Document:

UV
FLU TECHNOLOGIES, INC. (Company)

    Puravair
Distributors LLC ( Master Distributor)

    

    DISTRIBUTORSHIP
AREEMENT

    

    THIS DISTRIBUTORSHIP AGREEMENT
(the “AGREEMENT”) is entered into this 25th Day of November, 2009, by and
between UV FLU TECHNOLOGIES., a Nevada corporation with a sales location at 1694
Falmouth Rd #125, Centerville, MA 02632 (the “COMPANY”), and Puravair, LLC, a
Massachusetts LLC located at 653 Summer Street, Boston, Ma, 02210 (the
“DISTRIBUTOR”).  The COMPANY and DISTRIBUTOR may be referred to
hereinafter, together, as the “PARTIES” and individually as a
“PARTY”.

     

    WITNESSETH:

     

    WHEREAS,
COMPANY desires to appoint PURAVAIR as the exclusive MASTER DISTRIBUTOR for the
Viraguard UV-400, and any other products for the Professional, Medical, and
Commercial markets (see Schedule E) manufactured or marketed by the COMPANY
(“PRODUCTS”) anywhere within the United States and Canada (herein, the
“TERRITORY”), and DISTRIBUTOR wishes to obtain from COMPANY the exclusive right
to market and sell the PRODUCTS in the TERRITORY, on and subject to the terms
and conditions set forth herein;

     

    NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants and
AGREEMENTS contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the PARTIES hereby
agree as follows:

     

    ARTICLE
I

     

    Purchase
and Sales Prices of PRODUCTS

     

    1.1           Sales Prices of PRODUCTS to
DISTRIBUTOR.  As of the date hereof, the sales prices of the
PRODUCTS for sale to DISTRIBUTOR hereunder are set forth on Schedule A attached
hereto (such prices, as same may be amended from time to time, together with the
prices at which any other PRODUCT is sold by the COMPANY to DISTRIBUTOR
hereunder, are hereinafter referred to as the “COMPANY Prices”).  The
COMPANY may change COMPANY Prices at any time upon thirty (30) days prior
written notice to DISTRIBUTOR.  The COMPANY will honor existing
purchase orders written before the effective date of the price
increase.

     

    1.2           Due Date for Purchases of
PRODUCTS.  The DISTRIBUTOR shall remit payment to the COMPANY
within 60 days after receipt of an invoice for PRODUCTS purchased from the
COMPANY for the initial inventory only.  No invoice shall be forwarded
by COMPANY to DISTRIBUTOR until the PRODUCTS included on the subject invoice
have been placed with a common carrier for shipment to DISTRIBUTOR or to
DISTRIBUTOR'S customers.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Terms for
all future orders after the first full container will be one full container
(aprox. 640 units) minimum order quantity, Via LC at sight with the COMPANY
(UVFT) as the beneficiary.  The COMPANY will provide at the COMPANY'S
expense an inspection of the goods prior to shipment.  The COMPANY
will act as the agent in setting up all shipment arrangements from China, and
will add $5 to the unit purchase price to cover all freight arrangements.
DISTRIBUTOR agrees to meet minimum yearly quantities to maintain its exclusive
distribution rights.  (See attached schedule D).

     

    ARTICLE
II

    

    Appointment
as DISTRIBUTOR

    

    2.1          Appointment as Exclusive
DISTRIBUTOR.  COMPANY hereby appoints DISTRIBUTOR the exclusive
MASTER DISTRIBUTOR for the PRODUCTS within the TERRITORY, and DISTRIBUTOR hereby
accepts such appointment, upon the terms hereinafter set forth.  The
PARTIES acknowledge and agree that DISTRIBUTOR may appoint additional sales
representatives or subdistributors to sell the PRODUCTS and may sell the
PRODUCTS through the DISTRIBUTOR'S sales staff, infomercials, web site and
through catalogues.  All PRODUCTS sold by DISTRIBUTOR shall be
purchased by DISTRIBUTOR from the COMPANY at the COMPANY price.  The
DISTRIBUTOR shall undertake all typical business methods to promote and sell the
COMPANY'S PRODUCTS and as the exclusive Master Distributor for the Products to
meet the mutually agreed upon sales benchmarks set forth in Schedule D.
DISTRIBUTOR may not market, resell or distribute any PRODUCT outside the
TERRITORY, and shall promptly refer to the COMPANY all inquiries and referrals
received by DISTRIBUTOR regarding potential sales of PRODUCTS outside the
TERRITORY.  This AGREEMENT only permits DISTRIBUTOR to resell PRODUCTS
originally sold to DISTRIBUTOR by the COMPANY.  The sales of, or offer
to sell, PRODUCTS to DISTRIBUTOR by the COMPANY does not cover any other right
to manufacture or modify the PRODUCTS.

     

    2.2          Markets.  (See
Schedule E).

     

    2.3          Sales to
DISTRIBUTOR.

     

    
      	
               
      

            	
              (a)

            	
              COMPANY
      agrees that it will sell PRODUCTS directly to DISTRIBUTOR in such
      quantities as DISTRIBUTOR may from time to time order, subject to the
      ability of COMPANY to manufacture and supply. It is expressly understood
      by the parties hereto that all purchase orders for COMPANY PRODUCTS shall
      be placed with COMPANY and that DISTRIBUTOR will be invoiced and make
      payments directly to COMPANY.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              The
      terms and conditions of this Agreement shall apply to and govern all
      orders for COMPANY PRODUCTS submitted to COMPANY by DISTRIBUTOR. Nothing
      contained in any such orders shall in any way modify such terms and
      conditions or add any additional terms and conditions except as otherwise
      agreed to in writing by the parties hereto. In the event of any
      conflicting terms between any purchase order and this Agreement, the terms
      and conditions set forth in this Agreement shall control business days
      after such facsimile or electronic mail is received by COMPANY. All orders
      placed with COMPANY for COMPANY PRODUCTS shall be subject to acceptance by
      COMPANY, and COMPANY shall use its reasonable commercial efforts to notify
      DISTRIBUTOR in writing of the acceptance or rejection of a purchase order
      and of assigned delivery date for accepted orders within five (5) business
      days after receipt of such order.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      orders for a COMPANY PRODUCTS placed by DISTRIBUTOR shall be in writing,
      and may be initially placed by facsimile or electronic mail if a hard copy
      of the written purchase order for such order is received by COMPANY within
      ten (10) business days after such facsimile or electronic mail is received
      by COMPANY.  All orders placed with COMPANY for COMPANY PRODUCTS
      shall be subject to acceptance by COMPANY, and COMPANY shall use its
      reasonable commercial efforts to notify DISTRIBUTOR in writing of the
      acceptance or rejection of a purchase order and of assigned delivery date
      for accepted orders within five (5) business days after receipt of such
      order.

            

    

     

    
      	
               
      

            	
              (d)

            	
              COMPANY
      reserves the right to cancel or delay shipment of any order placed by
      DISTRIBUTOR and accepted by COMPANY, if DISTRIBUTOR (1) fails to make any
      payment as provided herein; or (2) otherwise fails to comply with the
      terms and conditions of this
Agreement.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Once
      an order placed by DISTRIBUTOR has been accepted by COMPANY, it may not be
      cancelled by DISTRIBUTOR, unless (i) COMPANY has failed to ship the order,
      or any portion thereof, within thirty (30) business days of the requested
      delivery date; (ii) DISTRIBUTOR provides written notice of cancellation,
      and COMPANY acknowledges such cancellation in writing; and (iii) COMPANY
      has not yet shipped the order or portion thereof which DISTRIBUTOR desires
      to cancel.  In such a case, DISTRIBUTOR will pay a ten (10%)
      percent cancellation charge to COMPANY for all costs already incurred by
      COMPANY as well as any material and/or labor commitments made by
      COMPANY.

            

    

     

    
      	
               
      

            	
              (f)

            	
              The
      COMPANY, in its sole discretion, shall have the right to discontinue the
      marketing, production, distribution of any or all of the PRODUCTS at any
      time during the term of this AGREEMENT, provided that the COMPANY gives
      thirty (30) days prior written notice to DISTRIBUTOR. The COMPANY shall be
      under no obligation to continue the production of any
      PRODUCT.  The COMPANY may modify, replace, and improve any
      PRODUCT, at the COMPANY'S discretion, without prior notice to DISTRIBUTOR
      and liability of any kind.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    ARTICLE
III

     

    Covenants
and Warranties

     

    3.1          Covenants of
DISTRIBUTOR.

     

    (a)           Orders.  To
initiate this agreement, the DISTRIBUTOR will place an initial stocking order of
250 units at the current distributor price (see Schedule A).

     

    (b)           Forecasts.  Upon
execution of this AGREEMENT, DISTRIBUTOR shall furnish COMPANY with
DISTRIBUTOR'S good faith estimate of the quantities of PRODUCTS DISTRIBUTOR
intends to purchase from the COMPANY during each of the three (3) calendar
months following the date hereof (the “Three Month
Forecast”).  DISTRIBUTOR shall use its commercially reasonable best
efforts to deliver to the COMPANY no later than the twentieth (20th) day of each
calendar month during the term of this AGREEMENT, an updated Three Month
Forecast.  Under no circumstances shall DISTRIBUTOR be required to
implement any of the purchases of PRODUCTS contained in its Three Month
Forecast.

     

    (c)           Taxes.  DISTRIBUTOR
shall pay directly all franchise, sales, use, personal property, ad valorem,
value added, stamp or other taxes (other than taxes measured by the income of
the COMPANY), together with all penalties, fines and interest thereon that in
any way arise out of this AGREEMENT, and are measured by the price, the charges,
the programs or the services furnished to its customers and/or end-users of the
PRODUCTS and Services (hereinafter collectively called
“TAX”).  DISTRIBUTOR may contest any TAX paid or payable in connection
with this AGREEMENT and agrees to hold COMPANY harmless in connection with any
such contest.

