Document:

NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
      (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
      FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO
      RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
      WITH
      A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
      THE
      SECURITIES.

     

    
      	 	
              Right
                to Purchase 200,000 shares of Common Stock of Purple Beverage Company,
                Inc. (subject to adjustment as provided
                herein)

            

    

    

    CLASS
      A COMMON STOCK PURCHASE WARRANT

    

    
      	
              No.
                2008-A-003

            	
              Issue
                Date: July 16, 2008

            

    

    

    PURPLE
      BEVERAGE COMPANY, INC., a corporation organized under the laws of the State
      of
      Nevada (the “Company”),
      hereby certifies that, for value received, JAY-2 INVESTMENTS, LLC, 137 North
      Larchmont Boulevard, #484, Los Angeles, California 90004, facsimile: 
__________ or
      its
      assigns (the “Holder”),
      is
      entitled, subject to the terms set forth below,
      to
      purchase from the Company at any time commencing on the Issue Date until 5:00
      p.m., ET on the second anniversary of the Issue Date (the “Expiration
      Date”),
      up to
      200,000 fully paid and nonassessable shares of Common Stock at a per share
      purchase price of $2.00. The aforedescribed purchase price per share, as
      adjusted from time to time as herein provided, is referred to herein as the
      “Purchase
      Price.”
The
      number and character of such shares of Common Stock and the Purchase Price
      are
      subject to adjustment as provided herein. The Company may reduce the Purchase
      Price for some or all of the Warrants, temporarily or permanently. Capitalized
      terms used and not otherwise defined herein shall have the meanings set forth
      in
      that certain Subscription Agreement (the “Subscription
      Agreement”),
      dated
      as of July 16, 2008, entered into by the Company and the Holder.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    (a) The
      term
“Company”
shall
      include Purple Beverage Company, Inc. and any corporation which shall succeed
      or
      assume the obligations of Purple Beverage Company, Inc. hereunder.

     

    (b) The
      term
“Common
      Stock”
      includes (a) the Company’s common stock, $.001 par value per share, as
      authorized on the date of the Subscription Agreement, and (b) any other
      securities into which or for which any of the securities described in (a) may
      be
      converted or exchanged pursuant to a plan of recapitalization, reorganization,
      merger, sale of assets or otherwise.

     

    
      
        
        

      

      
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    (c) The
      term
“Other
      Securities”
refers
      to any stock (other than Common Stock) and other securities of the Company
      or
      any other person (corporate or otherwise) that the holder of the Warrant at
      any
      time shall be entitled to receive, or shall have received, on the exercise
      of
      the Warrant, in lieu of or in addition to Common Stock, or which at any time
      shall be issuable or shall have been issued in exchange for or in replacement
      of
      Common Stock or Other Securities pursuant to Section 4 or
      otherwise.

     

    (d) The
      term
“Warrant
      Shares”
shall
      mean the Common Stock issuable upon exercise of this Warrant

     

    1. Exercise
      of Warrant.

     

    1.1. Number
      of Shares Issuable upon Exercise.
      From
      and after the Issue Date through and including the Expiration Date, the Holder
      hereof shall be entitled to receive, upon exercise of this Warrant in whole
      in
      accordance with the terms of subsection 1.2 or upon exercise of this Warrant
      in
      part in accordance with subsection 1.3, shares of Common Stock of the Company,
      subject to adjustment pursuant to Section 4.

     

    1.2. Full
      Exercise.
      This
      Warrant may be exercised in full by the Holder hereof by delivery of an original
      or facsimile copy of the form of subscription attached as Exhibit A hereto
      (the
“Subscription
      Form”)
      duly
      executed by such Holder and delivery within two days thereafter of payment,
      in
      cash, wire transfer or check payable to the order of the Company, in the amount
      obtained by multiplying the number of shares of Common Stock for which this
      Warrant is then exercisable by the Purchase Price then in effect The original
      Warrant is not required to be surrendered to the Company until it has been
      fully
      exercised.

