Document:

Exhibit
10.9

 

NASH FINCH COMPANY

 

1997 NON-EMPLOYEE DIRECTOR

STOCK COMPENSATION PLAN

(2003 Revision)

 

1.             Description.

 

1.1           Name.  The name of the Plan is the “Nash Finch
Company 1997 Non-Employee Director Stock Compensation Plan (2003 Revision).”

 

1.2           Purpose.  The purpose of the Plan is to provide
Qualified Directors with the opportunity to defer receipt of Director Cash
Compensation through credits to their Share or Cash Accounts.

 

1.3           Type.  The Plan is maintained primarily for the
purpose of providing deferred compensation for Qualified Directors and is
intended to be unfunded for tax purposes. The Plan will be construed and
administered in a manner that is consistent with and gives effect to the
foregoing.

 

1.4           Background.  As originally adopted, the Plan provided
that, as of the Effective Time, all Qualified Directors (a) would receive 50
percent of their Annual Retainer in the form of either Shares or credits to
their Share Accounts under this Plan, and (b) would be entitled to defer
receipt of some or all of the balance of their director compensation through
credits to their Cash or Share Accounts under this Plan.  As part of changes approved by the Board and
the Corporate Governance Committee of the Board to the Company’s overall
program for compensating non-employee directors, the decision was made to
terminate, as of December 31, 2003, the requirement in this Plan that Qualified
Directors receive 50% of their Annual Retainer in the form of Shares or credits
to their Share Accounts.

 

2.             Participation.

 

2.1           Eligibility.

 

(a)           Each individual who
is a Qualified Director at any point during a calendar quarter ending on or
before December 31, 2003 will receive the portion of the Annual Retainer
payable with respect to such quarter in the form of Retainer Shares to the
extent provided and in accordance with Section 3.2.

 

(b)           Each individual who
is a Qualified Director on the first day of a calendar year is eligible to make
deferral elections pursuant to Section 3.3 with respect to such calendar
year.  An individual who becomes a
Qualified Director after the first day of the calendar year is eligible to make
deferral elections pursuant to Section 3.3 with respect to the remainder of
such calendar year.  A Participant who
receives a distribution, pursuant to Section 4.1(d)(i) or (iii), is not
eligible to elect additional deferrals pursuant to Section 3.3 until the
one-year anniversary of such distribution.

 

 

2.2           Ceasing to be Eligible.  An individual who ceases to be a Qualified Director is not
eligible to (a) receive Retainer Shares pursuant to Section 3.2 other than such
shares relating to the Annual Retainer payable with respect to calendar
quarters ending with the earlier of the calendar quarter during which the
individual ceases to be a director or the calendar quarter ending on December
31, 2003, or (b) make deferrals and receive deferral credits pursuant to
Section 3.3 after such cessation.

 

2.3           Condition of Participation.  Each Qualified Director, as a condition of
participation in the Plan, is bound by all the terms and conditions of the Plan
and the Plan Rules, including but not limited to the reserved right of the
Company to amend or terminate the Plan, and must furnish to the Administrator
such pertinent information, and execute such election forms and other
instruments, as the Administrator or Plan Rules may require by such dates as
the Administrator or Plan Rules may establish.

 

2.4           Termination of Participation.  A Participant will cease to be such as of
the date on which he or she is not then eligible to make deferrals and his or
her entire Account balance has been distributed.

 

3.             Benefits.

 

3.1           Participant Accounts. For each Participant, the
Administrator will establish and maintain a Cash Account, a Share Account or
both to evidence amounts credited with respect to the Participant pursuant to
Sections 3.2, 3.3 and 3.4.

 

3.2           Issuance of Retainer Shares.  As of the first day of each calendar quarter
that immediately follows a calendar quarter whose last day occurs during the
period beginning at the Effective Time and ending on December 31, 2003, each
individual who is a Qualified Director at any time during such immediately
preceding calendar quarter will, unless a deferral election has properly been
made pursuant to Section 3.3(a), be entitled to receive (as soon as reasonably
practical after such immediately preceding calendar quarter) the Retainer
Shares relating to his or her services as a Qualified Director during such
immediately preceding calendar quarter.

