Document:

360 Global Wine Company Exhibit 10.10

STOCK PLEDGE AGREEMENT

This Stock Pledge Agreement (this “Agreement”), dated as of July 7
, 2005, among Laurus Master Fund, Ltd. (the “Pledgee”), 360 Global Wine Company, a Nevada corporation (the “Company”), and each of the other undersigned parties (other than the Pledgee) (the Company and each such other undersigned party, a “Pledgor” and collectively, the “Pledgors”).

BACKGROUND

The Company has entered into a Security and Purchase Agreement, dated as of July 7
, 2005 (as amended, modified, restated or supplemented from time to time, the “Security Agreement”), pursuant to which the Pledgee provides or will provide certain financial accommodations to the Company and certain subsidiaries of the Company.

In order to induce the Pledgee to provide or continue to provide the financial accommodations described in the Security Agreement, each Pledgor has agreed to pledge and grant a security interest in the collateral described herein to the Pledgee on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.

Defined Terms.  All capitalized terms used herein which are not defined shall have the meanings given to them in the Security Agreement.

2.

Pledge and Grant of Security Interest.  To secure the full and punctual payment and performance of (the following clauses (a) and (b), collectively, the “Obligations”) (a) the obligations under the Security Agreement and the Ancillary Agreements referred to in the Security Agreement (the Security Agreement and the Ancillary Agreements, as each may be amended, restated, modified and/or supplemented from time to time, collectively, the “Documents”) and (b) all other obligations and liabilities of each Pledgor to the Pledgee whether now existing or hereafter arising, direct or indirect, liquidated or unliquidated, absolute or contingent, due or not due and whether under, pursuant to or evidenced by a note, agreement, guaranty, instrument or otherwise (in each case, irrespective of the genuineness, validity, regularity or enforceability of such Obligations, or of any instrument evidencing any of the Obligations or of any collateral therefor or of the existence or extent of such collateral, and irrespective of the allowability, allowance or disallowance of any or all of such in any case commenced by or against any Pledgor under Title 11, United States Code, including, without limitation, obligations of each Pledgor for post-petition interest, fees, costs and charges that would have accrued or been added to the Obligations but for the commencement of such case), each Pledgor hereby pledges, assigns, hypothecates, transfers and grants a security interest to Pledgee in all of the following (the “Collateral”):

(a)

the shares of stock and other equity interests set forth on Schedule A annexed hereto and expressly made a part hereof (together with any additional shares of stock or 

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other equity interests acquired by any Pledgor, the “Pledged Stock”), the certificates representing the Pledged Stock and all dividends, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

(b)

all additional shares of stock and other equity interests of any issuer (each, an “Issuer”) of the Pledged Stock from time to time acquired by any Pledgor in any manner, including, without limitation, stock dividends or a distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, stock split, spin-off or split-off (which shares and other equity interests shall be deemed to be part of the Collateral), and the certificates representing such additional shares and other equity interests, and all dividends, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares and/or other equity interests; and

(c)

all options and rights, whether as an addition to, in substitution of or in exchange for any shares and/or units of any Pledged Stock and all dividends, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such options and rights.

3.

Delivery of Collateral.  All certificates representing or evidencing the Pledged Stock shall be delivered to and held by or on behalf of Pledgee pursuant hereto and shall be accompanied by duly executed instruments of transfer or assignments in blank, all in form and substance satisfactory to Pledgee.  Each Pledgor hereby authorizes the Issuer upon demand by the Pledgee to deliver any certificates, instruments or other distributions issued in connection with the Collateral directly to the Pledgee, in each case to be held by the Pledgee, subject to the terms hereof.  Upon the occurrence and during the continuance of an Event of Default (as defined below), the Pledgee shall have the right, during such time in its discretion and without notice to the Pledgor, to transfer to or to register in the name of the Pledgee or any of its nominees any or all of the Pledged Stock.  In addition, the Pledgee shall have the right at such time to exchange certificates or instruments representing or evidencing Pledged Stock for certificates or instruments of smaller or larger denominations.  To the extent the Pledged Stock of an Issuer is in uncertificated form, the Pledgor shall, and shall cause the respective Issuer to, enter into an equity control agreement in form and substance reasonably satisfactory to the Pledgee.

4.

Representations and Warranties of each Pledgor.  Each Pledgor jointly and severally represents and warrants to the Pledgee (which representations and warranties shall be deemed to continue to be made until all of the Obligations have been paid in full and each Document and each agreement and instrument entered into in connection therewith has been irrevocably terminated) that:

(a)

the execution, delivery and performance by each Pledgor of this Agreement and the pledge of the Collateral hereunder do not and will not result in any violation of any agreement, indenture, instrument, license, judgment, decree, order, law, statute, ordinance or other governmental rule or regulation applicable to any Pledgor;

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(b)

this Agreement constitutes the legal, valid, and binding obligation of each Pledgor enforceable against each Pledgor in accordance with its terms;

(c)

(i) all Pledged Stock owned by each Pledgor is set forth on Schedule A hereto and (ii) each Pledgor is the direct and beneficial owner of each share and unit, as the case may be, of the Pledged Stock;