     

    1.3. Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by delivery
      of
      a Subscription Form in the manner and at the place provided in subsection 1.2
      except that the amount payable by the Holder on such partial exercise shall
      be
      the amount obtained by multiplying (a) the number of whole shares of Common
      Stock designated by the Holder in the Subscription Form by (b) the Purchase
      Price then in effect On any such partial exercise provided the Holder has
      surrendered the original Warrant, the Company, at its expense, will forthwith
      issue and deliver to or upon the order of the Holder hereof a new Warrant of
      like tenor, in the name of the Holder hereof or as such Holder (upon payment
      by
      such Holder of any applicable transfer taxes) may request, the whole number
      of
      shares of Common Stock for which such Warrant may still be
      exercised.

     

    1.4. Fair
      Market Value.
      Fair
      Market Value of a share of Common Stock as of a particular date (the
“Determination
      Date”)
      shall
      mean:

     

    (a) If
      the
      Company’s Common Stock is listed, traded or quoted on the NASDAQ Global Market,
      NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock
      Exchange, the American Stock Exchange, LLC, the OTC Bulletin Board, or the
      Pink
      Sheets, LLC, then the average of the closing or last sale prices, respectively,
      reported for the ten trading days immediately preceding the Determination
      Date;

     

    
      
        
        

      

      
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    (b) If
      the
      Company’s Common Stock is not listed, traded or quoted on the NASDAQ Global
      Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
      Stock Exchange, the American Stock Exchange, LLC, the OTC Bulletin Board, or
      the
      Pink Sheets, LLC, but is traded in the over-the-counter market, then the average
      of the closing bid and ask prices reported for the ten trading days immediately
      preceding the Determination Date;

     

    (c) Except
      as
      provided in clause (d) below and Section 3.1, if the Company’s Common Stock is
      not so publicly listed, traded or quoted, then as the Holder and the Company
      agree, or in the absence of such an agreement, by arbitration in accordance
      with
      the rules then standing of the American Arbitration Association, before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided with such arbitration to be
      conducted in Los Angeles, California; or

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding-up,
      or
      any event deemed to be a liquidation, dissolution or winding-up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of all of the Warrants are outstanding at the Determination
      Date.

     

    1.5. Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the Holder hereof, acknowledge in writing its continuing obligation to afford
      to
      such Holder any rights to which such Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such Holder any such
      rights.

     

    1.6. Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      Holder of the Warrants pursuant to Subsection 3.2, such bank or trust company
      shall have all the powers and duties of a warrant agent (as hereinafter
      described) and shall accept, in its own name for the account of the Company
      or
      such successor person as may be entitled thereto, all amounts otherwise payable
      to the Company or such successor, as the case may be, on exercise of this
      Warrant pursuant to this Section 1.

     

    1.7 Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the Warrant Shares shall be deemed to be issued to the
      Holder hereof as the record owner of such shares as of the close of business
      on
      the date on which delivery of a Subscription Form shall have occurred and
      payment made for such shares as aforesaid. As soon as practicable after the
      exercise of this Warrant in full or in part, and in any event within five (5)
      business days thereafter (the “Warrant
      Share Delivery Date”),
      the
      Company at its expense (including the payment by it of any applicable issue
      taxes) will cause to be issued in the name of and delivered to the Holder
      hereof, or as such Holder (upon payment by such Holder of any applicable
      transfer taxes) may direct in compliance with applicable securities laws, a
      certificate or certificates for the number of duly and validly issued, fully
      paid and non-assessable shares of Common Stock (or Other Securities) to which
      such Holder shall be entitled on such exercise, plus, in lieu of any fractional
      share to which such Holder would otherwise be entitled, cash equal to such
      fraction multiplied by the then Fair Market Value of one full share of Common
      Stock, together with any other stock or other securities and property (including
      cash, where applicable) to which such Holder is entitled upon such exercise
      pursuant to Section 1 or otherwise. The Company understands that a delay in
      the
      delivery of the Warrant Shares after the Warrant Share Delivery Date could
      result in economic loss to the Holder. As compensation to the Holder for such
      loss, the Company agrees to pay (as liquidated damages and not as a penalty)
      to
      the Holder for late issuance of Warrant Shares upon exercise of this Warrant
      the
      proportionate amount of $100 per business day after the Warrant Share Delivery
      Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant
      is exercised which are not timely delivered. The Company shall pay any payments
      incurred under this Section in immediately available funds upon demand.
      Furthermore, in addition to any other remedies which may be available to the
      Holder, in the event that the Company fails for any reason to effect delivery
      of
      the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke
      all
      or part of the relevant Warrant exercise by delivery of a notice to such effect
      to the Company, whereupon the Company and the Holder shall each be restored
      to
      their respective positions immediately prior to the exercise of the relevant
      portion of this Warrant, except that the liquidated damages described above
      shall be payable through the date notice of revocation or rescission is given
      to
      the Company.