 

3.3           Deferral Credits.

 

(a)           With respect to services to be
performed during the period beginning at the Effective Time and ending on
December 31, 2003, a Qualified Director may elect to defer all (but not less
than all) of the Retainer Share Amount relating to his or her services as a
Qualified Director during a calendar year. 
Any such election will automatically apply to the Qualified Director’s
Retainer Share Amount for the year as adjusted from time to time.

 

(b)           Commencing with respect to services
to be performed after the Effective Time, a Qualified Director may elect to
defer all or any portion of his or her Director Cash Compensation relating to
his or her services as a Qualified Director during a calendar year.  Any portion so elected will automatically
apply to the Qualified Director’s Director Cash Compensation for the year as
adjusted from time to time.

 

(c)           Elective deferrals of a Qualified
Director’s Retainer Share Amount and Director Cash Compensation will be made in
accordance with the following rules:

 

(i)            An election made pursuant to this
Section 3.3 will not be effective unless it is made on a properly completed
election form received by the

 

 

Administrator by the last
day of the calendar year immediately preceding the calendar year to which the
election relates or, in the case of an individual who becomes a Qualified
Director after the first day of the calendar year, within 30 days after the
date such individual becomes a Qualified Director.  Notwithstanding the foregoing, with respect to an initial
deferral election that is made in connection with the adoption of the Plan,
such election will be effective if received by the Administrator by April 30,
1997.  Any deferral elections under this
Section 3.3 will apply only to a Qualified Director’s Retainer Share Amount and
Director Cash Compensation relating to services performed after the effective
date of the election.

 

(ii)           A Qualified Director may revoke a
deferral election made pursuant to this Section 3.3 at any time.  Any such revocation will be effective with
respect to any payment of a Qualified Director’s Retainer Share Amount and
Director Cash Compensation that (A) follows by at least 30 days (or such
shorter period as Plan Rules may allow) the Administrator’s receipt of a
properly completed form, and (B) relates to services as a Qualified Director
after the date on which the Administrator receives such notice.  Upon making a revocation, the Qualified
Director will be unable to make further deferrals of his or her Retainer Share
Amount (if then payable) and Director Cash Compensation until the next calendar
year.

 

(iii)          In conjunction with each deferral
election made pursuant to Section 3.3(b), a Qualified Director must elect, in
accordance with and subject to Plan Rules, how the deferral is to be allocated
(in increments of five percent only) among his or her Cash Account and Share
Account.  Such an election is
irrevocable after the latest date by which the deferral election to which it
relates must be received by the Administrator to be effective.

 

(iv)          Deferrals of the Retainer Share Amount
pursuant to Section 3.3(a) will be credited to a Qualified Director’s Share
Account as of the date on which the Retainer Shares would have been issued
pursuant to Section 3.2 but for his or her deferral election.  Deferrals of Director Cash Compensation
pursuant to Section 3.3(b) will be credited to a Qualified Director’s Cash
Account or Share Account, as the case may be, as of the date on which such
Director Cash Compensation would have been paid but for his or her deferral
election.  Such credits to the Qualified
Director’s Cash Account will be in U.S. dollars in an amount equal to the
amount of the deferral allocated to the Cash Account by the Qualified
Director.  Such credits to a Qualified
Director’s Share Account will be the number of full and fractional Share Units
determined by dividing the amount of Director Cash Compensation to be allocated
to the Share Account by the Market Price on the date as of which the credit is
made.

 

3.4           Earnings Credits.

 

(a)           Cash Account.  As of the first day of each calendar
quarter, a Participant’s Cash Account will be credited with interest,
calculated on the basis of the balance in the Participant’s Cash Account as of
the last day of the immediately preceding calendar quarter, in an amount equal
to the “applicable percentage” of the average daily balance of the Account for
such immediately preceding calendar quarter. 
The applicable percentage for a given calendar quarter is the quarterly
equivalent of the average of the annual yield set forth for each month during
such calendar quarter in the Moody’s Bond Record, published by Moody’s
Investor’s Service, Inc. (or any successor thereto) under the heading of
“Moody’s

 

 

Corporate Bond Yield
Averages — Av. Corp.” or, if such yield is no longer available, a substantially
similar average selected by the Administrator.

