effect to the issuance of
         the shares to the Company (such shares of common stock issued to the
         Company being referred to herein as the "Transfer Shares"). The Company
         shall have anti-dilution protection to maintain such nineteen and
         nine-tenths percent (19.9%) ownership interest upon the exercise of
         outstanding options or rights to acquire any of JSM's common stock
         which options or rights are outstanding as of the Effective Date. The
         Transfer Shares, when issued shall be deemed fully paid and
         non-assessable.

         (b) Upon the termination or non-renewal of the IC Agreement for any
         reason other than (i) the termination of the IC Agreement by the
         Independent Contractor due, in turn, to the termination of his
         employment agreement ("Employment Agreement") by the Company without
         Cause (as defined therein) or an occurrence of the Triggering Event
         described in Section 5(a)(3) of the Employment Agreement, (ii) the
         failure of the Company to agree to a renewal of the IC Agreement, on
         substantially similar terms, at the expiration of its term, for
         additional terms of not less than eighteen months each, or (iii) the
         termination of the IC Agreement by the Independent Contractor under
         Section 19 c). of the IC Agreement; then, and in such event, JSM shall
         repurchase the Transfer Shares at a cash purchase price equal to the
         greater of the following: (a) 1.5 times the net operating profits as
         defined by GAAP of JSM, determined in accordance with generally
         accepted accounting principles consistently applied, for its fiscal
         year ending immediately prior to the event requiring the purchase
         multiplied by 19.9%; or (b) 19.9% of the fair market value of JSM as of
         the end of such fiscal year determined by an accounting firm mutually
         agreeable to both parties (or, if the parties cannot agree upon an
         accounting firm, each party shall choose a firm and the value shall be
         determined by averaging the results obtained from both firms). Items
         (a) and (b) above shall be reasonably adjusted to reflect any
         Transferred Personnel who elect to be employed by the Company as
         described in Section 2 c. above.

         (c) In the event of a Change in Control as defined in the Employment
         Agreement, the Company shall have the right to purchase ("Purchase
         Option") the assets (excluding any stock or warrants to acquire stock
         in the Company) of JSM ("JSM Assets"), free and clear of any liens
         encumbrances or liabilities, pursuant to the following terms and
         conditions: for a purchase price equal to the sum of (x) the greater of
         (i) fair market value of the JSM Assets (valued as an asset sale of
         100% of a going business concern), as of the end of the month following
         the month in which the option is exercised, determined by an accounting
         firm mutually agreeable to both parties (or, if the parties cannot
         agree upon an accounting firm, each party shall choose a firm and the
         value shall be determined by averaging the results obtained from both
         firms), or (ii) Two Million Seven Hundred Thousand Dollars
         ($2,700,000); plus (y) the total amount of money funded, by an
         individual or entity ("Investor") into JSM, whether in the form of debt
         or equity, from the date of this Agreement through the date of exercise
         of the Purchase Option plus an additional amount of money sufficient to
         yield to each such Investor an annualized internal rate of return equal
         to thirty percent. Concurrently with the closing on the acquisition of
         the JSM Assets, JSM shall purchase, and the Company shall re-convey to
         JSM, the Transfer Shares for an aggregate consideration of One Hundred
         Dollars ($100). The Purchase Option may be exercised by written notice
         to JSM received within ten days following a Change in Control ("Notice
         Period") if the Purchase Option is not exercised within the Notice
         Period, the option shall terminate and be of no further force of
         effect. Upon exercise of the Purchase Option, the purchase price for
         the JSM Assets shall be paid in immediately available funds within 10
         days following the expiration of the Notice Period. The Purchase Option
         shall terminate upon termination or non-renewal of the IC Agreement for
         any reason. In the event the Purchase Option is not exercised within
         eighteen (18) months from the date hereof, the Two Million Seven
         Hundred Thousand Dollars ($2,700,000) shall increase quarterly on the
         first day of each succeeding quarter annual anniversary date at the
         rate of ten percent per annum compounded quarterly.

<PAGE>

7.   Representations   of  the  Company.   The  Company   makes  the   following
representations that shall be true and accurate on the Effective Date:

         (a)  Ownership of the Branch Operations. The Company owns all right,
              title and interest in and to all assets utilized in, or
              constituting part of, the Branch Operations being transferred to
              JSM hereunder ("Assets"), free and clear of all liens, security
              interests, claims and encumbrances whatsoever, and upon delivery
              to JSM, at the Effective Date, of the Branch Operations, JSM shall
              be the lawful owner of the Assets and Branch Operations, free and
              clear of all liens, security interests, claims and encumbrances
              whatsoever.

         (b)  Authority.  The Company has the absolute  and  unrestricted
              right,  power, authority  and capacity to execute and deliver this
              Agreement and all documents and  instruments  specified  in it and
              to  perform  its  obligations  under this Agreement  and  under
              all  documents  and   instruments   specified  in  it  or
              contemplated by it. The execution, delivery and performance of
              this Agreement by the Company and all other agreements, documents
              and instruments specified herein have been duly  authorized by all
              necessary  action of the Company.  Neither the execution, delivery
              or performance  of this  Agreement by the Company,  nor the
              consummation of the transactions contemplated herein, will result
              in a breach or violation of, or default under,  or conflict  with,
              any law, rule,  regulation, judgment,  order,  decree,  mortgage,
              agreement,   indenture,   instrument  or arrangement  applicable
              to the Company.  This Agreement  constitutes  the legal, valid and
              binding  obligation of the Company  enforceable in accordance with
              its terms.  Neither the execution and delivery of this Agreement
              by the Company, nor the  consummation of the  transactions
              contemplated  by this  Agreement,  shall (whether  with or without
              notice or the  passage of time or both) (i) result in the
              creation  of any lien,  security  interest,  charge,  encumbrance
              or other similar right of any person upon the Assets,  (ii)
              constitute a violation by the Company of any applicable law, rule
              or regulation of any jurisdiction,  or (iii) violate or conflict
              with the  Certificate  of  Incorporation  or By-Laws of the
              Company.

<PAGE>

         (c)  Financial Information. Annexed hereto as Schedule 7(c) are the
              financial operating profit and loss statements for the Branch
              Operations for the month of November 2002 and year to date
              ("Financial Statements"). The Financial Statements are true,
              accurate and complete in all material respects, and fairly present
              the financial condition and results of operations of the Branch
              Operations as of the date, and for the periods, covered thereby,
              substantially in accordance with generally accepted accounting
              principles, consistently applied. The Financial Statements have
              been prepared from the books and records of the Company which
              books and records fairly reflect all transactions to which the
              Company was and is a part.

         (d)  Employment Matters. Set forth on Schedule 7(d) is a true and
              complete list of all employees of the Company being transferred to
              JSM, indicating with respect to each employee such employee's job
              title and the date of commencement of employment of such employee.
              No employees are covered by written employment agreements except
              as indicated on the schedule and copies of such agreements or
              summaries thereof have been provided to JSM. The Company is not in
              default in any material respect under any such agreement. This
              Agreement and the transactions contemplated hereby will not result
              in any obligation on the part of the Company to pay any employees
              severance pay, termination, retention or other benefits. The
              Company has filed all unemployment compensation returns required
              to be filed by the Company with respect to Transferred Personnel,
              and all taxes shown on such unemployment compensation tax returns
              have been properly and accurately determined, have been accrued to
              the extent that such taxes are not yet due, and have been paid to
              the extent that such taxes are due. The Company has paid all
              payroll withholding or other taxes due or payable in connection
              with the Transferred Personnel.

         (e)  Compliance with laws. The operations of the Company have been
              conducted in accordance with all applicable laws, regulations and
              other requirements of all national governmental authorities,
              regulatory authorities and of all states, municipalities and other
              political subdivisions and agencies thereof, haying jurisdiction
              over the Company, including, without limitations of the Company,
              antitrust, consumer protection, currency exchange, equal
              opportunity, health, occupational safety and pension matters,
              except for violations which could not reasonably be expected to
              have a material adverse effect on the business, assets or
              properties of the Company. Except as set forth on Schedule 7(e)
              hereof, during the last twelve (12) months, the Company has not
              received any notification of any asserted present or past failure
              by the Company to comply with such laws, rules or regulations.

