Document:

ex10_3.htm

    
      

    

    Exhibit
10.3

     

    
      AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

      

      This
AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is executed on this 2nd
day of September, 2008, to be effective May 1, 2007 (“Effective Date”) between
PETROSEARCH ENERGY
CORPORATION, a Nevada
corporation  ("Company") and DAVID COLLINS
(“Employee”).

      

      RECITALS:

      

      A.          Company
has been capitalized under the laws of the State of Nevada in order to acquire
and develop key oil and gas development prospects across the United
States.

      

      B.          
Company desires to engage the services of Employee on an exclusive basis as
an executive officer for
the Company.

      

      TERMS
OF AGREEMENT:

      

      NOW,
THEREFORE, FOR VALUE RECEIVED, and in consideration of the mutual covenants
contained herein, Company and Employee agree as follows:

      

      1.           Engagement/Term.  Company
shall employ Employee as Vice President, Corporate Secretary
and  Chief Financial Officer for a period of two (2) years from the
Effective Date, subject to the termination provisions herein (the “Term”) and
Employee hereby agrees to be engaged by Company for the Term in such
capacity.  This Agreement shall automatically expire at the end of the
indicated term unless extended in writing by Company. Bonuses shall not be
deemed to be accrued and part of any severance package unless and until the
Board of Directors has declared and awarded the particular bonus to the
particular Employee. THIS
AGREEMENT SUPERSEDES AND REPLACES THE PRIOR EMPLOYMENT AGREEMENT, AS AMENDED,
BETWEEN THE PARTIES DATED MAY 1, 2005 (“PRIOR AGREEMENT”) AND UPON EXECUTION
HEREOF BY THE PARTIES, THE PRIOR AGREEMENT SHALL BE DEEMED TO BE TERMINATED AND
OF NO FURTHER EFFECT.

      

      2.           Exclusive
Employment/Other Engagements.  Company and
Employee hereby stipulate that this Agreement is exclusive as to Employee, and
Employee shall not accept or enter into contemporaneous consulting/employment
relationships with third parties.  Employee shall dedicate a minimum
of forty (40) hours per week to the tasks associated with the executive position
assumed under this Agreement.

      

      3.           Compensation.  Employee shall be
compensated for his services as follows:

      

      a.           Base
Salary.  As compensation to Employee for the performance of his
duties or obligations under this Agreement, Company shall pay Employee a base
salary (the “Base Salary”) of TWO HUNDED FIFTEEN THOUSAND AND NO/100 DOLLARS
($215,000.00) annually, payable monthly, in semi-monthly installments of EIGHT
THOUSAND NINE HUNDRED FIFTY EIGHT AND 33/100 DOLLARS ($8,958.33) during the term
of this Agreement.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      b.           Bonus.  In
addition to receiving the Base Salary described in Section 3.a., Employee may be
awarded such bonuses from time to time as are recommended by the CEO to the
Board of Directors, and then reviewed and approved by the Compensation Committee
of the Board of Directors (or, alternatively, approved by the Board of Directors
directly without committee recommendation should such committee be non-existent
or inactive).

      

      c.           Company Related
Travel.  Employee shall be reimbursed, upon submission of
receipts and proper documentation, for any and all Company related travel away
from the principal office (Houston, Texas), including coach airfare, hotel and
meals (subject to the expenditure limitations imposed by Company).

      

      d.           Documented Out-of-Pocket
Expenses.  Employee shall be promptly reimbursed for all other
reasonable out-of-pocket expenses incurred on behalf of Company which are
properly documented to Company; including, long distance telephone charges on
telephones other than Company’s office phones.

      

      e.           Medical/Dental
Insurance.  Employee shall be entitled during the Term, upon
satisfaction of all eligibility requirements, to participate in all health,
dental, disability, life insurance, retirement and other benefit programs now or
hereafter established by Company and shall receive such other benefits as may be
approved from time to time by the CEO.

      

      4.           Death or
Disability. Upon the death or long term disability of the Employee,
this Agreement will automatically terminate, and the Employee (or his heirs in
the case of death) will be entitled to six (6) months of Base Salary and
benefits as listed above.  All of the Employee’s outstanding warrants
shall become exercisable upon the date of death or long term disability, and
shall remain outstanding and exercisable per the terms of the warrant
agreement.

