Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ared-4_09-cv-00371/USCOURTS-ared-4_09-cv-00371-5/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 28:1332 Diversity-Fraud

---

MAR 22 2010
 

::MES w. MC~~::~K
 SCHEDULE "A" ~~:1 

DEP CLERK 

IN THE UNITED STATE DISTRICT COURT
 

FOR THE EASTERN DISTRICl' OF ARKANSAS
 

LUTHER S. PATE, IV ) 

) 

Plaintiff, ) 

) 

v. ) No. 4:09-CVOO371 SWW 

) 

GEFF YIELDING, ) 

VESPA HOLDINGS, INC., ) 

VESPA BEVERAGES, LLC ) 

AND VESPA BEVERAGES, INC. ) 

) 

Defendants. ) 

CONSENT JUDGMENT AND STIPULATION 

Before the Court is the Amended Complaint of the Plaintiff, Stan Pate. and the 

CountercJaim of the Defendant, Geff Yielding. Defendants, Vespa Holdings, Inc., ("VHI"). 

Vespa Beverages, LLC ("VBL"), and Vespa Beverages, Inc. ("VBI") are nominal parties to this 

lawsuit by virtue of the fact that control of those entities was at issue in this lawsuit. The Parties 

have consented to this Consent Judgment and Stipulation, with Mr. Yielding entering into this 

Consent Judgment and Stipulation on behalf of VHI and VBL. In consideration of same the 

Court finds: 

1. Mr. Pate and Mr. Yielding have reached an agreement for the sale of the assets of 

VBL and VHI to PBEV, LLC, an entity owned by Mr. Pate. The tenns of that agreement are 

memorialized in the Asset Purchase Agreement ("APA") which is attached hereto as Exhibit"A" 

and incorporated in this Consent Judgment and Stipulation. 

2. Pursuant to the APA, and as additional consideration for entering into that 

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Agreement, the Parties have fully and finally compromised and settled any and all claims 

relating to this adion and all other known or unknown disputes or claims existing as of the date 

of the APA. 

It is, therefore, CONSIDERED, ORDERED, ADJUDGED AND DECREED by the 

Court that Plaintiff's Complaint and Amended Complaint and Defendant's Counterclaim are 

hereby dismissed with prejudice._All pending motions are deemed denied as moot. 

IT IS SO ORDERED. 

CAt...... }1r;~ < ~Cw-­ HON. SUSAN"WEBWwRI~r-'"''''':'-_-­ UNITED STATES DISTRICf JUDGE 

Date: J1L~ .2...-~ I Jo /0 

lsI Edward T. Oglesby 

Edward T. Oglesby (Ark. Bar No. 89158) 

Oglesby Law Firm 

100 Morgan Keegan Drive, Suite 100 

Little Rock., AR 72202 

Telephone: (501) 664-1000 

Facsimile: (501) 664-1012 

Email: Edward@oglesbylaw.com 

And 

lsi Jess Askew III 

Jess Askew III (Ark. Bar No. 86005) 

Stephen A. Hester (Ark. Bar No. 2002031) 

WILUAMS & ANDERSON PLC 

111 Center Street, Suite 2200 

Little Rock, AR 72201 

Telephone: (501) 372-0800 

Facsimile: (501) 372-6453 

Email: jaskew@Williamsanderson.com 

Email: shester@williamsanderson.com 

Attorneys for Luther S. Pate, IV 

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lsi Shelly Hogan Koehler 

. Shelly Hogan Koehler (Ark. Bar No. 2007275) 

Perroni & Koehler 

12511 Cantrell Road, Suite 100 

Little Rock, AR 72223 

Telephone: (501) 372-2070 

Facsimile: (501) 823-2198 

Email: shogan@perronilaw.com 

Attorneysfor GeffYielding 

Vespa Holdings, Inc. and 

Vespa Beverages, LLC 

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Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 3 of 83
AGREEMENT
 

THIS AGREEMENT (the "Agreement") is made and entered into as of the /1P'" day 

of March, 2010 ("Effective Date"), by and among PBEV, LLC a Delaware Limited Liability 

Company (UPBEV" or "Buyer"), Vespa Holdings. Inc.. an Arkansas corporation ("VHf"), 

Vespa Beverages, LLC, an Arkansas limited liability company ("VBL") and Geffrey A. 

Yielding, the controlling shareholder of VHI ("Yielding" and, collectively with VBL and VHI, 

herein the "Seller"), and Luther S. Pate IV ("Pate"). The Buyer, Pate and Seller, collectively. 

are referred to herein as the "Parties." 

WITNESSEm: 

WHEREAS, VHI currently has a total of Eleven Thousand (11,000) shares of common 

stock issued and outstanding; 

WHEREAS. Yielding is currently the owner of Ten Thousand (10.000) shares of 

common stock in VHI; 

WHEREAS, Pate is currently the owner of One Thousand (I,OOO) shares of common 

stock in VHI, and he has agreed to assign the said shares of stock to PBEV to facilitate this 

transaction; 

WHEREAS, VHI is the sole member and owner of a one hundred percent (100%) 

interest in VBL, which may sometimes operate under the asserted fictitious name of Vespa 

Beverages, Inc.; 

WHEREAS, Pate and Yielding are involved in a lawsuit with respect to the ownership of 

VHI and VBL, the assets ofVHI and VBL, and the production ofthe energy drink "Killer Buzz," 

pending in the United States District Court for the Eastern District of Arkansas, Luther S. Pate IV 

v. GeffYielding, et al., Case No. 4:09-CV-371SWW (the "Action"); 

WHEREAS, on May 28, 2009 at 9:30 a.m., the Court issued a Temporary Restraining 

Order in the Action. whereby Yielding and those acting in concert with him or on his behalf, 

were restrained from divesting shares, issuing any further shares, incurring any new 

indebtedness, or disposing of any other asset ofVHI or VBL; 

WHEREAS, on May 29, 2009 ("Removal Date"), the Court issued an Order in the 

Action, whereby Yielding was enjoined from taking action on behalf of VHI and VBL, and 

whereby Pate was authorized to direct the operations of VHI 'and VBL in order to preserve the 

business potential and assets ofVHI and VBL; 

WHEREAS, Pate has been directing the operations of VHI and VBL in accordance with 

the May 29, 2009 Court Order since the Removal Date; 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 4 of 83
WHEREAS, Seller desires to sell and Buyer desires to purchase certain assets of Seller 

on the terms and conditions herein set forth; 

WHEREAS, as additional consideration for entering into this Agreement, the Parties 

desire to fully and finally compromise and settle any and all claims relating to the abovereferenced Action and all other known or unknown disputes or claims existing as of the date 

hereof without resort to further litigation; 

WHEREAS, as additional consideration for entering into this Agreement, the Parties 

agree that VHI and VBL on one hand, and Bond Laboratories, Inc. and certain of its affiliated 

individuals and entities on the other, shall receive releases whereby the said parties shall 

mutually release each other from any and all claims relating to certain transactions; and 

WHEREAS, the Parties agree that the covenants, promises and agreements contained in 

this Agreement are conditional upon the entry of a Final Decree in the Action, the form of which 

final decree is attached hereto as Schedule "A". 

NOW, THEREFORE, in consideration of the mutual covenants, promises and 

agreements hereinafter set forth, and for other good and valuable consideration, the receipt and 

sufficiency of which are hereby acknowledged, Buyer and Seller, agreeing to be mutually bound 

by the terms and conditions herein, covenant and agree as follows: 

ARTICLE I 

PURCHASE AND SALE OF ASSETS 

1.1 Acquired Assets. Upon the terms set forth in this Agreement, and the 

performance by the Parties of their respective obligations hereunder, the Seller agrees to and 

does hereby sell, assign, transfer, and deliver to Buyer, and Buyer agrees to purchase from Seller, 

free and clear. of all liens, liabilities, security interests and encumbrances of any nature 

whatsoever (except as otherwise specified in this Agreement as specifically assumed by the 

Buyer), all of the assets and other claims, rights and interests owned by Seller in connection with 

its manufacture and distribution of the Killer Buzz energy drink (the "Business"). This shall 

include, but not be limited to: 

(i) All of the furniture, fixtures, and equipment listed on Schedule "B", which is 

attached hereto and incorporated herein by reference; 

(ii) The inventory, supplies and receivables; 

(iii) All books, records, files and customer information and lists relating 

Business; 

to the 

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(iv)	 All of Seller's right, title and interest in and to all intellectual and intangible 

property used in connection with the Business, including, but not limited to: 

A.	 The Killer Buzz recipe and the Killer Buzz mixing instructions; 

B.	 The federal trademark for the name Killer Buzz, which trademark 

bears United States Patent and Trademark Office Serial # 76627096; 

C.	 All common law trademarks, including without limitation the "KB" 

in the form set forth on the side ofthe currently existing Killer Buzz 

cans, and all other trade names, trademarks and trade dress; and 

D.	 All domain names and websites, including without limitation, 

KillerBuzz.com and KillerBuzz.net and all passwords, personal IDs, 

authorization codes, My Space, twitter and other social networking 

accounts, etc. with respect thereto; 

E.	 The telephone numbers 1-866-644-BUZZ (2899) and 1-501-753­

0369. 

(v)	 Seller's rights under and to any distribution contracts in effect as of the Effective 

Date; 

(vi)	 All of the Seller's vehicles described on Schedule "C" which is attached hereto 

and incorporated herein by reference; and 

(vii)	 Any and all other assets, rights, interests and attributes of the Seller necessary to 

continue the Business as a going concern without interruption. 

All of the assets, property, rights and interests described and referred to in this Section 1.1 and 

being sold hereunder are collectively referred to hereinafter as the " Assets." 

1.2 Excluded Assets. Notwithstanding the provisions of Section 1.1, the Assets to be 

purchased by Buyer under this Agreement shall not include those assets currently in the 

possession of Yielding, nor any assets which were left at the fonner offices of the Seller located 

at 8010 Counts Massie Road, North Little Rock, Arkansas on November 13, 2009 when the 

offices were relocated to Tuscaloosa, Alabama. 

1.3 No Assumed Liabilities. Except for those liabilities, liens, mortgages, security 

interests, encumbrances and claims set forth on the Schedule "D", which is attached hereto and 

incorporated herein by reference (the "Assumed Liabilities"), Buyer shall not assume any of the 

liabilities of Yielding, VHI or VBL and shall acquire the Assets free and clear of all liens, 

mortgages, security interests, encumbrances and claims. Other than the Assumed Liabilities, 

Seller represents and warrants that the Buyer shall not be or become liable for any claims, 

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demands, liabilities or obligations of any kind whatsoever arising out of or in any manner 

relating to the conduct of the Business by Yielding, VHI or VBL or the ownership or operation 

of the Assets on or prior to the Removal Date. Without limiting the foregoing, other than the 

Assumed Liabilities, the Buyer shall not assume or agree to perfonn, payor discharge, and 

Yielding, VHI or VBL shall retain and remain unconditionally liable for all obligations, 

liabilities and commitments of Yielding, VHI and VBL, whether fixed or contingent, including 

but not limited to: 

(i)	 Severance, tennination or other payments or benefits due to employees including 

accrued vacation pay; 

(ii)	 Workers' Compensation Claims for injuries or conditions arising on or prior to 

the Closing (regardless ofwhen such claim is asserted); 

(iii)	 Liabilities for any federal, state, or local taxes of any nature owed by or asserted 

against VHI, VBL or Yielding except for such liabilities arising from the 

operation ofthe VBL after the Removal Date which liabilities are hereby assumed 

by the Buyer; 

(iv)	 Liabilities incurred in connection with violations of occupational safety, wage, 

health, welfare, and employee benefit laws or regulations; 

(v)	 Any liabilities of Yielding, VHI or VBL to third parties or other persons arising 

out of the failure of Yielding, VHI or VBL to obtain any necessary consents or 

approvals of the sale of the Assets to the Buyer (including damages asserted by 

third parties for breach due to the failure to obtain such consents or approvals); 

(vi)	 Any undisclosed or contingent liabilities of Yielding, VHI or VBL; 

(vii)	 Other than liabilities assumed pursuant to the distribution contracts and the 

indebtedness owed on any vehicles, any liabilities related to borrowed funds or to 

creditors (including without limitation contractors and trade creditors) of 

Yielding, VHI and VBL; 

(viii)	 Other than liabilities assumed pursuant the tenns ofthis Agreement, any liabilities 

related to the conduct of the Business or operation or servicing of the Assets for 

any period prior to the Closing; and 

(ix)	 Any other liabilities of any kind or nature whether now in existence or hereafter 

arising. 

1.4 Purchase Price. As consideration for the purchase of the Assets, Buyer shall 

deliver and tender to Seller the following, as applicable: 

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(i)	 The right, title and interest in and to the One Thousand (1,000) shares of 

VHI stock owned by Buyer. 

(ii)	 The assumption of indebtedness owed by Seller to Pate. 

(iii)	 The assumption of an attorney's fees claim and litigation expenses that 

Pate asserts against Seller. 

(iv)	 The assumption of reasonable compensation owed by VHI and VBL to 

Pate for services rendered from the Removal Date through Closing in 

managing the day-to-day operation of the Business pursuant to the May 

29,2009 Court Order in the Action. 

(v)	 A release and discharge of VHI and VBL from claims of Bond 

Laboratories, Inc. 

(vi)	 The assumption of the indebtedness owed by Seller to Bond Laboratories, 

Inc. in excess of $175,000 assigned by Bond Laboratories, Inc. to Pate in 

the Settlement Agreement dated November 3,2009. 

(vii)	 The assumption of the indebtedness owed by VHI and VBL owed to 

Pearce, Bevill, Leesburg and Moore, PC. 

(viii)	 The assumption of VBL's lawfully incurred operating expenses from the 

removal date to the closing date. 

(ix)	 The assumption ofthe VBL's payroll tax liability from the removal date to 

the closing date. 

(x)	 A cash payment in an amount equal to One Hundred Sixty Thousand 

Dollars and 00/100 ($160,000.00). 

ARTICLE II
 

REPRESENTATIONS AND WARRANTIES OF SELLER.
 

In order to induce Buyer to enter into this Agreement, Seller hereby makes the following 

representations and warranties to Buyer: 

2.1 Organization of the VHI. VHI is a corporation duly organized, validly existing, 

and in good standing under the laws ofthe State ofArkansas. 

2.2 Organization of VBL. VBL is a limited liability company duly organized, 

validly existing, and in good standing under the laws ofthe State ofArkansas. 

2.3	 Authorization of Transaction. Upon entry of a Final Decree in the Action, 

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Seller represents and warrants that it has full power and authority to execute and deliver this 

Agreement and to perfonn its obligations hereunder. This Agreement constitutes the valid and 

legally binding obligation ofthe Seller, enforceable in accordance with its tenns and conditions. 

2.4 No Conflict. The execution and delivery of this Agreement will not, directly or 

indirectly (with or without notice or lapse of time): (i) contravene, conflict with, or result in a 

violation of (A) any provision of the organizational documents of VHI and VBL, or (B) any 

resolution adopted by the board of directors, members, managers or the shareholders of VHI and 

VBL, as applicable; (ii) contravene, conflict with, or result in a violation of, any agreements to 

which Seller, individually or collectively, is a party; (iii) give any person or entity the right to 

challenge the transactions contemplated by this Agreement or to exercise any remedy or obtain 

any relief under any laws to which the Assets or Business may be subject; (iv) cause Buyer to 

become subject to, or to become liable for, the payment of any tax except as expressly assumed 

in this Agreement; or (v) result in the imposition or creation of any lien upon or with respect to 

any ofthe Assets or the Business. 

Seller is not required to give any notice to or obtain any consent from any person or 

entity by reason of the execution and delivery of this Agreement or the consummation or 

perfonnance ofany transaction contemplated by this Agreement. 

2.5 I!!I!. Upon Closing, Seller represents and warrants that it has good and 

marketable title to all of the Assets free and clear of all liens, liabilities, security interests, 

leasehold interests and encumbrances of any nature whatsoever ( except as expressly stated and 

assumed by the Buyer in this Agreement), and can transfer the Assets without the prior approval 

ofany third party. 

2.6 Good Working Order. All inventory, fixtures, furniture and furnishings, 

appliances and equipment now owned, operated and being used by Seller in the conduct of the 

Business, are in good working order and condition. 

2.7 Taxes. Seller has paid or will pay all income, self-employment, Social Security, 

withholding, unemployment insurance and sales taxes which are due and owing but unpaid to 

any applicable city, state and federal government to date, if any, which could affect the Assets or 

the Business and, further, Seller shall pay all taxes incurred by it in connection with this 

Agreement. 

