Document:

roi_ex102-71017.htm

    

    Exhibit
      10.2

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY
      STATE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
      TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
      PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
      TO
      REGISTRATION OR EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES
      MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
      ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE
      WITH
      THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

    

    RHINO
      OUTDOOR INTERNATIONAL, INC.

    

            WARRANT
      FOR THE PURCHASE OF SHARES OF COMMON STOCK

    

    For
      Value
      Received, RHINO OUTDOOR INTERNATIONAL, INC., a Nevada corporation
      ("Company") hereby certifies that YAMABUGGY, LLC, a Delaware limited
      liability company ("Holder"), or assigns, is entitled, subject to the
      provisions of this Warrant, to purchase from the Company, at any time before
      5:00 p.m. (Pacific Time) on December 31, 2010, ( "Expiration Date"), up
      to Fifty Million (50,000,000) fully paid and nonassessable shares of Common
      Stock of the Company, subject to adjustment as hereinafter
      provided.  Holder may purchase such number of shares of Common Stock
      at a purchase price per share, as appropriately adjusted pursuant to Section
      6
      hereof, of $0.072 per share ("Exercise Price").  The Holder
      may purchase such number of shares of Common Stock equal the Exercise Price
      divided by the net revenues paid to the Company’s wholly-owned subsidiary,
      Yamabuggy Sales and Distribution, Inc. pursuant to the Sales and Distribution
      Agreement dated October 15, 2007. Notwithstanding the foregoing, Holder may,
      at
      any time and from time to time, following a “Trigger Event”, purchase the shares
      of Common Stock. The term “Trigger Event” shall refer to the sale of all or
      substantially all of the assets of the Company or any  merger or
      acquisition of the Company or any other business combination transaction to
      which the Company is a party. The term "Common Stock" shall mean the
      aforementioned Common Stock of the Company, together with any other equity
      securities that may be issued by the Company in addition thereto or in
      substitution therefor as provided herein.

    

    The
      number of shares of Common Stock to be received upon the exercise of this
      Warrant and the price to be paid for a share of Common Stock are subject to
      adjustment from time to time as hereinafter set forth.  The shares of
      Common Stock deliverable upon such exercise, as adjusted from time to time,
      are
      hereinafter sometimes referred to as "Warrant Shares".

    

    Section
      1.   EXERCISE OF WARRANT.

    

    This
      Warrant may be exercised in whole or in part, but in no more than three parts,
      on any business day prior to the Expiration Date by presentation and surrender
      hereof to the Company at its principal office at the address set forth in the
      initial paragraph hereof (or at such other address as the company may hereafter
      notify Holder in writing) with the Purchase Form annexed hereto duly executed
      and accompanied by proper payment of the Exercise Price in lawful money of
      the
      United States of America in  the form of a check, subject to
      collection, for the number of Warrant Shares specified in the Purchase
      Form.  If this Warrant should be exercised in part only, the Company
      shall, upon surrender of this Warrant, execute and deliver a new Warrant dated
      as of the date hereof and evidencing the rights of holder thereof to purchase
      the balance of the Warrant Shares purchasable
      hereunder.  

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Upon
      receipt by the Company of this Warrant and such Purchase Form, together with
      proper payment of the Exercise Price, at the principal office of the Company,
      Holder shall be deemed to be the holder of record of the Warrant Shares,
      notwithstanding that the stock transfer books of the Company shall then be
      closed or that certificates representing such Warrant Shares shall not then
      be
      actually delivered to Holder.

    

    In
      addition to and without limiting the
      rights of Holder under any other terms set forth herein, Holder shall have
      the
      right, upon written request by Holder delivered or transmitted to the Company
      together with this Warrant, to exchange this Warrant, in whole or in part
      at any time on or before the Expiration Date, for the number of shares if Common
      Stock of the Company having an aggregate current market price on the date of
      such exchange, determined as provided in Section 3 below,  equal to
      the difference between (a) the aggregate current market value on the date of
      such exchange, determined as previously set forth, of a number of Warrant Shares
      designated Holder ("Designated
      Shares"), and (b) the aggregate Exercise Price Holder would have paid to
      the Company to purchase the Designated Shares upon exercise of this
      Warrant.  Upon such exchange, the number of Warrant Shares purchasable
      upon exercise of this Warrant shall be reduced by the number of Designated
      Shares and, if a balance of purchasable Warrant Shares; provided, that no
      fractional shares shall be issuable upon such exchange, and if the number of
      shares of Common Stock determined in accordance with the foregoing formula
      is
      other than a whole number, the Company shall pay Holder an amount by check,
      determined in accordance with the provisions of Section 3.

