Document:

Exhibit 10.13

 

MASTER DISTRIBUTOR AGREEMENT

 

THIS MASTER DISTRIBUTOR AGREEMENT (hereinafter the
“Agreement”), is made this 21 first day of November 2008 (“Effective
Date”), by and between “Who’s Your, Daddy. Inc., a Nevada corporation having its principal place
of business located at 5840 EI Camino Real, Suite 108, Carlsbad, CA 92808
(“WYD”), and Bervt Promotion, LLC, a Nevada limited
liability company having its principal place of business located at                                                                                                                         
(“Distributor”). WYD is the producer and seller of certain products
described in Exhibit A the (“Products”). Upon the terms and
conditions set forth herein, Distributor desires to be appointed as a
distributor for the Products and WYD desires to appoint Distributor as a
distributor. Accordingly, in consideration of the foregoing and the mutual
covenants and undertakings set forth herein, the parties hereby agree as
follows:

 

1.                                      SCOPE OF APPOINTMENT.

 

A.                                  WYD hereby appoints
Distributor as its exclusive distributor, with the right to sub-distribute upon
substantially similar terms and conditions hereof and such other terms and
conditions as Distributor reasonably
determines, for the sale of the Products in the territory listed in Exhibit
B (the “Territory”). The Distributor will notify WYD of any sub-distributor
appointed within seven (7) days.

 

B.                                    In order to help
ensure the Products are distributed properly throughout the entire Territory, and that Distributor
devotes its diligent efforts to the Products and to the support of its
customers within the Territory, Distributor shall refrain from engaging in
actively soliciting customers located outside the Territory with respect to the
Products during the term of this Agreement, unless otherwise authorized by WYD in
writing. If Distributor is found to have violated this provision, it is subject
to termination for cause under Section 4 (C). If Distributor has cause to
believe Product is being transshipped and sold to customers in Distributor’s
Territory other than under the provisions of Section 1 (A), Distributor shall notify WYD promptly and
Distributor and WYD will make its best efforts, including the use of all available legal remedies, to determine the
source of the transshipping and cause it to cease. Except as hereinafter
provided, if any of the above restrictions is unlawful under applicable laws or
regulations, such restriction(s) shall be considered of no force or effect.

 

C.                                    Distributor agrees
to use its commercially reasonable efforts to diligently and faithfully develop a demand for the Products
and to solicit purchases thereof so as to maintain a reasonable volume of sales
of the Products.

 

 

Distributor further agrees
that, at all times hereunder, it will maintain adequate working capital,
facilities and personnel to accomplish this purpose.

 

D.                                   During the term of this Agreement, WYD shall
not appoint any other distributor for the sale of the Products within the Territory. Distributor shall not sell Products outside of the Territory
or sell to customers located within the Territory who Distributor knows will
sell substantially all of the Products outside the Territory. If, from time to
time, WYD introduces new beverage products in the Territory, they will
first be
offered to Distributor. If
mutually acceptable terms are agreed upon within a reasonable time after WYD
gives Distributor notice of the new products, the new products will be added to
this Agreement on said terms.

 

The exclusive right to sell
the Products in the Territory does not apply to sales or transfers by National
Chains of the Products to or within the Territory to its stores or its
affiliates with which the Distributor did not devote direct efforts. A “National Chain” is defined
as a group of affiliated, centrally managed accounts that are reasonably
designated by WYD for National Chain treatment. WYD will use its best efforts
to arrange for the Distributor to distribute to the National Chains. If WYD is
unable to reach an agreement for the Distributor to sell the Products to said
National Chains, WYD will pay Distributor an invasion fee equal to the
difference between the per case price sold by WYD to the National Chain and
then current per case price for the Products to the Distributor, less shipping
and slotting fees actually paid by WYD, on
all sales to said Chains.
For example, if WYD sells a case
of Products to a National Chain for $22, and
pays $1 per case shipping and slotting fees, and the
Distributor’s then current wholesale price for the Products is $18, WYD will
pay the Distributor an invasion fee equal to $3 per case sold to the National
Chain.

 

For disclosure purposes, WYD
is advising the Distributor that it has an agreement in place, for marketing purposes, for vending machines, office coffee services and mobile
catering distributors (includes schools) in certain territories.

 

E.                                     Distributor hereby accepts its appointment
hereunder.

 

2.                                      PRICES
AND PAYMENT TERMS.

 

A.                                  The Distributor agrees to the prices and
payment terms as provided in Exhibit
C.

 

B.                                    Distributor shall notify WYD in writing of
disputed charges within seven (7) business days of receiving the invoice containing the disputed charge. Distributor shall provide documentation
reasonably requested by WYD to
resolve the dispute. Distributor and WYD shall exercise reasonable, good faith efforts to resolve the disputed charges. Failure to contest a charge within thirty (30) days of the date of
the Distributor’s receipt of an invoice

 

2

 

shall create an irrefutable
presumption of the correctness of the charge, absent manifest error. If Distributor and WYD fail to resolve
the disputed charge within
thirty (30) days from the date of the Distributor’s receipt of an invoice, the
disputed charge shall be subject to the dispute resolution procedures set forth
in Section 15 of this Agreement.

 

C.                                    Payment may be made by cash, credit card,
money order, Automatic Clearing House (ACH) or Cashier’s check or company
checks made out to WYD.

 

3.                                    OBLIGATIONS

 

A.                                    Distributor shall:

 

(i)                                    use reasonable commercial efforts to sell the
Products throughout the entire Territory;

 

(ii)                                 maintain an adequate and knowledgeable
outside sales force (Exhibit F);

 

(iii)                              maintain such warehousing facilities as
Distributor may reasonably determine;

 

(iv)                             refrain from any unfair trade practices or
any other activities detrimental to WYD’s goodwill or reputation and shall follow the guidelines outlined in WYD’s “Code of Conduct”
published on its website at
http://whosyourdaddyinc.com/indexcoc.htm?pageid=codeofConduct;

 

(v)                                disseminate to its customers any promotional
materials supplied free of charge by WYD from time to time;

 

(vi)                             furnish WYD with marketing information,
monthly depletion reports and other, sales information and statistics as
reasonably requested by WYD from time to time;

 

(vii)                          comply with all applicable laws and
regulations and adhere to all standards and quality control policies reasonably
established by WYD with regard to any of its dealings with the Products; and

 

(viii)                       provide WYD with the documentation required
in Exhibit D prior to receiving any orders.

