Document:

Exhibit 10.7

THIS WARRANT AND THE SHARES OF SERIES B CONVERTIBLE PREFERRED STOCK ISSUABLE
UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL
HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

SERIES B WARRANT
TO PURCHASE

SHARES OF SERIES B CONVERTIBLE PRERFERRED STOCK

OF

NASCENT WINE COMPANY, INC.

Expires July 3,
2014

No.: W-B-07-    

Date of Issuance:
July 3, 2007

Number of Series B
Preferred Shares:                 

FOR VALUE
RECEIVED, the undersigned, Nascent Wine Company, Inc., a Nevada corporation
(together with its successors and assigns, the “Issuer”), hereby
certifies that                                                         
or its registered assigns is entitled to subscribe for and purchase, during the
Term (as hereinafter defined), up to                                       
(               )
shares (subject to adjustment as hereinafter provided) of the duly authorized,
validly issued, fully paid and non-assessable Series B Convertible Preferred
Stock of the Issuer (the “Series B Preferred Stock”), at an exercise
price per share equal to the Warrant Price then in effect, subject, however, to
the provisions and upon the terms and conditions hereinafter set forth.  The designation, rights, preferences and
other terms and provisions of the Series B Convertible Preferred Stock are set
forth in the Certificate of Designation of the Relative Rights and Preferences
of the Series B Convertible Preferred Stock attached hereto as Exhibit A
(the “Certificate of Designation”). 
Capitalized terms used in this Warrant and not otherwise defined herein
shall have the respective meanings specified in Section 5 hereof.

1.             Term.  The term of this Warrant shall commence on
July 3, 2007 and shall expire at 6:00 p.m., eastern time, on July 3, 2014 (such
period being the “Term”).

2.                                       Method
of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.

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(a)           Time of Exercise; Automatic
Exercise Date.  The purchase rights
represented by this Warrant may be exercised in whole or in part during the
Term.  On such date (i) the Board of
Directors of the Issuer consents to an acquisition (a “Potential Acquisition”)
by the Company, in accordance with Section 3.26 of the Purchase Agreement, and
(ii) the Holder consents to the Potential Acquisition, using its good faith
business judgment (each, an “Automatic Exercise Date”), all or a portion
of the Warrant shall automatically and without any action on the part of the
Holder be exercised for the Warrant Stock; provided, however,
that only that portion of the Warrant must be exercised which has an aggregate
Warrant Price equal to the consideration needed to fund the Potential
Acquisition; provided, however, that if only a portion of the
Warrant is exercised pursuant to this Section 2(a), the Term of the Warrant
shall continue in accordance with Section 1 hereof.  Notwithstanding the foregoing to the
contrary, the purchase rights represented by this Warrant may only be exercised
upon the full exercise of all of the Series A-1 Warrants issued by the Issuer
pursuant to the Purchase Agreement

(b)           Method of Exercise.  The Holder hereof may exercise this Warrant,
in whole or in part, by delivering the exercise form attached hereto duly
executed at the principal office of the Issuer, and by the payment to the
Issuer of an amount of consideration therefor equal to the Warrant Price in
effect on the date of such exercise multiplied by the number of shares of
Warrant Stock with respect to which this Warrant is then being exercised,
payable by certified or official bank check or by wire transfer to an account
designated by the Issuer.  The Issuer
shall file the Certificate of Designation with the Secretary of State of the
State of Nevada promptly upon the initial exercise of this Warrant by the
Holder.

(c)           Issuance of Series B Preferred
Stock Certificates.  In the event of
any exercise of this Warrant in accordance with and subject to the terms and
conditions hereof, certificates for the shares of Warrant Stock so purchased
shall be dated the date of such exercise and delivered to the Holder hereof
within a reasonable time, not exceeding five (5) Trading Days after such
exercise, and the Holder hereof shall be deemed for all purposes to be the
holder of the shares of Warrant Stock so purchased as of the date of such
exercise.  The Holder shall deliver this
original Warrant, or an indemnification undertaking with respect to such
Warrant in the case of its loss, theft or destruction, at such time that this
Warrant is fully exercised.  With respect
to partial exercises of this Warrant, the Issuer shall keep written records for
the Holder of the number of shares of Warrant Stock exercised as of each date
of exercise.

(d)           Transferability of Warrant.  Subject to Section 2(f) hereof, this Warrant
may be transferred by a Holder, in whole or in part, without the consent of the
Issuer.  If transferred pursuant to this
paragraph, this Warrant may be transferred on the books of the Issuer by the
Holder hereof in person or by duly authorized attorney, upon surrender of this
Warrant at the principal office of the Issuer, properly endorsed (by the Holder
executing an assignment in the form attached hereto) and upon payment of any
necessary transfer tax or other governmental charge imposed upon such
transfer.  This Warrant is exchangeable
at the principal office of the Issuer for Warrants to purchase the same aggregate
number of shares of Warrant Stock, each new Warrant to represent the right to
purchase such number of shares of Warrant Stock as the Holder hereof shall
designate at the time of such exchange. 
All Warrants issued on transfers or exchanges shall be dated the
Original Issue Date and shall be identical with this Warrant except as to the
number of shares of Warrant Stock issuable pursuant thereto.

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(e)           Continuing Rights of Holder.  The Issuer will, at the time of or at any
time after each exercise of this Warrant, upon the request of the Holder hereof,
acknowledge in writing the extent, if any, of its continuing obligation to
afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant, provided
that if any such Holder shall fail to make any such request, the failure shall
not affect the continuing obligation of the Issuer to afford such rights to
such Holder.

(f)            Compliance with Securities Laws.

(i)            The Holder of this Warrant, by
acceptance hereof, acknowledges that this Warrant and the shares of Warrant
Stock to be issued upon exercise hereof are being acquired solely for the
Holder’s own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose of
this Warrant or any shares of Warrant Stock to be issued upon exercise hereof
except pursuant to an effective registration statement, or an exemption from
registration, under the Securities Act and any applicable state securities
laws.

(ii)           This Warrant and all certificates
representing shares of Warrant Stock issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following form:

THIS WARRANT AND THE
SHARES OF SERIES B
CONVERTIBLE PREFERRED STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR THE
SECURITIES LAWS OF ANY STATE.  THESE
SECURITIES ARE RESTRICTED SECURITIES AS DEFINED IN RULE 144 PROMULGATED UNDER
THE ACT AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE DISTRIBUTED EXCEPT
(A) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, (B) IN COMPLIANCE WITH RULE 144 AND AN
EXEMPTION UNDER APPLICABLE STATE SECURITIES LAWS, OR (C) PURSUANT TO AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION OR
COMPLIANCE IS NOT REQUIRED.

(g)           Accredited Investor Status.  In no event may the Holder exercise this
Warrant in whole or in part unless the Holder is an “accredited investor” as
defined in Regulation D under the Securities Act.

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3.             Stock Fully Paid; Reservation
and Listing of Shares; Covenants.

(a)           Stock Fully Paid.  The Issuer represents, warrants, covenants
and agrees that all shares of Warrant Stock which may be issued upon the
exercise of this Warrant or otherwise hereunder will, when issued in accordance
with the terms of this Warrant, be duly authorized, validly issued, fully paid
and non-assessable and free from all taxes, liens and charges created by or
through the Issuer.  The Issuer further
covenants and agrees that during the period within which this Warrant may be
exercised, the Issuer will at all times have authorized and reserved for the
purpose of the issuance upon exercise of this Warrant a number of authorized
but unissued shares of Series B Preferred Stock equal to at least one hundred
(100%) percent of the number of shares of Series B Preferred Stock issuable
upon exercise of this Warrant.

(b)           Reservation.  If any shares of Series B Preferred Stock
required to be reserved for issuance upon exercise of this Warrant or as
otherwise provided hereunder require registration or qualification with any
Governmental Authority under any federal or state law before such shares may be
so issued, the Issuer will in good faith use its best efforts as expeditiously
as possible at its expense to cause such shares to be duly registered or
qualified.

(c)           Covenants.  The Issuer shall not by any action including,
without limitation, amending the Articles of Incorporation or the by-laws of
the Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other 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 actions as may be necessary or appropriate
to protect the rights of the Holder hereof. 
Without limiting the generality of the foregoing, the Issuer will (i)
not amend or modify any provision of the Articles of Incorporation or by-laws
of the Issuer in any manner that would adversely affect the rights of the
Holders of the Warrants, (ii) take all such action as may be reasonably
necessary in order that the Issuer may validly and legally issue fully paid and
nonassessable shares of Series B Preferred Stock, free and clear of any liens,
claims, encumbrances and restrictions (other than as provided herein) upon the
exercise of this Warrant, and (iii) use its best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be reasonably necessary to enable the Issuer to
perform its obligations under this Warrant.

(d)           Loss, Theft, Destruction of
Warrants.  Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing
the right to purchase the same number of shares of Series B Preferred Stock.

(e)           Payment of Taxes.  The Issuer will pay any documentary stamp
taxes attributable to the initial issuance of the Warrant Stock issuable upon
exercise of this Warrant; provided, however, that the Issuer
shall not be required to pay any tax or taxes which may be payable in

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respect of any
transfer involved in the issuance or delivery of any certificates representing
Warrant Stock in a name other than that of the Holder in respect to which such
shares are issued.

