Document:

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                                  EXHIBIT 10.16

                            EQUIPMENT LEASE AGREEMENT
                            -------------------------

         THIS AGREEMENT is made as of the ______ day of ______________,  200___,
between SPEAKING ROSES INTERNATIONAL,  INC., located at 404 Ironwood Drive; Salt
Lake  City,  Utah  84115   ("Licensor"),   and   _________________   located  at
___________________ ("Licensee").

                                   WITNESSETH:

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

         WHEREAS,  Licensee wishes to obtain a lease for the equipment needed to
produce  the  Licensed  Products  referred  to in a  contemporaneously  executed
Intellectual  Property  License  Agreement  ("IP  Agreement"),  the  general and
procedural provisions of which are deemed included within this Agreement and, in
the  event of any  confusion  or  conflict  between  the  provisions  of the two
agreements, shall be deemed to be controlling.

                                    AGREEMENT

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

1.       (a)      The term "Application Form" shall mean the  Equipment  Leasing
Application  Form attached to this  Agreement as Exhibit A. Licensor  shall have
the right to modify or amend  the  Application  Form from time to time,  and the
amended Application Form shall be attached hereto as Exhibit "A". Licensee shall
use the current form of the Application Form in complying with the terms of this
Agreement.

         (b)      The term "Designer  Package  Equipment" shall mean the Package
set forth on Exhibit B to this Agreement.

         (c)      The term  "Designer  Elite Package  Equipment"  shall mean the
Package set forth on Exhibit C to this Agreement.

<PAGE>

         (d)      The term  "Equipment"  shall  mean the  equipment,  devices or
apparatus  used  in  the  Embossing  Process,  including  the  Designer  Package
Equipment and/or the Designer Elite Package Equipment.

         (e)      The term "Owner's  Manual" means the manual prepared by or for
the benefit of the Licensor,  as amended from time to time, relating to the use,
operation, maintenance and storage of the Equipment.

2.       (a)      Subject  to  the  terms  and  conditions  of  this  Agreement,
Licensor  hereby leases to Licensee the Equipment  for its  manufacture,  use or
sale of Licensed  Products  hereunder  pursuant to the IP Agreement,  until such
time as both this Agreement and the IP Agreement expire or are terminated.

         (b)      It is understood and agreed that Licensee shall have the right
to utilize the Equipment only in the territory referred to in the IP Agreement.

         (c)      Licensee's  rights in and to the  Equipment  shall include the
right to sublease  Equipment  that Licensee has leased  pursuant to the terms of
this  Agreement  to  Sublicensees  pursuant  to  sublease  agreements  in a form
reasonably acceptable to Licensor, and the delivery by Licensee to Licensor of a
completed  Application Form with respect to each such sublease.  Any sublease by
Licensee  hereunder  shall  be  granted  only  pursuant  to a  written  sublease
agreement between Licensee and Sublicensee,  which shall be in a form acceptable
to Licensor and which shall obligate the Sublicensee to be bound by the terms of
this Agreement relative to Sublicensees.  Licensor shall not, however,  have any
duties or obligations to any Sublicensee under this Agreement.

         (d)      From and after the date hereof,  Licensee shall be responsible
for any loss,  theft of or damage to the  Equipment,  other than normal wear and
tear.

         (e)      The Equipment shall be located at the address set forth on the
Application  Form and shall not be removed from such location  without the prior
written consent of Licensor.

         (f)      Title to the  Equipment  shall  remain  with  Licensor  at all
times,  and  Licensee  shall at all times at its own expense  protect and defend
Licensor's  title  thereto  against all  claims,  liens and legal  processes  of
Licensee's  creditors or persons  claiming  through Licensee or any Sublicensee.
Licensee shall have no right, title or interest in or to the Equipment except as
expressly  set forth  herein.  The  Equipment  shall remain  personal  property,
notwithstanding the manner in which it may be affixed to any real property. Upon
request by  Licensor,  Licensee  shall  obtain and cause to be  recorded,  where
appropriate and pursuant to the Law of the Territory, at Licensee's own expense,
from each landlord, owner, mortgagee or any person having an encumbrance or lien
on property where the Equipment is located, a waiver of any lien, encumbrance or
interest which such person might have or hereafter  obtain or claim with respect
to all or any portion of the Equipment.  Licensee  shall notify  Licensor of any
requirement  under  the  Law of the  Territory  relating  to  such  recordation.
Licensee  agrees to execute  such  documents  as  Licensor  may deem  reasonably
necessary to protect  Licensor's  interest and title to the Equipment.  Licensee
shall otherwise take all action required to keep the Equipment free and clear of
all levies,  liens and encumbrances which result from any act or omission of the
Licensee.

                                       2
<PAGE>

         (g)      (i)      Licensee  shall  use  the  Equipment in a careful and
proper manner in conformity with (a) all statutes, rules, orders and regulations
of each governmental  authority having jurisdiction over the Licensee and/or the
Equipment and its use,  operation,  maintenance  or storage  thereof and (b) all
policies of insurance held by Licensee relating to the Equipment and/or its use.

                  (ii)     Licensee  shall not use the  Equipment  in any manner
that would impair the applicability of any  manufacturer's  warranties or render
the  Equipment  unfit for its  originally  intended use, nor permit anyone other
than  authorized,  properly  trained,  and  competent  personnel  to operate the
Equipment.

                  (iii)    Licensee shall not, without  Licensor's prior written
consent, affix or install any accessory,  equipment, device, advertising matter,
or  insignia  on or to the  Equipment.  All  replacements,  repairs,  parts  and
supplies  installed or affixed on or to the  Equipment  shall  thereupon  become
Licensor's property, and Licensee shall arrange that there be delivered promptly
to Licensor,  upon  Licensor's  request,  all instruments or documents as may be
necessary to evidence Licensor's original and free, clear and unencumbered title
thereto and ownership thereof.

                  (iv)     Licensee  shall not use the Equipment for any purpose
other than for the production of Licensed  Products using the Embossing  Process
under the License and shall use the  Equipment  only in the manner  specified in
the Owner's Manual.

         (h)      Licensor  guarantees the durability of all metallic  Equipment
hardware for a period of two (2) years and accepts responsibility for the repair
or  replacement  thereof for such period of time,  as long as Licensee  uses the
Equipment in the manner set forth in Section 3.5 above.