(d)

all of the shares and units, as the case may be, of the Pledged Stock have been duly authorized, validly issued and are fully paid and nonassessable;

(e)

no consent or approval of any person, corporation, governmental body, regulatory authority or other entity, is or will be necessary for (i) the execution, delivery and performance of this Agreement, (ii) the exercise by the Pledgee of any rights with respect to the Collateral or (iii) the pledge and assignment of, and the grant of a security interest in, the Collateral hereunder;

(f)

there are no pending or, to the best of Pledgor’s knowledge, threatened actions or proceedings before any court, judicial body, administrative agency or arbitrator which may materially adversely affect the Collateral;

(g)

each Pledgor has the requisite power and authority to enter into this Agreement and to pledge and assign the Collateral to the Pledgee in accordance with the terms of this Agreement;

(h)

each Pledgor owns each item of the Collateral and, except for the pledge and security interest granted to Pledgee hereunder, the Collateral shall be, immediately following the closing of the transactions contemplated by the Documents, free and clear of any other security interest, mortgage, pledge, claim, lien, charge, hypothecation, assignment, offset or encumbrance whatsoever (collectively, “Liens”);

(i)

there are no restrictions on transfer of the Pledged Stock contained in the certificate of incorporation or by-laws (or equivalent organizational documents) of the Issuer or otherwise which have not otherwise been enforceably and legally waived by the necessary parties;

(j)

none of the Pledged Stock has been issued or transferred in violation of the securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject;

(k)

the pledge and assignment of the Collateral and the grant of a security interest under this Agreement vest in the Pledgee all rights of each Pledgor in the Collateral as contemplated by this Agreement; and

(l)

the Pledged Stock constitutes one hundred percent (100%) of the issued and outstanding shares of capital stock or other equity interests, as the case may be, of each Issuer to the extent a lesser percentage is not otherwise set forth on Schedule A hereto.

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5.

Covenants.  Each Pledgor jointly and severally covenants that, until the Obligations shall be indefeasibly satisfied in full and each Document and each agreement and instrument entered into in connection therewith is irrevocably terminated:

(a)

No Pledgor will sell, assign, transfer, convey, or otherwise dispose of its rights in or to the Collateral or any interest therein; nor will any Pledgor create, incur or permit to exist any Lien whatsoever with respect to any of the Collateral or the proceeds thereof other than that created hereby.  

(b)

Each Pledgor will, at its expense, defend Pledgee’s right, title and security interest in and to the Collateral against the claims of any other party.

(c)

Each Pledgor shall at any time, and from time to time, upon the written request of Pledgee, execute and deliver such further documents and do such further acts and things as Pledgee may reasonably request in order to effectuate the purposes of this Agreement including, but without limitation, delivering to Pledgee, upon the occurrence of an Event of Default, irrevocable proxies in respect of the Collateral in form satisfactory to Pledgee.  Until receipt thereof, upon an Event of Default that has occurred and is continuing beyond any applicable grace period, this Agreement shall constitute Pledgor’s proxy to Pledgee or its nominee to vote all shares or other equity interests, as the case may be, of Collateral then registered in each Pledgor’s name.

(d)

No Pledgor will consent to or approve the issuance of (i) any additional shares of any class of capital stock or other equity interests of the Issuer; or (ii) any securities convertible either voluntarily by the holder thereof or automatically upon the occurrence or nonoccurrence of any event or condition into, or any securities exchangeable for, any such shares or units, as the case may be, unless, in either case, such shares or units, as the case may be, are pledged as Collateral pursuant to this Agreement.

6.

Voting Rights and Dividends.  In addition to the Pledgee’s rights and remedies set forth in Section 8 hereof, in case an Event of Default shall have occurred and be continuing, beyond any applicable cure period, the Pledgee shall (i) be entitled to vote the Collateral, (ii) be entitled to give consents, waivers and ratifications in respect of the Collateral (each Pledgor hereby irrevocably constituting and appointing the Pledgee, with full power of substitution, the proxy and attorney-in-fact of each Pledgor for such purposes) and (iii) be entitled to collect and receive for its own use cash dividends paid on the Collateral.  No Pledgor shall be permitted to exercise or refrain from exercising any voting rights or other powers if, in the reasonable judgment of the Pledgee, such action would have a material adverse effect on the value of the Collateral or any part thereof; and, provided, further, that each Pledgor shall give at least five (5) days’ written notice of the manner in which such Pledgor intends to exercise, or the reasons for refraining from exercising, any voting rights or other powers other than with respect to any election of directors and voting with respect to any incidental matters.  Following the occurrence of an Event of Default, all dividends and all other distributions in respect of any of the Collateral, shall be delivered to the Pledgee to hold as Collateral and shall, if received by any Pledgor, be received in trust for the benefit of the Pledgee, be segregated from the other property or funds of any other Pledgor, and be forthwith delivered to the Pledgee as Collateral in the same form as so received (with any necessary endorsement).

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7.