4.             [Intentionally Omitted.]

5.             Definitions.  For the purposes of this Warrant, the
following terms have the following meanings:

“Articles of
Incorporation” means the Articles of Incorporation of the Issuer as in
effect on the Original Issue Date, and as hereafter from time to time amended,
modified, supplemented or restated in accordance with the terms hereof and
thereof and pursuant to applicable law.

“Automatic
Exercise Date” shall have the meaning set forth in Section 2(a).

“Board” shall mean
the Board of Directors of the Issuer.

“Capital Stock”
means and includes (i) any and all shares, interests, participations or other
equivalents of or interests in (however designated) corporate stock, including,
without limitation, shares of preferred or preference stock, (ii) all
partnership interests (whether general or limited) in any Person which is a
partnership, (iii) all membership interests or limited liability company
interests in any limited liability company, and (iv) all equity or ownership
interests in any Person of any other type.

“Common Stock”
means the Common Stock, $0.001 par value per share, of the Issuer and any other
Capital Stock into which such stock may hereafter be changed.

“Governmental
Authority” means any governmental, regulatory or self-regulatory entity,
department, body, official, authority, commission, board, agency or
instrumentality, whether federal, state or local, and whether domestic or
foreign.

“Holders”
mean the Persons who shall from time to time own any Warrant.  The term “Holder” means one of the Holders.

“Issuer”
means Nascent Wine Company, Inc., a Nevada corporation, and its successors.

“Majority
Holders” means at any time the Holders of Warrants exercisable for a
majority of the shares of Warrant Stock issuable under the Warrants at the time
outstanding.

“Original Issue
Date” means July 3, 2007.

“OTC Bulletin
Board” means the over-the-counter electronic bulletin board.

“Person” means an
individual, corporation, limited liability company, partnership, joint stock
company, trust, unincorporated organization, joint venture, Governmental

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Authority or other entity of whatever nature.

“Potential Acquisition”
shall have the meaning set forth in Section 2(a).

“Purchase
Agreement” means the Series A Convertible Preferred Stock Purchase
Agreement dated as of July 3, 2007, among the Issuer and the Purchasers.

“Purchasers”
means the purchasers of the Series A Convertible Preferred Stock and the
Warrants issued by the Issuer pursuant to the Purchase Agreement.

“Securities Act”
means the Securities Act of 1933, as amended, or any similar federal statute
then in effect.

“Subsidiary”
means any corporation at least 50% of whose outstanding Voting Stock shall at
the time be owned directly or indirectly by the Issuer or by one or more of its
Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

“Term” has
the meaning specified in Section 1 hereof.

“Trading Day”
means (a) a day on which the Common Stock is traded on the OTC Bulletin Board,
or (b) if the Common Stock is not traded on the OTC Bulletin Board, a day on
which the Common Stock is quoted in the over-the-counter market as
reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding its functions of reporting prices); provided,
however, that in the event that the Common Stock is not listed or quoted
as set forth in (a) or (b) hereof, then Trading Day shall mean any day except
Saturday, Sunday and any day which shall be a legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law
or other government action to close.

“Voting Stock”
means, as applied to the Capital Stock of any corporation, Capital Stock of any
class or classes (however designated) having ordinary voting power for the
election of a majority of the members of the Board of Directors (or other
governing body) of such corporation, other than Capital Stock having such power
only by reason of the happening of a contingency.

“Warrants”
means the Warrants issued and sold pursuant to the Purchase Agreement,
including, without limitation, this Warrant, and any other warrants of like
tenor issued in substitution or exchange for any thereof pursuant to the
provisions hereof.

“Warrant Price”
means thirty-three percent (33%) of the average of the Per Share Market Price
for the thirty (30) days immediately preceding the date of the initial exercise
of this Warrant.

“Warrant Share
Number” means at any time the aggregate number of shares of Warrant Stock which
may at such time be purchased upon exercise of this Warrant, after giving
effect to all prior adjustments and increases to such number made or required
to be made under the terms hereof.

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“Warrant Stock”
means the shares of Series B Preferred Stock issuable upon exercise of any
Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

6.             Amendment and Waiver.  Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either generally
or in a particular instance and either retroactively or prospectively), by a
written instrument or written instruments executed by the Issuer and the
Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 6 without the consent of the Holder of this
Warrant.  No consideration shall be
offered or paid to any person to amend or consent to a waiver or modification
of any provision of this Warrant unless the same consideration is also offered
to all holders of the Warrants.

7.             Governing Law; Jurisdiction.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of New York,
without giving effect to any of the conflicts of law principles which would
result in the application of the substantive law of another jurisdiction.  This Warrant shall not be interpreted or
construed with any presumption against the party causing this Warrant to be
drafted.  The Issuer and the Holder agree
that venue for any dispute arising under this Warrant will lie exclusively in
the state or federal courts located in New York County, New York, and the
parties irrevocably waive any right to raise forum non
conveniens or any other argument that New York is not the proper
venue.  The Issuer and the Holder
irrevocably consent to personal jurisdiction in the state and federal courts of
the state of New York.  The Issuer and
the Holder consent to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address in effect for
notices to it under this Warrant and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing in this Section 7 shall affect or
limit any right to serve process in any other manner permitted by law.  The Issuer and the Holder hereby agree that
the prevailing party in any suit, action or proceeding arising out of or
relating to this Warrant or the Purchase Agreement shall be entitled to
reimbursement for reasonable legal fees from the non-prevailing party.  The parties hereby waive all rights to a
trial by jury.

8.             Notices.  Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery by telecopy or facsimile 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 Issuer:

  	
   

  	
  Nascent Wine Company, Inc.

  
	
   

  	
   

  	
  2355 Paseo de las Americas

  
	
   

  	
   

  	
  San Diego, California 92154

  
	
   

  	
   

  	
  Attention: Sandro Piancone

  
	
   

  	
   

  	
  Tel. No.: (619) 661-0458

  
	
   

  	
   

  	
  Fax No.: (619) 661-9735

  

 

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with copies (which copies

shall not constitute notice)

	
  to:

  	
   

  	
  The Law Offices of Gary A. Agron

  
	
   

  	
   

  	
  5445 DTC Parkway

  
	
   

  	
   

  	
  Suite 520

  
	
   

  	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
   

  	
  Attention: Gary A. Agron

  
	
   

  	
   

  	
  Tel. No.: (303) 770-7254

  
	
   

  	
   

  	
  Fax No.: (303) 770-7257

  
	
   

  	
   

  	
   

  
	
  If to any Holder:

  	
   

  	
  At the address of such Holder set forth in the
  Purchase Agreement.

  
	
   

  	
   

  	
   

  
	
  with copies (which copies

  	
   

  	
   

  
	
  shall not constitute notice)

  	
   

  	
   

  
	
  to:

  	
   

  	
  Kramer Levin Naftalis & Frankel LLP

  
	
   

  	
   

  	
  1177 Avenue of the Americas

  
	
   

  	
   

  	
  New York, New York 10036

  
	
   

  	
   

  	
  Attention: Christopher S. Auguste

  
	
   

  	
   

  	
  Tel. No.: (212) 715-9100

  
	
   

  	
   

  	
  Fax No.: (212) 715-8000

  

 

Any party hereto may from time to time change its
address for notices by giving written notice of such changed address to the
other party hereto.

9.             Warrant Agent.  The Issuer may, by written notice to each
Holder of this Warrant, appoint an agent having an office in New York, New York
for the purpose of issuing shares of Warrant Stock on the exercise of this
Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant
pursuant to subsection (d) of Section 2 hereof or replacing this Warrant
pursuant to subsection (d) of Section 3 hereof, 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 agent.

10.           Remedies.  The Issuer stipulates that the remedies at
law of the Holder of this Warrant in the event of any default or threatened
default by the Issuer in the performance of or compliance with any of the terms
of this Warrant are not and will not be adequate and that, to the fullest
extent permitted by law, such terms may be specifically enforced by a decree
for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or otherwise.

11.           Successors and Assigns.  This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders
of Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holder of Warrant Stock.

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12.           Modification and Severability.  If, in any action before any court or agency
legally empowered to enforce any provision contained herein, any provision
hereof is found to be unenforceable, then such provision shall be deemed
modified to the extent necessary to make it enforceable by such court or
agency.  If any such provision is not
enforceable as set forth in the preceding sentence, the unenforceability of
such provision shall not affect the other provisions of this Warrant, but this
Warrant shall be construed as if such unenforceable provision had never been
contained herein.

13.           Headings.  The headings of the Sections of this Warrant
are for convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.

14.         Demand Registration
Rights.

(a)           The Majority Holders may make a
written request to the Issuer (a “Demand Notice”) for registration under
the Securities Act (a “Demand Registration”), pursuant to this Section
14 of all of its shares of Common Stock issuable upon conversion of the Warrant
Stock issuable upon exercise of this Warrant (the “Registrable Securities”);
provided, however, that the Issuer shall not be obligated to
effect more than two Demand Registrations pursuant to this Section 14 (which
registration shall be made on Form SB-2, or a successor form thereto, if
available for use by the Issuer).  The
Issuer shall use its reasonable best efforts to file a registration statement
under the Securities Act providing for the resale of all of the Registrable
Securities within thirty (30) days following delivery of the Demand Notice (the
“Filing Date”) and have it declared effective within ninety (90) days
following delivery of the Demand Notice (the “Effectiveness Date”).  The Issuer agrees to use its reasonable best
efforts to keep any such registration statement continuously effective for
resale of the Registrable Securities for so long as the Majority Holders shall
request, but in no event shall the Issuer be required to maintain the
effectiveness of such registration statement later than the date that the
Registrable Securities may be offered for resale to the public pursuant to Rule
144(k) (the “Effectiveness Period”).