     

    (d)           Customer
Service.  The DISTRIBUTOR shall provide customer service via an
800 number at their expense and provide such employees as are necessary to
accomplish the benchmarks set forth in Schedule D and to uphold the terms and
mutual goals of this AGREEMENT.  DISTRIBUTOR agrees to carry required
parts and accessories that consumers will need, such as replacement
cartridges.

     

    (e)           DISTRIBUTOR
will immediately bring to the attention of COMPANY any improper or wrongful use
in the Territory of COMPANY'S patents, trademarks, copyrights, emblems, designs,
models or similar industrial or commercial rights which come to DISTRIBUTOR'S
notice.  The DISTRIBUTOR shall assist COMPANY in taking all steps to
defend COMPANY'S rights but shall not be required to institute legal
proceedings.

     

    3.2          Covenants and
Representations of the COMPANY.

     

    
      	
               
      

            	
              (a)

            	
              Pricing.  COMPANY
      will establish the DISTRIBUTOR price, charges and terms and conditions of
      sale of the PRODUCTS, enclosed as Schedules A and C attached to this
      AGREEMENT;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Availability.  DISTRIBUTOR
      will furnish all sales price sheets and
  schedules.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (c)

            	
              Literature.  COMPANY
      will provide its customary literature in reasonable quantities, concerning
      the PRODUCTS to DISTRIBUTOR as DISTRIBUTOR may from time to time
      request;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Approvals.  COMPANY
      will review and timely approve or reject all literature, sales brochures,
      infomercials, web sites, and other sales and marketing material prepared
      and sought to be used by the DISTRIBUTOR in the accomplishment of its
      sales efforts;

            

    

     

    3.3         Shipment, Inspection and
Return Policies (see Schedule C).

     

    3.4         Warranties (see Schedule
B).

     

    3.5         Indemnification.

     

    
      	
               
      

            	
              (a)

            	
              The
      COMPANY shall indemnify, save, and hold harmless DISTRIBUTOR from and
      against any and all costs, losses, liabilities, damages, lawsuits,
      deficiencies, claims and expenses, including without limitation, interest,
      penalties, attorneys' fees and all amounts paid in investigation, defense
      or settlement of any of the foregoing (collectively referred to herein as
      “CLAIMS”), incurred in connection with any breach of any covenant or
      warranty, or the inaccuracy of any representation, made by the COMPANY in
      or pursuant to this AGREEMENT, unless caused by the gross negligence or
      willful misconduct of DISTRIBUTOR.

            

    

     

    
      	
               
      

            	
              (b)

            	
              DISTRIBUTOR
      shall indemnify, save, and hold harmless the COMPANY from and against any
      and all CLAIMS, incurred in connection with or arising out of or resulting
      from or incident to any breach of any covenant or warranty, or the
      inaccuracy of any representation, made by DISTRIBUTOR in or pursuant to
      this AGREEMENT, unless caused by the gross negligence or willful
      misconduct of the COMPANY.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      any lawsuit or enforcement action is filed against any PARTY entitled to
      the benefit of indemnity hereunder, written notice thereof shall be given
      to the indemnifying party as promptly as practicable (and in any event
      within fifteen (15) days after the service of the citation or summons);
      provided that the failure of any indemnified PARTY to give timely notice
      shall not affect rights to indemnification hereunder except to the extent
      that the indemnifying PARTY demonstrates actual damage caused by such
      failure.  After such notice, if the indemnifying Party
      acknowledges in writing to such indemnified party that such indemnifying
      PARTY shall be liable under its indemnity in connection with such lawsuit
      or action, then the indemnifying PARTY shall be entitled, if it so elects,
      to take control of the defense and investigation of such lawsuit or action
      and to employ and engage attorneys of its own choice to handle and defend
      the same, at the indemnifying PARTY'S cost, risk and expense, and such
      indemnified PARTY shall cooperate in all reasonable respects, at its cost,
      risk and expense, with the indemnifying PARTY and such attorneys in the
      investigation, trial and defense of such lawsuit or action and any appeal
      arising therefrom.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    3.6         Confidentiality.  “CONFIDENTIAL
INFORMATION” shall mean any confidential technical data, trade secret, know-how
or other confidential information disclosed by the COMPANY to the DISTRIBUTOR in
writing, orally, or by drawing or other form.  The COMPANY hereby
grants the DISTRIBUTOR a license to utilize such Confidential Information and
all Patents, to the extent necessary or advisable to perform its obligations
hereunder.

     

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      the foregoing, CONFIDENTIAL INFORMATION shall not include information
      which: (i) is known to the DISTRIBUTOR at the time of disclosure or
      becomes known to the DISTRIBUTOR without breach of this AGREEMENT; (ii) is
      or becomes publicly known through no wrongful act of the DISTRIBUTOR;
      (iii) is rightfully received from a third party without restriction on
      disclosure; (iv) is independently developed by the DISTRIBUTOR; (v) is
      furnished to any third party by the COMPANY without restriction on its
      disclosure; (vi) is approved for release upon a prior written consent of
      the COMPANY; (vii) is disclosed pursuant to judicial order, requirement of
      a governmental agency or by operation of
law.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      DISTRIBUTOR agrees that it will not disclose any Confidential Information
      to any third party and will not use Confidential Information of the
      COMPANY for any purpose other than for the performance of the rights arid
      obligations hereunder during the term of this AGREEMENT and for a period
      of five years thereafter, without the prior written consent of the
      COMPANY.  The DISTRIBUTOR further agrees that Confidential
      Information shall remain the sole property of the COMPANY and that it will
      take all reasonable precautions to prevent any unauthorized disclosure of
      Confidential Information by its
employees.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Upon
      the request of the COMPANY, the DISTRIBUTOR will promptly return all
      Confidential Information furnished hereunder and all copies
      thereof.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Neither
      PARTY shall disclose any of the specific terms of this AGREEMENT to any
      third party without the prior written consent of the other PARTY, which
      consent shall not be withheld unreasonably. Notwithstanding the foregoing,
      any party may disclose information concerning this AGREEMENT as required
      by the rules, orders, regulations, subpoenas or directives of a court,
      government or governmental agency, after giving prior notice to the other
      PARTY.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (e)

            	
              DISTRIBUTOR
      agrees not to modify, de-compile, analyze, study, reverse-assemble or
      reverse engineer any PRODUCT or any component
  thereof.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      DISTRIBUTOR breaches any of its obligations with respect to
      confidentiality and unauthorized use of Confidential Information or the
      PRODUCTS hereunder, the COMPANY shall be entitled to equitable relief to
      protect its interest therein, including but not limited to injunctive
      relief, as well as money damages notwithstanding anything to the contrary
      contained herein.

            

    

     

    3.7         Competing
Products.  The DISTRIBUTOR agrees that during the term of this
AGREEMENT and for a period of two years after the termination or expiration of
this AGREEMENT, it will not, directly or indirectly, manufacture, sell, market
or represent any air purifying product or products similar to the PRODUCTS, and
will not be engaged by or be an investor or owner of any company that is in the
business of selling, marketing or manufacturing air purifying products that
directly compete with the PRODUCTS.

     

    ARTICLE
IV

     

    Term and
Termination

     

    4.1         Term.  The
original term of this AGREEMENT shall begin on the date of execution hereof, and
shall continue in full force and effect for one year thereafter, after which
time this AGREEMENT shall automatically renew for consecutive one (1) year
terms, unless and until terminated by either PARTY for a MATERIAL BREACH (as
defined below) upon written notice to the other PARTY delivered at least three
(3) months prior to the end of the term hereof or any renewal term; or unless
earlier terminated as provided in this AGREEMENT.

     

    4.2         Events of
Termination.  The COMPANY may terminate this AGREEMENT upon the
occurrence of a “MATERIAL BREACH.”  It shall be a MATERIAL BREACH if
DISTRIBUTOR fails to cure a default within thirty (30) days following receipt of
a written notice of such default.  For purposes of this AGREEMENT, it
shall be a default if DISTRIBUTOR:

     

    
      	
               
      

            	
              (a)

            	
              fails
      or refuses to make payments of any amounts due for purchases of
      PRODUCT;

            

    

     

    
      	
               
      

            	
              (b)

            	
              conducts
      any portion of its business or uses any of the PRODUCTS in a manner that
      the COMPANY reasonably believes threatens the validity or integrity of any
      of the Patents or threatens the goodwill associated
    therewith;

            

    

     

    
      	
               
      

            	
              (c)

            	
              becomes
      insolvent by reason of an inability to pay debts as they mature or makes
      an assignment for the benefit or creditors or any admission of inability
      to pay obligations as they become due;
or

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              fails
      or refuses to comply with any other material provision of this AGREEMENT
      or any reasonable instruction of the COMPANY concerning use of any of the
      PRODUCTS.

            

    

     

    
      	
               
      

            	
              (e)

            	
              At
      COMPANY'S discretion, COMPANY and DISTRIBUTOR agree that COMPANY may
      terminate this AGREEMENT if DISTRIBUTOR is unable to meet the benchmarks
      set forth in Schedule D, attached
hereto.

            

    

     

    4.3         Termination by
DISTRIBUTOR.  This AGREEMENT may be terminated by DISTRIBUTOR
if the COMPANY: (i) is guilty of any breach of any material obligation and/or
condition of this AGREEMENT (unless caused by DISTRIBUTOR) provided that if the
breach may be cured, this AGREEMENT shall not be terminated until the expiration
of thirty (30) days after written notice has been given to the COMPANY of such
default during which time such default is not cured; (ii) is guilty of fraud or
misconduct to any material extent.