Event of Default.  An “Event of Default” under this Agreement shall occur upon the happening of any of the following events:

(a)

An “Event of Default” under any Document or any agreement or note related to any Document shall have occurred and be continuing beyond any applicable cure period;

(b)

Any Pledgor shall default in the performance of any of its obligations under any Document, including, without limitation, this Agreement, and such default shall not be cured during the cure period applicable thereto;

(c)

Any representation or warranty of any Pledgor made herein, in any Document or in any agreement, statement or certificate given in writing pursuant hereto or thereto or in connection herewith or therewith shall be false or misleading in any material respect; 

(d)

Any portion of the Collateral is subjected to a levy of execution, attachment, distraint or other judicial process or any portion of the Collateral is the subject of a claim (other than by the Pledgee) of a Lien or other right or interest in or to the Collateral and such levy or claim shall not be cured, disputed or stayed within a period of fifteen (15) business days after the occurrence thereof; or

(e)

Any Pledgor shall (i) apply for, consent to, or suffer to exist the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or other fiduciary of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of creditors, (iii) commence a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition seeking to take advantage of any other law providing for the relief of debtors, (vi) acquiesce to, or fail to have dismissed, within thirty (30) days, any petition filed against it in any involuntary case under such bankruptcy laws, or (vii) take any action for the purpose of effecting any of the foregoing.

8.

Remedies.  In case an Event of Default shall have occurred and is continuing, the Pledgee may:  

(a)

Transfer any or all of the Collateral into its name, or into the name of its nominee or nominees;

(b)

Exercise all corporate rights with respect to the Collateral including, without limitation, all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any shares or units, as the case may be, of the Collateral as if it were the absolute owner thereof, including, but without limitation, the right to exchange, at its discretion, any or all of the Collateral upon the merger, consolidation, reorganization, recapitalization or other readjustment of the Issuer thereof, or upon the exercise by the Issuer of any right, privilege or option pertaining to any of the Collateral, and, in connection therewith, to deposit and deliver any and all of the Collateral with any committee, depository, transfer agent, registrar or other 

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designated agent upon such terms and conditions as it may determine, all without liability except to account for property actually received by it; and

(c)

Subject to any requirement of applicable law, sell, assign and deliver the whole or, from time to time, any part of the Collateral at the time held by the Pledgee, at any private sale or at public auction, with or without demand, advertisement or notice of the time or place of sale or adjournment thereof or otherwise (all of which are hereby waived, except such notice as is required by applicable law and cannot be waived), for cash or credit or for other property for immediate or future delivery, and for such price or prices and on such terms as the Pledgee in its sole discretion may determine, or as may be required by applicable law.

Each Pledgor hereby waives and releases any and all right or equity of redemption, whether before or after sale hereunder.  At any such sale, unless prohibited by applicable law, the Pledgee may bid for and purchase the whole or any part of the Collateral so sold free from any such right or equity of redemption.  All moneys received by the Pledgee hereunder, whether upon sale of the Collateral or any part thereof or otherwise, shall be held by the Pledgee and applied by it as provided in Section 10 hereof.  No failure or delay on the part of the Pledgee in exercising any rights hereunder shall operate as a waiver of any such rights nor shall any single or partial exercise of any such rights preclude any other or future exercise thereof or the exercise of any other rights hereunder.  The Pledgee shall have no duty as to the collection or protection of the Collateral or any income thereon nor any duty as to preservation of any rights pertaining thereto, except to apply the funds in accordance with the requirements of Section 10 hereof.  The Pledgee may exercise its rights with respect to property held hereunder without resort to other security for or sources of reimbursement for the Obligations.  In addition to the foregoing, Pledgee shall have all of the rights, remedies and privileges of a secured party under the Uniform Commercial Code of New York (the “UCC”) regardless of the jurisdiction in which enforcement hereof is sought.

9.

Private Sale.  Each Pledgor recognizes that the Pledgee may be unable to effect (or to do so only after delay which would adversely affect the value that might be realized from the Collateral) a public sale of all or part of the Collateral by reason of certain prohibitions contained in the Securities Act, and may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obliged to agree, among other things, to acquire such Collateral for their own account, for investment and not with a view to the distribution or resale thereof.  Each Pledgor agrees that any such private sale may be at prices and on terms less favorable to the seller than if sold at public sales and that such private sales shall be deemed to have been made in a commercially reasonable manner.  Each Pledgor agrees that the Pledgee has no obligation to delay sale of any Collateral for the period of time necessary to permit the Issuer to register the Collateral for public sale under the Securities Act.

10.

Proceeds of Sale.  The proceeds of any collection, recovery, receipt, appropriation, realization or sale of the Collateral shall be applied by the Pledgee as follows:

(a)

First, to the payment of all costs, reasonable expenses and charges of the Pledgee and to the reimbursement of the Pledgee for the prior payment of such costs, reasonable expenses and charges incurred in connection with the care and safekeeping of the Collateral (including, without limitation, the reasonable expenses of any sale or any other disposition of any 

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of the Collateral), attorneys’ fees and reasonable expenses, court costs, any other fees or expenses incurred or expenditures or advances made by Pledgee in the protection, enforcement or exercise of its rights, powers or remedies hereunder;

(b)

Second, to the payment of the Obligations, in whole or in part, in such order as the Pledgee may elect, whether or not such Obligations is then due;

(c)

Third, to such persons, firms, corporations or other entities as required by applicable law including, without limitation, Section 9-615(a)(3) of the UCC; and

(d)

Fourth, to the extent of any surplus to the Pledgors or as a court of competent jurisdiction may direct.