         (i)      Licensor  shall have the right to mark or direct  Licensee  to
mark  the  Equipment  in a  distinct  and  conspicuous  manner  with the name of
Licensor  followed by the words "Owner and Lessor," or other  appropriate  words
designated by Licensor. Licensee shall not alter, deface, cover or remove any of
Licensor's  ownership  identification  plates or markings on the Equipment,  and
upon Licensor's request, Licensor shall affix or re-affix such identification.

         (j)      Upon  termination  or  expiration of this  Agreement,  or upon
Licensee's  default  hereunder,  Licensee  shall,  at its own cost and  expense,
return the  Equipment,  including  any  attachments,  additions  or  accessories
thereto,  unencumbered along with all documentation and manuals related thereto,
including the Owners Manual,  to Licensor at an address specified by Licensor in
the same condition as received, less normal wear and tear using an international
carrier acceptable to Licensor.  Licensee shall, at its own expense and using an
insurer  acceptable to Licensor,  insure the Equipment for its full value during
the return.

         (k)      In connection with the lease of the Equipment from Licensor to
Licensee,  Licensor  and  Licensee  agree  to  enter  into a  separate  security
agreement with respect to the leased  Equipment,  and Licensee  shall  cooperate
with  Licensor  to  facilitate  the filing of a  financing  statement  (or other
instrument under the law of the Territory  notifying third parties of Licensor's
priority  security  interest  in  the  Equipment)  with  appropriate  government
officials.

                                       3
<PAGE>

3.       (a)      (i)      Concurrently  with  the execution of this  Agreement,
Licensee shall submit a completed Application Form to Licensor for the Equipment
to be  initially  leased by  Licensee.  Upon any  sublease  by  Licensee  of any
Equipment to a  Sublicensee,  Licensee  shall  submit to Licensor an  additional
completed Application Form with respect to the Equipment to be subleased to such
Sublicensee.

                  (ii)     For  each  piece  of  equipment  leased  by  Licensee
hereunder, during the term of this Agreement and any renewal of the term of this
Agreement (or, in the case of Licensee's sublease of Equipment,  during the term
of such  sublease  and any renewal  thereof),  Licensee  shall pay to Licensor a
monthly  equipment  fee(s) as listed on Addendum A in consideration of the lease
of the Equipment  from  Licensor.  Licensee shall also pay Licensor the costs of
shipping the Designer  Package  Equipment to Licensee by  international  carrier
acceptable to Licensor, fully insured.

         (b)      Licensee agrees to obtain,  at its sole cost and expense,  all
necessary customs, import and other governmental authorizations and approvals in
the Territory  relating to the Equipment and this Agreement  (including  without
limitation  foreign  exchange,  foreign  investment  and transfer of  technology
approvals and notifications, if applicable).  Licensor agrees to cooperate fully
with  Licensee  in  obtaining  any  necessary   authorizations   and  approvals.
Licensor's  obligations  under this  Agreement are  specifically  subject to the
grant and  effectiveness  of all such  necessary  authorizations  and approvals.
Notwithstanding  any other provisions of this Agreement,  Licensee agrees not to
export from the Territory or otherwise  make the Licensed  Products or Equipment
available  to any third party for use outside of the  Territory,  or to make the
Licensed Products or Equipment available to any third party within the Territory
if Licensee knows, or has reasonable  grounds to suspect,  that such third party
is planning to use or  otherwise  transfer  the  Licensed  Products or Equipment
outside of the Territory in violation of such export laws, regulations or orders
or the terms of this Agreement.

         (c)      Licensor shall have the right to require Licensee to execute a
personal  guarantee of Licensee's  obligations  hereunder.  All equipment leases
will have a personal  guarantee.  The other obligations under this contract will
be guaranteed by the corporation executing this agreement.

4.       (a)      Licensor will provide Licensee,  at Licensee's  expense,  with
technical  support by telephone  Monday through  Saturday from 7:00 a.m. to 5:00
p.m. (United States Mountain Time).

         (b)      Licensee shall have the option of purchasing additional design
plates  from  Licensor  and shall  have  access  to  Licensor's  graphic  design
department  in  connection  with the  development  and  purchase  of such design
plates.

         (c)      Licensor shall provide Licensee with an Owner's Manual,  which
shall be included with the Equipment and returned upon expiration or termination
of this Agreement.

5.       The term of this Agreement  shall be co-terminus  with the IP Agreement
and be effective so long as the IP Agreement is effective.

                                       4
<PAGE>

         IN WITNESS WHEREOF, Licensor and Licensee have caused this Area License
and Equipment Lease Agreement to be executed by their duly authorized  officers,
owners or agents on the respective dates set forth below.

LICENSOR:                                   LICENSEE:
SPEAKING ROSES INTERNATIONAL, INC.

By:                                         By:
    -------------------------------             -------------------------------
Title:                                      Title:
       ----------------------------                ----------------------------
Date:                                       Date:
      -----------------------------               -----------------------------

                                       5
<PAGE>

                                    EXHIBIT A
                                APPLICATION FORM

                                       6
<PAGE>

                                    EXHIBIT B
                           DESIGNER PACKAGE EQUIPMENT

PACKAGE

License Agreement                              24 Months
Customer Service / (866) 400 ROSE (7673)       Yes
Equipment Warranty                             Life Time(*)
Supply Department                              8am-5pm
Technical Support in Place                     Available

* Metal Parts

EQUIPMENT

Machine and parts                              1
Gold Ink                                       1 Kg
Bronze Ink                                     1 Kg
Ink Thinner                                    1 Liter
Phrases                                        76 Most Popular
Training Manual                                Included
Training Video                                 Included
Printing Kit (Misc. Items)                     Included

(*) Metal Parts

                                       7
<PAGE>

                                    EXHIBIT C
                        DESIGNER ELITE PACKAGE EQUIPMENT

Engraver Machine                      1
Blank Plates                          50

                                       8
<PAGE>

                                   Addendum A

SHIPPING INFORMATION                                               date:
--------------------------------------------------------------------------------

Name:  _____________________________________  Company: _________________________

Address:  ____________________________  City:  ___________________  State:  ____

Country:  __________________  Zip:  __________________  Phone:  ________________

Fax:  __________________________  E-mail:  _____________________________________

CONTACT NAME FROM THE COMPANY
--------------------------------------------------------------------------------

Name:  ____________________________________  Position:  ________________________

MACHINE(S) THAT LICENSEE IS REQUESTING
--------------------------------------------------------------------------------
|_|     ___ Embossing Machine
               $995 Initial Fee (ea.)
               $1 at end of lease

|_|     ___ Photographic (Basic) Plate Making Machine
               $199 Initial Fee (ea.)
               $50 monthly two-year lease (ea.)