     

    
      
        
        

      

      
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    1.8 Buy-In.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      deliver to a Holder the Warrant Shares as required pursuant to this Warrant
      within five (5) business days after the Warrant Share Delivery Date and the
      Holder or a broker on the Holder’s behalf purchases (in an open market
      transaction or otherwise) shares of common stock to deliver in satisfaction
      of a
      sale by such Holder of the Warrant Shares which the Holder was entitled to
      receive from the Company (a “Buy-In”),
      then
      the Company shall pay in cash to the Holder (in addition to any remedies
      available to or elected by the Holder) the amount by which (A) the Holder’s
      total purchase price (including brokerage commissions, if any) for the shares
      of
      common stock so purchased exceeds (B) the aggregate Purchase Price of the
      Warrant Shares required to have been delivered, together with interest thereon
      at a rate of 15% per annum, accruing until such amount and any accrued interest
      thereon is paid in full (which amount shall be paid as liquidated damages and
      not as a penalty). For example, if a Holder purchases shares of Common Stock
      having a total purchase price of $11,000 to cover a Buy-In with respect to
      $10,000 of Purchase Price of Warrant Shares to have been received upon exercise
      of this Warrant, the Company shall be required to pay the Holder $1,000, plus
      interest The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In.

     

    2. Cashless
      Exercise.

     

    (a) If
      a
      registration statement (a “Registration
      Statement”)
      is
      effective for the public unrestricted resale of all of the Warrant Shares
      issuable upon exercise of this Warrant, then commencing six months after the
      Issue Date, this Warrant may be exercised in whole or in part for cash only
      as
      set forth in Section 1 above. If such Registration Statement is not available,
      payment upon exercise may be made at the option of the Holder either in (i)
      cash, wire transfer or by check payable to the order of the Company equal to
      the
      applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable
      upon exercise of the Warrants in accordance with Section (b) below or (iii)
      by a
      combination of any of the foregoing methods, for the number of Common Stock
      specified in such form (as such exercise number shall be adjusted to reflect
      any
      adjustment in the total number of shares of Common Stock issuable to the holder
      per the terms of this Warrant) and the holder shall thereupon be entitled to
      receive the number of duly authorized, validly issued, fully-paid and
      non-assessable shares of Common Stock (or Other Securities) determined as
      provided herein.