 

B.                                    WYD shall:

 

(i)                                    refer all inquiries to sell the Products from
locations in the Territory, other than National Chains, to which the
Distributor does not have a direct relationship. If the Distributor is unable
to reach an agreement to sell the Products to said location, WYD reserves the
right to negotiate directly with said location;

 

(ii)                                 provide, during the Term and at no cost to
the Distributor, POS and other promotional materials to be mutually agreed
upon.

 

3

 

Distributor
will provide WYD with a schedule of its planned promotional parties;

 

(iii)                              meet regularly with
the Distributor to discuss the sales of the Products, provide support whit
local marketing initiatives, demo programs, review customer lists, sales
priorities and forecasts;

 

(iv)                             maintain accurate financial records on the Products sold to
Distributor;

 

(v)                                except as otherwise provided herein, supply
the Distributor such quantities of the Products as shall be required by the
Distributor to perform the conditions of this Agreement, and the same shall be
shipped on order from the Distributor consistent with provisions of this
Agreement;

 

(vi)                             Products shall be manufactured and, labeled
in accordance with all applicable federal, state and local laws and
regulations, including but not limited to the U.S. Food, Drug and Cosmetic Act,
the Occupational Safety and Health Act, and all associated regulations;

 

(vii)                          replace, at its own expense, all Products
which are spoiled or otherwise deficient in quality or physically damaged prior
to shipment;

 

(viii)                       obtain and maintain, and will continue to
maintain at all times during the Term, at its own expense, comprehensive
general liability insurance and product liability insurance in an amount not
less than $1 million per occurrence in respect of bodily injury and $1 million
per occurrence in respect of property damage. Company will provide certificates of insurance evidencing such
coverage to Distributor upon request.

 

4.                                      TERM AND TERMINATION

 

A.                                  This Agreement
shall remain in effect unless terminated pursuant to the terms of this
Section 4. If this Agreement is terminated, each party acknowledges that
it will take appropriate actions to adjust its business operations in
anticipation of termination.

 

B.                                    This appointment of Distributor shall be for
the term and conditions described in Exhibit E (the “Term”).

 

C.                                    Either Distributor or WYD may terminate this
Agreement for cause, at any time during the Term. “Cause” for termination shall
include, but not be limited to, the following:

 

(i)                                    Cause shall exist
for termination by either party if the other party breaches any provision of
this Agreement, and fails to cure, if curable, such
breach within thirty (30) days after receipt of written
notice from the other patty specifying the nature of the breach. In such event,
the termination shall be deemed effective at midnight upon the expiration of
the 30th day after the breaching party’s receipt of such notice.

 

4

 

(ii)                                 If any representation or warranty made by
either Party herein is materially false or misleading when delivered.

 

(iv)                             Either party takes any action that negatively
affects the goodwill or reputation of the other.

 

(iv)                             Cause shall exist for termination by either
party immediately upon written notice to the other party, if such other party
liquidates or terminates its business, becomes insolvent, is adjudicated a
bankrupt, makes an assignment for the benefit of creditors, invokes the
provisions of any law for the relief of debtors, or files or has filed against
it any similar proceeding.

 

D.                                   Cause shall exist for termination by WYD:

 

(i)                                    if Distributor fails to make payments due
pursuant to this Agreement; or

 

(ii)                                 if Distributor is convicted of committing a
felony or engaging in fraudulent activity with respect to its dealings with WYD or if any license or permit necessary for Distributor to distribute the
Products is reduced or suspended for more than 15 continuous days.

 

E.                                     Upon an event of default or violation of this
Agreement, WYD may:

 

(i)                                    Suspend or terminate all or any portion of
deliveries remaining;

 

(ii)                                 Accelerate all amounts due and outstanding
from Distributor;

 

(iii)                              Pursue an action at law to enforce the
provisions of this Agreement;

 

(iii)                              Recover attorney fees, costs of court,
consequential and special damages if an action at law is instituted:, or

 

(iv)                             Pursue any other action, in law or equity, in which it deems proper.

 

F.                                     Notwithstanding the above, upon any
expiration or termination of this Agreement, any orders outstanding and
unshipped as of the expiration or termination date shall be deemed canceled,
and WYD shall have no obligation to fill the same. WYD shall have the right to
reject all or part of any orders received from Distributor during the period
after any notice of termination but prior to the effective date of the
termination, if availability of the Products is insufficient at that time to
meet the needs of WYD and its customers fully.

 

G.                                    Notwithstanding the provisions of
subparagraph D, the termination of this Agreement shall not relieve Distributor
from its obligation to satisfy any outstanding indebtedness to WYD, from its
indemnification obligations pursuant to Section 8, or from any of
Distributors other obligations hereunder, with respect to any WYD Products
remaining in Distributor’s inventory. Distributor acknowledges that Sections 7,
8 and 17 shall survive any termination of this Agreement.

 

5

 

 

H.                                   Upon
any termination of this Agreement, WYD
may, at its option, repurchase from Distributor any or all of the Products in
Distributor’s inventory. If WYD fails to repurchase any such Products,
Distributor shall have 60 days after the date of termination to sell-off any
remaining inventory of Products.

 

I.                                        Upon termination other than as provided in Exhibit
C, so long as the Distributor is not then in breach of any material
obligation hereunder, WYD will pay the Distributor the. sum of three dollars ($3.00) for each case of
Products sold at retail in the ordinary course of business (if not returned or
otherwise credited) by Distributor in the twelve (12) month period immediately
preceding the date of notice of the termination of this Agreement (“Termination
Fee”); provided, however, if fewer than twelve (12) months has passed prior to
the termination, the number of cases sold shall be annualized with that result
used as the basis for calculating the Termination Fee due hereunder. The
parties acknowledge that the calculation of damages to the Distributor
would be difficult to ascertain if WYD terminates or fails to renew this
Agreement without cause and agree that the Termination Fee  represents a fair agreed upon liquidated
damages. This Termination Fee shall be payable by WYD only where WYD’s
termination or failure to renew is without cause. The Distributor agrees, in
consideration for the Termination Fee, to provide WYD with a detailed list of
all accounts purchasing the Products in the Territory.

