Document:

PURPLE
      BEVERAGE COMPANY, INC.

    

    SUBSCRIPTION
      AGREEMENT

    

    Purple
      Beverage Company, Inc. 450 E.

    Las
      Olas
      Blvd., Suite 830 Ft.

    Lauderdale,
      Florida 33301 

    Attn:
      Theodore Farnsworth, CEO

     

    Dear
      Mr.
      Farnsworth:

     

    The
      undersigned, Jay-2 Investments, LLC, a California limited liability company,
      hereby subscribes to purchase the securities (the “Securities”)
      of
      Purple Beverage Company, Inc., a Nevada corporation (the “Company”),
      consisting of a promissory note in the face amount of $1,000,000 (the
“Note”),
      in
      the form attached hereto as Exhibit A; not less than 200,000 shares (the
“Shares”)
      of the
      Company’s $.001 par value Common Stock (“Common
      Stock”);
      a
      two-year warrant, in the form attached hereto as Exhibit B (the “A
      Warrant”),
      to
      purchase up to 200,000 shares of the Company’s Common Stock (the number of
      shares of the Company’s Common Stock underlying the A Warrant to be calculated
      on a pro rata basis as determined by the face amount of the Note) at an exercise
      price of $2.00 per underlying share (the “Initial
      Warrant Exercise Price”),
      in
      accordance with this agreement. This subscription may be rejected in whole
      or in
      part by the Company, in its sole and absolute discretion for any cause or for
      no
      cause.

     

    If,
      between the date that the undersigned has completed the subscription procedures
      as set forth in this Subscription Agreement and the date on which such
      subscription is accepted by the Company pursuant to section 5, below, the
      Company subdivides or combines its issued and outstanding shares, the number
      of
      Shares set forth here and above, the number of shares represented by the A
      Warrant, and the Initial Warrant Exercise Price shall be proportionately
      adjusted. Any questions regarding this document or the investment described
      herein should be directed to Theodore Farnsworth, Chief Executive Officer,
      Purple Beverage Company, Inc., 450 E. Las Olas Blvd., Suite 830, Ft. Lauderdale,
      Florida 33301; telephone: (877) 347-3836 X 210, fax: (954) 462-8758; e-mail:
      tfarnsworth@drinkpurple.com.

     

    1. Purchase.
      Subject
      to the terms and conditions hereof, the undersigned hereby irrevocably agrees
      to
      purchase the Securities, consisting of (a) the Note with an initial face amount
      of $1,000,000; (b) that number of Shares set forth on the Signature Page (such
      Shares valued at the 10-trading-day Volume Weighted Average Price, with the
      final such trading day being the trading day immediately preceding the execution
      of this Subscription Agreement by the undersigned, but in no event, valued
      at
      less than $2.00 per Share); and (c) an A Warrant to purchase up to 200,000
      shares of Common Stock, for an aggregate subscription price of $1,000,000,
      and
      tenders such purchase price by means of a check (cashiers, certified, or
      personal), money order, or wire transfer made payable to: “Purple
      Beverage Company, Inc.”
The
      wire transfer instructions are:

     

    Wachovia
      Bank

    350
      East
      Las Olas Blvd., Suite 830 

    Fort
      Lauderdale, FL 33301

    954-462-8382

     

    
      
        
        

      

      
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    Name:
      Purple Beverage Company, Inc. 

    Routing#:
      067 006 432

    Account#:
      200 003 459 5990

     

    2. Representations
      and Warranties of the Purchaser.
      The
      undersigned hereby makes the following representations and warranties to the
      Company, and the undersigned agrees to indemnify, hold harmless, and pay all
      causes of action, lawsuits, debts, controversies, damages, claims, demands
      and
      judgments (including litigation expenses and reasonable attorneys’ fees) up to
      an amount not to exceed $1,000,000 and the net proceeds from the sale of the
      Shares and Common Stock issuable upon exercise of the A Warrants, incurred
      by
      the Company, and its past and present officers, directors, employees, agents,
      successors and assigns, whether or not under federal or state securities laws,
      arising out of or in connection with the undersigned’s misrepresentation or
      breach of any of the representations and warranties set forth herein, including,
      without limitation,

     

    
      	 	
              (a)

            	
              The
                undersigned is the sole and true party in interest and is not purchasing
                the Securities for the benefit of any other person and has not granted
                any
                other person any right or option or any participation or beneficial
                interest in any of the Securities;

            

    

     

    
      	 	
              (b)

            	
              The
                undersigned confirms receipt and careful review of all written material
                provided by, or on behalf of, the Company in respect of its business
                and
                prospects, and all information provided by the Company to its stockholders
                and the undersigned in respect of its business and prospects, including
                all attachments and exhibits thereto The undersigned understands
                that all
                books, records, and documents of the Company relating to this investment
                have been and remain available for inspection by the undersigned
                upon
                reasonable notice. The undersigned confirms that all documents requested
                by the undersigned have been made available, and that the undersigned
                has
                been supplied with all of the additional information concerning this
                investment that has been requested. The undersigned confirms that
                it has
                obtained sufficient information, in its judgment or that of its
                independent purchaser representative, if any, to evaluate the merits
                and
                risks of this investment. The undersigned confirms that it has had
                the
                opportunity to obtain such independent legal and tax advice and financial
                planning services as the undersigned has deemed appropriate prior
                to
                making a decision to subscribe for the Securities. In making a decision
                to
                purchase the Securities, the undersigned has relied exclusively upon
                its
                experience and judgment, or that of its purchaser representative,
                if any,
                upon such independent investigations as it, or they, deemed appropriate,
                and upon information provided by the Company in writing or found
                in the
                books, records, or documents of the Company and available at the
                EDGAR
                website of the Securities and Exchange Commission (the “SEC”);

            

    

     

    
      
        
        

      

      
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              (c)

            	
              In
                evaluating the suitability of this investment the undersigned has
                not
                relied upon any representations or other information (whether oral
                or
                written), other than that furnished to the undersigned by the Company
                or
                its representatives or available at the EDGAR website of the SEC.
                The
                undersigned acknowledges and represents that no representations or
                warranties have been made to the undersigned by the Company or its
                directors, officers or any agents or representatives with respect
                to the
                business of the Company, the financial condition of the Company and/or
                the
                economic, tax or any other aspect or consequence of the purchase
                of the
                Securities and the undersigned has not relied upon any information
                concerning the Company, written or oral, other than supplied to the
                undersigned by the Company or available at the EDGAR website of the
                SEC;

            

    

     

    
      	 	
              (d)

            	
              The
                undersigned has such knowledge and experience in financial and business
                matters that the undersigned is capable of an evaluation of the merits
                and
                risks of the undersigned’s investment in the
                Securities;

            

    

     

    
      	 	
              (e)

            	
              THE
                UNDERSIGNED IS AWARE THAT AN INVESTMENT IN THE COMPANY IS HIGHLY
                SPECULATIVE AND SUBJECT TO SUBSTANTIAL RISKS.
                The undersigned is capable of bearing the high degree of economic
                risk and
                burdens of this venture, including, but not limited to, the possibility
                of
                a complete loss, the lack of a sustained and orderly public market,
                and
                limited transferability of the Securities, which may make the liquidation
                of this investment impossible for the indefinite future. The undersigned
                has the financial ability to bear the economic risks of its investment,
                has adequate means of providing for its current needs and personal
                contingencies, and has no need for liquidity in this investment.
                The
                undersigned’s commitment to investments that are not readily marketable is
                not disproportionate to its net worth, and this investment will not
                cause
                such overall commitment to become
                excessive;

            

    

     

    
      	 	
              (f)

            	
              The
                offer to sell the Securities was directly communicated to the undersigned
                by such a manner that the undersigned, or his purchaser representative,
                if
                any, was able to ask questions of and receive answers from the Company
                or
                a person acting on its behalf concerning the terms and conditions
                of this
                transaction. At no time, except in connection and concurrently with
                such
                communicated offer, was the undersigned presented with or solicited
                by or
                through any leaflet, public promotional meeting, television advertisement,
                or any other form of general
                advertising;

            

    

     

    
      	 	
              (g)

            	
              The
                Securities are being acquired solely for the undersigned’s own account for
                investment, and are not being purchased with a view towards resale,
                distribution, subdivision, or fractionalization
                thereof;

            

    

     

    
      
        
        

      

      
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              (h)
                

            	
              The
                undersigned understands that the Securities have not been registered
                under
                the Securities Act of 1933, as amended (the “Securities
                Act”),
                or any state securities laws, in reliance upon exemptions from regulation
                for non-public offerings. The undersigned understands that the Securities
                or any interest therein may not be, and agrees that the Securities
                or any
                interest therein will not be, resold or otherwise disposed of by
                the
                undersigned unless the Securities are subsequently registered under
                the
                Securities Act and under appropriate state securities laws or unless
                the
                Company receives an opinion of counsel satisfactory to it that an
                exemption from registration is
                available

            

    

     

    
      	 	
              (i)

            	
              The
                undersigned has been informed of and understands the
                following.

