Document:

Form of Note for the Company's Floating Rate Notes

 EXHIBIT 4.01 

FORM OF NOTE FOR THE COMPANY’S FLOATING 

RATE NOTE DUE JULY 30, 2018 
 This
Note is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository named below or a nominee of the Depository. This Note is not exchangeable for Notes registered in the name of a
Person other than the Depository or its nominee except in the limited circumstances described herein and in the Indenture, and no transfer of this Note (other than a transfer of this Note as a whole by the Depository to a nominee of the Depository
or by a nominee of the Depository to the Depository or another nominee of the Depository) may be registered except in the limited circumstances described herein. 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (the
“Depository”), to the Company or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of the Depository (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of the Depository), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
 CITIGROUP INC. 

Floating Rate Notes due July 30, 2018 
  

			
	 REGISTERED
	  	REGISTERED
		
		  	CUSIP: 172967JV4
		  	ISIN: US172967JV44
		  	Common Code: 126888678
		
	 No. R-[    ]
	  	$225,000,000

 CITIGROUP INC., a Delaware corporation (the “Company”, which term includes any successor Person
under the Indenture), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of $225,000,000 on July 30, 2018 and to pay interest thereon from and including July 30, 2015 or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly, on the thirtieth day of each January, April, July and October, commencing October 30, 2015, at the rate per annum for each Interest Period of
three-month LIBOR, determined as provided herein, plus 0.8800% until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the Person in whose name this Note is registered at the close of business on the Record Date for such interest, which shall be the Business Day immediately preceding such Interest Payment Date. 

Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the holder on such Record Date and may
either be paid to the Person in whose name this Note is registered at the close of business on a subsequent Record Date, such subsequent Record Date to be not less than ten days prior to the date of payment of such defaulted interest, notice whereof
shall be given to holders of Notes of this series not less than ten days prior to such subsequent Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of
this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

 Interest hereon will be calculated on the basis of the actual number of days elapsed in an
Interest Period and a 360-day year. Dollar amounts resulting from such calculation will be rounded to the nearest cent, with one-half cent being rounded upward. An “Interest Period” shall be the period from and including an Interest
Payment Date (or from July 30, 2015 in the case of the first Interest Payment Date) to and including the day immediately preceding the next Interest Payment Date. 

If an Interest Payment Date falls on a day that is not a Business Day, such Interest Payment Date will be the next succeeding Business Day. If
the Maturity of the Notes falls on a day that is not a Business Day, the payment due on Maturity will be postponed to the next succeeding Business Day, and no further interest will accrue in respect of such postponement. If a date for payment of
interest or principal on the Notes falls on a day that is not a business day in the place of payment, such payment will be made on the next succeeding business day in such place of payment as if made on the date the payment was due. No interest will
accrue on any amounts payable for the period from and after the due date for payment of such principal or interest. 
 For these purposes,
“Business Day” means any day which is a day on which commercial banks settle payments and are open for general business in The City of New York. 

Payment of the principal of and interest on this Note will be made at the office or agency of the Trustee maintained for that purpose in The
City of New York. 
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee or by an authenticating agent on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: October 9, 2015 
  

			
	 CITIGROUP INC.

		
	 By:
	 	  

		 	 Title:

  

			
	ATTEST:
		
	By:	 	  

		 	Title: Assistant Secretary

  
 3 

 This is one of the Notes of the series issued under the within-mentioned Indenture. 