 

(b)           Share Account.

 

(i)            As of the first day of the calendar
quarter first following the date on which dividends are paid on Shares, a
Participant’s Share Account will be credited with that number of full and
fractional Share Units determined by dividing (A) the dollar amount of the
dividends that would have been payable to the Participant if the number of
Share Units credited to the Participant’s Share Account on the record date for
such dividend payment had then been Shares registered in the name of such
Participant by (B) the Market Price on the date as of which the credit is made.

 

(ii)           In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering or any other change in the Company’s corporate
structure or Shares, the Administrator will make such adjustment, if any, as
the Administrator may deem appropriate in the number and kind of Share Units
credited to Share Accounts.

 

3.5           Vesting. 
Each Participant always has a fully vested nonforfeitable interest in
his or her Account.

 

4.             Distribution.

 

4.1           Distribution to Participant.

 

(a)           Form.  Distribution to a Participant will be made
in the form of a lump sum payment unless (i) the Participant elects, on a
properly completed form, to receive his or her distribution in the form of
annual installment payments for a period of not more than 10 years and (ii)
other than cessation resulting from Disability, the date on which he or she
ceases to be a member of the Board follows by more than one year the date on
which a properly completed election form is received by the Administrator.  Any election made pursuant to this Section
4.1(a) may be changed from time to time upon the Administrator’s receipt of a
properly completed form, provided that, other than cessation resulting from
Disability, such change will not be valid and will not have any effect unless
it is made on a properly completed form received by the Administrator more than
one year prior to a Participant’s cessation of service as a member of the
Board.  Any election made pursuant to
this Section 4.1(a) will apply to the entire balance of the Participant’s
Account attributable to deferral credits with respect to the period through the
date on which he or she ceases to be a member of the Board.  Any distribution from a Participant’s Cash
Account will be made in cash only.  Any
distribution from a Participant’s Share Account will be made in full Shares
only and cash in lieu of any fractional Share.

 

(b)           Time.  Distribution to a Participant will be made
or commence on or as soon as administratively practicable after the first day
of the calendar quarter that follows the date on which the Participant ceases
to be a member of the Board.

 

(c)           Amount.

 

(i)            Cash Account.

 

 

(A)          Lump Sum.  The amount of a lump sum payment from a
Participant’s Cash Account will be equal to the balance of the Account as of
the first day of the calendar month coinciding with or immediately preceding
the date on which the payment is made.

 

(B)           Installments.  The amount of an installment payment from a
Participant’s Cash Account will be determined by dividing the balance of the
Account as of the first day of the calendar month coinciding with or immediately
preceding the date on which the payment is made by the total number of
remaining payments (including the current payment).

 

(ii)           Share Account.

 

(A)          Lump Sum.  A lump sum distribution from a Participant’s
Share Account will consist of the number of Shares equal to the number of full
Share Units credited to the Account as of the first day of the calendar month
coinciding with or immediately preceding the date on which the distribution is
made plus cash in lieu of any fractional Share Unit then credited to the
Account in an amount based on the Market Price on that date.

 

(B)           Installments.  Installment distributions from a
Participant’s Share Account, other than the final distribution, will consist of
the number of Shares determined by dividing the number of full Share Units
credited to the Account as of the first day of the calendar month coinciding
with or immediately preceding the date on which the distribution is made by the
total number of remaining Share distributions (including the current payment)
and rounding the quotient to the next higher full Share.  The amount of the final payment will be
determined in accordance with clause (A).

 

(d)           Special Rules.  The provisions of this Section 4.1(d) will
apply notwithstanding Section 4.1(a), (b) or (c) or any election by a
Participant to the contrary.

