Document:

Exhibit 10.2 
	 
	
WAIVER AND AMENDMENT NO. 2 TO
LOAN AND SECURITY AGREEMENT

                                This Waiver and Amendment No. 2 to Loan and Security Agreement (this “Amendment”) dated as of May 11, 2005, by and among LaSalle Business Credit, LLC, for itself, as a lender,
and as Agent (“Agent”) for the lenders (“Lenders”) from time to time party to the Loan Agreement (as defined below), the Lenders party hereto,
Easy Gardener Products, Ltd., a Texas limited Partnership (“Borrower”), EYAS International, Inc., a Texas corporation (“EYAS”), EG Product Management, L.L.C., a Texas limited liability company (“EG Product”), EG, L.L.C., a Nevada limited liability company (“EG”), Weatherly Consumer Products Group, Inc., a Delaware corporation (“WCP Group”), Weatherly Consumer Products, Inc., a Delaware corporation (“WCP”), and NBU Group, LLC, a Texas limited liability company (“NBU”; Borrower, EYAS, EG Product, EG, WCP Group, WCP and NBU are collectively referred to herein
as the “Credit Parties” and each individually as a “Credit Party”).

Preliminary Statements

                                Agent, Lenders and Credit Parties entered into that certain Loan and Security Agreement dated as of
April 27, 2004 (as amended, restated or otherwise modified from time to time, the “Loan Agreement”). Capitalized terms used but not defined in this Amendment shall have the meanings ascribed
to such terms in the Loan Agreement.

                                The Credit Parties have requested that Agent and Lenders waive the Event of Default that exists under
the Loan Agreement as a result of Borrower’s failure to comply with subsection 14(c) of the
Loan Agreement for the 12 month period ending March 31, 2005 (the “March 2005 Leverage Default”).

                                The Credit Parties have further requested that Agent and Lenders amend the Loan Agreement in certain
respects, as set forth below.

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

                                1.               Amendments to Loan Agreement. Subject to the satisfaction of the conditions set forth herein, the Loan Agreement hereby is amended
as follows:

                                (a)             The definition of “Eligible Inventory“ set forth in Section 1 of the Loan Agreement is amended
and restated in its entirety, as follows:

	 

	 	                “Eligible Inventory” shall mean Inventory of a Borrowing Base Company which is acceptable to Agent in its sole but
  reasonable discretion for lending purposes. Without limiting Agent’s discretion, Agent shall,
  in general, 

	

	 	consider Inventory of a Borrowing Base Company to be Eligible Inventory if it meets, and so long as
  it continues to meet, the following requirements:

		 
	 	                                (i)            it is owned by such Borrowing
  Base Company, such Borrowing Base Company has the right to subject it to a security interest in favor
  of Agent and it is subject to a first priority perfected security interest in favor of Agent and
  to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens;

		 
	 	                                (ii)           it is located on one of the premises
  listed on Exhibit A (or other locations of which Agent has been advised in writing pursuant to subsection 12(b)(i) hereof) and, except as set forth in clause (ix) below, is not in transit;

		 
	 	                                (iii)          if held for sale or lease or furnishing
  under contracts of service, it is (except as Agent may otherwise consent in writing) manufactured
  and saleable in accordance with applicable laws and new and unused and free from defects which would,
  in Agent’s sole determination, affect its market value;

		 
	 	                                (iv)          it is not stored with a bailee, consignee,
  warehouseman, processor or similar party unless Agent has given its prior written approval and such
  Borrowing Base Company has caused any such bailee, consignee, warehouseman, processor or similar
  party to issue and deliver to Agent, in form and substance acceptable to Agent, such Uniform Commercial
  Code financing statements, warehouse receipts, waivers and other documents as Agent shall require;

		 
	 	                                (v)           Agent has determined, in accordance
  with Agent’s customary business practices, that it is not unacceptable due to age, type, category
  or quantity;

		 
	 	                                (vi)          it is not Inventory (A) with respect
  to which any of the representations and warranties contained in this Agreement are untrue; or (B) which
  violates any of the covenants of any Company contained in this Agreement;

		 
	 	                                (vii)         it is not Excess Inventory;
		 
	 	                                (viii)        it is not Inventory consisting of work-in-process,
  promotional items or packaging materials; and

		 
	 	                                (ix)           Inventory which otherwise satisfies
  the criteria for Eligible Inventory but is in transit from Asia and Europe to the United States shall
  be deemed Eligible Inventory so long (A) as such Borrowing Base Company has received adequate
  bills of lading representing such Inventory, as determined by Agent in its sole discretion, (B) the
  Inventory is fully insured in 

