Document:

PROMISSORY
      NOTE

     

     

    
      	$500,000.00	 	
              September
                12,
                2008

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, PURPLE BEVERAGE COMPANY, INC., a Nevada corporation
      ("Debtor"), promises to pay to the order of Barry Honig., or its successors
      or
      assigns ("Lender"), on October 13, 2008 ("Maturity Date"), at 551 Fifth Avenue,
      Suite 1601, New York, New York 10176, or at such other place as the Lender
      may
      designate from time to time in writing to the Debtor, in lawful money of the
      United States of America, the principal sum of Five Hundred Thousand Dollars
      and
      no cents ($500,000.00), together with interest on the unpaid principal balance
      of this Note from the date hereof until paid at five percent (5%) per annum.
      In
      the event of Debtor's default hereunder, interest on amounts past due pursuant
      to this Note shall be paid at a rate of eighteen percent (18%) per annum.
      Interest shall be computed on the basis of a 360-day year.

    

    The
      delay
      or failure to exercise any right hereunder shall not waive such right. The
      undersigned hereby waives demand, presentment, protest, notice of dishonor
      or
      nonpayment, notice of protest, any and all delays or lack of diligence in
      collection hereof and assents to each and every extension or postponement of
      the
      time of payment or other indulgence.

    

    In
      the
      event of default hereunder such that this Note is placed in the hands of an
      attorney for collection (whether or not suit is filed), or if this Note is
      collected by suit or legal proceedings or through bankruptcy proceedings, Debtor
      agrees to pay reasonable attorney’s fees and expenses of
      collection.

    

    This
      Note
      shall be governed by, and construed and interpreted in accordance with, the
      laws
      of the State of New York. Exclusive jurisdiction relating to this Note shall
      vest in courts located in New York State.

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed and delivered this Note
      the
      date and year first above written.

     

    
      	 	 	 
	 	PURPLE BEVERAGE COMPANY, INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Theodore Farnsworth
	 	
              
Name:
              Theodore Farnsworth
	 	Title:
              Chief Executive OfficerCONSULTING
      AGREEMENT

     

    This
      CONSULTING AGREEMENT (this “Agreement”)
      is
      entered into as of September 15, 2008, by and between Purple Beverage Company,
      Inc., a Nevada corporation (the “Company”)
      and
      Barry Honig, an individual (the “Consultant”).

     

    Recitals

     

    WHEREAS,
      the Company has a pre-existing relationship with Consultant and Consultant
      has
      previously discussed with the Company his skills and relationships and has
      offered to make introductions useful to the Company, and has advanced certain
      funds as short-term bridge loans to the Company and Company now desires to
      engage Consultant to provide certain Services (as defined in Section
      3 below)
      for compensation, and Consultant desires to provide the Services to the Company,
      upon the terms and subject to the conditions set forth below.

     

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

     

    1.  Engagement.
      The
      Company hereby engages Consultant to provide the Services during the Term (as
      defined below), and Consultant hereby accepts such engagement to provide the
      Services during the Term (the “Engagement”).
      

     

    2.     Term
      of Engagement; Termination.
      

     

    a.  Term.
      The
      Engagement shall commence on the date hereof and shall terminate on the first
      anniversary of the date hereof, unless earlier terminated in accordance with
      Section
      2(b)
      below
      (the “Term”).
      

     

    b.  Termination.
      This
      Agreement may be terminated by Consultant or the Company at any time upon thirty
      (30) days prior written notice of such termination to the other
      party.

     

    c.  Effect
      of Termination.
      In the
      event of a termination of this Agreement, (i) Consultant shall still be entitled
      to receive all of the Consulting Shares (as defined in Section
      4)
      and
      (ii) the Company shall reimburse Consultant for all expenses previously approved
      by the Company incurred by Consultant in connection with Consultant’s
      Engagement. 

     

    3.  Services
      to be Provided by Consultant.
      During
      the Term, Consultant shall provide services to the Company as set forth on
      Exhibit
      A,
      as well
      as any other services that are mutually agreed between the parties hereto
      (collectively, the “Services”).
      The
      parties hereto acknowledge and agree that the Services to be provided are in
      the
      nature of advisory services only, and Consultant shall have no responsibility
      or
      obligation for execution of the Company’s business or any aspect thereof nor
      shall Consultant have any ability to obligate or bind the Company in any
      respect. Consultant shall have control over the time, method and manner of
      performing the Services. Consultant shall render such services as are from
      time
      to time requested by the Chief Executive Officer of the Company, Theodore
      Farnsworth.