(b)           The
Majority Holders may, at any time prior to the effective date of the
registration statement relating to such registration, revoke such request by
providing a written notice to the Issuer revoking such request.  If the Majority Holders shall revoke any
demand for registration or such Demand Registration otherwise fails to become
effective as a result of any action or inaction by such Majority Holders, the
Majority Holders shall count such revoked demand as one completed demand for
registration pursuant to this Section 14.

(c)           A
Demand Registration requested pursuant to this Section 14 will not be deemed to
have been effected unless the registration statement relating thereto has
become effective under the Securities Act and remained effective for a period
of ninety (90) days following the effective date of such registration
statement.

(d)           The
Issuer and the Holder agree that the Holder will suffer damages if the
registration statement is not filed on or prior to the Filing Date and not
declared effective by the SEC on or prior to the Effectiveness Date.  The Issuer and the Holder further agree that
it would not be feasible to ascertain the extent of such damages with precision.  Accordingly, if (A) the registration statement
is not filed on or prior to the Filing Date, or (B) the registration statement
is not declared effective by the SEC on or prior to the Effectiveness Date, or
(C) the Issuer fails

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to file with the SEC a request for acceleration in accordance with Rule
461 promulgated under the Securities Act within three (3) business days of the
date that the Issuer is notified (orally or in writing, whichever is earlier)
by the SEC that a registration statement will not be “reviewed,” or not subject
to further review, or (D) the registration statement is filed with and declared
effective by the SEC but thereafter ceases to be effective at any time prior to
the expiration of the Effectiveness Period, or (E) trading in the Common Stock
shall be suspended or if the Common Stock is no longer quoted on or delisted
from the principal exchange on which the Common Stock is then traded for any
reason for more than three (3) business days in the aggregate (any such failure
or breach being referred to as an “Event,” and for purposes of clauses
(A) and (B) the date on which such Event occurs, or for purposes of clause (C)
the date on which such three (3) business day period is exceeded, or for
purposes of clause (D) after more than fifteen (15) business days, or for
purposes of clause (E) the date on which such three (3) business day period is
exceeded, being referred to as “Event Date”), the Issuer shall pay an
amount as liquidated damages to the Holder, payable in cash, equal to one and
one-half percent (1.5%) of the aggregate Warrant Price paid pursuant to the
exercise of this Warrant for each calendar month or portion thereof thereafter
from the Event Date until the applicable Event is cured; provided, however,
that in no event shall the amount of liquidated damages payable at any time and
from time to time to any Holder pursuant to this Section 13(d) exceed an
aggregate of fifteen percent (15%) of the aggregate Warrant Price paid pursuant
to the exercise of this Warrant. 
Liquidated damages payable by the Issuer pursuant to this Section 13(d)
shall be payable on the first (1st) business day of each thirty (30) day
period following the Event Date.

(e)           The
rights contained in this Section 14 shall survive the expiration or termination
of this Warrant.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

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IN WITNESS
WHEREOF, the Issuer has executed this Series B Warrant as of the day and year
first above written.

	
  

  	
  NASCENT WINE COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

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EXERCISE FORM

SERIES B WARRANT

NASCENT WINE
COMPANY, INC.

The undersigned                         ,
pursuant to the provisions of the within Warrant, hereby elects to purchase         
shares of Series B Preferred Stock of Nascent Wine Company, Inc. covered by the
within Warrant.

	
  Dated:
  

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

The undersigned is an “accredited
investor” as defined in Regulation D under the Securities Act of 1933, as
amended.

ASSIGNMENT

FOR VALUE
RECEIVED,                                        
hereby sells, assigns and transfers unto                                  
the within Warrant and all rights evidenced thereby and does irrevocably
constitute and appoint                        ,
attorney, to transfer the said Warrant on the books of the within named
corporation.

	
  Dated: 

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

PARTIAL ASSIGNMENT

FOR VALUE
RECEIVED,                             
hereby sells, assigns and transfers unto                                 
the right to purchase                     
shares of Warrant Stock evidenced by the within Warrant together with all
rights therein, and does irrevocably constitute and appoint                            ,
attorney, to transfer that part of the said Warrant on the books of the within named
corporation.

	
  Dated: 

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

FOR USE BY THE
ISSUER ONLY:

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This Warrant No.
W-       canceled (or transferred or exchanged)
this             day of                 ,
               ,
shares of Warrant Stock issued therefor in the name of                        ,
Warrant No. W-        issued for          
shares of Warrant Stock in the name of                     .

 13
 

 

EXHIBIT A

Certificate of
Designation of the Series B Convertible Preferred Stock

 

 14Exhibit
10.8

STOCKHOLDERS
AGREEMENT

STOCKHOLDERS
AGREEMENT (this “Agreement”) dated as of July 3, 2007 (the “Effective
Date”) by and among Nascent Wine Company, Inc., a Nevada corporation (the “Company”),
Sandro Piancone, Piancone Family Trust Sandro and Kimberly Piancone Trustees,
and Victor Petrone (each, a “Principal Stockholder” and, collectively,
the “Principal Stockholders”), and each of the investors set forth on
the signature pages hereto (each, an “Investor” and collectively, the “Investors”).

RECITALS:

WHEREAS, pursuant
to the Series A Convertible Preferred Stock Purchase Agreement dated of even
date herewith among the Company and the Investors (the “Purchase Agreement”),
the Investors have agreed to purchase from the Company, and the Company has agreed
to issue and sell to the Investors, the Series A Preferred Stock (as defined
below), subject to the terms and conditions of the Purchase Agreement; and

WHEREAS, as
of the Effective Date, each of the Stockholders owns the number of shares of
Common Stock and Series A Preferred Stock specified with respect to such
Stockholder on Schedule I
attached hereto, and such shares as of the Effective Date, represent in the
aggregate [     ]% of the shares of Common Stock and
all of the shares of the Series A Preferred Stock of the Company as specified
with respect to such Stockholder on Schedule I;
and

WHEREAS, the
parties hereto desire to set forth their mutual agreements and understandings
with respect to, among other things, certain of their respective rights, duties
and obligations and certain transactions and arrangements in respect of the
Company, the Capital Stock (as defined below) of the Company and related
matters.

NOW,
THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby agree
as follows:

ARTICLE  I

DEFINITIONS

1.1          Defined Terms and Interpretation. 
(a)  Capitalized terms used herein
without definition have the meanings ascribed to such terms in the Purchase
Agreement.  As used in this Agreement,
the following terms shall have the following meanings:

“Affiliate” means,
when used with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, controls or is controlled by or
is under common control with the Person specified.

 1
 

 

“Agreement”
means this Stockholders Agreement, together with Schedule
I hereto, as the same may be amended, supplemented or modified
in accordance with the terms hereof from time to time.

“Capital
Stock” means any and all shares, interests, participation or other
equivalents (however designated) of capital stock of the Company, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all rights, warrants, securities (including, without limitation,
convertible debt securities) or options to purchase any of the foregoing.

“Cause”
means, with respect to any Investor Designee or Replacement Investor Designee,
as applicable, (i) any act of breach of such individual’s fiduciary duty
against the Company by such individual which under applicable law constitutes a
violation of his legal obligation to the Company or which creates a material
legal liability for the Company; (ii) if such individual is convicted of, or
pleads guilty or nolo contendere with respect to, theft, fraud or a felony
under federal or applicable state law; or (iii) if such individual commits any
act of personal conduct that results in any member of the Company’s Board of
Directors suffering liability under federal or applicable state law for
discrimination or sexual or other forms of harassment or other similar
liabilities to subordinate employees.

“Equity Issuance”
means the issuance by the Company or any of its subsidiaries of any of its
Capital Stock, other than (a) any Capital Stock issued pursuant to any stock
option, stock grant, stock purchase, stock bonus or similar plans which have
been approved by the Company’s Board of Directors, including the consent of the
majority of the Investor Designees, (b) any Capital Stock issuable upon
conversion, exercise or exchange of securities then outstanding, (c) any
Capital Stock issuable to customers, vendors or other Persons in similar
commercial situations with the Company or any of its subsidiaries in connection
with corporate partnering agreements or other significant commercial
transactions approved by the Board of Directors of the Company or such
subsidiary, (d) any securities issuable solely in consideration for the
acquisition (by merger, consolidation, purchase or otherwise) by the Company or
any of its subsidiaries of all or substantially all of the stock or assets of
any other entity or business segment of any other entity, (e) any securities
issued by a subsidiary to its parent, and (f) shares of Series A Preferred
Stock issued to the Investors pursuant to any subsequent Closings under the
Purchase Agreement.

“Fiscal
Year” means the twelve consecutive calendar months ending on December 31 of
any year.

“Governmental
Authority” means any nation or government, any state or any political
subdivision thereof or any Person exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government or any
other regulatory authority.