            

    

     

    
      	 	
              (1)

            	
              There
                are substantial restrictions on the transferability of the
                Securities;

            

    

     

    
      	 	
              (2)
                

            	
              No
                federal or state agency has made any finding or determination as
                to the
                fairness for public investment, nor any recommendation nor endorsement,
                of
                the Securities;

            

    

     

    
      	 	
              (j)
                

            	
              None
                of the following information has ever been represented, guaranteed,
                or
                warranted to the undersigned, expressly or by implication by any
                broker,
                the Company, or agent or employee of the foregoing, or by any other
                person:

            

    

     

    
      	 	
              (1)

            	
              The
                approximate or exact length of time that the undersigned will be
                required
                to remain a holder of the
                Securities;

            

    

     

    
      	 	
              (2)

            	
              The
                amount of consideration, profit, or loss to be realized, if any,
                as a
                result of an investment in the
                Company;

            

    

     

    
      	 	
              (3)
                

            	
              That
                the past performance or experience of the Company; its officers,
                directors, associates, agents, affiliates, or employees; or any other
                person will in any way indicate or predict economic results in connection
                with the plan of operations of the Company or the return on the
                investment;

            

    

     

    
      	 	
              (k)

            	
              The
                undersigned has not distributed any information relating to this
                investment to anyone other than its members representative, and legal,
                tax
                and financial advisors, if any;

            

    

     

    
      	 	
              (l)
                

            	
              The
                undersigned hereby agrees to indemnify the Company and to hold it
                harmless
                from and against any and all liability, damage, cost, or expense,
                including its attorneys’ fees and costs, up to an amount not to exceed
                $1,000,000 and the net proceeds from the sale of the Shares and Common
                Stock issuable upon exercise of the A Warrants, incurred on account
                of or
                arising out of.

            

    

     

    
      
        
        

      

      
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              (1)

            	
              Any
                material inaccuracy in the declarations, representations, and warranties
                hereinabove set forth;

            

    

     

    
      	 	
              (2)

            	
              The
                disposition of the Securities or any part thereof by the undersigned,
                contrary to the foregoing declarations, representations, and
                warranties;

            

    

     

    
      	 	
              (3)

            	
              Any
                action, suit, or proceeding based
                upon:

            

    

     

    
      	 	
              (i)

            	
              the
                claim that said declarations, representations, or warranties were
                inaccurate or misleading or otherwise cause for obtaining damages
                or
                redress from the Company; or

            

    

     

    
      	 	
              (ii)

            	
              the
                disposition of the Securities or any part
                thereof.

            

    

     

    The
      foregoing representations, warranties, agreements, undertakings and
      acknowledgements are made by the undersigned with the intent that they be relied
      upon in determining the undersigned’s suitability as a purchaser of the
      Securities. In addition, the undersigned agrees to notify the Company
      immediately of any change in any representation, warranty or other information
      that occurs prior to the
      issue
      date of the Securities.

     

    3. Transferability.
      Prior
      to the issue date of the Securities, the undersigned agrees not to transfer
      or
      assign the obligations or duties contained in this Subscription Agreement or
      any
      of the undersigned’s interest in this Subscription Agreement except to a
      subsidiary or affiliate of the undersigned.

     

    4. Accredited
      Investor; Off-Shore Transaction; Not a U.S. Person.
      The
      undersigned is an “accredited
      investor,”
as
      that term is defined in Rule 501(c) of Regulation D promulgated under the
      Securities Act.

     

    5. Acknowledgements,
      Understandings, and Agreements of the Purchaser.
      The
      undersigned acknowledges, understands, and agrees that

     

    
      	 	
              (a)

            	
              The
                Company reserves the right to reject all, but not less than all of
                this
                subscription in its sole and absolute discretion for any cause or
                for no
                cause;

            

    

     

    
      	 	
              (b)

            	
              The
                undersigned will be promptly notified by the Company whether this
                subscription has been accepted, and if not accepted in whole, the
                Company
                will promptly pay and the undersigned agrees to accept the return
                of all
                of the funds tendered to the Company as a refund or a return, and
                in
                either case without interest thereon or deduction
                therefrom;

            

    

     

    
      	 	
              (c)

            	
              The
                Securities shall be deemed issued and owned by the undersigned upon
                the
                Company’s receipt of the purchase price therefor and its acceptance
                thereof;

            

    

     

    
      
        
        

      

      
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              (d)

            	
              The
                Securities (and their component parts) have not been registered under
                the
                Securities Act or any other applicable securities laws, by reason
                of their
                issuance in a transaction that does not require registration thereunder
                (based in part on the accuracy of the representations and warranties
                of
                the undersigned contained herein), and that the Securities must be
                held
                indefinitely unless a subsequent disposition is registered as required
                or
                is exempt from such registration;

            

    

     

    
      	 	
              (e)

            	
              The
                SEC currently takes the position that coverage of short sales of
                shares of
                the Company’s Common Stock “against
                the box”
                prior to the effective date of a Registration Statement registering
                the
                re-sale of the Shares is a violation of Section 5 of the Securities
                Act,
                as set forth in Item 65, Section 5 under Section A of the Manual
                of
                Publicly Available Telephone Interpretations, dated July 1997, compiled
                by
                the Office of Chief Counsel, Division of Corporation Finance of the
                SEC;
                and

            

    

     

    
      	 	
              (f)

            	
              The
                undersigned shall not use any of the Shares to cover any short sales
                made
                prior to the effective date of such registration
                statement

            

    

     

    6. Representations
      and Warranties of the Company.
      The
      Company hereby makes the following representations and warranties to the
      Purchaser:

     

    
      	 	
              (a)

            	
              Due
                Incorporation.
                The Company is a corporation or other entity duly incorporated or
                organized, validly existing and in good standing under the laws of
                the
                jurisdiction of its incorporation or organization and has the requisite
                corporate power to own its properties and to carry on its business
                as
                presently conducted. The Company is duly qualified as a foreign
                corporation to do business and is in good standing in each jurisdiction
                where the nature of the business conducted or property owned by it
                makes
                such qualification necessary, other than those jurisdictions in which
                the
                failure to so qualify would not have a Material Adverse Effect. For
                purposes hereof, a “Material
                Adverse Effect”
                shall mean a material adverse effect on the financial condition,
                results
                of operations, prospects, properties, or business of the Company
                and its
                Subsidiaries taken as a whole. For purposes of this Agreement,
                “Subsidiary”
                means, with respect to any entity at any date, any corporation, limited
                or
                general partnership, limited liability company, trust, estate,
                association, joint venture or other business entity of which more
                than 30%
                of (i) the outstanding capital stock having (in the absence of
                contingencies) ordinary voting power to elect a majority of the board
                of
                directors or other managing body of such entity, (ii) in the case
                of a
                partnership or limited liability company, the interest in the capital
                or
                profits of such partnership or limited liability company or (iii)
                in the
                case of a trust, estate, association, joint venture or other entity,
                the
                beneficial interest in such trust, estate, association or other entity
                business is, at the time of determination, owned or controlled directly
                or
                indirectly through one or more intermediaries, by such entity. As
                of the
                date hereof, the Company does not have any
                Subsidiaries.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              Outstanding
                Stock.
                All issued and outstanding shares of capital stock of the Company
                have
                been duly authorized and validly issued and are fully paid and
                non-assessable.

