Document:

Exhibit 10.4 Form

    
      

    

                                                                                            Exhibit
      10.4

     

     

    

    AMENDED
      AND RESTATED VOTING AGREEMENT

    

    This
      Amended and Restated Voting Agreement, dated as of December 29, 2006 (this
      “Agreement”),
      is by
      and among New World Brands, Inc., a Delaware corporation (the “Company”),
      Qualmax, Inc., a Delaware corporation (“Qualmax”),
      P&S Spirit, LLC, a Nevada limited liability company (“P&S”), Selvin and
      Sylvia Passen, TBTE (“TBTE”),
      Oregon Spirit, LLC, a Nevada limited liability company (“Oregon
      Spirit”),
      and,
      solely for purposes of Section
      21
      hereof,
      M. David Kamrat, an individual (“D.
      Kamrat”),
      Jane
      Kamrat, an individual (“J.
      Kamrat”),
      Noah
      Kamrat, an individual (“N.
      Kamrat”),
      Tracy
      Habecker, an individual (“T.
      Habecker”
and
      together with D. Kamrat, J. Kamrat and N. Kamrat the “Kamrat
      Family”,
      and
      the Kamrat Family and Qualmax together the “Qualmax
      Holders”).
      Each
      of Qualmax, P&S, TBTE and Oregon Spirit are herein referred to as a
“Voting
      Stockholder,”
and
      together as the “Voting
      Stockholders.”
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings assigned to them in the Subscription Agreement (as defined
      below).

     

    RECITALS

     

    In
      connection with the purchase by Qualmax of 100 shares of Series A Preferred
      Stock, par value $0.01 per share, of the Company (“Series
      A Preferred Stock”),
      pursuant to the Asset Purchase Agreement, dated as of June 22, 2006, as amended
      by Amendment No. 1 to Asset Purchase Agreement, dated as of August 28, 2006
      by
      and between the Company and Qualmax, the parties entered into a Voting Agreement
      dated as of September 15, 2006 (the “Original
      Agreement”),
      whereby the parties agreed to, among other things, nominate (or cause or
      facilitate the nomination) for election as directors certain persons designated
      by each of Qualmax and Selvin Passen.

     

    In
      connection with the purchase by P&S
      of
      shares
      of the Company’s Series A Preferred Stock pursuant to the terms of a Stock
      Subscription Agreement of even date herewith (the “Subscription
      Agreement”),
      P&S intends
      to purchase shares of Series A Preferred Stock and/or Common Stock, in separate
      tranches. Capitalized terms used in this Agreement that are not defined shall
      have the meanings assigned to such terms in the Subscription Agreement, which
      definitions are hereby incorporated by reference.

     

    In
      connection with consummation of the transactions contemplated by the
      Subscription Agreement, the parties desire to amend and restate the Original
      Agreement in its entirety to nominate (or cause or facilitate the nomination)
      for election as directors certain persons designated by each of Qualmax and
      P&S.

     

    The
      parties hereto deem it in their best interests and in the best interests of
      the
      Company to establish the composition of the Company’s board of directors (the
“Board”)
      and
      certain other arrangements as hereinafter provided.

     

    NOW,
      THEREFORE, in consideration of the premises and of the mutual covenants and
      agreements hereinafter set forth, the parties hereto hereby agree as
      follows:

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    1. Board
      of Directors.
      The
      parties hereto confirm that it is their intention that the business and affairs
      of the Company shall be managed by the Board. The authorized number of directors
      on the Board shall hereby be fixed at five (5). Effective upon the receipt
      of
      the requisite approval by the stockholders of the Company of an Amended and
      Restated Certificate of Incorporation of the Company which, among other things,
      establishes a staggered board of directors (the “Revised
      Charter”),
      and
      the filing by the Company of the Revised Charter with the Secretary of State
      of
      the State of Delaware (the “Filing”),
      the
      directors shall be divided into three classes, as nearly equal in number as
      possible, with the term of office of the first class (“Class
      I”)
      to
      expire at the 2007 annual meeting of stockholders, the term of office of the
      second class (“Class
      II”)
      to
      expire at the 2008 annual meeting of stockholders, and the term of office of
      the
      third class (“Class
      III”)
      to
      expire at the 2009 annual meeting of stockholders. At each annual meeting of
      stockholders following such initial classification and election, directors
      elected to succeed those directors whose terms expire shall be elected for
      a
      three-year term of office and until the election and qualification of their
      respective successors in office. Subject to the terms and provisions set forth
      herein, each Voting Stockholder shall vote or cause to be voted all shares
      of
      Voting Stock of the Company owned, beneficially or of record, by such party
      at
      any meeting of the Voting Stockholders of the Company at which directors are
      to
      be elected to the Board, or in any written consent executed in lieu of such
      a
      meeting of the Voting Stockholders, and shall take all other necessary or
      desirable action, in order to ensure that the Board is constituted as set forth
      in this Agreement. As used herein, the term “Voting
      Stock”
shall
      mean Common Stock, Preferred Stock, and any other capital stock of the Company
      which carries voting rights, and shall include any shares of Voting Stock now
      owned or subsequently acquired by a Voting Stockholder, however acquired,
      including, without limitation, stock splits and stock dividends. 

     

    2. Nominations
      of Directors.

     

    (a) Qualmax
      shall be entitled to designate two (2) individuals (the “Qualmax
      Nominees”)
      to
      serve as directors effective upon the Tranche A Closing, which Qualmax Nominees
      shall initially be M. David Kamrat and Noah Kamrat. Effective upon the Filing,
      one of the Qualmax Nominees shall serve as a Class II director and one shall
      serve as Class III
      director.
      Effective upon the Filing, Noah Kamrat shall be a Class II director and M.
      David
      Kamrat
      shall
      be
      a Class III director. Duy Tran shall resign as a director immediately following
      execution of this Agreement.

     

    (b) P&S
      shall be entitled to designate two (2) individuals (the “P&S
      Nominees”)
      to
      serve as directors effective upon the Tranche A Closing, which P&S
      Nominees
      shall initially be Jacob Schorr and
      a
      second P&S Nominee to be designated by P&S. Effective upon the Filing,
      one of the P&S
      Nominees
      shall serve as a Class II director and one shall serve as Class III director.
      Effective upon the Filing, the second P&S Nominee shall
      be
      a Class II director and Jacob Schorr shall be a Class III director. Until the
      second P&S Nominee is elected the second P&S Nominee’s board seat shall
      remain vacant.