     

    4.4         Effect of
Termination.  Upon termination of this AGREEMENT, DISTRIBUTOR
shall:

     

    
      	
               
      

            	
              (a)

            	
              pay
      the COMPANY within fifteen (15) days after the effective date of
      termination (or such later date that such amounts are due to the COMPANY
      pursuant to the terms of purchase) all unpaid purchase price amounts for
      the PRODUCTS;

            

    

     

    
      	
               
      

            	
              (b)

            	
              cease
      to use any advertising materials, signs, sign faces, forms, invoices or
      other materials pertaining to the COMPANY or any of the
      PRODUCTS;

            

    

     

    
      	
               
      

            	
              (c)

            	
              forfeit
      any right to act as a United States and Canadian sales
      distributor;

            

    

     

    
      	
               
      

            	
              (d)

            	
              discontinue
      use of any of the PRODUCTS, or any colorable imitation thereof, in any
      manner or for any purpose, and discontinue utilizing for any purpose any
      PRODUCTS that suggests or indicates a current or prior connection or
      association with the COMPANY or its affiliates; provided, however, that
      DISTRIBUTOR shall be permitted to sell any PRODUCTS remaining in its
      inventory within three (3) months following
  termination;

            

    

     

    
      	
               
      

            	
              (e)

            	
              promptly
      take such action as may be required to cancel all fictitious or assumed
      name or equivalent registrations relating to DISTRIBUTOR'S use of any
      PRODUCTS; and

            

    

     

    
      	
               
      

            	
              (f)

            	
              furnish
      to the COMPANY within thirty (30) days after the effective date of
      termination, evidence satisfactory to the COMPANY of DISTRIBUTOR'S
      compliance with the foregoing
obligations.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Termination
of this AGREEMENT in any manner whatsoever shall be without prejudice to the
rights of any PARTY in connection with acts or matters or things done,
committed, omitted, or suffered by any PARTY prior to the date of such
termination.  Termination of this AGREEMENT shall not affect any
contract in respect of the PRODUCTS in the course of performance at the time the
notice of termination takes effect, and the provisions of this AGREEMENT shall
apply to any such contract until such contract expires or is otherwise
terminated in accordance with the terms thereof.

     

    ARTICLE
V

     

    Miscellaneous

     

    5.1         Independent
Contractor.  Nothing herein shall be construed or deemed to
create a joint venture, contract of employment or partnership.  The
relationship between the PARTIES is that of independent
contractors.  Under no circumstances will either PARTY act or attempt
to act, or represent itself, as an agent of the other PARTY without prior
written authorization, or enter into any contract on behalf of the other
PARTY.  Neither PARTY shall use the corporate or fictitious name of
the other PARTY without the prior written consent of the other
PARTY.

     

    5.2         Notices.  Any
notice, request, consent or communication (collectively a “NOTICE”) under this
AGREEMENT shall be effective only if it is in writing and (a) personally
delivered or, (b) sent by certified or registered mail, return receipt
requested, postage prepaid or, (c) sent by nationally recognized overnight
delivery service, with delivery confirmed, or (d) telefaxed or telecopied, with
receipt confirmed, addressed as follows:

     

    
      
        	
                COMPANY:

              	
                UV
      FLU TECHNOLOGIES, INC.

              
	 
      	
                Attn:
      Jack Lennon

              
	 
      	
                1694
      Falmouth Rd #125

              
	 
      	
                Centerville,
      MA 02632

              
	 
      	
                Phone:
      508 362-4420

              
	 
      	 
      
	
                DISTRIBUTOR:

              	
                Puravair
      LLC

              
	 
      	
                Attn:  John
      Pappas

              
	 
      	
                653
      Summer St.

              
	 
      	
                Boston,
      MA 02210

              

      

    

    

    or to
such other address or addresses as shall be furnished in writing by any PARTY to
the other PARTY. A NOTICE shall be deemed to have been given as of the date when
(1) personally delivered, (ii) three days after when delivered during business
hours to said overnight delivery service, properly addressed and prior to such
delivery service's cut off time for next day delivery, or (iii) when receipt of
the telex or telecopy is confirmed, as the case may be, unless the sending Party
has actual knowledge that a NOTICE was not received by the intended
recipient.

     

    53  
        Headings.  Section
headings contained in this AGREEMENT are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
AGREEMENT.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    5.4          Entire AGREEMENT:
Modification.  This AGREEMENT contains the complete expression
of the AGREEMENT between the PARTIES with respect to the matters addressed
herein and there are no promises, representations, or inducements except in
writing signed by both PARTIES hereto.  All terms and provisions of
this AGREEMENT shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and permitted assigns of the PARTIES
hereto, and no modification to this AGREEMENT shall be binding upon the PARTIES
unless such modification is in writing and signed by both PARTIES.

     

    5.5          No
Waiver.  Failure by either PARTY hereto to enforce at any time
or for any period of time any provision or right hereunder shall not constitute
a waiver of such provision or of the right of such party thereafter to enforce
each and every such provision.

     

    5.6          Governing
Law.  This AGREEMENT shall be governed by and construed and
enforced in accordance with the laws of Nevada. All disputes concerning this
AGREEMENT shall be tried in the federal or state courts located in
Nevada.

     

    5.7          Counterparts.  This
AGREEMENT may be executed in any number of counterparts, all of which together
shall constitute one AGREEMENT binding on the PARTIES hereto.

     

    5.8          Severability.  If
any provision of this AGREEMENT shall for any reason be held to violate
applicable law, and so much of said AGREEMENT is held unenforceable, then the
invalidity of such specific provision herein shall not be held to invalidate any
other provision herein, which shall remain in full force and
effect.

     

    5.9          Force
Majeure.  Either PARTY will be excused for delays in
performance under this AGREEMENT if their inability to perform punctually is
caused by force majeure.  Force majeure as used herein shall mean,
cover and include the following: acts of God, strikes, lock-outs, industrial
disturbances, acts of the public enemy, wars, blockades, insurrections, riots,
epidemics, landslides, lightning, earthquakes, fires, storms, floods, wash-outs,
tornadoes, hurricanes, windstorms, arrest and restraint of rulers and people,
civil disturbances, boycotts, explosions, breakage or accident to machinery or
equipment, and any other causes similar to those above, which are not within the
reasonable control of the PARTY claiming force majeure, and which by the
exercise of due diligence such PARTY is unable to overcome, it being understood
and agreed by and between the PARTIES hereto, that upon any event of force
majeure if it lasted for a consecutive period of three (3) months, either party
hereto shall be entitled to unilaterally terminate this AGREEMENT with immediate
effect, by written notice to the other Party.  However, any payment
obligations by DISTRIBUTOR pursuant to the terms of this AGREEMENT or any
purchase order shall remain in full force and effect.

     

    5.10       Rights of Parties:
Reservation of Rights.  Nothing in this AGREEMENT, whether
express or implied, is intended to confer any rights or remedies under or by
reason of this AGREEMENT on any persons other than the PARTIES and their
respective successors and permitted assigns, nor is anything in this AGREEMENT
intended to relieve or discharge the obligation or liability of any third
persons to any party to this AGREEMENT, nor shall any provision give any third
person any right of subrogation or action over against any party to this
AGREEMENT.  All rights not expressly granted herein are reserved by
COMPANY.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    5.11        Interest on Unpaid
Amounts.  Any amounts due to either Party by the other Party
hereunder or pursuant to any other relationship between the COMPANY and
DISTRIBUTOR that are not paid as and when due shall bear interest at the rate of
the lower of eighteen percent (18%) per annum or the maximum amount permitted by
law.  Such interest shall be in addition to, and not in lieu of, other
remedies afforded either PARTY hereunder, at law or in equity for breach of this
AGREEMENT.

     

    5.12        Drafting.  Both
PARTIES hereto acknowledge that each PARTY was actively involved in the
negotiation and drafting of this AGREEMENT and that no law or rule of
construction shall be raised or used in which the provisions of this AGREEMENT
shall be construed in favor or against either Party hereto because one is deemed
to be the author thereof.

     

    5.13        No Assignments or
Sublicenses.  DISTRIBUTOR may not, without the prior written
Consent of the COMPANY, which may be withheld by the COMPANY in its sole and
absolute discretion, assign this AGREEMENT or any of its rights hereunder, nor
sublicense any right, title or interest in the PRODUCTS or any of the related
information, processes, formula, or technology disclosed to another PARTY
hereunder or in connection herewith, or any technology or invention developed in
connection with any research or development done by any PARTY relating
thereto.

     

    5.14        Attorneys'
Fees.  If any litigation is instituted to enforce or interpret
the provisions of this AGREEMENT or the transactions described herein, the
prevailing PARTY in such action shall be entitled to recover its reasonable
attorneys' fees from the non- prevailing PARTY.

     

    EXECUTED
on the date first set forth above.

     

    
      
        	
                UF
      FLU TECHNOLOGIES, INC.

              
	 
      	 
      
	
                By:

              	
                  

              
	 
      	
                Jack
      Lennon, President

              
	 
      	 
      
	
                By:

              	
                  

              

      

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    MASTER
DISTRIBUTOR PRICES

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Item

                                    	 	
                                      Description

                                    	 	
                                      Dist.

                                    	 	 	
                                      Price

                                      List

                                    	 	 	
                                      Quantity

                                    	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 
	
                                      UV
      400

                                    	 	
                                      UV
      400 Air Purifer

                                      (including
      cartridge)

                                    	 	$	350.00	 	 	 	 	 	 	
                                      640
      units

                                    	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 
	
                                      REPLACEMENT
      CARTRIDGES AND

                                      FILTERS

                                    	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 
	
                                      UV
      250

                                    	 	
                                      Replacement
      Cartridge Master Pack

                                    	 	$	400.00	 	 	 	 	 	 	
                                      1

                                    	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                      UV
      200

                                    	 	
                                      Replacement
      Cartridge

                                    	 	$	100.00	 	 	 	 	 	 	
                                      1

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    TERMS:  2%
net 10. Sixty (60) days Initial shipment 250 only, 45 days
thereafter.  LC at sight MOQ 1 container (640 pcs.) normal order
terms, after 1st full
container.  UV Flu will be responsible for coordinating logistics to
ship product directly to your warehouse.  We will set up procedures
for joint LC’s to minimize upfront money for both parties.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    SCHEDULE
B

     

    One Year
Limited Warranty

     

    UV Flu
Technologies, Inc. warrants this PRODUCT to be free from defects in workmanship
or materials for a period of one year from the date of purchase. If the PRODUCT
fails any time within one year after purchase, UV Flu Technologies, Inc. will
repair or replace the defective part (at its option).  The warranty
does not apply to damage resulting from abusive, commercial or unreasonable use.
Defects, which result from normal wear and tear, will not be considered
manufacturing defects. All defective product is to be returned to the Exclusive
Master Distributor's Facility.