    

    Section
      2.   RESERVATION OF SHARES.

    

    The
      Company hereby agrees that at all timer there shall be reserved for issuance
      and
      delivery upon exercise of this Warrant all shares of its Common Stock of other
      shares of capital stock of the Company from time to time issuable upon exercise
      of this Warrant.  All such shares shall be duly authorized and, when
      issued upon such exercise in accordance with the terms of this Warrant, shall
      be
      validly issued, fully paid and nonassessable, free and clear of all liens,
      security interests, charges and other encumbrances or restrictions on sale
      (other than as provided in the Company's certificate of incorporation and any
      restrictions on sale set forth herein or pursuant to applicable federal and
      state securities laws) and free and clear of all preemptive rights.

    

    Section
      3.   FRACTIONAL SHARES.

    

    The
      Company will not issue a fractional
      share of Common Stock upon exercise of a Warrant.  In lieu of the
      issuance of any such fractional shares, the Company shall make a cash payment
      equal to the then fair market value of the of such fractional shares as
      determined by the Board of Directors.

    

    Section
      4.   TRANSFERS; ASSIGNMENT OR LOSS OF WARRANT.

    

    (a)           Subject
      to the provisions of Section 9, this Warrant and all rights hereunder are
transferable
      in whole or in part by Holder and any successor transferee.

     

    
      
        
        

      

      
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    (b)           Subject
      to the provisions of Section 9, upon surrender of this Warrant to the Company
      or
      at the
      office of its stock transfer agent or warrant agent, with the Assignment Form
      annexed hereto duly
      executed and funds sufficient to pay any transfer tax, the Company shall,
      without charge, execute and
      deliver a new Warrant or Warrants dated as of the date hereof and registered
      in
      the name of the assignee
      named in such
      instrument of assignment (any such assignee will then be a "Holder"
      for purposes
      of this Warrant) and, if
      Holder's entire interest is not being assigned, in the name of
      the Holder,
      and this Warrant shall be promptly canceled.

    (c)           Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Warrant, (such as an affidavit of the registered Holder)
      and (in the case of loss, theft or destruction) of indemnification satisfactory
      to the Company, and upon surrender and cancellation of this Warrant, if
      mutilated, the Company shall execute and deliver a new Warrant of like tenor
      and
      date.  In the event that this Warrant is lost, stolen, destroyed or
      mutilated, Holder shall pay all reasonable attorney's fees and expense incurred
      by the Company in connection with the replacement of this Warrant and the
      issuance of a new Warrant.

    

    Section
      5.   RIGHTS OF HOLDER.

    

    Holder
      shall not, by virtue thereof, be
      entitled to any rights of a stockholder in the Company, either at law or equity,
      and the rights of Holder are limited to those expressed in this
      Warrant.  Nothing contained in this Warrant shall be construed as
      conferring upon Holder hereof the right to vote or to consent or to receive
      notice as a stockholder of the Company on any matters or with respect to any
      rights whatsoever as a stockholder of the Company.  No dividends or
      interest shall be payable or accrued in respect of this Warrant or the interest
      represented hereby or the Warrant Shares purchasable hereunder until, and only
      to the extent that, this Warrant shall have been exercised in accordance with
      its terms.

    

    Section
      6.   ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF
      SHARES.

    

    The
      number and kind of securities
      purchasable upon the exercise of this Warrant and the Exercise Price shall
      be
      subject to adjustment from time to time upon the beginning of certain events,
      as
      follows:

    

    (a)           Adjustment
      for change in Capital Stock.  If at any time after the date hereof the
      Company:

    

    
      	
            	
              (i)

            	
              pays
                a dividend in Common Stock or makes a distribution on its Common
                Stock in
                shares of its Common Stock;

            

    

    

    
      	
            	
              (ii)

            	
              subdivides
                its outstanding shares of Common Stock into a greater number
                ofshares;

            

    

    

    
      	
            	
              (iii)

            	
              combines
                its outstanding shares of Common Stock into a smaller number
                ofshares;

            

    

    

    
      	
            	
              (iv)

            	
              makes
                a distribution on its Common Stock in shares of its capital stock
                other
                than Common Stock; or

            

    

    

    
      