            

    

     

    
      	 	
              (c)

            	
              Authority;
                Enforceability.
                This Agreement, the Note, the Shares, the A Warrant, and all other
                agreements delivered together with this Agreement or in connection
                herewith to which the Company is a party (collectively, the “Transaction
                Documents”)
                have been duly authorized, executed and delivered by the Company
                and are
                valid and binding agreements of the Company enforceable in accordance
                with
                their terms, subject to bankruptcy, insolvency, fraudulent transfer,
                reorganization, moratorium and similar laws of general applicability
                relating to or affecting creditors’ rights generally and to general
                principles of equity. The Company has full corporate power and authority
                necessary to enter into and deliver the Transaction Documents and
                to
                perform its obligations thereunder.

            

    

     

    
      	 	
              (d)
                

            	
              Capitalization
                and Additional Issuances.
                The authorized and outstanding capital stock of the Company and
                Subsidiaries as of the date of this Agreement is set forth in the
                Company’s Registration Statement on Form S-1, Pre-Effective Amendment No.
                2 (the “S-1”),
                as filed with the SEC on July 2,
                2008.
                Subject to a standard threshold of materiality, there are no outstanding
                agreements or preemptive or similar rights affecting the Common Stock
                or
                equity and no outstanding rights, warrants or options to acquire,
                or
                instruments convertible into or exchangeable for, or agreements or
                understandings with respect to the sale or issuance of any shares
                of
                Common Stock or equity of the Company or Subsidiaries or other equity
                interest in the Company or Subsidiaries except as described
                therein.

            

    

     

    
      	 	
              (e)

            	
              Consents.
                No consent, approval, authorization or order of any court, governmental
                agency or body or arbitrator having jurisdiction over the Company,
                Subsidiaries or any of their Affiliates, the OTC Bulletin Board
                (“OTCBB”)
                or the Company’s shareholders is required for the execution by the Company
                of the Transaction Documents and compliance and performance by the
                Company
                of its obligations under the Transaction Documents, including, without
                limitation, the issuance and sale of the Securities and the shares
                of
                Common Stock issuable upon exercise of the A Warrants (“Warrant
                Shares”).
                The Transaction Documents and the Company’s performance of its obligations
                thereunder have been approved by the Company’s Board of
                Directors.

            

    

     

    
      	 	
              (f)

            	
              No
                Violation or Conflict.
                Assuming the representations and warranties of the undersigned and
                the
                acknowledgements, understandings, and agreements of the undersigned
                contained herein are true and correct, neither the issuance and sale
                of
                the Securities and Warrant Shares nor the performance of the Company’s
                obligations under the Transaction Documents by the Company
                will:

            

    

     

    
      
        
        

      

      
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        (i)
          violate,
          conflict with, result in a breach of, or constitute a default (or an event
          which
          with the giving of notice or the lapse of time or both would be reasonably
          likely to constitute a default) under (A) the articles of incorporation
          or
          bylaws of the Company, (B) to the Company’s knowledge, any decree, judgment,
          order, law, treaty, rule, regulation or determination applicable to the
          Company
          of any court, governmental agency or body, or arbitrator having jurisdiction
          over the Company or over the properties or assets of the Company, (C) the
          terms
          of any bond, debenture, note, or any other evidence of indebtedness, or
          any
          agreement, stock option or other similar plan, indenture, lease, mortgage,
          deed
          of trust, or other instrument to which the Company is a party, by which
          the
          Company is bound, or to which any property of the Company is subject, or
          (D) the
          terms of any “lock-up” or similar provision of any underwriting or other
          agreement to which the Company, or any of its Affiliates is a party or
          obligor,
          except the violation, conflict, breach, or default of which would not have
          a
          Material Adverse Effect or

      

    

     

    (ii) result
      in
      the creation or imposition of any lien, charge or encumbrance upon the
      Securities or any of the assets of the Company except as described herein;
      or

     

    (iii) result
      in
      the acceleration of the due date of any obligation of the Company;
      or

     

    (iv) will
      result in the triggering of any piggy-back registration rights, ratchet,
      anti-dilution, price reset or similar rights of any person or entity holding
      securities of the Company or having the right to receive securities of the
      Company.

     

    
      	 	
              (g)

            	
              The
                Securities.
                The Securities upon issuance:

            

    

     

    (i) are,
      or
      will be, free and clear of any security interests, liens, claims or other
      encumbrances, subject to restrictions upon transfer under the Securities Act
      and
      any applicable state securities laws;

     

    (ii) have
      been, or will be, duly and validly authorized and on the date of issuance of
      the
      Shares and Warrant Shares, such Shares and Warrant Shares will be duly and
      validly issued, fully paid and non-assessable and if registered pursuant to
      the
      Securities Act and resold pursuant to an effective registration statement will
      be free trading and unrestricted;

     

    (iii) will
      not
      have been issued or sold in violation of any preemptive or other similar rights
      of the holders of any securities of the Company; and

     

    (iv) will
      not
      subject the holders thereof to personal liability by reason
      of
      solely being such holders.

    
      
        
        

      

      
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    (h) Litigation.
      There
      is no pending or, to the best knowledge of the Company, threatened action,
      suit,
      proceeding or investigation before any court, governmental agency or body,
      or
      arbitrator having jurisdiction over the Company, that would affect the execution
      by the Company or the performance by the Company of its obligations under the
      Transaction Documents. There is no pending or, to the best knowledge of the
      Company, basis for or threatened action, suit, proceeding or investigation
      before any court, governmental agency or body, or arbitrator having jurisdiction
      over the Company, which litigation, if adversely determined, would have a
      Material Adverse Effect

     

    
      	 	
              (i)

            	
              No
                Market Manipulation.
                The Company has not taken, and will not take, directly or indirectly,
                any
                action designed to, or that might reasonably be expected to, cause
                or
                result in stabilization or manipulation of the price of the Common
                Stock
                to facilitate the sale or resale of the Securities or Warrant Shares
                or
                affect the price at which the Securities or Warrant Shares may be
                issued
                or resold.

            

    

     

    
      	 	
              (j)

            	
              Information
                Concerning Company.
                Since the dates of the most recent financial statements included
                in the
                S-1, there has been no Material Adverse Event relating to the Company’s
                business, financial condition or affairs not disclosed therein. The
                S-1,
                including the exhibits and financial statements included therewith,
                does
                not contain any untrue statement of a material fact or omit to state
                a
                material fact required to be stated therein or necessary to make
                the
                statements therein, taken as a whole, not misleading in light of
                the
                circumstances when made.

            

    

     

    
      	 	
              (k)

            	
              Stop
                Transfer.
                The Company will not issue any stop transfer order or other order
                impeding
                the sale, resale, or delivery of any of the Securities, except as
                may be
                required by any applicable federal or state securities laws and unless
                contemporaneous notice of such instruction is given to the
                undersigned.

            

    

     

    
      	 	
              (l)
                

            	
              Defaults.
                The Company is not in violation of its articles of incorporation
                or
                bylaws. The Company is not in (i) default under or in violation of
                any
                other material agreement or instrument to which it is a party or
                by which
                it or any of its properties are bound or affected, which default
                or
                violation would have a Material Adverse Effect, (ii) default with
                respect
                to any order of any court, arbitrator or governmental body or subject
                to
                or party to any order of any court or governmental authority arising
                out
                of any action, suit or proceeding under any statute or other law
                respecting antitrust, monopoly, restraint of trade, unfair competition,
                or
                similar matters, or (iii) violation of any statute, rule, or regulation
                of
                any governmental authority which violation would have a Material
                Adverse
                Effect.