In the event that the proceeds of any collection, recovery, receipt, appropriation, realization or sale are insufficient to satisfy the Obligations, each Pledgor shall be jointly and severally liable for the deficiency plus the costs and fees of any attorneys employed by Pledgee to collect such deficiency.

11.

Waiver of Marshaling.  Each Pledgor hereby waives any right to compel any marshaling of any of the Collateral.

12.

No Waiver.  Any and all of the Pledgee’s rights with respect to the Liens granted under this Agreement shall continue unimpaired, and Pledgor shall be and remain obligated in accordance with the terms hereof, notwithstanding (a) the bankruptcy, insolvency or reorganization of any Pledgor, (b) the release or substitution of any item of the Collateral at any time, or of any rights or interests therein, or (c) any delay, extension of time, renewal, compromise or other indulgence granted by the Pledgee in reference to any of the Obligations.  Each Pledgor hereby waives all notice of any such delay, extension, release, substitution, renewal, compromise or other indulgence, and hereby consents to be bound hereby as fully and effectively as if such Pledgor had expressly agreed thereto in advance.  No delay or extension of time by the Pledgee in exercising any power of sale, option or other right or remedy hereunder, and no failure by the Pledgee to give notice or make demand, shall constitute a waiver thereof, or limit, impair or prejudice the Pledgee’s right to take any action against any Pledgor or to exercise any other power of sale, option or any other right or remedy.

13.

Expenses.  The Collateral shall secure, and each Pledgor shall pay to Pledgee on demand, from time to time, all reasonable costs and expenses, (including but not limited to, reasonable attorneys’ fees and costs, taxes, and all transfer, recording, filing and other charges) of, or incidental to, the custody, care, transfer, administration of the Collateral or any other collateral, or in any way relating to the enforcement, protection or preservation of the rights or remedies of the Pledgee under this Agreement or with respect to any of the Obligations.

14.

The Pledgee Appointed Attorney-In-Fact and Performance by the Pledgee.  Upon the occurrence of an Event of Default, each Pledgor hereby irrevocably constitutes and appoints the Pledgee as such Pledgor’s true and lawful attorney-in-fact, with full power of substitution, to execute, acknowledge and deliver any instruments and to do in such Pledgor’s name, place and stead, all such acts, things and deeds for and on behalf of and in the name of such Pledgor, which 

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such Pledgor could or might do or which the Pledgee may deem necessary, desirable or convenient to accomplish the purposes of this Agreement, including, without limitation, to execute such instruments of assignment or transfer or orders and to register, convey or otherwise transfer title to the Collateral into the Pledgee’s name.  Each Pledgor hereby ratifies and confirms all that said attorney-in-fact may so do and hereby declares this power of attorney to be coupled with an interest and irrevocable.  If any Pledgor fails to perform any agreement herein contained, the Pledgee may itself perform or cause performance thereof, and any costs and expenses of the Pledgee incurred in connection therewith shall be paid by the Pledgors as provided in Section 10 hereof.

15.

Waivers.  THE PARTIES HERETO DESIRES THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN LAURUS, AND/OR ANY COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEN IN CONNECTION WITH THIS AGREEMENT, ANY OTHER DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO. 

16.

Recapture.  Notwithstanding anything to the contrary in this Agreement, if the Pledgee receives any payment or payments on account of the Obligations, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver, or any other party under the United States Bankruptcy Code, as amended, or any other federal or state bankruptcy, reorganization, moratorium or insolvency law relating to or affecting the enforcement of creditors’ rights generally, common law or equitable doctrine, then to the extent of any sum not finally retained by the Pledgee, each Pledgor’s obligations to the Pledgee shall be reinstated and this Agreement shall remain in full force and effect (or be reinstated) until payment shall have been made to Pledgee, which payment shall be due on demand.

17.

Captions.  All captions in this Agreement are included herein for convenience of reference only and shall not constitute part of this Agreement for any other purpose.

18.

Miscellaneous.

(a)

This Agreement constitutes the entire and final agreement among the parties with respect to the subject matter hereof and may not be changed, terminated or otherwise varied except by a writing duly executed by the parties hereto.

(b)

No waiver of any term or condition of this Agreement, whether by delay, omission or otherwise, shall be effective unless in writing and signed by the party sought to be charged, and then such waiver shall be effective only in the specific instance and for the purpose for which given.

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(c)

In the event that any provision of this Agreement or the application thereof to any Pledgor or any circumstance in any jurisdiction governing this Agreement shall, to any extent, be invalid or unenforceable under any applicable statute, regulation, or rule of law, such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and the remainder of this Agreement and the application of any such invalid or unenforceable provision to parties, jurisdictions, or circumstances other than to whom or to which it is held invalid or unenforceable shall not be affected thereby, nor shall same affect the validity or enforceability of any other provision of this Agreement.