      

      5.           Acknowledgment
of Legislative Impact Upon Taxation.  Company and
Employee acknowledge and agree that Employee may in the future be awarded stock
or warrant-based compensation as a bonus or as part of a plan implemented to
benefit a group.  Employee acknowledges that he/she has been advised
of proposed legislative enactments which create uncertainty regarding future
taxation of such stock or warrant-based compensation.  Such
compensation may be refused by Employee, if offered, but the Company shall have
no duty to keep Employee apprised of the legislative enactments regarding
taxation and shall have no liability for adverse tax consequences to Employee
should Employee accept such stock or warrant-based compensation unless otherwise
provided in this Agreement.

      

      6.           Duties
and Obligations.  Employee shall
perform such duties and tasks pertaining to Employee’s expertise as Company
shall from time to time reasonably determine and specify as well as those duties
and tasks customarily attributable to the assignment assumed as described in
paragraph 1 above.  Employee shall perform the designated tasks at the
location or locations assigned by CEO from time to time, which may include
locations other than the Company’s home office in Houston, Texas. Employee
hereby covenants and agrees to perform the services for which he is hereby
retained in good faith and with reasonable diligence in light of attendant
circumstances.  The Employee shall, at all times, be under the
supervision of the CEO and shall comply with such person’s directives as to all
duties and tasks to be performed.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      7.           Termination
for Cause by
Company.  This
Agreement may be terminated for “cause” by Company immediately, without prior
notice (except as indicated hereinbelow) and without severance pay or
benefits.  For purposes hereof, “cause”
shall mean any of the following events:

      

      a.           Any
embezzlement or wrongful diversion of funds of Company or any affiliate of
Company by Employee;

      

      b.           Malfeasance,
poor performance as to core or delegated job assignments in the opinion of the
Company CEO or insubordination by Employee in the conduct of his
duties;

      

      c.           Failure
to observe or strictly adhere to all Company policies put into effect and/or
amended from time to time.

      

      d.           Abandonment
by Employee of his job duties or repeated absences from Company-directed tasks
which are not otherwise excused by the Company.

      

      e.           Competing
with the Company or otherwise diverting away from the Company business
opportunities intended for the Company or which could reasonably benefit the
Company’s core business.

      

      f.          
 Other material breach of this
Agreement by Employee that remains uncured for a period of at least thirty
(30) days following written notice from Company to Employee of such alleged
breach, which written notice describes in reasonable detail the nature of such
alleged breach; or

      

      g.           Conviction
of Employee or the entry of a plea of nolo contendere or equivalent plea of a
felony in a court of competent jurisdiction, or any other crime or offense
involving moral turpitude.

      

      8.           Termination for Good
Reason by Employee.  This
Agreement may be terminated for “good reason” by
Employee which, if so terminated, shall give rise to the severance pay
provisions set forth in paragraph 10 below.  For purposes hereof,
“good reason” shall mean only material
breach of this Agreement by the Company that remains uncured for a period of at
least thirty (30) days following written notice from Employee to Company of such
alleged breach, which written notice describes in reasonable detail the nature
of such alleged breach.

      

      9.           Termination Upon a Change
in Control.  Employee shall have the right, in
his discretion, to terminate employment under this Agreement as a result of a
Change in Control (as defined below).  In the event that Employee is
involuntarily terminated or voluntarily elects to terminate his employment upon
a Change in Control, then Employee shall be entitled to the severance pay
benefits described in paragraph 10 below.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      For purposes hereof, a “Change in Control” shall mean
the occurrence during the Term of any of the following
events:  (i)  An acquisition (other than directly from the
Company) of any voting securities of the Company (the “Voting Securities”) by
any “Person” (as the term person is used for purposes of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934 (the “1934 Act”)) immediately after which
such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of 40% or more of the combined voting power of
the Company’s then outstanding Voting Securities; provided however, that in
determining whether a Change in Control has occurred, Voting Securities which
are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not
constitute an acquisition which would cause a Change in Control.  A
“Non-Control Acquisition” shall mean an acquisition by (a) an employee benefit
plan (or a trust forming a part thereof) maintained by (x) the Company or (y)
any corporation or other Person of which a majority of its voting power or its
equity securities or equity interest is owned directly or indirectly by the
Company (a “Subsidiary”), (2) the Company or any Subsidiary, or (3) any Person
in connection with a “Non-Control” Acquisition, (ii)    the sale or other disposition of
all or substantially all of the business or assets of the Company to any person
(other than a transfer to a Subsidiary); or (iii)  a merger, consolidation or reorganization
involving the Company (other than with a Subsidiary).