<PAGE>

         (f)  SEC and NASD Matters. The Company is registered with the SEC and
              is a member in good standing with the NASD. The Company is
              registered with those States listed on the attached Schedule 7(f)
              to conduct business as a broker/dealer. The Company has authority,
              is in compliance under the NASD constitution and rules, and is
              currently registered and approved to conduct a securities
              business. Except as set forth on Schedule 7(f), there are no past,
              pending or threatened proceedings involving the SEC, the NASD or
              any state regulatory authority which may impair the ability of the
              Company to conduct business as a broker/dealer. To the best
              knowledge of the Seller, the Company is not in violation of the
              applicable provisions of the Securities Exchange Act or the
              general rules and regulations thereunder or the By-Laws and rules
              of the NASD. Except as otherwise disclosed in this Agreement or in
              any Exhibit or Schedule hereto, the Company is not the subject of
              any currently pending or threatened material customer complaint,
              inquiry, formal or official investigation, or disciplinary
              proceeding undertaken by the NASD concerning the Company, or any
              of its officers, directors, registered principals or registered
              representatives of which the Company or its agents have knowledge.
              There are no special restrictions or limitations imposed by the
              NASD or the SEC on the Company relating to the manner in which the
              Company conducts its business as a broker-dealer. As of the
              Effective Date, there will be no fees or assessments owed to the
              SEC, NASD, any state where the Company is registered, or to SIPC,
              other than those regular fees or assessments incurred in the
              ordinary course of business.

         (g)  Actions and Proceedings. There are no outstanding orders, charges,
              directives, writs, injunctions or decrees of any court,
              administrative agency, governmental or other regulatory body or
              arbitration tribunal against, or affecting, the Company or any of
              its property or assets which would have a material adverse effect
              on the operations, assets, properties, results or condition
              (financial or otherwise) of the Branch Operations.

(h)           Leases and Leaseholds. Copies of Leases for the Leaseholds have
              been delivered by the Company to JSM which leases are in full
              force and effect and there are no defaults existing thereunder.
                  .
(i)           Employee Benefit Plans. The Company has delivered to JSM copies of
              all Employee Benefit Plans in which any of the Transferred
              Personnel was or would have been eligible to participate. As used
              herein, "Employee Benefit Plan" means any pension, profit-sharing,
              retirement, deferred compensation, bonus, stock purchase, stock
              option, severance, hospitalization, medical insurance, life
              insurance, medical and dental insurance, fringe benefit, vacation
              policy, permissible leave policy or other employee benefit plan,
              agreement, arrangement or understanding.

<PAGE>

(j)           Insurance. Schedule 7(j) contains a complete and correct list of
              all insurance policies carried by, or covering, the Company with
              respect to its business and the Branch Operations, together with,
              in respect of each such policy, the name of the insurance carrier,
              the policy number, the risk insured against, the limits of
              coverage, the policy term and the expiration date thereof. All
              such policies are in full force and effect, and no notice of
              cancellation has been given with respect to any such policy. All
              premiums due thereon have been paid in a timely manner.

(k)           Third Party Consents. Except with respect to the consent of the
              NASD, there are no consents, waivers, authorizations or approvals
              of any governmental or securities regulatory authority, or of any
              other person, that are required in connection with the execution
              and delivery of this Agreement or the performance by the parties
              of their respective obligations hereunder.

(l)          Survival. All of the representations contained in this Section 7
             shall survive for a period of eighteen months following the
             Effective Date.

8.  Representations  of  JSM.  JSM  makes  the  following   representations  and
warranties that shall be true and accurate on the Effective Date:

         (a)  Authority. JSM has full power and authority to execute and deliver
              this Agreement and all agreements, documents and instruments
              specified in it, and to perform its obligations under this
              Agreement and under such instruments and documents.

         (b)  Authorization. Neither the execution, delivery or performance of
              this Agreement by JSM, nor the consummation of the transactions
              contemplated herein, will result in a breach or violation of, or
              default under, or conflict with, any law, rule, regulation,
              judgment, order, decree, mortgage, agreement, indenture,
              instrument or arrangement applicable to JSM.

         (c)  Binding Obligation. This Agreement and the other agreements,
              documents and instruments specified herein to be executed and
              delivered at the Closing constitute legal, valid and binding
              obligations of JSM, enforceable against JSM in accordance with
              their respective terms.

         (d)  Approval of Transaction. Except for the consent of the NASD, no
              consent, approval, authorization, license, permit or other action
              by, and no filing or registration with any governmental or
              regulatory authority is required for the execution and delivery of
              this Agreement by the JSM, or for the consummation by the JSM of
              the transactions contemplated by this Agreement.
<PAGE>

         (e)  Claims and Litigation. No actions, suits, claims, litigation,
              arbitration proceedings, administrative proceedings or
              investigations are pending or threatened against JSM which could
              adversely affect the consummation of this transaction.

         (f)  Transfer Shares. The Transfer Shares, when issued, will be free
              and clear of all liens, security interests, claims and
              encumbrances whatsoever, and upon delivery to the Company, at the
              Effective Date, of the certificates representing the Transfer
              Shares, duly endorsed for transfer to the Company, the Company
              shall be the lawful owner of the Transfer Shares, free and clear
              of all liens, security interests, claims and encumbrances
              whatsoever. The Transfer Shares represent 19.9% of the outstanding
              shares of capital stock of the Company as at the Effective Date.
              Schedule 8 (f) sets forth the capitalization, ownership,
              outstanding options, warrants or similar share rights, and
              corporate chart showing all subsidiaries and affiliates of JSM.

         (g)  Survival.  All of the representations contained in this Section 8
              shall survive for a period of eighteen months following
              the Effective Date.

 9.  Indemnification.

         (a) Except as otherwise provided herein below, JSM shall indemnify and
 hold harmless the Company and its respective affiliates, officers, directors,
 shareholders, employees and controlling persons and the Company shall indemnify
 and hold harmless JSM and its respective affiliates, officers, directors,
 shareholders employees and controlling persons (the indemnifying party in each
 case being referred to as the "Indemnifying Party" and the indemnified party in
 each case being referred to as the "Indemnified Party"), against and in respect
 of any claim, damage, loss liability award, cost or expense resulting from any
 claims actions suits arbitrations, proceedings, demands, judgments, costs or
 expenses (including reasonable legal expenses) arising from or incurred in
 connection with any of the following:

(i)      Any  unauthorized  actions,  violations  of  securities  laws,  rules
         or  regulations;  breach  by the  Indemnifying  party of supervisory or
         compliance  procedures and manuals;  misconduct by the  Indemnifying
         Party (or by any other person employed at or associated  with a branch
         office of the respective  party);  or any other  activity of the
         Indemnifying  Party,  or by any other person  employed at or associated
         with either the main office or a branch  office of such  Indemnifying
         Party,  as the case may be, or otherwise resulting from the operation
         of the main office or the branch office, as the case may be;
         (ii)     Investigations incident to the forgoing;
         (iii)    Any  negligent  act or omission of the  Indemnifying  Party
         (and any  negligent  act or omission by any other  person employed at
         or  associated  with the main office or a branch office of such party)
         or otherwise  resulting  from the operation of the main office or the
         branch office, as the case may be;
         (iv)     With respect to JSM, any and all  obligations  with respect to
         operation of the Branch  Operations from and after the Effective Date.
         (v)      With respect to the Company,  any and all  obligations  with
         respect to operation of the Branch  Operations  prior to the Effective
         Date.
<PAGE>

         (b) Except as may be provided below, each party shall indemnify and
hold harmless the other party for any misrepresentation, omission, or breach of
any agreement, representation, covenant term or condition on the part of the
other party to be performed fulfilled or complied with under this agreement or
any other document furnished by one to the other.

         (c) The Indemnifying Party will not, without the prior written consent
of the Indemnified Party, settle, compromise or consent to the entry of any
judgment in any pending or threatened claim, arbitration, action or proceeding
in respect of which any liability could be asserted against the Indemnified
Party, unless such settlement, compromise or consent includes an unconditional
general release of the Indemnified Party from all liability arising out of such
claim or proceeding.