(d)

This Agreement shall be binding upon each Pledgor, and each Pledgor’s successors and assigns, and shall inure to the benefit of the Pledgee and its successors and assigns.

(e)

Any notice or other communication required or permitted pursuant to this Agreement shall be given in accordance with the Security Agreement. 

(f)

THIS AGREEMENT AND THE OTHER DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

(g)

EACH PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY PLEDGOR, ON THE ONE HAND, AND THE PLEDGEE, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS, PROVIDED, THAT EACH PLEDGOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE PLEDGEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE INDEBTEDNESS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE PLEDGEE.  EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PLEDGOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.  EACH PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PLEDGOR AT THE ADDRESS SET FORTH IN THE THE SECURITY AGREEMENT 

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AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE SUCH PLEDGOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.

(h)

It is understood and agreed that any person or entity that desires to become a Pledgor hereunder, or is required to execute a counterpart of this Agreement after the date hereof pursuant to the requirements of any Document, shall become a Pledgor hereunder by (x) executing a Joinder Agreement in form and substance satisfactory to the Pledgee, (y) delivering supplements to such exhibits and annexes to such Documents as the Pledgee shall reasonably request and/or set forth in such joinder agreement and (z) taking all actions as specified in this Agreement as would have been taken by such Pledgor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Pledgee and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledgee.

(i)

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by facsimile transmission shall be deemed an original signature hereto.

[Remainder of Page Intentionally Left Blank]

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

360 GLOBAL WINE COMPANY

By:

Name:

Title:

360 VIANSA LLC

  By 360 Global Wine Company, its sole member

By:

Name:

Title:

KFWBA ACQUISITION CORPORATION

By:

Name:

Title:

 DOMINION WINES, LTD.

 By:

 

 Name:  Joel Shaprio

Title:   Chief Executive Officer

 KNIGHTSBRIDGE TORRIQUE                               

 By:

 

 Name:  Joel Shaprio

Title:   Chief Executive Officer

LAURUS MASTER FUND, LTD.

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By:

Name: Eugene Grin

Title:   Director 

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SCHEDULE A to the Stock Pledge Agreement

Pledged Stock

	Pledgor

	Issuer

	Class

	Stock Certificate No.

	Par Value

	Number of 

Shares/Units

	Percentage of all Outstanding

	360 Global Wine Company

	360 Viansa LLC

	Units

	N/A

	N/A

	 100

	100%

	

	

	

	

	

	

	

	360 Global Wine Company

	Dominion Wines Ltd.

	Common

	 N/A

	 $1 AUD

	 324,801

	 56
%

	360 Global Wine Company

	KFWBA Acquisition Corporation

	 Units

	 NA

	 .001

	 100

	100%

	360 Global Wine Company

	Knightsbridge Torrique

	 Units

	 NA

	 .001

	 100

	 100%360 Global Wine Company Exhibit 10.11

LIEN SUBORDINATION AGREEMENT

This Lien Subordination Agreement (this “Agreement”) is entered into as of the 7th day of July 2005, by and among Gryphon Master Fund, L.P. and its affiliates (collectively referred to herein as the “Existing Lenders” and each, an “Existing Lender”), Laurus Master Fund, Ltd. (the “New Lender”), 360 Global Wine Company (formerly Knightsbridge Fine Wines, Inc.), a Nevada corporation (the “Parent”), and 360 Viansa LLC, a Nevada limited liability company (“Viansa” and together with Parent and Parent’s current and future other subsidiaries, the “Company”).  Unless otherwise defined herein, capitalized terms used herein shall have the meaning provided such terms in the Security and Purchase Agreement referred to below.

BACKGROUND

WHEREAS, it is a condition to
New Lender making
an investment in Parent and Viansa pursuant to, and in accordance with, (i) that certain Security and Purchase Agreement dated as of the date hereof by and between the Company and the New Lender (as amended, modified or supplemented from time to time, the “Security Agreement”) and (ii) the Ancillary Agreements referred to in the Security Agreement.

WHEREAS, the Existing Lender has made loans to the Parent.

NOW, THEREFORE, the Existing Lender and the New Lender agree as follows:

TERMS

1.