     

    (c)  Qualmax
      and P&S shall
      jointly be entitled to designate one (1) individual (the “Joint
      Nominee”)
      to
      serve as a director effective upon the Tranche A Closing, which Joint Nominee
      shall be designated jointly by Qualmax and P&S. Effective upon the Filing,
      the Joint Nominee shall be a Class I director. Until the Joint Nominee is
      elected the Joint Nominee’s board seat shall remain vacant.

     

    

    
      
        
           

        

        
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    (d) Pursuant
      to Section
      3
      hereof,
      the Qualmax Nominees, the P&S
      Nominees
      and the Joint Nominee so designated shall be elected by the Voting Stockholders
      (provided that such nominees remain willing to serve) such that the Qualmax
      Nominees, the P&S
      Nominees
      and one Joint Nominee shall serve on the Board until the 2009 annual meeting
      of
      stockholders (and in the Classes specified herein upon the Filing).

     

    (e) If,
      prior
      to an individual’s election to the Board, any individual designated to serve as
      a director shall be unable or unwilling to serve as a director, the group who
      designated any such individual to serve as a director pursuant to the provisions
      of this Section
      2
      shall be
      entitled to designate a replacement in accordance with the provisions of this
      Section
      2
      who
      shall then be elected a director.

     

    (f) No
      Voting
      Stockholder, nor any affiliate of any such Voting Stockholder, shall have any
      liability as a result of designating a person for election as a director for
      any
      act or omission by such designated person in his or her capacity as a director
      of the Company, nor shall any Voting Stockholder have any liability as a result
      of voting for any such designee in accordance with the provisions of this
      Agreement.

     

    3. Covenant
      to Vote; No Conflicting Agreements. 

     

    (a) Each
      Voting Stockholder shall take all necessary or desirable action necessary to
      call, or to cause the Company and the appropriate officers and directors of
      the
      Company to call, a meeting of the Voting Stockholders of the Company and to
      vote
      or cause to be voted all shares of Voting Stock of the Company owned,
      beneficially or of record, by such party at any such meeting in favor of, or
      take all necessary or desirable action by written consent in lieu of any such
      meeting, to cause the election and re-election (provided they remain willing
      to
      serve) as members of the Board of those individuals designated in accordance
      with Section
      2
      of this
      Agreement. In addition, each Voting Stockholder agrees to vote or cause to
      be
      voted all shares of Voting Stock of the Company owned, beneficially or of
      record, by such party upon any other matter arising under this Agreement
      submitted to a vote of the Voting Stockholders of the Company in such a manner
      as to implement the terms of, or otherwise effect the intent of, this Agreement.
      The voting of Voting Stock pursuant to this Agreement may be effected in person,
      by proxy, by written consent, or in any other manner permitted by the laws
      of
      the State of Delaware.

     

    (b) No
      Voting
      Stockholder shall (i) enter into or agree to be bound by any voting trust,
      (ii)
      enter into any stockholder agreement or arrangement of any kind with any person
      or entity, or (iii) take any action, either alone or in concert with any other
      persons or entities, in each of the foregoing cases which would be inconsistent
      in any manner with the provisions of this Agreement. 

     

    

    
      
        
           

        

        
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    4. Removal.
      Notwithstanding anything to the contrary contained in the Company’s certificate
      of incorporation or by-laws (as the same may each be amended and/or restated
      from time to time), on all matters relating to the removal of directors of
      the
      Company, each Voting Stockholder shall vote or cause to be voted all shares
      of
      Voting Stock of the Company owned, beneficially or of record, by such party,
      to
      ensure that no director of the Company may be removed from the Board except
      (a)
      for cause, (b) with respect to the removal of any Qualmax Nominee designated
      pursuant to Section
      2(a)
      hereof,
      upon the prior vote or written consent of Qualmax, (c) with respect to the
      removal of any P&S
      Nominee
      designated pursuant to Section
      2(b)
      hereof,
      upon the prior vote or written consent of P&S, or (d) with respect to the
      removal of the Joint Nominee designated pursuant to Section
      2(c)
      hereof,
      upon the prior vote or written consent of Qualmax and P&S.

     

    Any
      vacancy created by the operation of this Section
      4
      shall be
      filled in accordance with Section
      5
      hereof.

     

    5. Vacancies.
      Notwithstanding anything to the contrary contained in the Company’s certificate
      of incorporation or by-laws (as the same may each be amended and/or restated
      from time to time), in the event that a vacancy is created on the Board at
      any
      time by the death, disability, retirement, resignation or removal of a director,
      the individual to fill such vacancy shall be nominated by the group entitled
      to
      fill such directorship in accordance with the provisions of Section
      2
      hereof.
      Each Voting Stockholder shall vote or cause to be voted all shares of Voting
      Stock of the Company owned, beneficially or of record, by such party at any
      meeting of the Voting Stockholders of the Company called for the purpose of
      filling such vacancy, or in any written consent executed in lieu of such a
      meeting of the Voting Stockholders, and shall take all other necessary or
      desirable actions, to ensure the election to the Board of the individual
      designated to fill such vacancy pursuant to this Section
      5.

     

    6. Board
      Observer.
      During
      the term hereof a designee of P&S, appointed by P&S in writing and
      identified by written notice to the Company, shall have the right to attend
      and
      observe, but not to vote at, all annual and special meetings of the
      Board.

     

    7. Representations
      and Warranties.
      Each
      Voting Stockholder represents and warrants to the other parties hereto,
      severally and not jointly, as to itself only, that:

     

    (a) such
      party has full power and capacity to execute, deliver and perform this
      Agreement, and this Agreement has been duly and validly authorized, executed
      and
      delivered by such party and constitutes a legal and binding obligation of such
      party, enforceable against such party in accordance with its terms;

     

    (b) such
      party has not, prior to the date of this Agreement, executed or delivered any
      proxy or entered into any voting agreement or similar arrangement relating
      to
      its or his Voting Stock (except for any such agreements among the parties
      hereto); and

     

    (c) the
      execution, delivery and performance by such party of this Agreement and the
      consummation by such party of the transactions contemplated hereunder will
      not,
      with or without the giving of notice or lapse of time, (i) violate any provision
      of law, statute, rule or regulation to which such party is subject, (ii) violate
      any order, judgement or decree applicable to

     

    

    
      
        
           

        

        
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    such
      party, or (iii) conflict with, or result in a breach or default under, any
      material term or condition of any material agreement or other material
      instrument to which such party is a party or by which such party is
      bound. 