        
        

      

      
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              (v)

            	
              issues
                by reclassification, recapitalization or reorganization of this Common
                Stock or in exchange for its Common Stock any shares of its capital
                stock;
                then the Exercise Price in effect immediately prior to such action
                and the
                number and kind (if applicable) of securities purchasable upon exercise
                of
                this Warrant shall be adjusted so that Holder may receive upon exercise
                of
                this Warrant and payment of the same aggregate consideration the
                number of
                shares of capital stock of the Company which Holder would have owned
                immediately following such action if Holder had exercised this Warrant
                immediately prior to such action.  The adjustment shall become
                effective immediately after the record date in the case of a dividend
                or
                distribution and immediately after the effective date in the case
                of a
                subdivision, combination or
                reclassification.

            

    

    

    (b)           Minimum
      Adjustment.  All calculations under this Section 6 shall be made to
      the nearest cent or to the nearest share, as the case may be.

    

    (c)           Deferral
      of Issuance or Payment.  In any case which an event covered by this
      Section 6 shall require that an adjustment in the Exercise Price be made
      effective as of a record date, the Company may elect to defer until the
      occurrence of such event (i) issuing to Holder, if this Warrant is exercised
      after such record date, the shares of Common stock and other capital stock
      of
      the Company, if any, issuable upon such exercise on the basis of the Exercise
      Price in effect prior to such adjustment, and (ii) paying to Holder by check
      any
      amount in lieu of the issuance of fractional shares pursuant to Section
      3.

    

    (d)           When
      No Adjustment Required.  No adjustment shall be required for a change
      in the par value or no par value of the Common Stock.  To the extent
      this Warrant becomes exercisable into cash, no adjustment shall be required
      thereafter as to the cash, and interest will not accrue on the
      cash.

    

    (e)           Notice
      of Certain Actions.  In the event that:

    

    (i)           the
      Company shall authorize the issuance to all holders of its common Stock of
      rights, warrants, options or convertible securities to subscribe for or purchase
      shares of its Common Stock or of any other subscription rights, warrant options
      or convertible securities, or

    

    (ii)           the
      Company shall authorize the distribution to all holders of its Common Stock
      of
      evidences of its indebtedness or assets (other than dividends paid in or
      distributions of the Company's capital stock for which the Exercise Price shall
      have been adjusted pursuant to subsection (a) of this Section 6 or cash
      dividends or cash distributions payable out of consolidated current or retained
      earnings as shown on the books of the Company and paid in the ordinary course
      of
      business); or

    

    (iii)           the
      Company shall authorize any capital reorganization or reclassification of the
      Common Stock (other than a subdivision or combination of the outstanding Common
      Stock and other than a change in par value of the Common Stock) or any
      consolidation or merger to which the Company is a party and for which approval
      of any stockholders of the Company is required (other than a consolidation
      or
      merger in which the Company is the continuing corporation and that does not
      result in any reclassification or change of the Common Stock outstanding),
      or
      the conveyance or transfer of the properties and assets of the Company as an
      entirety or substantially as an entirety; or

    

    
      
        
        

      

      
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    (iv)           the
      Company is the subject of a voluntary or involuntary dissolution, liquidation
      or
      winding-up procedure; or

    

    (v)           the
      Company proposes to take any action (other than actions of the character
      described in subsection (a) of this Section 6) that would require an adjustment
      of the Exercise Price pursuant to this Section 6; then the Company shall cause
      to be mailed by first-class mail to Holder, at least ten (10) days prior to
      the
      applicable record of effective date hereinafter specified, a notice stating
      (x)
      the date as of which the holders of Common Stock of record to be entitled to
      receive any such rights, warrants or distributions is expected to be made,
      or
      (y) the date on which any such consolidation, merger, conveyance, transfer,
      dissolution, liquidation or winding-up is expected to become effective, and
      the
      date as of which it is expected that holders of Common Stock of record shall
      be
      entitled to exchange their shares of Common Stock for securities or other
      property, if any, deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, transfer, dissolution, liquidation, or
      winding-up; provided, however, that Holder shall make a best efforts attempt
      to
      respond to such notice (to the extent any such response is required or permitted
      hereunder or is reasonable requested by the Company) as early as possible after
      the receipt thereof .

    

    (vi)           No
      Adjustment After Exercise of Warrant.  no adjustments shall be made
      under any Section herein in connection with the issuance of Warrant Shares
      after
      exercise of this Warrant.