Notwithstanding anything to the contrary set forth in the Securities Exchange Agreement, dated as of April 21, 2004 between the Parent and the Existing Lender (the “Existing Security Exchange Agreement”) and the Transaction Documents referred to in the Existing Security Exchange Agreement (including, without limitation, the Amended and Restated Security Agreement, dated as of April 21, 2004 between the Parent and the Existing Lender (the “Existing Security Agreement”), the Existing Lender hereby consents to the consummation of the transaction described and set forth in the Security Agreement and the Ancillary Agreements referred to in the Security Agreement in substantially the same form presented to the Existing Lender on or prior to the date hereof and with such changes as are permitted under Section 9 hereof or as the Existing Lender may agree in its sole discretion, including, without limitation, the incurrence by the Company of additional indebtedness for borrowed money (in the amounts not exceeding the amounts set forth below), the sale by the Company of securities in a Variable Rate Transaction (as defined in the Existing Security Exchange Agreement, together with all other actions reasonably required to be taken by the Company in relation thereto and the grant by the Company (other than a grant by KKLLC in its assets
 (as defined below) and other than the grant of a security interest over any membership interest in KKLLC or distributions or proceeds related to that security interest) of a first-priority senior security interest for the benefit of the New Lender securing such additional indebtedness in certain collateral (together with any other asset of the Company subject to a security interest for the benefit of the New Lender, the “Common Collateral”) which, in any event, shall expressly exclude the Excluded Collateral (as 

defined below).  The New Lender shall not benefit from any security interest, pledge or other encumbrance in the Excluded Collateral.

2.

Notwithstanding anything to the contrary set forth in the Existing Security Exchange Agreement or the Transaction Documents referred to in the Existing Security Exchange Agreement, each of the Existing Lender and the Parent hereby agree and acknowledge that the issuance by the Parent of the Option and the Option Shares to the New Lender shall not be deemed under the Existing Security Exchange Agreement or the Transaction Documents referred to therein to be an issuance of Common Stock (as defined in the Existing Security Exchange Agreement) or Common Stock Equivalents (as defined in the Existing Security Exchange Agreement) by the Parent.

3.

Notwithstanding anything to the contrary set forth in the Security Agreement or the Ancillary Agreements referred to therein, (i) the New Lender hereby agrees and acknowledges that each of the Parent and Viansa shall be permitted to grant to the Existing Lender a ‘silent’ second priority security interest in the Common Collateral and (ii) each of the Parent and Viansa hereby agree to grant to the Existing Lender as promptly as possible a ‘silent’ second priority security interest in all its respective assets (real, personal or mixed), now owned or hereafter acquired, pursuant to a security agreement in form and substance substantially similar to the applicable Security Documents (except that such security documents shall be governed by Texas law and give the U.S. district court for the Northern District of Texas (or, in the absence of appropriate subject matter jurisdiction, Texas state courts sitting in such district) and corresponding appellate courts exclusive jurisdiction to resolve all matters in connection therewith) and otherwise reasonably acceptable to such Existing Lender; provided that, such grants shall in no way affect the New Lender’s subordination rights set forth in Section 5; provided further that, the Existing Lender’s obligations to the New Lender as set forth herein shall continue to be enforceable against such Existing Lender notwithstanding the failure or breach by the Company and/or Viansa of performing any its respective obligations to the Existing Lender hereunder.  The Company shall ensure that the Existing Lenders are granted a security interest in any assets upon which a security interest is granted in favor of any New Lender (or any of its affiliates) on terms and conditions similar to those set forth in clause (ii) above.

4.

Other than with respect to the exercise by the New Lender of the Option to acquire 4,193,329 shares of Common Stock of the Parent on the date hereof, the New Lender hereby acknowledges that it shall be prohibited from selling any shares resulting from the exercise of its rights under the Option to acquire additional shares of Common Stock of the Parent (including through short sales) until the earlier to occur of (i) the repayment in full of the Existing Liabilities and (ii) the 365th day following the date hereof.

5.

All obligations of the Company to the New Lender, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent or now or hereafter existing, or due or to become due are referred to as “New Liabilities”.  Any and all loans made by the Existing Lenders to the Company, together with all other obligations of the Company to any Existing Lender (in each case, including any interest, fees or penalties related thereto), howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent or now or hereafter 

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existing, or due or to become due are referred to as “Existing Liabilities”.  It is expressly understood and agreed that the term “New Liabilities”, as used in this Agreement, shall include, without limitation, any and all interest, fees and penalties accruing on any of the New Liabilities after the commencement of any proceedings referred to in paragraph 7 of this Agreement, notwithstanding any provision or rule of law which might restrict the rights of the New Lender, as against the Company or anyone else, to collect such interest, fees or penalties, as the case may be.  It is further expressly understood and agreed that the New Lender shall not make to the Company advances in excess of, and the Company shall not incur any liabilities to the New Lenders or any other lender (without the consent of Gryphon) in excess of, and the term “New Liabilities”, as used in this Agreement, shall not include indebtedness incurred by the Parent and/or Viansa after the date hereof in excess of (i) the principal amount of
$3,000,000 in the case of the revolving facilities evidenced by the Revolving Note together with all interest, fees, costs and expenses related thereto
, (ii) the principal amount of
$3,000,000 in the case of additional
indebtedness used solely for working capital purposes (and not to repay or refinance any existing facility, to make dividends, distributions or acquisitions or to finance other transactions outside the ordinary course of business) together with all interest, fees, costs and expenses related thereto
, (iii) the principal amount of
 $34,500,000 in the case of term loans used to finance the acquisition on the date hereof together with all interest, fees, costs and expenses related thereto
, and (iv) the principal amount of
indebtedness incurred for the purpose of acquisition financings together with all interest, fees, costs and expenses related thereto
 (so long as such indebtedness described in this clause (iv) is unsecured other than with respect to the assets acquired thereby), provided that the aggregate principal amount of such indebtedness in this clause (iv) is no greater than the lesser of the purchase price or fair market value of the property acquired and, in the case of clause (iii) and clause (iv), which principal amount of such indebtedness
shall not be, and may not be, reborrowed once repaid.