	

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	 	a manner satisfactory to Agent, (C) no Letter of Credit issued to the seller thereof in connection
  with the purchase of such Inventory is undrawn or outstanding, (D) such Borrowing Base Company
  has title to such Inventory (and the seller thereof has no retention of title or other claims to
  such Inventory), and (E) such Borrowing Base Company has taken such steps as Agent shall require
  to perfect Agent’s security interest therein (including without limitation, (1) if such
  Inventory is evidenced and deliverable pursuant to negotiable bills of lading, such negotiable bills
  of lading have been delivered to Agent or a customs broker that has agreed to hold such bills of
  lading for the benefit of Agent pursuant to an agreement satisfactory to Agent, and (2) if such
  Inventory is evidenced and deliverable pursuant to non-negotiable bills of lading issued by a bailee
  in the possession of such Inventory, (x) such non-negotiable bills of lading each name Agent
  as the consignee of the Inventory evidenced thereby, and (y) the bailee or other agent of such
  Borrowing Base Company in possession of such non-negotiable bills of lading has agreed, in writing,
  to act as Agent’s agent with respect to such non-negotiable bills of lading and the Inventory evidenced thereby).

	 
	
                                (b)             The definition of “Excess Availability” set forth in Section 1 of the Loan Agreement is
amended and restated in its entirety, as follows:

	 

	 	                “Excess Availability” shall mean, as of any date of determination by Agent, the excess, if any, of the lesser of (i)
  the Maximum Revolving Loan Limit less the sum of the outstanding Revolving Loans and Letter of Credit
  Obligations, and (ii) the Revolving Loan Limit less the sum of the outstanding Revolving Loans and
  Letter of Credit Obligations, in each case as of the close of business on such date and assuming,
  for purposes of calculation, that all accounts payable which remain unpaid more than thirty (30)
  days after the due dates thereof as the close of business on such date are treated as additional
  Revolving Loans outstanding on such date.

	 
	
                                (c)             The definition of “Letter of Credit“ is added to Section 1 of the Loan Agreement, in appropriate
alphabetical order, as follows:

	 

	 	                “Letter of Credit” shall mean any letter of credit issued on behalf of Borrower in accordance with this Agreement.

	 
	
                                (d)             The definition of “Letter of Credit Obligations” is added to Section 1 of the Loan Agreement,
in appropriate alphabetical order, as follows:

	 

	 	                “Letter of Credit Obligations” shall mean, as of any date of determination, the sum of (i) the aggregate undrawn face
  amount of all Letters of Credit, and (ii) the aggregate unreimbursed amount of all drawn Letters
  of Credit not already converted to Loans hereunder.

	

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	 	                (e)           The first two paragraphs of Section 2(a) of the Loan Agreement are amended and 
	 	restated in its entirety, as follows:
	 	 
	 	                (a)           Revolving Loans.
		 
	 	                Subject to the terms and conditions of this Agreement and the Other Agreements, during the Original
  Term and any Renewal Term, each Lender, severally and not jointly, shall, absent the occurrence of
  an Event of Default, make its Pro Rata Share of revolving loans and advances (the ”Revolving Loans”) requested by Borrower up to such Lender’s Revolving Loan Commitment so long as after giving
  effect to such Revolving Loans, the sum of the aggregate unpaid principal balance of the Revolving
  Loans and the Letter of Credit Obligations does not exceed an amount up to the sum of the following
  sublimits (the “Revolving Loan Limit”):

		 
	 	                                (i)            Up to eighty-five percent
  (85%), or such lesser percentage as determined by Agent in its sole but reasonable discretion, of
  the face amount (less maximum discounts, credits and allowances which may be taken by or granted
  to Account Debtors in connection therewith in the ordinary course of a Borrowing Base Company’s
  business) of the Borrowing Base Companies’ Net Eligible Accounts; plus

		 
	 	                                (ii)           The lesser of (a) the sum
  of up to sixty percent (60%) of the lower of cost or market value of the Borrowing Base Companies’ Eligible Inventory consisting of finished goods, plus up to fifty percent (50%) of the lower of cost or market value of the Borrowing Base Companies’ Eligible Inventory consisting of raw materials, and (b) Four Million and No/100 Dollars ($4,000,000),
  whichever is less; plus

		 
	 	                                (iii)          Up to fifty percent (50%) against
  the face amount of commercial Letters of Credit issued or guaranteed by Agent for the purpose of
  purchasing Eligible Inventory; provided, that such commercial Letters of Credit are in form and substance
  satisfactory to Agent; plus