“Investor
Designees” has the meaning set forth in Section 2.1.

“Involuntary
Transfer” means a Transfer or proposed Transfer by a Stockholder by
operation of law or by reason of death.

“Person” means an individual, corporation, limited liability
company, partnership, association, trust or other legal entity.

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“Replacement
Investor Designee” has the meaning set forth in Section 2.1.

“Requirement
of Law” means as to any Person, the articles or certificate of
incorporation and by-laws or other organizational or governing documents of
such Person, and any law, statute, treaty, rule or regulation, order or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property, or
to which such Person or any of its property is subject.

“Securities Act”
means the Securities Act of 1933, as amended.

“Series
A Preferred Stock” means the Series A Preferred Stock of the Company, par
value $.001 per share and stated value $[          ] per share, having the rights, preferences
and privileges as set forth in the Certificate of Designation.

“Stockholder”
means each of the following Persons: (i) each Principal Stockholder, (ii) each
Investor and (iii) each other Person that becomes a party to this Agreement
from time to time pursuant to Section 3.1(b) hereof.

“Transfer”
means, with respect to any Capital Stock, (a) any issuance, sale, assignment or
transfer of such Capital Stock or any right or interest therein; (b) any pledge
or hypothecation of such Capital Stock or any interest therein; (c) any grant,
sale or other transfer of securities convertible or exercisable into or
exchangeable for or other options, warrants or rights to acquire such Capital
Stock or any interest therein; and (d) any other direct or indirect transfer of
such Capital Stock or any interest therein, in each case, whether voluntary,
involuntary, by operation of law or otherwise.

(b)            The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
section and schedule references are to this Agreement unless otherwise
specified.

(c)           The meanings given to terms defined
herein shall be equally applicable to the singular and plural forms of such
terms.

ARTICLE  II

VOTING RIGHTS; BOARD OF
DIRECTORS AND RELATED MATTERS

2.1          Investor Board Designees.  At the Effective Date and for so long as the Investors hold shares of
Series A Preferred Stock, the Investors shall have the right to designate two
(2) individuals (the “Investor Designees”) to serve as members of the
Company’s Board of Directors, which initial Investor Designees shall be
appointed by the Company no later than 30 days following the Effective Date; provided,
however, in no event shall the number of Investor Designees be
proportionately less than the Investors’ aggregate equity interest of the
Company (for purposes of making any
determination or calculation pursuant to this Section 2.1, but for such
purposes only, as of any date of determination or calculation, all of the
Capital Stock of the Company that is then convertible or exercisable into or
exchangeable for Common Stock shall be deemed to have been so converted,
exercised or exchanged in full as of such date of

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determination or calculation) provided, further,
that, notwithstanding the foregoing clause, in no event shall the Investors
have the right to designate less than two (2) Investor Designees.  During such Investor Designee’s term thereof,
each Investor Designee shall have the right to attend, observe, and vote at,
all annual and special meetings of the Board of Directors.  The
Company agrees to use its best efforts to cause each of the Investor Designees
to be nominated by the Board of Directors of the Company for election to such
Board by the Company stockholders promptly following the date the Investors
notify the Company of their desire to appoint the Investor Designees.  In the event an Investor Designee ceases to
be a member of the Company’s Board of Directors for any reason, the individual
designated by a majority-in-interest of the Investors as a replacement (the “Replacement
Investor Designee”) shall be elected to the Company’s Board of Directors by
the remaining members of such Board and the Company shall use its best efforts
to cause such Replacement Investor Designee to be nominated by the Board of
Directors of the Company for election to such Board by the Company’s
stockholders at the time and in the manner proper for such nomination and
election.  Subject to the terms of this Section
2.1, a majority-in-interest of the Investors shall retain the right to
designate two (2) directors pursuant to this Section 2.1.  In lieu of selecting the board designees, a
majority-in-interest of the Investors may, in their sole discretion, select up
to two (2) individuals to act as observers at the meetings of the Company’s
Board of Directors.  The Investors’ board
designees (be it an Investor Designee or Replacement Investor Designee) may not
be removed or replaced without the prior written consent of a
majority-in-interest of the Investors, except for any removal of such
individual for Cause.  The Company shall
also use its best efforts to cause its Board of Directors to take all necessary
and appropriate action to effect promptly the election of the Investor
Designees and/or any Replacement Investor Designee pursuant to the terms of
this Section 2.1.  The Principal
Stockholders agree to vote their shares of Capital Stock to elect the Investor
Designees or any Replacement Investor Designee.

2.2          Reimbursement of Expenses.  The
Company shall promptly reimburse the reasonable expenses (including travel
expenses) of the Investor Designees and any such replacement elected to the
Board of Directors of the Company pursuant to Section 2.1 hereof related
to attending meetings of (i) the Board of Directors of the Company and (ii) any
committee of the Board of Directors of the Company, each of the foregoing in
accordance with the policy of the Company as in effect from time to time.

ARTICLE  III

AGREEMENTS RELATING TO
THE CAPITAL STOCK
      OF THE COMPANY AND OTHER MATTERS    

3.1                               Transfer of Capital Stock.

(a)           Each
Stockholder agrees with the Company and with each other Stockholder that he or
it will not, directly or indirectly, Transfer any Capital Stock of the Company,
any stock certificates representing the same or any voting trust certificate
issued with respect to said Capital Stock, now or hereafter at any time owned
by him or it, except as may be specifically permitted pursuant to this
Agreement and applicable law; provided that,
subject to Section 3.1(b) hereof, a Stockholder may Transfer any shares
of Capital Stock held by him or it to (each such Transfer, an “Excluded
Transfer”):

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(i)                                   an immediate family member (parent, sibling,
spouse, child, niece, nephew, first cousin or grandchild);

(ii)                                  a trust, for estate planning purposes, whose
sole beneficiaries are immediate family members of such Stockholder;

(iii)                               an Affiliate;

(iv)                              the Company;

(v)                                 to a Person in connection with the exchange
of all of the then-outstanding Capital Stock of the Company to such Person in
an Approved Transfer (as defined in Section 3.4(a) hereof), subject to Section
3.4 hereof; or

(vi)                              pursuant to an Involuntary Transfer.

(b)           (i)            Notwithstanding anything contained
herein to the contrary, any Transfer of Capital Stock of the Company by a
Stockholder pursuant to an Excluded Transfer (other than an Excluded Transfer
under Section 3.1(a)(iv), (v) or (vi) hereof) shall not
relieve the Stockholder of his obligations hereunder and (other than an
Excluded Transfer under Section 3.1(a)(iv) or (v) hereof) shall
only be valid if the Person to whom such Capital Stock is Transferred, prior to
the Transfer, agrees in writing to be bound by the terms of this Agreement as
and to the same extent that the Stockholder was bound by this Agreement
immediately prior to such Transfer.  Each
such Transferee shall be entitled to all the rights under this Agreement to which
the Stockholder was entitled immediately prior to such Transfer.  Any purported Transfer without obtaining this
agreement by the Transferee shall be deemed void and of no further effect and
shall be governed by the provisions of paragraph (ii) below.  Any Transfer of Capital Stock of the Company
by a Stockholder pursuant to an Excluded Transfer under Section 3(a)(iv)
or (v) hereof shall result in such Capital Stock no longer being subject
to this Agreement and the Transferee of such Capital Stock shall not be bound
by this Agreement by reason of such Transfer.

(ii)           In the event a
Transfer of any Capital Stock by any Stockholder has taken place or remains in
place in violation of the provisions of this Article III, such Transfer shall
be void and of no effect, and no dividend of any kind whatsoever nor any
distribution pursuant to liquidation or otherwise shall be paid by the Company
or the Stockholder to the Transferee in respect of such Capital Stock (all such
dividends and distributions being deemed waived), and any voting rights of such
Capital Stock on any matter whatsoever shall remain vested in the Transferor.

(c)           Notwithstanding
anything contained herein to the contrary, at any time after one (1) year
following the Effective Date, a Principal Stockholder may Transfer Capital
Stock of the Company owned by him provided that the amount of Capital Stock
transferred by such Principal Stockholder does not exceed the amount of Capital
Stock permitted to be Transferred by an affiliate of the Company under Rule 144
of the Securities Act.

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(d)           The provisions of
this Section 3.1 shall be in addition to, and shall not in any way limit
the application of, any other provision of this Agreement.

3.2                               Right of First Refusal.

(a)           If, at any time any Principal Stockholder proposes to
Transfer any Capital Stock to one or more Persons (the “Purchasers”),
other than pursuant to an Excluded Transfer in compliance with Section 3.1
hereof (the transferring party or parties are collectively, if applicable,
referred to herein as the “Transferring Party”), then the Transferring
Party shall provide not less than 40 days written notice to the Company and
each of the other Stockholders (the “Section 3.2 Transfer Notice”) of
its intent to do so.  The Section 3.2
Transfer Notice shall set forth: (i) the number and type of shares of Capital
Stock proposed to be Transferred by the Transferring Party; (ii) the names and
addresses of the Purchasers; (iii) the proposed amount and type of
consideration payable therefor and the terms and conditions of payment; and
(iv) that the Purchasers have been informed of the rights provided for in this Section
3.2.