     

    8. Stock
      Certificates. If
      so
      requested by the Company, the Voting Stockholders agree that each certificate
      representing shares of Voting Stock owned by the Voting Stockholders shall
      bear
      the following legend on the face or reverse side thereof:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO VOTING RESTRICTIONS
      PURSUANT TO A CERTAIN AMENDED AND RESTATED VOTING AGREEMENT BY AND AMONG NEW
      WORLD BRANDS, INC. (THE “COMPANY”), QUALMAX, INC., AND CERTAIN STOCKHOLDERS OF
      THE COMPANY, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES
      OF
      THE COMPANY AND MAY BE OBTAINED UPON WRITTEN REQUEST TO THE COMPANY.”

     

    9. Specific
      Performance. 
      Each
      party acknowledges and agrees that in the event of any breach of this Agreement,
      the non-breaching party or parties may be irreparably harmed and may not be
      made
      whole by monetary damages. The parties hereby agree that, in addition to and
      without prejudice to any other remedy to which they may be entitled at law
      or in
      equity, they shall be entitled to compel specific performance of this Agreement
      and injunctive and other equitable relief, and the parties hereto further agree
      to waive any requirement for the securing or posting of any bond in connection
      with the obtaining of any such injunctive or other equitable
      relief.

     

    10. Amendment. This
      Agreement may only be amended or modified with the written consent of each
      of
      the Voting Stockholders. 

     

    11. Subsequent
      Transferees.
      Except
      in the case of (a) a pro rata distribution of all of the Voting Stock held
      by
      Qualmax to the stockholders of Qualmax, whether by way of a downstream merger
      of
      Qualmax into New World or otherwise (a “Distribution”),
      which
      shall be governed by Section
      21
      hereof,
      and (b) sales of Voting Stock into the public marketplace (subject to the terms
      of that certain Lock-Up Agreement dated of even date herewith, as the same
      may
      be amended from time to time (the “Lock-Up
      Agreement”),
      each
      Voting Stockholder agrees that it shall cause each transferee of its Voting
      Stock of the Company to become a party hereto and to agree in writing to be
      bound by and to comply with all of the terms and provisions of this Agreement
      prior to any transfer of such Voting Stock. Notwithstanding anything contained
      in this Agreement to the contrary, nothing herein shall preclude the Voting
      Stockholders from selling their Voting Stock pursuant to Rule 144 or an
      effective registration statement.

     

    12. No
      Limitation on Other Voting Rights.
      Notwithstanding any provision of this Agreement or the Lock-Up Agreement to
      the
      contrary, nothing in this Agreement shall limit or restrict the Voting
      Stockholders from acting in their sole discretion on any matter other than
      those
      referred to in this Agreement.

     

    

    
      
        
           

        

        
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    13. Notice. 
      Unless
      otherwise specifically provided herein, all notices or other communications
      under this Agreement shall be effective only if in writing and delivered by
      hand, delivered by telecopier, or mailed by overnight courier
      service:

     

    (a) if
      to the
      Company or Qualmax, addressed to its principal executive offices at 340 West
      Fifth Avenue, Eugene, Oregon 97401, Attn: General Counsel, with a copy to Kramer
      Levin Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, New
      York 10036, Attn: Scott S. Rosenblum; and

     

    (b) if
      to
      P&S, TBTE or Oregon Spirit, addressed to 2019 SW 20th
      Street,
      Suite 108, Fort Lauderdale, Florida 33315, Attn: Selvin Passen, M.D., with
      a
      copy to Adelberg Rudow, Dorf & Hendler, LLC, 7
      Saint
      Paul Street, Suite 600, Baltimore,
      MD 21202, Attn: David
      B.
      Rudow, Esquire.

     

    Any
      notice or other communication shall be deemed to be given: (i) if delivered
      by
      hand, on the date of such delivery; (ii) if delivered by telecopier, when
      receipt is mechanically acknowledged; and if mailed by overnight courier, on
      the
      first business day following the date of such mailing. 

     

    14. Entire
      Agreement.
      This
      Agreement contains the entire agreement among the parties hereto with respect
      to
      the subject matter contained herein and supersedes all prior oral and written
      agreements and undertakings among the parties with respect to such subject
      matter.

     

    15. Governing
      Law; Jurisdiction. This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of Delaware, without regard to the principles of the conflict
      of laws thereof. Each party hereto consents and submits to the jurisdiction
      of
      any state or federal court sitting in Wilmington, Delaware in connection with
      any dispute arising out of or relating to this Agreement. Each party hereto
      waives any objection to the laying of venue in such courts and any claim that
      any such action has been brought in an inconvenient forum. To the extent
      permitted by law, any judgment in respect of a dispute arising out of or
      relating to this Agreement may be enforced in any other jurisdiction within
      or
      outside the United States by suit on the judgment, a certified copy of such
      judgment being conclusive evidence of the fact and amount of such judgment.
      Each
      party hereto agrees that personal service of process may be effected by any
      means permitted by law. 

     

    16. Successors
      and Assigns; Binding Effect.
      All of
      the terms and provisions of this Agreement shall be binding upon, shall inure
      to
      the benefit of, and shall be enforceable by the respective successors, assigns,
      heirs and legal representatives of the parties hereto. 

     

    17. Inspection.
      A copy
      of this Agreement shall be filed with the Secretary of the Company and shall
      be
      kept with the records of the Company. For so long as this Agreement shall be
      in
      effect, this Agreement shall be made available for inspection by any Voting
      Stockholder at the principal executive offices of the Company.

     

    18. Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning or interpretation of this
      Agreement.

     

    

    
      
        
           

        

        
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    19. Severability. If
      any
      provision of this Agreement shall be invalid, illegal or unenforceable in any
      jurisdiction, the validity, legality and enforceability of the remaining
      provisions, or of such provision in any other jurisdiction, shall not in any
      way
      be affected or impaired thereby.

     

    20. Facsimile;
      Counterparts.
      This
      Agreement may be executed by facsimile and in two or more counterparts, each
      of
      which shall be deemed an original and all of which taken together shall
      constitute one and the same instrument.