 

(i)            Withdrawals Due to Unforeseeable
Emergency.  A distribution will be
made to a Participant from his or her Share or Cash Account if the Participant
submits a written distribution request to the Administrator and the
Administrator determines that the Participant has experienced an Unforeseeable
Emergency.  The amount of the
distribution may not exceed the lesser of (a) the amount necessary to satisfy
the emergency, as determined by the Administrator, or (b) the balance of the
Participant’s Account as of the date of the distribution determined in
accordance with Section 4.1(c). 
Payments made on account of an Unforeseeable Emergency will not be made
to the extent that such Unforeseeable Emergency is or may be relieved through
reimbursement or compensation by insurance or otherwise, by liquidation of the
Participant’s assets (to the extent that such liquidation would not itself
cause severe financial hardship) or by cessation of deferrals under Section
3.3.  Any distribution pursuant to this
Section 4.1(d)(i) will be made in the form of a lump sum payment (in cash from
the Cash Account and in Shares from the Share Account) as soon as
administratively practicable after the Administrator’s determination that the Participant
has experienced an Unforeseeable Emergency and will be made first from the
Participant’s Cash Account and then from the Participant’s Share Account, with
the amount distributed from the Share Account determined based upon the

 

 

Market Price as of the first
day immediately preceding the date on which the distribution is made.

 

(ii)           Small Benefits.  If the balance of the Cash Account of a
Participant who has ceased to be a member of the Board is less than $5,000 as
of the first day of a calendar month, such balance will be distributed to the
Participant in the form of a lump sum cash payment as soon as administratively
practicable thereafter.

 

(iii)          Accelerated Distribution.  A Participant may, at any time, elect an
immediate distribution of his or her Account in an amount equal to 90 percent
of the balance of the Account as of the date of the distribution determined in
accordance with Section 4.1(c), in which case the remaining balance of the
Account will be forfeited.  The
distribution will be made in the form of a lump sum payment as soon as
administratively practicable after the Administrator’s receipt of a written
application on a form furnished by the Administrator.  Any distribution from a Participant’s Cash Account will be made
in cash only.  Any distribution from a
Participant’s Share Account will be made in full Shares only and cash in lieu
of any fractional Share.

 

(e)           Reduction of Account Balance.  The balance of the Account from which a
distribution is made will be reduced by the amount of the distribution as of
the date of the distribution.

 

4.2           Distribution to Beneficiary.

 

(a)           Form.  In the event of a Participant’s death, the
balance of the Participant’s Account will be distributed to the Participant’s
Beneficiary in a lump sum payment whether or not payments had commenced to the
Participant in the form of installments prior to his or her death.  Any distribution from a Participant’s Cash
Account will be made in cash and any distribution from a Participant’s Share
Account will be made in full Shares and cash in lieu of any fractional Share.

 

(b)           Time.  Distribution to a Beneficiary will be made
as soon as administratively practicable after the date on which the
Administrator receives notice of the Participant’s death.

 

(c)           Amount.  The amount of the payment will be determined
in accordance with Section 4.1(c).

 

(d)           Reduction of Account Balance.  The balance of the Account from which a
distribution is made will be reduced by the amount of the distribution as of
the date of the distribution.

 

(e)           Beneficiary Designation.

 

(i)            Each Participant may designate, on a
form furnished by the Administrator, one or more primary Beneficiaries or
alternative Beneficiaries to receive all or a specified part of his or her
Account after his or her death, and the Participant may change or revoke any
such designation from time to time.  No
such designation, change or revocation is effective unless executed by the
Participant and received by the Administrator during the Participant’s
lifetime.

 

 

(ii)           If, for all or any portion of his or
her Account, a Participant fails to designate a Beneficiary, revokes a
Beneficiary designation without naming another Beneficiary or designates one or
more Beneficiaries, none of whom survives the Participant or exists at the time
in question, such Account or portion will be paid to the Participant’s
surviving spouse or, if the Participant is not survived by a spouse, to the
representative of the Participant’s estate.

 

(iii)          The automatic Beneficiaries specified
above and, unless the designation otherwise specifies, the Beneficiaries
designated by the Participant, become fixed as of the Participant’s death so
that, if a Beneficiary survives the Participant but dies before the receipt of
the payment due such Beneficiary, the payment will be made to the
representative of such Beneficiary’s estate. 
Any designation of a Beneficiary by name that is accompanied by a
description of relationship or only by statement of relationship to the Participant
is effective only to designate the person or persons standing in such
relationship to the Participant at the Participant’s death.