(b)           For a period of 15
business days following receipt of any Section 3.2 Transfer Notice described in
Section 3.2(a), the Investors shall have the right to purchase such
Investor’s share (as determined pursuant to Section 3.2(e) hereof) of
the shares of Capital Stock subject to such Section 3.2 Transfer Notice on the
same terms and conditions as set forth therein. 
The Investors’ purchase rights shall be exercised or declined by written
notice delivered to the Transferring Party, the Company and the other
Stockholders within such 15 day period specifying the number of shares of
Capital Stock to be purchased by such Investors, if any.

(c)           In the event that
the Investors do not elect to purchase all of the shares of Capital Stock
available pursuant to its rights under Section 3.2(b) within the 15 day
period set forth therein, the Company shall have the right, exercisable upon
written notice to the Transferring Party and the other Stockholders within 15
days after the receipt of the Investors’ notice under Section 3.2(b), to
purchase all or a portion of the shares of Capital Stock subject to such
Section 3.2 Transfer Notice on the same terms and conditions as set forth
therein.  The Company’s purchase rights
shall be exercised or declined by written notice delivered to the Transferring
Party and the other Stockholders within such 15 day period specifying the
number of shares of Capital Stock to be purchased by the Company, if any.

(d)           In the event that
the Company does not elect to purchase all of the shares of Capital Stock
available pursuant to its rights under Section 3.2(c) within the 15 day
period set forth therein, each Principal Stockholder shall have the right,
exercisable upon written notice to the Transferring Party, the Company and the
other Stockholders within 15 days after the receipt of the Company’s notice
under Section 3.2(c) to purchase such Principal Stockholder’s share (as
determined pursuant to Section 3.2(e) hereof) of the shares of Capital
Stock subject to the Section 3.2 Transfer Notice that were not elected to be
purchased by the Investors pursuant to Section 3.2(b) or the Company
pursuant to Section 3.2(c) on the same terms and conditions as set forth
in the Section 3.2 Transfer Notice.  Such
notice from a Principal Stockholder shall specify the number of shares of
Capital Stock to be purchased by such Principal Stockholder.

(e)           The shares of
Capital Stock subject to the Section 3.2 Transfer Notice being purchased by the
Investors pursuant to Section 3.2(b) or the Principal Stockholders

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pursuant
to Section 3.2(d) shall be allocated to the Investors or the Principal
Stockholders, as the case may be, who so exercise their rights (in the case of
the Investors, the “Purchasing Investors” and, in the case of the
Principal Stockholders, the “Purchasing Principal Stockholders”) based
on such Purchasing Investors or such Purchasing Principal Stockholder’s Pro
Rata Share (as defined herein) until the Purchasing Investors or the Purchasing
Principal Stockholders, as the case may be, have subscribed for all of such
shares of Capital Stock.  A “Purchasing
Investor’s Pro Rata Share” of any allocation of shares of Capital Stock
means the product obtained by multiplying (i) the aggregate number of shares of
Capital Stock subject to such allocation and (ii) a fraction, the numerator of
which is the number of shares of Capital Stock owned by such Purchasing
Investor at the time of the Transferring Party’s notice under Section 3.2(a)
and the denominator of which is the total number of shares of Capital Stock
owned by all of the Purchasing Investors at such time.  A “Purchasing Principal Stockholder’s Pro
Rata Share” of any allocation of shares of Capital Stock means the product
obtained by multiplying (i) the aggregate number of shares of Capital Stock
subject to such allocation and (ii) a fraction, the numerator of which is the
number of shares of Capital Stock owned by such Purchasing Principal
Stockholder at the time of the Company’s notice under Section 3.2(c) and
the denominator of which is the total number of shares of Capital Stock owned
by all of the Purchasing Principal Stockholders at such time.  For purposes of making any determination or
calculation pursuant to this Section 3.2(e), but for such purposes only,
as of any date of determination or calculation, all of the Capital Stock of the
Company that is then convertible or exercisable into or exchangeable for Common
Stock shall be deemed to have been so converted, exercised or exchanged in full
as of such date of determination or calculation.

(f)            If the Investors,
the Company and the Purchasing Principal Stockholders elect, either
individually or collectively, to purchase all but not less than all of the
shares of Capital Stock subject to the Section 3.2 Transfer Notice, the
Transferring Party shall honor their elections to purchase and consummate the
sale or sales of the shares of Capital Stock on terms set forth in the Section
3.2 Transfer Notice not more than 35 days after delivery of the Section 3.2
Transfer Notice, and at such time the Transferring Party shall deliver to the
Investors, the Company or the appropriate Purchasing Principal Stockholders, as
the case may be, the certificate(s) or instrument(s) representing the shares of
Capital Stock to be purchased thereby, each certificate or instrument to be
properly endorsed for transfer.  Any
shares of Capital Stock so purchased by the Company shall thereupon cease to be
issued and outstanding shares of the Company’s Capital Stock and shall resume
the status of authorized but unissued shares.

(g)           If the Investors,
the Company and the Purchasing Principal Stockholders do not elect,
individually or collectively, to purchase all of the shares of Capital Stock
subject to the Section 3.2 Transfer Notice, the Transferring Party may, subject
to the tag-along rights contained in Section 3.3 hereof, consummate the
Transfer of those remaining shares of Capital Stock that were not purchased by
the Investors, the Company or the Purchasing Principal Stockholders to the
Purchasers pursuant to the terms set forth in the Section 3.2 Transfer Notice,
following such Purchasers’ execution of an agreement in form and substance
reasonably acceptable to the Company and the Investors, through which the Purchasers
join this Agreement and become bound by the obligations imposed upon the
Transferring Party hereunder.

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(h)           If the Investors,
the Company and the Purchasing Principal Stockholders have elected,
individually or collectively, to purchase all of the shares of Capital Stock
subject of the Section 3.2 Transfer Notice but the Investors, the Company or
the Purchasing Principal Stockholders do not consummate such purchase at the
closings scheduled therefor (such party shall be deemed the “Defaulting Party”),
the shares of Capital Stock that were to be purchased by the Defaulting Party
shall again be subject to the rights of first refusal set forth in this Section
3.2 (other than with respect to the Defaulting Party).  If after re-offering such shares of Capital
Stock to the Investors, the Company and the Principal Stockholders pursuant to
this Section 3.2, the Investors, the Company or the Principal
Stockholders have not elected to purchase such shares of Capital Stock, the
Transferring Party may consummate the Transfer of such shares of Capital Stock
to the Purchasers pursuant to the terms set forth in the Section 3.2 Transfer
Notice following the Purchaser’s execution of an agreement in form and
substance reasonably acceptable to the Company and the Investors through which
the Purchasers join this Agreement and become bound by the obligations imposed
upon the Transferring Party hereunder.

(i)            Any
proposed Transfer to a Purchaser that is not consummated within 60 days after
the expiration of the 15 day period specified in this Section 3.2 or any
proposed Transfer on terms and conditions more favorable than those described
in the Section 3.2 Transfer Notice shall again be subject to the rights of
first refusal in this Section 3.2.

3.3                               Tag-Along Rights.

(a)           If, at any time after the Effective Date and after
compliance with the terms and conditions set forth in Section 3.2 hereof
(if applicable), a Principal Stockholder (a “Section 3.3 Transferor”)
desires to Transfer its or his Capital Stock in one transaction or a series of
transactions to any Person or Persons (a “Section 3.3 Transferee”),
prior to any such Transfer, the Section 3.3 Transferor shall promptly (and in
any event at least 20 business days prior to the closing date thereof), provide
the Investors with written notice of the proposed Transfer (the “Section 3.3
Transfer Notice”) containing the following:

(i)            the name and address of the proposed Section 3.3
Transferee;

(ii)           the number and kind of shares of Capital Stock proposed to
be Transferred by the Section 3.3 Transferor; and

(iii)          the purchase price and other terms and conditions of
payment and the closing date for the proposed Transfer (including, when
available, a copy of any purchase agreement related thereto).

(b)           If an Investor
wishes to participate in such Transfer, such Investor shall notify the Section
3.3 Transferor and the Company by written notice (the “Tag-Along Notice”)
on or before the expiration of 15 business days following receipt of the
Section 3.3 Transfer Notice that such Investor desires to Transfer any or all
of their shares of Capital Stock of the Company (as determined pursuant to the
following sentence) on the same terms and conditions set forth in the Section
3.3 Transfer Notice.  The Tag-Along
Notice shall specify the number of shares of such Capital Stock such Investor
desires and is entitled (pursuant to this Section 3.3(b)) to Transfer
(the “Tag-Along Amount”); for purposes of making any determination or
calculation

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pursuant to this Section 3.3, but for such purposes only, as of
any date of determination or calculation, all of the Capital Stock of the
Company that is then convertible or exercisable into or exchangeable for Common
Stock shall be deemed to have been so converted, exercised or exchanged in full
as of such date of determination or calculation.  The maximum number of shares of such Capital
Stock that an Investor shall be entitled to Transfer under this Section 3.3
shall be determined by multiplying the number of shares of such Capital Stock
owned by such Investor at the time of delivery of the Section 3.3 Transfer
Notice by a fraction, the numerator of which is the number of shares of Capital
Stock proposed to be Transferred to the Section 3.3 Transferee by the Section
3.3 Transferor and the denominator of which is the number of shares of Capital
Stock then owned by the Section 3.3 Transferor. 
If an Investor does not provide the Section 3.3 Transferor with a
Tag-Along Notice within the period specified above, the Section 3.3 Transferor
shall be free to Transfer such Capital Stock to the Section 3.3 Transferee in
the amount and on the same terms and conditions set forth in the Section 3.3
Transfer Notice, subject to Section 3.3(i) below.  If an Investor provides the Section 3.3
Transferor with a Tag-Along Notice within the period specified above, the
Section 3.3 Transferor may not effect such Transfer unless the Section 3.3
Transferee shall have purchased the Tag-Along Amount or the Reduced Tag-Along
Amount (as defined below) from such Investor on the same terms and conditions
set forth in the Section 3.3 Transfer Notice.