      

      10.         Severance
Pay Provisions/Effect of Termination Without Cause by Company, With Good Reason
by Employee or Due to Change in Control.

       

        a.          
In the event that
(i) this Agreement is terminated by Company without “cause”, (ii)
Employee terminates his employment for “good reason”, (iii) Employee’s
employment is voluntarily (by Employee) or involuntarily terminated upon a
“Change in Control”, (iv) Employee continues his employment through the
expiration of the Term whether or not Company offers continued or renewed
employment, and whether or not such offer of continued employment is accepted or
declined by Employee, in his discretion,  then Employee shall
be entitled to severance pay from Company equal to a lump cash sum of
$550,000  (the “Severance Cash Sum”), whether notice of termination is
delivered by Company or Employee.

       

       
b.          The Severance Cash
Sum provided for in paragraph 10a above shall be in lieu of any other severance
or termination pay to which the Employee may be entitled under any Company
severance or termination plan, program, practice or arrangement and in lieu of
any remedial sum available under any legal theory of recovery under applicable
law.  The limitation of Employee’s severance to the Severance Cash Sum
shall not affect or impair Employee’s existing warrants or stock options,
existing 401K accrued benefits, existing life insurance, or Employee’s ability
to avail himself of COBRA benefits or indemnification insurance and benefits for
matters subject to indemnification, whether pending at termination or arising
subsequent to termination.

      

      11.         Time of
Essence, Attorneys Fees.  Time is of the
essence with respect to this Agreement and same shall be capable of specific
performance without prejudice to any other rights or remedies under
law.  If either party  seeks to enforce, in law or in equity
(including any arbitration proceeding), any provision contained herein, then the
prevailing party in such proceeding shall be entitled to attorneys fees,
interest and all such other disbursements and relief provided under law, but
shall not be entitled to punitive or exemplary damages of any
kind.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      12.         Modification
or Amendment.  The parties
hereto may modify or amend this Agreement only by written agreement executed and
delivered by the respective parties.

      

      13.         Binding
on Heirs and Assigns.  This Agreement
shall inure to and be binding upon the undersigned and their respective heirs,
representatives, successors and permitted
assigns.  This Agreement may not be assigned by either party without
the prior written consent of the other party.

      

      14.         Counterparts.  For the
convenience of the parties hereto, this Agreement may be executed in any number
of counterparts, each such counterpart being deemed to be an original
instrument, and all such counterparts shall together constitute the same
agreement.

      

      15.         No
Waivers.  No waiver of or
failure to act upon any of the provisions of this Agreement or any right or
remedy arising under this Agreement shall be deemed or shall constitute a waiver
of any other provisions, rights or remedies (whether similar or
dissimilar).

      

      16.         GOVERNING
LAW.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS AND SHALL BE PERFORMABLE IN HARRIS COUNTY,
TEXAS.

      

      17.         Notices.  Any notice,
request, instruction or other document to be given hereunder by any party to the
other shall be in writing (by FAX, mail, telegram or courier) and delivered to
the parties as follows:

      

      
        	
                If
      to Company:

              	
                Richard
      Dole, President

              

      

      675
Bering Drive, Suite 200

      Houston,
Texas 77057

      FAX:  713-961-9338

      

      
        	
                If
      to Employee:

              	
                David
      Collins

              

      

      8323
Southwest Freeway, Ste 990

      Houston,
TX 77074

      FAX:
530-326-2930

      

      18.         Entire
Contract/No Third Party Beneficiaries.  This Agreement
constitutes the entire agreement, and supersedes all other prior agreements and
understandings, both written and oral, between the parties with respect to the
subject matter hereof, and is not intended to create any obligations to, or
rights in respect of, any persons other than the parties
hereto.  There are no third party beneficiaries of this
Agreement.