     

    21. Distribution. 

     

    (a) Notwithstanding
      anything to the contrary set forth herein, in the event of a Distribution:
      (i)
      each of the Kamrat Family members agrees that he, she or it shall become a
      party
      hereto as a Voting Stockholder and shall be bound by and shall comply with
      all
      of the terms and provisions of this Agreement, and shall, from and after the
      date of such Distribution, cause each transferee of his, her or its Voting
      Stock
      of the Company to become a party hereto and to agree in writing to be bound
      by
      and to comply with all of the terms and provisions of this Agreement prior
      to
      any transfer of such Voting Stock; and (ii) the right of Qualmax hereunder
      to
      designate the Qualmax Nominess shall be vested in, and based on, the unanimous
      agreement of D. Kamrat and N. Kamrat. For purposes of clarification, the
      distributees in a Distribution other than the Kamrat Family members shall not
      be
      required to become a party to this Agreement and shall not be bound by the
      terms
      and provisions of this Agreement. 

     

    (b) In
      furtherance of the foregoing, the Kamrat Family members represents and warrants
      to the other parties hereto that they currently collectively hold sixty-two
      percent (62%) of the outstanding common stock, par value $.001 per share, of
      Qualmax (“Qualmax
      Common Stock”).
      Each
      of the Kamrat Family members agrees that, prior to a Distribution, he, she
      or it
      shall not transfer any shares of its Qualmax Common Stock unless the transferee
      thereof shall agree in writing to become a party hereto subject to the same
      restrictions and obligations as the Kamrat Family members and to be bound by
      and
      to comply with this Section
      21
      prior to
      any transfer of such Qualmax Common Stock. 

     

    22. Termination. 

     

    (a) In
      the
      event that (i) the Tranche B-1 Closing Condition is satisfied and P&S fails
      to purchase the Tranche B-1 Shares at the Tranche B-1 Closing or (ii) the
      Tranche B-2 Closing Condition is satisfied and P&S fails to purchase the
      Tranche B-2 Shares, or the Aggregate Tranche B Shares, as applicable, at the
      Tranche B-2 Closing, the terms of this Agreement shall terminate and be of
      no
      further force and effect unless, not less than fifteen (15) days after receipt
      of written notice of failure to purchase from the Company, P&S has purchased
      the applicable Tranche B-1 or Tranche B-2 Shares. The Company’s rights under
      this Section 22(a) upon a failure by P&S to purchase as required by the
      Subscription Agreement are in addition to any other rights or remedies available
      to the Company, at law or at equity, all of which rights and remedies may be
      exercised cumulatively.

     

    

    
      
        
           

        

        
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    (b) In
      any
      event, the terms and provisions of this Agreement shall terminate and be of
      no
      further force and effect immediately following the election of directors at
      the
      2009 annual meeting of stockholders of the Company.

     

    (c) Notwithstanding
      the provisions of Sections
      22(a)
      and
(b),
      upon
      termination of this Agreement Section
      21
      hereof,
      which shall survive, and the parties hereto agree that the terms and provisions
      of this Agreement will be further amended and restated to reinstate the terms
      and provisions of the Original Agreement (subject to the survival of
Section
      21
      hereof,
      which provisions shall be deemed to replace and supersede the correlative
      provision in the Original Agreement), and such amendment and restated shall
      be
      deemed to occur automatically and without any further action, consent or
      approval on the party of any party hereto. 

     

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    IN
      WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Voting
      Agreement to be duly executed on the date first above written.

    

    COMPANY:

    

    NEW
      WORLD
      BRANDS, INC.

    

    By:_____________________________ 

    Name: M.
      David Kamrat

    Title: CEO

    

    VOTING
      STOCKHOLDERS: 

    

    QUALMAX,
      INC.

     

    By:_____________________________ 

    Name: M.
      David Kamrat

    Title: CEO

    

    P&S
      SPIRIT, LLC

    

    By:____________________________ 

    Name: Selvin
      Passen, M.D.

    Title: Manager

    

    SELVIN
      & SYLVIA PASSEN, TBTE

    

    By:____________________________

    Selvin
      Passen, M.D.

    

    By:____________________________

    Sylvia
      Passen

    

    OREGON
      SPIRIT, LLC

    

    By:___________________________ 

    Name: Selvin
      Passen, M.D.

    Title: Manager

     

    
 

    
      
        
           

        

        
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    Solely
      for purposes of Section
      21
      hereof:

    

    __________________________

    M.
      DAVID
      KAMRAT

    

    

    __________________________

    NOAH
      KAMRAT

    

    

    __________________________

    JANE
      KAMRAT

    

    

    __________________________

    TRACY
      HABECKER

    
 

     

     

     

     

    10Exhibit 10.5 Warrant

    
      

    

                                                                                            Exhibit
      10.5

     

     

    
      THIS
        WARRANT, THE SECURITIES REPRESENTED HEREBY AND ANY SECURITIES ACQUIRED UPON
        THE
        EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
        OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND
        NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
        ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH
        RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE
        STATE
        SECURITIES LAWS OR (2) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
        ACCEPTABLE TO THE COMPANY THAT AN APPLICABLE EXEMPTION FROM REGISTRATION
        THEREUNDER IS AVAILABLE.

       

      NEW
        WORLD BRANDS, INC.

      

      WARRANT
        TO PURCHASE SHARES OF SERIES A PREFERRED STOCK

       

      Dated
        December 29, 2006

       

      THIS
        WARRANT CERTIFIES THAT,
        for
        value received, P&S SPIRIT, LLC, a Nevada limited liability company, or its
        successors or assigns (hereinafter called the “Holder”)
        is
        entitled to purchase from New World Brands, Inc., a Delaware corporation
        (the
“Company”)
        during
        the Term (as defined below), the Warrant Shares (as defined below), at the
        Exercise Price (as defined below) payable in the manner specified herein.
        This
        Warrant is the Warrant referred to in the Subscription Agreement (as amended,
        modified or supplemented from time to time, the “Subscription
        Agreement”)
        dated
        of even date herewith between the Company and the Holder. The rights of the
        Holder with respect to this Warrant and the exercise of this Warrant shall
        be
        subject to the provisions, limitations and restrictions herein contained.
        

       

      1. DEFINITIONS.
        Capitalized terms used in this Warrant without definition or reference to
        another agreement shall have the meanings assigned to such terms in the
        Subscription Agreement. As used in this Warrant, the following terms shall
        have
        the meanings indicated herein and defined below:

       

      “Business
        Day”
means
        any
        day
        other than a Saturday, Sunday or any other day on which commercial banks
        in the
        State of Oregon are authorized by law to close

       

      “Exercise
        Price”
means
        $268,806.27 per share of Series A Preferred Stock.

       

      “Expiration
        Date”
means
        December 31, 2011, or, if such date is a Saturday, Sunday or legal holiday,
        the
        next succeeding Business Day.