		 
	 	                                (iv)          The Seasonal Amount; minus
		 
	 	                                (v)           Such reserves as Agent elects,
  in its sole but reasonable discretion to establish from time to time;

		 
	 	provided, that (v) the amount of advances against Net Eligible Accounts that are Regular Datings and
  Extended Datings shall at no time exceed $6,000,000 in the aggregate, (w) the amount of advances
  against Net Eligible Accounts that are Extended Datings shall at no time exceed $2,000,000 in the
  aggregate, (x) the amount of advances against WCP’s Net Eligible Accounts and WCP’s
  Eligible Inventory shall at no time exceed $1,000,000 in the aggregate, (y) the amount of advances
  against Eligible Inventory that is in transit shall at no time

	

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	 	exceed Five Hundred Thousand and No/100 Dollars ($500,000), and (z) the Revolving Loan Limit shall
  in no event exceed Twenty-Five Million and No/100 Dollars ($25,000,000) (the “Maximum Revolving Loan Limit”) except as such amount may be increased or, following the occurrence of an Event of Default,
  decreased, by all Lenders, in each Lender’s sole but reasonable discretion or decreased by Agent
  in its sole but reasonable discretion.

		 
	 	                The aggregate unpaid principal balance of the Revolving Loans shall not at any time exceed the lesser
  of the (i) Revolving Loan Limit minus the Letter of Credit Obligations and (ii) the Maximum
  Revolving Loan Limit minus the Letter of Credit Obligations. If at any time the outstanding Revolving
  Loans exceeds either the Revolving Loan Limit or the Maximum Revolving Loan Limit, in each case minus
  the Letter of Credit Obligations, or any portion of the Revolving Loans and Letter of Credit Obligations
  exceeds any applicable sublimit within the Revolving Loan Limit, Borrower shall immediately, and
  without the necessity of demand by Agent, pay to Agent such amount as may be necessary to eliminate
  such excess and Agent shall apply such payment to the Revolving Loans in such order as Agent shall
  determine in its sole but reasonable discretion; provided that Agent may, in its sole discretion,
  permit such excess (the “Interim Advance”) to remain outstanding and continue to advance Revolving Loans to Borrower on behalf of Lenders
  without the consent of any Lender for a period of up to ninety (90) calendar days, so long as (i) the
  amount of the Interim Advances does not exceed at any time Two Million Three Hundred Thousand and
  No/100 Dollars ($2,300,000), (ii) the aggregate outstanding principal balance of the Revolving
  Loans does not exceed the Maximum Loan Limit, and (iii) Agent has not been notified by Requisite
  Lenders to cease making such Revolving Loans. If the Interim Advance is not repaid in full within
  ninety (90) days of the initial occurrence of the Interim Advance, no future advances may be made
  to Borrower without the consent of all Lenders until the Interim Advance is repaid in full.

	 	 
	 	                (f)            Section 3 of the Loan Agreement is amended and restated in its entirety, as follows:
	 	 
	 	                3.             LETTERS OF CREDIT.
		 
	 	                (a)           General Terms.
		 
	 	                Subject to the terms and conditions of the Agreement and the Other Agreements, during the Original
  Term or any Renewal Term, Agent may, in its sole discretion, from time to time issue, cause to be
  issued and co-sign for or otherwise guarantee, upon Borrower’s request, commercial and/or standby
  Letters of Credit; provided, that the aggregate undrawn face amount of all such Letters of Credit
  shall at no time exceed One Million and No/100 Dollars 

	

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	 	($1,000,000).  Payments made by the issuer of a Letter of Credit to any Person on account of any
  Letter of Credit shall be immediately payable by Borrower without notice, presentment or demand and
  Borrower agrees that each payment made by the issuer of a Letter of Credit in respect of a Letter
  of Credit shall constitute a request by Borrower for a Loan to reimburse such issuer. In the event
  such Loan is not advanced by Agent or Lenders for any reason, such reimbursement obligations (whether
  owing to the issuer of the Letter of Credit or Agent or Lenders) shall become part of the Liabilities
  hereunder and shall bear interest at the rate then applicable to Revolving Loans constitute Prime
  Rate Loans until repaid. Borrower shall remit to Agent, for the benefit of Lenders, a per annum Letter
  of Credit fee equal to three and one-quarter percent (3.25%) (provided, that such fee shall be increased
  to a per annum fee of five and one-quarter percent (5.25%) upon the occurrence and during the continuance
  of an Event of Default) on the aggregate undrawn face amount of all Letters of Credit outstanding,
  which fee shall be payable monthly in arrears on the last Business Day of each month. Borrower shall
  also pay on demand the normal and customary administrative charges of the issuer of the Letter of
  Credit for issuance, amendment, negotiation, renewal or extension of any Letter of Credit.