 

4.3           Limitations on Share Distributions.  Notwithstanding any other provision of the
Plan to the contrary, neither the Company nor the Trustee is required to issue
or distribute any Shares under this Plan, and a distributee may not sell,
assign, transfer or otherwise dispose of Shares issued or distributed pursuant
to the Plan, unless (a) there is in effect with respect to such Shares a
registration statement under the Securities Act and any applicable state
securities laws or an exemption from such registration under the Securities Act
and applicable state securities laws, and (b) there has been obtained any other
consent, approval or permit from any other regulatory body which the Company
deems necessary or advisable. The Company or the Trustee may condition such
issuance, distribution, sale or transfer upon the receipt of any
representations or agreements from the parties involved, and the placement of
any legends on certificates representing Shares, as may be deemed necessary or
advisable by the Company in order to comply with such securities laws or other
restrictions.

 

4.4           Payment In Event of Incapacity.  If any individual entitled to receive any
payment under the Plan is, in the judgment of the Administrator, physically,
mentally or legally incapable of receiving or acknowledging receipt of the
payment, and no legal representative has been appointed for the individual, the
Administrator may (but is not required to) cause the payment to be made to any
one or more of the following as may be chosen by the Administrator: the
Beneficiary (in the case of the incapacity of a Participant); the institution
maintaining the individual; a custodian for the individual under the Uniform
Transfers to Minors Act of any state; or the individual’s spouse, children,
parents, or other relatives by blood or marriage. The Administrator is not
required to see to the proper application of any such payment, and the payment
completely discharges all claims under the Plan against the Company, the Plan
and the Trust to the extent of the payment.

 

5.             Source
Of Payments; Nature Of Interest.

 

5.1           Establishment of Trust.

 

(a)           The Company may establish a Trust
with an independent corporate trustee. 
The Trust must be a grantor trust with respect to which the Company is
treated as grantor for purposes of Code section 677 and must provide that, upon
the insolvency of the Company, Trust assets will be used to satisfy claims of
the Company’s general creditors.  The
Company will pay all taxes of any and all kinds whatsoever payable in respect
of the Trust assets or

 

 

any transaction with respect
to the Trust assets.  The Company may
from time to time transfer to the Trust cash, marketable securities or other
property acceptable to the Trustee in accordance with the terms of the Trust.

 

(b)           Notwithstanding subsection (a), not
later than the effective date of a Change in Control, the Company must transfer
to the Trust an amount not less than the amount by which (i) 125 percent of the
aggregate balance of all Participants’ Accounts as of the last day of the month
immediately preceding the effective date of the Change in Control exceeds (ii)
the value of the Trust assets attributable to amounts previously contributed by
the Company as of the most recent date as of which such value was determined.

 

5.2           Source of Payments.

 

(a)           The Company will pay, from its
general assets, the benefits pursuant to Section 4 attributable to a
Participant’s Account, and all costs, charges and expenses relating thereto.

 

(b)           The Trustee will make distributions
to Participants and Beneficiaries from the Trust in satisfaction of the
Company’s obligations under the Plan in accordance with the terms of the
Trust.  The Company is responsible for
paying any benefits attributable to a Participant’s Account that are not paid
by the Trust.

 

5.3           Status of Plan. 
Nothing contained in the Plan or Trust is to be construed as providing
for assets to be held for the benefit of any Participant or any other person or
persons to whom benefits are to be paid pursuant to the terms of the Plan, the
Participant’s or other person’s only interest under the Plan being the right to
receive the benefits set forth herein. The Trust is established only for the
convenience of the Company and the Participants, and no Participant has any
interest in the assets of the Trust prior to distribution of such assets
pursuant to the Plan.  Until such time
as Shares are distributed to a Participant, Beneficiary of a deceased
Participant or other person, he or she has no rights as a shareholder with
respect to any Shares Units credited to a Share Account pursuant to the
Plan.  To the extent that the
Participant or any other person acquires a right to receive benefits under the
Plan or the Trust, such right is no greater than the right of any unsecured
general creditor of the Company.

 

5.4           Non-Assignability of Benefits.  The benefits payable under the Plan and the
right to receive future benefits under the Plan may not be anticipated,
alienated, sold, transferred, assigned, pledged, encumbered, or subjected to
any charge or legal process.