    
      
        
        

      

      
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    (b) Subject
      to the provisions herein to the contrary, if the Fair Market Value of one share
      of Common Stock is greater than the Purchase Price (at the date of calculation
      as set forth below), in lieu of exercising this Warrant for cash, the holder
      may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being cancelled) by together with the properly endorsed
      Subscription Form in which event the Company shall issue to the holder a number
      of shares of Common Stock computed using the following formula:

     

    X=Y
      (A-B) 

             
      A

     

    
      	 	
              Where
                X=

            	
              the
                number of shares of Common Stock to be issued to the
                holder

            
	 	 	 
	 	
               Y=
                

            	
              the
                number of shares of Common Stock purchasable under the Warrant or,
                if only
                a portion of the Warrant is being exercised, the portion of the Warrant
                being exercised (at the date of such calculation)

            
	 	 	 
	 	
               A=
                

               

            	
              the
                average of the closing sale prices of the Common Stock for the ten
                (10)
                trading days immediately prior to (but not including) the Exercise
                Date,
                (or if no such closing prices are available, then the Fair Market
                Value)

            
	 	 	 
	 	
               B=

            	
              Purchase
                Price (as adjusted to the date of such
                calculation)

            

    

     

    For
      purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
      and acknowledged that the Warrant Shares issued in a cashless exercise
      transaction shall be deemed to have been acquired by the Holder, and the holding
      period for the Warrant Shares shall be deemed to have commenced, on the date
      this Warrant was originally issued pursuant to the Subscription
      Agreement

     

    
      
        
        

      

      
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    3. Adjustment
      for Reorganization, Consolidation, Merger, etc.

     

    3.1. Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another entity, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another entity) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, (D) the Company consummates a stock purchase agreement or
      other business combination (including, without limitation, a reorganization,
      recapitalization, spin-off or scheme of arrangement) with one or more persons
      or
      entities whereby such other persons or entities acquire more than the 50% of
      the
      outstanding shares of Common Stock (not including any shares of Common Stock
      held by such other persons or entities making or party to, or associated or
      affiliated with the other persons or entities making or party to, such stock
      purchase agreement or other business combination), (E) any “person”
or
      “group”
(as
      these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act)
      is or shall become the “beneficial
      owner”
(as
      defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of
      the
      aggregate Common Stock of the Company, or (F) the Company effects any
      reclassification of the Common Stock or any compulsory share exchange pursuant
      to which the Common Stock is effectively converted into or exchanged for other
      securities, cash or property (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) if the Company is acquired in (1) a transaction where the
      consideration paid to the holders of the Common Stock consists solely of cash,
      (2) a “Rule
      13e-3 transaction”
as
      defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a
      person or entity not traded on a national securities exchange, the Nasdaq Global
      Select Market, the Nasdaq Global Market or the Nasdaq Capital Market, cash
      equal
      to the Black-Scholes Value. For purposes of any such exercise, the determination
      of the Purchase Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Purchase Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3.1 and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental Transaction.
“Black-Scholes
      Value”
shall
      be determined in accordance with the Black-Scholes Option Pricing Model obtained
      from the “OV”
      function on Bloomberg L.P. using (i) a
      price
      per share of Common Stock equal to the VWAP of the Common Stock for the Trading
      Day immediately preceding the date of consummation of the applicable Fundamental
      Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury
      rate for a period equal to the remaining term of this Warrant as of the date
      of
      such request and (iii) an expected volatility equal to the 100 day volatility
      obtained from the HVT function on Bloomberg L.P. determined as of the Trading
      Day immediately following the public announcement of the applicable Fundamental
      Transaction.

     

    
      
        
        

      

      
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    3.2. Dissolution.
      In the
      event of any dissolution
      of the Company following the transfer of all or substantially all of its
      properties or assets, the Company, prior to such dissolution, shall at its
      expense deliver or cause to be delivered the stock and other securities and
      property (including cash, where applicable) receivable by the Holder of the
      Warrants after the effective date of such dissolution pursuant to this Section
      3
      to a bank or trust company (a “Trustee”)
      having
      a principal office in Los Angeles, California, as trustee for the Holder of
      the
      Warrants. Such property shall be delivered only upon payment of the Warrant
      exercise price.