    

    Section
      7.   NOTICE OF ADJUSTMENT.

    

    Upon
      any adjustment of the Exercise
      Price or any increase or decrease in the number of shares of Common Stock
      purchasable upon the exercise of this Warrant, the Company shall give written
      notice thereof, by certified or registered mail, postage paid and return receipt
      requested, addressed to the registered Holder at the address of such Holder
      as
      shown on the books of the company.  The notice shall be signed by the
      Company's chief financial officer and shall state the Exercise Price resulting
      from such adjustment and the increase or decrease, if any, in the number of
      shares purchasable at such price upon the exercise of this Warrant, setting
      forth in reasonable detail the method of calculation and the facts upon which
      such calculation is based.

    

    

    Section
      8.   RECLASSIFICATION, REORGANIZATION, CONSOLIDATION,OR
      MERGER.

    

    In
      the event of any reclassification,
      capital reorganization or other change of outstanding shares of Common Stock
      of
      the Company (other than a subdivision or combination of the outstanding Common
      Stock and other than a change in the par value of the Common Stock) or in the
      event of any consolidation or merger of the Company with or into another
      corporation (other than a merger in which the Company is the continuing
      corporation and that does not result in any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of the
      class issuable upon exercise of this Warrant) or in the event of any sale,
      lease, transfer or conveyance to another corporation of the property and assets
      of the Company as an entirety or substantially as an entirety, the company
      shall, as a condition precedent to such transaction, cause effective provisions
      to be made so that Holder shall have the right thereafter, by exercising this
      Warrant, in lieu of the shares of the Common Stock of the Company immediately
      theretofore purchasable and receivable upon the exercise of the rights
      represented hereby, to purchase the kind and amount of shares of stock and
      other
      securities and property, including cash,  receivable upon such
      reclassification, capital reorganization and other change, consolidation,
      merger, sale or conveyance by a holder of the number of shares of Common Stock
      that might have been received upon exercise of this Warrant immediately prior
      to
      such reclassification, capital reorganization, change, consolidation, merger,
      sale or conveyance,; provided, however, that in the event (a) the value of
      the
      stock, securities or other assets or property, determined in good faith by
      the
      Board of Directors of the Company,  issuable or payable with respect
      to one share of the Common Stock of the Company immediately theretofore
      purchasable and receivable upon the exercise of the rights represented hereby
      is
      in excess of the Exercise Price hereof effective at the time of the merger
      (after giving effect to any adjustment in such Exercise Price required to be
      made under the terms of this Warrant), and (b) the securities received in such
      reorganization, if any, are publicly traded, then this Warrant shall expires
      unless exercised prior to the reorganization.  

     

    
      
        
        

      

      
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    Any
      such
      provision shall include provisions for adjustments in respect of such shares
      of
      stock and other securities and property that shall be as nearly equivalent
      as
      may be practicable to adjustments provided for in this Warrant.  The
      foregoing provisions of this Section 8 shall similarly apply to successive
      consolidations, mergers, sales or conveyances.  In the event that in
      connection with any such capital reorganization or reclassification,
      consolidation, merger, sale or conveyance, additional shares of Common Stock
      shall be issued in exchange, conversion, substitution or payment, in whole
      or in
      part, for or of, a security of the Company other than Common Stock, any such
      issue shall be treated as an issue of Common Stock covered by the provisions
      of
      subsection (a) of Section 6.

    

    Section
      9.                                TRANSFER
      TO COMPLY WITH THE SECURITIES ACT OF 1933.

    

    This
      Warrant may not be exercised and
      neither this Warrant nor any of the Warrant Shares, nor any interest in either,
      may be offered, sold, assigned, pledged, hypothecated, encumbered or in any
      other manner transferred or disposed of, in whole or in part, except in
      compliance with United Stated federal and state securities of blue sky laws
      and
      the terms and conditions hereof.  Each Warrant shall bear a legend in
      substantially the same form as the legend set forth on the first page of this
      Warrant, unless at the time of exercise such Warrant Shares are acquired
      pursuant to a registration statement that has been declared effective under
      the
      Securities Act of 1933, as amended ("Securities Act"), and applicable
      blue sky laws, shall bear a legend substantially in the following
      form:

    

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY
      STATE.   THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
      TRANSFERABILITY AND RELEASE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
      PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
      TO
      REGISTRATION OR EXEMPTION THEREFROM.  THE ISSUER OF SUBSTANCE
      SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE
      IS
      IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.