2.8 Brokers' Fees. Seller has no liability to pay any fees or commissions to any 

broker, finder, or agent with respect to the transactions contemplated by this Agreement. 

2.9 Undisclosed Liabilities. Seller has disclosed all liabilities and obligations in this 

Agreement, and there are no undisclosed liabilities or obligations ofthe Seller. 

2.10 Legal Compliance. Prior to the Removal Date, Yielding never operated and 

managed VHI and VBL in a manner that resulted in the violation of any law, rule or regulation 

of any applicable city, state or federal governmental or regulatory authority, which,could subject 

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the Buyer to liability as the successor owner of the Assets and Business, or could put at risk the 

Buyer's ownership and possession ofthe Assets and the Business. 

2.11 Compliance with Agreements. At all times prior to the Removal Date, Seller 

was in compliance with all laws, rules, regulations, covenants and warranties connected with any 

agreement to which Seller is or was a party. 

2.12 Liens or Litigation. There are no existing or threatened tax or judgment liens 

which will continue to, or may in the future, affect the Assets or the Buyer's operation of the 

Business upon the completion of the transactions described in this Agreement. Except for the 

Action, Seller is not (i) subject to any outstanding injunction, judgment, order, decree, ruling, or 

charge, or (ii) a party or threatened to be made a party to any legal proceeding. 

2.13 Yielding Actions. Yielding hereby represents and warrants that he has not 

perfonned any act on behalf of or in connection with VHI or VBL since the Removal Date, nor 

has he taken any action with regard to the Assets or Business. 

2.14 Employment Agreements. There is no agreement or contract, whether written or 

oral, entered into by Seller prior to the Removal Date between the Seller and any employee, 

officer, consultant, agent or other person pertaining to the Business which cannot be tenninated 

upon 30 days' written notice without liability. 

2.15 Termination of Employees. All employees ofVHI and VBL shall be tenninated 

effective as ofthe Closing Date as defined in Article VIII. 

2.16 Certain Payments. Prior to the Removal Date, neither Seller, nor any director, 

manager, member, shareholder, officer, agent, or employee of Seller, or any other person or 

entity associated with or acting for or on behalf ofSeller, had directly or indirectly established or 

maintained any fund or asset that has not been recorded in the books and records ofthe Seller. 

2.17 No Reliance. Seller is not relying on any oral representation or warranty of 

Buyer or any other person or entity, and is relying only on the written representations and 

warranties of Buyer set out herein. 

2.18 Disclosure. The representations and warranties contained in this Article II do not 

contain any untrue statement of a material fact or omit to state any material fact necessary in 

order to prevent the statements and infonnation contained in this Article II from being 

misleading. 

2.19 ContinUing Effect. The representations and warranties of Seller set out in this 

Article II shall continue to be true at all times through and including the Closing Date, except to 

the extent that Seller specifically notifies Buyer in writing to the contrary prior thereto. 

2.20 Operation of Business. Seller represents and warrants that there is no claim or 

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demand that can be made, nor is any claim or demand threatened, by any third party, relating to 

actions of the Seller, or any director, manager, member, shareholder, officer, agent, or employee 

of Seller, or any other person or entity associated with or acting for or on behalf of Seller, which 

could effect the Buyer's ability to purchase the Assets free and clear of any claims and to freely 

operate the Business upon the completion ofthe transactions provided for in this Agreement. 

ARTICLE III
 

REPRESENTATIONS AND WARRANTIES OF BUYER.
 

In order to induce Seller to enter into this Agreement, Buyer hereby makes the following 

representations and warranties to Seller: 

3.1 Organization ofthe PBEV. PBEV is a limited liability company duly organized, 

validly existing, and in good standing under the laws ofthe State ofDelaware. 

3.2 Authorization of Transaction. Buyer has full power and authority to execute 

and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes 

the valid and legally binding obligation of the Buyer, enforceable in accordance with its terms 

and conditions. 

3.3 No Conflict. To the knowledge of Buyer, neither the execution and delivery of 

this Agreement nor the consummation or performance of the transactions contemplated by this 

Agreement will, directly or indirectly (with or without notice or lapse of time) contravene, 

conflict with, or result in a violation of, or give any person or entity the right to challenge any of 

the transactions contemplated by this Agreement or to exercise any remedy or obtain any relief 

under any laws to which Buyer may be subject. 

3.4 Brokers' Fees. The Buyer has no liability to pay any fees or commissions to any 

broker, finder, or agent with respect to the transactions contemplated by this Agreement. 

3.5 Hiring of Employees. Buyer shall consider offering "at will" employment to 

Seller's employees. 

3.6 No Reliance. Buyer is not relying on any oral representation or warranty of 

Seller or any other person or entity, and is relying only on the agreements and written 

representations and warranties ofSellerset out herein. 

3.7 Continuing Effect. The representations and warranties of Buyer set out in this 

Article III shall continue to be true at all times through and including Closing, except to the 

extent that Buyer specifically notifies Seller in writing to the contrary prior thereto. 

ARTICLE IV
 

CONDITIONS PRECEDENT
 

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4.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under 

this Agreement shall be subject to the fulfillment of the following conditions precedent; 

provided, however, that Buyer may conditionally or unconditionally waive anyone or more of 

the conditions: 

(i)	 Representations and Warranties. Each of the representations and warranties of 

Seller contained in this Agreement shall be true as ofthe Closing Date. 

(ii)	 Covenants. Seller shall have complied with, fulfilled and performed each of the 

covenants, terms and conditions to be complied with, fulfilled or performed by 

Seller under this Agreement on or prior to the Closing Date. 

(iii)	 Litigation. No order, decree or ruling of any governmental authority or court 

shall have been entered and no governmental or other action, suit, claim, 

investigation or proceeding shall be pending or threatened challenging: (a) the 

ownership of Seller or Business, or (b) the legality or validity of the transactions 

contemplated hereby. 

(iv)	 Required Consents and Approvals. Buyer shall have received delivery, upon 

terms and conditions reasonably satisfactory to it, of all of the Seller's required 

consents and approvals. 

(v)	 No Adverse Change. There shall have been no material adverse change in the 

condition (financial, physical or otherwise) ofthe operations, business, licenses or 

prospects ofVHI, VBL or the Business. 

(vi)	 Termination of Employment and Business. Effective as of the Closing Date, VBI 

and VaL shall have terminated all of their respective employees engaged in work 

related to the Assets or Business, and the Seller shall cease to conduct the 

Business. After the Closing Date, Pate shall be and is hereby authorized to have 

the state and federal income tax. returns prepared for VBI and VBL for the years 

2009 and 20 I0, and Pate shall be and is hereby authorized to sign the same on the 

behalf of the said companies and file them with the IRS and such states in which 

the filing of returns are necessary. Pate shall be and is authorized to file such tax 

returns as may be necessary concerning employee wages and any other necessary 

jurisdiction returns or reports since the Removal Date. Pate and Yielding 

specifically elect and consent to an alternative method of allocation for the VBI 

tax items pursuant to Section 1377 of the Internal Revenue Code and the 

regulations promulgated thereunder for the 2010 tax year. 

(vii)	 Lien Searches. The Buyer shall have received lien searches from such recording 

offices as Buyer shall deem necessary in its sole discretion, and such lien searches 

shall not evidence any liens on the Assets. 

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(viii)	 Non-Competition Agreement. At the Closing, Yielding shall have executed a 

Non-Competition and Confidentiality Agreement in the fonn attached as 

Schedule "E". 

(ix)	 Sales Tax Clearance Letter. Buyer shall have received a Sales Tax Clearance 

letter with respect to VHf and VBL from the Arkansas Department of Finance & 

Administration. 

(x)	 Final Decree. The receipt of a file-marked Final Decree in connection with the 

Action. 

(xi)	 Closing Deliveries. Buyer shall have received from Seller all of the instruments, 

documents and considerations described herein and the fonn and substance of all 

such materials shall be satisfactory in all reasonable respects to Buyer and 

Buyer's counsel. 

4.2 Conditions Precedent to Seller's Obligations. The obligations of Seller under 

this Agreement shall be subject to the fulfillment of the following conditions precedent; 

provided, however, that Seller may conditionally or unconditionally waive anyone or more of 

the conditions: 

(i)	 Representations and Warranties. Each of the representations and warranties of 

Buyer contained in this Agreement shall be true as ofthe Closing Date. 

(ii)	 Covenants. Buyer shall have complied with, fulfilled and perfonned each of the 

covenants, tenns and conditions to be complied with, fulfilled or perfonned by 

Buyer under this Agreement on or prior to the Closing. 

(iii)	 Litigation. No order, decree or ruling of any governmental authority or court 

shall have been entered and no governmental or other third-party action, suit, 

claim, investigation or proceeding shall be pending or, to the knowledge of Buyer, 

threatened challenging the legality and validity of the transactions contemplated 

hereby. 

(iv)	 Required Consents and Approvals. Seller shall have received delivery, upon 

tenns and conditions satisfactory to it, of all of the Buyer's required consents and 

approvals. 

(v)	 Final Decree. The receipt of a file-marked Final Decree in connection with the 

Action. 

(vi)	 Closing Deliveries. Seller shall have received from Buyer all of the instruments, 

documents and considerations described herein, and the fonn and substance of all 

such materials shall be satisfactory in all reasonable respects to Seller and its 

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counsel. 

ARTICLE V
 

TERMINATION OF AGREEMENT
 

S.1 Manner of Termination. This Agreement and the transactions contemplated hereby 

may be tenninated at any time prior to the Closing as provided below: 

(i)	 By the mutual consent ofthe Parties hereto; 

(ii)	 By Buyer, if there has been a material misrepresentation, a material breach of 

warranty or a failure to comply with any material covenant on the part of Seller, 

and such misrepresentation, breach or failure to perfonn has not been cured 

within ten (10) days ofthe date notice ofsuch misrepresentation, breach or failure 

to perfo~ is delivered by Buyer to Seller; or . 

(iii)	 By Seller, if there has been a material misrepresentation, a material breach of 

warranty or a failure to comply with any material covenant on the part of Buyer, 

and such misrepresentation, breach or failure to perfonn has not been cured 

within ten (10) days ofthe date notice ofsuch misrepresentation, breach or failure 

to perfonn is delivered by Seller to Buyer. 

S.2 Effect of Termination. Upon tennination as provided in Section 5.1 (ii) or (iii), 

the tenninating party may pursue any and all remedies available to it at law or in equity. Upon 

tennination as provided in Article 5.1(i) this Agreement shall be void and of no further force or 

effect, and there shall be no further obligation on the part of Buyer or Seller or their respective 

officers, directors, employees, agents, or shareholders. 

ARTICLE VI
 

INDEMNIFICATION
 

6.1 Seller's Indemnltv. Subject to Section 6.3 hereof, Seller agrees to indemnify and 

defend Buyer against, and in respect of, any and all third-party claims, demands, losses, damages 

and expenses, including, but not limited to, reasonable attorneys' fees (collectively, "Losses"), 

which Buyer shall incur or suffer, which arise, result from, or relate to any default, breach or 

violation of, or inaccuracy in, or failure by the Seller to perfonn any of its representations, 

warranties, or agreements in this Agreement or in any other instrument furnished or to be 

furnished under this Agreement. 

6.2 Buyer's Indemnity. Subject to Section 6.3 hereof, Buyer hereby agrees to 

indemnify and defend Seller against, and in respect of, any and all third-party claims, demands, 

losses, damages and expenses, including, but not limited to, reasonable attorney's fees 

(collectively, "Losses''), which the Seller shall incur or suffer, which arise, result from, or relate 

to any default, breach or violation of, or inaccuracy in or failure by Buyer to perfonn any of its 

11
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 14 of 83
representations, warranties, or agreements in this Agreement or in any other instrument furnished 

or to be furnished under this Agreement. 

6.3 Limitations. No Party shall be liable for any claim for indemnification hereunder 

unless written notice of a claim for indemnification is delivered by the Party seeking 

indemnification to the Party from whom indemnification is sought with respect to any such 

breach before the survival date specified in Section 9.1 hereof. All notices shall set forth with 

reasonable specificity the basis for such claim for indemnification. Notwithstanding anything in 

this Agreement to the contrary, neither Party shall assert any claim against the other for 

indemnification hereunder with respect to any breach of such warranties or representations 

unless and until the amount of such claim or claims shall exceed Five Thousand Dollars ($5,000) 

calculated on a cumulative basis, and then only in respect to the excess over said cumulative 

amount. 

6.4 Defense of Third Party Claims. The obligations of the Seller and Buyer with 

respect to their respective indemnities hereunder resulting from any claim or other assertion of 

liability by third parties (hereinafter collectively, "Third Party Claim(s)"), shall be subject to the 

following tenns and conditions: 

(i)	 The Party seeking indemnification (the "Indemnified Party") shall give written 

notice of any such Third Party Claim to the Party from whom indemnification is 

sought (the "Indemnifying Party") within a reasonable time after the Indemnified 

Party receives notice thereof; provided, however, the failure to give notice timely 

shall not affect the Indemnifying Party's obligation hereunder except to the extent 

that such failure prejudices the Indemnifying Party or its ability to defend such 

Third Party Claims. 

(ii)	 The Indemnifying Party shall have the right to undertake, at its own expense, with 

counsel or other representatives of its own choosing and reasonably acceptable to 

the Indemnified Party, the defense or settlement of any such Third Party Claim. 

(iii)	 In the event that the Indemnifying Party shall have the right to undertake the 

defense of any Third Party Claim, but shall fail to notify the Indemnified Party 

within ten (l0) Business Days of receipt of the notice that it has elected to 

undertake such defense or settlement, or if at any time the Indemnifying Party 

shall otherwise fail to diligently defend or pursue settlement of such claim, then 

the Indemnified Party shall have the right to undertake, at the Indemnifying 

Party's expense, the defense, compromise, or settlement of such claim, subject to 

Section 6.4(iv), with counsel reasonably acceptable to the Indemnifying Party. 

(iv)	 Neither Party shall settle any Third Party Claim without the prior written consent 

of the other Party, which consent shall not be unreasonably withheld or delayed. 

In the event the Indemnifying Party submits to the Indemnified Party a bona fide 

settlement offer from the third party claimant of any Third Party Claim (which 

12 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 15 of 83
settlement offer shall include as an unconditional term thereof the giving by the 

claimant or the plaintiff to the Indemnified Party of a release from all liability in 

respect of such claim), and the Indemnified Party refuses to consent to such 

settlement, then thereafter the Indemnifying Party's liability to the Indemnified 

Party for indemnification hereunder with respect to such Third Party Claim shall 

not exceed the settlement amount included in said bona fide settlement offer, and 

the Indemnified Party shall either assume the defense of such Third Party Claim 

or pay the Indemnified Party's attorney fees and other out-of-pocket costs 

incurred thereafter in continuing the defense ofsuch claim. 

(v)	 Regardless of which Party is conducting the defense of any such Third Party 

Claim, the other Party, with counselor other representatives of its own choosing 

and at its sole cost and expense, shall have the right to consult with the Party 

conducting the defense of such claim and its counselor other representatives 

concerning such claim, and the Indemnifying Party and the Indemnified Party and 

their respective counselor other representatives shall cooperate with respect to 

such claim, and the Party conducting the defense of any such claim and its 

counsel shall in any case keep the other Party and its counsel (if any) fully 

informed as to the status of any claim and any matters relating thereto. Each 

Party shall provide to the other Party such records, books, documents and other 

materials as shall reasonably be necessary for such Party to conduct or evaluate 

the defense of any Third Party Claim and will generally cooperate with respect to 

any matters relating thereto. 

(vi)	 Any amount of an Indemnified Party's indemnification costs that become due 

with respect to Third Party Claims, whether or not through settlement or 

adjudication, including periodic costs to defend any claim or demand, shall be 

paid promptly by the Indemnifying Party within thirty (30) days after written 

demand therefore. 

ARTICLE VII
 

RELEASES
 

7.1 Release of Claims by Buyer. As additional consideration to the Seller for 

entering into this Agreement, Buyer and Pate and their respective heirs, successors and assigns, 

hereby agree and acknowledge that by Buyer entering into this Agreement and accepting the 

good and valuable consideration provided for in this Agreement, to which Buyer is not otherwise 

entitled, and upon Seller satisfying all requirements set forth in this Agreement, Buyer 

knowingly, voluntarily, irrevocably and unconditionally releases and forever discharges 

Yielding, individually, and VHI and VBL and their parent, affiliates, divisions, subsidiaries and 

other related entities, and his and their respective officers, shareholders, managers, members, 

directors, employees, agents, successors, assigns, estate, and heirs ("Seller Releasees"), of any 

and all claims, complaints, charges, allegations, demands or causes of action of any kind 

whatsoever, whether in law or in equity, direct or indirect, known or unknown, in tort, contract, 

13
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 16 of 83
by statute or any other basis for relief, compensatory, punitive or other damages, expenses 

(including attorney's fees), reimbursements or costs of any kind, which the Buyer ever had, now 

has, or hereafter can, shall or may have or assert against Seller Releasees for any matter, cause or 

thing relating to the Business or the Assets, which may have occurred before the Effective Date 

ofthis Agreement. 