      

      19.         Captions
for Convenience.  All captions
herein are for convenience or reference only and do not constitute part of this
Agreement and shall not be deemed to limit or otherwise affect any of the
provisions hereof.

      

      20.         Severability.  In case any one
or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or enforceability shall not affect any other provision hereof, and
this Agreement shall be construed as if such invalid, illegal or enforceable
provision had never been contained herein.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      21.         BINDING
ARBITRATION.  ANY CONTROVERSY OR CLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE BREACH THEREOF, SHALL BE
SETTLED BY FINAL AND BINDING ARBITRATION CONDUCTED IN HOUSTON, TEXAS, IN
ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES ("RULES") OF THE AMERICAN
ARBITRATION ASSOCIATION IN EFFECT AT THE TIME THE CONTROVERSY OR CLAIM ARISES,
BUT SAID ARBITRATION NEED NOT BE ADMINISTERED BY THE AMERICAN ARBITRATION
ASSOCIATION.  THE ARBITRATOR, WHICH SHALL BE AGREED UPON BY THE
PARTIES, SHALL HAVE JURISDICTION TO DETERMINE ANY SUCH CLAIM AND MAY GRANT ANY
RELIEF AUTHORIZED BY LAW FOR SUCH CLAIM EXCLUDING CONSEQUENTIAL AND PUNITIVE
DAMAGES.  EACH PARTY TO THE ARBITRATION SHALL BEAR THE INITIAL FILING
FEES AND CHARGES EQUALLY, PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD
REIMBURSEMENT OF ALL SUCH COSTS AND FEES TO THE PREVAILING PARTY AS A PART OF
ITS AWARD.  THIS PARAGRAPH SHALL LIKEWISE BE SPECIFICALLY ENFORCEABLE
IN A COURT OF COMPETENT JURISDICTION SHOULD THE PARTY NOT DEMANDING ARBITRATION
REFUSE TO PARTICIPATE IN OR COOPERATE WITH THE ARBITRATION
PROCESS.

      

      EXECUTED
by the undersigned as of the Effective Date set forth above.

      

      SIGNATURES
APPEAR ON FOLLOWING PAGE

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      
        	 
      	
                PETROSEARCH
      ENERGY CORPORATION

              
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                By:

              	/s/
      Richard
      D. Dole	 
	 
      	
                Richard
      D. Dole, President & CEO

              
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	/s/
      DAVID
      COLLINS	 
	 
      	
                DAVID
      COLLINS

              

      

       

       

      7EX 10.4

     

     

    EXHIBIT
      10.4

     

    AMENDMENT
      NO. 2 TO SUBSCRIPTION AGREEMENT AND TO COMMON STOCK

    
      PURCHASE
        WARRANT TO PURCHASE SHARES OF COMMON STOCK OF PURPLE BEVERAGE COMPANY,
        INC.

       

      This
        Amendment to the Subscription Agreement and to Common Stock Purchase Warrant
        to
        purchase shares of common stock, par value $0.001 per share (the “Common
        Stock”)
        of
        Purple Beverage Company, Inc. (this “Amendment”),
        is
        effective as of September __, 2008, by Purple Beverage Company, Inc., a Nevada
        corporation (the “Company”),
        and
        the undersigned holder (the “Holder”).
        The
        Company and Holder are, together, the “Parties.”

       

      RECITALS

       

      WHEREAS,
        effective December 12, 2007, the Company and the Holder entered into that
        certain Subscription Agreement (the “Subscription
        Agreement”),
        pursuant to which the Company sold and issued to Holder certain Shares (as
        defined therein) and granted to Holder a Common Stock Purchase Warrant to
        purchase shares of Common Stock of the Company, which warrant was dated and
        issued as of December 12, 2007 (the “2007
        Warrant”),
        and
        entitled Holder, upon exercise thereof in accordance with the terms contained
        therein, to purchase up to that number of shares of Common Stock specified
        therein (the “2007
        Underlying Shares”)
        at an
        exercise price (the “Purchase Price” as defined in the 2007 Warrant) of $2.00
        per share;

      