 

6.             Amendment
and Termination.

 

6.1           Amendment.

 

(a)           The Company reserves the right to
amend the Plan at any time to any extent that it may deem advisable.  To be effective, an amendment must be stated
in a written instrument approved in advance or ratified by the Board and
executed in the name of the Company by its Chief Executive Officer, President
or a Vice President and attested by the Secretary or an Assistant Secretary.

 

(b)           An amendment adopted in accordance
with Section 6.1(a) is binding on all interested parties as of the effective
date stated in the amendment; provided, however, that no amendment will have
any retroactive effect so as to deprive any Participant, or the

 

 

Beneficiary of a deceased
Participant, of any benefit to which he or she is entitled under the terms of
the Plan in effect immediately prior to the effective date of the amendment,
determined as if such Participant had terminated service as a director
immediately prior to the effective date of the amendment.

 

(c)           Without limiting Section 6.1(a), the
Company reserves the right to amend this Plan to change the method of
determining the earnings credited to Participants’ Accounts pursuant to Section
3.4 and to apply such new method not only with respect to the portion of the
Accounts attributable to credits made after the date on which such amendment is
adopted but also with respect to the portion of the Accounts attributable to
credits made prior to the date on which such amendment is adopted and
regardless of whether such new method would result in materially lower earnings
credits than the old method.

 

(d)           The provisions of the Plan in effect
at the termination of a Participant’s service as a director will, except as
otherwise expressly provided by a subsequent amendment, continue to apply to
such Participant.

 

6.2           Termination. 
The Company reserves the right to terminate the Plan at any time. The
Plan will terminate as of the date specified by the Company in a written
instrument by its authorized officers to the Administrator, adopted in the
manner of an amendment.  Upon the
termination of the Plan, any benefits to which Participants have become
entitled prior to the effective date of the termination will continue to be
paid in accordance with the provisions of Section 4, provided that a majority
of the members of the Board who are not then Participants may cause the entire
interest in the Plan of any or all Participants, or the Beneficiaries of any or
all deceased Participants, to be distributed in the form of an immediate lump
sum payment.

 

7.             Definitions,
Construction and Interpretation. 
The definitions and rules of construction and interpretation set forth
in this Section 7 apply in construing the Plan unless the context otherwise
indicates.

 

7.1           Account. 
“Account” means the bookkeeping account or accounts maintained with
respect to a Participant pursuant to Section 3.1.

 

7.2           Administrator. 
The “Administrator” of the Plan is the Corporate Governance Committee of
the Board or such other committee or the person to whom administrative duties
are delegated pursuant to the provisions of Section 8.1, as the context
requires.

 

7.3           Annual Retainer. 
“Annual Retainer” means the regular retainer payable by the Company to a
Qualified Director for a 12-month period of service as a Qualified Director,
exclusive of fees specifically paid for attending or chairing regular or
special meetings of the Board and Board committees, fees or special retainers
paid for membership on standing Board committees or for serving as the chair of
the Board or standing Board committees, expense allowances or reimbursements,
insurance premiums and any other payments that are determined by reference to factors
other than holding office as a Qualified Director.

 

7.4           Beneficiary. 
“Beneficiary” with respect to a Participant is the person designated or
otherwise determined under the provisions of Section 4.2(e) as the distributee
of benefits payable after the Participant’s death.  A person designated or otherwise determined to be a Beneficiary
under the terms of the Plan has no interest in or right under the Plan until
the Participant in question has died.  A
Beneficiary will cease to be such on the day on which all benefits to which he,
she or it is entitled under the Plan have been distributed.

 

 

7.5           Board. 
“Board” means the board of directors of the Company.

 

7.6           Cash Account. 
“Cash Account” means an Account to which amounts are credited in U.S.
dollars.

 

7.7           Change in Control. 
“Change in Control” means any of the following:

 

(a)           the sale, lease, exchange or other
transfer, directly or indirectly, of all or substantially all of the assets of
the Company, in one transaction or in a series of related transactions, to any
person;

 

(b)           the approval by the stockholders of
the Company of any plan or proposal for the liquidation or dissolution of the
Company;

 