    

    Any
      certificate for any Warrant Shares
      issued at any time in exchange or substitution for any certificate for any
      Warrant Shares bearing such legend, except a new certificate for any Warrant
      Shares issued after the acquisition of such Warrant Shares pursuant to a
      registration statement that has been declared effective under the Securities
      Act,  shall also bear such legend unless, in the opinion of counsel
      for the Company, the Warrant Shares represented thereby need no longer be
      subject to the restriction contained herein.  The provisions of this
      Section 9 shall be binding upon all subsequent holders of certificate for
      Warrant Shares bearing the above legend and all subsequent holders of this
      Warrant, if any.

    

    Holder
      shall have incidental
      registration rights as to the Warrant Shares under the Securities Act of 1933
      at
      least as favorable as any other holder of such registration rights with the
      same
      number of shares of Common Stock as held by Holder.

    

     any
      tax which may be payable in respect of any transfer involved in the issuance
      and
      delivery of any certificates in a name other than that of the then Holder of
      the
      Warrant being exercised.

    

    Section
      10.   MODIFICATION AND WAIVER.

    

    Neither
      this Warrant nor any term
      hereof may be changed, waived, discharged or terminated other than by an
      instrument in writing signed by the Company by the Holder.

    

    Section
      11.   NOTICES.

    

    Unless
      otherwise specified herein, any
      notice, request or other document required or permitted to be given or delivered
      to Holder or the Company shall be given in writing and shall be deemed effective
      given (i) upon personal delivery to the party to be notified, (ii) three (3)
      days after deposit in the United States mail if sent by registered or certified
      mail, postage prepaid, or (iii) one (1) day after deposit with an overnight
      courier, specifying next day delivery, with written verification of
      receipt.  All communications shall be sent to Holder at its address as
      shown on the books of the Company, or to the company at the address indicated
      therefor in the first paragraph of this Warrant.

    

    

    
      
        
        

      

      
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    Section
      12.   DESCRIPTIVE HEADINGS AND GOVERNING
      LAW.

    

     The
      descriptive headings of the
      several sections and paragraphs of this Warrant are inserted for convenience
      only and do not constitute a part of this Warrant.  This Warrant shall
      be construed and enforced in accordance with, and the rights of the parties
      shall be governed by, the laws of the State of Nevada, without regard to its
      conflicts of laws principles.

    

    Section
      13.   NO IMPAIRMENT.

    

    The
      Company will not, by amendment of
      its charter or through reorganization, consolidation, merger, dissolution,
      sale
      of assets or any other voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms of this Warrant, but will at all times in
      good faith assist in the carrying out of all such terms and in the taking of
      all
      such action as may be necessary or appropriate in order to protect the rights
      of
      the holder of this Warrant against impairment.

    

    IN
      WITNESS WHEREOF, the Company has
      duly caused this Warrant to be signed by its duly authorized officer and to
      be
      dated as of October 15, 2007.

    

    

    COMPANY:

    

    RHINO
      OUTDOOR INTERNATIONAL, INC.

    

    By:
      /s/ HOWARD
      PEARL                                    

         Howard
      Pearl President and CEO

    

    

    HOLDER:

    

    YAMA
      BUGGY, LLC

    

    By:
      /s/ GREG
      ALEXANDER                                 

         Greg
      Alexander, President

     

     

     

    
      
        
        

      

      
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    PURCHASE
      FORM

    

    

    DATED:___________________

    

    The
      undersigned hereby irrevocably
      elects to exercise the within Warrant to purchase ______________ shares of
      Common Stock and hereby makes payment of $____________________________
      in payment of the exercise price thereof, together with all applicable transfer
      taxes, if any.

    

    In
      exercising its rights to purchase
      the Common Stock, the undersigned hereby confirms and acknowledges the
      investment representations and warranties made in Section 10 of the
      Warrant.

    

    Please
      issue a certificate or
      certificates representing said shares of Common Stock in the name of the
      undersigned or in such other names as specified below.

    

    Name:
      _____________________________

    

    Signature:
      __________________________

    

    Address:
      ___________________________

    

                     ___________________________

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
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    ASSIGNMENT
      FORM

    

    

    DATED:______________________

    

    

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers to
      ____________________________ (“Assignee”) its rights to purchase up to
      _________________ shares of Common Stock represented by this Warrant and does
      hereby irrevocably constitute and appoint______________________,as attorney
      in
      fact, to transfer the same on the books of the Company, with full power of
      substitution in the premises.