     

    This
warranty does not cover damage resulting from unauthorized attempts to repair or
from any use not in accordance with this manual.

    

    Use of
non- UV Flu Technologies, Inc. replacement parts will invalidate this
warranty.  This warranty is voided if the PRODUCT is not purchased and
used in the USA or Canada.  This warranty applies only to the original
Purchaser of this PRODUCT.

     

    Under
this warranty, UV Flu Technologies, Inc. SHALL NOT BE LIABLE FOR ANY INCIDENTAL,
SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY BREACH OF WARRANTY,
EXPRESSED OR IMPLIED, APPLUCABLE TO THIS PRODUCT. Some regions do not allow the
limitation or exclusion of incidental, special or consequential damages so the
above limitations may not apply to you.

     

    EXCEPT AS
EXPRESSLY SET FORTH HEREIN, THE PRODUCT IS PROVIDED ON AN “AS IS”
BASIS.  THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR
IMPLIED, AND THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE ARE HEREBY EXCLUDED BEYOND THE ONE YEAR DURATION OF THIS WARRANTY. Some
regions do not allow limitations on how long an implied warranty lasts, so the
above limitation may not apply to you.

     

    This
warranty gives you specific legal rights, and you may have other rights, which
vary from region to region.

     

    In case
of questions regarding the provisions of this warranty, the English version will
govern.

    

    UV Flu
Technologies, Inc.

    1694
Falmouth Rd #125

    Centerville,
MA 02632

    Phone 508
362-4420

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    SCHEDULE
C

     

    PROCEDURES
AND POLICIES

    Shipping

     

    1.           All
shipments are sold FOB port China full container quantities of one container
(640 pcs.) UV Flu will coordinate logistics, and will be responsible for first
full container LC and shipping, and will coordinate thereafter.

     

    2.           UV
Flu Technologies, Inc. is not responsible for combining shipments of orders
received on separate purchase orders.

     

    Damaged Goods
Policy

     

    1.           Shipment
will be inspected prior to shipment from the port in China.

     

    2.           Note
damage on the delivery freight bill and have driver sign, acknowledging damage,
(bent, crushed or torn carton, etc.).  Send a copy of the freight
bill, inspection report, and identifying PRODUCT shipping invoice to the
attention of the Customer Service Dept.

     

    Returned Goods
Policy

     

    The
COMPANY will give the DISTRIBUTOR a 2% defective goods allowance.  The
DISTRIBUTOR will deal with returns from customers in any manner that they see
fit and has the right to refurbish and sell Returned units.

     

    Exhibit Participation
Policy

     

    1.           UV
Flu Technologies, Inc. will pay its fair share on a per square foot basis of the
DISTRIBUTOR'S booth at professional trade shows that are agreed to prior to the
show by the President of UVFT.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    SCHEDULE
D

    

    BENCHMARKS

     

    To retain
rights as the Exclusive Master Distributor, the DISTRIBUTOR agrees to meet the
following benchmark quantities:

    

    2010:

     

    
      	
              Q1:

            	
              640
      (one containers)

            

    

     

    
      	
              Q2:

            	
              640

            

    

     

    
      	
              Q3:

            	
              1920

            

    

     

    
      	
              Q4:

            	
              4,480
      (seven containers)

            

    

     

    
      	
              Q5:

            	
              Total:
      7,680 (12 containers)

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
       

      SCHEDULE
E

    

     

    MARKETS

     

    The
DISTRIBUTOR may sell the product in the PROFESSIONAL, MEDICAL, AND COMMERCIAL
markets, including but not limited to:

     

    INSTITUTIONAL:  Hospitals,
Nursing Homes, Physician Offices, Dentist Offices, Outpatient Surgical Centers,
Child and Adult Day Care, Clinics, Schools, Laboratories, Animal Clinics and
Veterinary hospitals, etc.

     

    COMMERCIAL:  Commercial
Office Buildings, Industrial Offices, Government Office Buildings, Military
Offices and Ships, Retail Offices,

     

    Note —
SCHEDULE TO BE COMPLETED

    
      
         

      

      
        16MASTER DISTRIBUTION AND
MANUFACTURING AGREEMENT

    

    THIS
AGREEMENT (“Agreement”) is entered into as of this 15th day of February, 2010
(“Effective Date”) by and between Drinks Americas Holdings, Ltd. (“DA”), a
Delaware corporation, having offices at 372 Danbury Road, Wilton, CT 06897, and
Mexcor, Inc., a Texas corporation having an office at 8950 Railwood Drive,
Houston, TX 77078 (“Mexcor”).  DA and Mexcor are sometimes referred to
individually as a “Party” or collectively as the “Parties.”

    

    STATEMENT OF
FACTS:

     

    WHEREAS,
DA produces, packages, stores, promotes and markets wines, spirits, beer and
other proprietary products on a worldwide basis, through designated producers
wholesalers/distributors (and those sub-distributors that DA and each designated
distributor may agree to appoint) sells such products in the United States and
in certain foreign countries (with a desire to expand distribution in the United
States and into other countries);

     

    WHEREAS,
DA possesses certain licensing and other rights to produce and have produced the
products subject to this Agreement as well as rights to use the Recipes (as
herein defined), certain trademarks, trade names, trade dress, copyrights, label
designs, slogans, and logos and creative material related to iconic figures
associated with the Products and/or used to identify the Products, whether
registered, pending or pursuant to common law (collectively, the “Product
Rights”) in connection the Products (as defined in the next
paragraph);

     

    WHEREAS,
subject to the terms and conditions set forth herein, DA desires to have the
alcoholic products now listed on Schedule A, and as amended from time to time
pursuant to this Agreement (the “Products”), brewed, produced, packaged,
labeled, stored, inventoried, warehoused, shipped, marketed, promoted, and
distributed and sold by Mexcor (collectively, the “Services”) in the United
States of America (hereinafter, “the Territory”), and Mexcor desires to provide
the Services in the Territory pursuant to the terms and conditions set forth
herein;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
consistent with the foregoing, DA desires to appoint Mexcor as the exclusive
producer and master distributor for the Products in the Territory, and Mexcor
seeks to become the exclusive producer and master distributor for the
Products;

     

    WHEREAS,
Mexcor may appoint sub-distributors and sub-producers for the production and
distribution of the Products and may continue such relationships now utilized by
DA.

     

    NOW,
THEREFORE, in consideration of the premises and agreements set forth herein, and
other good and valuable considerations, the parties hereto, intending to be
legally bound, do hereby promise and agree to the terms and conditions herein
contained.

    

    INTRODUCTION

     

    
      
        	
                1.

              	
                OVERVIEW.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                This
      Agreement contemplates that all production and distribution activities
      with respect to the Products in the Territory will, during the Term (as
      will be defined hereinafter) of this Agreement, and except as otherwise
      provided herein, including in Section 9 hereof, be undertaken by Mexcor at
      Mexcor’s sole cost and expense, in accordance with the terms of this
      Agreement.  This Agreement shall be interpreted in accordance
      with this overall intention of the parties.  Consistent
      therewith, any financial obligation not specifically allocated to Mexcor
      under this Agreement which relates to the Products in the Territory will
      hereinafter be borne by Mexcor.  The operational obligations of
      Mexcor as set forth in the definition of “Services” are not intended to be
      all inclusive, and Mexcor and DA will amend this Agreement as necessary
      from time to time to deal with any operational responsibilities which were
      not included in the definition of Services, so as to satisfy the intention
      of the parties described herein.  Notwithstanding the foregoing,
      Mexcor is not responsible for any payables of DA which have accrued prior
      to the Effective Date.

              

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
        

      

    

    
      
        	
                 
      

              	
                b.

              	
                This
      is an agreement under which Mexcor will provide the Services with respect
      to the Products within the United States of America (the “Territory”), as
      more fully described herein.  Mexcor will perform the Services
      in accordance with industry standards and practices.  For each
      Product initially and/or hereinafter listed in Schedule A by way of
      amendment pursuant to this Agreement, Mexcor shall have the exclusive
      right to perform the Services until termination of the Agreement and/or,
      with respect to a specific Product, removal of the Product from Schedule A
      by DA under the terms and conditions this Agreement.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                DA
      hereby grants, and Mexcor hereby accepts, an exclusive sub-license of the
      Product Rights and other proprietary rights of DA to produce, brew,
      package, label, store, inventory, warehouse, ship, market, promote,
      distribute and sell the Products within the Territory with the right to
      sub-license to sub-producers and sub-distributors in accordance with the
      terms hereof (collectively, the “Mexcor Sublicense”).  The
      Mexcor Sublicense shall terminate upon the termination of the Agreement
      and/or, with respect to a specific Product, removal of the Product from
      Schedule A by DA under the terms and conditions this
      Agreement.

              

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

          

      

    

    
      	
               
      

            	
              d.

            	
              DA
      developed either alone or with others the formulations and recipes for the
      Products (the “Recipes”).  Other than for purposes of fulfilling
      its obligations under this Agreement, Mexcor shall not brew or replicate
      any beverage product utilizing the Recipes and shall treat the Recipes as
      confidential and proprietary information belonging to DA, as provided in
      Section 23 hereof.  Mexcor may sub-license the Recipes to
      sub-producers with the consent of DA, which will not be unreasonably
      withheld.

            

    

    

    
      
        	
                2.

              	
                PRODUCT
      ADDITONS.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                DA
      and Mexcor may by mutual agreement amend Schedule A to include additional
      products that are in DA’s current product portfolio on such terms as they
      shall agree (“Additional Products”).  Any such Additional
      Products shall become Products subject to the terms and conditions of this
      Agreement.