7.2 Release of Claims by Seller. As additional consideration to the Buyer for 

entering into this Agreement, Yielding, individually, VHI and VBI and their parents, affiliates, 

divisions, subsidiaries and other related entities, and his and their respective officers, 

shareholders, managers, members, directors, employees, agents, successors, assigns, estate, and 

heirs ("Seller Releasors"), hereby agree and acknowledge that by Seller entering into this 

Agreement and accepting the good and valuable consideration provided for in this Agreement, to 

which Seller is not otherwise entitled, and upon closing, Seller Releasors knowingly, voluntarily, 

irrevocably and unconditionally release and forever discharge Buyer and Pate and their 

respective heirs, successors and assigns ("Buyer Releasees"), of any and all claims, complaints, 

charges, allegations, demands or causes of action of any kind whatsoever, whether in law or in 

equity, direct or indirect, known or unknown, in tort, contract, by statute or any other basis for 

relief, compensatory, punitive or other damages, expenses (including attorney's fees), 

reimbursements or costs of any kind, which Seller Releasors ever had, now have, or hereafter 

can, shall or may have or assert against the Buyer Releasees, or anyone of them, for any matter, 

cause or thing relating to the Business or Assets, which may have occurred before the Effective 

Date ofthis Agreement. 

7.3 Bond Release. As additional consideration for entering into this Agreement, 

Yielding hereby agrees to execute a Release, the form of which is attached hereto as Schedule 

"F", and which is incorporated herein by reference, whereby VHI and VBL will release Bond 

Laboratories, Inc. and certain other affiliated individuals and entities from any and all claims 

relating to transactions that were the subject of certain court proceedings in Arkansas and 

California. 

7.4 Limitation. The Parties hereby acknowledge and agree the releases described in 

this Article VII shall not apply to any default, breach or violation of, or inaccuracy in, or failure 

by a Party to perform any of its representations, warranties, or agreements in this Agreement or 

in any other instrument furnished or to be furnished under this Agreement. 

ARTICLE VIII
 

CLOSING
 

8.1 Closing Date, Etc. The transactions contemplated hereby shall be consummated 

at a closing (the "Closing") to be held at the offices of Williams & Anderson, PLC, Suite 2200, 

III Center Street, Little Rock, Arkansas at 10:00 a.m., on March 8, 2010, or at such other place 

and time as the Parties hereto may jointly designate (the "Closing Date"). Legal title, equitable 

title and risk of loss with respect to the property and rights transferred hereunder shall pass at 

12:01 a.m. on the Closing Date. 

14 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 17 of 83
8.2	 Deliveries at Closing. 

(i)	 Deliveries by Buyer. At the Closing, Buyer shall deliver or cause to be delivered 

to Seller the following: 

(a)	 Resolutions. A Resolution executed by the members of PBEV approving 

the transactions to be carried out pursuant to this Agreement, attached as 

Schedule "G"; 

(b)	 Purchase Price. The Purchase Price in immediately available funds by 

wire transfer; 

(c)	 Bring Down Certificate. A certificate dated the Closing Date and 

executed by Buyer to the effect that each of the representations and 

warranties of Buyer contained in this Agreement or in any written 

statement or certificate relating thereto delivered to Seller is true and 

correct in all material respects on and as of such date, attached as 

Schedule "8"; 

(d)	 Stock Power. An executed Irrevocable Stock Power assigning ownership 

of Pate's One Thousand (1,000) shares ofVHI to PBEV, then an executed 

Irrevocable Stock Power assigning the said One Thousand (1,000) shares 

from PBEV to Yielding; 

(e)	 Bond Release. A Release executed by Bond Laboratories, Inc. and other 

affiliated individuals and entities (collectively, the "Bond Entities"), 

whereby the Bond Entities release and discharge VBL and VHI from all 

claims attached as Schedule "I"; and 

('0	 Other. Such other documents and instruments as Seller may reasonably 

request. 

(ii)	 Deliveries by Seller. At the Closing, Seller shall deliver to Buyer the following: 

(a)	 Resolutions. A Resolution executed by the shareholders of VHf 

approving the transactions to be carried out pursuant to this Agreement, 

and a Resolution executed by the sole member of VBL approving the 

transactions to be carried out pursuant to this Agreement. Attached as 

Schedule "J". 

(b)	 Bring Down Certificates. A certificate dated the Closing Date executed by 

Yielding, VHI and VBL to the effect that each of the representations and 

warranties of Seller contained in this Agreement or in any written 

15 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 18 of 83
statement or certificate delivered to Buyer at Closing are true, accurate and 

complete in all material respects on and as of the Closing Date. Attached 

as Schedule "K" and "L". 

(c)	 Non-Competition and Non-Disclosure Agreement. An executed copy of 

the Non-Competition and Non-Disclosure Agreement attached as 

Schedule E. 

(d)	 Bills of Sale. The following Bills of Sale executed by Yielding, VHI and 

VBL: 

(i)	 Bill of Sale and Assignment of Federal Trademark in the 

form attached hereto as Schedule "M". 

(ii)	 Bill of Sale and Assignment ofGoodwill and All Intangible 

Property in the form attached hereto as Schedule "N". 

(iii)	 Bill of Sale and Assignment of Trade Secrets in the form 

attached hereto as Schedule "0". 

(iv)	 Bill of Sale and Assignment of Domain Names and Web 

Addresses in the form attached hereto as Schedule "P". 

(v)	 Bill of Sale and Assignment for furniture. fixtures, 

equipment, inventory and supplies in the form attached 

hereto as Schedule "B". 

(vi)	 Bill of Sale in the form attached hereto as Schedule "C". 

for the vehicles identified on Schedule "C" attached hereto 

and an Irrevocable Power of Attorney authorizing Buyer to 

execute transfer of Certificates of Titles on the said 

vehicles. 

(e)	 Assignment of Contracts. An executed copy of an Assignment of 

Contracts, the fonn ofwhich is attached hereto as Schedule "Q". 

(f)	 Bond Release. A Release executed by VHI and VBL in favor of the Bond 

Entities, the form ofwhich is attached hereto as Schedule "I". 

(g)	 Sales Tax Clearance Letters. Sales Tax Clearance Letters with respect to 

VHI and VBL from the Arkansas Department of Finance & 

Administration. 

(h)	 Other. Such other documents and instruments as Buyer may reasonably 

16 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 19 of 83
request. 

(i) The Killer Buzz recipes and mixing instructions. 

ARTICLE IX
 

MISCELLANEOUS
 

9.1 Survival of Representations and Warranties. The representations and 

warranties contained in this Agreement and all other terms and conditions shall survive for a 

period ofthree (3) years following the Closing Date. 

9.2 Entire Agreement. This Agreement, including the documents attached hereto or 

referred to herein, contains the entire understanding and agreement of the Parties with respect to 

the subject matter hereof and shall not be amended or terminated except by written instrument 

duly executed by the Parties. Any and all previous agreements or understandings between the 

Parties regarding the subject matter hereof are superseded in their entirety by this Agreement. 

9.3 Assignability; Binding Effect; No Third-Party Beneficiaries. This Agreement 

shall not be assignable by any of the Parties except with the written consent of all the other 

Parties. This Agreement shall be binding upon and shall inure to the benefit ofthe Parties hereto 

and their respective successors, heirs, and permitted assigns. No parties other than Buyer, Pate 

and Seller shall have any rights by virtue of this Agreement. Notwithstanding the foregoing, 

Buyer is permitted to assign its rights by virtue of this Agreement to any entity in which it or 

Pate have an ownership interest. 

9.4 Notices. All notices, requests, demands, waivers, consents, approvals, or other 

communications which are required under or permitted hereunder shall be in writing and 

delivered personally or by registered or certified mail, postage prepaid, as follows: 

If to Buyer:	 PBEV,LLC
 

c/o W. Cameron Parsons
 

The Parsons Firm, P.C.
 

2201 Jack Warner Parkway, Suite 2
 

Tuscaloosa, AL 35401
 

with a copy to:	 Jess Askew III
 

Williams & Anderson PLC
 

III Center Street, Suite 2200
 

Little Rock, AR 72201
 

Ifto Seller: ?EjZ;iZ.ot.ll .. t:'t:E.~ L~12
 \Ull c.a~T'2E:lL 'ttl>. SM~ 'u
 

L"'\l.,,~ ~,.'- "')1,1,:1:3
 

17 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 20 of 83
or at such other address as the party entitled to receive such notice maYt from time to timet 

specify in a writing which conforms with the requirements ofthis paragraph. 

9.S Arkansas Law to Govern. This Agreement shall be interpreted in accordance 

with the laws ofthe State ofArkansas. 

9.6 Article Headings. All section headings herein have been inserted for 

convenience of reference only and shall in no way modify or restrict any of the terms or 

provisions hereof. 

9.7 Modification; Waivers. This Agreement may not be amended or modified, nor 

may compliance with any condition or covenant set forth herein be waived, except by a writing 

duly and validly executed by the Parties ort in the case of a waiver, the Party waiving 

compliance. No delay on the part of any Party in exercising any right, power or privilege 

hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any 

such right, power or privilege, or any single or partial exercise of any such rightt power or 

privilege, preclude any further exercise thereof or the exercise of any other such rightt power or 

privilege. 

9.8 Schedules. All Schedules attached hereto or referred to in this Agreement are 

intended to be and are hereby specifically incorporated herein by reference. 

9.9 Further Actions and Assurances. Each ofthe Parties shall execute and deliver 

such additional documents and shall cause such further and additional action to be takent either 

before or after Closing, which either ofthe Parties may reasonably require in order to effectuate 

the terms of this Agreement. Upon the incarceration of Yielding, Yielding hereby grants to Pate 

his power of attorney to execute such documents as may be reasonably necessary to satisfy the 

obligations of the Seller under this Agreement, including, but not limited to, tax returns for the 

VHI and VBL and documents related to the transfer oftide ofthe vehicles. 

9.10 Authority. Each of the undersigned personally warrants and represents his 

individual authority to sign this Agreement on behalfofthe party for which it is signed. 

9.11 Cooperation. Seller shall cooperate with Buyer and its representatives to obtain 

all governmental approvals necessary or appropriate in connection with the acquisition and 

operation of the Assets and Business and do such other acts and things in good faith as may be 

reasonablet necessary or appropriate in order to timely effectuate the intents and purposes ofthis 

Agreement and the consummation ofthe transactions contemplated hereby. 

9.12 Severability. In the event that any provision or any portion of any provision of 

this Agreement shall be held to be void or unenforceable, then the remaining provisions of the 

Agreement (and the remaining portion of any provisions held to be void or unenforceable in part 

only) shall continue in full force and effect. 

18 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 21 of 83
9.13 Arbitration. Any controversy or claim arising out of, or relating to this 

Agreement, or the breach thereof, shall be settled by binding arbitration in accordance with the 

commercial arbitration roles then in effect of the American Arbitration Association, and 

judgment upon the award rendered may be entered in any court having jurisdiction thereof. The 

arbitration proceedings shall be conducted in the metropolitan area of Birmingham, Alabama. 

The Buyer, Pate and the Seller shall select an arbitrator from a list provided by the American 

Arbitration Association that is mutually satisfactory to them. If the Buyer, Pate and the Seller 

are unable to agree on an arbitrator, the Seller, Pate and the Buyer shall each choose an arbitrator 

from the list provided by the American Arbitration Association. The two arbitrators so selected 

shall then agree upon a third arbitrator who shall be the single arbitrator to hear the dispute and 

decide it. The award of the arbitrator shall be binding and final on all Parties. Any and all legal, 

accounting and other costs and expenses incurred by the prevailing party shall be borne by the 

non-prevailing party. 

9.14 Recitals. All recitals set forth in this Agreement are contractual and are not 

merely recitals of fact. 

9.15 Counteroarts; Facsimile. This Agreement and any amendments hereto may be 

executed in one or more counterparts, by facsimile signature or otherwise, each of which shall be 

deemed to be an original by the Parties executing such counterpart, but all of which shall be 

considered one and the same instrument. 

9.16 Construction. The Parties have participated jointly in the negotiation and 

drafting of this Agreement. In the event an ambiguity or question of intent or interpretation 

arises, this Agreement shall be construed as ifdrafted jointly by the Parties, and no presumption 

or burden ofproofshall arise favoring or disfavoring any Party by virtue ofthe authorship ofany 

of the provisions of this Agreement. The word "including" shall mean including without 

limitation, and the word "include" shall mean include without limitation. The Parties intend that 

each representation, warranty, and covenant contained herein shall have independent 

significance. If any Party has breached any representation, warranty, or covenant contained 

herein in any respect, the fact that there exists another representation, warranty, or covenant 

relating to the same subject matter (regardless of the relative levels of specificity) which the 

Party has not breached shall not detract from or mitigate the fact that the party is in breach of the 

first representation, warranty, or covenant. 

9.17 Joint and Several Liability. The liability of VHI, VBL and Yielding with 

respect to the Representations and Warranties set forth in Section 1.3 and Article II shall be joint 

and several. 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and 

delivered on the day and year first above written. 

BUYER: SELLER: 

19 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 22 of 83
PBEVtLLC VESPA HOLDINGS, INC. 

L~---'~ Its: Manager Its: President 

20
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 23 of 83
VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

By: ~~:.\ll>_ Ge re . IdiAg~

Its: President 

Luther S. Pate IV) Individually 

21
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 24 of 83
VESPA BEVERAGES, LLC 

By: Vespa Holdings, Ine. 

Its: Sole Member 

By: _ 

Geffrey Yielding 

Its: President 

Geffrey Yielding, Individually 

20
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 25 of 83
SCHEDULE "B" 

BILL OF SALE AND ASSIGNMENT 

This BILL OF SALE AND ASSIGNMENT (the "Assignment"), is made as of March 

.I:!l-, 2010, from Vespa Holdings, Inc., an Arkansas corporation ("VHr), Vespa Beverages, 

LLC, an Arkansas limited liability company ("VBL") and Geffrey A. Yielding, (collectively, the 

"Sellers"), to PBEV, LLC, a Delaware limited liability Company ("Buyer"). 

WITNESSETH: 

WHEREAS, VHI currently has a total of Eleven Thousand (11,000) shares of common 

stock issued and outstanding; 

WHEREAS, Yielding is currently the owner of Ten Thousand (10,000) shares of 

common stock in VHI; 

WHEREAS, VHI is the sole member and owner of a one hundred percent (100%) 

interest in VBL, which may sometimes operate under the asserted fictitious name of Vespa 

Beverages, Inc.; 

WHEREAS, Seller has been engaged in the business ("Business") of manufacturing and 

distributing liquid beverages, specifically including, but not limited to, the manufacture and 

distribution of the Killer Buzz energy drink; 

WHEREAS, Company has agreed to purchase and Seller has agreed to sell, substantially 

all of the assets used in the Business (the ''Assets") pursuant to an Asset Purchase Agreement 

executed of even date herewith (the "Asset Purchase Agreemenf'); 

WHEREAS, it is the purpose of Seller hereunder to sell and transfer the property 

described in the Agreement to the Buyers; and 

WHERAS, unless the context clearly indicates otherwise, capitalized terms used herein 

and in Exhibit A shall have the meanings set forth in the Agreement. 

THEREFORE, for good and valuable consideration, the receipt and sufficiency of 

which are hereby acknowledged, Sellers do hereby grant, bargain, sell, assign, convey, transfer 

and deliver to Buyers all right, title and interest to the following assets described on Exhibit "A" 

hereto (''Acquired Assets"). 

TO HAVE AND TO HOLD the same unto Buyer and its successors and assigns, for its 

own use, benefit and behalf forever. 

Sellers covenant to and with Buyer and its successors and assigns that they are the lawful 

owners of the Acquired Assets; that the Acquired Assets are free from all liens and 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 26 of 83
encumbrances; and that Sellers have good title and the right to sell the Acquired Assets to the 

Buyer. 