 

5.                                      ORDERS AND SHIPMENTS

 

A.                                  Each of Distributor’s orders is subject to
WYD’s acceptance. Orders must be a minimum of truckload, unless otherwise
accepted by WYD. In addition to any specific rights of rejection set forth in
this Agreement, WYD shall have the right, in its reasonable discretion, to
reject any order, in whole or in part. Orders shall be deemed accepted unless
WYD rejects any order within three (3) business days after the date of WYD’s
receipt of the purchase order.

 

B.                                    Shipping toms on all sales from WYD to
Distributor shall be F.O.B. Distributor’s loading dock unless a different
delivery address is set forth in the purchase order. WYD shall not be liable to
Distributor for any damages, whether incidental, consequential, or otherwise,
for failure to fill orders, delays in shipment or delivery or any error in the
filling of orders if such failure, delay or mistake is not within the control
of WYD. WYD shall assume liability for any breakage of Products from WYD to
Distributor.

 

C.                                    WYD shall have the right to make partial
shipments with respect to Distributor’s orders, which shipments shall be invoiced
separately and paid for when due, without regard to subsequent
shipments. If WYD makes a partial shipment to Distributor which results in the shipment of less than a full truckload, WYD shall pay the cost
of freight. Delay in

 

6

 

shipment
or delivery of any particular installment shall relieve Distributor of its
obligation to accept the remaining installments unless mutually agreed to
advance.

 

D.                                   Goods are deemed received by Distributor upon
delivery. Until received by Distributor, all risk of loss to the above described
goods is borne by WYD. Distributor has the right to examine the goods upon
receipt and has five (5) business days in which to notify WYD of any claim
for damages based on the condition, grade, quantity or quality of the goods.
Such notice must specify in detail the particulars of the claim. Failure to
provide such notice within the requisite
time period constitutes irrevocable acceptance of the goods.

 

6.                                      WARRANTY MATTERS

 

A.                                  WYD SPECIFICALLY DISCLAIMS ANY AND ALL
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO ANY IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH REGARD
TO THE PRODUCT. WYD’S ENTIRE LIABILITY HEREUNDER IS EXPRESSLY LIMITED TO
DISTRIBUTOR’S DIRECT DAMAGES, NOT TO EXCEED AMOUNTS PAID TO WYD HEREUNDER. IN
NO EVENT SHALL WYD BE LIABLE FOR ANY LOST PROFITS OR ANY OTHER CONSEQUENTIAL,
INCIDENTAL, SPECIAL, INDIRECT, PUNITIVE OR OTHER, DAMAGES,

 

B.                                    The only express warranties made by WYD with
respect to the Products are that the goods are free from, any and all security
interests, liens or encumbrances, Notwithstanding anything herein to the
contrary, WYD warrants that the Products shipped to Distributor are pure,
wholesome and of uniform quality, are fit for, human consumption and meet all
requirements of the applicable federal, state and local law and regulations,
including those promulgated under the Federal Food, Drug and Cosmetic Act.

 

C.                                    If WYD recalls any Product, WYD will, within
fifteen (15) days of WYD’s recall notice, at WYD’s  expense, pick-up any unsold or returned
Product inventory from Distributor and credit Distributor’s account for the
cost of such Product, including costs of freight and any applicable taxes.

 

7.                                 TRADEMARKS / PROPRIETARY INFORMATION

 

A.                                  Distributor acknowledges the exclusive
ownership by WYD of all trademarks, trade names, logos, service marks, trade
dress, designs and copyrighted materials utilized by WYD worldwide in connection
with the Products (collectively referred to as “Marks”). Distributor shall be
privileged to utilize Marks only in connection with Distributor’s sales and
advertising of the Products. Such utilization shall be in accordance with
standards and requirements established by WYD from time to time, in WYD’s sole discretion.  As used  herein, the term “Marks” shall include all
marks, names, slogans, labels, logos,
service marks, trade dress, designs

 

7

 

and
copyrighted materials used by WYD, regardless of whether such items are
registered by WYD.

 

B.                                    Distributor shall refrain from removing,
altering or obliterating any Marks from the Products. Distributor shall refrain
from advertising or selling the Products under any trademarks or trade names in
addition to Marks or from repackaging or relabelling the Products, without
WYD’s prior written authorization. In any instance in which Distributor
utilizes Marks in advertising or other promotional materials, such materials
shall indicate prominently that Marks are owned by WYD. Distributor shall
refrain from utilizing any Marks on any Products other than WYD’s Products.
Distributor will not otherwise use or register (or make any filing with respect
to) any of the Marks anywhere in the world. Distributor will
not contest anywhere in the world the use by WYD or use authorized by WYD of
the Marks or application or registration therefore, whether during or after the
term of this Agreement Distributor acknowledges and agrees that Distributor has
no interest in or right to the Marks. Distributor further acknowledges and
agrees that all of its use of the Marks shall inure to the  benefit of WYD.

 

C.                                    Upon any termination of this Agreement,
Distributor shall discontinue all use of Marks, except in connection with
Distributor’s sales of any remaining inventory, and shall make no claim to any
Marks or against the  use thereof by WYD or others. It is intended by the parties that Distributor shall acquire no rights in Marks, with the
exception of the privileges granted herein. However, if any such rights arise
by operation of law, Distributor shall assign it to WYD (or its designees) at
no charge.

 

D.                                   If Distributor becomes aware of any infringements or potential
infringements of Marks, Distributor shall notify WYD promptly thereof, WYD, at
its option, may elect to prosecute said infringements, but the failure of WYD
to do so shall not affect the validity or terms of this Agreement.

 

E.                                     To the extent not otherwise prohibited
herein, Distributor at no time shall engage in any activities that may impair
in any manner the rights of WYD in and to Marks.