    

    

    ______________________________

    

    

    

    THE
      SIGNATURE TO THIS ASSIGNMENT FORM MUST CORRESPOND WITH THE NAME AS IT APPEARS
      ON
      THE FACE OF THE WARRANT WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
      WHATSOEVER. OFFICERS OF CORPORATIONS AND THOSE ACTING IN A FIDUCIARY OR OTHER
      REPRESENTATION CAPACITY SHOULD FILE PROPER EVIDENCE OF AUTHORITY TO ASSIGN
      THE
      FOREGOING WARRANT.

    

    

    

    

    

    

    

    

    

    

    10roi_ex103-71017.htm

    Exhibit
      10.3

    SALES
      AND DISTRIBUTION AGREEMENT

    

    

    This
      Exclusive Agreement is made and
      entered into in Encinitas, California as of this 4th day of October 2007 by
      and
      between YamaBuggy LLC. (the "Company") and Yamabuggy Sales and
      Distribution, Inc. (the "Contractor").

    

    RECITALS

    

    The
      Company is engaged in the business
      of manufacturing, distribution and marketing of Yamaha JV powered dune buggy
      (the "Products").  Contractor is a newly formed sales
      organization and the Company desires to secure the services of Contractor for
      exclusive representation in North America upon the terms and conditions set
      forth below, and Contractor desires to be so retained by the
      Company.

    

    NOW,
      THEREFORE, in consideration of the
      foregoing, and the mutual covenants and promises contained herein, and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged by each party hereto to the other, it is agreed as
      follows:

    

    AGREEMENT

    

    1.        Provision
      of Services.  
      Contractor
      agrees to, and shall solicit sales of the Products to those independent retail
      accounts (collectively "Customers") who are or which may be
      interested in acquiring the Products in North America. All written orders taken
      by Contractor for sales of the Products shall be effective only upon written
      acceptance by the Company.  All credit approvals; billings and orders
      of the Products shall be processed and handled by the Company
      directly.  The Contractor shall have no authority to make any credit
      approvals or collections on behalf of the accounts of the Company, unless
      expressly authorized to do so.

    

    2.           Performance.  Contractor
      shall maintain his/her own schedule, and shall determine in his/her sole
      discretion the manner of performance and the amount of time to devote to the
      solicitation of sales of the Products, provided Company may from time to time
      establish performance goals for Contractor to obtain.  The failure of
      Contractor to reach these performance goals may be cause for termination of
      this
      Agreement.  Contractor will have 30 days to respond to Company’s
      performance goals and establish a collaborative effort with Company to increase
      sales.  Collaboration may require, but not limited to additional
      support in marketing, product development, and competitive analysis by company,
      to help support the expected goals.  Contractor will use all customary
      efforts to communicate with Company on establishing goals.  Both
      parties recognize the responsibilities of product sales within the context
      of
      this agreement and will work with best efforts to support and build the sales
      channel.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.           Remuneration.

    

    
      	
            	
              A.

            	
              The
                Contractor shall receive 5% of net revenues of the sales, and through
                a
                “lock- box” arrangement reconcile the revenue and release  95%
                of the revenue to the Company and 5% to the Contractor. Payment to
                Company
                shall be due upon receipt by lock box of payment for such
                Products.  The invoice price on which the payment shall be based
                shall not include any freight charges or taxes and shall be reduced
                by the
                amounts of any discounts, returns or allowances, but at no time shall
                the
                discount or allowance be greater than 10% of the Dealer sales price,
                assuring Contractor of a minimum of $200 per Product unit
                sold.

            

    

    

    

    4.           Sale
      Price of Products.  The
      Company shall determine all prices and terms of sale for its
      Products.  The Company will notify Contractor, in writing, of price
      changes.

    

    5.           Warranties.
      The Contractor shall not make any warranties with respect to the Products of
      the
      Company.  Any warranties to be made by the Company shall be reflected
      in its acceptance of an order, invoice or other contract forms.

    

    6.           Term.
      The initial term of this Agreement will be 5 years, and automatically
      renew for the same term, unless otherwise terminated by the Company and the
      Contractor.

    

    7.           Relationship
      of Parties.  Contractor
      will sell and market only products offered by YamaBuggy LLC. Contactor and
      it’
stockholders, under this agreement shall conduct itself for the sole benefit
      of
      YamaBuggy LLC.