		 
	 	                (b)           Requests for Letters of Credit.
		 
	 	                Borrower shall make requests for Letters of Credit in writing at least three (3) Business Days prior
  to the date such Letter of Credit is to be issued. Each such request shall specify the date such
  Letter of Credit is to be issued, the amount thereof, the name and address of the beneficiary thereof
  and a description of the transaction to be supported thereby. Any such notice shall be accompanied
  by the form of Letter of Credit requested and any application or reimbursement agreement required
  by the issuer of such Letter of Credit. If any term of such application or reimbursement agreement
  is inconsistent with this Agreement, then the provisions of this Agreement shall control to the extent
  of such inconsistency.

		 
	 	                (c)           Obligations Absolute.
		 
	 	                Borrower shall be obligated to reimburse the issuer of any Letter of Credit, or Agent and/or Lenders
  if Agent and/or Lenders have reimbursed such issuer on Borrower’s behalf, for any payments made
  in respect of any Letter of Credit, which obligation shall be unconditional and irrevocable and shall
  be paid regardless of: (i) any lack of validity or enforceability of any Letter of Credit,
  (ii) any amendment or waiver of or consent or departure from all or any provisions of any Letter
  of Credit, this Agreement or any Other Agreement, (iii) the existence of any claim, set off,
  defense or other right which Borrower or any other Person may have against any beneficiary of any
  Letter of Credit or Agent, any Lender or the issuer of the Letter of Credit, (iv) any draft
  or other document presented under any Letter of Credit proving 

	

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	 	to be forged, fraudulent, invalid, or insufficient in any respect or any statement therein being untrue
  or inaccurate in any respect, (v) any payment under any Letter of Credit against presentation
  of a draft or other document that does not comply with the terms of such Letter of Credit, and (vi) any
  other act or omission to act or delay of any kind of the issuer of such Letter of Credit, Agent,
  any Lender or any other Person or any other event or circumstance that might otherwise constitute
  a legal or equitable discharge of Borrower’s obligations hereunder. It is understood and agreed
  by Borrower that the issuer of any Letter of Credit may accept documents that appear on their face
  to be in order without further investigation or inquiry, regardless of any notice or information
  to the contrary.

		 
	 	                (d)           Expiration Dates of Letters of Credit.
		 
	 	                The expiration date of each Letter of Credit shall be no later than the earlier of (i) one (1)
  year from the date of issuance and (ii) the thirtieth (30th) day prior to the end of the Original
  Term or any Renewal Term. Notwithstanding the foregoing, a Letter of Credit may provide for automatic
  extensions of its expiration date for one or more one (1) year periods, so long as the issuer thereof
  has the right to terminate the Letter of Credit at the end of each one (1) year period and no extension
  period extends past the thirtieth (30th) day prior to the end of the Original Term or any Renewal Term.

		 
	 	                (e)           Participation.
		 
	 	                Immediately upon the issuance of a Letter of Credit in accordance with this Agreement, each Lender
  shall be deemed to have irrevocably and unconditionally purchased and received from Agent, without
  recourse or warranty, an undivided interest and participation therein to the extent of such Lender’s
  Pro Rata Share (including, without limitation, all obligations of Borrower with respect thereto).
  Borrower hereby indemnifies Agent and each Lender against any and all liability and expense it may
  incur in connection with any Letter of Credit and agrees to reimburse Agent and each Lender for any
  payment made by Agent or any Lender to the issuer.

	 	 
	 	                (g)           Section 18(b) of the Loan Agreement is amended and restated in its entirety, as 

	follows:

	 	 
	 	                (b)           Within one (1) Business Day of
  receipt thereof by Agent, payments to be applied to the closing fee as provided in subsection 4(c)(i) or the Letter of Credit fee set forth in subsection 3(a) shall be paid to each Lender in proportion to its Pro Rata Share;

	 	 
	 	                2.             Waiver.  Subject  to  the  satisfaction  of the  conditions set forth herein, Agent  and 

	Lenders hereby waive the March 2005 Leverage Default. The foregoing waiver shall not constitute a waiver of any other Events of Default that may exist, or a waiver of any 

	

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future Events of Default that may occur (including, without limitation, any Event of Default arising
from any other breach of subsection 14(c) of the Loan Agreement as of any date after March 31, 2005).