      WHEREAS,
        the Company is seeking the consent of Holder and other purchasers who purchased
        Shares and 2007 Warrants under the Subscription Agreement which will permit
        the
        Company to seek to secure certain financing from the exercise of outstanding
        2007 Warrants;

      

      WHEREAS,
        the parties wish to amend certain terms contained in the Subscription Agreements
        and all of the 2007 Warrants, and is offering to reduce to $0.40 per share
        the
        effective purchase price for Shares purchased under the Subscription Agreements
        (and certain other shares purchased from the Company at $1.40 per share and
        at
        $1.25 per share) by issuance of additional shares of the Company to Holders
        at
        no cost, upon receipt of the required consents necessary to authorize this
        Amendment (the “Excepted
        Transaction Shares”);

        

      WHEREAS,
        as a further inducement to consent to the requested actions by the Company,
        upon
        receipt of the required consents necessary to authorize this Amendment, the
        Company will: (i) adjust the exercise price of all unexercised 2007 Warrants
        to
        $0.40 per share; (ii) grant to the Holder of all 2007 Warrants, newly-issued
        restricted Common Stock (the “Restricted
        Stock”)
        in an
        amount equal to 15% of the number of 2007 Underlying Shares into which each
        unexercised 2007 Warrant is currently exercisable, and each unregistered
        2007
        Warrant shall thereupon be irrevocably forfeited and cancelled; and (iii)
        permit
        the transfer and assignment of registered 2007 Warrants with a revised exercise
        price of $0.40 per share;

       

      NOW,
        THEREFORE, in consideration of the premises, the covenants made herein, and
        for
        such other good and valuable consideration, the receipt and sufficiency of
        which
        are hereby acknowledged, the Parties hereby agree as follows:

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      ARTICLE
        1

      AMENDMENTS

       

      1.    Amendments
        to the Subscription Agreement.

       

      1.1    Waiver
        of Certain Anti-dilution Protections.
        Notwithstanding anything to the contrary contained in the Subscription Agreement
        or the 2007 Warrants, none of the transactions contemplated by this Amendment,
        or the contemporaneous transfer, assignment or exercise of any 2007 Warrants,
        including without limitation, issuance of Excepted Transaction Shares,
        adjustment of the 2007 Warrant exercise price, forfeiture of 2007 Warrants,
        and
        issuance of Restricted Stock, shall result in the imposition or effectiveness
        of
        any anti-dilution protections, price protection, most favored nations
        protections or similar clauses, in favor of the Holder contained in the
        Subscription Agreement or 2007 Warrants, except as specifically provided
        in
Article
        II
        hereof.

      

      For
        the
        absence of doubt, the transactions contemplated herein shall constitute an
        “Excepted Issuance” as defined in the Subscription Agreement. Notwithstanding
        anything herein to the contrary, all anti-dilution protections, price protection
        and most favored nations protections or similar clauses shall continue in
        full
        force and effect following the date hereof and shall apply to any further
        issuances or transactions, other than as contemplated by this
        Amendment.

       

      1.2    Waiver
        of Certain Offering Restrictions.
        Notwithstanding anything to the contrary contained in the Subscription Agreement
        or the 2007 Warrants, none of the transactions contemplated by this Amendment,
        including, without limitation, issuance
        of Excepted Transaction Shares, adjustment of the 2007 Warrant exercise price,
        forfeiture of 2007 Warrants, and issuance of Restricted Stock, including
        transfers and assignments of the registered 2007 Warrants,
        shall be
        deemed to be a violation of any of the offering or other restrictions imposed
        upon, or granted by, the Company and in favor of the Holder contained in
        the
        Subscription Agreement, including, without limitation, Section 9(r) of the
        Subscription Agreement.