              
	 	 	 

      

    

    
      	
               
      

            	
              b.

            	
              DA
      contemplates that it will develop additional alcoholic products (“New
      Beverages”) and potentially license and/or create trademarks, trade and/or
      brand names, logos and other similar proprietary rights with respect to
      such alcoholic beverages.  If and when DA develops any such New
      Beverage(s), it shall advise Mexcor in writing of its intent to introduce
      such New Beverage(s) into the marketplace, together with such information
      it has available to it in connection with such New
      Beverage.  Within twenty (20) days after Mexcor receives such
      writing, DA and Mexcor will discuss whether the New Beverage(s) should be
      added to Schedule A, and thereby cause the New Beverage(s) to become a
      Product subject to the terms and condition of this
      Agreement.  Provided that DA and Mexcor agree to the economic
      terms which will apply to the addition of such New Beverage(s), Schedule A
      shall be amended and the New Beverage added to the product list on
      Schedule A.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              MODIFICATION OF
      PRODUCT LIST.  At DA’s sole discretion, any Product
      listed now or subsequently listed on Schedule A may be removed by DA from
      such schedule, and therefore no longer be a Product subject to this
      Agreement, in the event the sales of the Product set forth on Schedule B
      attached hereto (the “Required Product Threshold”) are not
      achieved.  In such case, the removed Products will no longer be
      subject to this Agreement and all rights granted to Mexcor hereunder
      concerning the removed Product, including all sublicenses of Product
      Rights will terminate upon written notice from DA to
      Mexcor.  Upon removal of a Product, Mexcor will immediately
      cancel new production of the removed Product, but will be allowed to
      fulfill outstanding orders and distribute all finished inventory and
      current production scheduled to be packaged at the time of
      removal.

            

    

    

    
      
        	
                4.

              	
                TERM.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                This
      Agreement shall become effective on the Effective Date and shall remain in
      effect for an initial period of five (5) years (the “Initial Term”),
      unless terminated earlier as provided for herein.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                Following
      completion of the full five (5) year Initial Term, this Agreement shall
      automatically renew and shall remain in effect for an additional period of
      ten (10) years (the “Renewal Term” and, together with the Initial Term,
      the “Term”), provided that (i) the aggregate net sales of the Products
      during the Initial Term are at least $8,000,000 (hereinafter, “the Renewal
      Criteria”).  As used throughout this Agreement, “net sales” of a
      Product means gross sales of the Product less any
  returns.

              

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

      

    

    
      
        	
                 
      

              	
                c.

              	
                DA
      and Mexcor shall meet not less than ninety (90) days prior to the
      expiration of the Initial Term to discuss whether the Renewal Criteria
      will likely be satisfied, with Mexcor providing documentation as to net
      sales of the Products realized through the last practicable date, not less
      than ten (10) days prior to said meeting.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                d.

              	
                In
      the event the term of this Agreement is not automatically renewed, at DA’s
      option this Agreement will remain effective for a ninety (90) day period
      to allow DA to transition provision of the Services.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                e.

              	
                The
      Parties agree that DA’s choice of Mexcor is in reliance on its current
      ownership and management.  Accordingly, DA may terminate this
      Agreement with a minimum of thirty (30) days written notice if Mexcor
      sells a substantial portion of its assets and/or undergoes a change in
      ownership involving fifty-one (51%) or more of Mexcor’s current
      shareholders.

              
	 	 	 

      

    

    
      	
               
      

            	
              f.

            	
              The
      Parties agree that DA’s ability to sub-license the Product Rights is
      essential to this Agreement.  Therefore, and notwithstanding any
      provision contained in this Agreement, DA may remove any specific Product
      from Schedule A if DA loses its right to sub-license Product Rights
      relating to such Product, provided, however, that any minimum sales
      requirements of Mexcor set forth in this Agreement will be reduced by an
      amount reasonably determined by the Executive Committee if DA’s loss of
      licensing rights is no fault of
Mexcor’s.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      
        	
                5.

              	
                PAYMENT OF LICENSE
      FEES AND MISCELLANEOUS FEES.  For each case or case
      equivalent of Product distributed by Mexcor during the Term of this
      Agreement, Mexcor will pay DA, on a per-case basis, the License Fee for
      the Product as set forth in Schedule A.  The amounts accrued for
      each month under this paragraph shall be payable on the fifteenth (15th)
      day of the succeeding month.  Mexcor will provide, and will
      cause any sub-producers and/or sub-distributors to provide, the Services
      in accordance with any audit and/or inspection rights of Product Rights
      Owners set forth in any agreement between the Products Rights Owners and
      DA.

              

      

    

    

    
      	
              6.

            	
              MEXCOR
      COMPENSATION.  In compensation for its performance of the
      Services, Mexcor will be entitled to retain that portion of the net sales
      proceeds from sales of the Products which remain after it has satisfied
      all of its obligations hereunder, including all production costs, cost of
      components, marketing expenses, expenses related to brewing and
      production, the production, maintenance and warehousing of inventory, the
      payment of the License Fees and the Drinks Fees referred to in Schedule A
      attached hereto.

            

    

    

    
      	
              7.

            	
              BRAND PARTICIPATION BY
      MEXCOR.  In the event that during the Term of this
      Agreement DA sells any of the Product Rights and related rights relating
      to one or more Products which are listed on Schedule A at the time of
      sale, or, if the sale occurs after the termination of this Agreement or
      after the Product(s) has been removed from Schedule A, provided that
      Mexcor has satisfied the Required Product Threshold for the Product set
      forth in Schedule B for the eighteen (18) months following the Effective
      Date, DA shall pay Mexcor:

            

    

    
      
         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        	
                 
      

              	
                a.

              	
                for
      Product Rights relating to Products included in this Agreement on the
      Effective Date (collectively, with Additional Products, “the Initial
      Products”), five percent (5%) of the net consideration realized by DA in
      connection with such sale; and

              
	 	 	 

      

    

    
      	
               
      

            	
              b.

            	
              for
      Product Rights relating to New Products, twenty percent (20%) of the net
      consideration realized by DA in connection with such
  sale.

            

    

     

    To the
extent that any consideration realized by DA from such sale consists of a
promissory note, stock or securities or any other property, DA will use its best
efforts to cause the purchaser of any such Products to issue to Mexcor, on the
closing of such sale, 5% (in the event of Initial Products) or 20% (in the event
of New Products) of the notes, stock, securities or other property otherwise
payable to DA.

    

    
      
        	
                8.

              	
                EQUITY
      COMPENSATION.

              
	 	 

      

    

    
      
        
          	
                	
                  a.

                	
                  Shares.  In
      consideration for Mexcor’s obligations set forth in this Agreement, within
      ten (10) days of the Effective Date, DA shall issue and deliver to Mexcor
      twelve million (12,000,000) shares of its common stock having $0.001 par
      value (the “Shares”), which shall bear the following
    legend:

                

        

         

      

    

    
      
        
          	
                   

                  RESTRICTIONS ON TRANSFERS

                   

                  “THE
      SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD UNLESS
      AND UNTIL THEY ARE SO REGISTERED OR THE CORPORATION RECEIVES AN OPINION OF
      COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT AN EXEMPTION FROM SUCH
      ACT IS AVAILABLE.”

                   

                

        

      

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              b.

            	
              Mexcor
      represents and acknowledges that:

            

    

    
      
        	 	 	 
	
                 
      

              	
                (i)

              	
                it
      is an “Accredited Investor” as defined in Regulation D of the 1933 Act,
      and that it understands that the Shares have not been and will not be
      registered under the 1933 Act or under the securities laws of any state,
      territory or jurisdiction of the United States;

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                (ii)

              	
                it
      is acquiring the Shares for itself and not for the account of any other
      person and not with a view to resale or distribution of the Shares in
      violation of the United States securities laws;

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                (iii)

              	
                it
      has received no representations of any type from any person with respect
      to the present or future value of the Shares or the prospects of DA and
      that it has such knowledge and experience in financial and business
      matters that it is capable of evaluating the merits and risks relating to
      an investment in the Shares. Mexcor understands that the Shares are
      restricted securities in the United States and cannot be resold in the
      United States or transferred in the United States unless they are
      registered under the United States Securities Act of 1933 (the “Act”) or
      pursuant to an exemption from such registration, and in accordance with
      applicable United States and/or state securities laws, and that prior to
      such sale in the United States, Mexcor will be required to and will
      furnish to DA an opinion of counsel reasonably satisfactory to DA
      establishing the basis on which such sale is permitted under the Act and
      such state securities laws. 

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                 
      

              	
                c.

              	
                Warrants.  In
      addition the forgoing, DA will issue to Mexcor warrants to acquire two
      million (2,000,000) shares of DA’s common stock at such time as Mexcor
      realizes $8,000,000 of net sales of Products (the “First Warrants”), and
      additional warrants to acquire two million (2,000,000) shares of DA’s
      common stock  at such time as Mexcor realizes twelve million
      dollars ($12,000,000) in net sales of Products over a twelve (12) month
      look-back period (the “Second Warrants”), provided such criteria are
      satisfied during the Initial Term.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                d.

              	
                Furthermore
      DA will issue to Mexcor, warrants to acquire 2,000,000 shares of DA’s
      common stock for each Product introduced by Mexcor that is added to
      Schedule A such that the brand becomes a Product (“Mexcor’s Additions”),
      provided that (i) Mexcor agrees in writing that DA will receive not less
      that 20% of any amount realized by Mexcor on the sale of Mexcor’s interest
      in the Mexcor Addition consistent with the rights granted by DA to Mexcor
      under Section 7 hereof, and (ii) DA receives not less than $75,000 in
      Drinks Fees as a result of sales of such Product in the ordinary course of
      business or Mexcor sells not less than 20,000 case equivalents of a Mexcor
      Addition (the “Third Warrants”).  The addition of Products to
      Schedule A under this subsection will only take place if DA will receive
      Drinks Fees on the sales of the Mexcor Addition consistent in amount to
      the fees it received with respect to the Initial Products and DA consents
      to the amendment of Schedules A and B consistent
  therewith.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                e.