For the consideration aforesaid, Sellers, for themselves and their successors and assigns, 

have covenanted and by this Bill of Sale and Assignment do covenant with Buyers, their 

successors and assigns, to do, execute and deliver, or to cause to be done, executed and 

delivered, all such further acts, documents or instruments of conveyance, transfer or assignment 

as shall be necessary or appropriate to vest in or confirm to Buyers, their successors and assigns, 

the Acquired Assets hereby assigned, transferred and conveyed which Buyers, their successors 

and assigns, reasonably require. 

Sellesr hereby grant to Luther S. Pate IV their respective powers of attorney to execute 

.such documents as may be reasonably necessary to transfer the Acquire Assets under this 

Agreement. 

IN WITNESS WHEREOF, Sellers have caused this Bill of Sale and Assignment to be 

signed by their respective officers thereunto duly authorized as of the date first written above. 

VESPA BEVERAGES, LLC:
 

Vespa Holdings, Inc., sole member
 

By:
 

Its:
 

VESPA HOLDINGS, INC.
 

By:
 

Its:
 

GEFFREY A. YIELDING
 

, ::::::s 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 27 of 83
EXHIBIT A 

FURNITURE, FIXTURES AND EQUIPMENT 

1. All-in-one printer/fax machine 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 28 of 83
SCHEDULE "e" 

BILL OF SALE AND ASSIGNMENT 

This BILL OF SALE AND ASSIGNMENT (the "Assignmenf'), is made as of 

UNtt-H '7 , 20~, from Vespa Holdings, Inc., an Arkansas corporation ("VHr'), 

Vespa Beverages, LLC, an Arkansas limited liability company ("VBL") and Geffrey A. 

Yielding, (collectively, the "Sellers"), to PBEV, LLC, a Delaware limited liability Company 

("Buyer'). 

WITNESSETH: 

WHEREAS, VHI currently has a total of Eleven Thousand (11,000) shares of common 

stock issued and outstanding; 

WHEREAS, Yielding is currently the owner of Ten Thousand (10,000) shares of 

common stock in VHf; 

WHEREAS, vm is the sole member and owner of a one hundred percent (100%) 

interest in VBL, which may sometimes operate under the asserted fictitious name of Vespa 

Beverages, Inc.; 

WHEREAS, Seller has been engaged in the business ("Business") of manufacturing and 

distributing liquid beverages, specifically including, but not limited to, the manufacture and 

distribution of the Killer Buzz energy drink; 

WHEREAS, Company has agreed to purchase and Seller has agreed to sell, substantially 

all of the assets used in the Business (the "Assets") pursuant to an Asset Purchase Agreement 

executed of even date herewith (the "Asset Purchase Agreement'); 

WHEREAS, it is the purpose of Seller hereunder to sell and transfer the property 

described in the Agreement to the Buyers; and 

WHERAS, unless the context clearly indicates otherwise, capitalized terms used herein 

and in Exhibit A shall have the meanings set forth in the Agreement. 

THEREFORE, for good and valuable consideration, the receipt and sufficiency of 

which are hereby acknowledged, Sellers do hereby grant, bargain, sell, assign, convey, transfer 

and deliver to Buyers all right, title and interest to the following assets described on Exhibit "A" 

hereto ("Acquired Assets"). 

TO HAVE AND TO HOLD the same unto Buyer and its successors and assigns, for its 

own use, benefit and behalf forever. 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 29 of 83
Sellers covenant to and with Buyer and its successors and assigns that they are the lawful 

owners of the Acquired Assets; that the Acquired Assets are free from all liens and 

encumbrances; and that Sellers have good title and the right to sell the Acquired Assets to the 

Buyer. 

For the consideration aforesaid, Sellers, for themselves and their successors and assigns, 

have covenanted and by this Bill of Sale and Assignment do covenant with Buyers, their 

successors and assigns, to do, execute and deliver, or to cause to be done, executed and 

delivered, all such further acts, documents or instruments of conveyance, transfer or assignment 

as shall be necessary or appropriate to vest in or confirm to Buyers, their successors and assigns, 

the Acquired Assets hereby assigned, transferred and conveyed which Buyers, their successors 

and assigns, reasonably require. 

Sellers hereby grant to Luther S. Pate IV their respective powers of attorney to execute 

such documents as may be reasonably necessary to transfer the Acquired Assets under this 

Agreement. 

IN WITNESS WHEREOF, Sellers have caused this Bill of Sale and Assignment to be 

signed by their respective officers thereunto duly authorized as of the date lust written above. 

VESPA BEVERAGES, LLC: 

Vespa Holdings, Inc., sole member 

By: 

Its:
 

VESPA HOLDINGS, INC.
 

By: ~<3.U;\)~~~~ ~ieldiIlg\ Its: President 

GEFFREY A. YIELDING 

\ -=::s 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 30 of 83
EXIDBITA
 

VEHICLES
 

MAKE & MODEL VINNUMBER LIENHOLDER 

2007 Dodge Nitro VIN#lD8GT28K47W64087 Business Vehicle Finance 

2007 Dodge Nitro VIN#lD8GT28K87W649089 Business Vehicle Finance 

2008 Ford Escape VIN#lFMC03188KE1229S Ford Credit 

2008 Ford EISO VIN#lFTNE14W18DS36411 Ford Credit 

2007 Hummer VIN#5GRGN23U17Hl13105 GMAC 

2008 Ford F450 VIN#lFT~43R38EB20484 Ford Credit 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 31 of 83
SCHEDULE "D" 

LIABIUTIES, LIEN, MORTGAGES, SECURITY, INTEREST 

1. The indebtedness owed upon the vehicles identified in Schedule "C". 

2. The indebtedness specified in Article 1.4 of this Agreement. 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 32 of 83
SCHEDULE "E" 

NON-COMPETITION AND CONFIDENTIALITY AGREEMENT 

TIllS NON-eOMPETITION AND CONFIDENTIALITY AGREEMENT (the 

"Agreement") is effective as of March '" ' 2010, by and among Vespa Holdings, Inc., an 

Arkansas corporation ("VHr), Vespa Beverages, LLC, an Arkansas limited liability company 

("VBL"), GetTrey A. Yielding ("Yielding") and PBEV, LLC, a Delaware limited liability 

company (the "Company"). 

WITNESSETH: 

WHEREAS, VHI currently has a total of Eleven Thousand (11,000) shares of common 

stock issued and outstanding; 

WHEREAS, Yielding is currently the owner of Ten Thousand (10,000) shares of 

common stock in VHI; 

WHEREAS, VHI is the sole member and owner of a one hundred percent (100%) 

interest in VBL, which may sometimes operate under the asserted fictitious name of Vespa 

Beverages, Inc.; 

WHEREAS, Yielding, through VHI and VBL (yielding, VHI and VBL herein 

collectively referred to as "SeUer"), has been engaged in the business ("Business") of 

manufacturing and distributing liquid beverages, specifically including, but not limited to, the 

manufacture and distribution of the Killer Buzz energy drink; 

WHEREAS, Company has agreed to purchase and Seller has agreed to sell, substantially 

all of the assets used in the Business (the '~ssets") pursuant to an Asset Purchase Agreement 

executed of even date herewith (the '~sset Purchase Agreemenf'); 

WHEREAS, unless restricted, Seller could compete with, or disclose proprietary 

infonnation about, the Business upon the sale of the Assets pursuant to the Asset Purchase 

Agreement; and 

WHEREAS, competition by Seller with Company or the use or disclosure by Seller of 

confidential and proprietary information about the Business will result in damage to Company and 

its business, properties, assets, and goodwill. 

WHEREAS, as consideration for Company entering into the Asset Purchase Agreement, 

Company desires to impose certain restrictions on Seller's ability to compete with, or disclose 

certain confidential information about, the Business upon the sale of the Assets pursuant to the 

Asset Purchase Agreement. 

NOW, TIlEREFORE, in consideration of the above, the respective mutual agreements 

hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of 

which is hereby acknowledged, Seller and Company hereby agree as follows: 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 33 of 83
1.	 Definitions. The following tenns shall have the defmitions set forth below: 

(a)	 "Agreement" shall mean this Non-Competition and Confidentiality Agreement. 

(b)	 "Area" shall mean the Southeastern States and Arizona. 

(c) "Asset Purchase Agreement" shall mean that Asset Purchase Agreement executed 

of even date herewith by and among Company, Seller and Luther S. Pate IV. 

(d) "Business" shall mean and include manufacturing and distributing liquid 

beverages. 

(e) "Competing Business" shall mean any business, person or entity which is engaged 

in a business substantially the same as the Business within the Area; and 

(f) "Confidential Information" shall mean and include, but shall not be limited to, all of 

the following materials and information (whether or not reduced to writing and whether or not 

patentable) pertaining to Assets and Business, to which Seller had access or developed, in whole or 

in part, as (i) a direct or indirect result of his or its operation of Business or through the use of any 

of Seller's Assets. or (ii) as a direct or indirect result of having been an officer, member or 

employee of Seller: 

(i)	 All items of information that could be classified as a trade secret pursuant to law; 

(ii)	 The names and addresses of the customers of Seller and the nature and amount of 

business done with such customers; 

(iii)	 The names and addresses of employees, suppliers and other business contacts of 

Seller; 

(iv)	 The particular names, methods and procedures utilized by Seller in the conduct and 

advertising of its Business; 

(iv)	 The discoveries, concepts and ideas, whether patentable or not, including without 

limitation, the nature and results of research and development activities, processes, 

techniques, "know-how." and specifications of Business; 

(v)	 Marketing techniques, purchasing information, price lists, pricing policies, quoting 

procedures. financial information, budgets, customer names and requirements, 

customer data and other materials or information relating to Seller or the Business; 

(vi)	 Any other materials or information related to the Business or activities of Seller 

which are not generally known to others engaged in similar business activities. 

Company's failure to make and keep any of the foregoing confidential shall not affect its status as 

part of the Confidential Information under the terms of this Agreement. 

2 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 34 of 83
2. Non-Competition Restrictions. Seller covenants that, for a period of five (5) 

years from and after the date of this Agreement, Seller shall observe the following separate and 

independent covenants: 

(a) Seller shall not within the Area solicit or accept, directly or indirectly, on its or his 

own behalf or in the service or on behalf of others, become fmancially interested in a Competing 

Business, or render any services to any Competing Business as an owner, employee, consultant, 

partner, officer, director or in any other relationship whatsoever. 

(b) Seller shall not, either directly or indirectly, on its or his own behalf or in the 

service or on behalf of others, solicit, divert, or appropriate, or attempt to solicit, divert, or 

appropriate, to any Competing Business, any customer, other person or entity whose account with 

Seller was sold or serviced by or under his direction or supervision while he or it was associated 

with the Business. 

(c) Seller shall not, either directly or indirectly, on its or his own behalf or in the 

service or on behalf of others, solicit, divert, or hire away, or attempt to solicit, divert, or hire away, 

to any Competing Business, any person employed by Company, whether or not such employee is a 

full-time, part-time or a temporary employee of the Company and whether or not such employment 

is pursuant to written agreement and whether or not such employment is for a detennined period or 

is at will. 

(d) Seller acknowledges and agrees that all Confidential Infonnation, and all physical 

embodiments thereof, are confidential to and shall be and remain the sole and exclusive property of 

Company as of the date of this Agreement. Seller acknowledges that it is Company's intention to 

maintain the confidentiality of this infonnation notwithstanding employees of Company having 

access to the infonnation for the purpose of performing their duties with Company. Seller 

acknowledges that it is not practical, and shall not be necessary, to mark such information as 

"CONFIDENTIAL," or to transfer it within Company by confidential envelope or 

communication, in order to preserve the confidential nature of the information. Seller agrees that 

he or it will not: (i) disclose or make available any Confidential Information to any person or 

entity, or (ii) make or cause to be made, or permit, either on his own behalf or in the service or on 

behalf of others, any use of such Confidentiallnfonnation. 

3.	 Seller's Acknowledgments. Seller acknowledges that: 

(a)	 Seller has become familiar with the Confidential Infonnation; 

(b)	 The Business is nationwide in scope; 

(c)	 The Business's products and services are marketed throughout the United States; 

(d)	 The Seller and the Business competes with other businesses that are or could be 

located in any State; 

3 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 35 of 83
(e)	 Company has required that Seller make the covenants set forth in Sections 2 and 3 

of this Agreement as a condition to the Company purchasing the Assets pursuant 

to the Asset Purchase Agreement; 

(t)	 The provisions of Sections 2 and 3 of this Agreement are reasonable and 

necessary to protect and preserve the Assets and Business; and 

(g)	 Should Seller breach any of the covenants set forth in Sections 2 and 3 of this 

Agreement, it would result in irreparable loss, hann and injury to Company. 

4. Blue Pencil Provision. If any of the covenants contained in Section 2, or any 

part thereof, is held to be unenforceable because of the duration of such provision or the scope of 

the subject matter thereof or the area covered thereby, the parties agree that the court making such 

determination shall have the power to reduce the duration, scope, and/or area of such provision 

and, in its reduced fonn, said provision shall then be enforceable. 

s. Non-Disparagement. Seller specifically agrees that he nor it shall communicate, 

directly or indirectly, by any means, including, without limitation, orally or in writing, to any 

person or entity any remarks derogatory to or disparaging of Company, the Business, or their 

employees, agents, subsidiaries, officers, operations, or manner of doing business. 

6. Remedies. In addition to all other remedies provided at law or in equity, 

Company shall be entitled to both preliminary and permanent injunctions against Seller to prevent 

a breach or contemplated or threatened breach by Seller of any of the foregoing covenants, without 

the necessity of proving actual damages; and the existence of any claim, demand, cause of action, 

or action of Seller against Company, whether predicated upon this Agreement or otherwise, shall 

not constitute a defense to the enforcement by Company of any such covenants. In the event of an 

actual breach of any of the foregoing covenants, Company shall have the right to (a) recover 

damages for all losses, actual, contingent and consequential, including, but not limited to, future 

lost profits, (b) require Seller to account for and pay over to Company all profits or other benefits 

(collectively, "Benefits") derived or received by Seller as a result of any transactions constituting 

such breach, and Seller hereby agrees to account for and pay over such Benefits to Company. 

Each of the rights and remedies enumerated above shall be independent of the other, and shall be 

severally enforceable. All of such rights and remedies shall be in addition to, and not in lieu of, 

any other rights and remedies available to Company at law or equity. 

7. Severability. Each of the covenants contained in this Agreement shall be deemed 

separate, severable, and independent covenants, and in the event any covenant shall be declared 

invalid by any court of competent jurisdiction, such invalidity shall not in any manner affect or 

impair the validity or enforceability of any other part or provision ofsuch covenant or of any other 

covenant contained herein. 

8. Waiver. The rights and remedies of the parties to this Agreement are cumulative 

and not alternative. Neither the failure nor any delay by any party in exercising any right, power, 

or privilege under this Agreement will operate as a waiver of such right, power, or privilege, and 

no single or partial exercise of any such right, power, or privilege will preclude any other or 

4
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 36 of 83
further exercise of such right, power, or privilege or the exercise of any other right, power, or 

privilege. To the maximum extent permitted by applicable law, (a) no claim or right arising out 

of this Agreement can be discharged by one party, in whole or in part, by a waiver or 

renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that 

may be given by a party will be applicable except in the specific instance for which it is given; 

and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of 

such party or of the right of the party giving such notice or demand to take further action without 

notice or demand as provided in this Agreement. 

9. Authorization. Company is authorized to enter into this Agreement by virtue of 

a Consent Memorandum executed by the sole member of Company and effective as of even date 

herewith. 

10. Jurisdiction. This Agreement shall be governed by and construed in accordance 

with the laws of the State of Arkansas. 

11. Counterparts.This Agreement may be executed and delivered in any number· of 

counterparts, each of which, when executed and delivered, shall be an original, but all of which 

shall together constitute one and the same agreement. 

12. Successors and Assigns. This Agreement will be binding upon Seller and 

Company and will inure to the benefit of Company and its affiliates, successors and assigns and 

Seller and Seller's assigns, heirs and legal representatives. As used herein, the words "successors 

and assigns" shall also be deemed to mean the heirs, executors, representatives and 

administrators of any natural person who is a party to this Agreement. 

13. Section Headings, Construction. The headings of Sections in this Agreement 

are provided for convenience only and will not affect its construction or interpretation. All 

references to "Section" or "Sections" refer to the corresponding Section or Sections of this 

Agreement unless otherwise specified. All words used in this Agreement will be construed to be 

of such gender or number as the circumstances require. Unless otherwise expressly provided, the 

word "including" does not limit the preceding words or terms. 