                                3.               Representations and Warranties of Credit Parties. Each Credit Party represents and warrants that, as of the date hereof:

                                (a)             Such Credit Party has the right and power and is duly authorized to enter into this Amendment;

                                (b)             No Event of Default or an event or condition which upon notice, lapse of time or both would constitute
an Event of Default has occurred and is continuing;

                                (c)             The execution, delivery and performance by such Credit Party of this Amendment and the other agreements
to which such Credit Party is a party (i) have been duly authorized by all necessary action on its
part; (ii) do not and will not, by the lapse of time, giving of notice or otherwise, violate the
provisions of the terms of its Articles of Incorporation or Organization, By-Laws or Operating Agreement,
or of any mortgage, indenture, security agreement, contract, undertaking or other agreement to which
such Credit Party is a party, or which purports to be binding on such Credit Party or any of its
properties; (iii) do not and will not, by lapse of time, the giving of notice or otherwise, contravene
any governmental restriction to which such Credit Party or any of its properties may be subject;
and (iv) do not and will not, except as contemplated in the Loan Agreement, result in the imposition
of any lien, charge, security interest or encumbrance upon any of Borrower’s properties under
any indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument
to which such Credit Party is a party or which purports to be binding on such Credit Party or any of its properties;

                                (d)             No consent, license, registration or approval of any governmental authority, bureau or agency is required
in connection with the execution, delivery, performance, validity or enforceability of this Amendment;
and

                                (e)             This Amendment has been duly executed and delivered by such Credit Party and is enforceable against
such Credit Party in accordance with its terms.

                                4.               Conditions Precedent. The effectiveness of this Amendment is subject to the following conditions precedent:

                                (a)             Agent shall have received a fully-executed copy of this Amendment from Credit Parties and Lenders,
which shall be in form and substance satisfactory to Agent;

                                (b)             Agent shall have received a fully-executed copy of a consent to this Amendment and a waiver by CapitalSource
Finance LLC, each of which shall be in form and substance satisfactory to Agent and its legal counsel;

	

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                                (c)             Borrower shall have paid an amendment fee to Agent in the amount of $5,000 and a waiver fee in the
amount of $3,000, which fees shall be distributed by Agent to the Lenders in accordance with their
Pro Rata Shares;

                                (d)             All proceedings taken in connection with the transactions contemplated by this Amendment and all documents,
instruments and other legal matters incident thereto shall be satisfactory to Agent and its legal
counsel; and

                                (e)             The absence of any Event of Default or any event which, if uncured, would become an Event of Default
after notice or lapse of time (or both).

                                5.               Fees and Expenses. Borrower agrees to pay all legal fees and other expenses incurred by Agent in connection with this
Amendment.

                                6.               Loan Agreement Remains in Force. Except as specifically modified hereby, all of the terms and conditions of the Loan Agreement shall
remain in full force and effect and this Amendment shall not be a waiver of any rights or remedies
which Agent or Lenders have provided for in the Loan Agreement and all such terms and conditions
are herewith ratified, adopted, approved and accepted.

                                7.               No Novation. This Amendment is not intended to nor shall be construed to create a novation or accord and satisfaction
with respect to any of the Liabilities.

                                8.               Severability. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

                                9.               Ratification. Except as expressly modified hereby and by any other supplemental documents or instruments executed
by either party hereto in order to effectuate the transactions contemplated hereby, the Loan Agreement
thereto hereby are ratified and confirmed by the parties hereto and remain in full force and effect
in accordance with the terms thereof.

[Signature Pages Follow]

	

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                                IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal and
delivered by their respective duly authorized officers on the date first written above.

	 

	 	 	 
	 	LASALLE BUSINESS CREDIT, LLC,
	 	as Agent and a Lender
	 	 	 
	 	By /s/ Scott R. Busch
	 	 	

	 	Its FVP
	 	 	

	 	 	 
	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	 	 
	 	By /s/ Adam Lutostanski
	 	 	 	

	 	Its Commercial Banking Officer
	 	 	

	 	 	 
	 	EASY GARDENER PRODUCTS, LTD.,
	 	as Borrower
	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	 	 	 
	 	EYAS INTERNATIONAL, INC.,
	 	as a Credit Party
	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	 	 	 
	 	EG PRODUCT MANAGEMENT, L.L.C.
	 	as a Credit Party
	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	

	 	EG, L.L.C., as a Credit Party
	 	 	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	 	 	 	 	 
	 	WEATHERLY CONSUMER PRODUCTS GROUP,
	 	 INC., as a Credit Party
	 	 	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	 	 	 	 	 
	 	WEATHERLY CONSUMER PRODUCTS, INC.,
	 	as a Credit Party
	 	 	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFO
	 	 	