            

    

     

    
      
        
        

      

      
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              (m)

            	
              No
                General Solicitation.
                The Company, and to its knowledge, no person acting on its behalf,
                has
                engaged in any form of general solicitation or general advertising
                (within
                the meaning of Regulation D under the Securities Act) in connection
                with
                the offer or sale of the
                Securities.

            

    

     

    
      	 	
              (n)

            	
              No
                Undisclosed Liabilities.
                The Company has no liabilities or obligations which are material,
                individually or in the aggregate, other than those incurred in the
                ordinary course of the Company business since the date of the most
                recent
                audited financial statements of the Company contained in the S-1,
                and
                which, individually or in the aggregate, would reasonably be expected
                to
                have a Material Adverse Effect

            

    

     

    
      	 	
              (o)

            	
              No
                Undisclosed Events or Circumstances.
                Since the date of the most recent audited financial statements of
                the
                Company contained in the S-1, no event or circumstance has occurred
                or
                exists with respect to the Company or its business, properties, operations
                or financial condition, that, under applicable law, rule or regulation,
                requires public disclosure or announcement prior to fourteen days
                after
                the date hereof by the Company but which has not been so publicly
                announced or disclosed in the S-1.

            

    

     

    
      	 	
              (p)

            	
              Dilution.
                The Company’s executive officers and director understand the nature of the
                Securities being sold hereby and recognize that the issuance of the
                Securities and Warrant Shares will have a potential dilutive effect
                on the
                equity holdings of other holders of the Company’s equity or rights to
                receive equity of the Company. The board of directors of the Company
                has
                concluded, in its good faith business judgment, that the issuance
                of the
                Securities is in the best interests of the Company. The Company
                specifically acknowledges that its obligation to issue the Warrant
                Shares
                upon exercise of the A Warrant is binding upon the Company and enforceable
                regardless of the dilution such issuance may have on the ownership
                interests of other stockholders of the Company or parties entitled
                to
                receive equity of the Company.

            

    

     

    
      	 	
              (q)
                

            	
              No
                Disagreements with Accountants and Lawyers.
                There are no material disagreements of any kind presently existing,
                or
                reasonably anticipated by the Company to arise between the Company
                and the
                accountants and lawyers presently employed by the Company, including
                but
                not limited to disputes or conflicts over payment owed to such accountants
                and lawyers, nor have there been any such disagreements during the
                two
                years prior to the Closing Date.

            

    

     

    
      	 	
              (r)

            	
              Investment
                Company.
                The Company is not an “investment company” within the meaning of the
                Investment Company Act of 1940, as
                amended.

            

    

     

    
      	 	
              (s)

            	
              Foreign
                Corrupt Practices.
                Neither the Company, nor to the knowledge of the Company, any agent
                or
                other person acting on behalf of the Company, has (i) directly or
                indirectly, used any funds for unlawful contributions, gifts,
                entertainment, or other unlawful expenses related to foreign or domestic
                political activity, (ii) made any unlawful payment to foreign or
                domestic
                government officials or employees or to any foreign or domestic political
                parties or campaigns from corporate funds, (iii) failed to disclose
                fully
                any contribution made by the Company (or made by any person acting
                on its
                behalf of which the Company is aware) which is in violation of law,
                or
                (iv) violated in any material respect any provision of the Foreign
                Corrupt
                Practices Act of 1977, as amended.

            

    

     

    
      
        
        

      

      
        -
          10
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              (t)

            	
              Reporting
                Company.
                The Company is a publicly-held company subject to reporting obligations
                pursuant to Section 13 of the Securities Exchange Act of 1934, as
                amended
                (the “1934
                Act”)
                and has a class of Common Stock registered pursuant to Section 12(g)
                of
                the 1934 Act. Pursuant to the provisions of the 1934 Act, the Company
                has
                timely filed all reports and other materials required to be filed
                thereunder with the SEC during the preceding twelve
                months.

            

    

     

    
      	 	
              (u)

            	
              Quotation.
                The Company’s Common Stock is quoted on the OTCBB under the symbol PPBV.
                The Company has not received any oral or written notice that its
                Common
                Stock is not eligible nor will become ineligible for continued quotation
                on the OTCBB nor that it does not meet all requirements for the
                continuation of such listing. The Company satisfies all of its
                requirements for the continued quotation of its Common Stock on the
                OTCBB.

            

    

     

    
      	 	
              (v)

            	
              DTC
                Status.
                The Company’s transfer agent is a participant in, and the Common Stock is
                eligible for transfer pursuant to, the Depository Trust Company Automated
                Securities Transfer Program.

            

    

     

    
      	 	
              (w)

            	
              Company
                Predecessor and Subsidiaries.
                All representations made by or relating to the Company of a historical
                or
                prospective nature and all undertakings contained herein shall, if
                applicable, relate, apply, and refer to the Company and the Subsidiaries
                and their respective predecessors.

            

    

     

    
      	 	
              (x)
                

            	
              Solvency.
                Based on the financial condition of the Company as of June 30, 2008
                after
                giving effect to the receipt by the Company of the purchase price
                of the
                Securities, (i) the Company’s fair saleable value of its assets exceeds
                the amount that will be required to be paid on or in respect of the
                Company’s existing debts and other liabilities (including known contingent
                liabilities) as they mature; and (ii) the current cash flow of the
                Company, together with the proceeds the Company would receive, were
                it to
                liquidate all of its assets, after taking into account all anticipated
                uses of the cash, would be sufficient to pay all amounts on or in
                respect
                of its debt when such amounts are required to be paid. To the best
                knowledge of the Company, no event has occurred that would make the
                foregoing representations inaccurate as of the date this Subscription
                Agreement is accepted by the Company. The Company does not intend
                to incur
                debts beyond its ability to pay such debts as they mature (taking
                into
                account the timing and amounts of cash to be payable on or in respect
                of
                its debt).

            

    

     

    
      
        
        

      

      
        -
          11
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              (y)

            	
              Correctness
                of Representations.
                The Company represents that the foregoing representations and warranties
                are true and correct as of the date hereof in all material respects,
                and,
                unless the Company otherwise notifies the undersigned prior to the
                date
                the Securities are delivered to the undersigned, shall be true and
                correct
                in all material respects as such date; provided,
                that, if such representation or warranty is made as of a different
                date in
                which case such representation or warranty shall be true as of such
                date.

            

    

     

    
      	 	
              (z)

            	
              Survival.
                The foregoing representations and warranties shall survive the date
                on
                which the undersigned’s subscription has been accepted by the
                Company.

            

    

     

    7. Covenants
      of the Company.
      The
      Company covenants and agrees with the undersigned as follows:

     

    
      	 	
              (a)

            	
              Stop
                Orders.
                The Company will advise the undersigned, within 24 hours after it
                receives
                notice of issuance by the SEC, any state securities commission or
                any
                other regulatory authority, of any stop order or of any order preventing
                or suspending any offering of any securities of the Company, or of
                the
                suspension of the qualification of the Common Stock of the Company
                for
                offering or sale in any jurisdiction, or the initiation of any proceeding
                for any such purpose.