       

      “Person”
means
        any
        individual, trustee, corporation, general partnership, limited partnership,
        limited liability company, joint stock company, trust, unincorporated
        organization, bank, business association, firm, joint venture, or governmental
        authority.

       

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      “Securities
        Act”
means
        the Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

      “Series
        A Preferred Stock”
means
        the shares of Series A Convertible Preferred Stock, par value $0.01 per share,
        of the Company.

       

      “Term”
means
        the period beginning on the Issue Date set forth above and ending on the
        Expiration Date at 5:00 p.m. (PST), on such date.

       

      “Warrant”
means
        this Warrant, as the same may be amended, modified or supplemented from time
        to
        time in accordance with the terms hereof.

       

      “Warrant
        Shares”
means
        9.300378
        shares
        of
        Series A Preferred Stock.

       

      “Warrant
        Rights”
means
        the rights of the Holder to purchase Warrant Shares upon exercise of this
        Warrant.

       

      
        	 	
                2.

              	
                EXERCISE
                  OF WARRANT.

              

      

       

      (a) Right
        to Exercise.
        At any
        time during the Term, the Holder may exercise this Warrant to purchase all,
        or
        any portion, of the Warrant Shares. If this Warrant has not been exercised
        by
        the Holder prior to the expiration of the Term, the Warrant Rights and this
        Warrant shall become void as of such time.

       

      (b) Procedure
        for Exercise of Warrant.
        To
        exercise this Warrant, the Holder shall deliver to the Company at its office
        referred to in Section
        6
        hereof,
        at any time during the Term, a notice of exercise in the form of the
        subscription form (the “Subscription
        Form”)
        attached hereto as Exhibit
        A,
        and the
        payment of an amount equal to the product of (x) the Exercise Price and (y)
        the
        number of Warrant Shares for which the Warrant is being exercised (the
“Aggregate
        Exercise Price”).
        Payment of the Aggregate Exercise Price shall be made in cash or by certified
        or
        official bank check payable to the order of the Company in the amount of
        the
        Aggregate Exercise Price. The Holder shall for all purposes be deemed to
        have
        become the holder of such Warrant Shares upon the exercise of the Warrant
        Rights
        pursuant hereto, irrespective of the date of delivery of any certificate,
        instrument or other documentation evidencing the purchase and issuance of
        the
        Warrant Shares.

       

      (c) Legends.
        The
        certificates evidencing any Warrant Shares issued upon exercise of this Warrant
        shall bear the following legend:

       

      THE
        SECURITIES REPRESENTED THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
        SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY
        BE
        OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A
        REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
        ACT AND ANY APPLICABLE

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      STATE
        SECURITIES LAWS OR (2) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
        ACCEPTABLE TO THE COMPANY THAT AN APPLICABLE EXEMPTION FROM REGISTRATION
        THEREUNDER IS AVAILABLE.

       

      
        	 	
                3.

              	
                Covenants
                  of the Company.

              

      

       

      (a) Warrant
        Shares.
        The
        Company covenants and agrees that the Company shall at all times reserve
        and
        keep available out of its authorized but unissued shares of Series A Preferred
        Stock, such shares of Series A Preferred Stock as shall be sufficient to
        provide
        for the exercise of the Warrant Rights represented by this Warrant.

       

      (b) Cancellation
        and Restriction of Warrants.
        The
        Company covenants and agrees that it will cancel all Warrants surrendered
        to it
        for the purpose of exercise, exchange, substitution or transfer, and no Warrant
        shall be issued in lieu thereof except as expressly permitted by the provisions
        of this Warrant. The Company further covenants and agrees that it shall cancel
        and retire any Warrant purchased or acquired by the Company otherwise than
        upon
        the exercise thereof.

       

      (c) Automatic
        Conversion of Series A Preferred Stock.
        The
        Company and the Holder covenant and agree that upon effectiveness of the
        automatic conversion (the “Conversion
        Date”)
        of the
        shares of Series A Preferred Stock issued to the Holder at the Tranche A
        Closing
        under the Subscription Agreement into shares of common stock, par value $0.01
        per share, of the Company (the “Common
        Stock”),
        the
        Holder shall promptly surrender this Warrant to the Company and this Warrant
        will be cancelled and retired, and the Company will thereafter promptly issue
        to
        the Holder a new Warrant, on terms substantially identical to the terms hereof;
        provided
        that (a)
        such warrant shall represent the right to purchase 27,777,778 shares of Common
        Stock; and (b) the Exercise Price of the such warrant shall be $0.09 per
        share
        of Common Stock. 

       

      
        	 	
                4.

              	
                OWNERSHIP.

              

      

       

      (a) Transfer
        of Warrants.
        This
        Warrant and the Warrant Rights, or any portion thereof, may not be sold,
        assigned, pledged, encumbered, disposed of or otherwise transferred (each,
        a
“Transfer”)
        by the
        Holder to any Person or Persons without the prior written consent of the
        Company
        and unless (1) a registration statement with respect thereto is in effect
        under
        the Securities Act and any applicable state securities laws or (2) the Company
        has received an opinion of counsel reasonably acceptable to the Company that
        an
        application exemption from registration thereunder is available. To be
        effective, any such Transfer shall be registered with the Company by submission
        to it of this Warrant, together with a notice of transfer in the form of
        attached hereto as Exhibit
        B
        (the
“Transfer
        Form”),
        duly
        completed and executed. Within ten (10) Business Days after the Company’s
        receipt of this Warrant, together with the Transfer Form so completed and
        executed, the Company will issue and deliver to the transferee a new Warrant
        having the same terms and provisions as this Warrant, which the Company will
        register in the new Holder’s name. Upon the due delivery of this Warrant for
        Transfer, the transferee shall be deemed for all purposes to have become
        the
        Holder of the new Warrant, effective immediately

       

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      

      prior
        to
        the close of business on the date of such delivery, irrespective of the date
        of
        actual delivery of such new Warrant.

       

      (b) Ownership
        of This Warrant.
        The
        Company may deem and treat the Person in whose name this Warrant is registered
        as the sole holder and owner hereof (notwithstanding any notations of ownership
        or writing hereon made by anyone other than the Company) for all purposes
        and
        shall not be affected by any notice to the contrary.