         (d) Promptly after receipt by an Indemnifying Party of notice of the
commencement of any action, the Indemnifying Party will, if a claim is made
against the Indemnified Party, notify the Indemnified Party. In case any action
is brought against an Indemnified Party, the Indemnified Party will be entitled
to participate therein and assume the defense thereof with counsel reasonably
satisfactory to the Indemnifying Party; provided, however, the where the claims
would exceed $150,000, the Indemnifying Party shall have the right to appoint
qualified legal counsel reasonably acceptable to the Indemnified Party to defend
the matter.

         (e) In the event an Indemnifying Party fails to defend any action
described herein, the Indemnified Party shall have the right to assume such
defense, retain counsel and settle or dispose of such matter in its sole
discretion, and the Indemnifying Party shall be responsible for the payment of
any settlement, award or the like in addition to the costs and attorney's fees
incurred in connection with the defense.

10.       IC Agreement Term.  The Term of the IC Agreement shall be and is
hereby amended as follows:
(a) Section 2 of the IC Agreement shall be read to provide that the initial term
is reduced from three (3) years to eighteen (18) months.

(b) Sections 19 f. (ii) and (iii) of the IC  Agreement  shall be read to provide
any  Change in  Control as  defined  in the  Employment  Agreement  shall not be
deemed,  or in any be grounds for, an event of default.

(c)  Section  19 f.  (iii) of the IC  Agreement  shall be read to  provide  that
resignation  or  voluntary  termination  by  the  Independent  Contractor  under
Sections 5 (a) (2) and 6 (c) of the Employment Agreement shall not be deemed, or
be grounds for, an event of default.

(d)  Section 19 g. is hereby  deleted in its  entirety.  and  amended to provide
that, additionally, the Independent Contractor can terminate the IC Agreement in
the event of the  insolvency or bankruptcy of the Company or a material  adverse
change in the  business  prospects  of the Company  which could  reasonably  and
imminently jeopardize the ability of the Company to continue in business.

<PAGE>

11.  Issuance of Warrant.  In  consideration  of JSM's  agreement to acquire the
Branch  Operations  and to enter into the IC  Agreement,  on the date hereof the
Company shall issue to JSM the Warrant described in Schedule C.

12. Miscellaneous.

         (a) Entire Agreement. This Agreement (together with the Schedules and
Exhibits hereto and the IC Agreement) contains, and is intended as a complete
statement of all of the terms of the arrangements between the parties with
respect to the matters provided for, and, except as provided herein, supersedes
any previous agreements and understandings between the parties with respect to
those matters. This Agreement is designed to amend and supplement the IC
Agreement which shall remain in full force and effect in accordance with its
terms.

         (b) Governing Law. This Agreement shall be governed by, and construed
and  enforced in  accordance  with,  the laws of the State of New York,  without
regard to its principles of conflicts of law.

         (c) Headings. The section headings of this Agreement are for reference
purposes only and are to be given no effect in the construction or
interpretation of this Agreement.

         (d) Notices. All notices and other communications under this Agreement
shall be in writing and shall be deemed given when delivered personally, mailed
by registered mail, return receipt requested, sent by recognized overnight
delivery service or, to the extent receipt is confirmed, by facsimile, telefax,
or other electronic transmission service, to the parties at their respective
addresses set forth in the preamble to this Agreement.

         (e) Amendment and Waiver. No provision of this Agreement may be amended
or modified except by an instrument or instruments in writing signed by the
parties hereto. Any party may waive compliance by another party with any of the
provisions of this Agreement. No waiver of any provision hereof shall be
construed as a waiver of any other provision. Any waiver must be in writing.

         (f) Assignment and Binding Effect. Neither party hereto may assign any
of its rights or delegate any of its duties under this Agreement without the
prior written consent of the other party; provided that, consistent with the
terms of the IC Agreement, the Independent Contractor may assign any of his
rights and duties hereunder to JSM if it is legally permissible to do so. All of
the terms and provisions of this Agreement shall be binding on, and shall inure
to the benefit of, the respective heirs, personal representatives, successors
and permitted assigns of the parties.

<PAGE>

          (g) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and each party thereto
may become a party hereto by executing a counterpart hereof. This Agreement and
any counterpart so executed shall be deemed to be one and the same instrument.

           (h) Expenses. Each of the parties hereto shall bear its own expenses
relating to the transactions contemplated hereby.

           (i) Further Assurances. Each party covenants that it will execute
such additional documents and take such additional actions as may be reasonably
requested by any other party to confirm or perfect or otherwise to carry out the
intent and purposes of this Agreement and the transactions related hereto, and
that it will promptly take all commercially reasonable efforts to obtain all
licenses and approvals required to consummate the transactions contemplated
hereby.

          (j) Arbitration. Any controversy, claim or counterclaim arising out of
or in connection with this Agreement, whether in contract, in tort or asserting
rights created by Federal or state statues or otherwise, shall be governed by
the Code of Arbitration Procedure of the NASD. Arbitration shall be conducted in
Atlanta, Georgia in accordance with the Rules of the NASD, and judgment on the
award rendered by the arbitrators may be entered in any court having
jurisdiction thereof. The arbitrators may grant any remedy or relief that they
deem just and equitable including, but not limited to, specific performance of a
contract. Each party irrevocably consents to subject matter and personal
jurisdiction before the NASD. The parties covenant that under no conditions will
any of them file any action at law against any other party or bring any claim in
any forum other than before the NASD; provided, however, that all parties hereto
consent to the jurisdiction of any court of competent jurisdiction to obtain any
preliminary relief, such as a restraining order, injunction, or any other
immediate relief sought, pending the determination of the arbitration
proceeding.

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date and year first above written.

JSM CAPITAL HOLDING CORP.           VFINANCE INVESTMENTS, INC.

BY:_____________________________    By:___________________________

INDEPENDENT CONTRACTOR

-----------------------------
John S. Matthews, Individually10.42

                              EMPLOYMENT AGREEMENT

               EMPLOYMENT AGREEMENT made as of January 1, 2003 by and between
VFINANCE, INC., a Delaware corporation (the "Company"), and John S. Matthews
("Employee") domiciled at 74 Millspring Road, Manhasset, New York 11030.

                                   WITNESSETH:
               WHEREAS, Employee wishes to be employed by the Company with the
duties and responsibilities as hereinafter described, and the Company desires to
assure itself of the availability of Employee's services in such capacity.

               NOW THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Company and Employee hereby agree as follows:

1. EMPLOYMENT. The Company hereby agrees to employ Employee, and Employee hereby
agrees to serve the  Company,  upon the terms  and  conditions  hereinafter  set
forth.

2. TERM. The employment of Employee by the Company pursuant to this Agreement
shall be for an eighteen month (18) period commencing on the date hereof and
shall automatically be extended for additional one year periods on the eighteen
(18) month anniversary date of this Agreement (July 1, 2004) and each annual
anniversary date thereafter (July 1 of each year beginning in 2005) unless the
Company or the Employee has provided notice of non-renewal ninety (90) days
prior an anniversary date (the "Term"). For example, in the event the Company
has provided notice of non-renewal 90 days prior to July 1, 2004, there will be
only ninety (90) days remaining in the Term; in the event neither the Employee
nor the Company provided such notice ninety (90) days prior to July 1, 2004,
then the Term shall be extended to July 1, 2005 so that on July 1, 2004, the
total Term is one (1) year.