            

    

     

    
      	 	
              (b)

            	
              Listing/Quotation.
                The Company shall promptly secure the quotation or listing of the
                Shares
                and Warrant Shares upon each national securities exchange, or automated
                quotation system upon which they are or become eligible for quotation
                or
                listing (subject to official notice of issuance) and shall maintain
                same
                so long as the A Warrant is outstanding. The Company will maintain
                the
                quotation or listing of its Common Stock on the OTCBB, American Stock
                Exchange, National Capital Market, Nasdaq Global Market, Nasdaq Global
                Select Market, or New York Stock Exchange (whichever of the foregoing
                is
                at the time the principal trading exchange or market for the Common
                Stock
                (the “Principal
                Market”),
                and will comply in all respects with the Company’s reporting, filing and
                other obligations under the bylaws or rules of the Principal Market,
                as
                applicable. The Company will provide the undersigned copies of all
                notices
                it receives notifying the Company of the threatened and actual delisting
                of the Common Stock from any Principal Market. As of the date of
                on which
                the Company has accepted the undersigned’s subscription, the OTCBB is the
                Principal Market

            

    

     

    
      	 	
              (c)
                

            	
              Market
                Regulations.
                The Company shall notify the SEC, the Principal Market, and applicable
                state authorities, in accordance with their requirements, of the
                transactions contemplated by this Agreement, and shall take all other
                necessary action and proceedings as may be required and permitted
                by
                applicable law, rule and regulation, for the legal and valid issuance
                of
                the Securities to the undersigned and promptly provide copies thereof
                to
                the undersigned.

            

    

     

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Filing
                Requirements.
                From the date of this Subscription Agreement and until three (3)
                years
                thereafter (unless the Shares and the Warrant Shares have been resold
                or
                transferred by the undersigned pursuant to a registration statement,
                if
                any, or pursuant to Rule 144, [the date of occurrence of the second
                such
                event being the “End
                Date”]),
                the Company will (A) cause its Common Stock to be registered under
                Section
                12(b) or 12(g) of the 1934 Act, (B) comply in all respects with its
                reporting and filing obligations under the 1934 Act, and (C) voluntarily
                comply with all reporting requirements that are applicable to an
                issuer
                with a class of shares registered pursuant to Section 12(b) or Section
                12(g) of the 1934 Act, if the Company is not subject to such reporting
                requirements. The Company will not take any action or file any document
                (whether or not permitted by the Securities Act or the 1934 Act or
                the
                rules thereunder) to terminate or suspend its reporting and filing
                obligations under said acts until the End Date. Until the End Date,
                the
                Company will take no action and will not refrain from taking any
                action
                that would cause the listing or quotation of the Common Stock on
                all
                Principal Markets to cease and will comply in all respects with the
                Company’s reporting, filing, and other obligations under the bylaws or
                rules of the Principal Market, as applicable. The Company agrees
                to timely
                file a Form D with respect to the transaction contemplated hereby,
                if
                required under Regulation D, and to provide a copy thereof to the
                undersigned promptly after such
                filing.

            

    

     

    
      	 	
              (e)

            	
              Reservation.
                Prior to the Closing Date, and at all times thereafter, the Company
                shall
                have reserved, on behalf of the undersigned, from its authorized
                but
                unissued Common Stock, a number of share of Common Stock equal to
                the
                amount of Warrant Shares issuable upon exercise of the A
                Warrant.

            

    

     

    
      	 	
              (f)

            	
              DTC
                Program.
                At all times that the A Warrant is outstanding, the Company will
                employ as
                the transfer agent for the Common Stock, Shares and Warrant Shares
                a
                participant in the Depository Trust Company Automated Securities
                Transfer
                Program.

            

    

     

    
      	 	
              (g)

            	
              Taxes.
                From the date of this Agreement and until the End Date, the Company
                will
                promptly pay and discharge, or cause to be paid and discharged, when
                due
                and payable, all lawful taxes, assessments and governmental charges
                or
                levies imposed upon the income, profits, property or business of
                the
                Company; provided,
                however,
                that any such tax, assessment, charge or levy need not be paid if
                the
                validity thereof shall currently be contested in good faith by appropriate
                proceedings and if the Company shall have set aside on its books
                adequate
                reserves with respect thereto, and provided,
                further,
                that the Company will pay all such taxes, assessments, charges, or
                levies
                forthwith upon the commencement of proceedings to foreclose any lien
                which
                may have attached as security
                therefor.

            

    

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (h)

            	
              Insurance.
                From the date of this
                Agreement and until the End Date, the Company will keep its assets
                which
                are of an insurable character insured by financially sound and reputable
                insurers against loss or damage by fire, explosion, and other risks
                customarily insured against
                by companies in the Company’s line of business, in amounts sufficient to
                prevent the Company from becoming a co-insurer and not in any event
                less
                than one hundred percent (100%) of the insurable value of the property
                insured less reasonable deductible amounts; and the Company will
                maintain,
                with financially sound and reputable insurers, insurance against
                other
                hazards and risks and liability to persons and property to the extent
                and
                in the manner customary for companies in similar businesses similarly
                situated and to the extent available on commercially reasonable
                terms.

            

    

     

    
      	 	
              (i)

            	
              Books
                and Records.
                From the date of this Agreement and until the End Date, the Company
                will
                keep true records and books of account in which full, true, and correct
                entries will be made of all dealings or transactions in relation
                to its
                business and affairs in accordance with generally accepted accounting
                principles applied on a consistent
                basis.

            

    

     

    
      	 	
              (j)
                

            	
              Governmental
                Authorities.
                From the date of this Agreement and until the End Date, the Company
                shall
                duly observe and conform in all material respects to all valid
                requirements of governmental authorities relating to the conduct
                of its
                business or to its properties or
                assets.

            

    

     

    
      	 	
              (k)
                

            	
              Intellectual
                Property.
                From the date of this Agreement and until the End Date, the Company
                shall
                maintain in full force and effect its corporate existence, rights,
                and
                franchises and all licenses and other rights to use intellectual
                property
                owned or possessed by it and reasonably deemed to be necessary to
                the
                conduct of its business, unless it is sold for
                value.

            

    

     

    
      	 	
              (l)
                

            	
              Properties.
                From the date of this Agreement and until the End Date, the Company
                will
                keep its properties in good repair, working order and condition,
                reasonable wear and tear excepted, and from time to time make all
                necessary and proper repairs, renewals, replacements, additions,
                and
                improvements thereto; and the Company will at all times comply with
                each
                provision of all leases to which it is a party or under which it
                occupies
                property if the breach of such provision could reasonably be expected
                to
                have a Material Adverse Effect.

            

    

     

    
      	 	
              (m)

            	
              Confidentiality/Public
                Announcement.
                From the date of this Agreement and until the End Date, the Company
                agrees
                that it will not disclose publicly or privately the identity of the
                undersigned unless expressly agreed to in writing by the undersigned
                but
                only to the extent required by law and then only upon five days prior
                notice to the undersigned.

            

    

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (n)

            	
              Non-Public
                Information.
                The Company covenants and agrees that neither it nor any other person
                acting on its behalf will at any time provide the undersigned or
                its agent
                or counsel with any information that the Company believes constitutes
                material non-public information. The Company understands and confirms
                that
                the undersigned shall be relying on the foregoing representations
                in
                effecting transactions in securities of the Company. In the event
                that the
                Company believes that a notice or communication to the undersigned
                contains material, nonpublic information, relating to the Company
                or
                Subsidiaries, the Company shall so indicate to the undersigned
                contemporaneously with delivery of such notice or information. In
                the
                absence of any such indication, the undersigned shall be allowed
                to
                presume that all matters relating to such notice and information
                do not
                constitute material, nonpublic information relating to the Company
                or its
                Subsidiaries.

            

    

     

    
      	 	
              (o)

            	
              Notices.
                For so long as the undersigned holds any of the Note, the Shares,
                the A
                Warrant, or the Warrant Shares, the Company will maintain a United
                States
                address and United States fax number for notices purposes under the
                Transaction Documents.

            

    

     

    
      	 	
              (p)

            	
              No
                Loans Senior.
                Until the Note has been repaid in full, the Company will not permit
                any
                person to become a creditor, whose obligations are senior to the
                obligations of the Company as set forth in the Note; provided,
                however,
                that the Company may incur obligations senior to those of the Note
                in
                respect of secured trade payables and those in favor of licensed
                commercial lenders, in each case incurred in the ordinary course
                of the
                Company’s business; provided,
                further,
                that the Company’s obligation to its Chief Financial Officer in the
                principal amount of $93,000 shall be deemed to be senior to the Company’s
                obligations under the note, which $93,000 obligation shall be paid
                in full
                concurrently with the acceptance of this Agreement by the Company.
                Except
                as described in the previous sentence, no creditor or person has
                rights to
                payment from the Company or to the Company’s assets upon distribution
                which rights are senior to the rights of the undersigned upon acceptance
                of this Subscription Agreement by the Company except for amounts
                that, as
                of the date such obligation was incurred or the date on which such
                obligation will be incurred, are secured by assets of equal or greater
                value in commercial arrangements incurred in the normal course of
                business.