       

      (c) Loss
        and Replacement; Cancellation; Taxes and Other Amounts.
        Upon
        receipt by the Company of evidence reasonably satisfactory to it of the loss,
        theft or destruction of this Warrant, and upon surrender of this Warrant
        if
        mutilated, the Company will make and deliver a new Warrant of like tenor,
        in
        lieu of this Warrant. This Warrant shall be promptly canceled by the Company
        upon the surrender hereof in connection with any transfer, sale or other
        disposition or replacement of this Warrant. The Holder shall pay all taxes,
        reasonable expenses and other charges payable in connection with any transfer,
        sale or other disposition or replacement of this Warrant.

       

      5. Adjustment
        of Exercise Price and Number of Warrant Shares.
        The
        number Warrant Shares issuable upon exercise of this Warrant and the Exercise
        Price shall be subject to adjustment from time to time as follows:

       

      (a) Subdivisions,
        Combinations and Other Issuances.
        If the
        Company shall at any time after the date hereof and prior to the expiration
        of
        the Term subdivide the shares of Series A Preferred Stock, or any Common
        Stock
        into which the Series A Preferred Stock may be converted pursuant to Section
        3(c), or any other class of equity securities that may be acquired upon exercise
        of this Warrant, by split-up or otherwise, or combine such shares or interests,
        or issue additional shares or interests of any such class as a dividend with
        respect to any shares or interests of any such class, the number of shares
        of
        Series A Preferred Stock issuable on the exercise of this Warrant, or any
        Common
        Stock into which the Series A Preferred Stock may be converted pursuant to
        Section 3(c), shall forthwith be proportionately increased in the case of
        a
        stock split, subdivision or stock dividend, or proportionately decreased
        in the
        case of a combination. Appropriate adjustments shall also be made to the
        Exercise Price payable for the Warrant Shares, but the aggregate purchase
        price
        payable for the total number of Warrant Shares purchasable under this Warrant
        (as adjusted) shall remain the same. Any adjustment under this Section 5.1
        shall
        become effective at the close of business on the date the stock split,
        subdivision or combination becomes effective, or as of the record date of
        such
        split or dividend, or in the event that no record date is fixed, upon the
        making
        of such split or dividend.

       

      (b) Reorganization,
        Reclassification, Merger, Consolidation or Disposition of
        Assets.
        In case
        the Company shall reorganize its capital, reclassify its capital stock (other
        than as set forth in Section
        5.1),
        merge
        with or into or consolidate with another corporation or other entity (where
        the
        Company is not the surviving corporation or where there is a change in or
        distribution with respect to any class of equity securities of the Company),
        or
        sell, transfer or otherwise dispose of all or substantially all its property,
        assets or business to another corporation or other entity and, pursuant to
        the
        terms of such reorganization, reclassification, merger, consolidation or
        disposition of assets, equity securities of the successor or acquiring entity,
        or any cash, shares of stock or other securities or property of any nature
        whatsoever

       

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      (including
        warrants or other subscription or purchase rights) in addition to or in lieu
        of
        capital stock of the successor or acquiring entity (“Other
        Property”),
        to be
        received by or distributed to the holders of shares of Series A Preferred
        Stock,
        then the Holder shall have the right thereafter to receive, upon exercise
        of
        this Warrant, the number of equity interests of the successor or acquiring
        entity or of the Company, if it is the surviving corporation, and Other Property
        receivable upon or as a result of such reorganization, reclassification,
        merger,
        consolidation or disposition of assets by a Holder of the number of equity
        securities for which this Warrant is exercisable immediately prior to such
        event. In case of any such reorganization, reclassification, merger,
        consolidation or disposition of assets, the successor or acquiring entity
        (if
        other than the Company) and, if an entity different from the successor or
        acquiring entity, the entity whose equity securities or Other Property the
        holders of the equity securities are entitled to receive as a result of such
        transaction, shall expressly assume the due and punctual observance and
        performance of each and every covenant and condition of this Warrant to be
        performed and observed by the Company and all the obligations and liabilities
        hereunder, subject to such modifications as may be deemed appropriate (as
        determined in good faith by resolution of the board of directors of the Company)
        in order to provide for adjustments of Warrant Shares for which this Warrant
        is
        exercisable which shall be as nearly equivalent as practicable to the
        adjustments provided for in this Section 5.2.
        For
        purposes of this Section 5.2,
“equity
        securities of the successor or acquiring entity” shall include capital stock or
        equity securities of such entity of any class which is not preferred as to
        dividends or assets over any other class of capital stock or equity securities
        of such entity and which is not subject to redemption and shall also include
        any
        evidences of indebtedness, shares of capital stock or other securities which
        are
        convertible into or exchangeable for any such capital stock, either immediately
        or upon the arrival of a specified date or the happening of a specified event
        and any warrants or other rights to subscribe for or purchase any such capital
        stock. The foregoing provisions of this Section 5.2
        shall
        similarly apply to successive reorganizations, reclassifications, mergers,
        consolidations or disposition of assets.

       

      (c) Notice
        of Adjustment.
        When
        any adjustment is required to be made in the number or kind of shares or
        interests purchasable upon exercise of the Warrant, or in the Exercise Price,
        the Company shall promptly notify in writing the Holder of such
        event.

       

      6.
         Registration
        Rights.
        

      

      (a) If
        at any
        time after the date hereof and up to the earlier of (i) such time as the
        Holder
        may sell all of the Warrant Shares pursuant to Rule 144 under the Securities
        Act
        without limitation as to volume, (ii) two years following the date hereof
        and
        (iii) the Company registering the Covered Shares (as defined below) for resale
        under the Securities Exchange Act of 1934, the Company proposes to register
        for
        sale any equity securities under the Act, it will at such time give written
        notice to the Holder of its intention to do so. Upon written request of the
        Holder hereof, given within 15 days after the giving of any such notice by
        the
        Company, the Company will use its reasonable efforts to cause the Series
        A
        Preferred Stock or Common Stock issued pursuant to the exercise hereof (the
        "Covered Shares") for which registration is requested to be promptly registered
        under the Act as a part of the offering being made under the same registration
        statement proposed to be filed by the Company; provided,
        however,
        if the
        offering to which the proposed registration statement relates is to be
        distributed by or through an underwriter approved by the Company, the Holder
        hereof may at its option agree to sell its

       

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Covered
        Shares through such underwriter on the same terms and conditions as the
        underwriter agrees to sell the other securities proposed to be registered,
        and
provided
        further,
        that,
        if such underwriter determines that the inclusion of all such Covered Shares
        for
        which registration is requested would have an adverse effect on the offering,
        then the size of the offering shall be reduced accordingly, and the Holder
        shall
        be entitled hereunder to participate in the underwriting and register the
        Covered Shares on a pro rata basis with the Company and any other parties
        participating in such offering, or in such other quantity as may be permitted
        by
        the underwriter. 