Dated: October 9, 2015 
  

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	  

		 	Name:
		 	Title:
	
	-or-
	
	 CITIBANK, N.A.,
 as Authenticating
Agent

		
	By:	 	  

		 	Name:
		 	Title:

  
 4 

 This Note is one of a duly authorized issue of Securities of the Company (the “Notes”),
issued and to be issued in one or more series under the Indenture, dated as of November 13, 2013 (as amended and supplemented from time to time, the “Indenture”), between the Company and The Bank of New York Mellon, as Trustee (the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, initially issued in
the aggregate principal t amount of $500,000,000 and increased to $725,000,000. 
 This Note will bear interest for each Interest Period at
a rate determined by Citibank, N.A., acting as Calculation Agent. The interest rate on this Note for a particular Interest Period will be a per annum rate equal to three-month LIBOR as determined on the related Interest Determination Date, plus
0.8800% The Interest Determination Date for an Interest Period will be the second London business day preceding such Interest Period. The Interest Determination Date for the first Interest Period was July 28, 2015. Promptly upon determination,
the Calculation Agent will inform the Trustee and the Company of the interest rate for the next Interest Period. Absent manifest error, the determination of the interest rate by the Calculation Agent shall be binding and conclusive on the holders of
Notes, the Trustee and the Company. 
 A London business day is a day on which dealings in deposits in U.S. dollars are transacted in the
London interbank market. 
 On any Interest Determination Date, LIBOR will be equal to the offered rate for deposits in U.S. dollars having
an index maturity of three months for the next Interest Period, in amounts of at least $1,000,000, as such rate appears on Reuters Screen LIBOR01 at approximately 11:00 a.m., London time, on such Interest Determination Date. If the Reuters Screen
LIBOR01 is replaced by another service or ceases to exist, the Calculation Agent will use the replacing service or such other service that is selected to display the London interbank offered rates for U.S. dollar deposits. 

If no offered rate appears on Reuters Screen LIBOR01 on an Interest Determination Date at approximately 11:00 a.m., London time, then the
Calculation Agent (after consultation with the Company) will select four major banks in the London interbank market and shall request each of their principal London offices to provide a quotation of the rate at which three-month deposits in U.S.
dollars in amounts of at least $1,000,000 are offered by it to prime banks in the London interbank market, on that date and at that time, that is representative of single transactions at that time. If at least two quotations are provided, LIBOR will
be the arithmetic average of the quotations provided. Otherwise, the Calculation Agent will select three major banks in New York City and shall request each of them to provide a quotation of the rate offered by them at approximately 11:00 a.m., New
York City time, on the Interest Determination Date for loans in U.S. dollars to leading European banks having an index maturity of three months for the applicable Interest Period in an amount of at least $1,000,000 that is representative of single

  
 5 

 
transactions at that time. If three quotations are provided, LIBOR will be the arithmetic average of the quotations provided. Otherwise, the rate of LIBOR for the next Interest Period will be set
equal to the rate of LIBOR for the current Interest Period. 
 Upon request from any Noteholder, the Calculation Agent will provide the
interest rate in effect on this Note for the current Interest Period and, if it has been determined, the interest rate to be in effect for the next Interest Period. 

If an event of default (as defined in the Indenture) with respect to Notes of this series shall occur and be continuing, the principal of the
Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 Sections 12.02 and
12.03 of the Indenture containing provisions for defeasance apply to this Note. At any time the entire indebtedness of this Note may be defeased upon compliance by the Company with certain conditions set forth in Section 12.04 of the Indenture.

 The Indenture contains provisions permitting the Company and the Trustee, without the consent of the holders of the Securities, to
establish, among other things, the form and terms of any series of Securities issuable thereunder by one or more supplemental indentures, and, with the consent of the holders of a majority in aggregate principal amount of Securities at the time
outstanding which are affected thereby, to modify the Indenture or any supplemental indenture or the rights of the holders of Securities of such series to be affected, provided that no such modification will (i) extend the fixed maturity of any
Securities, reduce the rate or extend the time of payment of interest thereon, reduce the principal amount thereof or the premium, if any, thereon, reduce the amount of the principal of Original Issue Discount Securities payable on any date, change
the currency in which Securities are payable, or impair the right to institute suit for the enforcement of any such payment on or after the maturity thereof, without the consent of the holder of each Security so affected, or (ii) reduce the
aforesaid percentage of Securities of any series the consent of the holders of which is required for any such modification without the consent of the holders of all Securities of such series then outstanding, or (iii) modify the rights, duties
or immunities of the Trustee unless the Trustee agrees to such modification. 
 No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 This Note is a Global Security registered in the name of a nominee of the Depository. This Note is exchangeable for Notes registered in
the name of a person other than the Depository or its nominee only in the limited circumstances hereinafter described. Unless and until it is exchanged in whole or in part for definitive Notes in certificated form, this Note may not be transferred
except as a whole by the Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of the Depository. 