     

    3.3. Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the Other Securities and property receivable on the exercise of this Warrant
      after the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be,
      and shall be binding upon the issuer of any Other Securities, including, in
      the
      case of any such transfer, the person acquiring all or substantially all of
      the
      properties or assets of the Company, whether or not such person shall have
      expressly assumed the terms of this Warrant as provided in Section 4 In the
      event this Warrant does not continue in full force and effect after the
      consummation of the transaction described in this Section 3, then only in such
      event will the Company’s securities and property (including cash, where
      applicable) receivable by the Holder of the Warrants be delivered to the Trustee
      as contemplated by Section 3.2.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock, (b) subdivide
      its
      outstanding shares of Common Stock, or (c) combine its outstanding shares of
      the
      Common Stock into a smaller number of shares of the Common Stock, then, in
      each
      such event, the Purchase Price shall, simultaneously with the happening of
      such
      event, be adjusted by multiplying the then Purchase Price by a fraction, the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such event and the denominator of which shall be the number
      of shares of Common Stock outstanding immediately after such event, and the
      product so obtained shall thereafter be the Purchase Price then in effect The
      Purchase Price, as so adjusted, shall be readjusted in the same manner upon
      the
      happening of any successive event or events described herein in this Section
      4.
      The number of shares of Common Stock that the Holder of this Warrant shall
      thereafter, on the exercise hereof, be entitled to receive shall be adjusted
      to
      a number determined by multiplying the number of shares of Common Stock that
      would otherwise (but for the provisions of this Section 4 be issuable on such
      exercise by a fraction of which (a) the numerator is the Purchase Price that
      would otherwise (but for the provisions of this Section 4 be in effect, and
      (b)
      the denominator is the Purchase Price in effect on the date of such
      exercise.

     

    
      
        
        

      

      
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    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of the Warrants, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of the
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Purchase Price and the number of shares of Common Stock to be
      received upon exercise of this Warrant, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Warrant. The Company will forthwith mail a copy of each such certificate to
      the
      Holder of the Warrant and any Warrant Agent of the Company (appointed pursuant
      to Section 10 hereof).

     

    6. Reservation
      of Stock, etc. Issuable on Exercise of Warrant; Financial
      Statements.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Warrants, all shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of the Warrant. This
      Warrant entitles the Holder hereof to receive copies of all financial and other
      information distributed or required to be distributed to the holders of the
      Company’s Common Stock.

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”).
      On
      the surrender for exchange of this Warrant, with the Transferor’s endorsement in
      the form of Exhibit B attached hereto (the “Transferor
      Endorsement Form”)
      and
      together with an opinion of counsel reasonably satisfactory to the Company
      that
      the transfer of this Warrant will be in compliance with applicable securities
      laws, the Company will issue and deliver to or on the order of the Transferor
      thereof a new Warrant or Warrants of like tenor, in the name of the Transferor
      and/or the transferee(s) specified in such Transferor Endorsement Form (each
      a
“Transferee”),
      calling in the aggregate on the face or faces thereof for the number of shares
      of Common Stock called for on the face or faces of the Warrant so surrendered
      by
      the Transferor.

     

    
      
        
        

      

      
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    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense, twice only, will execute and deliver, in lieu thereof,
      a
      new Warrant of like tenor.

     

    9. Maximum
      Exercise.
      The
      Holder shall not be entitled to exercise this Warrant on an exercise date,
      in
      connection with that number of shares of Common Stock which would be in excess
      of the sum of (i) the number of shares of Common Stock beneficially owned by
      the
      Holder and its affiliates on an exercise date, and (ii) the number of shares
      of
      Common Stock issuable upon the exercise of this Warrant with respect to which
      the determination of this limitation is being made on an exercise date, which
      would result in beneficial ownership by the Holder and its affiliates of more
      than 4.99% of the outstanding shares of Common Stock on such date. For the
      purposes of the immediately preceding sentence, beneficial ownership shall
      be
      determined in accordance with Section 13(d) of the 1934 Act and Rule 13d-3
      thereunder. Subject to the foregoing, the Holder shall not be limited to
      aggregate exercises which would result in the issuance of more than 4.99%.
      The
      restriction described in this paragraph may be waived, in whole or in part,
      upon
      sixty-one (61) days prior notice from the Holder to the Company to increase
      such
      percentage to up to 9.99%. The Holder may allocate which of the equity of the
      Company deemed beneficially owned by the Subscriber shall be included in the
      4.99% amount described above and which shall be allocated to the excess above
      4.99%.