(c)           If the sum (the “Aggregate
Shares Offered”) of the number of shares of Capital Stock proposed to be
Transferred to the Section 3.3 Transferee by the Section 3.3 Transferor and the
Investors exceeds the number of shares of Capital Stock that such Section 3.3
Transferee is willing to purchase, then the Investors shall be obligated to
Transfer a number of shares of Capital Stock or its equivalent (the “Reduced
Tag-Along Amount”) equal to the product of the number of shares of Capital
Stock which the Section 3.3 Transferee is willing to purchase and a fraction,
the numerator of which is the Tag-Along Amount with respect to the Investors
and the denominator of which is the Aggregate Shares Offered, and the Section
3.3 Transferor shall be obligated to Transfer a number of shares of Capital
Stock equal to the number of shares of Capital Stock which the Section 3.3
Transferee is willing to purchase minus the Reduced Tag-Along Amount for the
Investors.

(d)           For the avoidance of
doubt, the tag-along rights contained in this Section 3.3 with respect
to (i) any Transfer of Series A Preferred Stock shall only apply to the
Investors who hold the Series A Preferred Stock in proportion to such Investor’s
percentage ownership of all of the then outstanding shares of Series A
Preferred Stock on an as-converted basis in Common Stock and (ii) any Transfer
of Common Stock shall only apply to the Investors who hold the Common Stock in
proportion to such Investor’s percentage ownership of all of the then
outstanding shares of Common Stock.

(e)           Any indemnity
provided by the Investors to the Section 3.3 Transferee in a purchase agreement
relating to such Transfer will only relate to the shares of Capital Stock
Transferred by him or it.  Any indemnity
provided to the  Section 3.3 Transferee
by the Section 3.3 Transferor will only relate to the shares of Capital Stock
Transferred by him or it.

(f)            The Section 3.3
Transferor and the Investors shall be required to bear their pro rata share,
based on the number of shares of Capital Stock included in such Transfer, of
the

 9
 

 

expenses of the transaction including, without limitation, legal,
accounting and investment banking fees and expenses.

(g)           The Company shall,
upon request by the Investors, issue to the Investors one or more stock
certificates registered in the names and in the denominations (aggregating in a
number equal to the original denomination) requested by the Investors, to
facilitate any partial sale of shares of any Capital Stock pursuant to this Section
3.3.

(h)           To the extent that
any prospective Section 3.3 Transferee is unwilling or otherwise refuses to
purchase Capital Stock from the Investors, the Section 3.3 Transferor shall not
Transfer to such prospective Section 3.3 Transferee any Capital Stock, unless
and until, simultaneously with such Transfer, the Section 3.3 Transferee shall
purchase such Capital Stock from the Investors on the same terms and conditions
specified in the Section 3.3 Transfer Notice.

(i)            Subject to the
rights of the Investors, if they have so elected, to participate in the
Transfer of Capital Stock as provided in this Section 3.3, the Section
3.3 Transferor may, not later than 45 days following delivery to the Investors
of the Section 3.3 Transfer Notice, conclude a Transfer of Capital Stock
covered by the Section 3.3 Transfer Notice on the terms and conditions
described in the Section 3.3 Transfer Notice. 
Any proposed Transfer on terms and conditions more favorable to the
Section 3.3 Transferee than those described in the Section 3.3 Transfer Notice,
as well as any proposed Transfer of any Capital Stock by the Section 3.3
Transferor more than 45 days following delivery to the Investors of the Section
3.3 Transfer Notice, shall again be subject to the tag-along rights of the
Investors and shall require compliance by the Section 3.3 Transferor with the
procedures described in this Section 3.3.

(j)            The exercise or
non-exercise of the rights of the Investors under this Section 3.3 to
participate in one or more Transfers of Capital Stock shall not adversely
affect their right to participate in subsequent Transfers of Capital Stock
pursuant to this Section 3.3.

(k)           The provisions of
this Section 3.3 shall be subject in all respects to the provisions of Sections
3.1 and 3.2 hereof.

3.4          Drag-Along
Right.

(a)           In the event that holders of more than two-thirds (2/3) of
the then outstanding shares of Common Stock and a majority of the members of
the Board of Directors of the Company approve the sale of the Company and in
connection therewith the Board determines in good faith and in a commercially
reasonable manner that the sale is in the best interests of the Company and its
stockholders (an “Approved Transfer”), the Stockholders will consent to and
raise no objections to the Approved Transfer of the Company and (i) if the
Approved Transfer of the Company is structured as a sale of stock, the
Stockholders will agree to sell all of their Capital Stock in the Company on
the terms and conditions approved by the Board of Directors with respect to all
holders of Capital Stock, (ii) if the Approved Transfer of the Company is
structured as a merger, consolidation or other reorganization, the Stockholders
will vote in favor thereof and will not exercise any dissenters’ rights of
appraisal it may have under the laws of the State of Nevada, and (iii) if the
Approved Transfer of the Company is structured as a sale of all or
substantially all of the assets of the Company, the Stockholders will vote in
favor thereof.  The

 

 10

Stockholders will use their reasonable best efforts to cooperate in the
Approved Transfer of the Company and will take all necessary and desirable
actions in connection with the consummation of the Approved Transfer of the
Company as are reasonably requested by the Board of Directors, including, but
not limited to, the provision of reasonable and customary representations and
warranties in relation to the Stockholders’ Capital Stock in the Company; provided, however, that the Stockholders
shall not be required to incur any out-of-pocket expenses in connection with
such Approved Transfer of the Company which are not reimbursed by the Company;
and provided further that the
Stockholders shall not be required to provide more onerous representations,
warranties or indemnification than any other Stockholder.

(b)           Not less than thirty (30) days prior to the date proposed
for the closing of any Approved Transfer, the Company shall give written notice
to the Stockholders, setting forth in reasonable detail the name or names of
the purchaser, the terms and conditions of the Approved Transfer, including the
purchase price, and the proposed closing date.

(c)           The obligations of
the Stockholders with respect to the Approved Transfer of the Company are also
subject to the condition that upon the consummation of the Approved Transfer of
the Company, all of the holders of Capital Stock of the Company will have the
right to receive the same form and amount of consideration for their shares of
Capital Stock as all other holders of the same classes.

3.5          Preemptive Rights.

(a)           In
the event that the Company intends to consummate any Equity Issuance, the
Company shall provide each of the Investors with a right of first refusal to
purchase its or his pro rata portion of such Capital Stock, on the terms and
conditions offered by the Company.  For
purposes of this Section 3.5, each of the Investor’s pro rata portion is
equal to the ratio of (a) the number of shares of Capital Stock held by it or
him immediately prior to such issuance to (b) the aggregate number of shares of
Capital Stock held by all of the Investors immediately prior to such
issuance.  For purposes of making any
determination or calculation pursuant to this Section 3.5(a), but for
such purposes only, as of any date of determination or calculation, all of the
Capital Stock of the Company that is then convertible or exercisable into or
exchangeable for Common Stock shall be deemed to have been so converted,
exercised or exchanged in full as of such date of determination or calculation.

(b)           The
Company shall provide each Investor not less than 30 days prior written notice
(the “Offer Notice”) of such Equity Issuance, together with the details
and terms of such intended transaction. 
Each Investor shall respond to the Company within 10 days of receiving
the Offer Notice notifying the Company whether or not it or he desires to
purchase in such Equity Issuance, and stating the number of shares of such
Capital Stock it or he desires to purchase.

(c)            In
the event that the Investors fail to exercise the right of first refusal for
all of the Capital Stock offered in the Equity Issuance within the applicable
time period, then, with respect to the issuance of such unsubscribed shares of
the Capital Stock, the rights of the Investors under this Section 3.5
shall expire and the Company shall have 90 days thereafter to sell such Capital
Stock at a price and upon general terms not more favorable to the purchasers

 11
 

 

thereof than specified in
the Offer Notice.  In the event that the
Company has not sold such Capital Stock within such 90 day period, then the
Company shall not thereafter issue or sell any such Capital Stock without again
first offering them to the Investors pursuant to this Section 3.5.

(d)           For
the avoidance of doubt, and notwithstanding anything contained herein to the
contrary, to the extent a subsidiary of the Company is engaging in an Equity
Issuance, each reference to the Company in this Section 3.5 shall be
deemed to include such subsidiary, and the Company shall cause such subsidiary
to comply with the provisions of this Section 3.5 as if it were the
Company hereunder.