 

F.                                     Distributor acknowledges the Company is a
public company with securities that are publicly traded and that the
Proprietary Information may include “material non-public information” as such
term is used in the federal securities laws. Distributor further acknowledges
and that it is aware that the disclosure of any “material non-public
information” to another person or entity who would or does conduct trades in
the Company’s securities, or Distributor’s trading in the Company’s securities
while aware of any “material non-public information”, could be a violation of
law, which could subject the Distributor and persons to whom the information
was disclosed
to civil and criminal penalties
under the  securities laws of the United States. Accordingly, without limiting the

 

8

 

other
terms and conditions of this Agreement, Distributor agrees that it will not,
and will use its best efforts to ensure that its representatives will not:

 

(i)                                    trade or cause third parties to trade, or
disclose, divulge or reveal material nonpublic information of the Company or its affiliates to any person or persons who may trade,
in the Company’s securities while Distributor or its representatives are aware
of such material nonpublic information; or

 

(ii)                                 use or disclose or cause any third party to use or disclose any Proprietary Information
in any manner in violation of any securities laws or any other applicable laws.

 

G.                                    Distributor shall bind, in writing its
agents, Sales Reps and sub-distributors
who have access to Proprietary Information to all the provisions of this
Section 7 and Section 17 and will provide WYD with a copy of said
document upon demand.

 

8.                                      INDEMNIFICATION

 

A.                                  Distributor agrees to indemnify and hold
harmless WYD from and against any and all damages relating to, resulting from
or arising in connection with: (i) any aspect of Distributor’s business
that does not relate to distribution of Products by Distributor or
Distributor’s subcontractors, sub-distributors, employees or agents;
(ii) the use of any Marks otherwise in strict accordance with the terms
hereof; (iii) the acts, errors, representations, misrepresentations,
willful misconduct or gross negligence of Distributor, its subcontractors,
sub-distributors, employees, or agents; (iv) the gross negligence or
willful misconduct of Distributor or any claim based upon a breach by
Distributor of its representations, warranties or obligations set forth herein.

 

B.                                    WYD agrees to indemnify and hold harmless
Distributor from and against any and all damages relating to (i) any
aspect of WYD’s business except the distribution of Products by Distributor or
Distributor’s subcontractors, sub-distributors, employees or agents;
(ii) the use of any Marks otherwise in strict accordance with the terms
hereof; (iii) the gross negligence or willful misconduct of WYD; or
(iv) any claim based upon a breach by WYD of its representations, warranties
or obligations set forth herein.

 

C.                                    In no event shall one Party be liable,
whether in contract or in tort, to the other Party, its Affiliates or any third
party, including End Users, for loss of profit, loss of revenue, loss of
business, indirect, special, consequential or punitive damages arising directly
or indirectly from the negligence of the other Party or its respective parent,
subsidiary or Affiliate or its contractors, representatives, employees or agents, or any breach
of a Party’s obligations hereunder or from the use of or in connection with the

 

9

 

sale
of the Product, whether or not that Party had either actual or constructive
knowledge that such damages might be incurred.

 

9.             INSURANCE

 

A.                                   WYD agrees to maintain at all times, Products
Liability/General Liability Insurance evidencing minimum insurance coverage in
the amount of not less than $2,000,000 per occurrence. This insurance may not
be terminated or materially modified except upon at least thirty (30) days
prior written notice by the insurance carrier to the Distributor.

 

B.                                     Distributor agrees to maintain at all times,
General Liability Insurance evidencing minimum insurance, coverage in the
amount of not less than $2,000,000 per occurrence. This insurance may not be
terminated or materially modified except upon at least thirty (30) days prior
written notice by the insurance carrier to WYD.

 

10.          RELATIONSHIP OF THE PARTIES

 

The
relationship between WYD and
Distributor is that of vendor
and vendee only. Nothing stated in this Agreement shall be construed as
creating the relationships of employer and employee, franchiser and franchisee,
master and servant, principal and agent, partnership or joint venture between
the parties. Distributor shall be deemed an independent contractor at all
times, and neither Distributor nor any of Distributor’s employees or agents
shall have any express or implied right or authority to assume or create any obligations on behalf of WYD.

 

11.                               FORCE MAJEURE AND DAMAGE
EXCLUSIONS

 

Apart
from any specific
provisions in this Agreement excusing either party’s performance or limiting
its liability, either party shall be excused from any failure or delay in
performance (with the exception of any failure or delay by Distributor in
making payments to WYD) resulting directly or indirectly from Product
shortages, inability to obtain raw materials from usual sources of supply,
transit failure or delay, labor problems or disputes, governmental orders or
restrictions, fire, flood, or other acts of nature, accident, war, civil
disturbances, or any other cause(s) beyond such party’s reasonable control.

 

12.          ASSIGNMENT

 

Other
than Distributor’s right to enter into sub-distributorships as provided herein,
Distributor may not assign, transfer or sell all or any of its rights
under this Agreement (or delegate all
or any of its obligations hereunder),
including any transfer of more than a 50% ownership interest (other than to a
principal, subsidiary or affiliate of Distributor), without the prior written
consent of WYD, which consent will not be unreasonably withheld. Any such
sub-distributorship shall be subject to the terms and conditions of this
Agreement and in no event shall survive the termination or expiration of this
Agreement.

 

10

 

13.          WAIVER

 

The
waiver by either party of any breach of this Agreement by the other party in a
particular instance shall not operate as a waiver of subsequent breaches of the
same or different kind. The failure of either party to exercise any rights under
this Agreement in a particular instance shall not operate as a waiver of said
party’s right to exercise the same or different rights in subsequent instances.
All waivers must be in writing.

 

14.          SEVERABILITY

 

The
invalidity or unenforceability of any provision of this Agreement shall not
affect the remaining provisions.