     

    10. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      (a
“Warrant
      Agent”)
      for
      the purpose of issuing Common Stock (or Other Securities) on the exercise of
      this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
      7, and replacing this Warrant pursuant to Section 8, or any of the foregoing,
      and thereafter any such issuance, exchange or replacement, as the case may
      be,
      shall be made at such office by such Warrant Agent.

     

    11. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    12. Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: if to the Company, to: Purple Beverage Company, Inc.,
      450 E. Las Olas Blvd., #830, Ft. Lauderdale, Florida 33301, Attn: Theodore
      Farnsworth, President, facsimile: (954) 462-8758, with an additional copy by
      facsimile only (which shall not constitute notice) to: Bryan Cave LLP, 1900
      Main
      Street, Suite 700, Irvine, California 92614, Attn: Randolf W. Katz, Esq.,
      facsimile: (949) 223-7100, and (ii) if to the Holder, to the address and
      facsimile number listed on the first paragraph of this Warrant, with an
      additional copy by facsimile only (which shall not constitute notice) to:
      Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York
      10176, facsimile number: (212) 697-3575.

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

    13. Law
      Governing This Warrant.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York without regard to principles of conflicts of
      laws.

     

    Any
      action brought by either party against the other concerning the transactions
      contemplated by this Warrant shall be brought only in the state courts of
      California or in the federal courts located in the State of California, County
      of Los Angeles. The parties to this Warrant hereby irrevocably waive any
      objection to jurisdiction and venue of any action instituted hereunder and
      shall
      not assert any defense based on lack of jurisdiction or venue or based upon
      forum
      non conveniens. The
      Company and Holder waive trial by jury. The prevailing party shall be entitled
      to recover from the other party its reasonable attorney’s fees and costs. In the
      event that any provision of this Warrant or any other agreement delivered in
      connection herewith is invalid or unenforceable under any applicable statute
      or
      rule of law, then such provision shall be deemed inoperative to the extent
      that
      it may conflict therewith and shall be deemed modified to conform with such
      statute or rule of law. Any such provision which may prove invalid or
      unenforceable under any law shall not affect the validity or enforceability
      of
      any other provision of any agreement.

     

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above.

     

    
      	PURPOSE
              BEVERAGE COMPANY, INC.
	 	 
	
              By:

            	
              /s/
                Theodore Farnsworth

            
	 	
              Theodore
                Farnsworth, Chief Executive
                Officer

            

    

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    FORM
      OF
      SUBSCRIPTION

    (to
      be
      signed only on exercise of Warrant)

    

    TO:
      PURPLE BEVERAGE COMPANY, INC.

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No._____)
      hereby irrevocably elects to purchase (check applicable box):

     

    ___ _______
      shares of the Common Stock covered by such Warrant; or

     

    ___ the
      maximum number of shares of Common Stock covered by such Warrant pursuant to
      the
      cashless exercise procedure set forth in Section 2.

     

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant, which is $__________. Such
      payment takes the form of (check applicable box or boxes):

     

    ___ $________
      in lawful money of the United States; and/or

     

    ___ the
      cancellation of such portion of the attached Warrant as is exercisable for
      a
      total of _______ shares of Common Stock (using a Fair Market Value of
      $_____
      per
      share for purposes of this calculation); and/or

     

    ___ the
      cancellation of such number of shares of Common Stock as is necessary, in
      accordance with the formula set forth in Section 2, to exercise this Warrant
      with respect to the maximum number of shares of Common Stock purchasable
      pursuant to the cashless exercise procedure set forth in Section 2.