14. Notices. All notices, consents, waivers, and other communications under 

this Agreement must be in writing and will be deemed to have been duly given when 

(a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written 

confirmation of receipt), provided that a copy is mailed by registered mail, restricted delivery, 

return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized 

overnight delivery service (receipt requested), in each case to the appropriate addresses and 

facsimile numbers set forth below (or to such other addresses and facsimile numbers as a party 

may designate by notice to the other parties): 

Yielding, VIfl:
 

&VHL
 

5
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 37 of 83
Company:	 PBEV,LLC
 

clo W. Cameron Parsons
 

The Parsons Firm, P.C.
 

2201 Jack Warner Parkway, Suite 2
 

Tuscaloosa, AI.. 35401
 

with a copy to:	 Williams & Anderson PLC
 

111 Center Street, 22nd Floor
 

Little Rock, AR 72201
 

Attention: Jess Askew III
 

Facsimile No.: 501-372-6453
 

IS. Insorporation ofReeitals. All recitals set forth in this Agreement are 

contractual and are not merely recitals offact. 

16. Waiver of JUry Trial Seller and Company fUlly, voluntarily, knowingly, 

irrevocably and unconditionaJly waive any right to a trial by Jury or to have a Jury 

participate in any dispute, action or proeeeding to enforce or defend any rights (whether 

based oa eoatraet, tort or otherwise) under this Agreemeat or under any amendment, 

iIlstrumeat, doeumeat or agreelllellt denvered (or which may mthe future be delivered) in 

eoaaeetion herewith. Seller agrees that oy such actioa or proeeediag shaD be tried before 

a court aad not before a jury. This provision is a material inducement to the Company for its 

offer to purchase the Assets. 

17. Breach. The parties agree that in the event ofan action to enfbrce this Agreement 

the prevailing or substantially prevailing party is entitled to recover its reasonable attomey fees 

and costs ftom the non-prevailing party. 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly 

executed as ofthe date first above written. 

COMPANY: 

PBEVLLC 

By.~--= LUtile1'&P8teIV 

Its: Authorized Member 

6
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 38 of 83
SELLER: 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

By: ~C\. ~'~l!I::::s ~l'\ .Yieldi'ng 

Its: President 

VESPA HOLDINGS, INC. 

By: ~.~~~~~',.}.SO Ge . Yieldiftgs 

Its: President 

7
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 39 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Geffrey A. Yielding to 

me peISonally well known, who stated that he was the President of Vespa Holdings, Inc., which 

is the sole member of Vespa Beverages, LLC, and that he was duly authorized in his capacity to 

execute the foregoing instrument for and in the name and behalf of Vespa Beverages, LLC, and 

further stated and acknOWledged that he had so signed, executed and delivered said foregoing 

instrument for the consideration, uses and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this r day 

of_mar~ ,2010. ~4

Notary Public ,,"UlIIIl ~,\\ "1'1. My commission expires: .\\:..e~ L J».. "" ~~~ ~;....:-,,~~41"~~ -'- ·11'11 Co -. $ ••~"r. 1I+:... 09-- 0" . ~t4 .:,~ ~.. 
 

§*~No.12370208; * 
 ACKNOWLEDGMENT \,1fA.... ~, .-:; i
 -~ .. ,,~.- • ·2-6- "" ~J- ••- - - _ ~'i-'r ,,' STATE OF ARKANSAS ) ~,.., P<I'I.IC • ~,,,,~ ""I"'lIn"\\\\\~ ) SSe 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Geffrey A. Yielding to 

me personally well known, who stated that he was the President of Vespa Holdings, Inc., and 

that he was duly authorized in his capacity to execute the foregoing instrument for and in the 

name and behalf of said corporation, and further slated and acknowledged that he had so signed, 

executed and delivered said foregoing instrument for the consideration, uses and purposes 

therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this ~day

of_MaM ,2010. J-OJ£::­

otary Public ~\\,"UJlI,,,,,, My commission expires: .\,'Ij ",-Q L """ .....",-~. PIt". ~'''' ~'~; ••••••• v~~

.§ ••·:"slU cO(,::.:'~ ..... wg._~ 7~. ::: ...'V ,...... $. ::: ., .-­ ~*fNO.12310208E*i .. . .. ­ ~... :c:os '::; Do..~.. ,'. J~ -~ '. -.." 2 6·'1.~ o· ~'7~r···:_: ..··· ~'t:~ ~"PIIB!-19 .. ......,.; 8 III""'''I.~",r

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 40 of 83
ACKNOWLEDGMENT
 

STATEOFARKANSAS )
 

)88. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Geffrey A. Yielding to 

me personally well known, and further stated and acknowledged that he had so signed, executed 

and delivered said foregoing instrument for the consideration, uses and purposes therein set 

forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal thisit"day 

of f'!\)n:..b , 2010. 

My commission expires: 

oS! -01, .. ~DI9 _ 

ACKNOWLEDGMENT 

STATE OF _ ) 

)88. 

COUNTY OF _ ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Luther S. Pate, IV to me 

personally well known, who stated that he was the Authorized Member of PBEV, LLC., and 

that he was duly authorized in his capacity to execute the foregoing instrument for and in the 

name and behalf of said company, and further stated and acknowledged that he had so signed, 

executed and delivered said foregoing instrument for the consideration, uses and purposes 

therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this _ day 

of ,2010. 

Notary Public 

My commission expires: 

9 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 41 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)Ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Geffi-ey A. Yielding to 

me personally well known, and further stated and acknowledged that he had so signed, executed 

and delivered said foregoing instrument for the consideration, uses and purposes therein set 

forth. 

IN TESTIMONY WHEREOF, I have hereunto set my band and official seal this _ day 

of ,2010. 

Notary Public 

My commission expires: 

ACKNOWLEDGMENT 

STATE OF _ ) 

)ss. 

COUNTY OF _ ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and 

acting, within and for the County and State aforesaid, the within named Luther S. Pate, N to me 

personally well known, who stated that he was the Authorized Member of PBEV, LLC.t and 

that he was duly authorized in his capacity to execute the foregoing instrument for and in the 

name and behalf of said company, and further stated and acknowledged that he had so signed, 

executed and delivered said furegoing instrument fur the consideration, uses and purposes 

therein set forth. 

My commission expires: 

My CommisslDn EXpiI8I October 20,2010 

9
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 42 of 83
SCHEDULE "F' 

MUTUAL RELEASE OF CLAIMS 

This Mutual Release of Claims (hereinafter referred to as the "Release") is 

entered into by and among Geffrey A. Yielding ("Yielding"), Vespa Holdings, Inc. 

("VHr'), an Arkansas corporation, and Vespa Beverages, lLC ("VBL''), an Arkansas 

limited liability company, (yielding, VHI and VBL herein collectively the "Yielding 

Parties''), PBEV, LLC ("pBEVU), and Luther S. Pate IV ("Pate") (pBEV and Pate herein 

collectively referred to as the "Pate Parties") on this Ir day of March, 2010. The 

Yielding Parties and Pate Parties are sometimes collectively referred to as the "Parties." 

WITNESSETH: 

WHEREAS, the Yielding Parties and Pate Parties desire to fully and finally 

mutually compromise, settle and release any and all known and unknown potential claims 

currently existing between the Yielding Parties and Pate Parties. 

NOW THEREFORE, in consideration of the mutual covenants, promises and 

agreements hereinafter set forth, and for other good and valuable consideration, the 

receipt and sufficiency of which are hereby acknowledged, Yielding, VHI, and VBL, 

agreeing to be mutually bound by the terms and conditions herein, covenant and agree as 

follows: 

1. Incorporation of Recitals and Exhibits. All recitals set forth in this 

Release and all exhibits attached to this Release are contractual and are not merely 

recitals of fact. 

2. Release of Claims by Yielding Parties. The Yielding Parties and 

their parents, affiliates, divisions, subsidiaries and other related entities, and his and their 

respective officers, directors, employees, agents, successors, assigns, estate, and heirs 

hereby agree and acknowledge that by signing this Release and accepting good and 

valuable consideration provided for in this Release, to which the Yielding Parties are not 

otherwise entitled, and upon the Pate Parties satisfying all requirements laid out in this 

Release, the Yielding Parties knowingly, voluntarily, irrevocably and unconditionally 

release and forever discharge the Pate Parties and their parent, affiliates, divisions, 

subsidiaries and other related entities, and his and their respective officers, directors, 

employees, agents, successors, assigns, estate, and heirs, of any and all claims, 

complaints, charges, allegations, demands or causes of action of any kind whatsoever, 

whether in law or in equity, direct or indirect, known or unknown, in tort, contract, by 

statute or any other basis for relief, compensatory, punitive or other damages, expenses 

(including attorney's fees), reimbursements or costs of any kind ("Claims") which the 

Yielding Parties ever had, now have, or hereafter can, shall or may have or assert against 

the Pate parties for any matter, cause or thing which may have occurred before the 

Effective Date this Release. 

1 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 43 of 83
3. Release of Claims by Pate Parties. The Pate Parties and their parents, 

affiliates, divisions, subsidiaries and other related entities, and their respective officers, 

directors, employees, agents, successors, assigns, estate, and heirs hereby agree and 

acknowledge that by entering into this Release and accepting good and valuable 

consideration provided for in this Release, to which the Pate Parties are not otherwise 

entitled, and upon the Yielding Parties satisfying the requirements laid out in this 

Release, the Pate Parties knowingly, voluntarily, irrevocably and unconditionally release 

and forever discharge the Yielding Parties and their parent, affiliates, divisions, 

subsidiaries and other related entities, and his and their respective officers, directors, 

employees, agents, successors, assigns, estate, and heirs, of any and all claims, 

complaints, charges, allegations, demands or causes of action of any kind whatsoever, 

whether in law or in equity, direct or indirect, known or unknown, in tort, contract, by 

statute or any other basis for relief, compensatory, punitive or other damages, expenses 

(including attorney's fees), reimbursements or costs of any kind, which the Pate Parties 

now have, or hereafter can, shall or may have or assert against the Yielding Parties for 

any matter, cause or thing which may have occurred before the Effective Date of this 

Release. 

4. Covenant Not to Sue. The Parties represent and warrant that as of the 

date and time they enter into this Release they have not filed a charge or complaint with 

any court or administrative agency, an arbitration or other legal action, and agree not to 

pursue any of the above released claims against any other Party (respectively). 

s. Release of Known and Unknown Claims. The Parties understand that 

this Release includes a release of all known and unknown claims. 

6. Entire Release/Choice of LawlEnforceability and Severability. This 

Release supersedes any and all other prior oral and/or written agreements, sets forth the 

entire agreement between the Yielding Parties and the Pate Parties, and shall be binding 

on and inure to the benefit of the Parties, their legal representatives, assigns, parents, 

subsidiaries, successors, estate, heirs and all who succeed to their rights. No variations or 

modifications hereof shall be deemed valid unless reduced to writing and signed by the 

parties hereto. This Release shall be deemed to have been made in the State of Arkansas, 

and the validity, interpretation and performance of this Release shall be governed by, and 

construed in accordance with, the internal law of the State of Arkansas, without giving 

effect to conflict of law principles. 

The terms of this Release are severable, and if for any reason any part hereof shall 

be found to be unenforceable, the remaining terms and conditions shall be enforced in 

full. Notwithstanding the foregoing and without waiving any rights to appeal, the invalid 

or unenforceable provision shall, if possible, be replaced by a valid and enforceable 

provision that most closely approximates the intention of the Parties. 

7. No Assignment of Matters Released. Neither Party may assign transfer, 

or alienate any of the rights or obligations set forth herein. The Parties each represent 

and warrant that no such assignment have been made and they have the right to give a 

2
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 44 of 83
------------ -------------

full and complete release of the claims and matters released in this Release. 

8. No Admission of Liability. This Release is entered into to effect a 

mutually acceptable resolution of the disputes between the Parties. In so doing, none of 

the Parties, or, as applicable, their respective affiliates, or any of their respective 

directors, officers, employees, agents or representatives admits or acknowledges in any 

way, and expressly denies, that it, or any of them has done anything wrong or that it, or 

any of them has or could have any liability to anyone in connection with any of the 

matters released in this Release. 

9. Authorization. Each Party hereby represents and warrants that it has full 

power and authority to execute and deliver this Release and to perfonn its obligations 

hereunder. This Release constitutes the valid and legally binding obligation of the 

Parties, enforceable in accordance with its terms and conditions. 

10. Consultation with CounsellVoluntariness. All Parties acknowledge and 

agree that they have consulted an attorney before signing this Release, have read and 

fully understand the terms of this Release, are entering into this Release knowingly and 

voluntarily and acknowledge that they have not relied upon any statement or 

representation, written or oral, not set forth in this Release and that this Release is the 

complete and only Release between the Parties relating to andlor arising out of any 

disputes with respect to the Parties. 

11. Counterparts. This Release may be executed by the Parties in one or 

more counterparts, and may be executed on electronically transmitted copies, each of 

which shall be deemed an original, and all of which together shall constitute one and the 

same instrument. This Release shall be effective and fully enforceable on the date it is 

last executed by a Party (the "Effective Date"). 

12. Further Assurances. Each of the Parties shall execute and deliver such 

additional documents and shall cause such further and additional action to be taken which 

any of the Parties may reasonably require in order to effectuate the terms of this Release. 

IN WITNESS WHEREOF, the Parties voluntarily and knowingly enter into this 

Release on the date and time set out below. 

GEFFREY A. YIELDING VESPA HOLDINGS, INC. 

By:
 

Its:
 

Dated: Dated: 

3
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 45 of 83
LUTHER S. PATE IV VESPA BEVERAGES, LLC 

Luther S. Pate IV 

Dated: _ 

By: 

Its: 

Dated: 

PBEV, LLC 

By: 

Luther S. Pate IV 

Its: Authorize Member 

Dated: ----------­

_ 

4
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 46 of 83
LUTHER S. PATE IV VESPA BEVERAGESt LLC 

ut.~ By: 

Luther S. Pate IV Geffrey A. Yielding 

Its: President 

Dated: --g"I'-1'T;) Dated:---------­

By: 

Luther S. Pate IV 

Its: Authorize Member
 

Dated: :) - , ) - ... , 0
 

4
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 47 of 83
SCHEDULE"G" 

RESOLUTION OF MEMBERS
 

OF
 

PBEV,LLC
 

The undersigned, being the sole member of PBEV, LLC (the "Company"), in lieu of a 

formal meeting of the members, does hereby consent to the adoption of the following resolution, 

which shall have the same force and effect as a unanimous vote at a meeting of the members 

duly called and held. This consent shall be filed with the minutes of the proceedings of the 

members of the Company. 

WHEREAS, PBEV, LLC, a Delaware limited liability company ("PBEV"), desires to 

purchase substantially all of the assets ("Assets") used in the manufacture and distribution of 

Killer Buzz energy drink (the "Business") by the Company, Vespa Holdings, Inc. ("VHr') and 

Geffrey A. Yielding ("Yielding"); 

WHEREAS, pursuant to the terms of that Asset Purchase Agreement to be executed by 

and among PBEV, Company, VHI, Yielding and Luther S. Pate IV (the "Asset Purchase 

Agreemenf'), Company must provide a Resolution executed by its sole member approving the 

transaction contemplated by the Asset Purchase Agreement. 

NOW, TIlEREFORE, be it 

RESOLVED that the Company is authorized to enter into and execute the Asset 

Purchase Agreement for the purchase price and upon the terms therein as negotiated by Luther S. 

Pate IV, in his capacity as the Authorized Member for Company; 

FURTHER RESOLVED that Luther S. Pate IV, in his capacity as the Authorized 

Member for Company, is hereby authorized to execute and deliver for and on behalf of the 

Company the Asset Purchase Agreement, Bringdown Certificate, Non-Compete and 

-1 ­

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 48 of 83
Confidentiality Agreements, Releases, and any and all additional certificates, documents and 

other papers and to perform all other acts as they may deem necessary or desirable to implement 

and carry out the purposes and intent ofthe Asset Purchase Agreement and these resolutions. 

..".. WITNESS our consent as the members of the Company effective the I f day of 

.2010.
 

MEMBERS:
 

Luther S. Pate IV 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 49 of 83
SCBEDULE"H" 

BRING DOWN CERTIFICATE 

The undersigned, PBEV, LLC, by and through Luther S. Pate IV, the Authorized 

Member, hereby certifies that: 

1. In order to consummate the transaction contemplated by the Asset 

Purchase Agreement dated ~t.f4.... I S" I • 2010 (the "Agreement"), Luther S. Pate 

IV, as the Authorized Member ofPBEV, LLC, has been duly authorized to execute and 

deliver on bebalf 0 f PBEV, LLC, the Agreement and other documents and instruments 

required pursuant to the Agreement; and 

2. The Representations and Warranties 

contained in the Agreement are correct in all material 

,2010. 

made 

respect

by PBEV, 

s, as ofthis 

LLC that 

1~.J;:!. day of 

are 

PBEV,LLC: 

BY.~ LlltheI'S:PateI Member 

ACKNOWLEDGMENT 

STATEOF~ ) 

)81. 