     

    
      
        
        

      

      
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    4.  Compensation.
      In
      consideration for the Services to be provided hereunder, Consultant shall
      receive, promptly after the execution of this Agreement, as a consulting fee,
      4,500,000 shares of the Company’s common stock, par value $0.001 per share (the
“Consulting
      Shares”)
      consisting of 2,500,000 shares in consideration of bridge loans advanced by
      Consultant and 2,000,000 shares issued under the Company’s 2007 Incentive
      Plan.

     

    5.  Piggy-Back
      Registration Rights. 

     

    (a) The
      Company shall notify Consultant in writing at least twenty (20) days prior
      the
      filing of any registration statement under the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      in
      connection with a public offering of shares of the Company's
      common stock (the “Common
      Stock”)
      (including, but not limited to, registration statements relating to secondary
      offerings of securities of the Company but excluding any registration statements
      (i) on Form S-4 or S-8 (or any successor or substantially similar form), or
      of
      any employee stock option, stock purchase or compensation plan or of securities
      issued or issuable pursuant to any such plan, or a dividend reinvestment plan,
      (ii) otherwise relating to any employee, benefit plan or corporate
      reorganization or other transactions covered by Rule 145 promulgated under
      the
      Securities Act, or (iii) on any registration form which does not permit
      secondary sales or does not include substantially the same information as would
      be required to be included in a registration statement covering the resale
      of
      the Consulting Shares and will afford Consultant an opportunity to include
      in such registration statement all or part of the Consulting Shares held by
      Consultant. In the event Consultant desires to include in any such registration
      statement all or any part of the Consulting Shares held by Consultant,
      Consultant shall within ten (10) days after the above-described notice from
      the
      Company, so notify the Company in writing, including the number of
      such Consulting Shares Consultant wishes to include in such registration
      statement. If Consultant decides not to include all
      of his Consulting Shares in any registration statement thereafter
      filed by the Company Consultant shall nevertheless continue to have the right
      to
      include any Consulting Shares in any subsequent registration statement or
      registration statements as may be filed by the Company with respect to the
      offering of the securities, all upon the terms and conditions set forth herein.
       

     

    (b) In
      connection with its obligation under this
      Section 5,
      the
      Company will (i) furnish to Consultant without charge, at least one
      copy of any effective Registration Statement and any post-effective amendments
      thereto, including financial statements and schedules, and, if
      Consultant so requests in writing, all documents incorporated therein by
      reference and all exhibits (including those incorporated by reference) in the
      form filed with the Securities and Exchange Commission; and (ii) deliver to
      Consultant and the underwriters, if any, without charge, as many copies of
      the
      then effective the prospectus included the Registration Statement, as the same
      may be amended or supplemented, (including such prospectus subject to
      completion) (the “Prospectus”)
      and
      any amendments or supplements thereto as such Persons may reasonably
      request.

     

    (c) As
      a
      condition to the inclusion of his Consulting Shares,
      Consultant shall furnish to the Company such information regarding
      Consultant and his affiliates and the distribution proposed by
      Consultant as the Company may request in writing or as shall be required in
      connection with any registration, qualification or compliance referred to in
      this Agreement.

     

    
      
        
        

      

      
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    (d) Consultant agrees
      by acquisition of Consulting Shares that, upon receipt of any notice
      from the Company of the happening of any event that, in the good faith judgment
      of the Company’s Board of Directors, requires the suspension of
      Consultant ’s rights under this
      Section 5, Consultant will
      forthwith discontinue disposition of Consulting Shares pursuant to the
      then current Prospectus until Consultant is advised in writing by the Company
      that the use of the Prospectus may be resumed. If so directed by the Company,
      on
      the happening of such event, Consultant will deliver to the Company
      (at the Company’s expense) all copies, other than permanent file copies then in
      buyer’s possession, of the Prospectus covering such Consulting Shares
      at the time of receipt of such notice.

     

    (e) Consultant hereby
      covenants with the Company (i) not to make any sale
      of Consulting Shares without effectively causing the prospectus
      delivery requirements under the Securities Act to be satisfied, and (ii) if
      such
      Consulting Shares are to be sold by any method or in any transaction other
      than on a national securities exchange, the Nasdaq National market, Nasdaq
      SmallCap Market or in the over-the-counter market, in privately negotiated
      transactions, or in a combination of such methods, to notify the Company at
      least 5 business days prior to the date on which Consultant first offers to
      sell
      any such Consulting Shares.