            

    

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (q)

            	
              The
                Company agrees to indemnify, hold harmless, reimburse and defend
                the
                undersigned, the undersigned’s officers, directors, agents, Affiliates,
                members, managers, control persons, and principal shareholders, against
                any claim, cost, expense, liability, obligation, loss or damage (including
                reasonable legal fees) of any nature, incurred by or imposed upon
                the
                undersigned or any such person which results, arises out of or is
                based
                upon (i) any
                material misrepresentation by Company or breach of any material
                representation or warranty by Company in any Transaction Document,
                or
                other agreement delivered pursuant hereto; or (ii) after any applicable
                notice and/or cure periods, any breach or default in performance
                by the
                Company of any material covenant or undertaking to be performed by
                the
                Company under any Transaction Document, or any other agreement entered
                into by the Company and the undersigned relating
                hereto.

            

    

     

    
      	 	
              (r)

            	
              In
                the event commencing one hundred and eighty-one (181) days after
                the date
                this Subscription Agreement is accepted by the Company and ending
                one year
                after such acceptance, the undersigned is not permitted to resell
                any of
                the Shares or Warrant Shares without any restrictive legend or if
                such
                sales are permitted but subject to volume limitations or further
                restrictions on resale as a result of the unavailability to Subscriber
                of
                Rule 144(b)(1) under the 1933 Act (as in effect and the date on which
                such
                subscription is accepted by the Company pursuant to section 5, above)
                (a
                “144
                Default”),
                for any reason except for the undersigned’s status as an Affiliate or
                “control person” of the Company, then the Company shall pay the
                undersigned as liquidated damages (“Liquidated
                Damages”)
                and not as a penalty an amount equal to one and one-half percent
                (1.5%)
                for each thirty (30) days (or such lesser pro-rata amount for any
                period
                less than thirty (30) days) of the purchase price of the Shares and
                Warrant Shares owned by the Subscriber during the pendency of the
                144
                Default. For purposes of this Section 7(r), the purchase price of
                the
                Shares will be deemed to be Two Dollars ($2.00) per Share. The purchase
                price of actually held Warrant Shares will be the aggregate exercise
                price
                thereof. Liquidated Damages must be paid in cash within ten (10)
                days
                after each thirty (30) day period or shorter period for which Liquidated
                Damages are payable.

            

    

     

    8. State
      Securities Laws.
      The
      Company represents that based on the accuracy of the representations and
      warranties of the undersigned contained herein, the offering and sale of the
      Securities is exempt from qualification under the securities laws of the State
      of California.

     

    9. Regulation
      D.
      Notwithstanding anything herein to the contrary, every person or entity who,
      in
      addition to or in lieu of the undersigned, is deemed to be a “purchaser”
      pursuant to Regulation D promulgated under the Securities Act or any state
      law
      does hereby make and join in making all of the covenants, representations,
      and
      warranties made by the undersigned.

     

    
      
        
        

      

      
        -
          16
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    10. Acceptance.
      Execution and delivery of this Subscription Agreement shall constitute an
      irrevocable offer to purchase the Securities indicated, which offer may be
      accepted or rejected in whole but not in part by the Company in its sole and
      absolute discretion for any cause or for no cause which if rejected must be
      so
      rejected within twenty-four hours after delivery to the Company. Acceptance
      of
      this offer by the Company shall be indicated by its execution
      hereof.

     

    11. Miscellaneous.
      The
      following provisions relate and apply to each of the Transaction Documents
      and
      are deemed incorporated in each such other agreement regardless of the actual
      agreement referred to.

     

    
      	 	
              (a)
                

            	
              Notices.
                All notices, demands, requests, consents, approvals, and other
                communications required or permitted hereunder shall be in writing
                and,
                unless otherwise specified herein, shall be (i) personally served,
                (ii)
                deposited in the mail, registered or certified, return receipt requested,
                postage prepaid, (iii) delivered by reputable air courier service
                with
                charges prepaid, or (iv) transmitted by hand delivery, telegram,
                or
                facsimile, addressed as set forth below or to such other address
                as such
                party shall have specified most recently by written notice. Any notice
                or
                other communication required or permitted to be given hereunder shall
                be
                deemed effective (a) upon hand delivery or delivery by facsimile,
                with
                accurate confirmation generated by the transmitting facsimile machine,
                at
                the address or number designated below (if delivered on a business
                day
                during normal business hours where such notice is to be received),
                or the
                first business day following such delivery (if delivered other than
                on a
                business day during normal business hours where such notice is to
                be
                received) or (b) on the second business day following the date of
                mailing
                by express courier service, fully prepaid, addressed to such address,
                or
                upon actual receipt of such mailing, whichever shall first occur.
                The
                addresses for such communications shall be: (i) if to the Company,
                to:
                Purple Beverage Company, Inc, 450 E. Las Olas Blvd., #830, Ft Lauderdale,
                Florida 33301, Attn: Theodore Farnsworth, President, facsimile: (954)
                462-8758, with an additional copy by facsimile only (which shall
                not
                constitute notice) to: Bryan Cave LLP, 1900 Main Street, Suite 700,
                Irvine, CA 92614, Attn: Randolf W. Katz, Esq., facsimile: (949) 223-7100,
                (ii) if to the undersigned, to: the address and facsimile number
                indicated
                on the signature page hereto, with an additional copy by facsimile
                only
                (which shall not constitute notice)to: Grushko & Mittman, P.C., 551
                Fifth Avenue, Suite 1601, New York, New York 10176, facsimile: (212)
                697-3575.

            

    

     

    
      	 	
              (b)
                

            	
              Entire
                Agreement Assignment.
                This Subscription Agreement and other documents delivered in connection
                herewith represent the entire agreement between the parties hereto
                with
                respect to the subject matter hereof and may be amended only by a
                writing
                executed by the Company and the undersigned. Neither the Company
                nor the
                undersigned has relied on any representations not contained or referred
                to
                in this Subscription Agreement and the documents delivered herewith.
                No
                right or obligation of the Company or undersigned shall be assigned
                without prior notice to and the written consent of the other
                party.

            

    

     

    
      
        
        

      

      
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          17
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              Counterparts/Execution.
                This Subscription Agreement may be executed in any number of counterparts
                and by the different signatories hereto on separate counterparts,
                each of
                which, when so executed, shall be deemed an original, but all such
                counterparts shall constitute but one and the same instrument. This
                Subscription Agreement may be executed by facsimile signature and
                delivered by facsimile
                transmission.

            

    

     

    
      	 	
              (d)

            	
              Law
                Governing Subscription Agreement.
                This Subscription Agreement shall be governed by and construed in
                accordance with the laws of the State of New York without regard
                to
                principles of conflicts of laws. Any action brought by either party
                against the other concerning the transactions contemplated by this
                Subscription Agreement shall be brought only in the state courts
                of
                California or in the federal courts located in the state of California,
                Los Angeles county. The parties to this Subscription Agreement hereby
                irrevocably waive any objection to jurisdiction and venue of any
                action
                instituted hereunder and shall not assert any defense based on lack
                of
                jurisdiction or venue or based upon forum non conveniens. The parties
                executing this Subscription Agreement and other agreements referred
                to
                herein or delivered in connection herewith on behalf of the Company
                agree
                to submit to the in personam jurisdiction of such courts and hereby
                irrevocably waive trial by jury. The prevailing party shall be entitled
                to
                recover from the other party its reasonable attorney’s fees and costs. In
                the event that any provision of this Subscription Agreement or any
                other
                agreement delivered in connection herewith is invalid or unenforceable
                under any applicable statute or rule of law, then such provision
                shall be
                deemed inoperative to the extent that it may conflict therewith and
                shall
                be deemed modified to conform with such statute or rule of law. Any
                such
                provision which may prove invalid or unenforceable under any law
                shall not
                affect the validity or enforceability of any other provision of any
                agreement.