COUNTY OF ~l!6-l~}

ON THIS DAY came befure me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State afuresaid, the within named Luther S. 

Pate IV to me personally well known, who stated that he was the authorized member of 

PBEV, LLC, and that he was duly authorized in his capacity to execute the foregoing 

instrument fur and in the name and behalf of PBEV, LLC, and further stated and 

acknowledged that he had so signed, executed and delivered said furegoing instrument 

fur the consideration, uses and purposes therein set furth. 

My commission expires: . expIrea 

My=2010 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 50 of 83
SCHEDULE "I" 

MUTUAL RELEASE OF CLAIMS 

This Mutual Release of Claims (hereinafter referred to as the "Release") is 

entered into by and among, Vespa Holdings, Inc. ("VHr), an Arkansas corporation, and 

Vespa Beverages, LLC ("VBL"), an Arkansas limited liability company, (yielding, VHI 

and VBL herein collectively the "Vespa Parties"), Bond Laboratories, Inc. ("BLI"), Scott 

Landow ("Landow"), Jason Adelman (''Adelman'') and Vista Bottling Inc. ("VBrl

) (BLI, 

LandOW, Adelman and VBI herein collectively referred to as the "Bond Parties") on this 

__ day of March, 2010. The Vespa Parties and Bond Parties are sometimes 

collectively referred to as the "Parties." 

WITNESSETH: 

WHEREAS, the Vespa Parties and Bond Parties desire to fully and finally 

mutually compromise, settle and release any and all known and unknown potential claims 

currently existing between the Vespa Parties and Bond Parties. 

NOW, THEREFORE, in consideration of the mutual cpvenants, promises and 

agreements hereinafter set forth, and for other good and valuable consideration, the 

receipt and sufficiency of which are hereby acknowledged, VHI, VBL, BLI, Landow, 

Adelman and VBI, agreeing to be mutually bound by the terms and conditions herein, 

covenant and agree as follows: 

1. Incorporation of Recitals and Exhibits. All recitals set forth in this 

Release and all exhibits attached to this Release are contractual and are not merely 

recitals of fact. 

2. Release of Claims by Vespa Parties_ The Vespa Parties and their 

parents, affiliates, divisions, subsidiaries and other related entities, and their respective 

officers, directors, employees, agents, successors, assigns, estate, and heirs hereby agree 

and acknowledge that by signing this Release and accepting good and valuable 

consideration provided for in this Release, to which the Vespa Parties are not otherwise 

entitled, and upon the Bond Parties satisfying all requirements laid out in this Release, the 

Vespa Parties knowingly, voluntarily, irrevocably and unconditionally release and 

forever discharge the Bond Parties and their parent, affIliates, divisions, subsidiaries and 

other related entities, and his and their respective successors, assigns, estate, and heirs, of 

any and all claims, complaints, charges, allegations, demands or causes of action of any 

kind whatsoever, whether in law or in equity, direct or indirect, known or unknown, in 

tort, contract, by statute or any other basis for relief, compensatory, punitive or other 

damages, expenses (including attorney's fees), reimbursements or costs of any kind 

("Claims") which the Vespa Parties ever had, now have, or hereafter can, shall or may 

have or assert agaiost the Bond parties for any matter, cause or thing which may have 

occurred before the Effective Date this Release. 

1 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 51 of 83
3. Release of Claims by Bond Parties. The Bond Parties and their parents, 

affiliates, divisions, subsidiaries and other related entities, and their respective officers, 

directors, employees, agents, successors, assigns, estate, and heirs hereby agree and 

acknowledge that by entering into this Release and accepting good and valuable 

consideration provided for in this Release, to which the Bond Parties are not otherwise 

entitled, and upon the Vespa Parties satisfying the requirements laid out in this Release, 

the Bond Parties knowingly, voluntarily, irrevocably and unconditionally release and 

forever discharge the Vespa Parties and their parent, affiliates, divisions, subsidiaries and 

other related entities, and their respective successors, assigns, estate, and heirs, of any and 

all claims, complaints, charges, allegations, demands or causes of action of any kind 

whatsoever, whether in law or in equity, direct or indirect, known or unknown, in tort, 

contract, by statute or any other basis for relief, compensatory, punitive or other damages, 

expenses (including attorney's fees), reimbursements or costs of any kind, which the 

Bond Parties now have, or hereafter can, shall or may have or assert against the Vespa 

Parties for any matter, cause or thing which may have occurred before the Effective Date 

of this Release. 

4. Covenant Not to Sue. The Parties represent and warrant that as of the 

date and time they enter into this Release they have not filed a charge or complaint with 

any court or administrative agency, an arbitration or other legal action, and agree not to 

pursue any of the above released claims against any other Party (respectively). 

5. Release of Known and Unknown Claims. The Parties understand that 

this Release includes a release of all known and unknown claims. 

6. Entire ReleaseIChoice of LawlEnforceability and Severability. This 

Release supersedes any and all other prior oral and/or written agreements, sets forth the 

entire agreement between the Yielding Parties and the Bond Parties, and shall be binding 

on and inure to the benefit of the Parties, their legal representatives, assigns, parents, 

subsidiaries, successors, estate, heirs and all who succeed to their rights. No variations or 

modifications hereof shall be deemed valid unless reduced to writing and signed by the 

parties hereto. This Release shall be deemed to have been made in the State of Arkansas, 

and the validity, interpretation and performance of this Release shall be governed by, and 

construed in accordance with, the internal law of the State of Arkansas, without giving 

effect to conflict of law principles. 

The terms of this Release are severable, and if for any reason any part hereof shall 

be found to be unenforceable, the remaining terms and conditions shall be enforced in 

full. Notwithstanding the foregoing and without waiving any rights to appeal, the invalid 

or unenforceable provision shall, if possible, be replaced by a valid and enforceable 

provision that most closely approximates the intention of the Parties. 

7. No Assignment of Matters Released. Neither Party may assign transfer, 

or alienate any of the rights or obligations set forth herein. The Parties each represent 

and warrant that no such assignment have been made and they have the right to give a 

full and complete release of the claims and matters released in this Release. 

2 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 52 of 83
------------

8. No Admission of Liability. This Release is entered into to effect a 

mutually acceptable resolution of the disputes between the Parties. In so doing, none of 

the Parties, or, as applicable, their respective affiliates, or any of their respective 

directors, officers, employees, agents or representatives admits or acknowledges in any 

way, and expressly denies, that it, or any of them has done anything wrong or that it, or 

any of them has or could have any liability to anyone in connection with any of the 

matters released in this Release. 

9. Authorization. Each Party hereby represents and warrants that it has full 

power and authority to execute and deliver this Release and to perform its obligation~

hereunder. This Release constitutes the valid and legally binding obligation of the 

Parties, enforceable in accordance with its terms and conditions. 

10. Consultation with CounselNoluntariness. All Parties acknowledge and 

agree that they have consulted an attorney before signing this Release, have read and 

fully understand the terms of this Release, are entering into this Release knowingly and 

voluntarily and acknowledge that they have not relied upon any statement or 

representation, written or oral, not set forth in this Release and that this Release is the 

complete and only Release between the Parties relating to and/or arising out of any 

disputes with respect to the Parties. 

11. Counterparts. This Release may be executed by the Parties in one or 

more counterparts, and may be executed on electronically transmitted copies, each of 

which shall be deemed an original, and all of which together shall constitute one and the 

same instrument. This Release shall be effective and fully enforceable on the date it is 

last executed by a Party (the "Effective Date"). 

12. Further Assurances. Each of the Parties shall execute and deliver such 

additional documents and shall cause such further and additional action to be taken which 

any of the Parties may reasonably require in order to effectuate the terms of this Release. 

IN WITNESS WHEREOF, the Parties voluntarily and knowingly enter into this 

Release on the date and time set out below. 

GEFFREY A. YIELDING VESPA HOLDINGS, INC. 

By: ~.~~~ Geffr: ield;~

Its: President 

Dated: _ Dated: 

3
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 53 of 83
SCOTf LANDOW VESPA BEVERAGES, LLC 

Dated: 

Scott Landow 

_ 

By: 

Its: 

Dated: 

de ~ieltiri l~ ~*' ("\""

President _ 

JASON ADELMAN VISTA BOTfLING, INC. 

Jason Adelman 

Dated: _ 

By: 

Its: 

Dated: 

President/CEO 

_ 

BOND LABORATORIES, INC. 

By: 

Its: 

Dated: 

President/CEO 

_ 

4
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 54 of 83
SCHEDULE "J" 

RESOLUTION OF SHAREHOLDERS
 

OF
 

VESPA HOLDINGS, INC.
 

The undersigned, being the sole shareholders of Vespa Holdings, Inc. (the "Company"), 

in lieu of a formal meeting of the shareholders, do hereby consent to the adoption of the 

following resolution, which shall have the same force and effect as a unanimous vote at a 

meeting of the shareholders duly called and held. This consent shall be filed with the minutes of 

the proceedings of the shareholders of Vespa Holdings, Inc. 

WHEREAS, PBEV, LLC, a Delaware limited liability company ("PBEV"), desires to 

purchase substantially all of the assets ('~ssets") used in the manufacture and distribution of 

Killer Buzz energy drink (the "Business") by the Company, Vespa Beverages, LLC ("VBL") 

and Geffrey A. Yielding ("Yielding"); 

WHEREAS, pursuant to the terms of that Asset Purchase Agreement to be executed by 

and among PBEV, Company, VBL, Yielding and Luther S. Pate IV (the "Asset Purchase 

Agreemenf'), Company must provide a Resolution executed by its shareholders approving the 

transaction contemplated by the Asset Purchase Agreement. 

NOW, THEREFORE, be it 

RESOLVED that the Company is authorized to enter into and execute the Asset 

Purchase Agreement for the purchase price and upon the terms therein as negotiated by Geffrey 

A. Yielding, in his capacity as President of the Company; 

FURTHER RESOLVED that the President is hereby authorized to execute and deliver 

for and on behalf of the Company the Asset Purchase Agreement, Bringdown Certificate, NonCompete and Confidentiality Agreement, Releases, and any and all additional certificates, 

-1­

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 55 of 83
documents and other papers and to perform all other acts as they may deem necessary or 

desirable to implement and carry out the purposes and intent of the Asset Purchase Agreement 

and these resolutions. 

WITNESS our consent as the sole shareholders of the Company effective the Itt"' day 

of --..MiI::!e«.~~~ -" 2010. 

SOLE SHAREHOLDERS: 

Luther S. Pate IV, shareholder 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 56 of 83
documents and other papers and to perlbrm all other acts as they may deem necessary or 

desirable to implement and carry out the purposes and intent of the Asset Purchase Agreement 

and these resolutions. 

WITNESS our consent as the sole shareholders ofthe Company effective the I SA day 

of ,2010. 

SOLE SHAREHOLDERS: 

Geffi'ey A Yielding, shareholder 

-

·2­

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 57 of 83
SCHEDULE "K" 

BRING DOWN CERTIFICATE 

The undersigned, Vespa Beverages, LLC, by and through Geffrey A. Yielding, 

the President of its sole member, Vespa Holdings, Inc., hereby certifies that: 

1. In order to consummate the transaction contemplated by the Asset 

Purchase Agreement dated L.lH!S=l1' , , , 2010 (the "Agreement"), Geffrey A. 

Yielding, as the President of Vespa Holdings, Inc., has been duly authorized to execute 

and deliver on behalf of Vespa Beverages, LLC, the Agreement and other documents and 

instruments required pursuant to the Agreement; and 

2. The Representations and Warranties made by Vespa Beverages, LI.C. that 

are contained in the Agreement are correct in all material respects, as of this If"'ltt day 

of ""'Me),\ , 2010. 

VESPA BEVERAGES, LLC: 

By: Vespa Holdings, Inc., Sole Member 

By: ~"~..a-1t\"" _ 

Ge~:Y1Jdih;iifesident

ACKNOWLEDGMENT 

STATE OF ARKANSAS )
 

)ss.
 

COUNTY OF PULASKI )
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., which is the sole member of Vespa Beverages, LLC, and that he was 

duly authorized in his capacity to execute the foregoing instrument for and in the name 

and behalf of Vespa Beverages, LLC, and further stated and acknowledged that he had so 

signed, executed and delivered said foregoing instrument for the consideration, uses and 

purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

It"dayof_~ ,2010. C) ::l Q.At 

\\'1',"III",11111I 

~", :....FR l. ',1. .. ~... ..'lI""'--: A "" . ~CbV '2'~ MYcommISSIon expIres: ;f •••~;,p.sKl Ca'••~'%.

.. •• -?~ .:::'~·A' ~.. I\n - ..... ·'1'0 - • =­ ---JLdo" Ofl . 01.0''1 ~.: . 1237(J208= .; =9..~ : ........ ::­ ::. ....'~ . .......- ....
 .... .. -'/0 ~. to .::­ ';. '.' ~·8·20~ ...' ~ ~ ""''':Y;l.",:' ~.:::. ..~t:O"'~~ "'1: . u. ~.'" ",

~111"'UlIII"\~~\\

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 58 of 83
SCHEDULE "L" 

BRING DOWN CERTIFICATE 

The undersigned, Vespa Holdings, Inc., by and through its President Geffrey A.
 

Yielding, hereby certifies that:
 

1. In order to consummate the transaction contemplated by the Asset
 

Purchase Agreement dated ~'"' rr , 2010 (the "Agreement"), Geffrey A.
 

Yielding, as the President of Vespa Holdings, Inc., has been duly authorized to execute
 

and deliver on behalf of Vespa Holdings, Inc. the Agreement and other documents and
 

instruments required pursuant to the Agreement; and
 

2. The Representations and Warranties made by Vespa Holdings, Inc. that
 

are contained in the Agreement are correct in all material respects, as of this It-- day
 

of \..l~ , 2010.
 

VESPA HOLDINGS, INC.: 

BY:~\\~~ ac;~ :YieiaiIlg 

Its: President 

ACKNOWLEDGMENT 

STATEOFARKANSAS )
 

)55.
 

COUNTY OF PUIASKI )
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified
 

and acting, within and for the County and State aforesaid, the within named Geffrey A.
 

Yielding to me personally well known, who stated that he was the President of Vespa
 

Holdings, Inc., and that he was duly authorized in his capacity to execute the foregoing
 

instrument for and in the name and behalf of said corporation, and further stated and
 

acknowledged that he had so signed, executed and delivered said foregoing instrument
 

for the consideration, uses and purposes therein set forth.
 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

l<fl'tiay of M..r~ ,2010. 

~t~.. 

otafYPUbliC ~"'~~_!:.~'~~ My commission expires: ,§ ••-:sIU COll··.~ :: .~....,r- ~~. s:, ~..

D~' OCp , Cl01S ~*tNo.1231i)208;*§ - . . ­ s~.. .. coo S •••~.f"~ 2 8.~~...!!f;.·· .if! tIf/I>. 7~ -. ... • • ......-s"" 71' -•••••- ~'4:.~

....,~ ~UBf:f9 ~' ~/""IIIIIII\'\\~

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 59 of 83
SCHEDULE"M" 

BILL OF SALE AND ASSIGNMENT
 

OF
 

FEDERAL TRADEMARK
 

THIS BILL OF SALE AND ASSIGNMENT OF FEDERAL TRADEMARK (the 

"Agreement") is effective as of UMCe... If ,2010, by and among Vespa Holdings, 

Inc., an Arkansas corporation ("VHr), Vespa Beverages, LLC, an Arkansas limited 

liability company ("VBL"), GetTrey A. Yielding ("Yielding") and PBEV, LLC, a 

Delaware limited liability company (the '~ssignee"). Yielding, VHI and VBL are herein 

collectively referred to as "Assignor." 

WITNESSETH: 

WHEREAS, Assignor has adopted, used, and is using a mark registered in the 

United States Patent and Trademark Office as the following ("the Marlt'): 

KILLER BUZZ Registration No. 3,151,417 

WHEREAS, Assignee desires to acquire the Mark and its registration; 

NOW, THEREFORE, for good and valuable consideration, the receipt and 

sufficiency of which is hereby acknowledged, Assignor hereby agrees to GRANTS, 

BARGAINS, SELlS, TRANSFERS, CONVEYS, ASSIGNS AND SETS OVER TO 

Assignee all of Assignor's right, title, and interest in and to the Mark and its registration, 

together with the goodwill of the business symbolized by the Mark as follows: 

1. Representations and Warranties. Assignor represents and warrants to 

Assignee that it has good title to the Mark and the registration therefore, and that the 

Mark is free and clear of all liens and encumbrances and shall forever warrant and defend 

title thereto in Assignee. 