              	
                The
      First, Second and Third Warrants will be exercisable for a period of five
      (5) years from the date of issuance at an exercise price of 75% of the
      average closing price of DA common stock over the fifteen trading days
      immediately preceding issuance of the
warrants.

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

    

    
      	
               
      

            	
              f.

            	
              Mexcor
      agrees that with respect to the Shares and the shares of common stock it
      acquires on exercise of the First, Second and Third Warrants (the “Mexcor
      Securities”) that it will not sell, in any calendar week, more than 25% of
      the average weekly trading volume of DA’s common stock on the OTCBB (or
      such other market on which its common stock trades, if it does not trade
      on the OTCBB), during the previous calendar quarter, and that prior to
      such sales, it will provide DA written notice of not less than 10 trading
      days in advance of such sale, of its intent to sell a specified number of
      shares, within 5 days of which, DA may acquire such shares at a purchase
      price equal to the averaging closing price for DA’s common stock for the
      five day period preceding the day notice is given to
  DA.

            

    

    

    
      	
              9.

            	
              DA’S CONSULTING
      SERVICES.  DA will provide general consulting services
      (the “Consulting Services”) with respect to iconic and general product
      marketing and development, regional and national marketing services (for
      example, newspaper advertising, radio advertising, billboards and similar
      matters), regulatory compliance, production, relationships with Product
      Rights Owners (as hereinafter defined), as well as such other items as are
      provided for herein and as to which the parties may mutually
      agree.  DA will be primarily responsible for all such
      matters.  DA will be reimbursed for any costs it incurs to third
      parties in performing the Consulting Services described hereunder,
      provided that reimbursement to DA will not exceed the current “Marketing
      Allocation” balance set forth on Schedule A.  In order to
      provide the Consulting Services referenced in this Section, DA will use it
      best efforts to maintain on its staff, at its expense, a product
      production executive and a marketing and events manager. and Mexcor will
      cooperate with such individuals by providing access to marketing and
      promotional events and such individuals will interact with members of
      Mexcor’s staff as well as the special staff referenced in Section 11
      hereto.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              DRINKS
      ROYALTIES.

            

    

    
      
        	 	 	 
	
                 
      

              	
                a.

              	
                Drinks
      Fees.  In consideration for the licenses and sub-licenses
      issued by DA to Mexcor hereunder, the other rights granted by DA to Mexcor
      in connection with the Products and for the Consulting Services, Mexcor
      will pay to DA a per-case or case equivalent royalty in the amount listed
      under the caption “Drinks Fees” on Schedule A attached hereto, which will
      increase by ten percent (10%) on August 15, 2011, with additional 10%
      increases (compounded) on August 15 of each successive year during the
      Initial Term.  In addition to the foregoing, for each case of
      Damiana 750 ml or Damiana 50 ml (collectively, “the Damiana Products”)
      distributed by Mexcor during the Term of this Agreement, Mexcor will pay
      to DA $10.00, provided, however, that except for this fee, the Damiana
      Products are not Products within the meaning of this
      Agreement.

              
	 	 	 

      

    

    
      	
               
      

            	
              b.

            	
              Minimum
      Royalties.  For the first full twenty-one (21) calendar
      months following the Effective Date, Mexcor will pay DA the greater of (i)
      the Drinks Fees described under Section 10.a (including fees calculated on
      the Damiana Products), or (ii) the following minimum royalty payments (the
      “Minimum Royalties”):

            

    

     

    
      
        
          
            
              	
                      Time
      Period

                    	 	
                      Monthly
      Minimum Royalty

                    	 
	
                      Months
      1–3

                    	 	$	0	 
	
                      Months
      4-6,

                    	 	$	20,000	 
	
                      Months
      7–9

                    	 	$	35,000	 
	
                      Months
      10–21

                    	 	$	50,000	 

            

          

        

      

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                c.

              	
                Time for
      Payment.  The Minimum Royalties for each month are
      payable on the fifteenth (15th) day of that
      month.  Notwithstanding the foregoing, in the event the accrued
      Drinks Fees for the preceding month under Section 10.a is greater than the
      Minimum Royalty for such preceding month, such greater amount (the “Excess
      Payment”) will be payable on the fifteenth (15th) day of the current month
      along with the Minimum Royalty payable with respect to the current
      month.  The Parties will reconcile any net over- or
      underpayments not less than once every six months during the Term of this
      Agreement.

              
	 	 	 

      

    

    
      	
               
      

            	
              d.

            	
              Efficiencies.  On
      each anniversary of the Effective Date, Mexcor and DA will review any cost
      savings with respect to the production of the Products (including
      component parts) that have been realized during the previous twelve (12)
      month period measured against the cost-of-goods-sold (COGS) set forth in
      Schedule A on the Effective Date..  Such cost savings are
      anticipated to occur as a result of Mexcor assuming the production
      responsibilities with respect to the Products.  Fifteen percent
      (15%) of the gross production savings, measured against the COGS set forth
      in the original Schedule A, will be added to the Drinks Fees otherwise
      payable to DA under Section 10.a, which addition will accrue promptly with
      respect to sales of Products commencing the day after such anniversary
      date.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    For
example, if Old Whisky River Bourbon’s Drinks Fee is ten dollars ($10) dollars
per case or case equivalent and the production costs related to Old Whiskey
River were reduced over the first year of the Agreement from the current $73.25
to $63.25 (a net saving of $10.00), the Drinks Fee with respect to this Product
would be increased by 15% of $10, or $1.50, resulting in a revised Drinks Fee of
$11.50.  If during the second year of the Agreement, the productions
costs increased from $63.25 to $73.25 (a net increase from the first year, but
no net increase or decrease when measured against the COGS on the Effective
Date), to the extent not counterbalanced by a pricing increase, the Drinks Free
for this Product will return to $10.00.

     

    
      
        	
                 
      

              	
                e.

              	
                DA
      acknowledges that the COGS set forth in Schedule A were provided by DA to
      Mexcor, and represents that those COGS are true and correct.  In
      the event that actual COGS vary from that set forth in Schedule A by more
      than 5%, Schedule A shall be appropriately amended.

              
	 	 	 

      

    

    
      	
               
      

            	
              f.

            	
              If
      profit margins for one or more Products increases as a result of price
      increases, the parties will negotiate an adjustment in the Drinks Fees for
      such Products(s) in good faith.

            

    

    

    ADMINISTRATION

     

    
      	
              11.

            	
              SPECIAL
      STAFF.  In addition to any and all personnel required to
      fulfill Mexcor’s responsibilities hereunder, Mexcor will also hire one
      sales manager for the Products selected by DA who is listed on Schedule C,
      attached hereto, to be compensated at substantially the rate of
      compensation which he/she currently receives, provided, however, that
      Mexcor shall not be obligated to maintain that position more than six
      months from the Effective Date if maintaining the position is not
      economically justifiable.  In the event such individual were not
      to continue providing services to Mexcor hereunder during the six-month
      period, DA can nominate replacements, reasonably acceptable to Mexcor, who
      will be similarly compensated.  Mexcor will also consider
      retaining one metro New York sales representative at a level of
      compensation reasonably acceptable to
Mexcor.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              12.

            	
              EXECUTIVE
      COMMITTEE.  Mexcor will use its best efforts to provide
      the Services in a manner that maximizes cost efficiencies and sales of
      Products and in doing so shall make the day-to-day decisions in the
      ordinary course of business in connection with the matters for which it is
      responsible hereunder, in all cases in accordance with the terms of this
      Agreement.  However, in performing the Services, Mexcor shall
      report to an Executive Committee, which will have the authority to make
      decisions with respect to more significant issues not typically viewed as
      ordinary-course-of-business decisions.  The more significant
      decisions which are not “ordinary course” decisions will be determined
      exclusively by the Executive Committee.  The Executive Committee
      will be formed by DA and Mexcor and consist of one nominee of DA, one
      nominee of Mexcor, and a third person to be selected jointly by DA and
      Mexcor.  Notwithstanding the foregoing, DA will make all
      decisions relating to Product Rights, relations with Product Rights Owners
      (as hereinafter defined), intellectual property, the appearance of the
      Product, or relationship with the iconic figures whose name, image or
      likeness or is related to the brand or who otherwise sponsors the brand or
      Product in any form.  In addition, decisions relating to the
      quality of the brand and marketing decisions related to any of the
      forgoing will also be made by DA.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      
        	
                13.

              	
                DUTIES
      OF MEXCOR. In performing the Services, Mexcor’s obligations,
      which it can satisfy through sub-contractors reasonably acceptable to DA,
      provided that Mexcor causes the obligations listed hereunder to be
      satisfied by such sub-contractors, which will in all cases be in
      accordance with applicable laws, will include, but not be limited to the
      following:

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                Mexcor
      shall produce each Product in quantities sufficient to meet purchase
      orders for each Product.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                The
      Products shall be produced in strict accordance with the Recipes, and
      Mexcor shall not change the Recipe for any Product in any manner without
      the prior written consent of DA. If required by any state or federal
      agency, Mexcor shall provide samples of the Product for analysis, with
      costs for such analysis to be paid by Mexcor.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                Mexcor
      shall be responsible for purchasing, at its cost, all ingredients and
      packaging materials for the Products based upon its sales forecasts.
      Mexcor shall ensure that all ingredients and packaging materials conform
      to DA’s specifications and are fit for their intended
  use.

              
	 	 	 

      

    

    
      	
               
      

            	
              d.

            	
              Mexcor
      shall obtain, with DA’s assistance, appropriate Certificates of Label
      Approval from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) and
      properly register the Products with any federal, state or local regulatory
      authority and take any other actions required to perform the Services in
      accordance with applicable laws. All costs incurred in obtaining state and
      federal label approvals, state brand registrations and other satisfying
      legal requirements shall be borne by
Mexcor.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                e.