      

      (b) The
        Company shall prepare and promptly file with the Securities and Exchange
        Commission (the "Commission") all amendments, post-effective amendments and
        supplements to a registration statement (and the prospectus used in connection
        therewith) as may be necessary under the Act and the regulations of the
        Commission to permit the sale of the Covered Shares to the public. 

      

      (c) In
        the
        event of the participation of the Holder in a registration as set forth in
        Section 5(a) above, the Holder shall promptly furnish to the Company such
        information as the Company may reasonably request and as shall be required
        in
        connection with the registration and related proceedings, and shall represent
        to
        the accuracy of such information. In addition, the Holder agrees to enter
        into
        any customary documents or other agreements with the Company or the underwriters
        in connection with the registration and related proceedings, to contain such
        representations and warranties and such other terms as are customarily contained
        in such agreements (including, without limitation, customary indemnification
        provisions), provided
        that the
        Holder shall not be required to make any representations, warranties or
        agreements other than representations, warranties or agreements regarding
        the
        Holder, the Holder’s intended method of distribution, and any other
        representations, warranties or agreements required by law. 

       

      7. Notices.
        All
        notices, consents, waivers, and other communications under this Warrant must
        be
        in writing and will be deemed to have been duly given when (a) delivered
        by hand
        (with written confirmation of receipt), (b) sent by fax (with written
        confirmation of receipt), or (c) when received by the addressee, if sent
        by a
        nationally recognized overnight delivery service (receipt requested), in
        each
        case to the appropriate addresses or fax numbers specified below (or to such
        other address, attention or fax number as each of the Company or the Holder
        may
        designate by notice to the other given in accordance with this Section
        6):

       

      (a) if
        to the
        Company, addressed to its principal executive offices at 340 West Fifth Avenue,
        Eugene, Oregon 97401, Attn: General Counsel, with a copy to Kramer Levin
        Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, New York
        10036, Attn: Scott S. Rosenblum, Fax No. (212) 715-8000; and

       

      (b) if
        to the
        Holder, addressed to 2019 SW 20th
        Street,
        Suite 108, Fort Lauderdale, Florida 33315, Attn: Selvin Passen, M.D., with
        a
        copy to Adelberg Rudow, Dorf & Hendler, LLC, 7
        Saint
        Paul Street, Suite 600, Baltimore,
        MD 21202, Attn: David
        B.
        Rudow, Esquire, Fax No. (410) 539-5834.

       

      8. No
        Rights as a Stockholder; Limitation of Liability.
        Unless
        and until exercised and except as otherwise provided herein, nothing contained
        in this Warrant shall be construed as conferring
        upon the Holder the right to vote or to receive distributions or to consent
        or
        to receive

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      notice
        as
        a stockholder in respect of any meeting of stockholders of the Company for
        any
        matter, or any rights whatsoever as a stockholder of the Company. No provision
        hereof, in the absence of affirmative action by the Holder to purchase the
        Warrant Shares, and no mere enumeration herein of the rights or privileges
        of
        the Holder, shall give rise to any liability of the Holder for the Exercise
        Price hereunder or as a stockholders of the Company, whether such liability
        is
        asserted by the Company, its equity holders or by creditors of the
        Company.

       

      9. Entire
        Agreement; Amendments.
        This
        Warrant, together with the Subscription Agreement and the other Ancillary
        Agreements executed in connection with the Subscription Agreement, together
        with
        any Exhibits attached hereto, sets forth the entire understanding of the
        Company
        and the Holder with respect to the subject matter hereof, supersedes all
        existing agreements, whether oral or written, and may be modified only by
        a
        written instrument duly executed by the Company and the Holder. 

       

      10. Assignments;
        Successors; No Third Party Rights.
        The
        Company may not assign or transfer (other than by operation of law) any of
        its
        rights or obligations under this Warrant without the prior written consent
        of
        the Holder. The Holder may assign or Transfer this Warrant or its rights
        and
        obligations hereunder only in accordance with Section
        4.1(a)
        hereof.
        Subject to the two preceding sentences, this Warrant will apply to, be binding
        in all respects upon, and inure to the benefit of the successors, heirs,
        personal representatives, executors and permitted assigns of the Company
        or the
        Holder, as applicable. Nothing expressed or referred to in this Warrant will
        be
        construed to give any Person other than the Company or the Holder any legal
        or
        equitable right, remedy or claim under or with respect to this Warrant or
        any
        provision of this Warrant.

       

      11. Governing
        Law.
        This
        Warrant, and any disputes arising hereunder or relating to the transactions
        contemplated hereby, shall be governed, including as to validity, interpretation
        and effect, by the internal laws of the State of Delaware, without regard
        to the
        principles of conflict of laws. 

       

      12. Failure
        or Indulgence Not Waiver; Remedies Cumulative.
        No
        failure or delay on the part of the Company or any Holder in the exercise
        of any
        right hereunder shall impair such right or be construed to be a waiver of,
        or
        acquiescence in, any breach of any representation, warranty, covenant or
        agreement herein, nor shall any single or partial exercise of any such right
        preclude other or further exercise thereof or of any other right. All rights
        and
        remedies existing under this Warrant are cumulative to, and are exclusive
        of,
        any rights or remedies otherwise available, whether by contract, at law,
        in
        equity or otherwise.

       

      13. Severability.
        It is
        expressly understood and agreed that although the Company and the Holder
        consider the restrictions contained in this Warrant to be reasonable and
        necessary for the purpose of, among other things, preserving the goodwill,
        proprietary rights and going concern value of the Company, if any provision
        of
        this Warrant or the application of any such provision to the Company, the
        Holder
        or any circumstance shall be determined by either any court of competent
        jurisdiction to be invalid or unenforceable to any extent, the remainder
        of this
        Warrant, or the application of such provision to the Company or the Holder
        or
        circumstance other than those to which it is so determined to be invalid
        or
        unenforceable, shall not be affected thereby,
        and each provision hereof shall be enforced to the fullest extent permitted
        by
        law. If the

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      final
        judgment of a court of competent jurisdiction declares that any term or
        provision hereof is invalid or unenforceable, the Company and the Holder
        hereto
        agree that the court making the determination of invalidity or unenforceability
        shall have the power to reduce the scope, duration or area of the term or
        provision, or to delete specific words or phrases, and to replace any invalid
        or
        unenforceable term or provision with a term or provision that is valid and
        enforceable and that comes closest to expressing the intention of the invalid
        or
        unenforceable term or provision, and this Warrant shall be enforceable as
        so
        modified. 