 

15.          GOVERNING LAW AND MEDIATION

 

This
Agreement shall be governed by and construed under the laws of the State of
California. In the event of a dispute between the parties, the parties elect to
use mediation through the JAMS (Judicial Arbitration & Mediation
Services) forum, with San Diego, CA as the designated location for any
hearings, and only after exhausting that remedy will the parties then use the
court system  for assistance in resolving any dispute as
follows: Except as provided herein, no civil action with respect to any
dispute, claim or controversy arising out of or relating to this Agreement may
be commenced until the matter has been submitted to JAMS for mediation. Either
party may commence mediation by providing to JAMS and to the other party a written
request for mediation, setting forth the subject of the dispute and the relief
requested. The parties will cooperate with JAMS and with one another in
selecting a mediator from a JAMS panel of neutrals, and in scheduling the
mediation proceedings. The parties covenant that they will participate in the
mediation in good faith, and that they will share equally in its costs. All
offers, promises, conduct and statements, whether oral or written, made in the
course of the mediation by any of the parties, their agents, employees, experts
and attorneys, and by the mediator and any JAMS employees, are confidential,
privileged and inadmissible for any purpose, including impeachment, in any
litigation or other proceeding involving the parties, provided that evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible
or non-discoverable as a result of its use in the mediation. Either
party may seek equitable relief prior to the mediation to preserve the status
quo pending the completion of that process. Except for such an action to obtain
equitable relief, neither party
may commence a civil action with
respect to the matters submitted to mediation until after
the completion of the initial mediation session, or forty five (45) days after
the date of filing the written request for mediation, whichever occurs first.
Mediation may continue after the commencement of a civil action, if the
parties so desire. The provisions of this Clause may be enforced by any Court
of competent jurisdiction, and the party seeking enforcement
shall be entitled to an award of all costs, fees and expenses, including
attorneys’ fees, to be paid by the party against whom enforcement is ordered.
The mediator or Judge may, in the Award, allocate all or part of the costs of
the mediation or litigation, including the fees of the mediator and the
reasonable attorneys’ fees of the prevailing party.

 

16.          ENTIRE AGREEMENT/AMENDMENT

 

This
Agreement and any Acknowledgment provide by WYD to Distributor in connection
with any order for the Products contain the entire
agreement and understanding between the parties

 

11

 

with
respect to the subject matter hereof, supersedes all prior or contemporaneous
written or oral agreements concerning such subject matter and may not be
amended, supplemented or otherwise changed, except by a document signed by both
parties hereto. Each party to the Agreement acknowledges that no written or
oral representations, inducements or promises have been made which are not
embodied herein or in such Acknowledgment. IT IS THE INTENTION AND
DESIRE OF THE PARTIES THAT THE EXPRESS PROVISIONS OF THIS AGREEMENT NOT BE
SUBJECT TO VARIATION BY IMPLIED COVENANTS OF ANY KIND.

 

17.          CONFIDENTIALITY

 

Both
Distributor and WYD recognize and acknowledge that in connection with the
transactions contemplated herein, they may have access to certain confidential
information that is valuable, special and a unique asset of the other Party.
Each Party agrees that it will not disclose such confidential information to
any person, firm, corporation, association or other entity for any purpose or
reason whatsoever, unless (i) such information becomes available to or known
by the public generally through no fault of such Party, (ii) disclosure is
required by law or the order of any governmental authority, provided that prior
to disclosing any information pursuant to this clause (ii) the Party from
whom disclosure is sought shall, if possible, give prior written notice thereof
to the Party whose information is to be disclosed and give that Party the
opportunity to contest such disclosure. In the event of a breach or threatened
breach by either Party of the provisions of this Section, the offended Party
shall be entitled to an injunction restraining the breaching Party from
disclosing, in whole or in part, such confidential information. Nothing herein
shall be construed as prohibiting the offended Party from pursuing any other
available remedy for such breach or threatened breach, including the recovery
of damages. The obligations of the Parties under this Section shall
survive the termination of this Agreement.

 

18.                               DISTRIBUTOR REPRESENTATIONS AND  WARRANTIES

 

Distributor represents and warrants to WYD that:

 

A.                                   Distributor is duly licensed by all
appropriate governmental agencies so as to permit the lawful sale of the
Products and to act as a distributor in the Territory. Distributor has all
corporate authority necessary to enter into this Agreement, and the individual
signing this Agreement is authorized to bind the Distributor;

 

B.                                     The information provided by Distributor to WYD regarding the Distributor is in all respects true
and complete; and

 

C.                                     Distributor is entering into this Agreement
based on Distributor’s own independent
investigation and is not entering into this Agreement based on any
representations made by WYD concerning Distributor’s future profitability or
sales levels under this Agreement or with respect to the Products. Distributor
acknowledges that WYD has not required Distributor to pay any franchise fee or
make any other payment in connection with this Agreement other than the actual
cost of goods and services provided by WYD under this Agreement.

 

12

 

WYD
represents and warrants to Distributor that:

 

A.                                   WYD is duly licensed by all appropriate
governmental agencies so as to permit the lawful manufacture, distribution,
marketing and sale of the
Products. WYD has all corporate
authority necessary to enter into this Agreement, and the individual signing
this Agreement is authorized to bind WYD;

 

B.                                     The information provided by WYD to
Distribution regarding the Products
is in all respects true, correct
and complete and any intellectual property contained therein is owned or
validly licensed to WYD; and

 

C.                                     WYD is entering into this Agreement based on
WYD’s own independent investigation and is not entering into this Agreement
based on any representations made by the Distributor concerning the
Distributor’s sales levels under this Agreement or with respect to the
Products.

 

19.              COUNTERPARTS

 

This
Agreement may be executed in counterparts, each of which shall be considered an
original, and all of which, when taken together, will be deemed to constitute
one and the same instrument.

 

20.              LANGUAGE
SEVERABILITY

 

The
unenforceability or invalidity of any provision of this Agreement
shall not affect the enforceability or validity of any other provision of this
Agreement.

 

21.              NOTICES

 

All notices and demands of any kind which WYD or Distributor may be required or desire to serve upon the other under the terms of this
Agreement shall be in writing and shall be served by courier or by
facsimile with machine confirmation (with a separate copy sent by courier) at
the addresses and facsimile number set forth below or at such
other addresses or facsimile numbers as are designated hereafter by notice
served as herein provided. If notice is sent by facsimile, service shall be deemed complete the day after transmission has been confirmed by machine as received.

 

If
to WYD, to:

 

Who’s
Your Daddy, Inc.