(c)           any person is or becomes after the
Effective Time the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of (i) 20 percent or more, but not more
than 50 percent, of the combined voting power of the Company’s outstanding
securities ordinarily having the right to vote at elections of directors,
unless the transaction resulting in such ownership has been approved in advance
by the continuity directors, or (ii) more than 50 percent of the combined
voting power of the Company’s outstanding securities ordinarily having the
right to vote at elections of directors (regardless of any approval by the
continuity directors);

 

(d)           a merger or consolidation to which
the Company is a party if the stockholders of the Company immediately prior to
the effective date of such merger or consolidation have beneficial ownership
(as defined in Rule 13d-3 under the Exchange Act) immediately following the
effective date of such merger or consolidation of securities of the surviving
company representing (a) 50 percent or more, but not more than 80 percent, of
the combined voting power of the surviving corporation’s then outstanding
securities ordinarily having the right to vote at elections of directors,
unless such merger or consolidation has been approved in advance by the
continuity directors, or (b) less than 50 percent of the combined voting power
of the surviving corporation’s then outstanding securities ordinarily having
the right to vote at elections of directors (regardless of any approval by the
continuity directors);

 

(e)           the continuity directors cease for
any reason to constitute at least a majority of the Company’s board of
directors; or

 

(f)            a change in control of the Company
of a nature that would be required to be reported pursuant to section 13 or
15(d) of the Exchange Act, whether or not the Company is then subject to such reporting
requirement.

 

(g)           For purposes of this Section 7.7:

 

(i)            a “continuity director” means any
individual who is a member of the Board as of the Effective Time while he or
she is a member of the Board, and any individual who subsequently becomes a member
of the Board whose election or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors who
are continuity directors (either by a specific

 

 

vote or by approval of the
proxy statement of the Company in which such individual is named as a nominee
for director without objection to such nomination);

 

(ii)           “Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time; and

 

(iii)          “person” means any individual,
corporation, partnership, group, association or other “person,” as such term is
defined in section 14(d) of the Exchange Act, other than (A) the Company; (B)
any corporation at least a majority of whose securities having ordinary voting
power for the election of directors is owned, directly or indirectly, by the
Company; (C) any other entity in which the Company, by virtue of a direct or
indirect ownership interest, has the right to elect a majority of the members
of the entity’s governing body; or (D) any benefit plan sponsored by the
Company, a corporation described in clause (B) or an entity described in clause
(C).

 

7.8           Code. 
“Code” means the Internal Revenue Code of 1986, as amended.  Any reference to a specific provision of the
Code includes a reference to that provision as it may be amended from time to
time and to any successor provision.

 

7.9           Company. 
“Company” means Nash Finch Company.

 

7.10         Cross Reference. 
References in the Plan to a particular section refer to that section
within the Plan, references within a section of the Plan to a particular
subsection refer to that subsection within the same section, and references
within a section or subsection to a particular clause refer to that clause
within the same section or subsection, as the case may be.

 

7.11         Director Cash Compensation.  “Director Cash Compensation” means all amounts payable in cash by
the Company to a Qualified Director for his or her services to the Company as a
Qualified Director, (a) including an annual retainer for Board and Board committee
membership, an annual retainer for chairing the Board or a Board committee, and
fees specifically paid for attending meetings of the Board and Board
committees, but (b) excluding equity-based compensation arrangements such as
stock options and performance or restricted stock units granted under
equity-based compensation plans of the Company, expense allowances or
reimbursements and insurance premiums paid to or on behalf of Qualified
Directors, and, for the period beginning at the Effective Time and ending on
December 31, 2003, the Retainer Share Amount.

 

7.12         Disability. 
“Disability” means the disability of a Qualified Director such as would
entitle the Qualified Director to receive income benefits pursuant to the
long-term disability plan of the Company then covering the Qualified Director
or, if no such plan exists or is applicable to the Qualified Director, the
permanent and total disability of the Qualified Director within the meaning of
Code section 22(e)(3).

 

7.13         Effective Time. 
“Effective Time” means such time as the Plan is originally approved by
the Company’s stockholders.

 

7.14         Governing Law. 
All questions pertaining to the construction, validity, effect and
enforcement of the Plan will be determined in accordance with the internal,
substantive laws of the State of Minnesota without regard to the conflict of
laws rules of the State of Minnesota or any other jurisdiction.