TOTAL CHARGES
--------------------------------------------------------------------------------

Initial Payment: $_______ + Training Fee: $_______ + Shipping Charges: $_______

Exclusive Fee: $_________ = TOTAL:  $ __________

Payment Method:  Initial _________  Monthly _________

                                       9
<PAGE>

The undersigned  hereby agrees to abide by all terms and conditions set forth in
the Area License  Agreement  and  Addendums.  All  equipment is under a two-year
lease  referred to in section 3 of the  document.  None of our  equipment is for
sale and must be leased so that Speaking Roses International, Inc. retains title
and control of all equipment.  The  undersigned  understands it will be invoiced
for said equipment on monthly basis.

_________________________________________          _____________________________
Area Licensee                                      Date

_________________________________________          _____________________________
Speaking Roses International, Inc.                 Date

                                       10

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                                  EXHIBIT 10.17

                                MODIFICATION AND
                             RESTRUCTURING AGREEMENT

         THIS MODIFICATION AND RESTRUCTURING AGREEMENT (this "Agreement") is
effective as of the 9th day of May, 2006, by and between MICHAEL GLAUSER, an
individual ("Glauser"), BUSINESS RETAIL GROUP, LLC, a Utah limited liability
company owned and/or controlled by Glauser ("BRG"), SPEAKING ROSES
INTERNATIONAL, INC., a Utah corporation ("SRI"), and SPEAKING ROSES DEVELOPMENT
CORPORATION, a Utah corporation and a wholly-owned subsidiary of SRI ("SRDC").
Glauser, BRG, SRI and SRDC are collectively referenced to herein as the
"Parties", and each may individually be referred to herein as a "Party".

                                    RECITALS
                                    --------

         A.       SRI and Glauser are parties to that certain Development and
Employment Agreement dated as of June 1, 2005 (the "Development Agreement"),
pursuant to which Glauser agreed (i) to act as an area development agent on
behalf of SRI and its affiliates for the development of franchised operations
throughout the State of Utah and in Clark County, Nevada (the "Territory") using
a comprehensive retail floral business operating system (the "System"), and (ii)
to provide certain services to SRI and SRI's affiliates as an employee of SRI.

         B.       In furtherance of Glauser's rights under the Development
Agreement, Glauser caused BRG to become a franchisee of SRDC (which holds the
exclusive right to franchise the System) pursuant to the terms of SRDC's
standard franchise agreement dated October 26, 2005 (the "Franchise Agreement").

         C.       BRG's business operations under the System (the "Glauser
Franchise") are operated from an approximately 1,300 square foot leased
store-front located at 2104 South 700 East, Salt Lake City, Utah (the
"Premises").

         D.       The parties desire to amend certain terms and conditions of
the Development Agreement and to terminate the Franchise Agreement, by entering
into this Agreement.

                                    AGREEMENT
                                    ---------

         NOW, THEREFORE, in consideration of the foregoing recitals and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

         1.       Amendments Relating to Employment Relationship. The term of
the employment relationship between SRI and Glauser described in Section 1 of
the Development Agreement is hereby amended to provide for an extension of that
term from June 1, 2006, through and including June 30, 2007, and shall continue
thereafter as mutually agreed upon by SRI and Glauser. Glauser's salary and

<PAGE>

benefits, as described in Section 1.1 of the Development Agreement, shall remain
unchanged through the extended term and Glauser shall be entitled to receive the
benefits generally provided to similarly situated executives of SRI; provided,
however, that SRI may terminate Glauser's employment prior to the expiration of
the extended term if: (i) Glauser fails to perform his duties under Section 2 of
the Development Agreement; (ii) Glauser is guilty of willful misconduct (as that
action is defined and determined by SRI's Board of Directors in its sole
discretion); (iii) Glauser is guilty of fraud, misappropriation, embezzlement or
other acts of unlawful conduct or criminal conduct involving moral turpitude;
(iv) Glauser willfully and repeatedly fails to comply with a lawful written
direction of SRI's Board of Directors; or (v) Glauser is absent from his duties
for a continued period, where not excused by illness or disability.

         2.       Purchase of Area Development Rights. Glauser's rights under
the provisions of Section 3 of the Development Agreement (the "Development
Rights") are hereby purchased by SRDC, and, except as otherwise specifically set
forth herein, Glauser hereby relinquishes, disclaims and waives any rights in
and to the Development Rights and any consideration that would otherwise accrue
to him under the terms of the Development Rights, whether before or after the
date hereof.

                  (a)      Associated Foods Rights. SRI and Glauser hereby
acknowledge that, as a result of the purchase of the Development Rights, Glauser
has relinquished, waived and disclaimed any right to any contracts, negotiations
or other arrangements to provide floral services to or for Associated Foods,
Inc. (the "Associated Food Rights")

                  (b)      Associated Foods Rights Management Obligation.
Glauser shall act as manager on behalf of SRI (or its designee affiliate) of any
point of sale locations arising from the Associated Foods Rights. Glauser's
management obligations with respect to the Associated Foods Rights shall be
deemed part of Glauser's employment obligations, as set forth in Section 2 of
the Development Agreement (which section is hereby amended and modified to
provide for such management obligations), and Glauser shall not be entitled to,
and hereby waives, any additional consideration arising from such management
obligations, either under the purchased Development Rights, or otherwise.

         3.       Termination of BRG Relationship. Subject to the consummation
of the Purchase, as described in Section 4 below, and pursuant to the provisions
of, inter alia, Section 24 of the Franchise Agreement, upon the closing of the
Purchase, the Franchise Agreement shall be deemed terminated, and all of the
rights, preferences, privileges, duties and obligations of SRDC and Glauser
under the Franchise Agreement (other than those obligations and duties which, by
the terms of the Franchise Agreement, survive the termination of the Franchise
Agreement) shall terminate.