  
 6 

 The Notes represented by this Global Security are exchangeable for definitive Notes in
certificated form of like tenor as such Notes in denominations of $1,000 and whole multiples of $1,000 in excess thereof only if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for the Notes and
the Company is unable to appoint a successor depository or (ii) the Depository ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, or (iii) the Company in its sole discretion decides to allow
the Notes to be exchanged for definitive Notes in registered form. Any Notes that are exchangeable pursuant to the preceding sentence are exchangeable for certificated Notes issuable in authorized denominations and registered in such names as the
Depository shall direct. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of definitive Notes in certificated form is registrable in the register maintained by the Company in The City of New York for
such purpose, upon surrender of the definitive Note for registration of transfer at the office or agency of the registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the registrar
duly executed by, the holder thereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. Subject to the foregoing, this Note is not exchangeable, except for a Global Security or Global Securities of this issue of the same principal amount to be registered in the name of the Depository or its
nominee. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 The Company will pay additional amounts
(“Additional Amounts”) to the beneficial owner of any Note that is a non-United States person in order to ensure that every net payment on such Note will not be less, due to payment of U.S.
withholding tax, than the amount then due and payable. For this purpose, a “net payment” on a Note means a payment by the Company or a paying agent, including payment of principal and interest, after deduction for any present or future
tax, assessment or other governmental charge of the United States. These Additional Amounts will constitute additional interest on the Note. 

The Company will not be required to pay Additional Amounts, however, in any of the circumstances described in items (1) through
(14) below. 
  

	 	(1)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  
 7 

	 	(a)	having a relationship with the United States as a citizen, resident or otherwise; 

  

	 	(b)	having had such a relationship in the past or 

  

	 	(c)	being considered as having had such a relationship. 

  

	 	(2)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner:

  

	 	(a)	being treated as present in or engaged in a trade or business in the United States; 

  

	 	(b)	being treated as having been present in or engaged in a trade or business in the United States in the past or 

  

	 	(c)	having or having had a permanent establishment in the United States. 

  

	 	(3)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld in whole or in part by reason of the beneficial owner
being or having been any of the following (as such terms are defined in the Internal Revenue Code of 1986, as amended): 

  

	 	(a)	personal holding company; 

  

	 	(b)	foreign private foundation or other foreign tax-exempt organization; 

  

	 	(c)	passive foreign investment company; 

  

	 	(d)	controlled foreign corporation or 

  

	 	(e)	corporation which has accumulated earnings to avoid United States federal income tax. 

  

	 	(4)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner owning or
having owned, actually or constructively, 10 percent or more of the total combined voting power of all classes of stock of the Company entitled to vote or by reason of the beneficial owner being a bank that has invested in a Note as an extension of
credit in the ordinary course of its trade or business. 

 For purposes of items (1) through (4) above, “beneficial owner”
means a fiduciary, settlor, beneficiary, member or shareholder of the holder if the holder is an estate, trust, partnership, limited liability company, corporation or other entity, or a person holding a power over an estate or trust administered by
a fiduciary holder. 
  

	 	(5)	Additional Amounts will not be payable to any beneficial owner of a Note that is a: 

  

	 	(a)	fiduciary; 

  

	 	(b)	partnership; 

  
 8 

	 	(c)	limited liability company or 

  

	 	(d)	other fiscally transparent entity 

 or that is not the sole beneficial owner of the Note, or any
portion of the Note. However, this exception to the obligation to pay Additional Amounts will only apply to the extent that a beneficiary or settlor in relation to the fiduciary, or a beneficial owner or member of the partnership, limited liability
company or other fiscally transparent entity, would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment. 