 6.

 Notwithstanding the date, manner or order of grant, attachment or perfection of any lien or security interest in any of the Common Collateral and notwithstanding any provision of the UCC or any other applicable law or any provision of the Security Agreement, the Ancillary Agreements or the Existing Security Exchange Agreement or the Existing Security Agreement or any other circumstance whatsoever, t
he Existing Lender hereby subordinates all security interests (other than security interests granted with respect to the Excluded Collateral )
 that have been, or may be, granted by the Company to such Existing Lender in respect of the Existing Liabilities, to the security interests granted by the Company to the New Lender in respect of the New Liabilities.  For purposes hereof, the “Excluded Collateral” shall mean (i) the Parent’s entire equity  interest in Kirkland  Knightsbridge  LLC, a  California  limited liability company  (“KKLLC”), which, without limiting the generality of the foregoing, shall  include  all of the  Parent’s right,  title and interest,  whether now owned or hereafter acquired,  whether direct or indirect, whether  legal,  beneficial or economic,  whether fixed or  contingent,  whether arising  under the  KKLLC  Organizational  Documents (as defined in the Amended and Restated Security Agreement),  under  applicable  law or otherwise  (A) as a  member  in and  to  KKLLC  (including  the  Parent’s  50% membership  interest in KKLLC),  the  Parent’s  interest in any other rights to participate in the equity of KKLLC,  the Parent’s share of the profits,  losses and  capital of KKLLC,  the  Parent’s  voting  rights and all of the  Parent’s rights  in,  to and  under the KKLLC  Organizational  Documents,  

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including  any purchase  option,  right of first  refusal,  right of first  offer and  buy/sell right;  (B) any other  membership and other interest in and to KKLLC; (C) in all Distributions from KKLLC; (D) in all proceeds  (including  claims against third parties),  products,    rents, revenues,  issues, profits,  royalties, income, benefits, additions and accessions to or of any of the foregoing; (E) in all  replacements and  substitutions of or for any of the foregoing, (ii) all assets and properties (real, personal or mixed) of KKLLC, whether now owned or hereafter acquired, together with all proceeds of the foregoing and of the properties set forth in clauses (iii) and (iv) below,(iii) all intercompany indebtedness (currently estimated to be approximately $3,500,000) owed by KKLLC to the Parent together with all proceeds of the foregoing and (iv) all assets of KKLLC and its Subsidiaries, whether now owned or later acquired. 

7.

In the event of any dissolution, winding up, liquidation, readjustment, reorganization or other similar proceedings relating to the Company or to its creditors, as such, or to its property (whether voluntary or involuntary, partial or complete, and whether in bankruptcy, insolvency or receivership, or upon an assignment for the benefit of creditors, or any other marshalling of the assets and liabilities of the Parent and/or any of its Subsidiaries, or any sale of all or substantially all of the assets of the Parent and/or any of its Subsidiaries, or otherwise), other than with respect to the net proceeds derived from the sale or refinancing of the Excluded Collateral or the recovery of the proceeds thereof, the New Liabilities shall first be paid in full before the Existing Lender shall be entitled to receive and to retain any payment or distribution in respect of any Existing Liability.

 8.

 So long as the New Liabilities remain outstanding, the New Lender shall have the exclusive right to enforce rights and remedies (including any right of setoff) with respect to the Common Collateral (including making determinations regarding dispositions or restrictions with respect to the Common Collateral) or to  commence or seek to commence any action or proceeding with respect to such rights or remedies, in each case without any consultation with or the consent of the Existing Lender.  If in connection with any disposition of any Common Collateral consented to by New Lender or the enforcement and foreclosure of any of the Common Collateral,  the liens of the Existing Lender shall be automatically, unconditionally and simultaneously released and the Existing Lender shall promptly execute and deliver to the New Lender such termination statements, releases and other documents as the New Lender shall reasonably request to effectively confirm such release.
The Existing Lender will not, without the prior written consent of the New Lender: (a) commence any foreclosure proceedings on  (or otherwise enforce its security interest in respect of) the Common Collateral; or (b) commence, or join with any other creditor in commencing, any bankruptcy, reorganization or insolvency proceedings with respect to Parent or Viansa ; provided that nothing herein shall be construed to prohibit the Existing Lender from taking such action deemed reasonably necessary to preserve its rights as a secured creditor (subject to the priorities set forth herein)
 of the Company and/or Viansa in respect of any bankruptcy, reorganization or insolvency proceedings not directly or indirectly commenced by such Existing Lender.   So long as the New Liabilities remain outstanding, any Common Collateral or any proceeds thereof received by Existing Lender in connection with the exercise of any right or remedy (including any right of setoff) with respect to the Common Collateral, in connection with any insurance policy claim or any condemnation award (or deed in lieu of condemnation) and in connection with any disposition of or collection

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 on any Common Collateral, shall be segregated and held in trust by Existing Lender and forthwith transferred and paid over to the New Lender in the same form received together with any necessary endorsements.  
All parties hereto acknowledge and agree that the Parent may make regularly scheduled principal and interest payments (including default interest), as the case may be, to the Existing Lenders with respect to the Existing Liabilities, so long as the amount of such regularly scheduled principal payments and the rate of interest, in each case, with respect to the Existing Liabilities is not increased from that in effect on the date hereof (other than by the terms of the Transaction Documents referred to in the Existing Security Exchange Agreement as a result of a default or event of default thereunder).