                  (a)      Waiver of Release Obligation. BRG and Glauser hereby
acknowledge that, pursuant to the provisions of Section 18.12 of the Franchise
Agreement, they are required to execute such documents, instruments and
agreements as SRDC may reasonably request relating to the termination of the
Franchise Agreement, and that such documents, instruments and agreements may
include releases by BRG and Glauser of any and all claims against SRDC and its
affiliates, including SRI relating to the Franchise Agreement. In further
reliance upon Glauser's and BRG's representations to SRDC regarding the lack of

                                        2
<PAGE>

any knowledge of BRG or Glauser of any claims against SRDC or its affiliates
arising under the Franchise Agreement, and in reliance upon the anticipated
continuing relationship between and among SRI, SRDC and Glauser, SRDC (on behalf
of itself and its affiliates, including SRI) hereby waives any requirement for
the execution by Glauser and/or the BRG of such releases at the closing of the
Purchase.

                  (b)      Limitations on Waiver. The waiver set forth in
Section 3(a) shall be deemed to be a waiver by SRI under the provisions of
Section 18.12 of the Franchise Agreement only as of the date of closing of the
Purchase, and shall not prohibit, limit or otherwise modify SRDC's right to
request such releases at a later date.

         4.       The Purchase. On or before the 1st of June 2006, SRDC, or its
assignee (the "Purchaser"), shall acquire from BRG all of BRG's right, title and
interest in and to the business and assets comprising the operations of the
Franchise, including the BRG's interest in all assets, inventory, accounts
receivable, the lease for the premises (which, in Purchaser's sole discretion,
shall be in the form of either a sublease or assignment of BRG's rights in the
lease to the Premises), contracts and all other assets comprising the business
operations of the Franchise (the "Purchased Assets") in exchange for the payment
by Purchaser of the sum of (i) One Hundred Thirty-Five Thousand Dollars
($135,000), plus (ii) the difference between Forty Thousand Dollars ($40,000)
and the amount contained in the operating account of BRG on May 31, 2006, (less
any amounts owing SRDC by BRG pursuant to the Franchise Agreement or other
agreements as of the date hereof, plus any amounts owing to BRG by SRDC pursuant
to the Franchise Agreement, other agreements, or the employment relationship
between SRI and Glauser, as said amounts are set forth in Exhibit "A"), plus
(iii) the assumption by Purchaser of the liabilities set forth on Exhibit "B"
hereto relating to the continuing operation of such assets (the "Purchase").

                  (a)      Terms of Purchase. As of the closing of the Purchase,
BRG represents and warrants to Purchaser, with the understanding the Purchaser
is relying on the same and entering into this Agreement with respect to the
Purchase as follows:

                           (i)      BRG has taken all actions required by law,
                  or otherwise, to authorize the execution, delivery and
                  performance of this Agreement with respect to the Purchase;

                           (ii)     The consummation of the transactions
                  contemplated by the Purchase and the compliance by the BRG
                  with its obligations to effect the Purchase will not, with or
                  without giving of notice or the lapse of time, or both,
                  conflict with or result in a breach of any agreement to which
                  BRG is a party or by which it is bound relating to the assets
                  to be so acquired, or result in the creation of any lien or
                  charge on such assets, or the termination of, or give any
                  contracting party the right to terminate, any agreements
                  affecting those assets;

                           (iii)    The sale of the assets pursuant to the terms
                  of the Purchase do not require the consent or approval of any
                  third party;

                           (iv)     At the closing of the Purchase, BRG will
                  deliver to the Purchaser good and marketable title to the
                  assets so acquired, free and clear of all liens, taxes,

                                       3
<PAGE>

                  mortgages, security interests, charges, demands, encumbrances,
                  exceptions or adverse claims. At such closing, all of the
                  assets will be located at the Premises and will be free from
                  all defects or damage and in good operating condition, having
                  been acquired and maintained by BRG in accordance with normal
                  and good business practices. The accounts receivable portion
                  of the assets arose in the ordinary course of the conduct of
                  the BRG's business, are valid and enforceable, subject to no
                  valid defense or offset, and can be collected in their full
                  amount;

                           (v)      There is no pending or threatened action,
                  claim, proceeding or investigation against or relating to BRG,
                  the assets being sold pursuant to the Purchase or the
                  transactions being contemplated by the Purchase;

                           (vi)     Purchaser will not be responsible for any
                  fee or commission payable to any person acting on behalf of or
                  for BRG in connection with the transactions contemplated by
                  the Purchase; and

                           (vii)    The assets that are the subject of the
                  Purchase comprise all of the assets, materials, rights,
                  contracts (other than the Franchise Agreement) and
                  relationships used by BRG in the conduct of the Franchise
                  business under the System as of the date of the closing of the
                  Purchase.

                  (b)      Actions Pending Purchase. Pending of the Closing of
the Purchase, BRG and the Purchaser agree to cooperate to satisfy the following
conditions precedent to such closing:

                           (i)      The absence of any material adverse changes
                  in the number, type, term or condition (financial or
                  otherwise) of the assets that are the subject of the Purchase,
                  or make up or condition of such assets between the date of
                  this Agreement and the closing of the Purchase, and the
                  absence of any material misrepresentations of BRG under this
                  Section 4 relating to the Purchase.

                           (ii)     Between the date of this Agreement and the
                  closing of the Purchase, BRG not entering into any agreements
                  or contracts which would materially and adversely affect such
                  assets or their value;

                           (iii)    No order of any court or administrative or
                  regulatory body restraining, enjoining or otherwise preventing
                  the consummation of the Purchase or the sale of the assets
                  subject to the terms of the Purchase;

                           (iv)     BRG not incurring any obligations or
                  liabilities (contingent or otherwise) or any brokerage or
                  finder's fee or agent's commission or other similar payments
                  in connection with the Purchase for which Purchaser will have
                  any liability;

                           (v)      BRG conducting the business in its ordinary
                  course, consistent with past practice (including, in
                  compliance with the terms of the Franchise Agreement) and not
                  entering into any negotiations or binding commitments or

                                       4
<PAGE>

                  agreements with any other person or entity regarding the sale
                  of such assets (the effect of which would materially and
                  adversely affect the Purchaser's interest in acquiring the
                  assets pursuant to the Purchase), or the sale by the BRG or
                  other disposition or encumbrance of any of the assets to any
                  person except for the sale of the portions of the assets
                  constituting inventory in the ordinary and normal course of
                  business and consistent with past practice. BRG shall not
                  engage any special activities which promote the sales of the
                  inventory of the business on highly discounted terms or
                  otherwise change the sales price of the inventory of the
                  business, or discount or otherwise change its collection
                  practices with respect to its accounts receivable, or violate,
                  amend or otherwise change in any way the terms of the lease
                  for the Premises or commence a lawsuit relating to or
                  involving the assets, other than for routine collection of
                  accounts receivable or for breach of this Agreement relating
                  to the Purchase.