       

      14. Certain
        Interpretive Matters.

       

      (a) Unless
        the context otherwise requires, (i) “or” is disjunctive but not necessarily
        exclusive, (ii) words in the singular include the plural and vice versa,
        and
        (iii) the use in this Warrant of a pronoun in reference to the Company or
        the
        Holder includes the masculine, feminine or neuter, as the context may
        require.

       

      (b) No
        provision of this Warrant will be interpreted in favor of, or against, either
        of
        the Company or the Holder by reason of the extent to which either the Company
        or
        the Holder or their respective counsel participated in the drafting thereof
        or
        by reason of the extent to which any such provision is inconsistent with
        any
        prior draft hereof and no rule of strict construction will be applied against
        either the Company or the Holder.

       

      15. Waiver
        of Jury Trial.
        THE
        COMPANY AND THE HOLDER EACH IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE
        FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
        SUIT
        OR PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT, THE WARRANT PURCHASE
        AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, INCLUDING
        WITHOUT
        LIMITATION, ANY COUNTERACTION OR COUNTERCLAIM, WHETHER IN CONTRACT, STATUTE,
        TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE) OR OTHERWISE.

       

      16. Further
        Assurances.
        Each of
        the Company and the Holder shall execute and deliver such documents, instruments
        and agreements and take such further actions as may be reasonably required
        or
        desirable to carry out the provisions of this Warrant (to the extent provided
        for herein) and
        the
        transactions contemplated hereby, and the Company and the Holder shall cooperate
        with each other in connection with the foregoing.

       

      17. Specific
        Performance.
        The
        Company acknowledges that irreparable damage would occur to the Holder in
        the
        event that any of the provisions of this Warrant were not performed by the
        Company in accordance with their specific terms or were otherwise breached
        by
        the Company, and that money damages would not provide an adequate remedy
        to the
        Holder. It is accordingly agreed that the Holder shall be entitled to an
        injunction and other equitable remedies to prevent breaches by the Company
        of
        this Warrant and to enforce specifically the terms and provisions hereof
        in any
        court of the United States or any state thereof or any other court having
        jurisdiction, this being in addition to any other remedy to which the Holder
        may
        be entitled at law or in equity or otherwise.

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      18. Benefits
        of this Warrant.
        Nothing
        in this Warrant shall be construed to give to any Person, other than the
        Company
        and the Holder, any legal or equitable right, remedy or claim under this
        Warrant.

       

      19. Captions.
        The
        captions used herein are included for convenience of reference only and shall
        be
        ignored in the construction or interpretation hereof.

       

      20. Counterparts.
        This
        Warrant may be executed in any number of counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument.

       

      21. Certain
        Costs and Expenses.
        Except
        as otherwise set forth in this Warrant or any other written agreement between
        the Company and the Holder, all fees and expenses incurred in connection
        with
        the negotiation, preparation, execution, exercise and performance of this
        Warrant (including, without limitation, fees and expenses of legal counsel,
        accountants and other professionals) shall be paid by the Person incurring
        such
        fees or expenses. The Company shall bear any and all taxes, duties or
        assessments associated with the issuance of this Warrant and/or issuance
        of the
        Warrant Shares upon exercise of this Warrant.

       

      [Signature
        page follows]

       

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by its duly authorized officer
        as
        of the Issue Date.

       

      

       

      

       

      NEW
        WORLD BRANDS, INC.

       

      

      By:  __________________________

      Name: __________________________

      Title:  __________________________

      

       

       

       

      

       

      

       

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

      

      EXHIBIT
        A

       

      

       

      

       

      SUBSCRIPTION
        FORM

       

      

       

      (To
        be
        executed if Holder desires to exercise its

       

      Warrant
        Rights with respect to the Warrant)

       

      
        	
                To:

              	
                New
                  World Brands, Inc. (the “Company”)

              

      

             
        Attn: Chief Financial Officer

      

      Reference
        is hereby made to the Warrant dated December 29, 2006 (as amended, modified
        or
        supplemented from time to time, the “Warrant”)
        issued
        by the Company to the undersigned. Capitalized terms used herein and not
        defined
        have the meanings assigned to such terms in the Warrant. The undersigned
        hereby
        irrevocably elects to exercise its Warrant Rights in respect of the Warrant
        to
        purchase the number of Warrant Shares set forth below. 

       

      
        	
                1.

              	
                The
                  undersigned hereby elects to purchase the Warrant Shares set forth
                  below
                  and tenders herewith payment of the Aggregate Exercise Price for
                  such
                  Warrant Shares in full.

              

      

      

      
        	
                2.

              	
                In
                  exercising this Warrant, the undersigned hereby confirms and acknowledges
                  that the Warrant Shares set forth below are being acquired solely
                  for the
                  account of the undersigned for investment and not as a nominee
                  for any
                  other party, and that the undersigned will not offer, sell, assign,
                  transfer, pledge, hypothecate, or otherwise dispose of any such
                  shares of
                  Series A Preferred Stock except under circumstances that will not
                  result
                  in a violation of the Securities Act or any state securities
                  laws

              

      

       

      
        	
                3.

              	
                Please
                  issue a certificate or certificates representing the following
                  number of
                  Warrant Shares in the name of the undersigned or in such other
                  name as is
                  specified below:

              

      

       

      Warrant
        Shares: ___________________

      

      Name:   ___________________

      

      

      

      P&S
        SPIRIT, LLC

      

      By:  __________________________

      Name: __________________________

      Title:  __________________________

      

       

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

      

      EXHIBIT
        B

       

      

       

      TRANSFER
        FORM

       

      For
        value
        received, the undersigned Holder of the within Warrant hereby sells, assigns
        and
        transfers unto the transferee whose name and address are set forth below
        all of
        the right, title and interest of the undersigned in, to and under the within
        Warrant.

       

      

       

      Name
        of
        Transferee:______________________________________________________________________

       

      

       

      State
        of
        Organization (if
        applicable):__________________________________________________________

       

      

       

      Federal
        Tax Identification or Social Security
        Number:_____________________________________________

       

      

       

      Address:______________________________________________________________________________

      

       

      Dated:______________   

       

      [HOLDER]

      

      

      

      By:____________________________ 

      Name:

      Title:

      

      

      (Note:
        The above signature must correspond with the name as written upon the face
        of
        the Warrant in all respects without any alteration or change whatsoever.)

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