5840 El Camino Real, Suite 108

Carlsbad,
CA 92008

Attn.:
Michael R. Dunn, CEO

 

Fax:
(760) 438-5490

 

13

 

If
to Distributor, to:

 

	
   

  	
  Beryt
  Promotion, LLC

  	
   

  
	
   

  	
  3494 E. Sunset Road,

  	
   

  
	
   

  	
  Las Vegas Nevada 89120

  	
   

  
	
   

  	
  Attn:

  	
  Ramon Desage

  	
   

  
	
   

  	
  Fax:

  	
  (702) 436 5276

  	
   

  

 

IN
WITNESS WHEREOF, the parties have entered into this Agreement effective as of
the Effective Date.

 

	
   

  	
  WYD:

  	
   

  	
  WHO’S YOUR DADDY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Michael R. Dunn

  
	
   

  	
   

  	
   

  	
  By: Michael R. Dunn, CEO 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DISTRIBUTOR:

  	
   

  	
  BERYT
  PROMOTION, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
  /s/ Ramon A. Desage

  
	
   

  	
   

  	
   

  	
  By: Ramon A. Desage, CEO

  

 

14

 

EXHIBIT A

PRODUCTS

 

	
  “King
  of Energy” Drinks

  	
   

  	
  Who’s
  Your Daddy Energy Drink

  

 

EXHIBIT B

 

TERRITORY

 

Throughout
any and all properties, events or venues, anywhere in the world, where
gambling/gaming is conducted.

 

EXHIBIT C

 

PRICES AND PAYMENT TERMS

 

The Distributor agrees to an invoice price of $16.80 for the initial
order per case of 24

 

A                                      Payment Terms are Net 10 (After 2nd order). First Order shall be
COD.

 

B                                        WYD will pay for shipping for full truckloads
of 1,600 cases for the first six months. At all times, Distributor will pay for
shipping for partial truckloads.

 

C                                        If WYD terminates this agreement due to a
change of its ownership in excess of 51%, or it signs a national distribution
agreement, the Distributor will be entitled to a termination payment equal to
$3.00 per case times the number of cases purchased over the twelve months prior
to the date of termination; provided, however, if fewer than twelve months has
passed prior to the termination, the number of cases sold shall be annualized.

 

D                                       WYD may increase the price per case to
reflect the increase in price of ingredients, upon 45 days prior written notice
to Distributor.

 

EXHIBIT D

 

DOCUMENTATION REQUIRED FROM DISTRIBUTOR

 

·                                          A resale certificate, sales tax permit, or
such other or similar
documentation in such form and substance as required by applicable law.

 

15

 

EXHIBIT E

 

TERM

 

This
Agreement shall commence on the Effective Date, be for a term of one
(1) year (the “Term” of the Agreement) and be automatically renewed for
successive one (1) year terms (the “Renewal Term”) unless either of the
parties hereto gives to the other party written notice of its election to
terminate this Agreement at least  thirty
(30) days prior to the expiration of the then-current term. For purposes of
this Agreement, a year shall mean a period of 365 days beginning on the
Effective Date or each annual anniversary thereafter, as applicable.

 

EXHIBIT F

 

OUTSIDE SALES FORCE

 

Distributor’s
Sales Force will perform the following, at a minimum,
functions:

 

Account Management

 

On-Going
Sales

Customer Communication 

 

Account Management

 

Reset
Product

Inventory
Management

 

Account Service

 

New
Accounts for Distributor 

On-Site
Marketing Presence 

New
Account Prospects

 

EXHIBIT G

 

ADDITIONAL CONSIDERATION

 

Upon
execution of this Agreement, WYD will issue to Distributor 100,000 shares of
WYD’s common 144 stock.

 

16

 

WYD
Will provide at its own cost and expense, a vehicle “wrap” or other van decals
as requested by, and as reasonably acceptable to the Distributor. The cost of installation of such “wrap” or van decals shall be borne by
the Distributor.

 

17Exhibit 10.58

 

AMENDMENT NUMBER 4
TO LOAN DOCUMENTS

 

THIS AMENDMENT NUMBER 4 TO LOAN DOCUMENTS (this
“Fourth Amendment”), is entered into as of April 14, 2009, by and
among GVEC RESOURCE IV INC. (“Agent”),
as Agent and as a Lender, EMRISE CORPORATION,  a Delaware corporation (“Parent”), and Parent’s
Subsidiaries that are signatories hereto (collectively with Parent, “Borrowers”).

 

W I T N E S S E T
H

 

WHEREAS, Borrowers, Agent and the Lenders named therein are parties to
that certain Credit Agreement, dated as of November 30, 2007, as amended
by that certain Amendment Number 1 to Loan Documents, dated August 20,
2008 (the “First Amendment”), that certain Amendment Number 2 to Loan
Documents, dated February 12, 2009 (the “Second Amendment”), and
that certain Forbearance Agreement and Amendment Number 3 to Loan Documents,
dated March 20, 2009 (as amended that certain Amendment to Forbearance
Agreement and Amendment Number 3 to Loan Documents, dated April 9, 2009,
the “Third Amendment”) (as further amended, restated, supplemented, or
modified from time to time, the “Credit Agreement”);

 

WHEREAS, pursuant to Section 7 of the Third Amendment, on or prior
to April 15, 2009, the parties to the Credit Agreement agreed to enter
into an amendment to the Credit Agreement to amend the financial covenants set
forth in Sections 6.16(a), (b), and (c) of the Credit Agreement;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend the
Loan Documents as follows:

 

1.                                       DEFINITIONS.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the Credit
Agreement, as amended hereby.

 

2.                                       WAIVER OF DEFAULTS.  Pursuant
to Section 14.2 of the Credit Agreement, Agent and Required Lenders hereby
waive any claims of breach or default arising out of or relating to the initial
occurrence of the Specified Defaults (as defined in the Third Amendment) and
the continuation of such Specified Defaults (as defined in the Third Amendment)
through the Fourth Amendment
Effective Date. Agent and the Required Lenders further acknowledge that no acceleration
of any Obligations or termination of any Commitments under the Credit Agreement
shall be triggered by the initial occurrence of the Specified Defaults (as
defined in the Third Amendment) and the continuation of such Specified
Defaults (as defined in the Third Amendment) through the Fourth Amendment
Effective Date.