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to___________________________________________ whose address
      is
      _______________________________________

    ___________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities
      Act”),
      or
      pursuant to an exemption from registration under the Securities
      Act.

     

    
      	
              Dated:

            	  
	 	 	  

	 	 	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	 	 
	 	 	 	 	    

	 	 	 	 	    

	 	 	 	 	
              (Address)

            

    

     

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    FORM
      OF
      TRANSFEROR ENDORSEMENT

    (To
      be
      signed only on transfer of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees”
the
      right represented by the within Warrant to purchase the percentage and number
      of
      shares of Common Stock of PURPLE BEVERAGE COMPANY, INC. to which the within
      Warrant relates specified under the headings “Percentage
      Transferred”
and
      “Number
      Transferred,”
      respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of PURPLE BEVERAGE
      COMPANY, INC. with full power of substitution in the premises.

    

    
      	
              Transferees

            	 	
              Percentage
                Transferred

            	 	
              Number
                Transferred

            	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

    

    

    
      	
              Dated:
                ________________, ________________

            	 	   

	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                warrant)

            
	 	 	 
	
              Signed
                in the presence of:

            	 	 
	 	 	 
	   
	 	  

	
              (Name)

            	 	  

	 	 	
              (address)

            
	 	 	 
	
              ACCEPTED
                AND AGREED:

            	 	  

	
              [TRANSFEREE]

            	 	  

	 	 	
              (address)

            
	  
	 	 
	
              (Name)

            	 	 

    

     

    
      
        
        

      

      
        -
          12
          -UNSECURED
      PROMISSORY NOTE

    

    

    
      	
              $45,000.00

            	
              Ft.
                Lauderdale, Florida

            
	 	
              August
                14, 2008

            

    

    

    

    Purple
      Beverage Company, Inc., a Nevada corporation (“Maker”),
      hereby promises to pay to the order of Michael Wallace, an individual or order
      (“Lender”),
      in
      lawful money of the United States of America, the lesser of Forty Five Thousand
      Dollars ($45,000.00) or the principal balance outstanding under this Unsecured
      Promissory Note, together with accrued and unpaid interest thereon, if any,
      at
      the rate or rates set forth below (“Balance
      Due”),
      on
      demand at any time.

    

    The
      unpaid principal amount of this Unsecured Promissory Note shall bear interest
      at
      a rate of 2.54% until the date on which this Unsecured Promissory Note has
      been
      paid in full. If any interest is determined to be in excess of the then legal
      maximum rate, then that portion of each interest payment representing an amount
      in excess of the then legal maximum rate shall be deemed a payment of principal
      and applied against the principal of the obligations evidenced by this Unsecured
      Promissory Note.

    

    This
      Unsecured Promissory Note may be prepaid in whole or in part at any time,
      without premium or penalty or notice.

    

    This
      Unsecured Promissory Note is being delivered in, is intended to be performed
      in,
      shall be construed and interpreted in accordance with, and be governed by the
      internal laws of, the State of Florida, without regard to principles of conflict
      of laws.

    

    This
      Unsecured Promissory Note may only be amended, modified or terminated by an
      agreement in writing signed by the party to be charged. This Unsecured
      Promissory Note shall be binding upon the successors and assigns of the Maker
      and inure to the benefit of the Lender and his permitted successors, endorsees
      and assigns. This
      Unsecured Promissory Note shall not be transferred without the express written
      consent of Lender, provided that if Lender consents to any such transfer or
      if
      notwithstanding the foregoing such a transfer occurs, then the provisions of
      this Unsecured Promissory Note shall be binding upon any successor to Maker
      and
      shall inure to the benefit of and be extended to any holder
      thereof.

     

    
      	 	
              PURPLE
                BEVERAGE COMPANY, INC.

              a
                Nevada corporation

            
	 	 
	 	 
	 	
              By: 
                /s/
                Theodore
                Farnsworth                     
                

              Theodore
                Farnsworth, CEO

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