2. Absolute and Present Assignment. It is understood and agreed the 

assignment granted herein shall constitute an absolute and present assignment from 

Assignor to Assignee and not an assignment for security purposes only. 

3. Indemnification. Assignor agrees to indemnify, defend and hold Assignee 

harmless from and against any expense, loss, damage, claim, causes of action and 

demand (including, without limitation, reasonable attorney's fees and costs) arising out of 

or connected with Assignor's breach under this Assignment. 

4. Successors and Assigns. This Assignment and each and every covenant, 

agreement and provision hereof shall be binding upon Assignor and their successors and 

assigns, and shall inure to the benefit of Assignee and its successors and assigns. As used 

herein, the words "successors and assigns" shall also be deemed to mean the heirs, 

1
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 60 of 83
executors, representatives and administrators of any natural person who is a party to this 

Assignment. 

5. Governina Law. The rights and remedies provided to Assignee by this 

Assignment are intended to be governed by the laws of the State of Arkansas without 

regard to its choice oflaw principles. 

6. Severability Clause. It is the intent of this Assignment to confer to 

Assignee the rights and benefits hereunder to the full extent allowable by law. The 

unenforceability or invalidity of any provisions herein shall not render any other 

provision or provisions herein contained unenforceable or invalid. Any provisions found 

to be unenforceable shall be severable from this Assignment. 

7. Cumulative with Other Documents. This Assignment and the covenants, 

agreements, obligation and liabilities ofAssignor hereunder are cumulative with and shall 

not be superseded by any instrument, agreement or other document executed by Assignor 

in favor of Assignee or otherwise. 

8. Further Assurances. Assignor shall take all such steps and actions 

necessary to transfer the registration of the Mark to Assignee and to execute and deliver 

such additional documents and shall cause such further and additional action to be taken 

which Assignee may reasonably require in order to effectuate the terms of this 

Assignment. 

9. Attorneys' Fees. In the event that Assignee is successful in any suit or 

proceeding brought or instituted to enforce any of the provisions of this Assignment, or 

on account of any damages sustained by Assignee by reason of a violation of the terms of 

this Assignment, Assignor hereby agrees to reimburse Assignee for all reasonable 

attorneys' fees incurred. 

10. Survival of Assignment. Assignor hereby acknowledges that this 

Assignment is consideration for Assignee entering into the Asset Purchase Agreement 

with Assignor executed of even date herewith, and that Assignor's obligations in regard 

to this Assignment shall continue after the termination of Assignee's employment. 

IN WITNESS WHEREOF, this instrument has been executed by the parties 

herein in a manner and form sufficient to bind them, as of the day and year first written 

above. 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

By: ~~\'\t"'> Ge fOe :Yle ill 

Its: President 

2 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 61 of 83
VESPA HOLDINGS, INC. 

BY:~C>..~~~
 G A. Yie ~ings

Its: President 

ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., which is the sole member of Vespa Beverages, LLC, and that he was 

duly authorized in his capacity to execute the foregoing instrument for and in the name 

and behalf of Vespa Beverages, LLC, and further stated and acknowledged that he had so 

signed, executed and delivered said foregoing instrument for the consideration, uses and 

purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

lS"'day of-.Mank ,2010. 

~1QJ£: Notary Public 

My commission expires: 

3
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 62 of 83
ACKNOWLEDGMENT
 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me~ a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., and that he was duly authorized in his capacity to execute the foregoing 

instrument for and in the name and behalf of said corporation, and further stated and 

acknowledged that he had so signed, executed and delivered said foregoing instrument 

for the consideration, uses and puzposes therein set forth. 

D').~ DCQ .. ~Dl~__ 

My commission expires: 

ACKNOWLEDGMENT 

STATE OF ARKANSAS
 

COUNTY OF PULASKI
 

) 

)88. 

) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid~ the within named Geffrey A. 

Yielding to me personally well known, and further stated and acknowledged that he had 

so signed, executed and delivered said foregoing instrument for the consideration, uses 

and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

\'i1:ll-uayof_~ ,2010. 

otary 

~}GJt Public 

My commission expires: 

D a- DCR - dQICj 

4 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 63 of 83
SCHEDULE "N" 

BILL OF SALE AND ASSIGNMENT
 

OF
 

GOODWILL AND ALL INTANGmLE PROPERTY
 

THIS BILL OF SAlE AND ASSIGNMENT OF GOODWILL AND ALL 

!NTANGIBLE PROPERTY (the "Agreement") is effective as of "'bq:.~ 19 , 

2010, by and among Vespa Holdings, Inc., an Arkansas corporation ("VHr'), Vespa 

Beverages, LLC, an Arkansas limited liability company ("VBL"), Geffrey A. Yielding 

("Yielding") and PBEV, LLC, a Delaware limited liability company (the "Assignee"). 

Yielding, VHI and VBL are herein collectively referred to as "Assignor." 

WITNESSETH: 

WHEREAS, Assignor is the owner of certain intangible property (the 

"Intangible Properly"), including without limitation all such general intangibles (as 

defined in the Uniform Commercial Code) and Goodwill now owned by Assignor used in 

connection with the business ("BUSiness") of the manufacture and distribution of the 

Killer Buzz energy drink, including, without limitation, all right, title and interest of 

Assignor in and to: 

(a) agreements, leases, licenses, permits and contracts in favor of any 

Assignor or to which any Seller is or may become a party regarding the Business; 

(b) goodwill; 

(c) all intellectual property, including patents, copyrights, trademarks, 

goodwill, and trade secrets; and 

(d) all confidential information relating to the business of any Assignor 

including by way of illustration and not limitation: the names and addresses of, and 

credit and other business information concerning, any Assignor's past, present or future 

customers; the prices which any of Assignor obtains for its services or at which it sells 

merchandise; estimating and cost procedures; profit margins; policies and procedures 

pertaining to the sale and design of inventory, equipment, components, devices and 

services furnished by any Assignor; information concerning distributors, contractors, 

models, advertisers and suppliers of Assignor; and information concerning the manner of 

operation, business plans, projections, and all other information of any kind or character, 

whether or not reduced in writing, with respect to the conduct by any Assignor of the 

Business not generally known by the public; 

WHEREAS, Assignee desires to acquire the Intangible Property from the 

Assignors; 

NOW, THEREFORE, for good and valuable consideration, the receipt and 

sufficiency of which is hereby acknowledged, Assignor hereby agrees to GRANTS, 

1
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 64 of 83
BARGAIN, SELLS, TRANSFERS, CONVEYS, ASSIGNS AND SETS OVER TO 

Assignee all of Assignor's right, title, and interest in and to the Intangible Property as 

follows: 

1. Representations and Warranties. Each Assignor represents and warrants 

to Assignee that such part of the Intangible Property that it is transferring to Assignee has 

good title, and that such Intangible Property is free and clear of all liens and 

encumbrances. 

2. Absolute and Present AssilWIllent. It is understood and agreed the 

assignment granted herein shall constitute an absolute and present assignment from 

Assignor to Assignee and not an assignment for security purposes only. 

3. Indemnification. Assignor agrees to indemnify, defend and hold Assignee 

harmless from and against any expense, loss, damage, claim, causes of action and 

demand (including, without limitation, reasonable attorney's fees and costs) arising out of 

or connected with Assignor's breach under this Assignment. 

4. Successors and Assigns. This Assignment and each and every covenant, 

agreement and provision hereof shall be binding upon Assignor and their successors and 

assigns, and shall inure to the benefit of Assignee and its successors and assigns. As used 

herein, the words "successors and assigns" shall also be deemed to mean the heirs, 

executors, representatives and administrators of any natural person who is a party to this 

Assignment. 

5. Governing Law. The rights and remedies provided to Assignee by this 

Assignment are intended to be governed by the laws of the State of Arkansas without 

regard to its choice of law principles. 

6. Severability Clause. It is the intent of this Assignment to confer to 

Assignee the rights and benefits hereunder to the full extent allowable by law. The 

unenforceability or invalidity of any provisions herein shall not render any other 

provision or provisions herein contained unenforceable or invalid. Any provisions found 

to be unenforceable shall be severable from this Assignment. 

7. Cumulative with Other Documents. This Assignment and the covenants, 

agreements, obligation and liabilities of Assignor hereunder are cumulative with and shall 

not be superseded by any instrument, agreement or other document executed by Assignor 

in favor of Assignee or otherwise. 

8. Further Assurances. Assignor shall take all such steps and actions 

necessary to transfer the Intangible Property to Assignee and to execute and deliver such 

additional documents and shall cause such further and additional action to be taken which 

Assignee may reasonably require in order to effectuate the terms of this Assignment. 

9. Attorneys' Fees. In the event that Assignee is successful in any suit or 

proceeding brought or instituted to enforce any of the provisions of this Assignment, or 

2
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 65 of 83
on account of any damages sustained by Assignee by reason of a violation of the terms of 

this Assignment, Assignor hereby agrees to reimburse Assignee for all reasonable 

attorneys' fees incurred. 

10. Survival of Assignment. Assignor hereby acknowledges that this 

Assignment is consideration for Assignee entering into the Asset Purchase Agreement 

with Assignor executed of even date herewith, and that Assignor's obligations in regard 

to this Assignment shall continue after the termination of Assignee's employment. 

IN WITNESS WHEREOF, this instrument has been executed by the parties 

herein in a manner and form sufficient to bind them, as of the day and year first written 

above. 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

By: ~CA.~~), \;\~ Ge re Yieldl g 5 

Its: President 

VESPA HOLDINGS, INC. 

BY:~~.~~'~ A. Yle In 

Its: President 

3
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 66 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)5S. 

COUNTY OF PUlASKI ) 

ON lHIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., which is the sole member of Vespa Beverages, LLC, and that he was 

duly authorized in his capacity to execute the foregoing instrument for and in the name 

and behalf of Vespa Beverages, LLC, and further stated and acknowledged that he had so 

signed, executed and delivered said foregoing instrument for the consideration, uses and 

purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

ACKNOWLEDGMENT 

My commission expires: 

\ 1~ay of IV\a reb ,2010. 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PUlASKI ) 

ON lHIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., and that he was duly authorized in his capacity to execute the foregoing 

instrument for and in the name and behalf of said corporation, and further stated and 

acknowledged that he had so signed, executed and delivered said foregoing instrument 

for the consideration, uses and purposes therein set forth. 

w... IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

I«t>'·tlayof~ ,2010. I 

Notary Public "'''''''''''''~''~R l ~""', My ~~" ~,,"'~.". 0"0 ~/_ ~" commission expires: ,~t!..V 0" • VA'''' $ v ••:'\....Snl COll.·•••~~

_. "q,~ ~~.."";. ~.

g*fNO.12370208~*

-=- : ::: ~~".~ ~o·~~ 0 ··0.· 2-S.2.()"- •• f

",."J-" •••••••• d~" . • "'l/, ...~r ," ......&&". ilf:fB - "'" ..........,
 4 '"I"lIl1m~~

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 67 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS )
 

)ss.
 

COUNTY OF PULASKI )
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A 

Yielding to me personally well known, and further stated and acknowledged that he had 

so signed, executed and delivered said foregoing instrument for the consideration, uses 

and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

\~""day of M'b. t-c..h.. ,2010. 

My commission expires: 

5
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 68 of 83
SCHEDULE "0" 

BILL OF SALE AND ASSIGNMENT OF TRADE SECRETS 

nus BILL OF SALE AND ASSIGNMENT OF TRADE SECRETS (the 

"Agreement") is effective as of • 2010, by and among Vespa Holdings, 

Inc., an Arkansas corporation ("VHr'), Vespa Beverages, LLC, an Arkansas limited 

liability company ("VBL"), Geffrey A. Yielding ("Yielding") and PBEV, LLC, a 

Delaware limited liability company (the ''Assignee''). Yielding, VHI and VBL are herein 

collectively referred to as "Assignor." 

WITNESSETH: 

WHEREAS, Assignor is the owner of the product (the 

" ") and (the "Formula") therefor, the 

______ and Instructions being collectively referred to herein as the "Trade 

Secrets"; 

WHEREAS, Assignee desires to acquire all rights in the Trade Secrets; 

NOW, THEREFORE, for good and valuable consideration, the receipt and 

sufficiency of which is hereby acknowledged, Assignor hereby agrees to GRANT, 

BARGAINS, SELLS, TRANSFERS, CONVEYS, ASSIGNS AND SETS OVER TO 

Assignee all of Assignor's right, title, and interest in and to the Trade Secrets as follows 

and does hereby disclose the same in the manner set forth on the Exhibits attached hereto 

as Exhibits A & B and incorporated by this reference. 

1. Representation and Warranties. Assignor represents and warrants to 

Assignee that it has good title to the Trade Secrets, and that the Trade Secrets are free and 

clear of all liens and encumbrances whatsoever and that Assignor will forever warrant 

and defend title to the Trade Secrets. 

2. Absolute and Present Assignment. It is understood and agreed the 

assignment granted herein shall constitute an absolute and present assignment from 

Assignor to Assignee and not an assignment for security purposes only. 

3. Indemnification. Assignor agrees to indemnify, defend and hold Assignee 

harmless from and against any expense, loss, damage, claim, causes of action and 

demand (including, without limitation, reasonable attorney's fees and costs) arising out of 

or connected with Assignor's breach under this Assignment. 

4. Successors and Assigns. This Assignment and each and every covenant, 

agreement and provision hereof shall be binding upon Assignor and their successors and 

assigns, and shall inure to the benefit of Assignee and its successors and assigns. As used 

herein, the words "successors and assigns" shall also be deemed to mean the heirs, 

executors, representatives and administrators of any natural person who is a party to this 

Assignment. 

1 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 69 of 83
5. Governing Law. The rights and remedies provided to Assignee by this 

Assignment are intended to be governed by the laws of the State of Arkansas without 

regard to its choice of law principles. 

6. Severability Clause. It is the intent of this Assignment to confer to 

Assignee the rights and benefits hereunder to the full extent allowable by law. The 

unenforceability or invalidity of any provisions herein shall not render any other 

provision or provisions herein contained unenforceable or invalid. Any provisions found 

to be unenforceable shall be severable from this Assignment. 

7. Cumulative with Other Documents. This Assignment and the covenants, 

agreements, obligation and liabilities of Assignor hereunder are cumulative with and shall 

not be superseded by any instrument, agreement or other document executed by Assignor 

in favor of Assignee or otherwise. 

8. Further Assurances. Assignor shall take all such steps and actions 

necessary to transfer the Trade Secrets to Assignee and to execute and deliver such 

additional documents and shall cause such further and additional action to be taken which 

Assignee may reasonably require in order to effectuate the terms of this Assignment. 

9. Attorneys' Fees. In the event that Assignee is successful in any suit or 

proceeding brought or instituted to enforce any of the provisions of this Assignment, or 

on account of any damages sustained by Assignee by reason of a violation of the terms of 

this Assignment, Assignor hereby agrees to reimburse Assignee for all reasonable 

attorneys' fees incurred. 

10. Survival of Assignment. Assignor hereby acknowledges that this 

Assignment is consideration for Assignee entering into the Asset Purchase Agreement 

with Assignor executed of even date herewith, and that Assignor's obligations in regard 

to this Assignment shall continue after the termination of Assignee's employment. 

IN WITNESS WHEREOF, this instrument has been executed by the parties 

herein in a manner and form sufficient to bind them, as of the day and year first written 

above. 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

By: ~e~F't'"

Its: President 

2
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 70 of 83
VESPA HOLDINGS, INC.
 

ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., which is the sole member of Vespa Beverages, LLC, and that he was 

duly authorized in his capacity to execute the foregoing instrument for and in the name 

and behalf of Vespa Beverage, LLC, and further stated and acknowledged that he had so 

signed, executed and delivered said foregoing instrument for the consideration, uses and 

purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

My commission expires: 

l~day of _~I"(,..h ,2010. 

3
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 71 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS )
 

)ss.
 

COUNTY OF PULASKI )
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., and that he was duly authorized in his capacity to execute the foregoing 

instrument for and in the name and behalf of said corporation, and further stated and 

acknowledged that he had so signed, executed and delivered said foregoing instrument 

for the consideration, uses and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

19~ay of--....O\vch ,2010. 