	 	 	 	 	 
	 	NBU GROUP, LLC, as a Credit Party
	 	 	 	 	 
	 	By /s/ Richard M. Kurz
	 	 	 	

	 	Its CFOCIE
                            MASTER SERVICES AGREEMENT

THIS MASTER SERVICES AGREEMENT ("Agreement"), effective as of the 13th day of
May, 2005 ("Effective Date"), is by and between vFinance, Inc., a Florida
corporation ("vFinance"), with offices at 3010 N. Military Trail, Suite 300,
Boca Raton, Florida 33431, and Center for Innovative Entrepreneurship, Inc., a
Florida not for profit corporation, ("CIE"), with offices at P.O. Box 812252,
Boca Raton, FL 33481-2252.

1.   SERVICES AND  ATTACHMENTS.  vFinance hereby engages CIE for the purposes of
     rendering  services such as Chief Economist  services and research services
     (collectively,  the "Services"), which services are more fully described in
     the  work  orders  that  are  mutually  executed  and  attached  hereto  in
     consecutive numbered order (the "Attachment(s)"). Duly executed Attachments
     may specifically  modify the terms of this Agreement solely with respect to
     such Attachment,  and in the event of a conflict between this Agreement and
     any Attachment, the terms of the Attachment shall control.

2.   TERM OF  AGREEMENT.  The term of this  Agreement  is one (1) year  from the
     Effective  Date,  which  term  shall  automatically  renew for  consecutive
     one-year terms, unless either party gives the other party written notice of
     termination at least thirty (30) days prior to the end of the  then-current
     term.   Either  party  may  terminate   this   Agreement  or  any  relevant
     Attachment(s)  hereunder immediately without penalty upon the other party's
     failure  to cure a material  breach  within  ten (10)  business  days after
     delivery of written notice thereof.

3.   INVOICING AND CREDIT TERMS. Unless otherwise provided in an Attachment, CIE
     will invoice vFinance  monthly for all Services  performed in the preceding
     calendar  month and payment is due upon  receipt of  invoice.  In the event
     that vFinance does not pay an invoice within (15) days after  receipt,  CIE
     may charge  interest on the overdue  account  balance at the rate of 1% per
     month.

4.   OUT OF POCKET  EXPENSES.  CIE will invoice  vFinance for all reasonable and
     necessary  expenses (at cost) incurred by CIE's  employees and  contractors
     relating to the  performance of Services and such expenses will be included
     in invoices  submitted by CIE.  Provided,  however,  vFinance  shall not be
     obligated  to pay any such  expenses,  unless an  officer of  vFinance  has
     pre-approved such expenses in writing.

5.   CONFIDENTIAL  MATTERS.  Unless authorized to do so in writing by an officer
     of the other party hereto,  neither party nor any third party acting on its
     behalf,  will for any reason at any time use or  disclose  to any person or
     party any confidential information including, without limitation,  relating
     to  the  processes,  techniques,  work  practices,  customers,  prospective
     customers, suppliers, vendors, business practices,  strategies,  marketing,
     third party licenses, products, proprietary information or trade secrets of
     the other party hereto or affiliated  companies,  or any other confidential
     information   given  to  any  of  them  by  any   officers,   employees  or
     representatives  of  the  other  party.  Provided,   however,  the  parties
     acknowledge   that  CIE  may  be  required  to  use  or  apply   vFinance's

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     confidential information in order to properly perform Services for vFinance
     under this Agreement.  The obligation to keep information confidential will
     not  extend  to:  (a)  information  which is or  becomes a matter of public
     record through no fault of disclosing  party; (b) information  which can be
     shown to have been  legally  disclosed to the  disclosing  party by a third
     party without  restrictions as to disclosure and (c) information  which was
     known to the recipient without restriction prior to its disclosure to it by
     the disclosing party. Either party may disclose confidential information to
     its  independent  contractors  performing  services  for the other  party's
     benefit,  provided that such independent contractors are bound by a written
     non-disclosure  agreement  protecting  such  confidential  information in a
     manner  consistent  with this  Agreement.  Confidential  information  shall
     remain  the  sole  property  of the  disclosing  party  or  its  respective
     licensor.  In the event of a breach or threatened breach of this provision,
     the  disclosing  party  shall be entitled  to seek  preliminary  injunctive
     relief to prevent the use and disclosure of such confidential  information,
     in addition to all other remedies available at law and in equity.