     

    (f) Consultant acknowledges
      and agrees that the Consulting Shares sold pursuant to the
      Registration Statement described in this Agreement are not transferable on
      the
      books of the Company unless the stock certificate submitted to the transfer
      agent evidencing such Consulting Shares is accompanied by a
      certificate reasonably satisfactory to the Company to the effect that (x)
      the Consulting Shares have been sold in accordance with such
      Registration Statement and (y) the requirement of delivering a current
      Prospectus has been satisfied.

     

    (g) Consultant shall
      not take any action with respect to any distribution deemed to be made pursuant
      to such Registration Statement, which would constitute a violation of Regulation
      M under the Securities Exchange Act of 1934, as amended, or any other applicable
      rule, regulation or law.

     

    (h) Upon
      the
      expiration of the effectiveness of any Registration Statement,
      Consultant shall discontinue sales of shares pursuant to such Registration
      Statement upon receipt of notice from the Company of his intention to
      remove from registration the shares covered by such Registration Statement
      which
      remain unsold, and Consultant shall notify the Company of the number of
      shares registered which remain unsold immediately upon receipt of such notice
      from the Company

     

    (i) In
      the
      case of the registration of any underwritten primary offering initiated by
      the
      Company (other than any registration by the Company on Form S-4 or Form S-8
      (or
      any successor or substantially similar form), or of (i) an employee stock
      option, stock purchase or compensation plan or of securities issued or issuable
      pursuant to any such plan, or (ii) a dividend reinvestment plan) or any
      underwritten secondary offering initiated at the request of a holder of
      securities of the Company pursuant to registration rights granted by the
      Company, Consultant agrees not to effect any public sale or distribution of
      securities of the Company, except as part of such underwritten registration,
      during the period beginning fifteen (15) days prior to the closing date of
      such
      underwritten offering and during the period ending ninety (90) days after such
      closing date (or such longer period as may be reasonably requested by the
      Company or by the managing underwriter or underwriters).

     

    
      
        
        

      

      
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    (j) Anything
      to the contrary contained in this Agreement notwithstanding, when, in the
      opinion of counsel for the Company, registration of
      the Consulting Shares is not required by the Securities Act, in
      connection with a proposed sale of such Consulting Shares,
      Consultant shall have no rights pursuant to this
      Section 5.
      In
      furtherance and not in limitation of the foregoing, Consultant shall have
      no rights pursuant to this Section 5 at
      such time as all of Consultant’s Consulting Shares
      may be sold in a three-month period pursuant to Rule 144.

     

    6.  Expenses.
      The
      Company shall reimburse Consultant for all reasonable expenses incurred by
      Consultant in providing the Services hereunder no later than thirty (30) days
      after the submission of an invoice evidencing such expenses in a form reasonably
      satisfactory to the Company; provided that the Company shall not be obligated
      to
      reimburse Consultant for expenses if incurred without the Company’s prior
      written approval. 

     

    7.  No
      Exclusivity.
      The
      Company hereby acknowledges and agrees that nothing in this Agreement shall
      prohibit Consultant from continuing to provide services similar to the Services
      to other companies or otherwise engaging in Consultant’s business activities.

     

    8.  Independent
      Contractor Status.
      It is
      understood and agreed that in the performance of the Services hereunder,
      Consultant is acting as an independent contractor and not as an agent or
      employee of, or partner, joint venturer or in any other relationship with,
      the
      Company. Consultant acknowledges that no income, social security or other taxes
      will be withheld or accrued by the Company, on Consultant’s behalf. Neither the
      Company nor Consultant has the authority to bind the other in any agreement
      without the prior written consent of the entity to be bound.

     

    9.  Confidentiality.
      In
      connection with Consultant’s Engagement, it is contemplated that the Company
      will not supply Consultant with non-public or proprietary information concerning
      the Company and its business and operations and affiliates without the prior
      written agreement of Consultant to receive such Confidential Information
      (“Confidential
      Information”).
      

     

    10.  Publicity.
      No
      party hereto shall disclose the existence or terms of this Agreement to any
      person or entity without the prior written consent of the other party
      hereto.

     

    11.  Legal
      Representation.
      Each
      party hereto acknowledges that it has been represented by independent legal
      counsel in the preparation of the Agreement. Each
      party recognizes and acknowledges that counsel to the Company has represented
      Consultant in connection with various legal matters and each party waives any
      conflicts of interest or other allegations that it has not been represented
      by
      its own counsel.

     

    12.  Consultant
      Representations.
      In
      connection with the Consulting Shares to be acquired by Consultant hereunder,
      Consultant represents and warrants to the Company that:

     

    a.  Consultant
      acknowledges that Consultant has been afforded the opportunity to ask questions
      of and receive answers from duly authorized officers to other representatives
      of
      the Company concerning an investment in the Consulting Shares, and any
      additional information which Consultant has requested.