~~Notary Public ~"~::J!i~";.~ My commission expires: $ •• ...fa~1 CO&~'.-'~ $ •••~" T~... :: .el ._ 

S*£No.1237020a1 * :: • • = =~. . .~

~a"A ilIIt: --~ • I"'~ .....

'\I. 

ff> .. 8~ °0 • Z.6.'1: .0 .§ ;:: ACKNOWLEDGMENT .1" ~~

~,#". ,ollg~ltl .~,. l'h",,,".nu\n"" 

STATE OF ARKANSAS }
 

}ss.
 

COUNTY OF PULASKI }
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, and further stated and acknowledged that he had 

so signed, executed and delivered said foregoing instrument for the consideration, uses 

and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

lOY (lay of~tch ,2010. 

My commission expires: 

'D~-{)(P-a.~ __ 

4 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 72 of 83
SCHEDULE "P" 

BILL OF SALE
 

AND
 

TRANSFER OF DOMAIN NAMESS
 

THIS BILL OF SALE AND TRANSFER OF DOMAIN NAMESS (the 

"Agreement") is effective as of UMt'" lfl , 2010, by and among Vespa Holdings, 

Inc., an Arkansas corporation ("VHr), Vespa Beverages, LLC, an Arkansas limited 

liability company ("VBL"), Geffrey A. Yielding ("Yielding") and PBEV, LLC, a 

Delaware limited liability company (the "PBEV"). Yielding, VHI and VBL are herein 

collectively referred to as "Transferor." 

WITNESSETH: 

WHEREAS, Transferor is the owner of the www.killerbuzz.com and 

www.killerbuzz.net domain names (the "Domain Names'') and a myspace page at 

www.myspace.comlkillerlbuzz (the "Myspace Page"), along with all web pages and 

intellectual property related thereto and the content thereof, including the copyright in 

and to such content (collectively with the Domain Names and the Myspace Page, the 

"Sites"); 

WHEREAS, PBEV desires to acquire all rights in the Sites; 

NOW, THEREFORE, for good and valuable consideration, the receipt and 

sufficiency of which is hereby acknowledged, Transferor hereby agrees to GRANT, 

BARGAINS, SELLS, TRANSFERS, CONVEYS, ASSIGNS AND SETS OVER TO 

PBEV all of Transferor's interest in and to the Sites, along with the goodwill associated 

therewith, as follows: 

1. Transfer of Domain Names. 

1.1 Pursuant to the provisions of this Agreement, the Transferor 

hereby agrees to transfer any and all ownership of the registered Domain 

Names to PBEV and PBEV agrees to accept the transfer of the registered 

ownership of the Domain Names. ' 

1.2 The Transferor shall promptly apply to ENOM, Inc. or other 

applicable registrar as necessary (hereinafter "Registrars") to transfer 

ownership and management of the Domain Names to PBEV under current 

procedures of the Registrars for modifying a domain record. Specifically, 

the Transferor will instruct Registrars to change the billing Names, 

technical contact, and administrative contact for the Domain Names to the 

following: 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 73 of 83
Billing Nam~:

PBEV,U.C 

c/o The Parsons Finn, P.C. 

2201 Jack Warner Parkway, Suite 2 

Tuscaloosa, AL 35401 

wcp@parsonsfirm.net 

Technical Contact: 

David Shaddix 

Pate Holdings LT. Manager 

Mobile 205-910-7823 

Office 205-752-0677 

Email:DShaddix@PateHoldings.net 

Administrative Contact: 

David Shaddix 

Pate Holdings I.T. Manager 

Mobile 205-910-7823 

Office 205-752-0677 

Email:DShaddix@PateHoldings.net 

1.4 The Transferor will provide all the information necessary to 

accomplish the transfer of the Domain Names, including the Authorization 

Codes, Security IDs, and Transaction numbers, and fully cooperate with 

PBEV on all matters, including technical issues, to facilitate transfer of the 

Domain Names. 

1.5 The Transferor will refrain from registering or owning any domain 

Names or assert ownership of Internet sites which contain any trademarks 

of PBEV, including the Killer Buzz trademark. 

1.6 A current printout of a WHOIS query provided to PBEV by the 

Transferor will be sufficient evidence of the transfer of the Domain 

Names. 

2. Transfer of Myspace Page. 

2.1. Pursuant to the provisions of this Agreement, the Transferor 

hereby agrees to transfer any and all ownership of the Myspace Page to 

PBEV and PBEV agrees to accept the transfer of the Myspace Page. 

2.2 The Transferor shall promptly supply to PBEV's technical contact, 

as listed in paragraph 1.2 hereabove, the user names and password for the 

Transferor's myspace.com account and other information as necessary to 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 74 of 83
transfer ownership and management of the Myspace Page according to the 

current procedures of myspace.com for modifying account information. 

3. Representation and Warranties. Transferor represents and warrants to 

PBEV that it has good title to the Sites, and that the Sites are free and clear of all liens 

and encumbrances whatsoever and shall forever warrant and defend title to the Sites in 

PBEV. 

4. Absolute and Present Transfer. It is understood and agreed that the 

Transfer granted herein shall constitute an absolute and present Transfer from Transferor 

to PBEV and not an Transfer for security purposes only. 

5. Indemnification. Transferor agrees to indemnify, defend and hold PBEV 

harmless from and against any expense, loss, damage, claim, causes of action and 

demand (including, without limitation, reasonable attorney's fees and costs) arising out of 

or connected with Transferor's breach under this Transfer. 

6. Successors and AssiWlS. This Transfer and each and every covenant, 

agreement and provision hereof shall be binding upon Transferor and their successors and 

assigns, and shall inure to the benefit of PBEV and its successors and assigns. As used 

herein, the words "successors and assigns" shall also be deemed to mean the heirs, 

executors, representatives and administrators of any natural person who is a party to this 

Transfer. 

7. Governing Law. The rights and remedies provided to PBEV by this 

Transfer are intended to be governed by the laws of the State of Arkansas without regard 

to its choice of law principles. 

8. Severability Qause. It is the intent of this Transfer to confer to PBEV the 

rights and benefits hereunder to the full extent allowable by law. The unenforceability or 

invalidity of any provisions herein shall not render any other provision or provisions 

herein contained unenforceable or invalid. Any provisions found to be unenforceable 

shall be severable from this Transfer. 

9. Cumulative with Other Documents. This Transfer and the covenants, 

agreements, obligation and liabilities of Transferor hereunder are cumulative with and 

shall not be superseded by any instrument, agreement or other document executed by 

Transferor in favor of PBEV or otherwise. 

10. Further Assurances. Transferor shall take all such steps and actions 

necessary to transfer the registration of the Sites to PBEV and to execute and deliver such 

additional documents and shall cause such further and additional action to be taken which 

PBEV may reasonably require in order to effectuate the terms of this Transfer. 

11. Attorneys' Fees. In the event that PBEV is successful in any suit or 

proceeding brought or instituted to enforce any of the provisions of this Transfer, or on 

account of any damages sustained by PBEV by reason of a violation of the terms of this 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 75 of 83
Transfer, Transferor hereby agrees to reimburse PBEV for all reasonable attorneys' fees 

incurred. 

12. Survival of Transfer. Transferor hereby acknowledges that this Transfer is 

consideration for PBEV entering into the Asset Purchase Agreement with Transferor 

executed of even date herewith, and that Transferor's obligations in regard to this 

Transfer shall continue after the termination of PBEV's employment. 

IN WITNESS WHEREOF, this instrument has been executed by the parties 

herein in a manner and form sufficient to bind them, as of the day and year first written 

above. 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

VESPA HOLDINGS, INC. 

BY:~~~~~

Its: President 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 76 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS )
 

)ss.
 

COUNTY OF PUlASKI )
 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., which is the sole member of Vespa Beverages, LLC, and that he was 

duly authorized in his capacity to execute the foregoing instrument for and in the name 

and behalf of Vespa Beverages, LLC, and further stated and acknowledged that he had so 

signed, executed and delivered said foregoing instrument for the consideration, uses and 

purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 

\t*"day of N\aN.-h , 2010. 

~1Ql\ Notary Public \,,,111111111, 

').'\\\ III" 

My commission expires: ~"\\~fi(,~.~.~IIb. 1',,~ ~.. c •• ~'" -~ ••• Ilo.fo~l o&+.;:~ $ ~._~ J).. O~· Ou - ~o 19 ... "..- 0_

~~lNO 12370208~-Ie§ S]rll~ • :coE' 

~- "a"'b·. 

o ~J- I;)'-'t> ..

. ......J'" 2.6.1: •• 1t~,,_~. 4 • -••• •••• 9:--~ ~~

-=- JP'V ".~ It.... ""'._,. Bl.l" \,\\~ -"IIi/II 1I1l"'\ 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 77 of 83
ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, who stated that he was the President of Vespa 

Holdings, Inc., and that he was duly authorized in his capacity to execute the foregoing 

instrument for and in the name and behalf of said corporation, and further stated and 

acknowledged that he had so signed, executed and delivered said foregoing instrument 

for the consideration, uses and purposes therein set forth. 

My commission expires: 

ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)88. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified 

and acting, within and for the County and State aforesaid, the within named Geffrey A. 

Yielding to me personally well known, and further stated and acknowledged that he had 

so signed, executed and delivered said foregoing instrument for the consideration, uses 

and purposes therein set forth. 

My commission expires: 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 78 of 83
SCHEDULE"Q"
 

ASSINGMENI OF CONTRActS
 

KNOW ALL MEN BY THESE PRESENTS:
 

TIIAT the undersigned, Vespa Holdings, Inc., an Arkansas corporation, Vespa Beverages, 

LLC, an Arkansas limited liability company, and Geffrey A Yielding, collectively, ASSIGNOR, 

for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable 

consideration in hand paid by PBEV, LLC, a Delaware limited liability company, ASSIGNEE, the 

receipt and sufficiency ofwhich is hereby acknowledged, does hereby sell, assign, transfer, deliver 

and convey unto the Assignee and its successors and assigns, those agreements listed on Exhibit A 

which is made a part hereof and incorporated herein (the "Assigned Contracts"). 

IN WITNESS WHEREOF, Grantor has executed and delivered this instrument on and as of 

this 11~ day of t=lhfU.~ , 2010. 

ASSIGNOR: 

VESPA BEVERAGES, LLC 

By: Vespa Holdings, Inc. 

Its: Sole Member 

VESPA HOLDINGS, INC.
 

\\~).\.A- CAr\.l~~__ 

G~eldinifhdiViduilJi

1 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 79 of 83
set my hand and official seal this day of 

ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON TIllS DAY came before me, a Notary Public, duly commissioned, qualified and acting, 

within and for the County and State aforesaid, the within named Geffrey A. Yielding to me 

personally well known, who stated that he was the President ofVespa Holdings, Inc., which is the 

sole member ofVespa Beverages, LLC, and that he was duly authorized in his capacity to execute 

the foregoing instrument for and in the name and behalf of Vespa Beverages, ILC, and further 

stated and acknowledged that he had so signed, executed and delivered said foregoing instrument for 

the consideration, uses and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have here 

--ft'<ar~ ,2010. 

My commission expires: 

00.- D(,q - Q() 15 

ACKNOWLEDGMENT 

STATE OF ARKANSAS ) 

)ss. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and acting, 

within and for the County and State aforesaid, the within named Geffrey A. Yielding to me 

personally well known, who stated that he was the President ofVespa Holdings, Inc., and that he 

was duly authorized in his capacity to execute the foregoing instrument for and in the name and 

behalfofsaid corporation, and further stated and acknowledged that he had so signed, executed and 

delivered said foregoing instrument for the consideration, uses and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this Yi.~ay of 

,2010. 

Notary Public 

My commission expires: 

D~ - 0(; - ~olq

3 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 80 of 83
ACKNOWLEDGMENT
 

STATE OF ARKANSAS ) 

)88. 

COUNTY OF PULASKI ) 

ON THIS DAY came before me, a Notary Public, duly commissioned, qualified and acting, 

within and for the County and State aforesaid, the within named GetTrey A. Yielding to me 

personally well known, and further stated and acknowledged that he had so signed, executed and 

delivered said foregoing instrument for the consideration, uses and purposes therein set forth. 

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this l8!~ay of 

l'l\arch ,2010. 

My commission expires: 

4
 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 81 of 83
SPECIFIC POWER OF ATTOIlliEY
 

I, GEFFREY A. YIELDING, whose residence is Jacksonville Arkansas, hereby appoint 

SAMUEL A. PERRONI and SHEILY HOGAN KOEHLER, jointly and severally, whose 

residence are Little Rock, Arkansas, my true and lawful agents and attorneys in fact to act in my 

name and behalf to do any and all lawful things which I could do myself with respect to any and all 

property (real and personal, including interests therein) of every kind and character owned by me at 

this time and which may be owned by me while this power of attorney remains in effect, including 

(without limiting the generality hereof) the following rights: 

a. To sell, convey, mortgage and lease realty; to execute, acknowledge and deliver 

deeds, mortgages, leases, releases, satisfactions and any other instruments relating to realty which my 

attorney considers necessary or appropriate; to operate, manage, control and lease any and all realty 

owned by me and to collect, demand and receive the rents, issues, incomes and profits derived 

therefrom; and to exercise in all respects general control and supervision over any realty belonging 

tome; 

b. To demand, sue for, collect, receive and hold any and all monies, securities and 

personal property of any nature whatsoever belonging to me or in which I may have an interest, and 

to give good and valid receipts and discharges for such payments; 

c. To borrow money for me and to secure any loan to me with a mortgage on or 

security interest in any real or personal property owned by me if, in my attorneys' judgment, such 

action should be necessary or appropriate; 

d. To loan money for me upon such terms and conditions as my attorneys sees fit, and 

to otherwise make such investments and reinvestments of any of my properties as my attorneys 

deems to be for my best interests; 

e. To endorse checks and other instruments made payable to me; 

f. To carry bank accounts for me in my name in such bank. or banks as my attorneys 

may deem appropriate; to make deposits of money belonging to me in such account or accounts and 

to disburse such funds on my attorneys' signatures in any amounts, for such purposes and at such 

times as my attorneys may deem appropriate (including payments and expenditures for the 

maintenance, upkeep, repair or any other purpose in connection with any real or personal property 

owned by me; and for any other purpose which my attorneys may deem necessary or appropriate for 

the proper administration ofmy affairs); 

g. To exercise general supervision and control over any securities and other personal 

property of any nature whatsoever belonging to me; to collect dividends, profits or accruals 

therefrom and thereon; to sell or exercise stock options; to vote my stock; and to take any and all 

action which I could take myself with respect to all securities now owned by me or which may be 

hereafter acquired by my attorney for me; 

h. To open accounts in my name or in my attorneys' name as my agents and attomeys 

Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 82 of 83
in fact; 

i. To transfer or withdraw monies on deposit to my credit in any bank or other 

financial institution; and to close any accounts where money is on deposit to my credit; 

j. To execute and deliver any instruments and to do any and all things which may be 

legally done and are necessary or appropriate to carry out the power and authority hereby granted 

and conferred. 

I hereby grant unto my attorneys, jointly and severally, in fact full power and authority' to 

perform any act whatsoever requisite, necessary or appropriate to be done (as determined in my 

attorney's sole and unrestricted judgment and discretion) with respect to any and all of my property 

as fully as I might or could do if personally present with full power ofsubstitution and revocation. I 

hereby ratify and confmn all that my attorneys in fact may have heretofore done in my name and 

behalf and all that my attorneys may hereafter do pursuant to the power of attorney hereby granted. 

This power of attorney shall remain in full force and effect until revoked by me by an 

instrument in writing duly signed, acknowledged and filed for record in the records of Pulaski 

County, Arkansas. 

IN WITNESS WHEREOF, I have affixed my signature on this Ipo day of February, 

2010. 

ACKNOWLEDGEMENT 

State of Arkansas ) 

) ss 

County of Pulaski ) 

On this day before me, Notary Public, duly commissioned, qualified and acting within and 

for the County and State aforesaid, appeared in person Geffrey Yielding, to me well known, who 

stated that he had executed the aforesaid Power ofAttorney. 

WitnessmYb2ndandSealthis~daYOfFebruary~~l~

Notary Public 11111 \\'\\",11 ,.'"",I,,, ",,'\ L. rlllJ~""",

My commission expires: O)~oc.. ·;)D'9 .l_)~.··:;co:;··:'/' ~-.~..fj~ '1./:.. §OJ:·w J-.. ::.~ Ct- ir-:::' 

::: 2.3102.0": ext E S~~~o.'\ -=-""P' -. . 

:!'ltB r.. _ ..... "",,-v. .... 

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Case 4:09-cv-00371-SWW Document 150 Filed 03/22/10 Page 83 of 83