3.6          Protective Provisions.  The
Company shall not, without the affirmative vote or consent of the holders of
more than seventy-five percent (75%) of all of the then outstanding shares of
Series A Preferred Stock and if there are no Series A Preferred Stock
outstanding, seventy-five percent (75%) of the Common Stock (for purposes of
making any determination or calculation pursuant to this Section 3.6,
but for such purposes only, as of any date of determination or calculation, all
of the Capital Stock of the Company that is then convertible or exercisable
into or exchangeable for Common Stock shall be deemed to have been so
converted, exercised or exchanged in full as of such date of determination or
calculation), voting separately as a class, (i) declare, pay dividends or make
any other distribution to holders of shares of Capital Stock or redeem or repurchase or otherwise acquire any shares of Capital
Stock, other than as required by law or by agreements in existence on the date
hereof with employees or consultants of the Company requiring or permitting the
redemption or repurchase of shares of Capital Stock; (ii) amend or repeal any provision of, or add any provision to, the
Company’s articles of incorporation, bylaws, or any certificate of designations
or file any certificate of designations, preferences, limitations and relative
rights of any series of preferred stock other than as contemplated by the
Purchase Agreement; (iii) increase the number of shares to be reserved
for issuance under any compensation plan of the Company; (iv) make any loan
or enter into any agreements, arrangements or other continuing transactions
between (a) the Company or any subsidiary on the one hand, and (b) on the other
hand, any officer, employee, consultant or director of the Company, or any of
its subsidiaries, or any person owning any capital stock of the Company or any
subsidiary or any member of the immediate family of such officer, employee,
consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder; (v) voluntarily file for bankruptcy, liquidate the Company’s
assets or make an assignment for the benefit of the Company’s creditors; (vi)
incur, assume or guarantee any indebtedness for borrowed money; (vii) issue or purchase any equity or debt securities;
(viii) enter into any merger, reorganization, consolidation or sale of
substantially all of the assets of the Company with another corporation or
other entity or other acquisition of the Company; (ix) substantially alter or change the Company’s business; (x) create any
subsidiary of the Company; (x) alter or change in any way the compensation of
the Company’s senior management; and (xi) increase or decrease the size of the
Company’s Board of Directors other than as provided in this Agreement.

3.7          Legends on Stock.

(a)           Each Capital Stock certificate of the
Company owned by a Principal Stockholder, an Investor or any Transferee of a
Principal Stockholder or an Investor that

 12
 

 

becomes
a party hereto shall bear the following legend on the face thereof (or a
substantively equivalent legend):

“THIS CERTIFICATE IS ISSUED SUBJECT TO THE
PROVISIONS OF A STOCKHOLDERS AGREEMENT DATED AS OF JUNE    ,
2007, AND NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY IT ARE
ASSIGNABLE OR OTHERWISE TRANSFERABLE, EXCEPT IN ACCORDANCE WITH THE PROVISIONS
OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
COMPANY.”

(b)           In addition, each Capital Stock
certificate of the Company owned by a Principal Stockholder, an Investor or any
Transferee of a Principal Stockholder or an Investor that becomes a party
hereto shall also bear the following legend on the face thereof (or a
substantively equivalent legend):

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE. 
THESE SECURITIES ARE RESTRICTED SECURITIES AS DEFINED IN RULE 144
PROMULGATED UNDER THE ACT AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
DISTRIBUTED EXCEPT (A) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, (B) IN COMPLIANCE WITH RULE
144 AND AN EXEMPTION UNDER APPLICABLE STATE SECURITIES LAWS, OR (C) PURSUANT TO
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH
REGISTRATION OR COMPLIANCE IS NOT REQUIRED.”

(c)           Any certificate
issued at any time in exchange or substitution for any certificate bearing the
legend set forth in (a) and/or (b) above (except a new certificate issued upon
completion of a public distribution under a registration statement of the
Capital Stock represented thereby shall be required) shall also bear such
legend unless, with respect to the legend set forth in (b) above, in the
opinion of counsel for the holder of such Capital Stock (which counsel shall be
reasonably satisfactory to the Company), the Capital Stock represented thereby
is not, at such time, required by law to bear such legend.

(d)           The Company agrees
that it will not Transfer on its books any certificate for its Capital Stock in
violation of the provisions of this Agreement.

 13
 

 

ARTICLE  IV

REPRESENTATIONS AND WARRANTIES

4.1          Representations and Warranties of the Stockholders.  Each of the Stockholders severally represents
and warrants to the other Stockholders and the Company that:

(a)           Such Stockholder has
all requisite power and capacity to enter into this Agreement and to consummate
the transactions contemplated hereby. 
This Agreement has been duly executed and delivered by such Stockholder,
has been effectively authorized by all necessary action and constitutes the
legal, valid and binding obligations of such Stockholder, enforceable against
such Stockholder in accordance with its terms, except as enforceability may be
subject to the application of general equitable principles and to bankruptcy,
insolvency, moratorium or other similar laws affecting creditors’ rights
generally.

(b)           The execution and
delivery of this Agreement, the consummation of the transactions contemplated
hereby and the fulfillment of the terms hereof will not result in a breach of
any of the terms or provisions of, or constitute a default under, or conflict
with (x) any agreement, indenture or other instrument to which such Stockholder
is a party or by which such Stockholder is bound, (y) any judgment, decree,
order or award of any court, governmental body, Governmental Authority or
arbitrator by which such Stockholder is bound or (z) any Requirement of Law
applicable to such Stockholder.

(c)           There are no consents, approvals, authorizations or other
requirements prescribed by any agreement, indenture or instrument or any
applicable Requirement of Law that must be obtained or satisfied in connection
with such Stockholder’s execution, delivery and performance of this Agreement.

(d)           There is no suit, action
or proceeding pending or, to such Stockholder’s knowledge, threatened against
such Stockholder that questions the validity of this Agreement, any of the
transactions contemplated hereby or any action which has been taken by any of
the parties in connection herewith or therewith or in connection with any of
the transactions contemplated hereby or thereby or that seeks to enjoin the
consummation thereof.

(e)           As of the Effective
Date, each Stockholder owns all right, title and interest in and to the number
of shares of Series A Preferred Stock, Common Stock and the number of options
or warrants exercisable into, and other securities convertible or exercisable
into or exchangeable for, Common Stock, respectively, specified with respect to
such Stockholder on Schedule I
attached hereto, free and clear of all liens, claims, rights (including but not
limited to preemptive or similar rights), taxes and encumbrances of any type or
nature, and such shares, options, warrants and securities, as of the Effective
Date, represent in the aggregate the percentage ownership of all of the Capital
Stock of the Company on a fully diluted basis (assuming, for this purpose only,
that all Capital Stock of the Company that is convertible or exercisable into
or exchangeable for Common Stock has been so converted, exercised or exchanged
in full as of the Effective Date) as specified with respect to such Stockholder
on Schedule I.  As of the Effective Date, no shares of
Capital Stock of the Company are owned by such Stockholder other than as
specified on Schedule I  with respect to
such Stockholder.

 14
 

 

ARTICLE  V

COVENANTS AND AGREEMENTS OF THE
COMPANY; OTHER MATTERS

5.1          Affirmative Covenants and Agreements of the
Company.  The Company
covenants and agrees that:

5.1.1       Information.  The
Company shall deliver to the Investors:

(a)           as soon as available and in any event within 90 days after
the end of each Fiscal Year of the Company, an audited balance sheet of the
Company and, to the extent there are any, its subsidiaries, as of the end of such
Fiscal Year and the related statements of income and cash flows for such Fiscal
Year, setting forth in each case in comparative form the figures for the
previous Fiscal Year;

(b)           as soon as available and in any event within 45 days after
the end of each fiscal quarter of each Fiscal Year of the Company, a balance
sheet of the Company and, to the extent there are any, its subsidiaries, as of
the end of such fiscal quarter and related statements of income for such
quarter and for the portion of the Company’s Fiscal Year then ended, setting
forth in each case in comparative form the figures for the corresponding fiscal
quarter and the corresponding portion of the Company’s previous Fiscal Year;

(c)           to the extent available, as soon as available and in any
event within 30 days after the end of each calendar month, (i) a profit and
loss statement and operating report relating to the operations of the Company
for such calendar month and (ii) a balance sheet of the Company and, to
the extent there are any, its subsidiaries, as of the end of such calendar
month and related statements of income for such calendar month;

(d)           as soon as available and in any event within thirty (30)
days prior to the end of each Fiscal Year, a comprehensive operating budget
forecasting the Company’s financial position on a month-to-month basis for the
upcoming Fiscal Year; and

(e) to the extent available,
such budgets, forecasts, projections and other information respecting the
business of the Company as the Investors may from time to time reasonably
request.

All
financial reports and other information of the Company delivered to the
Investors  pursuant to this Agreement
shall be stated in United States dollars and, with respect to annual and
quarterly financial statements, prepared in accordance with GAAP, except that
the financial statements may not include notes which may otherwise be required
by GAAP and except that such quarterly financial statements may not include
notes in accordance with GAAP and are subject to normal year-end audit
adjustments.