            

    

     

    
      	 	
              (e)
                

            	
              Specific
                Enforcement, Consent to Jurisdiction.
                The Company and undersigned acknowledge and agree that irreparable
                damage
                would occur in the event that any of the provisions of this Subscription
                Agreement were not performed in accordance with their specific terms
                or
                were otherwise breached. It is accordingly agreed that the parties
                shall
                be entitled to seek an injunction or injunctions to prevent or cure
                breaches of the provisions of this Subscription Agreement and to
                enforce
                specifically the terms and provisions hereof, this being in addition
                to
                any other remedy to which any of them may be entitled by law or equity.
                Subject to Section 11(d) hereof, the Company hereby irrevocably waives,
                and agrees not to assert in any such suit, action or proceeding,
                any claim
                that it is not personally subject to the jurisdiction in California
                of
                such court, that the suit, action or proceeding is brought in an
                inconvenient forum or that the venue of the suit, action or proceeding
                is
                improper. Nothing in this Section shall affect or limit any right
                to serve
                process in any other manner permitted by
                law.

            

    

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (f)
                

            	
              Damages.
                In the event the undersigned is entitled to receive any liquidated
                damages
                pursuant to the Transaction Documents, the undersigned may elect
                to
                receive the greater of actual damages or such liquidated
                damages.

            

    

     

    
      	 	
              (g)
                

            	
              Maximum
                Payments.
                Nothing contained herein or in any document referred to herein or
                delivered in connection herewith shall be deemed to establish or
                require
                the payment of a rate of interest or other charges in excess of the
                maximum permitted by applicable law. In the event that the rate of
                interest or dividends required to be paid or other charges hereunder
                exceed the maximum permitted by such law, any payments in excess
                of such
                maximum shall be credited against amounts owed by the Company to
                the
                undersigned and thus refunded to the
                Company.

            

    

     

    
      	 	
              (h)

            	
              Calendar
                Days.
                All references to “days” in the Transaction Documents shall mean calendar
                days unless otherwise stated. The terms “business days” and “trading days”
                shall mean days that the New York Stock Exchange is open for trading
                for
                three or more hours. Time periods shall be determined as if the relevant
                action, calculation or time period were occurring in New York City.
                Any
                deadline that falls on a non-business day in any of the Transaction
                Documents shall be automatically extended to the next business day
                and
                interest, if any, shall be calculated and payable through such extended
                period.

            

    

     

    
      	 	
              (i)
                

            	
              Captions:
                Certain Definitions.
                The captions of the various sections and paragraphs of this Subscription
                Agreement have been inserted only for the purposes of convenience;
                such
                captions are not a part of this Subscription Agreement and shall
                not be
                deemed in any manner to modify, explain, enlarge or restrict any
                of the
                provisions of this Subscription Agreement. As used in this Subscription
                Agreement the term “person” shall mean and include an individual, a
                partnership, a joint venture, a corporation, a limited liability
                company,
                a trust, an unincorporated organization and a government or any department
                or agency thereof.

            

    

     

    
      	 	
              (j)
                

            	
              Severability.
                In the event that any term or provision of this Subscription Agreement
                shall be finally determined to be superseded, invalid, illegal or
                otherwise unenforceable pursuant to applicable law by an authority
                having
                jurisdiction and venue, that determination shall not impair or otherwise
                affect the validity, legality or enforceability: (i) by or before
                that
                authority of the remaining terms and provisions of this Subscription
                Agreement, which shall be enforced as if the unenforceable term or
                provision were deleted, or (ii) by or before any other authority
                of any of
                the terms and provisions of this Subscription
                Agreement

            

    

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    
      	 	
              (k)

            	
              Successor
                Laws.
                References in the Transaction Documents to laws, rules, regulations
                and
                forms shall also include successors to and functionally equivalent
                replacements of such laws, rules, regulations and
                forms.

            

    

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on
      the
      date set forth on the signature page.

     

    The
      undersigned desires to take title in the Securities as an individual. The exact
      spelling of name(s) under which title to the Securities shall be taken, and
      the
      exact location for delivery of the Securities, is (please print):

     

    
      	
              Names(s)

            	
              JAY-2
                INVESTMENTS, LLC

            
	 	 
	
              (address)

            	
              137
                North Larchmont Boulevard, #484

            
	 	
              Los
                Angeles, California 90004

            
	 	
              Fax
                Number:

            

    

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

    SUBSCRIPTION
      AGREEMENT

    

    SIGNATURE
      PAGE

    

    
      	
              Purchase
                Price subscribed:

            	 	
              $

            	
              1,000,000

            	 	 	
              Face Amount of Note:

            	 	
              $

            	
              1,000,000

            	 
	
               

            	 	 	 	 	 	
              Number of Shares subscribed: 

            	 	 	
              200,000

            	 
	
               

            	 	 	 	 	 	
              Number
                of A warrants: 

            	 	 	
              200,000

            	 

    

     

    
      	
               JAY-2
                INVESTMENTS, LLC

            
	
               Name
                of Purchaser(s) (Please print or
                type)

            

    

     

    
      	 
	
               Signature

            
	 
	
               Signature

            

    

     

    
      
        	
                Social Security/Tax Identification Number:

              	 

      

      

      
        	
                Mailing Address:

              	
                137
                  North Larchmont Boulevard, #484

              
	 	
                Los
                  Angeles, CA 90004

              
	 	
                Fax
                  Number:

              

      

    

     

    Executed
      at ______________________________, this 16th
      day of
      July, 2008.

    (location)

     

    SUBSCRIPTION
      ACCEPTED:

    

    PURPLE
      BEVERAGE COMPANY, INC.

     

    
      	
              By:

            	
              /s/
                Theodore Farnsworth

            
	 	
              Theodore
                Farnsworth, Chief Executive Officer

            

    

    

    DATE:
      July 16, 2008

    
      
        
        

      

      
        -
          21
          -PROMISSORY
      NOTE

    

      
        	
                $1,000,000.00
                  

              	
                Ft.
                  Lauderdale, Florida

              
	 	
                July
                  16, 2008

              

      

    

    

    Purple
      Beverage Company, Inc., a Nevada corporation (the “Maker”),
      hereby promises to pay to the order of Jay-2 Investments, LLC, a California
      limited liability company (the “Holder”),
      in
      lawful money of the United States of America, the sum of One Million and
      00/l00ths Dollars ($1,000,000.00), together with accrued and unpaid interest
      thereon, at the rate set forth below, on or before October —, 2008 (the
“Maturity
      Date”);
      provided, however, that all such sums shall become due and payable upon the
      earlier to occur occurrence of (i) a “Financing
      Transaction”
(as
      defined below) or (ii) an “Event
      of Default”,
      as
      defined below-, provided,
      further,
      that
      except upon the occurrence of a Financing Transaction, an Event of Default,
      or
      an event that, with the passage of time or the giving of notice, could become
      an
      Event of Default, the Maturity Date may be extended by the Company in writing
      at
      any time prior to the Maturity Date in its sole and absolute discretion for
      up
      to 30 days, which extension shall not constitute an Event of
      Default.

     

    The
      unpaid principal amount of this Promissory Note shall bear interest at a rate
      per annum equal to eleven percent (11%) calculated on the basis of a 365-day
      year and the actual number of days elapsed. If any interest is determined to
      be
      in excess of the then legal maximum rate, then that portion of each interest
      payment representing an amount in excess of the then legal maximum rate shall
      be
      deemed a payment of principal and applied against the principal of the
      obligations evidenced by this Promissory Note. This maker shall not have any
      grace period to pay any monetary amounts due under this Promissory Note. After
      the Maturity Date, accelerated or otherwise, and during the pendency of an
      Event
      of Default, a default interest rate of eighteen percent (18%) per annum shall
      apply to the amounts owed hereunder.