                  (c)      Purchase Price. Unless otherwise agreed to by BRG and
Purchaser, the cash portion of the purchase price for the Purchase shall be paid
at the closing of the transactions contemplated by this Section 4.

         5.       Consideration. In consideration of the purchase of the
Development Rights under Section 2 above, SRDC shall pay to Glauser the
following:

                  (a)      Warrant. SRI shall issue to Glauser a warrant to
acquire one hundred fifty thousand common shares of SRI at an exercise price of
seventy-five cents ($.75) per share, which warrant shall vest on the first
anniversary of the date hereof and shall expire on the tenth anniversary of the
date hereof. The warrant, when prepared, shall be attached hereto as Exhibit
"C."

                  (b)      Area Development Payments. Upon the sale by SRDC of
the area developments rights with respect to Clark County, Nevada, and Beaver,
Emery, Garfield, Grand, Iron, Kane, Millard, Piute, San Juan, Sevier, Washington
and Wayne Counties, Utah (the "Retained County Rights"), SRDC shall pay BRG
fifteen thousand dollars ($15,000) in cash or other immediately available funds,
and shall issue to BRG a promissory note in the amount of $60,000 (the "Note").
The Note shall be due and payable on the first anniversary of the date thereof;
provided, however, that SRDC shall pay to BRG pursuant to the Note an amount
equal to ten percent (10%) of the proceeds received by SRDC pursuant to the sale
of area development rights during the period commencing on the date of the Note
through and including the first anniversary of the date of the Note (as and when
received by SRDC and following the lapse of any periods during which SRDC's
receipt of those amounts is restricted, including as a result of SRDC's
obligation to comply with certain franchising requirements).

                  (c)      Appointment as Designated Trainer. SRDC shall appoint
BRG, for a period of five years from the date hereof (subject to termination
provisions to be hereafter mutually agreed upon by BRG and SRDC), as its
exclusive training provider under the System, and BRG shall be entitled to
receive (either directly from a prospective franchisee or license under the
System or from SRDC, as determined by the terms of the Franchise Agreement or
License Agreement for the prospective party in question) ninety percent (90%) of
the training fees payable by such prospective franchisee, minus all costs
incurred by SRDC pursuant to its obligations under this Section 5(c). BRG shall
not cause such services to be performed by any person other than BRG or Glauser,

                                       5
<PAGE>

whether by subcontract or otherwise. BRG shall be entitled to use SRDC's
facilities for such training, free of cost. All training materials used,
developed or employed by Glauser in such training shall be deemed the property
of SRDC and BRG shall, at SRDC's request, execute such documents or conveyances
as shall be appropriate in SRDC's opinion to vest title in such materials in
SRDC. Any amounts to be paid by SRDC to BRG under this Section 5(c) shall be due
on the tenth (10th) business day following their receipt by SRDC.

                  (d)      SRI Option. SRI will maintain and provide to Glauser
periodic grants under equity incentive plans providing for stock option grants
(and that may provide for restricted stock, stock appreciation rights and other
equity-based awards) on terms and conditions at least as favorable in all
respects as SRI's historical practice. Glauser will participate in those plans
on a basis appropriate for his position and at least equivalent to peer
executives in SRII.

         6.       Payment Review Rights. Concurrently with the delivery of any
payment to Glauser under the provisions of Section 5(a) or 5(b), SRDC shall
deliver to Glauser a report showing the basis for the calculation of such
payment. Glauser shall have the right, at his sole cost and expense, to review
SRDC's books and records to verify the accuracy of any such reports. If any such
review shows a deficiency in such payments (or if SRDC fails to timely make a
payment in accordance with the provisions of Sections 5(a) or 5(b)), interest
shall accrue on the unpaid amount from the due date thereof and until its
payment date at the prime rate (as determined by reference to the Wall Street
Journal (Western Edition)) on the date of the application of the interest rate
to the unpaid portion, plus two percent (2%).

         7.       Utah Area Purchase Option. Upon the occurrence of the Purchase
Event described below, BRG shall have the right, but not the obligation, to
acquire from SRDC the development rights for the System for the State of Utah to
the extent not theretofore sold by SRDC to an unaffiliated third party (the
"Utah Rights"). The Utah Rights shall be limited to the right to employ business
operations similar to the operations conducted by a Franchise operator under the
System but shall include the right to utilize the Proprietary Marks, as
described in the Franchise Agreement. Upon any acquisition by BRG of the Utah
Rights, SRDC shall terminate its development activities for franchises or
licenses within the State of Utah (provided, however, that SRDC shall not, after
BRG's acquisition of the Utah Rights, be prohibited from taking any action with
respect to the sale of embossed floral products within the State of Utah as is
permitted under SRDC's franchise or license agreements (as then in effect),
including with respect to National Accounts and Alternative Sales, as those
terms are defined in the franchise and license agreements).

                  (a)      Rights are Non-Exclusive. BRG acknowledges that the
Utah Rights shall be subject to the rights of any then-existing rights of
franchisees or licensees of SRDC within the State of Utah, including with
respect to the Proprietary Marks and/or the System, and that the use of the
Proprietary Marks and the System may not be exclusive to BRG. The purchase price
for the Utah Rights shall be equal to the product of three (3) multiplied by
EBITDA, as hereinafter defined, which shall be payable by BRG in cash at the
closing of the purchase of the Utah Rights unless otherwise agreed to by SRDC.
As used herein, "EBIDTA" means the net income of SRDC attributable to the Utah
Rights during the most recent twelve month period preceding the date of
calculation, plus the sum (without duplication) of any provision made by SRDC
for the payment of taxes attributable to the Utah Rights with respect to such

                                       6
<PAGE>

period, depreciation and amortization attributable to the Utah Rights recognized
by SRDC, any interest expensed by SRCD attributable to the Utah Rights, and any
extraordinary, non-operating or non-cash loss or expenses paid or incurred by
SRDC attributable to the Utah Rights.