 

	 	(6)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the failure of the beneficial
owner or any other person to comply with applicable certification, identification, documentation or other information reporting requirements. This exception to the obligation to pay Additional Amounts will only apply if compliance with such
reporting requirements is required by statute or regulation of the United States or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge.

  

	 	(7)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is collected or imposed by any method other than by withholding from a
payment on a Note by the Company or a paying agent. 

  

	 	(8)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of a change in law, regulation, or
administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(9)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is imposed or withheld by reason of the presentation by the beneficial owner
of a Note for payment more than 30 days after the date on which such payment becomes due or is duly provided for, whichever occurs later. 

  

	 	(10)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any: 

  

	 	(a)	estate tax; 

  

	 	(b)	inheritance tax; 

  

	 	(c)	gift tax; 

  

	 	(d)	sales tax; 

  
 9 

	 	(e)	excise tax; 

  

	 	(f)	transfer tax; 

  

	 	(g)	wealth tax; 

  

	 	(h)	personal property tax or 

  

	 	(i)	any similar tax, assessment, withholding, deduction or other governmental charge. 

  

	 	(11)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment, or other governmental charge required to be withheld by any paying agent from a payment of principal or
interest on a Note if such payment can be made without such withholding by any other paying agent. 

  

	 	(12)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any tax, assessment or other governmental charge that is required to be made pursuant to any European Union directive on the
taxation of savings income or any law implementing or complying with, or introduced to conform to, any such directive. 

  

	 	(13)	Additional amounts will not be payable if a payment on a Note is reduced as a result of any withholding, deduction, tax, duty assessment or other governmental charge that would not have been imposed but for a failure by
the holder or beneficial owner of a Note (or any financial institution through which the holder or beneficial owner holds the Note or through which payment on the Note is made) to take any action (including entering into an agreement with the
Internal Revenue Service, or a governmental authority of another jurisdiction if the holder is entitled to the benefits of an intergovernmental agreement between that jurisdiction and the United States) or to comply with any applicable
certification, documentation, information or other reporting requirement or agreement concerning accounts maintained by the holder or beneficial owner (or any such financial institution), or concerning ownership of the holder or beneficial owner, or
any substantially similar requirement or agreement. 

  

	 	(14)	Additional Amounts will not be payable if a payment on a Note is reduced as a result of any combination of items (1) through (13) above. 

Except as specifically provided herein, the Company will not be required to make any payment of any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of such government. 
 As used in this Note, “United
States person” means: 
  

	 	(a)	any individual who is a citizen or resident of the United States; 

  

	 	(b)	any corporation, partnership or other entity created or organized in or under the laws of the United States; 

  
 10 

	 	(c)	any estate if the income of such estate falls within the federal income tax jurisdiction of the United States regardless of the source of such income and 

 

	 	(d)	any trust if (i) a United States court is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all of the substantial decisions of the
trust or (ii) it has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. 

Additionally, “non-United States person” means a person who is not a United States person,
and “United States” means the states of the United States of America and the District of Columbia, but excluding its territories and its possessions. 

Except as provided below, the Notes may not be redeemed prior to maturity. 

 

	 	(1)	The Company may, at its option, redeem the Notes if: 

  

	 	(a)	the Company becomes or will become obligated to pay Additional Amounts as described above; 

  

	 	(b)	the obligation to pay Additional Amounts arises as a result of any change in the laws, regulations or rulings of the United States, or an official position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on or after July 23, 2015 and 

  

	 	(c)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company. 

  

	 	(2)	The Company may also redeem the Notes, at its option, if: 

  

	 	(a)	any act is taken by a taxing authority of the United States on or after July 23, 2015, whether or not such act is taken in relation to the Company or any affiliate, that results in a substantial probability that
the Company will or may be required to pay Additional Amounts as described above; 

  

	 	(b)	the Company determines, in its business judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of reasonable measures available to it, other than substituting the obligor under the
Notes or taking any action that would entail a material cost to the Company and 

  

	 	(c)	the Company receives an opinion of independent counsel to the effect that an act taken by a taxing authority of the United States results in a substantial probability that the Company will or may be required to pay the
Additional Amounts described above, and delivers to the Trustee a certificate, signed by a duly authorized officer, stating that based on such opinion the Company is entitled to redeem the Notes pursuant to their terms. 