9.

The New Lender may, from time to time, at its sole discretion and without notice to any Existing Lender, take any or all of the following actions:  (a) retain or obtain a security interest in any property (other than the Excluded Collateral) to secure any of the New Liabilities; (b) retain or obtain the primary or secondary obligation of any other obligor or obligors with respect to any of the New Liabilities; (c) extend or renew for one or more periods (whether or not longer than the original period), alter or exchange any of the New Liabilities, or release or compromise any obligation of any nature of any obligor with respect to any of the New Liabilities; (d) release their security interest in, or surrender, release or permit any substitution or exchange for, all or any part of any property securing any of the New Liabilities other than obtaining a security interest in Excluded Collateral, or extend or renew for one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor; and (e) otherwise amend, modify and/or supplement the Security Agreement and/or the Ancillary Agreements, provided that such amendments, modifications an/or supplements shall not materially and adversely impact any right or remedy of any Existing Lender or any of its successors or permitted assigns.

10.

The New Lender may, from time to time, whether before or after any discontinuance of this Agreement, without notice to any Existing Lender, assign or transfer any or all of the New Liabilities or any interest in the New Liabilities (provided, however, that the assignee thereof shall have the benefit of this Agreement only to the extent such assignee agrees to be bound hereby); and, notwithstanding any such assignment or transfer or any subsequent assignment or transfer of the New Liabilities (but subject to the preceding proviso), such New Liabilities shall be and remain New Liabilities for the purposes of this Agreement, and every immediate and successive assignee or transferee of any of the New Liabilities or of any interest in the New Liabilities shall, to the extent of the interest of such assignee or transferee in the New Liabilities, be entitled to the benefits of this Agreement to the same extent as if such assignee or transferee were the New Lender, as applicable; provided, however, that, unless the New Lender shall otherwise consent in writing, the New Lender shall have an unimpaired right, prior and superior to that of any such assignee or transferee, to enforce this Agreement, for the benefit of the New Lender, as to those of the New Liabilities which the New Lender has not assigned or transferred.  Neither the New Lender nor the Existing Lender shall be prejudiced in its rights under this Agreement by any act or failure to act of any Existing Lender or New Lender, or any noncompliance of the Existing Lender or New Lender with any agreement or obligation, regardless of any knowledge thereof; and no action of the New Lender or the Existing Lender  

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permitted under this Agreement shall in any way affect or impair the rights of the other and the obligations thereof hereunder.

11.

No delay on the part of the New Lender or the Existing Lender in the exercise of any right or remedy shall operate as a waiver of such right or remedy, and no single or partial exercise by the New Lender or the Existing Lender of any right or remedy shall preclude other or further exercise of such right or remedy or the exercise of any other right or remedy; nor shall any modification or waiver of any of the provisions of this Agreement be binding upon the New Lender except as expressly set forth in a writing duly signed and delivered on behalf of the New Lender.  For the purposes of this Agreement, the New Liabilities shall have the meaning set forth in Section 5 above, notwithstanding any right or power of the Existing Lender or anyone else to assert any claim or defense as to the invalidity or unenforceability of any such obligation, and no such claim or defense shall affect or impair the agreements and obligations of any Existing Lender under this Agreement.

12.

This Agreement shall be binding upon the Existing Lender and upon the heirs, legal representatives, successors and assigns of the Existing Lender and the successors and assigns of the Existing Lender.

13.

This Agreement shall be construed in accordance with and governed by the laws of New York without regard to conflict of laws provisions.  Wherever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

14.

This Agreement shall be deemed to be an Ancillary Agreement (as defined in the Security Agreement) and a Transaction Document (as defined in the Existing Security Agreement).

[signature page follows]

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IN WITNESS WHEREOF, this Agreement has been made and delivered this 7th day of July 2005.

GRYPHON MASTER FUND, L.P.

By:  Gryphon Partners, L.P., its General Partner

By:  Gryphon Management Partners, L.P.,   its General Partner

By:  Gryphon Advisors, L.L.C., its General Partner

By:  

Name:  

Title:  

LAURUS MASTER FUND, LTD.

By:  

Name:  Eugene Grin

Title:   Director

360 GLOBAL WINE COMPANY

By:  

Name:  Joel Shapiro

Title:   CEO

360 VIANSA LLC

By:  

Name:  Joel Shapiro

Title:   CEO

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