5.1.2       Inspection of Property, Books and
Records.  The Company shall, and shall cause each of
its subsidiaries (to the extent there are any) to, keep proper books of record
and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its respective business and activities
and shall, upon reasonable notice and during normal business hours, permit
representatives of an Investor, at such Investor’s expense, to visit

 15
 

 

and
inspect any of its or its subsidiaries’ (to the extent there are any)
properties, to examine and make abstracts from any of its or its subsidiaries’
(to the extent there are any) books and records and to discuss its or any of
its subsidiaries’ (to the extent there are any) affairs, finances and accounts
with its or, to the extent there are any, its Subsidiaries’ officers, employees
and independent public accountants.

ARTICLE  VI

EFFECTIVE DATE; TERM; TERMINATION

6.1          Effective Date.  This
Agreement shall become effective on the Effective Date.

6.2          Term.  The
obligations of each party hereunder shall remain binding upon such party until
such time as:

(a)               this Agreement has terminated pursuant to Section
6.3 hereof; or

(b)               such party has Transferred all of its Capital Stock in
the Company in accordance with the terms of this Agreement and is in compliance
with its obligations, covenants and agreements under this Agreement.

6.3          Termination. 
Except as otherwise expressly provided herein, this Agreement shall
terminate and all rights and obligations hereunder shall cease, upon the first
to occur of any of the following events:

(i)            the consummation of a liquidation, dissolution, or
winding up of the Company in accordance with the Certificate of Designation; or

(ii)           the written agreement of each of the parties hereto to
such termination.

ARTICLE  VII

MISCELLANEOUS

7.1          Entire
Agreement.  This Agreement
and the Transaction Documents constitute the entire agreement among the parties
with respect to the subject matter hereof and thereof and supersede all prior
agreements, understandings and negotiations, both written and oral, among the
parties (or any of them) with respect thereto.

7.2          Amendments; No Waivers.

(a)           Any provision of this Agreement may be amended or waived if,
and only if, such amendment or waiver is in writing and signed, in the case of
an amendment, by each party hereto, or in the case of a waiver, by the party
against whom the waiver is to be effective. 
Notwithstanding the foregoing to the contrary, the Company may update Schedule I hereto to reflect
permissible issuances of Capital Stock or Transfers of Capital Stock consistent
with this Agreement.

 16
 

 

(b)           No failure or delay
by any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  The rights
and remedies herein provided shall be cumulative and not exclusive of any
rights or remedies provided by law or otherwise.

7.3          Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing by nationally recognized overnight mail carrier, certified mail, return
receipt requested or facsimile and shall be given,

	
  (i)

  	
  if to the Company
  or any Principal Stockholder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Nascent Wine
  Company, Inc.

  	
   

  
	
   

  	
  2355 Paseo de
  las Americas

  	
   

  
	
   

  	
  San Diego,
  California 92154

  	
   

  
	
   

  	
  Attention: Chief
  Executive Officer

  	
   

  
	
   

  	
  Tel. No.: (619) 661-0458

  	
   

  
	
   

  	
  Fax No.: (619) 661-9735

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Law Offices
  of Gary A. Agron

  	
   

  
	
   

  	
  5445 DTC
  Parkway, Suite 520

  	
   

  
	
   

  	
  Greenwood
  Village, CO 80111

  	
   

  
	
   

  	
  Attention: Gary
  A. Agron

  	
   

  
	
   

  	
  Tel No.: (303)
  770-7254

  	
   

  
	
   

  	
  Fax No.: (303)
  770-7257

  	
   

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   if to any Investor:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  At the address of such Investor set forth in the
  Purchase Agreement.

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Kramer Levin
  Naftalis & Frankel LLP

  	
   

  
	
   

  	
  1177 Avenue of
  the Americas

  	
   

  
	
   

  	
  New York, New
  York 10036

  	
   

  
	
   

  	
  Attention:
  Howard T. Spilko

  	
   

  
	
   

  	
                   Christopher
  S. Auguste

  	
   

  
	
   

  	
  Tel No.: (212)
  715-9100

  	
   

  
	
   

  	
  Fax No.: (212)
  715-8000

  	
   

  

 

Any party may designate a different notice address,
contact person, telephone number or facsimile number with respect to such party
by providing a notice describing such changes to each other party hereto in
accordance with the provisions of this Section 7.3.  Any notice sent by nationally recognized
overnight mail carrier shall be deemed to be delivered to the address shown on
the mailing receipt on the expected date of delivery upon proper evidence of
mailing for purposes of this Section 7.3.  Any notice sent by certified mail, return
receipt requested, shall

 17
 

 

be deemed to be delivered five business days after
mailing.  Any notice sent by facsimile
shall be deemed delivered as of the open of business on the business day
following the date on which sent provided the sender receives written
confirmation of transmission and provided that within 24 hours such notice is
also sent by regular mail to the appropriate address specified above.

7.4        Execution
in Counterparts.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

7.5        Binding Effect; Assignment.

(a)           The
rights and obligations of the parties under this Agreement may not be assigned
or otherwise transferred to any other Person, except (i) with the prior written
consent of the other parties hereto or (ii) in connection with a Transfer of
Capital Stock of the Company by a Stockholder made in compliance with all of
the provisions of this Agreement.

(b)           This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, personal
representatives, executors, successors and permitted assigns.  Neither this Agreement nor any provision
hereof is intended to confer upon any Person other than the parties hereto any
rights or remedies hereunder.

7.6          Governing
Law; Jurisdiction. This
Agreement, together with any dispute arising under this Agreement, shall be
governed by, construed, applied and enforced in accordance with the laws of the
State of New York, except that no doctrine of choice of law shall be used to
apply any law other than that of New York, and no defense, counterclaim or
right of set-off given or allowed by the laws of any other state or
jurisdiction, or arising out of the enactment, modification or repeal of any
law, regulation, ordinance or decree of any foreign jurisdiction, shall be interposed
in any action hereon or thereon; provided, however, that to the extent
that this Agreement relates to the internal affairs of the Company, such
internal affairs shall be governed by and construed and enforced in accordance
with the Nevada Revised Statutes.  The
parties hereby agree that venue for any dispute arising under this Agreement or
any of the other Transaction Documents or the transactions contemplated hereby
or thereby will lie exclusively in the state or federal courts located in New
York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is
not the proper venue.  The parties
irrevocably consent to personal jurisdiction in the state and federal courts of
the state of New York.  The parties
hereto consent to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to
it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof.  Nothing in this Section 7.6 shall
affect or limit any right to serve process in any other manner permitted by
law.

7.7        Further
Assurances. Each of the
parties hereto shall execute and deliver such documents, instruments and
agreements and take such further actions as may be reasonably required or
desirable to carry out the provisions of this Agreement and the transactions
contemplated hereby, and each of the parties hereto shall cooperate with each
other in connection with the foregoing.

 18
 

 

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

7.9        Severability
of Provisions.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

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

7.11        Costs
and Expenses.  The Company shall bear the fees, costs and
expenses incurred by such party in the preparation, negotiation, execution and
delivery of this Agreement, except as otherwise specified in the Purchase
Agreement; provided, however,
that the Company shall bear the reasonable fees, costs and expenses incurred by
the Principal Stockholders and the Investors.

7.12        WAIVER
OF TRIAL BY JURY. TO THE EXTENT THEY MAY LEGALLY DO SO, THE PARTIES HERETO
EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, CAUSE
OF ACTION OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT OR IN
ANY WAY CONNECTED WITH, OR RELATED TO, OR INCIDENTAL TO, THE DEALINGS OF THE
PARTIES HERETO WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS RELATED
HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
IRRESPECTIVE OF WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  TO THE EXTENT THEY MAY LEGALLY DO SO, THE
PARTIES HERETO AGREE THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION OR
PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY
HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 7.13
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY OR PARTIES
HERETO TO WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY.

7.13      Publicity.  The
parties agree that no public release or announcement concerning this Agreement
or any of the Transaction Documents or the transactions contemplated hereby or
thereby shall be made without advance review and approval by the Company and
the Investors, except as otherwise required by applicable law.

 19
 

 

[signature page follows]

 20
 

 

IN
WITNESS WHEREOF, the
parties hereto have duly executed this Agreement or caused this Agreement to be
duly executed by their respective officers or representatives thereunto duly
authorized as of the day and year first written above.

	
  

  	
  NASCENT WINE COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  PRINCIPAL STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SANDRO PIANCONE

  
	
   

  	
   

  
	
   

  	
  PIANCONE FAMILY TRUST SANDRO AND

  KIMBERLY PIANCONE TRUSTEES

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VICTOR PETRONE

  
	
   

  	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 21
 

 

SCHEDULE
I

STOCKHOLDERS’

OWNERSHIP OF CAPITAL STOCK

	
  Name of Stockholder

  	
   

  	
  No. of Shares

  of Common

  Stock Owned

  	
   

  	
  Percentage

  Ownership of all of

  the Company’s

  Common Stock

  	
   

  	
  No. of Shares

  of Series A

  Preferred

  Stock Owned

  	
   

  	
  Percentage

  Ownership of all of

  the Company’s

  Series A

  Preferred Stock

  	
   

  
	
  Sandro Piancone

  	
   

  	
  1,177,511

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Piancone Family
  Trust Sandro and Kimberly Piancone Trustees

  	
   

  	
  13,026,613

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Victor Petrone

  	
   

  	
  2,106,969

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
   

  	
   

  

 

 

 22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]