      

      1.3    Consent
        and Amendment of Warrant.
        The
        undersigned Holder (in each of the Holder’s capacity as Subscriber
        and as a Holder of 2007 Warrants for the purposes of such consent inasmuch
        as the separate consent is required for each of such purposes) hereby consents
        to the assignment of  2007 Warrants, the 2007 Underlying Shares of
        Common Stock of which have been registered for resale with the Securities
        and Exchange Commission, and all other transactions, amendments, modifications
        and waivers to the Subscription Agreement and 2007 Warrants as contemplated
        herein, and as follows: 

       

      (A)    The
        provisions of Section 4(o) of the Subscription Agreement and any and all
        references thereto in the 2007 Warrants, or any other document or
        agreement, as amended through the date hereof, are hereby deleted in their
        entirety solely with respect to any Restricted Stock, 2007 Warrants, as
        well as any similar or equivalent provisions relating to the Restricted
        Stock, 2007 Warrants, and the 2007 Underlying Shares and the provisions of
        such
        Section 4(o) shall be inapplicable to the Restricted Stock, 2007 Warrants
        and
        the 2007 Underlying Shares, which, unless such securities are registered,
        

       

      
        
           

        

        
          -
            2 -

          
            

          

        

        
           

        

      

      shall
        for
        all purposes be subject to the restrictions of Rule 144 under the Securities
        Act
        of 1933, as amended; 

       

      (B)    the
        Subscription Agreement and each and every lockup agreement is hereby amended
        solely to eliminate any and all restrictions on the transfer, sale, assignment,
        exercise, or disposition of any 2007 Warrants and/or any 2007
        Underlying Shares assigned; and further transfers of such 2007 Warrants or
        2007 Underlying Shares, and the undersigned covenants and agrees not
        to take any action seeking in any way to restrict assignee of such 2007
        Warrants from exercise of the 2007 Warrants or sale of 2007
        Underlying Shares or otherwise effectuating the intent and purposes
        of any assignment; 

       

      (C)    upon
        approval
        of the Board of Directors, the Company may authorize and undertake a reverse
        stock split in such ratio, number or amount as the Board of Directors reasonably
        determines is necessary or appropriate in connection with satisfying the
        original listing standards then in effect for any national securities exchange;
        and 

       

      (D)    Section
        12(a)
        of the Subscription Agreement (including, without limitation, Section 3.4
        of
        the 2007 Warrant) shall be amended by adding to the definition of “Excepted
        Issuance” the following: 

       

      “For
        the
        purposes hereof, an Excepted Issuance shall include: (i) securities issued
        (including any warrants or other convertible securities) in connection with
        any
        registered offering by the Company (including on a best efforts or underwritten
        basis); (ii) issuance of any options or shares of Common Stock as commitment
        or
        consultant fees, additional consideration, interest, exercise fee, commissions,
        redemption payment or otherwise in connection with any warrant exercises
        or
        bridge loans to the Company approved by the Board of Directors, up to a maximum
        of 2,500,000 shares; (iii) all 2007 Incentive Plan awards; and (iv) all
        issuances of Common Stock authorized by the Company the effect of which shall
        result in the effective purchase price per Share of Common Stock to the Company
        sold pursuant to each Subscriber as a result thereof equal to $0.40 per share
        of
        Common Stock acquired prior to the date of this Amendment, the cancellation
        and
        forfeiture of Warrants and issuance of Common Stock thereupon in an amount
        equal
        to 15% of the shares of Common Stock underlying such outstanding Warrants
        immediately prior to such cancellation and forfeiture and adjustment of the
        exercise price of unexercised Warrants not cancelled (i.e., the unexercised
        Warrants that have bee registered with the SEC) to $0.40 per
        share.”

       

      2.    Conditions
        Precedent.
        As a
        condition precedent to the effectiveness of the Amendment and the transactions
        contemplated herein, the effectiveness of this Amendment and the transactions
        contemplated hereby shall require the Holders holding not less than 70% of
        the

      
        
           

        

        
          -
            3 -

          
            

          

        

        
           

        

      

      Shares
        and 2007 Underlying Shares shall have signed this amendment to their respective
        Subscription Agreement and 2007 Warrant (the “Effective
        Date”).

       

      3.    Market
        Standoff.
        In
        connection with this Amendment, each Holder agrees that in the event the
        Company sells securities pursuant to an underwritten registered offering,
        including on a best efforts basis by a placement agent, the Holder shall
        not
        effect any public sale of securities of the Company during a customary period
        of
        time requested by the managing underwriter of such offering.