  
 11 

 Any redemption of the Notes as set forth in clauses (1) or (2) above shall be in whole, and not in
part, and will be made at a redemption price equal to 100% of the principal amount of the Notes Outstanding plus accrued interest thereon to the date of redemption. Holders shall be given not less than 30 days’ nor more than 60 days’ prior
notice by the Trustee of the date fixed for such redemption. 
 All terms used in this Note which are defined in the Indenture shall have
the meanings assigned to them in the Indenture. The Notes are governed by the laws of the State of New York. 

  
 12 

 Schedule 1 

Redemptions and Amount of Securities 
  

							
	 Date of partial

redemption
	 	
Aggregate principal amount          

of Securities then redeemed          
	 	
Remaining
principal                    

amount of this
Global                    

Security                    
	  	Authorized Signature      
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 
	 	 	 	 
	 	 	 	 	 	  	 

  
 13EXHIBIT 10.1

                              SEPARATION AGREEMENT

     THIS SEPARATION AGREEMENT (the "AGREEMENT") is entered into effective as of
the 1st day of October 2015, (the "EFFECTIVE  DATE"), by and between SOUTH BEACH
SPRITIS,  INC. F/K/A CME REALTY,  INC., a Nevada corporation ("SBS") and KENNETH
MCLEOD ("EXECUTIVE" or "MCLEOD").

                                 R E C I T A L S

     WHEREAS,  McCleod  serves  as  President,  Chief  Executive  Officer  and a
Director of SBS; and

     WHEREAS, SBS and McLeod wish to terminate McLeod as an officer and Director
of SBS, upon the terms and conditions set forth below.

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the promises and agreements below and
other good and valuable consideration, the parties agree as follows:

     1.  TERMINATION.  Executive  hereby resigns as President,  Chief  Executive
Officer and a Director of SBS, effective upon the execution of this Agreement.

     2. SHARES OF COMMON STOCK.

     (a)  In  consideration  of the Release given by Executive to SBS in SECTION
          3(A),  Executive shall be entitled to retain 108,000 of the 50,000,000
          shares of common stock of SBS registered in his name individually (the
          "KM SHARES").  Contemporaneously with the execution of this Agreement,
          Executive shall transfer,  convey and assign to SBS, 24,192,000 of the
          KM Shares (the  "CONTRIBUTED  SHARES") to SBS for  cancellation and in
          furtherance thereof, shall deliver to SBS certificates  evidencing the
          Contributed Shares,  together with stock transfer powers duly executed
          in blank with signature medallion guaranteed.

     (b)  McLeod agrees that he will not sell,  transfer,  assign or convey more
          than 6,000 of the KM Shares per  calendar  month,  commencing  October
          2015,  whether by private sale, gift, public sale pursuant to Rule 144
          under the Securities Act of 1933, as amended or otherwise, without the
          prior written consent of SBS.

     (c)  McLeod agrees that he will not sell, transfer, assign or convey any of
          the 1,338,000  shares of common stock of SBS registered in the name of
          Media 7  Investments,  LLC  ("MEDIA  7"), of which  limited  liability
          company he is the 100% owner (the  "MEDIA 7  SHARES"),  in any manner,
          without  the prior  written  consent of SBS.  In order to secure  such
          obligation,  upon  the  Effective  Date,  McLeod  shall  cause  to  be
          deposited  with counsel to SBS,  certificates  evidencing  the Media 7
          Shares together with stock transfer powers duly executed in blank with
          signature medallion guaranteed.
<PAGE>
     (d)  McLeod  hereby  agrees  that  the  amount  due from SBS to Media 7, as
          reflected  on the books and records of SBS,  shall be  converted  into
          "RESTRICTED"  shares of common stock of SBS on the Effective  Date, in
          the names and denominations set forth on EXHIBIT A hereto.