    

    8.           Expenses.  Contractor
      shall be responsible for and shall pay, and hereby indemnifies Company against,
      all expenses incurred in connection with soliciting the sale of the Products
      by
      the contractor.   Company agrees to indemnify Contractor against
      all claims, expenses, related to product liability, production, corporate
      marketing, sales and any other expense or liability of Company.

    

    9.           Confidentiality.

    

    
      	
            	
              A.

            	
              Contractor
                and Company agrees that it will not, at any time during the term
                of this
                Agreement or thereafter, in any form or manner, directly or indirectly,
                voluntarily or involuntarily, disclose, furnish or make accessible
                to any
                person or other entity or use for his/her own benefit, other than
                in
                furtherance of the business and interests of the Company or Contractor,
                any Confidential Information (hereinafter defined) which it may obtain
                or
                have access to, receive, contribute to, originate, discover or relating
                to
                Trade Secrets (as that term is defined under applicable law in the
                State
                of Nevada), product specifications, customer lists, , prospective
                customers, services and sales information.  Confidential
                Information shall include, without limitation, any of the following
                types
                of information outside of the public
                domain:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (i)

            	
              Any
                and all forms of raw and other data relating to the Company's or
                Contractors business, the Products or processes, whether or not marked
                "confidential", derived from any and all sources,
                including without limitation:  meetings; information from
                correspondence or otherwise analyzed data; computer printouts and
                graphic
                materials.

            

    

    

    
      	
            	
              (ii)

            	
              Any
                and all materials, documents, information, systems, processes and
                techniques relating to the Products, the Company’s computer software,
                market or other research techniques, and any and all materials, documents,
                information, systems, processes obtained from or on behalf of or
                at the
                direction of the Company or Contractor, or any current or prospective
                customer of the Company or
                Contractor.

            

    

     

    
      	
            	
              (iii)

            	
              Any
                and all information, computer printouts, materials, documents, processes,
                schematics, compilations or reports relating to the sales history
                of any
                current or prospective customer, customer files, pricing structure,
                rebates, marketing information, customer base or business forms of
                the
                Company or Contractor.

            

    

    

    
      	
            	
              B.

            	
              Contractor
                confirms, acknowledges and agrees that any and all tangible and intangible
                records, tapes, notes, pictures, video tapes, printouts and documents
                which it may use, create, utilize or possess during the term of this
                Agreement, including but not limited to those written, produced or
                created
                by Contractor, are the sole and exclusive property of the Company
                and may
                not be duplicated for Contractor's own benefit without the express
                written
                consent of the Company which will not be unreasonably
                withheld.  All such items in Contractor's possession or control
                will be immediately delivered to the Company upon request and, if
                not
                earlier requested, upon the termination of this
                Agreement.

            

    

     

    
      	
            	
              C.

            	
              The
                provisions of this Section 10 shall survive termination of this Agreement,
                and shall survive the Term of this Agreement for a period of three
                (3)
                years following termination of the
                Agreement.

            

    

    

    10.           Restrictive
      Covenant.  In
      view of Contractor's and Company’s access to Confidential Information and Trade
      Secrets of the Company and Contractor, and in consideration of the value of
      such
      property to the Company and Contractor, during the term of this Agreement and
      for a period of two years after termination of this Agreement for any reason,
      Contractor and Company shall not compete, without the prior written consent
      of
      the Company.

    

    
      	
            	
              A.

            	
              Contact
                or solicit the trade or patronage of any of the customers of the
                Company
                or Contractor for his/her self or any other person or entity, with
                respect
                to the business engaged in by the Company or Contractor.  The
                term "customers" shall for purposes hereof be deemed to
                include, without limitation, the officers, directors, agents, employees,
                parents, subsidiaries and affiliates of such customers, and all persons
                or
                organizations with whom the Company or Contractor has done business
                during
                the term of this Agreement

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              B.

            	
              Solicit,
                induce or attempt to induce any employee of the Company  or
                Contractor to leave their respective Company's employ to become connected
                in any way with, or employ or utilize any such employee in any other
                business engaged in the sale or distribution of products similar
                to the
                Company's or Contractors.