 

3.                                       AMENDMENT TO CREDIT AGREEMENT.

 

(a)                                  Schedule
1.1 of the Credit Agreement is amended by the addition or amendment and
restatement, as applicable, of the following definitions:

 

“Additional Unfinanced Capital
Expenditures Amount” has the meaning specified therefor in Section 6.16(f).

 

 

“Debt Service Coverage Ratio” means,
for any period, the ratio of (i) EBITDA less cash taxes less Unfinanced
Capital Expenditures to (ii) cash Interest Expense, plus payments of
principal actually made or scheduled to be made with respect to Indebtedness
(including principal payments on the Term Loans under the Agreement), plus
dividends and distributions.

 

“Fourth Amendment” means that certain
Amendment Number 4 to Loan Documents, dated as of April 14, 2009, by and
among Borrowers, Agent and the Lenders party thereto.

 

“Fourth Amendment Effective Date”
means the date on which each of the conditions precedent set forth in Section 4
of the Fourth Amendment has been satisfied.

 

“Leverage Ratio” means, with respect
to Borrowers for any date of calculation, the ratio of (i) all of the Obligations
of Borrowers under the Agreement to (ii) the Combined Capital Base less
net intangible assets (including goodwill) as reported on Borrowers’
consolidated balance sheet as of the date such calculation is made.

 

“Liquidity” means, with respect to
Borrowers for any date of calculation, the sum of (i) all Cash and Cash Equivalents,
and (ii) unused but available Advances calculated by the Revolver
Borrowing Base, minus (iii) any accounts payables aged more than 30 days
past due date.

 

“Unfinanced Capital Expenditures”
means Capital Expenditures paid in cash (other than cash that constitutes the
proceeds of Purchase Money Indebtedness).

 

(b)                                 A
new Section 5.22 to the Credit Agreement is hereby added as
follows:

 

“5.22      Additional Capital.  On or prior to September 30, 2009, Borrowers
shall provide evidence to Agent that Borrowers shall have received a minimum of
$2,000,000 (Two Million Dollars) in Net Cash Proceeds (after the payment of all
underwriting commissions, investment banking fees and other fees and expenses
associated therewith) from the sale of Borrowers’ Stock.  Notwithstanding anything to the contrary
contained herein, including but not limited to the provisions of Section 2.4(c) of
this Agreement, Borrower shall apply a portion of such Net Cash Proceeds to pay
down a portion of the Obligations, which payments shall be applied according to
the terms of this Agreement, based on the following schedule:

 

(a)           With
respect to the first $2,000,000 of Net Cash Proceeds, $500,000 shall be applied
to the Obligations;

 

(b)           With
respect to the next $1,000,000 of Net Cash Proceeds (i.e., between $2,000,001 and
$3,000,000), fifty percent (50%) of such Net Cash Proceeds shall be applied to the
Obligations; and

 

(c)           With
respect to the amount of Net Cash Proceeds in excess of the first $3,000,000, thirty
percent (30%) of such Net Cash Proceeds shall be applied to the Obligations.”

 

(c)                                  Section 6.16
of the Credit Agreement is amended and restated as follows:

 

2

 

“6.16       Financial
Covenants.

 

(a)                                  Minimum EBITDA.  Fail to achieve EBITDA, measured on a fiscal
quarter-end basis, of not less than the required amount set forth in the
following table for the applicable period set forth opposite thereto; provided,
however that any EBITDA in excess of the amounts required in any given
quarter may be used to satisfy future minimum EBITDA quarterly requirements and
provided, further, that such excess shall not be applied to any
quarter more than twelve (12) months following the end of the quarter as to
which such excess existed:

 

	
  Applicable Period

  	
   

  	
  Minimum Amount

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2009

  	
   

  	
  $

  	
  1,188,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2009

  	
   

  	
  $

  	
  589,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2009

  	
   

  	
  $

  	
  1,562,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2009

  	
   

  	
  $

  	
  1,060,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2010

  	
   

  	
  $

  	
  1,490,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2010

  	
   

  	
  $

  	
  1,686,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2010

  	
   

  	
  $

  	
  1,632,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2010

  	
   

  	
  $

  	
  1,909,000

  	
   

  

 

(b)                                 Debt Service Coverage Ratio.  Fail to achieve a Debt Service
Coverage Ratio, measured quarterly at the end of each calendar quarter, of not
less than the amount set forth in the following table for the applicable period
set forth opposite thereto or 1.10:1.00, whichever is less; provided, however,
that (i) any EBITDA in excess of the amounts required in any given quarter
may be used to satisfy future Debt Service Coverage Ratio requirements and provided,
further, that such excess shall not be applied to any quarter more than
twelve (12) months following the end of the quarter as to which such excess
existed and (ii) any Additional Unfinanced Capital Expenditure Amount may
be used to satisfy future Debt Service Coverage Ratio requirements and provided,
further, that such amount shall not be applied to any quarter more than
six (6) months following the end of the quarter as to which such Additional
Unfinanced Capital Expenditures Amount was created:

 

3

 

	
  Applicable Period

  	
   

  	
  Minimum Ratio

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2009

  	
   

  	
  0.72:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2009

  	
   

  	
  0.03:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2009

  	
   

  	
  1.00:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2009

  	
   

  	
  0.52:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2010

  	
   

  	
  0.55:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2010

  	
   

  	
  0.66:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2010

  	
   

  	
  0.83:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2010

  	
   

  	
  0.23:1.00

  	
   

  

 

(c)                                  Maximum Leverage Ratio.  Fail to achieve a Leverage Ratio, measured
quarterly at the end of each calendar quarter, of not greater than the amount
set forth in the following table for the applicable period set forth opposite
thereto:

 

	
  Applicable Period

  	
   

  	
  Maximum Ratio

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2009

  	
   

  	
  11.13:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2009

  	
   

  	
  13.59:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2009

  	
   

  	
  7.29:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2009

  	
   

  	
  7.20:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2010

  	
   

  	
  6.26:1.00

  	
   

  
	
  For Borrowers’
  fiscal quarter ending in June 2010

  	
   

  	
  5.17:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2010

  	
   

  	
  4.46:1.00

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2010

  	
   

  	
  3.60:1.00

  	
   

  

 

(d)                                 Minimum Liquidity.  Fail to achieve a minimum Liquidity, measured
quarterly at the end of each calendar quarter, of not less than the amount set
forth in the following table for the applicable period set forth opposite
thereto:

 

4

 

	
  Applicable Period

  	
   

  	
  Minimum Amount

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2009

  	
   

  	
  $

  	
  3,400,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2009

  	
   

  	
  $

  	
  4,200,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2009

  	
   

  	
  $

  	
  5,200,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2009

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in March 2010

  	
   

  	
  $

  	
  4,600,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in June 2010

  	
   

  	
  $

  	
  4,200,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in September 2010

  	
   

  	
  $

  	
  5,500,000

  	
   

  
	
  For
  Borrowers’ fiscal quarter ending in December 2010

  	
   

  	
  $

  	
  3,800,000

  	
   

  

 

(e)                                  Capital Expenditures.
The aggregate of all Capital Expenditures (for Borrowers and their
Subsidiaries) shall not be more than the amount set forth in the following
table for the applicable period set forth opposite thereto:

 

	
  Applicable Period

  	
   

  	
  Maximum Amount

  	
   

  
	
  For
  Borrowers’ fiscal year ending in December 31, 2009

  	
   

  	
  $

  	
  600,000

  	
   

  
	
  For
  Borrowers’ fiscal year ending in December 31, 2010

  	
   

  	
  $

  	
  1,800,000

  	
   

  

 

(f)                                    Unfinanced Capital Expenditures. The amount of Unfinanced Capital
Expenditures (for Borrowers and their subsidiaries) in any fiscal quarter shall
not be in excess of $62,500; provided, however, that if in any
fiscal quarter the amount of Unfinanced Capital Expenditures (for Borrowers and
their subsidiaries) is less than $62,500, then the difference between such
amount and $62,500 (the “Additional Unfinanced Capital Expenditures Amount”),
may be used by Borrowers to increase the maximum Unfinanced Capital
Expenditures (for Borrowers and their subsidiaries) to an amount equal to $62,500
plus the Additional Unfinanced Capital Expenditures Amount in any future
quarter and provided, further, that such Additional Unfinanced
Capital Expenditures Amount may not be applied to any quarter more than six (6) months
following the end of the quarter as to which such Additional Unfinanced Capital
Expenditures Amount was created.

 

5

 

4.                                       CONDITIONS PRECEDENT TO THIS FOURTH AMENDMENT.  The satisfaction of each of the following
shall constitute conditions precedent to the effectiveness of this Fourth
Amendment and each and every provision hereof:

 

(a)                                      The
representations and warranties in the Credit Agreement and the other Loan
Documents shall be true and correct in all material respects on and as of the Fourth
Amendment Effective Date, as though made on such date (except to the extent
that such representations and warranties relate solely to an earlier date);

 

(b)                                     Except
for the Specified Defaults, no Default or Event of Default shall have occurred
and be continuing on the date hereof or as of the Fourth Amendment Effective
Date;

 

(c)                                      No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein shall have been issued and remain in force by any Governmental Authority
against any Borrower, Agent, any Lender or any of their Affiliates; and

 

(d)                                     No
Material Adverse Change shall have occurred.

 

5.                                       COMPLIANCE WITH SECTION 7 OF THE THIRD
AMENDMENT.  Borrowers and
Agent acknowledge that, effective upon the occurrence of the Fourth Amendment
Effective Date, the provisions of Section 7 of the Credit Agreement have
been complied with.

 

6.                                       CONSTRUCTION.  THIS FOURTH AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE
TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA.

 

7.                                       ENTIRE AMENDMENT; EFFECT OF FOURTH AMENDMENT.  This Fourth Amendment, and the terms and
provisions hereof, constitutes the entire agreement among the parties
pertaining to the subject matter hereof and supersedes any and all prior or
contemporaneous amendments relating to the subject matter hereof.  Except as expressly set forth in this Fourth
Amendment, the Credit Agreement and other Loan Documents shall remain unchanged
and in full force and effect.  To the
extent any terms or provisions of this Fourth Amendment conflict with those of
the Credit Agreement or other Loan Documents, the terms and provisions of this
Fourth Amendment shall control.  This Fourth
Amendment is a Loan Document.

 

8.                                       COUNTERPARTS; TELEFACSIMILE EXECUTION.  This Fourth Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same instrument and any of the parties hereto may execute this Fourth
Amendment by signing any such counterpart. 
Delivery of an executed counterpart of this Fourth Amendment by
telefacsimile shall be equally as effective as delivery of an original executed
counterpart of this Fourth Amendment. 
Any party delivering an executed counterpart of this Fourth Amendment by
telefacsimile also shall deliver an original executed counterpart of this Fourth
Amendment, but the failure to deliver an original executed counterpart shall
not affect the validity, enforceability, and binding effect of this Fourth
Amendment.

 

6

 

9.                                       MISCELLANEOUS.

 

(a)                                  Upon
the effectiveness of this Fourth Amendment, each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “herein,” “hereof”
or words of like import referring to the Credit Agreement shall mean and refer
to the Credit Agreement as amended by this Fourth Amendment.

 

(b)                                 Upon
the effectiveness of this Fourth Amendment, each reference in the Loan Documents
to the “Credit Agreement,” “thereunder,” “therein,” “thereof”
or words of like import referring to the Credit Agreement shall mean and refer
to the Credit Agreement as amended by this Fourth Amendment.

 

[signatures on next page]

 

7

 

IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to be
executed and delivered on the date first written above.

 

	
  EMRISE CORPORATION

  	
  EMRISE ELECTRONICS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ D. John Donovan

  	
   

  	
  By:

  	
  /s/ D. John Donovan

  
	
  Title:

  	
  Treasurer

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CXS LARUS CORPORATION

  	
  RO ASSOCIATES INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ D. John Donovan

  	
   

  	
  By:

  	
  /s/ D. John Donovan

  
	
  Title:

  	
  Treasurer

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CUSTOM COMPONENTS, INC.

  	
  ADVANCED CONTROL COMPONENTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ D. John Donovan

  	
   

  	
  By:

  	
  /s/ D. John Donovan

  
	
  Title:

  	
  Treasurer

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GVEC RESOURCE IV INC.,
  as Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ signature illegible

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ signature illegible

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]