     (e)  Contemporaneously  with the execution of this Agreement,  McLeod shall
          deliver to counsel  for SBS,  all of the books and  records of SBS and
          its shareholders (the "BOOKS AND RECORDS"). McLeod hereby certifies to
          SBS that the Books and Records are true,  complete and accurate in all
          respects.

     (f)  The obligations of SBS to McLeod under this Agreement are specifically
          contingent  upon his compliance with the provisions of this SECTION 3.
          Except as provided in this SECTION 3, McLeod hereby  acknowledges  and
          agrees  that  SBS has no  further  financial  obligations  to  McLeod,
          whether accrued, contingent or otherwise.

     (g)  The  parties  agree  that  except as set forth in this  SECTION 3, the
          parties shall have no further obligations,  financial or otherwise, to
          each  other  with  respect  to  Executive's  employment  by SBS or his
          service as a Director of SBS.

     3. RELEASE. On behalf of himself, his heirs, executors, administrators, and
assigns,  McLeod  fully  releases  SBS and  all of its  affiliated  and  related
entities, and their respective successors, assigns, officers, directors, agents,
and  employees,  of and from any and all  potential  or actual known or unknown,
actions,  causes  of  actions,  claims,  demands,  lawsuits,  judgments,  debts,
accounts,   covenants,   agreements,   actions,   cross-actions,    liabilities,
obligations,  losses, damages, costs, compensation,  expenses,  attorneys' fees,
remedies,  causes of action of any nature, whether in tort or contract, or based
on any wrongful or intentional act, fraud or  misrepresentation,  breach of duty
or common law, or arising under or by virtue of any judicial  decision,  statute
or regulation,  for past,  present,  or future  injuries,  physical or mental or
property or economic  damage,  and for all other losses and damages of any kind,
including, but not limited to, the following:  actual damages, all exemplary and
punitive damages, all penalties of any kind, including,  without limitation, any
statutory or other penalties or liabilities,  tax liability,  damage to physical
or mental health,  business  reputation,  lost  earnings,  profits or good will,
consequential  damages,  damages ensuing from loss of credit and prejudgment and
post-judgment interest and costs and attorneys' fees, from the beginning of time
to the execution of this Agreement,  other than claims arising  pursuant to this
Agreement,  or claims accruing after the Effective Date. This Release  includes,
but is not limited to, all  liabilities,  for the payment of any sums or accrued
earnings,  bonuses,  severance pay,  salary,  accruals under any vacation,  sick
leave or holiday plans, any employee  benefits,  any employment  related charge,
claim or lawsuit  under any  federal,  state,  or local law,  including  but not
limited to claims  under  Title VII of the Civil  Rights Act of 1964,  the Civil
Rights Act of 1991,  the Civil  Rights Act of 1866,  the Age  Discrimination  in
Employment Act, as amended by the Older Workers' Benefit  Protection Rights, the
Americans  With  Disabilities   Act,  the  Worker   Adjustment   Retraining  and
Notification  Act,  the  Family  and  Medical  Leave Act of 1993,  and any tort,
contract, quasi-contract claims, and attorneys' fees.

                                       2
<PAGE>
     4.  NON-DISPARAGEMENT.  Neither  party,  including  in the case of SBS, its
officers, directors, employees and consultants, will not disparage, portray in a
negative  light, or make any statement which could be construed as defamatory to
the other party or injurious to its reputation.

     5. ENFORCEMENT. In the event of a breach or threatened breach of SECTIONS 3
or 4 of  this  Agreement  by a  party  or any of  his  or  its  affiliates,  the
non-breaching  party may enforce such  sections by obtaining  an  injunction  to
restrain the  violation.  Injunctive  relief shall be in addition to, and not in
lieu of, any other remedies or damages available at law or in equity,  including
the recovery of compensatory and punitive damages from the breaching party.