                  (b)      Purchase Event. For purposes of this Section 7, the
term "Purchase Events" shall mean the occurrence of SRDC becoming a debtor in a
proceeding under the U.S. Bankruptcy Code, which proceeding is not opposed by
SRCD or is not extinguished within sixty (60) days of its filing, or SRDC being
adjudicated bankrupt, or if a bill in equity or other proceeding for the
appointment of a receiver of SRDC or other custodian for SRDC's business or
assets is filed and consented to by SRDC or approved by any court of competent
jurisdiction, or if SRDC dissolves and its assets and operations are not assumed
by an SRDC affiliate.

                  (c)      Election and Closing. Glauser may exercise the
purchase right granted under this Section 7 by providing notice of such election
to SRDC, in writing, and in accordance with the provisions for notice set forth
below. If Glauser elects to exercise the purchase rights, the closing of that
purchase shall occur within sixty (60) days after SRDC receives the notice of
that election or, if longer, on such timetable as is contained in the notice
from Glauser to SRDC regarding the election (but in no such event shall the
closing occur more than ninety (90) days following SRDC's receipt of notice).

                  (d)      Purchase Period. The purchase right described in this
Section 7 may be exercised by Glauser only during the period beginning as of the
date of his receipt from SRDC of notice of the occurrence of a Purchase Event
and for the ninety (90) day period thereafter ("Purchase Period"). SRDC shall
provide prompt notice to Glauser of, and upon, the occurrence of any Purchase
Event.

         8.       Notices. Any and all notices required or permitted under this
Agreement shall be in writing and shall be (i) personally delivered, (ii) sent
by registered mail, (iii) sent by a recognized overnight delivery service, or
(iv) delivered by other means which affords the sender evidence of delivery, or
of rejected delivery, to the respective party at the addresses shown on the
signature lines of this Agreement. Any Party may designate a different address
for notice hereunder by written notice to the other Parties. Any notice by a
means which affords the sender evidence of delivery, or rejected delivery, shall
be deemed to have been given at the date and time of receipt or rejected
delivery.

         9.       Entire Agreement and Amendment. This Agreement and the
documents referred to herein constitute the entire, full, and complete agreement
among the Parties concerning the subject matter hereof, and supersede all prior
agreements. No other representations have the Parties to execute this Agreement.
No amendment, change, or variance from this Agreement shall be binding on any
Party unless mutually agreed to by the Parties affected by such amendments,
changes or variance and executed by their authorized officers or agents in
writing.

         10.      Ratification. SRI and Glauser hereby ratify and affirm the
Development Agreement, as modified by this Agreement.

                                       7
<PAGE>

         11.      Severability And Construction.

                  (a)      Severability. If any of the provisions of this
Agreement may be construed in more than one way, one of which would render the
provision illegal or otherwise voidable or unenforceable, such provision shall
have the meaning which renders it valid and enforceable. The language of all
provisions of this Agreement shall be construed according to its fair meaning
and not strictly against any party. If any court or other government authority
shall determine any provision in this Agreement is not enforceable as written,
the parties agree that the provision shall be amended so that it is enforceable
to the fullest extent permissible under the laws and public policies of the
jurisdiction in which enforcement is sought and affords the parties the same
basic rights and obligations and has the same economic effect. If any provision
in this Agreement is held invalid or otherwise unenforceable by any court or
other government authority or in any arbitration proceeding, such findings shall
not invalidate the remainder of Agreement.

                  (b)      Stricken Provisions. Each Party expressly agrees to
be bound by any promise or covenant imposing the maximum duty permitted by law
which is subsumed within the terms of any provision hereof, as though it were
separately articulated in and made a part of this Agreement, that may result
from striking from any of the provisions hereof any portion or portions which a
court or arbitrator may hold to be unenforceable in a final decision to which
the Party is a party, or from reducing the scope of any promise or covenant to
the extent required to comply with such a court order.

                  (c)      Captions. All captions in this Agreement are intended
solely for the convenience of the parties, and none shall be deemed to affect
the meaning or construction of any provision hereof.

                  (d)      Survival. All provisions of this Agreement which, by
their terms or intent, are designed to survive the expiration or termination of
this Agreement, shall so survive the expiration and/or termination of this
Agreement.

         12.      Applicable Law And Dispute Resolution.

                  (a)      Applicable Law. This Agreement shall be interpreted
and construed under the laws of the State of Utah.

                  (b)      Mediation. All controversies, disputes, and claims
arising out of or related to this Agreement (including, but not limited to, any
claim that the Agreement or any of its provisions is invalid, illegal, or
otherwise voidable or void and any claim relating to events before the Agreement
was executed) shall first be subject to non-binding mediation. All
controversies, disputes, and claims not resolved by, or not subject to, the
mediation process shall be resolved in accordance with the arbitration
provisions set forth below. The parties acknowledge and agree that the following
terms, conditions and limitations shall apply to mediation under this Agreement:

                           (i)      If a Party is more than forty five (45) days
                  past due in any payment to the other, the party to whom
                  payment is due shall be free to commence or to pursue
                  litigation at any time without engaging in the mediation
                  process. Mediation shall not be required with respect to any
                  claim or controversy that involves: (1) the ownership,
                  validity, or use of the Proprietary Marks or the Technology

                                       8
<PAGE>

                  (as defined in the Franchise Agreement); (2) any action
                  concerning the enforcement of the covenants set forth in this
                  Agreement; or (3) mediation is not intended to alter or
                  suspend the rights or obligations of the parties under this
                  Agreement or to determine the validity or effect of any
                  provision of this Agreement, but is intended to furnish the
                  parties an opportunity to resolve disputes amicably,
                  expeditiously and in a cost-effective manner on mutually
                  acceptable terms. Additionally, nothing in this Section 12
                  shall bar the right of any Party to seek and obtain injunctive
                  relief from a court of competent jurisdiction in accordance
                  with applicable law against threatened conduct that will cause
                  loss or damage, pending completion of the mediation.

                           (ii)     The non-binding mediation provided for
                  hereunder shall be commenced by the party requesting mediation
                  (the "complainant"), providing written notice of the request
                  for mediation (the "request") to the party with whom mediation
                  is sought (the "respondent"). The request shall specify with
                  reasonable particularity the matter or matters on which
                  nonbinding mediation is sought. A copy of the request shall be
                  given by the complainant simultaneously to any Party is not a
                  complainant or respondent.

                           (iii)    Non-binding mediation hereunder shall be
                  conducted by one (1) mediator. If the Parties to the mediation
                  cannot, within thirty (30) days of the date on which the
                  request was first provided to the respondent Party, agree in
                  writing upon the selection of an individual to serve as the
                  mediator, then SRI shall select and designate an individual to
                  serve as the mediator. In such event, SRI shall send the other
                  Parties written notice of its designation of the mediator
                  within thirty-five (35) days of the date on which the request
                  was first provided to the respondent.