3. DUTIES. Employee shall, serve as, and have all power and authority inherent
in the offices of President, vFinance Investments, Inc., Retail Brokerage
Division reporting to the CEO and Chairman of vFinance Investments, Inc.
("Management"). The Employee shall be responsible for those areas in the conduct
of the business reasonably assigned to him consistent with responsibility for
the over-all growth and profitability of the retail brokerage operations of the
Company including trading to the extent it impacts upon the retail brokerage
operation and including retail investment banking operations. Employee shall
devote on a full time basis his business time and efforts to the business of the
Company; provided, however, that it is understood and agreed that, while
Employee may devote time to other business matters in which he has an interest
and may be an officer or director of other companies (including JSM Capital
Holding, Corp.) that have no conflicts of interest with the Company, in the
event of a conflict, Employee's first and primary responsibility shall be to the
full time performance of his duties for the Company. The Company understands
that Employee has also executed an Independent Contractor Agreement with the
Company, and the Company understands and agrees that Employee will also be
performing services as an Independent Contractor. The Company agrees that the
performance of such services as an Independent Contractor shall not be deemed a
conflict of interest hereunder provided that the Employee continues to
diligently perform his duties hereunder. Employee agrees that in the performance
of his duties hereunder, the employee in the routine conduct of his duties will
be performed at either the JSM Capital Holding, Corp. ("JSM") offices in New
York, New York or the Company's office located in Boca Raton, Florida. The
Employee shall be reimbursed for reasonable travel, lodging, and meal expenses
for work and travel to Boca Raton, Florida. The Company recognizes that from
time to time the employee in his reasonable judgment may perform services
required of him hereunder, off-site by means of telephone, facsimile, electronic
mail or other appropriate means.

<PAGE>

4.  COMPENSATION  AND  OTHER  PROVISIONS.  Employee  shall  be  entitled  to the
compensation and benefits hereinafter described in subparagraphs (a) through (e)
(such compensation and benefits being hereinafter  referred to as ("Compensation
Benefits").

      (a) BASE SALARY. The Company shall pay to Employee a base salary of
      $125,000 per annum for the first year of this Agreement ("Base Salary").
      The Base Salary and Employee's other compensation will be reviewed at
      least annually and may be increased (but not decreased) from time to time
      as Management may determine.

      (b) PARTICIPATION IN BENEFIT PLANS. During the Term, Employee shall be
      eligible to participate in all employee benefit plans and arrangements now
      in effect or which may hereafter be established, including, without
      limitation, all life, group insurance and medical care plans and all
      disability, retirement and other employee benefit plans of the Company.
      Additionally, Employee shall be added as an insured to any director and
      officer insurance policy that the Company hereafter procures.

      (c) OTHER PROVISIONS. Employee shall be entitled to four (4) weeks paid
      vacation per annum. Employee shall be reimbursed for all reasonable
      expenses incurred by him in the performance of his duties, including, but
      not limited to, cellular telephone, entertainment, travel and other
      expenses deemed reasonably necessary by his direct superiors.

      (d) DISCRETIONARY BONUSES. Employee shall be entitled to receive annual
      and/or interim cash bonuses and/or other bonuses when and in such amounts
      as may be determined by Management in its sole and reasonable discretion
      based upon Employee's performance, the Company's performance and/or other
      factors; provided, that, Management shall meet at least annually to review
      Employee's bonus entitlements.

      (e) INCENTIVE  COMPENSATION.  Employee  shall receive  quarterly
      incentive  compensation  payments as more fully  described on
      Schedule A attached hereto.

      (f) STOCK OPTIONS. On even date herewith, the Company and Employee shall
      enter into the Stock Option Agreement attached hereto as Exhibit B
      pursuant to which the Company shall grant to Employee certain options to
      purchase common stock of the Company upon such terms and conditions set
      forth therein.

<PAGE>

5. SEVERANCE AND CHANGE OF CONTROL PROVISIONS. Upon the occurrence of a
Triggering Event (as hereinafter defined), Employee shall be entitled to the
immediate receipt of Severance Payments and Benefits (as hereinafter defined)
from the Company in accordance with the terms hereinafter set forth.

(a) TRIGGERING  EVENT.  The  occurrence of any of the following  events shall be
defined as a "Triggering Event" for purposes hereof:

                  (1) The Company's termination of Employee's employment (other
                  than for Cause (as hereinafter defined)) at any time prior to
                  the expiration of the Term or within ninety days (90)
                  following a Change of Control (as hereinafter defined);

                  (2) The voluntary resignation of Employee for any reason
                  whatsoever within ninety (90) days following a Change of
                  Control;

                  (3) The voluntary resignation of Employee for "good reason, "
                  which for purposes hereof, shall be on written notice to the
                  Company and shall include, without limitation, (i) a demotion,
                  (ii) a reduction in salary, benefits, bonuses, incentives or
                  perquisites, or (iii) the relocation of Employee outside of
                  New York City, New York, (iv) the breach of the Independent
                  Contractor Agreement described in paragraph 12 by the Company;
                  or (v) the breach of the Branch Agreement (as defined herein
                  below) by the Company; or

                 (4) The death or Disability of the Employee(as defined herein).

(b) CHANGE OF CONTROL.  For  purposes  of this  Agreement,  the term  "Change of
Control" shall mean the occurrence of any of the following events:

                  (1)  Forty  percent (40%) or more of the Company's  voting
                       stock shall be acquired by any person (other than
                       Employee),  entity or affiliated group;

                  (2)  An unapproved  change to the majority  control of the
                       Company's  Board of Directors or a change in the majority
                       of the senior management of the Company;

                  (3)  Any merger, consolidation or business combination (i.e. a
                       Transaction) where more than fifty percent (50%) of the
                       Company's voting stock or more than fifty percent (50%)
                       of the merged and or consolidated business entity (if the
                       Company is not the surviving entity) shall be, as the
                       result of the Transaction, acquired by any person (other
                       than Employee), entity or affiliated group;

                 (4)   The sale of all or substantially all of the Company's
                       assets.

<PAGE>

(c) SEVERANCE  PAYMENTS AND BENEFITS.  For purposes of this Agreement,  the term
"Severance Payments and Benefits" shall mean:

                 (1)   Employee shall be entitled to a payment equal to the
                       Employee's highest annual Base Salary received by
                       Employee in respect of any year within the three (3) year
                       period preceding the Triggering Event plus all bonuses
                       and incentives which Employee is entitled to on the date
                       the Triggering Event occurred (with respect to all such
                       bonus amounts that would have accrued for fiscal quarters
                       occurring prior to the Triggering Event); such amount to
                       be paid to Employee over a period of twelve months in 12
                       equal and consecutive monthly payments.
                 (2)   All stock options, warrants, other stock appreciation
                       rights and other similar securities shall become
                       immediately and fully vested and all conditions
                       applicable to all contingently issued warrants, stock
                       options, appreciation rights and other similar securities
                       shall be deemed waived by the Company;
                 (3)   All benefits applicable to Employee and his family
                       members as described in Sections 5(a) and (b) of the
                       Agreement shall continue for a period of one (1) year
                       following the Triggering Event or through the expiration
                       of the Term (as if the Triggering Event had not
                       occurred), whichever is later;
                 (4)   In the event that Severance Payments and Benefits are
                       deemed to be "excess parachute payments" as defined under
                       Section 280G of the Internal Revenue Code, then the
                       Company shall pay to Employee an additional lump sum cash
                       payment as shall be necessary to provide Employee with
                       the same "after-tax" compensation and benefits as if no
                       such excise tax had been imposed.
                 (5)   The Company shall be required to pay any and all
                       attorneys' fees and costs that Employee may incur in
                       connection with the enforcement of his rights under this
                       Agreement or any dispute or settlement in connection a
                       court of law determines that the Employee is the
                       prevailing party. If the Employee seeks enforcement of
                       his rights under this Agreement and a court of law
                       determines that the Employee is not the prevailing
                       party, then the Employee shall pay the Company any and
                       all attorneys' fees and costs that the Company may incur
                       in connection therewith;

                 (6)   Severance Payments and Benefits will not be subject to
                       mitigation in any respect.

(d) STOCK OPTIONS,  WARRANTS AND STOCK APPRECIATION RIGHTS.  Notwithstanding the
foregoing,  all stock options,  warrants,  stock  appreciation  rights and other
similar  securities  shall  immediately  vest upon the occurrence of a Change of
Control  and at such  time all  conditions  applicable  to  contingently  issued
options,  warrants,  stock  appreciation  rights and other  securities  shall be
deemed waived by the Company.