              	
                Subject
      to any applicable laws, DA will provide to Mexcor a letter granting Mexcor
      authorization to use all DA Certificates of Label Approval from the TTB
      and indicating that Mexcor is the United States importer for those
      brands.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                f.

              	
                Mexcor
      shall be responsible for sales of the Products and related matters
      including, but not limited to invoicing, collection of receivables,
      payment of taxes, and reconciliation of purchaser
  accounts.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                g.

              	
                For
      each calendar month during this Agreement, Mexcor will provide DA with a
      detailed report to include, but not be limited to, (i) the quantity of
      each Product produced, and (ii) gross and net sales by customer for each
      Product, (iii) revenues collected on a per-Product basis, (iv) taxes paid
      and (v) any other description of Mexcor activities, costs or receipts
      reasonably requested by DA relating to the Products.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                h.

              	
                Mexcor
      shall be responsible to pay all federal, state of and/or local excise and
      other taxes on Products including those applying with respect to the sale
      of Products.  Mexcor shall also prepare and file required
      monthly production and shipment reports and any other reports required
      under applicable laws.

              
	 	 	 

      

    

    
      	
               
      

            	
              i.

            	
              At
      any time during the Term of this Agreement, and for a period of four (4)
      years thereafter, but in any event not more than once every calendar year,
      DA shall be entitled to retain an independent and qualified auditor to
      audit the books and records of Mexcor for the sole purpose of confirming
      the accuracy of accrued royalties and payments due
      hereunder.  Any such audit shall be performed during normal
      business hours and at DA’s expense, provided, however, that if such audit
      reveals an underpayment of five percent (5%) or more of the amount that
      should have accrued or should have been paid to DA for the period audited,
      then Mexcor shall bear the full expense of such audit.  In the
      event of any underpayment of royalties, Mexcor shall promptly remit to DA
      all amounts due.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      
        	
                14.

              	
                PACKING AND
      QUALITY.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                Mexcor
      shall be responsible for all packing filled and sealed into containers in
      sizes, only as approved by DA, and the labeling of Products, as selected
      by DA, in accordance with applicable laws. Containers shall be packed in
      secondary packaging approved by DA, properly sealed, and placed onto
      pallets in a shrink-wrapped standard configuration.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                Mexcor
      will apply or request sub-producers apply a printed production code upon
      each container indicating the date of production for the Product contained
      therein, or its “Best Before Date.”

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                The
      design, composition, and dimensions of all primary and secondary packaging
      shall be determined by DA and shall not be changed by Mexcor without DA’s
      written approval.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                d.

              	
                Mexcor
      will monitor production and packaging of each Product in accordance with
      Mexcor’s standard quality assurance procedures.

              
	 	 	 

      

    

    
      	
               
      

            	
              e.

            	
              Any
      and all consumer complaints received by Mexcor relating to the Products
      shall be forwarded to DA and Mexcor shall promptly respond to the
      complaint.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              15.

            	
              MARKETING
      BUDGET. A specific per-case amount per Product, determined by
      the number of cases of each Product sold, as set forth on Schedule A under
      the caption “Marketing Allocation,” shall be set aside and expended by
      Mexcor for marketing of each Product.  The type of marketing
      activities and the specific related costs shall be subject to the
      agreement of DA and Mexcor, however, DA’s consent will be required with
      respect to the foregoing.

            

    

    

    
      	
              16.

            	
              APPOINTMENT
      OF SUB-DISTRIBUTORS AND SUB-PRODUCERS.  Mexcor shall have
      the right to appoint sub-distributors and/or sub-producers to distribute
      and/or produce the Products, provided, however, that Mexcor shall ensure
      that any sub-producer, sub-distributor, or other party that fulfills all
      or part of Mexcor’s obligations hereunder will perform such services
      consistent with the terms of conditions of such all this Agreement and all
      applicable laws.

            

    

    

    
      
        	
                17.

              	
                INSURANCE.

              
	 	 

      

    

    
      	
               
      

            	
              a.

            	
              Mexcor
      shall, at its expense, maintain product liability insurance during the
      Term of the Agreement and for three (3) years after termination, in an
      amount of one million dollars ($1,000,000) per incident and two million
      dollars ($2,000,000) in the aggregate.  Mexcor shall provide DA
      with a certificate of insurance evidencing the existence of this coverage
      no later than thirty (30) days after execution of this
      Agreement.  Mexcor’s policy shall name DA as a co-insured and
      provide that DA will be given at least ten (10) days prior notice of
      cancellation or expiration of the
policy.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                b.

              	
                Mexcor
      shall procure and maintain in full force and effect workman’s
      compensation, general liability, bodily injury, and public liability
      property damage insurance policies including broad form vendor’s coverage
      in an amount of not less than five-hundred thousand dollars
      ($500,000).  Mexcor shall, on an annual basis, furnish DA with a
      certificate of insurance evidencing that it has such insurance
      coverage.  Mexcor agrees to notify DA at least ten (10) days
      prior to the cancellation or expiration of such
  policies.

              
	 	 	 

      

    

    
      	
               
      

            	
              c.

            	
              Mexcor
      shall maintain sufficient insurance to protect the Product Rights, and
      shall notify DA at least ten (10) days prior to the cancellation or
      expiration of such insurance.

            

    

    

    REPRESENTATION AND
WARRANTIES

     

    
      
        	
                18.

              	
                REPRESENTATIONS AND
      WARRANTIES.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                Each
      party represents and warrants to the other party that it is duly organized
      and in good standing in its respective jurisdiction of organization, that
      it has the authority to enter into and perform this Agreement, and that
      the consummation of this Agreement will not violate any agreement or
      judicial order to which it is a party or by which it is
    bound.

              
	 	 	 

      

    

    
      	
               
      

            	
              b.

            	
              DA
      represents and warrants that it is authorized to sub-license the Products
      Rights to Mexcor to the extent required for Mexcor to perform the
      Services.  DA warrants that the Products Rights do not, to the
      best of DA's knowledge, infringe upon any copyrights, patents, trademarks,
      trade dress, or other property rights of any person, firm or
      entity.  DA further represents and warrants that it is unaware
      of any current, potential, and/or threatened claim for infringement of a
      third-party’s intellectual property rights relating to the Products
      Rights.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                c.

              	
                Mexcor
      represents and warrants to DA that (i) it currently has, will acquire,
      and/or will maintain during the term of this Agreement, all state and
      federal licenses, permits, registrations and certificates necessary to
      produce or have produced, package, import, store, distribute and sell the
      Products and to satisfy its obligations hereunder and that Mexcor will use
      its best efforts to cause any sub-producers or sub-distributors
      to  have and maintain all such licenses, permits, registrations
      and certificates, (ii) all Products will be brewed and packaged in strict
      accordance with the Recipe and be free from adulteration and foreign
      contaminants, (iii) both DA and the Product Rights Owner, as more
      fully described herein, may inspect production records and operations
      related to the Product upon request and during normal Mexcor business
      hours, (v) it will follow and that Mexcor will use its best efforts to
      cause sub-producers to follow good manufacturing practices in the
      production of the Products and all Products shall be of a good and
      merchantable quality and fit for the purpose for which intended, and (vi)
      the Recipe and production and packaging of the Products will be in
      accordance with all applicable state and federal and foreign
      laws.

              
	 	 	 

      

    

    
      	
               
      

            	
              d.

            	
              EXCEPT
      AS EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO OTHER WARRANTIES AND
      HEREBY DISCLAIM ALL OTHER WARRANTIES, EXPRESS OR
  IMPLIED.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      
        	
                19.

              	
                PRODUCT
      RIGHTS.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                Mexcor
      recognizes that the Product Rights have great value and acknowledges that
      certain of the Product Rights are licensed and not owned by DA and all
      accompanying rights thereto, including all goodwill, are the property of
      the  owner of the Product Rights (the “Product Rights
      Owner”).  Mexcor shall not, during the term of this Agreement or
      anytime thereafter, assert any right of ownership over the Product
      Rights in any manner, use the Product Rights other than in
      accordance with the terms of this Agreement, or otherwise misappropriate
      the Product Rights for its own use and gain.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                Mexcor
      agrees that it will not, in any manner, disparage or diminish the image
      and quality of any of the Products, the Product Rights, or of
      the  owners of the Product Rights (the “Product
      Rights Owners”) and, other than as expressly permitted under this
      Agreement or with the written consent of DA, shall never (i) engage in any
      communications, public relations, promotion marketing, or sales activities
      relating to Mexcor’s involvement with production of the Products, or the
      affiliation of the Products with the Product Rights Owners, or (ii) make
      use, in any way, of the Products, the Product Rights, or of the name or
      likeness of the Product Rights Owner, or any affiliate thereof,
      except in furtherance of this Agreement.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                Mexcor
      shall cooperate with DA in preserving and protecting the integrity and
      value of the Product Rights. Mexcor agrees to indemnify and hold DA
      harmless for any misuse or misappropriation of the Product Rights by
      any person including any sub-distributor or sub-manufacturer, and to
      compensate DA for any damages incurred as a result of such misuse or
      misappropriation by Mexcor or sub-distributor or
    sub-producer.

              

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

    

    
      	
               
      

            	
              d.

            	
              Mexcor
      acknowledges and expressly agrees that the Product Rights Owners
      (other than DA and its affiliates) are not a party to this Agreement, and
      Mexcor shall have no recourse whatsoever, whether based in law or in
      equity, against the third-party Product Rights Owner for any claim
      Mexcor may have arising from this Agreement.  To the extent
      Mexcor may, under any law, have any claim against third-party Product
      Rights Owner arising from this Agreement, Mexcor hereby expressly and
      unequivocally waives such claim in its entirety and will indemnify the
      third-party Product Rights Owners for any and all costs, expenses, or
      damages, including attorney fees, incurred by the Product
      Rights Owners resulting from Mexcor taking any action inconsistent
      with Mexcor’s stated waiver and agreement contained in this
      paragraph.