                           (iv)     Non-binding mediation hereunder shall be
                  concluded within sixty (60) days of the issuance of the
                  request or such longer period as may be agreed upon by the
                  Parties to the mediation in writing (the "mediation
                  termination date"). All aspects of the mediation process shall
                  be treated as confidential, shall not be disclosed to others,
                  and shall not be offered or admissible in any other proceeding
                  or legal action whatsoever. Complainant and respondent shall
                  each bear its own costs of mediation, and each shall bear
                  one-half the cost of the mediator or mediation service.

                  (c)      Arbitration. During the term of this Agreement, any
claim or controversy arising out of or related to this Agreement (including, but
not limited to, any claim that the Agreement or any of its provisions is
invalid, illegal, or otherwise voidable or void and any claim relating to events
before the Agreement was executed), shall be submitted to binding arbitration
pursuant to this Section 12(c). Nothing in this section shall bar the right of
any Party to seek and obtain injunctive relief from a court of competent
jurisdiction in accordance with applicable law against threatened conduct that
will cause loss or damage, pending completion of the arbitration. The parties
acknowledge and agree that any arbitration under this Agreement shall be
conducted in accordance with the JAMS Endispute Arbitration Rules and Procedures
for commercial disputes, which are in effect at the time the demand for
arbitration is served (the "JAMS Procedures"), and the terms, conditions and

                                       9
<PAGE>

limitations set forth below in this Agreement. In the event of any inconsistency
between the JAMS Procedures and the terms set forth below, the terms set forth
in this Agreement shall control.

                           (i)      All arbitration proceedings shall be
                  conducted in Utah, within the county in which SRI's principal
                  place of business is located at the time the demand for
                  arbitration is served. In rendering the award, the arbitrator
                  shall determine the rights and obligations of the parties
                  according to the substantive and procedural laws of Utah. This
                  provision might not be enforceable under certain state laws;
                  however, the Parties acknowledge and agree that they fully
                  intend to enforce the provisions of the arbitration section
                  contained in this Agreement, including, but not limited to,
                  the venue and choice of law clauses. The Parties believe that
                  the Federal Arbitration Act preempts any state law purporting
                  to limit arbitration. The Parties agree that the arbitration
                  shall be conducted by one (1) arbitrator, who shall be a
                  retired federal court judge. The arbitrator shall be selected
                  in accordance with the JAMS Procedures.

                           (ii)     The Parties shall be entitled to conduct
                  discovery (i.e., investigation of facts through depositions or
                  other means), which shall be governed by the Federal Rules of
                  Civil Procedure (the "Rule" or "Rules") then in effect.
                  However, the Parties need not comply with obviously
                  inapplicable Rules (e.g., Rule 16). The response time set
                  forth in the Rules for all written discovery or motions shall
                  be reduced by one-half and the Parties shall complete all
                  discovery within one hundred (100) days from the date the
                  claimant filed his or its initial arbitration demand;
                  provided, however, that the arbitrator shall have the
                  authority, in his discretion, to extend or otherwise modify
                  the applicable time periods. The arbitrator shall have all
                  power and authority to order discovery, to modify the specific
                  requirements and limitations of the Rules for good cause, to
                  make and enter orders with regard to motions, and to enter a
                  final and binding judgment. Rules 12 and 56 of the Rules shall
                  apply to all motion practice conducted in the arbitration. The
                  Parties further acknowledge and agree that the following
                  terms, conditions and limitations shall apply to motions
                  practices and discovery conducted as part of arbitration under
                  this Agreement:

                                    (1)      Any demand for arbitration, answer,
                           counterclaims, and reply to counterclaims shall be
                           prepared in accordance with the Rules.

                                    (2)      The arbitrator shall have the
                           authority, in its discretion, to increase the number
                           of depositions allowed by the Parties beyond the
                           limits set forth in the Rules.

                                    (3)      Depositions of any person,
                           including an expert witness, who is not a party to
                           the arbitration shall be limited to seven (7) hours
                           in duration. There shall not be a time limit on
                           depositions of Parties to the arbitration.

                           (iii)    The arbitrator shall have the right to award
                  or include in an award relief in the form of compensatory
                  damages, injunctive relief, specific performance, attorneys'
                  fees and costs. The parties waive to the fullest extent

                                       10
<PAGE>

                  permitted by law any right to or claim for any punitive or
                  exemplary damages against the other in any arbitration
                  proceeding, except for punitive or exemplary damages
                  authorized by applicable federal law, in which case, the
                  arbitrator shall have the right to award punitive or exemplary
                  damages.

                           (iv)     The arbitrator shall produce a written
                  opinion.

                           (v)      Judgment upon the award may be entered in
                  any court of competent jurisdiction. The arbitrator shall be
                  required to follow and apply the applicable law in reaching
                  his/her decision, including applying the provisions of any
                  applicable limitation on the period of time in which claims
                  must be brought.

                           (vi)     In connection with any arbitration
                  proceeding required under this Agreement, each party shall
                  submit or file any claim that would constitute a compulsory
                  counterclaim (as defined by Rule 13 of the Rules) within the
                  same proceeding as the claim to which it relates. Any
                  compulsory counterclaim which is not submitted or filed in
                  such proceeding shall be barred.

                           (vii)    Arbitration shall be conducted on an
                  individual, not a class-wide, basis. No Party hereto shall be
                  entitled to consolidation of arbitration proceedings involving
                  the Parties with those of any third party, nor shall the
                  arbitrator or any court be empowered to order such
                  consolidation.

                           (viii)   Except as otherwise required by law, no
                  Party nor the arbitrator may disclose (to anyone not party to
                  the arbitration) the existence, content, or results of any
                  arbitration hereunder, including the record of the arbitration
                  hearing, without the prior written consent of all the parties
                  to the arbitration.

                           (ix)     Except as may be provided for to the
                  contrary in the JAMS Procedures with respect to the costs of
                  transcriptions of the arbitration hearing, all free and
                  expenses of the arbitration shall be borne by the Parties to
                  the arbitration equally. Each party shall bear the expense of
                  its own counsel, experts, witnesses, and preparation and
                  presentation of proofs; provided, however, that the arbitrator
                  shall have the authority, in its discretion, at the conclusion
                  of the proceeding, to award costs and attorneys' fees to the
                  prevailing Party or Parties.