<PAGE>

6. TERMINATION.  Employee's  employment hereunder shall terminate as a result of
any of the following events:

(a)      Employee's death;

(b)           Employee shall be unable to perform his duties hereunder by reason
              of illness, accident or other physical or mental disability for a
              continuous period of at least nine months or an aggregate of
              twelve months during any continuous eighteen month period
              ("Disability");

(c)           Voluntary termination by Employee (other than in respect of a
              Triggering Event) provided that employee provides the Company one
              ninety (90) day advance written notice of termination; or

(d)           For Cause, where "Cause" shall mean: (i) final non-appealable
              adjudication of Employee of a felony; (ii) consent, order or
              decree from the Securities and Exchange Commission or the NASD
              barring employing from the securities business; (iii) the
              determination of the Board (after written notice has been given to
              the Employee with a thirty day cure period) that Employee has
              engaged in material intentional misconduct; (iv) the gross neglect
              of his duties (which has not been cured within the applicable cure
              period), which has a continuing material adverse effect on the
              business of the Company; (v) the breach of the Independent
              Contractor Agreement described in paragraph 12 by the Employee; or
              (vi) the breach of the Branch Agreement by JSM Capital Holding
              Corp or Employee.

(e)           The occurrence of a Triggering Event as set forth in Paragraph 5
              (a) above.
              Any termination pursuant to subparagraph (b), (c) (d) or (e) of
              this Section shall be communicated by a written notice ("Notice of
              Termination"), such notice to set forth with specificity the
              grounds for termination if the result of "Cause". Employee's
              employment under this Agreement shall be deemed to have terminated
              as follows: (i) if Employee's employment is terminated pursuant to
              subparagraph (a) above, on the date of his death; (ii) if
              Employee's employment is terminated pursuant to subparagraph (b)
              (d) or (e) above, on the date on which Notice of Termination is
              given; and (iii) if Employee's employment is terminated pursuant
              to subparagraph (c) above, ninety (90) days after the date on
              which a Notice of Termination is given. The date on which
              termination is deemed to have occurred pursuant to this paragraph
              is hereinafter referred to as the "Date of Termination".

7. PAYMENTS ON TERMINATION. In the event that Employee's employment is
terminated pursuant to Section 6 above, the Company shall pay to Employee his
full Base Salary through the Date of Termination together with all incentive
compensation, benefits and other compensation, if any, due and owing as of that
date, plus any Severance and Benefit Payments to which Employee may be entitled
hereunder pursuant to Section 5(c) above.

<PAGE>

8. BOARD OF DIRECTORS. The Company shall cause Employee to be appointed as an
observer to the Board of Directors of the Company during the Term. Employee
shall be given notice of all Board meetings as if he were a director. The Board
reserves the right at its sole discretion to exclude Employee from attending any
meetings or participating in any conversations where the purpose of which is to
discuss the Employee's performance pursuant under this Agreement.

9. LIFE INSURANCE. If requested by the Company, Employee shall submit to such
physical examinations and otherwise take such actions and execute and deliver
such documents as may be reasonably necessary to enable the Company to obtain
life insurance on the life of Employee for the benefit of the Company.

10.  REPRESENTATIONS  AND  WARRANTIES.  Employee  represents and warrants to the
Company that he is under no contractual or other  restriction or obligation that
would  prevent the  performance  of his duties  hereunder or interfere  with the
rights of the Company hereunder.

11. DISCLOSURE AND PROTECTION OF CONFIDENTIAL INFORMATION.
(a)           For purposes of this Agreement  "Confidential  Information" means
              knowledge, information and material which is proprietary to the
              Company,  of which Employee may obtain  knowledge or access
              through or as a result of his employment by the Company (including
              information conceived, originated, discovered or developed in
              whole or in part by Employee).  Confidential  Information
              includes,  but is not limited to, (i)  technical  knowledge,
              information  and material  such as trade secrets, processes,
              formulas, data, know-how, improvements, inventions, computer
              programs,  drawings,  patents, and experimental and development
              work techniques, and (ii) marketing and other  information,  such
              as supplier lists,  customer or client  lists,  marketing  and
              business  plans,  business or technical  needs of customers,
              consultants,  licensees  or  suppliers  and their  methods  of
              doing business,  arrangements  with  customers,  consultants,
              licensees or suppliers, manuals and personnel  records or data.
              Confidential  Information also includes any information described
              above which the Company obtains from another party and which the
              Company treats as proprietary or designates as  confidential,
              whether or not owned or developed by the Company.  Notwithstanding
              the  foregoing,  any information  which is or becomes  available
              to the general public otherwise than by breach of this Section 11
              shall not constitute  Confidential  Information for purposes of
              this Agreement.

(b)           During the term of this Agreement and thereafter, Employee agrees
              to hold in confidence all Confidential Information and not to use
              such information for Employee's own benefit or to reveal, report,
              publish, disclose or transfer, directly or indirectly, any
              Confidential Information to any person or entity, or to utilize
              any Confidential Information for any purpose, except in the course
              of Employee's work for the Company.

(c)           Employee will abide by any and all security rules and regulations,
              whether formal or informal, that may from time to time be imposed
              by the Company for the protection of Confidential Information, and
              will inform the Company of any defects in, or improvements that
              could be made to, such rules and regulations.
<PAGE>

(d)           Employee will notify the Company in writing immediately upon
              receipt of any subpoena, notice to produce, or other compulsory
              order or process of any court of law or government agency if such
              document requires or may require disclosure or other transfer of
              Confidential Information.

(e)           Upon termination of employment, Employee will deliver to the
              Company any and all records and tangible property that contain
              Confidential Information that are in his possession or under his
              control.

12. COVENANT NOT TO COMPETE.

(a)           In consideration  for the Company entering into this Agreement and
              except as provided below, Employee covenants and agrees that
              during the Term and for a one (1) year period thereafter, Employee
              will not, without the express prior written consent of the
              Company, directly or indirectly, compete with the business of the
              Company anywhere within the United States of America. Employee
              will undertake no activities  that  may  lead  Employee  to
              compete  with  or to  acquire  rival, conflicting  or
              antagonistic  interests to those of the Company with respect to
              the  business of the Company,  whether  alone,  as a partner,  or
              as an officer, director, employee, independent contractor,
              consultant or shareholder holding 5% or more of the  outstanding
              voting  stock  of any  other  corporation,  or as a trustee,
              fiduciary  or other  representative of any other person or entity.
              Anything  herein to the  contrary  notwithstanding  and  except as
              provided  in Sections 12 (e), (f) and (g) below, the Company
              acknowledges and agrees that the  Employee has executed an
              Independent  Contractor  Agreement" ("IC Agreement") as
              an "Independent  Contractor" with the Company  effective as of
              December 19, 2002 and nothing  herein  contained  shall operate to
              restrict  the  Employee  from conducting the business of the
              Independent  Contractor (either as an independent
              contractor of the Company,  as an independent  contractor of
              another company, or as an independent  broker-dealer)  during,  or
              following the termination of this Agreement, or the IC Agreement,
              for any reason whatsoever,  in the tri-state New York City
              metropolitan  area and  Florida  or in any  other  state in which
              the Independent Contractor is doing business, or in the future
              does business,  under the IC Agreement as such  agreement may be
              amended or  supplemented  or replaced from time to time.  Except
              as provided in Sections 12 (e), (f) and (g) below, to the extent
              that the operation of the Independent  Contractor  whether or not
              the IC  Agreement  has  been  terminated,  should  at any  time be
              deemed  to be in competition or conflict with the  operations of
              the Company,  the Company hereby waives any such conflicts and any
              such competitive  activity shall not be deemed a violation of this
              Agreement.

<PAGE>

(b)           Except as provided in Sections  12 (e),  (f) and (g) of this
              Agreement,  during the Term and for a period of three (3) years
              after termination of employment,  Employee will not, directly or
              indirectly,  solicit or induce any other employee of the
              Company or any parent or affiliate to leave his or her
              employment,  or solicit or induce any  consultant or  independent
              contractor  to sever  that  person's  relationship  with the
              Company  or to  become an  employee  or  consultant  to any
              independent contractor or brokerage that the Employee is employed
              by or has an ownership interest in. Provided,  however,
              that in the event any provision of this  subparagraph  shall be in
              conflict with the provisions of the IC Agreement,  the
              provisions  of the IC Agreement  shall  prevail.  Furthermore,
              except as provided in Sections 12 (e), (f) and (g) below,
              upon  termination of this  Agreement and  termination of the IC
              Agreement,  nothing herein  contained  shall prohibit the
              Employee from  soliciting any other  employee or independent
              contractor who was employed or located at any branch office
              under the supervision of the Employee as an Independent
              Contractor, or JSM, pursuant to the IC Agreement.