6.   LIMITATION OF LIABILITY AND DAMAGES. CIE's entire liability to vFinance for
     any loss,  liability or damage,  including  attorney's  fees, for any claim
     arising  out  of or  related  to  this  Agreement,  any  Attachment  or the
     Services,  regardless of the form of action,  will be limited to vFinance's
     actual  direct  out-of-pocket  expenses  which are  reasonably  incurred by
     vFinance and will not exceed the amount of the fees actually paid to CIE by
     vFinance pursuant to the applicable.  IN NO EVENT SHALL EITHER PARTY HERETO
     BE  LIABLE TO THE  OTHER  PARTY  HERETO  FOR LOST  PROFITS,  CONSEQUENTIAL,
     SPECIAL,  INCIDENTAL,  OR  PUNITIVE  DAMAGES,  HOWSOEVER  ARISING OUT OF OR
     RELATED  TO  THIS   AGREEMENT   REGARDLESS  OF  THE  BASIS  OF  THE  CLAIM.
     Notwithstanding,  the foregoing limitations of liability shall not apply to
     either  party's  misappropriation  or  infringement  of the  other  party's
     intellectual property rights,  breach of Section 5 (Confidential  Matters),
     amounts  payable to third parties  pursuant to  indemnification  obligation
     under  Section  10 below,  or  damages  caused by the gross  negligence  or
     willful misconduct of such party.

7.   INTELLECTUAL PROPERTY OWNERSHIP.  In the event any work product (including,
     but not  limited  to,  training  materials,  programs,  software,  designs,
     documentation, inventions, discoveries, ideas and processes) is produced by
     CIE in the  course of its  performing  the  Services  hereunder  (the "Work
     Product"), it is hereby agreed that such Work Product shall be deemed "work
     for  hire"  and will be owned  exclusively  by  vFinance  unless  otherwise
     mutually  agreed in advance in  writing.  To the extent  such works are not
     considered  work-made-for-hire,  CIE hereby  assigns to vFinance all right,
     title and  interest  to any and all such  works and  Intellectual  Property
     therein.  CIE  acknowledges  that  it is not  entitled  to the  payment  of
     royalties or other forms of compensation  for such works.  CIE shall assist
     vFinance  in  perfecting,   assigning,   maintaining   and  protecting  the
     intellectual property rights,  including, but not limited to, the execution
     of all documents reasonably requested by vFinance.

                                       2

<PAGE>

8.   LIMITED WARRANTIES; DISCLAIMERS

     a)   CIE  represents  and  warrants  that it will perform the Services in a
          professional  and  workmanlike  manner,  in  accordance  with industry
          standards, and in conformance with applicable Attachments.
     b)   CIE  represents  and warrants that its execution of this Agreement and
          performance hereunder,  and under any Attachments executed pursuant to
          this  Agreement,  have  been duly  authorized  and do not and will not
          conflict with or constitute a default under any agreement binding upon
          it.
     c)   CIE represents and warrants that CIE, its subcontractors,  agents, and
          independent  contractors  shall use reasonable  efforts to comply with
          all material and applicable laws and regulations.

     THE FOREGOING ARE THE EXCLUSIVE WARRANTIES OF CIE REGARDING ITS SERVICES
     AND WORK PRODUCT AND CUSTOM SOFTARE, AND VFINANCE MAKES NO OTHER WARRANTIES
     OR GUARANTEES TO CUSTOMER, WHETHER EXPRESS OR IMPLIED, INCLUDING THE
     IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

9.   TERMINATION OF ENGAGEMENTS/RESOURCES. vFinance may cancel this Agreement or
     any  Attachment in writing upon thirty (30) business days notice to CIE. In
     the event either party breaches this  Agreement,  or any  Attachments,  and
     fails  to cure  such  breach  within  ten  (10)  business  days  after  the
     non-breaching  party provides notice thereof,  the non-breaching  party may
     immediately   terminate   this   Agreement   or   otherwise   the  relevant
     Attachment(s) hereto.

10.  INDEMNIFICATION.  Each of the  parties  (in such  role,  the  "Indemnitor")
     agrees to  indemnify,  defend  and hold  harmless  the other  party and its
     affiliates, and its respective shareholders, members, affiliates, officers,
     directors, employees, independent contractors,  sponsors, agents, advisors,
     and their successors and assigns  (collectively the "Indemnitees") from and
     against any and all claims, demands, suits, actions, liabilities, losses or
     final awards,  including,  but not limited to, costs,  judgments,  damages,
     final awards, and reasonable  attorney's fees and expenses,  resulting from
     any  third  party's  claim  made or suit  brought  against  any  Indemnitee
     resulting from: (i) any material  breach by Indemnitor of its  obligations,
     representations,  warranties  or  covenants  hereunder;  (ii) any  claim of
     infringement of intellectual  property rights,  but excluding any liability
     to the extent caused by the act or omission of any of the  Indemnitees;  or
     (iii) the gross negligence or willful misconduct of Indemnitor, its agents,
     employees or independent contractors, related to this Agreement. Indemnitor
     shall not settle any claim or enter into any  judgment  with respect to the
     subject  matter hereof without the prior written  approval of  Indemnitees,
     which consent shall not be unreasonably  withheld, or unless the settlement
     contains a complete and general release of the Indemnitees.