            

    

    

    OTHER AGREEMENTS AND
ACKNOWLEDGEMNTS

     

    
      	
              20.

            	
              RELATIONSHIP
      OF THE PARTIES. Mexcor and DA shall be deemed independent
      contractors and nothing herein contained shall be construed to create any
      partnership, joint venture, agency, or employment relationship between the
      parties.  Neither party shall have the power or right to bind
      the other party to any third party.

            

    

    

    
      
        	
                21.

              	
                INDEMNIFICATION.

              
	 	 

      

    

    
      
        	
                 
      

              	
                (a)

              	
                Mexcor
      agrees to defend, indemnify and hold DA harmless against any and all
      claims, costs, damages, liabilities, expenses, losses, causes of action
      (including reasonable attorneys fees) arising out of, due to, or in any
      way connected with (i) Mexcor’s breach of any agreement, representation,
      or covenant contained in this Agreement, (ii) Mexcor's failure to properly
      perform the Services including to properly produce, package, and
      distribute the Products, or (iii) any violation by Mexcor of federal or
      state law.

              

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

    

    
      	
               
      

            	
              (b)

            	
              DA
      agrees to defend indemnify and hold Mexcor harmless against any and all
      claims, costs, damages, liabilities, expenses, losses, causes of action
      (including reasonable attorneys fees) arising out of, due to, or in any
      way connected with (i) DA’s breach of any agreement, representation or
      covenant contained in this Agreement; or (ii) DA’s failure to properly
      perform its obligations hereunder.

            

    

    

    
      
        	
                22.

              	
                TERMINATION FOR CAUSE
      AND DAMAGES.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                In
      addition to any other termination provision contained herein, either party
      may terminate this Agreement for a material breach by the other party upon
      ninety days (90) days written notice to the other party, provided,
      however, that the party receiving notice shall have ninety (90) days to
      cure or remedy any deficiency or alleged breach contained in the notice
      received.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                This
      Agreement may be terminated if either party fails to make payment for any
      undisputed amounts due under this Agreement within fifty-five (55) days
      after receipt of written notice.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                c.

              	
                Upon
      termination of this Agreement, Mexcor will immediately cancel new
      production of the Products, but will be allowed to fulfill outstanding
      orders and distribute all finished inventory and current production
      scheduled to be packaged at the time of
  termination.

              

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                 
      

              	
                d.

              	
                Any
      claim by either party arising out of or relating to this Agreement must be
      brought no later than 365 days after the latter of: (i) the date the claim
      arises, or (ii) the date the claimant first becomes aware of the
      claim.  Claims not brought within the time provided herein shall
      be barred.

              
	 	 	 

      

    

    
      	
               
      

            	
              e.

            	
              Claims
      for money damages arising out of any action amounting to a breach of this
      Agreement by either party shall be limited to the actual damages caused by
      said breach.  Neither party shall be entitled to any
      consequential, special or exemplary damages.  Either party may
      make a claim for equitable relief.

            

    

    

    
      
        	
                23.

              	
                CONFIDENTIALITY AND
      IMPLEMENTATION.

              
	 	 

      

    

    
      	
               
      

            	
              a.

            	
              DA,
      in addition to granting the sub-licenses to Mexcor provided in this
      Agreement, DA may provide Mexcor with designs for primary and secondary
      packaging materials, marketing plans, and other information, materials,
      and instructions related to the Product, the Product Rights, the Product
      Rights Owner, the brand name, and the trade name (all of the foregoing is
      to be considered as “Confidential Information.”  Mexcor will
      implement all such designs and instructions of DA with respect to the
      foregoing.

            

    

    

    
      	
               
      

            	
              b.

            	
              A
      party’s Confidential Information, and all other materials, information,
      data or records provided by one party to the other relating to this
      Agreement shall be the sole and exclusive property of the party providing
      such materials (collectively referred to as “Confidential Information”).
       The parties agree that all Confidential information provided to
      either party by the other in connection with this Agreement shall not be
      disclosed to any other person and shall only be used in the performance of
      this Agreement and for no other reason.  Each party shall return the
      original and all copies of any Confidential Information promptly following
      termination of this Agreement.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              c.

            	
              In
      the event of any breach of confidentiality, the injured party may seek
      injunctive relief against the other party's disclosure of the Proprietary
      and Confidential Information and be entitled to damages for each
      individual instance of disclosure whether or not such instances of
      disclosure are of the same Proprietary and Confidential
      Information. This agreement of confidentiality and non-disclosure
      shall not apply to information which (i) is in the public domain at the
      time of the receipt from the other party, or which comes into the public
      domain without breach of an obligation hereunder; (ii) is known and can be
      shown to be known by one party at the time of receipt from the other
      party; (iii) becomes known to one party through a third source whose
      acquisition was independent of the other party and not in breach of any
      obligation under this Agreement; or (iv) is required to be disclosed under
      applicable laws.

            

    

    

    
      	
              24.

            	
              ENTIRE
      AGREEMENT.  This Agreement and the exhibits referred to
      herein constitute the entire Agreement between the parties pertaining to
      the subject matter hereof, and supersede all prior agreements,
      understandings, negotiations and discussions of the parties, whether oral
      or written, and there are no warranties, representations or other
      agreements between the parties in connection with the subject matter
      hereof, except as specifically set forth
herein.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
              25.

            	
              SEVERABILITY.  If
      any term or provision of this Agreement shall, to any extent, be
      determined to be invalid or unenforceable, the remainder of this Agreement
      shall not be affected thereby, and each remaining term and provision of
      this Agreement shall be valid and enforceable to the extent permitted by
      law.

            

    

    

    
      
        	
                26.

              	
                MISCELLANEOUS.

              
	 	 

      

    

    
      
        	
                 
      

              	
                a.

              	
                Governing
      Law and Venue.  This Agreement shall be construed and
      interpreted according to the laws of the State of Texas without reference
      to its conflicts of laws principles.  The Parties agree that any
      dispute arising out of this Agreement shall be brought Harris County,
      Texas or, in the case of federal jurisdiction, the United States District
      Court for the Southern District of Texas, Houston
  Division.

              
	 	 	 

      

    

    
      
        	
                 
      

              	
                b.

              	
                Notwithstanding
      the foregoing, any dispute between the parties as to conformity of
      Products to the Recipe shall be determined by Brewing and Distilling
      Analytical Services, 128 Shady Lane, Lexington, KY 40503, at the expense
      of DA.

              
	 	 	 

      

    

    
      	
               
      

            	
              c.

            	
              Attorneys'
      Fees.  If either party brings an action to enforce this
      Agreement, or to declare rights under this Agreement, the prevailing party
      in any such action shall be entitled to its reasonable attorneys' fees to
      be paid by the losing party.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                d.

              	
                Assignment.  Either
      party may assign this Agreement, subject to all of the terms and
      provisions hereof and to the written consent of the non-assigning party,
      which may be withheld by DA in its sole discretion but may not be
      unreasonably withheld by Mexcor.  All provisions of this Agreement
      shall be binding upon the respective employees, delegates, successors,
      heirs and permitted assignees of the parties.

              
	 	 	 

      

    

    
      	
               
      

            	
              e.

            	
              Notices.  Unless
      otherwise specifically provided herein, all communications or notices
      required or permitted by this Agreement shall be in writing and shall be
      deemed to have been given at the earlier of the date when actually
      delivered to an officer of the other or three (3)  days after
      mailing in the United States mail via certified or registered mail, return
      receipt requested, and addressed as follows, unless and until either party
      notifies the other of a change of
address:

            

    

    

    If to
Mexcor:

    Mr.
Eduardo Morales

    Mexcor,
Inc.

    8950
Railwood Drive

    Houston,
Texas 77078

    

    If to
DA:

    Mr. J.
Patrick Kenney, CEO

    Drinks
Americas Holdings, Ltd.

    372
Danbury Rd.

    Wilton,
CT 06897

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              f.

            	
              Waiver
      and Modification.  Unless otherwise specifically provided
      herein, no waiver or modification of any of the terms of this Agreement
      shall be valid unless in writing and signed by both parties.  No
      waiver by either party of a breach or default under this Agreement shall
      be deemed a waiver by such party of a prior or subsequent breach or
      default of a like or similar
nature.

            

    

    

    
      	
               
      

            	
              g.

            	
              Force
      Majeure.  In the event that either party is prevented or delayed
      from performing its obligations under this Agreement by virtue of fires,
      labor strikes, labor disputes, accidents, sabotage, federal or state
      legislation, or orders there under, judicial action, acts of God, war,
      acts of terrorism, or civil commotion, such nonperformance shall be
      excused and shall not constitute a default under this Agreement; provided,
      that in the event that such nonperformance continues for a period in
      excess of three (3) consecutive months, either party shall have the option
      to terminate this Agreement immediately upon written
    notice.

            

    

    

    
      	
               
      

            	
              h.

            	
              Further
      Instruments.  The parties shall execute and deliver any and all
      other instruments and shall take any and all other actions as may be
      reasonably necessary to carry out the intent of this
      Agreement.

            

    

    

    
      	
               
      

            	
              i.

            	
              Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which shall
      be deemed an original, but all of which together shall constitute one and
      the same instrument. The descriptive headings herein are inserted for
      convenience only and are not intended to be a part of or to affect the
      meaning or interpretation of this Agreement. DA and Mexcor hereby
      acknowledge that this Agreement shall not be construed in favor of one
      party more than the other based upon which party drafted the
      Agreement.

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

         

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

     

    
      
        
          
            
              	 
      	 	 
      
	 
      	 	 
      
	
                      Drinks
      Americas Holding, Ltd.

                    	 	
                      Mexcor
      Distributors

                    
	
                      By:

                    	 	
                      By:

                    
	
                      Title:

                    	 	
                      Title:

                    

            

          

        

      

    

     

    
      
        
        

      

      
        30

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