            

    

     

    11.           Remedies.  Notwithstanding
      any dispute involving application of the injunctive relief as provided in
      Section 12 hereof, any other dispute or claim arising out of any provision
      of
      this Agreement, whether based on statute, regulation, contract, tort or
      otherwise, shall be submitted to arbitration before a single arbitrator pursuant
      to the commercial arbitration rules of the American Arbitration
      Association.  Any such arbitration shall be conducted in San Diego
      County, California.  An arbitration award rendered pursuant to this
      Section 12 shall be final and binding on the parties and may be submitted to
      any
      court of competent jurisdiction for entry of a judgment thereon.

    

    12.           No
      Employee Benefits.  Contractor
      shall not be eligible for any benefits payable to employees of Company or
      otherwise.

    

    13.           Assignment.  This
      Agreement may not be assigned by either party in whole or in part without the
      prior written consent of the other party hereto, except as specifically provided
      herein.  This Agreement may be assigned by the Company or Contractor,
      in its sole discretion, to any subsidiary or affiliate of the
      Company  or Contractor or to any successor of the Company or
      Contractor either by merger or acquisition of substantially all of the assets
      or
      the business of the Company or Contractor as a going concern.

    

    14.           Applicable
      Law.  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, without reference to any conflicts of law
      provisions.

    

    15.           Binding
      Effect.  This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and there respective heirs, legal or personal representatives, successors and
      assigns.

    

    16.           Notice.  All
      notices required hereunder shall be in writing and shall be deemed to have
      been
      given if delivered personally or by United States certified or registered mail,
      postage prepaid, return receipt requested, or by a recognized overnight delivery
      service to the parties at their respective addresses set forth below their
      signatures to this Agreement, or to such other address as shall be specified
      in
      writing by either party to the other in like fashion.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17.           Entire
      Agreement.  This
      Agreement sets forth and constitutes the entire agreement and understanding
      of
      the parties with respect to the subject matter hereof.  This Agreement
      supersedes any and all prior agreements, negotiations, correspondence,
      undertakings, promises, covenants, arrangements, communications, representations
      and warranties, whether oral or written (together the "Prior
      Communications") of any party to this Agreement and no party to this
      Agreement may rely or shall be deemed to have relied upon any Prior
      Communications.

     

    18.          Severability.  If
      any provision of this Agreement shall be declared by any court of competent
      jurisdiction to be illegal, void or unenforceable, the other provisions hereof
      shall not be affected thereby but shall remain in full force and
      effect.  Furthermore, if any of the restrictions regarding
      post-termination activities is found to be unreasonable or invalid, the court
      before which the matter is pending shall enforce the restriction to the maximum
      extent it deems to be valid and enforceable.  Such restrictions shall
      be considered divisible both as to time and as to geographical
      scope.

    

    19.           Waiver.  Failure
      of either party hereto to insist upon strict compliance with any of the terms,
      covenants and conditions hereof shall not be deemed a waiver or relinquishment
      of such terms, covenants and conditions or of any similar right or power
      hereunder at any subsequent time.

    

    20.           Amendment.  A
      written instrument executed by both parties hereto may not amend except this
      Agreement.

    

    21.           Construction.  Whenever
      applicable in this Agreement, the singular and the plural, and the masculine,
      feminine and neuter shall be freely interchangeable, as the context
      requires.  The Section headings or titles shall not in any way control
      the construction of the language herein, such headings or titles having been
      inserted solely for the purpose of simplified reference.  Words such
      as "herein", "hereof", "hereinafter", "hereby", and "hereinabove" when used
      in
      this Agreement refer to this Agreement as a whole, unless otherwise required
      by
      the context.  The Recitals constitute an integral part of this
      Agreement and are fully incorporated herein.  All Section and
      subsection references set forth herein refer to the corresponding Sections
      and
      subsections of this Agreement.

    

    22.           Further
      Assurances.  Contractor
      and Company agrees to and shall execute and deliver such further instruments
      and
      perform such further acts as may be requested by the Company or Contractor,
      or
      which are otherwise required to carry out the intent and purposes of this
      Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    23.           Venue.  All
      actions or proceedings in any way, manner or respect arising out of or from
      or
      related to this Agreement shall be arbitrated only in San Diego County, State
      of
      California.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day,
      month and year first above written.

    

    Company:
      YamaBuggy LLC

    

    

    /s/
      GREG ALEXANDER    10/04/2007

    (Signature/
      Date)

    

    

    Contractor:
      Yamabuggy Sales and Distribution, Inc.

    

    

    /s/
      JOHN WONG        10/04/2007

    (
      Signature/ Date)

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