       

      ARTICLE
        2

      ANTI-DILUTION
        ADJUSTMENT

       

      1.    2007
        Warrants; Restricted Stock Issuance.
        On the
        Effective Date, the Company shall issue to all Holders of 2007 Warrants
        (registered and unregistered), newly-issued shares of restricted Common Stock
        in
        an amount equal to 15% of the number of 2007 Underlying Shares into which
        each
        unexercised 2007 Warrant forfeited shall be exercisable, and each 2007 Warrant
        (other than 2007 Warrants exercised or exercisable for registered 2007
        Underlying Shares) shall be forfeited and cancelled and of no further force
        or
        effect.

      

      2.    2007
        Warrants; Registered Shares.
        On the
        Effective Date, the exercise price of all 2007 Warrants, the 2007 Underlying
        Shares of which have been registered with the SEC, shall be $0.40 per share
        and
        such 2007 Warrants shall be the only 2007 Warrants that shall remain
        outstanding.

      

      3.    Anti-Dilution
        Shares.
        On the
        Effective Date, the Company shall issue to all Subscribers, all Holders who
        previously exercised 2007 Warrants, and all purchasers of shares of Common
        Stock
        at $1.40 per share prior to the date hereof, such number of additional shares
        of
        Common Stock as shall result in the effective purchase price per share of
        Common
        Stock to the Company equal $0.40 per share of Common Stock. 

      

      ARTICLE
        3

      MISCELLANEOUS
        PROVISIONS

       

      1.    Re-affirmation
        of Representations and Warranties.
        If the
        Holder consents to this Amendment, then the Holder hereby currently re-affirms
        herein all of the representations and warranties made by the Holder in favor
        of
        the Company in the Subscription Agreement as if made as of the date of this
        Amendment and the Company hereby re-affirms herein all of the representations
        and warranties initially made by the Company in favor of the Holder in the
        Subscription Agreement as of the date of the Subscription
        Agreement.

       

      2.    Miscellaneous
        Provisions.

       

      2.1    No
        Further Amendments.
        Except
        as amended by this Amendment, the Subscription Agreement and the 2007 Warrant
        remain unmodified and in full force and effect. In the event of any
        inconsistency between the provisions of either the Subscription Agreement
        or the
        2007 Warrant and the provisions of this Amendment, the provisions of this
        Amendment shall

      
        
           

        

        
          -
            4 -

          
            

          

        

        
           

        

      

      prevail.
        This Amendment may only be modified or amended by a written agreement executed
        by the Company, and consented to by Holder, with the same formalities and
        in the
        same manner as this Amendment.

       

      2.2    Counterparts.
        This
        Amendment may be executed in one or more counterparts, each of which shall
        be
        deemed an original but all of which when taken together shall constitute
        one and
        the same instrument. Facsimiles or portable document files transmitted by
        e-mail
        containing original signatures shall be deemed for all purposes to be originally
        signed copies of the documents which are the subject of such facsimiles or
        files.

      

      2.3    Binding
        on Successors.
        This
        Amendment shall be binding upon and shall inure to the benefit of the successors
        and permitted assigns of the Parties.

       

      2.4    Entire
        Agreement.
        Each of
        the Subscription Agreement and the 2007 Warrant, as amended by this Amendment,
        contains the entire understanding between the Parties and supersedes any
        prior
        written or oral agreements between them respecting the subject matter contained
        herein. There are no representations, agreements, arrangements or
        understandings, oral or written, between the Parties relating to the subject
        matter hereof that are not fully expressed herein.

       

      IN
        WITNESS WHEREOF, the Parties hereto have executed or have caused a duly
        authorized officer to execute this Amendment all effective as of the day
        and
        year first above written.

       

      
        	
                PURPLE
                  BEVERAGE COMPANY, INC.

              	 	 
	 	 	 
	 	 	 
	
                By: 
                  ___________________________________________________

              	 	
                 

              
	
                Theodore
                  Farnsworth, Chief Executive Officer

              	 	 
	 	 	 
	 	 	 
	
                HOLDER:

              	 	 
	
                 

              	 	 
	
                I
                  hereby consent to the amendments set forth herein:

              	 	 
	 	 	 
	 	 	 
	________________________________________________	 	
                September
                  __, 2008

              
	
                Name:

              	 	 
	
                Title:
                  

              	 	 
	 	 	 
	 	 	 

      

      
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