(c)           If any court shall determine that the duration or geographical
              limit of any covenant contained in this Section 12 is
              unenforceable, it is the intention of the parties that covenant
              shall not thereby be terminated but shall be deemed amended to the
              extent required to render it valid and enforceable, such amendment
              to apply only in the jurisdiction of the court that has made such
              adjudication.

(d)           Employee acknowledges and agrees that the covenants contained in
              Sections 11 and 12 hereof are of the essence in this Agreement,
              that each of such covenants is reasonable and necessary to protect
              and preserve the interests, properties, and business of the
              Company, and that irreparable loss and damage will be suffered by
              the Company should Employee breach any of such covenants. Employee
              further represents and acknowledges that he shall not be precluded
              from gainful engagement in a satisfactory fashion by the
              enforcement of these provisions.

(e)           In the event there is a Change in Control and the Company
              exercises the purchase option ("Purchase Option") described
              Section 6 (c) to the Branch Agreement and Amendment to IC
              Agreement dated on even date herewith by and among the Company,
              Employee and JSM ("Branch Agreement"), the Employee and the
              Company agree as follows:

    (i) The Employee shall waive the right to receive any Severance and Benefits
        payments described herein;
    (ii) Section 12 (a) of this Agreement shall not be applicable to the
         Employee;
    (iii)Section 12 (b) of this Agreement shall be applicable to the Employee
         with respect to JSM, Independent Contractor and the Company except with
         respect to Ms. Andrea Boccafola and Mr. Brian Hageman.

(f)           In the event there is a Change in Control where the Company does
              not exercise the Purchase Option under the Branch Agreement and
              the Employee elects to receive Severance and Benefits payments
              described herein, then the Company and the Employee agree as
              follows:

<PAGE>

    (i)  The term of the IC  Agreement  shall not  terminate  due to a Change in
         Control as  provided  in Section 10 (c) of the Branch Agreement;
    (ii) Section 12 (a) of this Agreement shall be applicable
         for a term ending one (1) year from the later of the
         date this Agreement terminates or the date the IC
         Agreement terminates. Employee shall be permitted to
         own and operate JSM as the Independent Contractor.
   (iii) Section 12 (b) of this  Agreement  shall be  applicable  except with
         respect JSM  employees  or  employees of the  Independent Contractor.

(g)           In the event there is a Change in Control where the Company does
              not exercise the Purchase Option under the Branch Agreement and
              the Employee waives his right to receive Severance and Benefits
              payments described herein, then the Company and the Employee agree
              as follows:

   (i)   The term of the IC Agreement  shall not  terminated due to a Change in
         Control and as provided in Section 10 (c) of the Branch Agreement;
  (ii)   Section 12 (a) of this Agreement shall not be
         applicable and there shall be no prohibition
         whatsoever on Employee owning or operating JSM, as an
         independent contractor, as a broker dealer or
         otherwise.
  (iii)  Section 12 (b) of this  Agreement  shall be  applicable  except with
         respect JSM  employees  or  employees of the  Independent Contractor.

(h)           Anything herein to the contrary notwithstanding, in the event the
              employment of the Employee should be terminated under any
              circumstance that would constitute a Triggering Event under
              Subsections 5(a)(1) or 5(a)(3) of this Agreement and the Employee
              waives his right to receive Severance and Benefit payments
              described herein, the provisions of this Section 12 (a) shall not
              apply and Section 12 (b) shall only restrict Employee from
              soliciting employees of the Company.

         Any  reference in this Section 12 of the Agreement to an "employee of
              the Independent Contractor" shall be deemed to include anyone who
              is under the supervision and control of the Independent Contractor
              pursuant to the IC Agreement.

13. AVAILABILITY OF INJUNCTIVE RELIEF. Employee acknowledges and agrees that any
breach by him of the provisions of Sections 11 or 12 hereof will cause the
Company irreparable injury and damage for which it cannot be adequately
compensated in damages. Employee therefore expressly agrees that the Company,
subject to the provisions of Section 20 hereof providing for arbitration, shall
be entitled to seek injunctive and/or other equitable relief, on a temporary or
permanent basis to prevent any anticipatory or continuing breach of this
Agreement or any part hereof, and is secured as enforcement. Nothing herein
shall be construed as a waiver by the Company of any right it may have or
hereafter acquired to monetary damages by reason of any injury to its property,
business or reputation or otherwise arising out of any wrongful act or omission
of it.

<PAGE>

14.  SURVIVAL.  The  covenants,   agreements,   representations  and  warranties
contained  in or  made  pursuant  to this  Agreement  shall  survive  Employee's
termination  of  employment,  irrespective  of any  investigation  made by or on
behalf of any party.

15. MODIFICATION. This Agreement sets forth the entire understanding of the
parties With respect to the subject matter hereof, supersedes all existing
agreements between them concerning such subject matter, and may be modified only
by written instrument duly executed by each party.

16. NOTICES. Any notice required or permitted hereunder shall be deemed validly
given if delivered by hand, verified overnight delivery, or by first class,
certified mail to the following addresses (or to such other address as the
addressee shall notify in writing to the other party):

If to the Company:          vFinance Investments, Inc.
                            3010 N. Military Trail, Suite 300
                            Boca Raton, Florida 33431
                            Attention: CEO

If to Employee:             John S. Matthews
                            JSM Capital Holding Corp.
                            595 Madison Ave.
                            New York, N. Y. 10022

17. WAIVER. Any waiver by either party of a breach of any provision of this
Agreement shall not operate as or be construed to be a waiver of any other
breach of such provision or of any breach of any other provision of this
Agreement. The failure of a party to insist upon strict adherence to any term of
this Agreement on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. All waivers must be in writing.

18. BINDING EFFECT. The Company's rights and obligations under this Agreement
shall not be transferable by assignment or otherwise, and any attempt to do any
of the foregoing shall be void. The provisions of this Agreement shall be
binding upon the Employee and his heirs and personal representatives, and shall
be binding upon and inure to the benefit of the Company, its successors and
assigns.

19.  HEADINGS.  The headings in this  Agreement  are solely for  convenience  of
reference and shall be given no effect in the construction or  interpretation of
this Agreement.

<PAGE>

20. GOVERNING LAW - ARBITRATION. This Agreement is to be performed in the State
of Florida, and the validity, construction and enforcement of, and the remedies
under, this Agreement shall be governed in accordance with the laws of the State
of Florida, without giving effect to any choice of laws principles. Any
controversy, claim or counterclaim arising out of or in connection with this
Agreement, whether in contract, in tort or asserting rights created by Federal
or state statues or otherwise, shall be governed by the Code of Arbitration
Procedure of the NASD. Arbitration shall be conducted in New York City in
accordance with the Rules of the NASD, and judgment on the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof. The
arbitrators may grant any remedy or relief that they deem just and equitable
including, but not limited to, specific performance of a contract. Each party
irrevocably consents to subject matter and personal jurisdiction before the
NASD. The parties covenant that under no conditions will any of them file any
action at law against any other party or bring any claim in any forum other than
before the NASD; provided, however, that all parties hereto consent to the
jurisdiction of any court of competent jurisdiction to obtain any preliminary
relief, such as a restraining order, injunction, or any other immediate relief
sought, pending the determination of the arbitration proceeding.

     21.  ENTIRE  AGREEMENT.  This  writing  constitutes  the binding and entire
agreement of the parties  superseding and  extinguishing all prior agreements or
understandings  regarding the subject matter hereof,  and may not be modified or
amended without a written document executed by the parties hereto.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first hereinabove written.

EMPLOYER:
                                       vFinance, Inc.

                                    By:
                                       -----------------------------------------
                                       Leonard J. Sokolow, CEO & President

                                    EMPLOYEE:

                                    By:
                                        ----------------------------------------
                                       John S. Matthews

<PAGE>

                                   Schedule A
                             Incentive Compensation

     In the capacity of President, Retail Brokerage Division (i.e., "Division"),
     Employee will be entitled receive annual incentive compensation ("Bonus")
     equal to 30% of the "Net Income" and "Net Securities" of the Division once
     Net Income exceeds $125,000. If Employee's salary of $125,000 (or a portion
     of it) is already deducted at arriving at Net Income, such amount shall be
     added back for purposes of this calculation.