                                       3

<PAGE>

11.  RELATIONSHIP OF PARTIES. The relationship between CIE and vFinance created
     by this Agreement is one of independent contractor and under no
     circumstances is any employee or contractor of vFinance to be deemed an
     employee of vFinance. CIE will secure and maintain adequate workers'
     compensation insurance in accordance with the law of the state(s) wherein
     vFinance will perform Services. This Agreement is non-exclusive, and
     nothing herein shall be construed to prohibit either party from contracting
     with other parties for similar services.

12.  WORKING CONDITIONS. When vFinance performs Services and enters upon
     vFinance's facilities, vFinance will provide sufficient work space and
     related resources and vFinance warrants that it will use reasonable efforts
     so that all workplace conditions to which vFinance's employees and
     contractors may be exposed will be in compliance with all material laws and
     regulations applicable to vFinance.

13.  ASSIGNMENT. Neither party may assign this Agreement and any related
     Attachment to this Agreement without the prior written consent of the other
     party. However, this Agreement and any related Attachment may be assigned
     without such consent by either party to the successor in interest to
     substantially all of the business and assets of such party or in the event
     of a change of control of the beneficial ownership of such party. Written
     notice of the assignment must be delivered to the other party prior to the
     date of such assignment. This Agreement shall inure to the benefit of and
     be binding upon each of the party's successors and assigns.

14.  GOVERNING LAW; ATTORNEY'S FEES. In the event that it becomes necessary to
     enforce the terms of this Agreement, the validity, construction,
     interpretation, and performance of this Agreement shall be governed by and
     construed in accordance with the laws of the State of Florida without
     regard to the conflicts of law principles thereunder. The parties hereby
     irrevocably submit to the exclusive jurisdiction and venue of the federal
     and state courts located in and for Palm Beach County and the Southern
     District for Florida. The prevailing party in any action to enforce or
     interpret this Agreement shall be entitled to recover reasonable costs and
     fees in connection therewith, including reasonable attorneys' fees.

15.  WAIVER. Waiver by any party of any breach of any provision of this
     Agreement shall not be considered as, nor constitute a continuing waiver,
     breach or cancellation of, any other breach of any provision of this
     Agreement.

                                       4

<PAGE>

16.  COUNTERPARTS. This Agreement may be executed in counterparts, each of which
     shall be deemed an original, but which together will constitute one and the
     same instrument.

17.  ENTIRE AGREEMENT. This Agreement and its Attachments supersede all
     proposals, negotiations, or discussions heretofore had between the parties
     related to the subject matter. This Agreement and each Attachment
     constitutes the complete agreement between the parties and may not be
     modified or amended without the prior written consent of both parties.

18.  SURVIVAL OF TERMS. The applicable terms of Sections 5-8 and 10-18 of this
     Agreement shall survive the termination or expiration of this Agreement.

     AGREED TO AND ACCEPTED as of the Effective Date first written above:

VFINANCE, INC.                        CENTER FOR INNOVATIVE
                                      ENTREPRENEURSHIP, INC.

By:                                   By:
   --------------------------            -----------------------------
Name:                                 Name:
     ------------------------              ---------------------------
Title:                                Title:
      -----------------------               --------------------------

                                       5

<PAGE>

                                ATTACHMENT NO. 1

                            Chief Economist Services

Date:  4/05/05

Scope of Services:  Preparation of reports, advisories and economic evaluations.

Term:  During the term of the Agreement, unless otherwise terminated earlier in
accordance with the terms and conditions therein.

Fees and Costs:  $100/hour or portion thereof.

Special Terms:

         AGREED TO AND ACCEPTED as of the date first written above:

VFINANCE, INC.                        CENTER FOR INNOVATIVE
                                      ENTREPRENEURSHIP, INC.

By:                                   By:
   --------------------------            -----------------------------
Name:                                 Name:
     ------------------------              ---------------------------
Title:                                Title:
      -----------------------               --------------------------

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