                           (x)      Any offer of settlement or compromise by a
                  Party, whether made before or during the proceeding, shall not
                  be admissible in the arbitration.

                           (xi)     The arbitration shall be conducted in the
                  English language.

                           (xii)    This arbitration provision shall continue in
                  full force and effect subsequent to and notwithstanding the
                  expiration or termination of this Agreement.

                           (xiii)   The process set forth under the JAMS
                  Procedures for appeal of the arbitrator's final ruling shall
                  be available if the Parties elect, under the JAMS Procedures,
                  to adopt such additional process; provided, however, that the
                  Parties agree that, notwithstanding anything to the contrary
                  in the JAMS Procedures, any appeal shall be heard by a single
                  arbitrator.

                                       11
<PAGE>

                  (d)      Additional Terms. The parties further acknowledge and
agree as follows:

                           (xiv)    Any legal action brought in any court by any
                  Party under this Agreement shall be brought only within the
                  judicial district in which SRI has its principal place of
                  business at the time the action or proceeding is initiated.
                  The Parties waive all questions of personal jurisdiction and
                  venue for purposes of carrying out this provision.

                           (xv)     No right or remedy conferred upon or
                  reserved to any Party by this Agreement is intended to be, nor
                  shall be deemed, exclusive of any other right or remedy
                  provided herein or permitted bylaw or equity, but each shall
                  be cumulative of every other right or remedy.

                           (xvi)    Each Party irrevocably waives trial by jury
                  in any action, proceeding, or counterclaim, whether at law or
                  in equity, brought by any of them against the other(s). Any
                  and all claims and actions arising out of or relating to this
                  Agreement, the relationship of the Parties, brought by any
                  Party hereto against the other(s), whether in arbitration or
                  in court, shall be commenced within two (2) years from the
                  occurrence of the facts giving rise to such claim or action,
                  or such claim or action shall be barred.

                           (xvii)   Each Party hereby waives, to the fullest
                  extent permitted by law, the right to or claim for any
                  punitive or exemplary damages against the other(s), except for
                  punitive or exemplary damages authorized by applicable federal
                  law.

                  (e)      No Waiver of Injunctive Relief. Nothing contained
herein shall bar the right of any Party to seek and obtain injunctive relief
from a court of competent jurisdiction in accordance with applicable law against
threatened conduct that will cause loss or damage, under the usual equity rules,
including the applicable rules for obtaining restraining orders and injunctions.
In any instance where a Party shall seek the remedy of injunctive relief, the
seeking Party shall not be required to post any bond or surety therefore.

                                       12
<PAGE>

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

SPEAKING ROSES INTERNATIONAL, INC.

                                        By:         /s/ John Winterholler
                                                   -----------------------------
                                        Name:      John Winterholler
                                        Title:     President
                                        :          Address:
                                                   404 Ironwood Dr.
                                                   Salt Lake City, UT  84115
                                                   =============================

SPEAKING ROSES DEVELOPMENT CORPORATION.

                                        By:        /s/ John Winterholler
                                                   -----------------------------
                                        Name:      John Winterholler
                                        Title:     President
                                        :          Address:
                                                   404 Ironwood Dr.
                                                   Salt Lake City, UT  84115
                                                   =============================

                                        By:        /s/ Michael J. Glauser
                                                   -----------------------------
                                        Name:      Michael J. Glauser
                                        :          Address:
                                                   2290 S. Berkeley
                                                   Salt Lake City, UT  84109
                                                   -----------------------------

                                        BUSINESS RETAIL GROUP, LLC.

                                        By:         /s/ Michael J. Glauser
                                                    ----------------------------
                                        Name:       Michael J. Glauser
                                        Title:      Manager
                                        :           Address:
                                                    2290 S. Berkeley
                                                    Salt Lake City, UT  84109
                                                    ============================

                                       13
<PAGE>

                                   EXHIBIT "A"

              AMOUNTS OWED SRDC BY BRG AND AMOUNTS OWED BRG BY SDRC

                                       A-1
<PAGE>

                              Business Retail Group
                              d/b/a Speaking Roses
                               2104 South 700 East
                           Salt Lake City, Utah 84109
                                  801-466-ROSE

                Invoice to Speaking Roses Development Corporation
                -------------------------------------------------

Date                        Item                                        Price
----                        ----                                        -----

Oct       Five Advertising Banners                                    $   350.21
Nov       Grand Opening KSL Radio Ads                                 $   650.00
Nov       Grand Opening Banners                                       $   216.00
Nov       U of U Promotion                                            $ 1,250.00
Jan       Theater Promotion                                           $ 2,500.00
Nov-May   Arrangements to Investors, Partners, Shareholder, etc.      $ 2,449.65
Nov-May   Marketing Arrangements for PR Events - Bob Grove            $ 1,749.75
Nov-May   1/2 of Invoices Paid by Store to Ensign Floral              $ 3,297.51
Feb       U of U Promotion                                            $ 1,875.00
Feb       10,000 Coupons for Valentine's Day                          $   284.96
Feb       Wedding Show, Roses, Valentine's Coupons                    $ 1,200.00
Feb       Newspaper Agency Ad for Valentines                          $ 1,264.93
Feb       KSL Radio Ads and 25 Free Bouquets                          $   999.88
Feb       KODJ Radio Ads and 10 Free Bouquets                         $ 1,532.45
Feb       Three Banners on Stores                                     $   326.20
April     34 Bouquets and Elite Vases to Blockbuster Meeting
          in Dallas                                                   $ 2,719.66
May       Mothers' Day Radio Advertising                              $ 1,075.00
May       Mothers' Day Banners                                        $   216.00

                                                                      ----------

                                 Total Due Business Retail Group      $23,957.20

                                        2
<PAGE>

                                   EXHIBIT "B"

                       LIABILITIES ASSUMED IN THE PURCHASE

1.       The lease for the Premises including assumption of guarantee.

2.       Automobile purchase and lease.

3.       ______________________________________________

4.       ______________________________________________

5.       ______________________________________________

6.       ______________________________________________

7.       ______________________________________________

8.       ______________________________________________

                                        3
<PAGE>

                                   EXHIBIT "C"

                  WARRANT FOR GLAUSER TO ACQUIRE SHARES OF SRII

                                        4

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