     "Net Income" is defined as revenues less all direct and variable expenses
     of the Division per the Company's standard financial reporting policy and
     procedures which includes but is not limited to budgeted (fixed annually)
     divisional and corporate overhead. For purposes of this calculation:

      1. The Company and Employee must agree on the allocated  budgeted
         divisional  and fixed  overhead  which gets fixed on an annual
         basis;

      2. In no event shall corporate overhead exceed 10% of revenues of the
         Division; and

      3. Bonuses of the executive officers of the Company shall be excluded from
         corporate overhead.

     "Net Securities" shall be defined as "Gross Securities (Stock, Warrants, or
     Options) received by the Company in a transaction less options due to
     finders, employees of the Division or allocable to the other divisions of
     the Company pursuant to the Incentive Compensation Grid.

     Incentive compensation based on Net Income will be estimated and paid
     quarterly based upon year to date financial results projected for the
     Company's fiscal year. The maximum amount that the employee will be paid in
     any quarter will be 70% of the annual projected incentive compensation. The
     final Bonus payment will be payable within thirty days of the filing the
     Company's Form 10-K with the Securities and Exchange Commission.

<PAGE>

                                   Schedule B

                             STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT is entered into as of January 1, 2003 by and between
John S. Matthews  ("Optionee") and vFinance,  Inc., a Delaware  corporation (the
"Corporation").

                              W I T N E S S E T H:

WHEREAS, Optionee and the Corporation have concurrently herewith entered into a
certain Employment Agreement (the "Employment Agreement"); and

WHEREAS, the Corporation desires to grant to Optionee the option to acquire
shares of common stock, $.01 par value, of the Corporation (the "Common Stock")
upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants
set forth herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, Optionee and the Corporation hereby agree as follows:

1. (a) GRANT OF THE OPTIONS. Subject to the terms and conditions of this
Agreement, the Corporation hereby grants to Optionee the right to purchase
(individually referred to as the "Option" or collectively referred to as the
"Options") from the Corporation Five Hundred Thousand (500,000) shares of the
Common Stock (the "Option Shares"), subject to the following vesting schedule,
at the purchase price equal to $0.20 per share for a five (5) year period
commencing on the date hereof:

     (i)   125,000 Option Shares shall vest immediately upon the date hereof;

     (ii)  125,000 Option Shares shall vest one (1) year from the date hereof;

     (iii) 125,000 Option Shares shall vest two (2) years from the date hereof;

     (iv)  125,000 Option Shares shall vest three (3) years from the date hereof

2. RIGHTS OF OPTIONEE. Optionee by virtue of holding the Options to purchase the
Option Shares shall not have any rights to any dividends to be distributed by
the Corporation to the shareholders or any other rights of a shareholder in the
Corporation with respect to any of the Option Shares until Optionee exercises
the Option to purchase the Option Shares pursuant to Section 5 of this
Agreement.

3. TRANSFERABILITY OF THE OPTIONS. The Options may not be assigned, transferred,
or otherwise disposed of, or pledged or hypothecated or in any way be subject to
execution, attachment or other process. Any assignment, transfer, pledge,
hypothecation or other disposition of the Options attempted contrary to the
provisions of this Agreement or any levy, execution, attachment or other process
attempted upon the Options will be null and void and without effect.

<PAGE>

4.  EXERCISE OF THE OPTIONS.  The Option to purchase the Option  Shares shall be
exercisable upon the terms and conditions hereinafter set forth:

Subject to the terms and conditions of this Agreement, the Option to purchase
the Option Shares shall be exercisable by Optionee upon delivery of notice to
the Corporation (the "Exercise Notice") in accordance with the procedure
prescribed in this Section 4. The Exercise Notice shall state that Optionee has
elected to exercise the Option or any portion thereof. The Option may be
exercised by the Optionee, in whole or in part, by the delivery of the Exercise
Notice to the office of the Corporation, and by payment to the Corporation of
the Purchase Price in cash or by wire transfer, for each share being purchased.
Upon the exercise of the Option, a certificate or certificates for the shares of
Common Stock so purchased, registered in the name of the holder, shall be
promptly delivered to the holder hereof within a reasonable time. The person in
whose name any certificate for shares of Common Stock is issued upon exercise of
the Option shall for all purposes be deemed to have become the holder of record
of such shares on the date on which the Exercise Notice was delivered and
payment of the Purchase Price was made, except that, if the date of such
surrender and payment is a date on which the stock transfer books of the
Corporation are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

5. ACCELERATED VESTING AND EXERCISE PERIOD.

(a) DEATH OR DISABILITY. In the event of Optionee's death or Disability while
employed with the Corporation prior to Optionee's vesting or exercise of all of
the Options, then all of the Options shall become immediately vested and
exercisable. For purposes hereof, "Disability" shall mean Optionee's failure to
perform his employment duties with the Company for a continuous three month
period, or an aggregate of four months during any six month period, as a result
of ANY illness or accident, as verified by at least two U.S. licensed medical
doctors reasonably acceptable to the Company.

(b) CESSATION OF EMPLOYMENT. Notwithstanding anything to the contrary contained
herein, in the event that Optionee ceases to be employed by the Corporation for
any reason other than Optionee's death, Disability, the occurrence of a
Triggering Event or termination by the Company without cause (as defined within
the Employment Agreement) (the date of Optionee's cessation of employment shall
be referred to as the "Cessation Date"), then all non-vested Options shall
expire and be forfeited on the Cessation Date. In the event that the Company
terminates Optionee's employment without cause, or upon a Triggering Event, then
all non-vested Options shall immediately vest as of the Cessation Date.

(c) CHANGE OF  CONTROL.  In the event of a "Change of Control" as defined in the
Employment Agreement, then all non-vested Options shall immediately vest.

<PAGE>

6. RESERVATION OF SHARES. The Corporation covenants and agrees that at all times
that this Stock Option Agreement shall be in effect it shall have authorized,
and reserved, Common Stock of the Corporation sufficient for the exercise of the
Options and the purchase of Common Stock by Optionee.

7. SUBSTITUTION OF THIS AGREEMENT UPON ADOPTION OF QUALIFIED STOCK OPTION PLAN.
It is possible that the Corporation will, within twelve (12) months from the
date of this Agreement, adopt a Qualified Stock Option Plan for members of its
senior executive management, including Optionee. In the event of such adoption,
the Corporation agrees upon written request from Optionee to amend this
Agreement so as to cancel all unvested option rights set forth herein, PROVIDED,
HOWEVER that the same economic terms (including numbers of share options,
vesting periods and price) remain the same with respect to Optionee, and are
granted to Optionee, pursuant to the terms of the adopted Qualified Stock Option
Plan. All rights existing as to vested Stock Options as set forth herein shall
remain in effect notwithstanding the adoption of a Qualified Stock Option Plan.

8. INVESTMENT. Optionee acknowledges that the Option Shares are not being
offered pursuant to a registration statement under the Securities Act of 1933,
as amended (the "Act"), or any other securities laws. Optionee acknowledges that
the Option Shares are being acquired for Optionee's own account for investment
purposes only and not with a view to, or for sale in connection with, any public
distribution thereof and will not sell, or offer to sell or otherwise dispose,
of any interest in the Option Shares acquired by Optionee in violation of the
Act. Optionee has had substantial experience in business and financial matters
and in making investments of the type contemplated by this Agreement, is capable
of evaluating the merits and risks of the purchase of the Option Shares and is
able to bear the economic risks of such investment.

9. REGISTRATION RIGHTS AND LIQUIDITY. Although there can be no assurance that
the Option Shares will be registered under the Act, that an exemption from such
registration will be available, or that there will be a market for the Option
Shares in the future, the Corporation agrees to use its best efforts to enable
and facilitate Optionee's sale or disposition of the Option Shares in compliance
with the Act at the earliest date reasonably practicable. Furthermore, Optionee
is hereby granted piggy back registration rights as described in "Exhibit A"
attached hereto and incorporated herein.