     

    This
      Promissory Note may be prepaid in whole or in part at any time, or from time
      to
      time, without premium or penalty and without prior notice to or consent by
      the
      Holder. Amounts prepaid may not be re-borrowed.

     

    Within
      two business days of the occurrence of a Financing Transaction, the Maker shall
      immediately tender to the Holder all sums of principal, interest, and other
      fees
      then remaining unpaid hereunder. For purposes herein, a “Financing
      Transaction”
shall
      be deemed to have occurred upon the Maker receiving in cash, in one or a series
      of debt or equity transactions, an amount of funds not less than $2,000,000
      in
      gross proceeds.

     

    This
      Promissory Note was issued by the Maker pursuant to a Subscription Agreement
      (“Subscription
      Agreement”)
      dated
      July 16, 2008. The terms of the Subscription Agreement, including but not
      limited to the obligations of the Maker thereunder are incorporated herein
      by
      this reference. Upper case terms not otherwise defined herein shall have the
      meanings ascribed to them in this Subscription Agreement.

     

    Upon
      the
      occurrence of an Event of Default, the Holder may make all sums of principal,
      interest, and other fees then remaining unpaid hereunder immediately due and
      payable. The occurrence with respect to the Maker of any of the following events
      is an “Event
      of Default”:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
            	•	
              The
                Maker materially breaches any material covenant or any other term
                or
                condition of this Promissory Note or Subscription Agreement in any
                material respect;

            

    

     

    
      	 	
              •
                

            	
              The
                Securities and Exchange Commission issues a “stop trade” order in respect
                of the Maker’s common stock, which order remains effective for a period of
                not less than ten consecutive trading
                days;

            

    

     

    
      	 	
              •
                

            	
              The
                Maker’s common stock no longer constitutes an “OTCBB Eligible Security”
                (as that term is defined in Marketplace Rule 6530 of FINRA); provided,
                however,
                that such lack of eligibility shall not constitute an Event of Default
                if
                the Common Stock is listed or quoted on any other Principal
                Market;

            

    

     

    
      	 	
              •
                

            	
              The
                Maker shall make an assignment for the benefit of creditors, or apply
                for
                or consent to the appointment of a receiver or trustee for it or
                for a
                substantial part of its property or business or such a receiver or
                trustee
                shall otherwise be appointed;

            

    

     

    
      	 	
              •
                

            	
              The
                Maker shall materially default under any bond, debenture, note or
                other
                evidence of indebtedness for money borrowed, under any guarantee
                or under
                any mortgage, or indenture pursuant to which there shall be issued
                or by
                which there shall be secured or evidenced any indebtedness for money
                borrowed by the Maker or any of its subsidiaries, whether such
                indebtedness now exists or shall hereafter be created, which default
                shall
                have resulted in indebtedness of at least $250,000 becoming due and
                payable prior to the date on which it would otherwise become due
                and
                payable and shall not have been cured by the Maker or waived by the
                Lender,

            

    

     

    
      	 	
              •
                

            	
              Any
                money judgment, writ, or similar final process shall be entered or
                filed
                against the Maker or any of its property or other assets for more
                than
                $250,000 and shall remain unvacated, unbonded, or unstayed for a
                period of
                thirty (30) days;

            

    

     

    
      	 	
              •
                

            	
              Bankruptcy,
                insolvency, reorganization, or liquidation proceedings or other
                proceedings or relief under any bankruptcy law or any law for the
                relief
                of debtors shall be instituted by or against the
                Maker.

            

    

     

    
      	 	
              •
                

            	
              Any
                material representation or warranty of the Maker made herein, in
                any
                Transaction Document, or in any agreement, statement or certificate
                given
                in writing pursuant hereto or in connection herewith or therewith
                shall be
                false or misleading in any material respect as of the date made or
                the
                date of this Promissory Note.

            

    

     

    
      	 	
              •
                

            	
              A
                default by Maker under any one or more obligations in an aggregate
                monetary amount in excess of $350,000 after the due date thereof
                and any
                applicable cure period.

            

    

     

    The
      Maker
      hereby waives presentment, demand, notice of dishonor, protest, notice of
      protest, and all other demands, protests, and notices in connection with the
      execution, delivery, performance, collection, and enforcement of this Promissory
      Note. If default is made in the payment of this Promissory Note, the Maker
      shall
      pay to the Holder reasonable costs of collection, including reasonable
      attorney’s fees.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) if to the Maker, to: Purple Beverage Company,
      Inc.,
      450 E. Las Olas Blvd., #830, Ft. Lauderdale, Florida 33301, Attn: Theodore
      Farnsworth, President, facsimile: (954) 462-8758, with an additional copy by
      facsimile only (which shall not constitute notice) to: Bryan Cave LLP, 1900
      Main
      Street, Suite 700, Irvine, California 92614, Attn: Randolf W. Katz, Esq.,
      facsimile: (949) 223-7100, (ii) if to the Holder, to: Jay-2 Investments, LLC,
      137 North Larchmont Boulevard, #484, Los Angeles, California 90004, facsimile:
      __________, with an additional copy by facsimile only (which shall not
      constitute notice) to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite
      1601, New York, New York 10176, facsimile: (212) 697-3575.

     

    No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    The
      term
“Note” and “Promissory Note” and all reference thereto, as used throughout this
      instrument, shall mean this instrument as originally executed, or if later
      amended or supplemented, then as so amended or supplemented. This Promissory
      Note may not be amended without the consent of the Holder.

     

    This
      Promissory Note shall be binding upon the Maker and its successors and assigns,
      and shall inure to the benefit of the Holder and its successors and assigns.
      The
      Maker may not assign its obligations under this Promissory Note.

     

    This
      Promissory Note shall be governed by and construed in accordance with the laws
      of the State of New York without regard to conflicts of laws principles that
      would result in the application of the substantive laws of another jurisdiction.
      Any action brought by either party against the other concerning the transactions
      contemplated by this Agreement must be brought only in the civil or state courts
      of California or in the federal courts located in the State of California,
      County of Los Angeles. Both parties and the individual signing this Agreement
      on
      behalf of the Maker agree to submit to the jurisdiction of such courts. The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney’s fees and costs. In the event that any provision of this
      Promissory Note is invalid or unenforceable under any applicable Statute
      or rule of law, then such provision shall be deemed inoperative to the extent
      that it may conflict therewith and shall be deemed modified to conform with
      such
      statute or rule of law. Any such provision which may prove invalid or
      unenforceable under any law shall not affect the validity or unenforceability
      of
      any other provision of this Promissory Note. Nothing contained herein shall
      be
      deemed or operate to preclude the Holder from bringing suit or taking other
      legal action against the Maker in any other jurisdiction to collect on the
      Maker’s obligations to Holder, to realize on any collateral or any other
      security for such obligations, or to enforce a judgment or other decision in
      favor of the Holder. “This
      Promissory Note shall be deemed an unconditional obligation of Maker for the
      payment of money.”

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    Whenever
      any payment or any action to be made shall be due on a Saturday, Sunday or
      a
      public holiday under the laws of the State of California, such payment may
      be
      due or action shall be required on the next succeeding business day and, for
      such payment, such next succeeding day shall be included in the calculation
      of
      the amount of accrued interest payable on such date.

     

    [Signature
      on following page.]

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    

    
      	
              PURPLE
                BEVERAGE COMPANY, INC.

            
	
              a
                Nevada

            
	 	 
	
              By:

            	
              /s/
                Theodore Farnsworth

            
	 	
              Theodore
                Farnsworth

            
	 	
              Chief
                Executive Officer

            

    

     

    
      
        
        

      

      
        -
          5
          -

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