     6. ENTIRE  AGREEMENT/MODIFICATION.  This Agreement  constitutes  the entire
agreement  between the parties  relating to the  termination  of the  Employment
Agreement and supersedes any and all prior agreements or oral representations by
either party related thereto.  This Agreement shall not be changed,  modified or
amended in any  respect  except by a written  instrument  signed by the  parties
hereto.

     7.  CONFIDENTIALITY.  The parties agree to keep the terms and conditions of
this  Agreement  confidential.  The parties  shall not disclose any  information
concerning  this Agreement to any person,  except  attorneys,  accountants,  tax
advisors or spouse, or as may be required by law. The parties further agree that
prior to making  any such  disclosure;  they  shall  advise  the  person to whom
disclosure is made of the confidential nature of this Agreement.

     8.  CHOICE  OF LAW AND  INVALID  PROVISIONS.  This  Agreement  is made  and
delivered in, and shall be governed by, and construed in  accordance  with,  the
applicable  laws  of the  State  of  Florida  and if any  term  or  part of this
Agreement shall be determined to be invalid, illegal or unenforceable,  in whole
or in part,  the validity of the remaining  part of such term or the validity of
any  other  term of this  Agreement  shall  not in any way be  affected.  If any
invalidity or  unenforceability is caused by the length of any period of time or
the size of any area set forth in any part of this Agreement, the period of time
or area,  or both,  shall be  considered  to be reduced to a period or area that
would cure the invalidity or unenforceability.

     9.  BINDING  EFFECT/ASSIGNMENT.  This  Agreement  shall be binding upon and
inure to the benefit of the  parties  thereto,  their  respective  heirs,  legal
representatives, successors and Assigns.

     10. WAIVER. A waiver by any party of any of the terms and conditions hereof
shall not be construed as a general waiver by such party and such party shall be
free to  reinstate  any such term or  condition,  with or without  notice to the
other party.

     11.  CONSTRUCTION  AND  ACKNOWLEDGMENT.  This Agreement  shall be construed
without regard to any presumption or other rule requiring  construction  against
the party  causing this  Agreement to be drafted.  All sections or paragraphs in
this Agreement are for  convenience  only and are not deemed part of the content
of this Agreement.

     12. JURISDICTION;  VENUE;  INCONVENIENT FORUM; JURY TRIAL; ATTORNEYS' FEES.
Any suit,  action or proceeding  with respect to this Agreement shall be brought
in the Broward County Circuit Court for the Eleventh  Judicial  Circuit,  in and
for Broward, Florida, or in the U.S. District Court for the Southern District of
Florida and the parties  accept the  exclusive  personal  jurisdiction  of those

                                       3
<PAGE>
courts for the purpose of any suit, action or proceeding.  Each party waives all
rights to any trial by jury in all litigation  relating to or arising out of the
interpretation  and/or  enforcement of this  Agreement.  In any suit,  action or
proceeding brought with respect to this Agreement, the prevailing party shall be
entitled to recover  attorneys'  fees and costs at both the trial and  appellate
levels.

     13. COUNTERPARTS.  This Agreement may be executed in multiple counterparts,
including by facsimile or electronic transmission, each of which shall be deemed
an original and all of which shall constitute a single agreement.

                            (SIGNATURE PAGE FOLLOWS)

                                       4
<PAGE>
     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
executed as of the day and year first above written.

                                     EXECUTIVE:

                                     /s/ Kenneth McLeod
                                     -------------------------------------------
                                     Kenneth McLeod

                                     SBS:

                                     SOUTH BEACH SPIRITS, INC.

                                     By: /s/ Vincent Prince
                                         ---------------------------------------
                                         Vincent Prince, Chief Financial Officer

                                       5
<PAGE>
                                    EXHIBIT A

             "RESTRICTED" SHARES TO BE ISSUED FOR CONVERSION OF DEBT

          Name                                     Number of Shares
          ----                                     ----------------

Media 7 Investments, LLC                               186,000*

*    Based on 52 week average  share price of  $0.52/share  and total debt as of
     9/30/2015 of $96,637.05.

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]