10. ADJUSTMENTS. In the event of a stock dividend, stock split, share
combination, recapitalization, merger, consolidation or reorganization of or by
the Corporation, the number or class of shares purchasable (and purchase price
per share) upon exercise of the Option immediately prior thereto shall be
adjusted so that Optionee shall be entitled to receive the kind and number of
shares or other securities which Optionee would have owned or have been entitled
to receive after the happening of any of the events described above, had the
Option been exercised immediately prior to the happening of any of such events
or any record date with respect thereto. Any adjustment made pursuant to this
Section shall become effective immediately after the effective date of such
events retroactive to the record date, if any, for such events.

11. NOTICES. Any notice required or permitted hereunder shall be deemed validly
given if delivered by hand, verified overnight delivery, or by first class,
certified mail to the following address of Optionee (or to such other address as
Optionee may notify in writing to Corporation):

<PAGE>

           If to Optionee:             John S. Matthews
                                       74 Millspring Road,
                                       Manhasset, New York 11030

           If to the Company:          vFinance, Inc.
                                       3010 N. Military Trail, Suite 300
                                       Boca Raton, Florida 33431
                                       Attention: President

12.  BENEFITS OF AGREEMENT.  This Agreement shall inure to the benefit and shall
be binding upon the  successors,  heirs,  legal  representatives  and  permitted
assigns of the parties hereto.

13. SEVERABILITY. In the event that any one or more provisions of this Agreement
shall be deemed to be illegal or unenforceable such illegality or
unenforceability shall not affect the validity and enforceability of the
remaining legal and enforceable provisions hereof, which shall be construed as
if such illegal or unenforceable provision or provisions had not been inserted.

14. GOVERNING LAW; VENUE. This Agreement will be covered and construed under the
laws of the State of Florida, without giving effect to rules governing conflicts
of law, with proper venue with respect to all disputes related to this Agreement
being Broward County, Florida.

15.   COUNTERPARTS.   This  Agreement  may  be  executed  in  two  (2)  or  more
counterparts,  each of  which  shall  be  deemed  an  original  but all of which
together shall constitute one and the same instrument.

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

                                         THE CORPORATION:

                                         VFINANCE, INC., a Delaware corporation

                                         By:
                                             -----------------------------------

                                        Title:
                                             -----------------------------------

                                        OPTIONEE:
                                             -----------------------------------
                                                John S. Matthews

<PAGE>

                                   EXHIBIT "A"

                               REGISTRATION RIGHTS

Capitalized terms used but not defined herein shall have the respective meanings
ascribed to such terms in the Option to which this Exhibit A is attached.

(a) PIGGY-BACK REGISTRATION RIGHTS. If at any time commencing after January 1,
2004 until the expiration of the Option (the "Registration Period"),
vFinance.com, Inc. (the "Company") proposes to register any of securities under
the Securities Act (other than registration of a stock option, stock purchase or
compensation or incentive plan or of stock issued or issuable pursuant to any
such plan, or dividend investment plan, a registration of stock proposed to be
issued in exchange for securities or assets of, or in connection with the merger
or consolidation with, another person or entity , or a registration of stock
proposed to be issued in exchange for securities of such other person or
entity), the Company shall give prompt written notice thereof to the Holder and,
upon the written request made within ten (10) days after the Holder and, upon
receipt of such notice, the Company shall use its best efforts to effect as part
of such registration the registration under the Securities Act of that number of
the Option shares ("Option Shares") which the Holder requests the Company to
register, provided that if the registration relates to a firm commitment,
underwritten public offering, the managing underwriter of the Company's public
offering, if any, shall be of the opinion that the inclusion in such
registration of such number of Option Shares will not interfere with the
successful marketing of all of the Company's securities being registered. If the
managing underwriter, if any, reasonably requests the Holder to reduce in whole
or in part the number of Option Shares sought or be registered by the Holder,
the Holder shall comply with the request of the managing underwriter. In any
underwritten offering, the Holder shall sell the Option Shares registered as
part of such underwritten offering to the underwriters of such offering on the
same terms and conditions as apply to the Company. In connection with any
registration pursuant to this Section (a), the Holder shall provide the Company
with such information regarding the Holder and the distribution of the Option
Shares as the Company and the managing underwriter shall reasonably request for
use in the registration statement relating to such offering. The Company shall
pay all costs and expenses of the Holder. The Company shall not be obliged to
effect registration under the Securities Act pursuant to this Section (a) on
more than one occasion; PROVIDED, HOWEVER, that this limitation shall not apply
if the number of shares requested to be registered by the Holder shall have been
reduced pursuant to the second sentence of this Section (a) unless and until the
occurrence of an occasion on which the shares requested by the Holder to be
registered have not been so reduced.

(b) GENERAL CONDITIONS.  In connection with each registration  effected pursuant
to Section (a), the Company and the Holder agree as follows:

<PAGE>

(i) INDEMNIFICATION OF HOLDER. The Company shall indemnify and hold harmless the
Holder against any and all losses, claims, damages, or liabilities to which the
Holder may become subject under the Securities Act, or any other statute or
common law, including any amount paid in settlement of any litigation, commenced
or threatened, if such settlement is effected with the written consent of the
Company, and to reimburse them for any legal or other expenses incurred by them
in connection with investigating any claims and defending any action insofar as
any such losses, claim, damages, liabilities or actions arise out of or are
based upon 1) any untrue statement or alleged untrue statement of a material
fact, contained in the registration statement relating to the sale of the Option
Shares, or any post-effective amendment thereof, or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, 2) any untrue statement
or alleged untrue statement of a material fact, contained in a preliminary
prospectus, if used prior to the effective date of such registration statement,
or contained in the prospectus (as amended or supplemented, if the Company shall
have filed with the SEC any amendment thereof or supplement thereto), if used
within the period during which the Company is required to keep the registration
statement to which the prospectus relates current pursuant to the terms hereof,
or the omission or alleged omission to state therein (if so used) the material
fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The indemnification
agreement contained in this agreement, however, shall not: 1) apply to such
losses, claims, damages, liabilities, or actions arising out of, or based upon,
any such untrue statement or alleged omission, if such statement or omission was
in reliance upon and in conformity with the information furnished in writing to
the Company by the Holder for use in the registration statement or any
preliminary prospectus or prospectus contained in the registration statement or
any amendment thereof or supplement thereto, or 2) inure to the benefit of any
underwriter from whom the person asserting any such losses, claims, damages,
expenses or liabilities purchased the securities which are the subject thereof
(or to the benefit of any person controlling such underwriter), if such
underwriter failed to send or give a copy of the prospectus to such person at or
prior to the written confirmation of the sale of such securities to such person.

(ii) INDEMNIFICATION OF THE COMPANY. The Holder and each underwriter of the
Option Shares to be registered (such party and such underwriters being referred
to severally in this subparagraph as the "Indemnifying Party") shall agree, in
the same manner and to the same extent as set forth in the preceding paragraph,
to indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of Section 15 of the Securities Act, its
directors and those officers of the Company who shall have signed such
registration statement, with respect to any statement in or omission from such
registration statement or any post-effective amendment thereof or any
preliminary prospectus (as amended or supplemented, if amended or supplemented
as aforesaid) contained in such registration statement, if such statement or
omission was made in reliance upon and in conformity with information furnished
in writing to the Company by such Indemnifying Party for use in such
registration statement or any preliminary prospectus or prospectus contained in
such registration statement or any amendment thereof or supplement thereto.

(iii) NOTICE OF INDEMNIFIABLE ACTION. Each indemnified party will, promptly
after the receipt of notice of the commencement of any action against such
indemnified party in respect of which indemnity may be sought from a party
hereto on account of an indemnity agreement contained in this Section, notify
the indemnifying party in writing of the commencement thereof. The omission of
any indemnified party so to notify an indemnifying party of any such action
shall relieve the indemnifying party from any liability in respect of such
action which it may have to such indemnified party on account of the indemnity
agreement contained in this Section, but shall not relieve the indemnifying
party from any other liability which it may have to such indemnified party.

<PAGE>

(iv) TERMINATION OF OBLIGATION. The Company shall not be required to file a
registration statement or to keep a registration statement effective if the
Option Shares could be publicly sold without registration under the Securities
Act.

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