     

    
      
        
        

      

      
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    b.  Consultant
      has had experience in investments in restricted and publicly traded securities,
      and has had experience in investments in speculative securities and other
      investments which involved the risk of loss of investment. Consultant
      acknowledges that an investment in the Consulting Shares is speculative and
      involves the risk of loss. Consultant has the requisite knowledge to assess
      the
      relative merits and risks of this investment and Consultant can afford the
      risk
      of loss of his entire investment in the Consulting Shares. 

     

    c.  Consultant
      is an accredited investor, as that term is defined in Regulation D promulgated
      under the Securities Act of 1933.

     

    d.  Consultant
      is acquiring the Consulting Shares for Consultant’s own account for investment
      and not with a view toward resale or distribution thereof except in accordance
      with applicable securities laws.

     

    13.  General
      Terms.
      

     

    a. Any
      notice to be given hereunder by a party to any other party hereto may be
      effectuated in writing by personal delivery, by mail, registered or certified,
      postage prepaid, with return receipt requested, or by facsimile or other
      electronic transmission and addressed to such party at the address set forth
      on
      the signature page below. 

     

    b. If
      any
      provision of this Agreement is determined by a court of competent jurisdiction
      to be invalid or unenforceable, that provision shall be deemed modified to
      the
      extent necessary to make it valid or enforceable, or if it cannot be so
      modified, then severed, and the remainder of the Agreement shall continue in
      full force and effect. 

     

    c. All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the laws of the State of Delaware, without regard to the principles of
      conflicts of law thereof. Each party agrees that all legal proceedings
      concerning the interpretations and enforcement of this Agreement (whether
      brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced exclusively
      in
      the state and federal courts sitting in the City of New York. Each party hereto
      hereby irrevocably submits to the exclusive jurisdiction of the state and
      federal courts sitting in the City of New York for the adjudication of any
      dispute hereunder or in connection herewith or with respect to the enforcement
      of this Agreement, and hereby irrevocably waives, and agrees not to assert
      in
      any suit, action or proceeding, any claim that it is not personally subject
      to
      the jurisdiction of any such court. Each party hereto hereby irrevocably waives
      personal service of process and consents to process being served in any such
      suit, action or proceeding by delivering a copy thereof via overnight delivery
      (with evidence of delivery) to such party at the address in effect for notices
      to it under this Agreement and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. 

     

    d. This
      Agreement embodies the entire understanding of the parties hereto with respect
      to the subject matter hereof, and supersedes all prior or contemporaneous
      agreements, arrangements or understandings with respect to the subject matter
      hereof, whether oral or written. 

     

    
      
        
        

      

      
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    e. This
      Agreement may not be modified except in a writing signed by the parties hereto.
      

     

    f. No
      term
      of this Agreement may be waived, except in a writing signed by the party hereto
      entitled to the benefit of such term. 

     

    g. Each
      party hereto represents and agrees that such party is authorized to enter into
      this Agreement and this Agreement constitutes a legal, valid and binding
      obligation of such party, enforceable in accordance with its terms. This
      Agreement may not be assigned by any party.

     

    h. This
      Agreement may be executed in one or more counterparts each of which shall be
      deemed an original and all of which counterparts, taken together, shall
      constitute one and the same Agreement.

     

    
      
        
        

      

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

     

    
      	 	 	
              Purple
                Beverage Company, Inc. 

            
	 	 	 
	 	 	 	 
	/s/
              Barry
              Honig	 	By:	/s/
              Theodore
              Farnsworth
	
              
Barry
              Honig	 	 	
              
Name:
              Theodore Farnsworth
	
            	 	 	
              Title:
                Chief Executive Officer

            
	 	 	 	 
	 	 	 	 
	
              Address
                for Notice:

            	 	
              Address
                for Notice:

            
	 	 	 	 
	
              Barry
                Honig

              595
                S. Federal Hwy.

              Suite
                600

              Boca
                Raton, FL 33432

            	 	
              Theodore
                Farnsworth, Chief Executive Officer

              Purple
                Beverage Company, Inc.

              450
                East Las Olas Blvd.

              Suite
                830

              Fort
                Lauderdale, Florida 33301

            

    

     

    
      
        
        

      

      
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    EXHIBIT
      A

     

    Services

     

    
      	
              A.

            	
              Assist
                the Company in formulating potential business and acquisition
                strategies.

            

    

     

    
      	
              B.

            	
              General
                business advice and business
                development.

            

    

     

    
      
        
        

      

      
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