 

 

7.15         Headings.  The
headings of sections are included solely for convenience of reference; if there
exists any conflict between such headings and the text of the Plan, the text
will control.

 

7.16         Market Price. 
“Market Price” means the closing sale price for Shares on a specified
date or, if Shares were not then traded, on the most recent prior date when
Shares were traded, all as reported on the Nasdaq National Market or such other
exchange as the Shares may be traded from time to time.

 

7.17         Number and Gender. 
Wherever appropriate, the singular may be read as the plural, the plural
may be read as the singular, and one gender may be read as the other gender.

 

7.18         Participant. 
“Participant” is a current or former Qualified Director to whose Account
amounts have been credited pursuant to Section 3 and who has not ceased to be a
Participant pursuant to Section 2.4.

 

7.19         Plan.  “Plan”
means the Nash Finch Company 1997 Non-Employee Director Stock Compensation
Plan, as from time to time amended or restated.

 

7.20         Plan Rules. 
“Plan Rules” are rules, policies, practices or procedures adopted by the
Administrator pursuant to Section 8.2.

 

7.21         Qualified Director. 
“Qualified Director” means an individual who is a member of the Board
and who is not a current employee of the Company or any of its subsidiaries.

 

7.22         Retainer Shares. 
“Retainer Shares” means the number of full and fractional Shares
determined by dividing the Retainer Share Amount for a calendar quarter by the
Market Price on the first day of the calendar quarter that first follows the
calendar quarter for which such Retainer Share Amount has been determined.  No Retainer Shares will be issuable
hereunder for any calendar quarter beginning after December 31, 2003.

 

7.23         Retainer Share Amount.  “Retainer Share Amount” means, with respect to any calendar
quarter whose last day occurs during the period beginning at the Effective Time
and ending on December 31, 2003, the amount determined by (i) taking an amount
equal to 50 percent (33-1/3 percent with respect to the calendar quarters in
the 1997 calendar year) of the Annual Retainer payable by the Company to
Qualified Directors for such calendar quarter and (ii) multiplying such amount
by a fraction, the numerator of which is the number of days during such
calendar quarter (or the number of days after the Effective Time with respect
to the calendar quarter in which the Effective Time occurs) that the individual
served as a Qualified Director and the denominator of which is the total number
of days in such calendar quarter.  No
Retainer Share Amount will be calculated hereunder for any calendar quarter
beginning after December 31, 2003.

 

7.24         Securities Act. 
“Securities Act” means the Securities Act of 1933, as amended. Any
reference to a specific provision of the Securities Act includes a reference to
that provision as it may be amended from time to time and to any successor
provision.

 

7.25         Share Account. 
“Share Account” means an Account to which amounts are credited in Share
Units.

 

7.26         Share Units. 
“Share Units” means a unit credited to a Participant’s Share Account
pursuant to the Plan, each of which represents the equivalent of one Share.

 

 

7.27         Shares. 
“Shares” means shares of common stock of the Company, $1.66-2/3 par
value, or such other class or kind of shares or other securities as may be
applicable pursuant to Section 3.3(b)(ii).

 

7.28         Trust. 
“Trust” means any trust or trusts established by the Company pursuant to
Section 5.1.

 

7.29         Trustee. 
“Trustee” means the independent corporate trustee or trustees that at
the relevant time has or have been appointed to act as Trustee of the Trust.

 

7.30         Unforeseeable Emergency.  “Unforeseeable Emergency” means an unanticipated emergency that
is caused by an event beyond the Participant’s control resulting in a severe
financial hardship that cannot be satisfied through other means.  The existence of an unforeseeable emergency
will be determined by the Administrator.

 

8.             Administration.

 

8.1           Administrator. 
The general administration of the Plan and the duty to carry out its
provisions will be vested in the Corporate Governance Committee of the Board or
such other Board committee as may be subsequently designated as Administrator
by the Board.  Such committee may
delegate such duty or any portion thereof to a named person and may from time
to time revoke such authority and delegate it to another person.

 

8.2           Plan Rules and Regulations.  The Administrator has the discretionary
power and authority to make such Plan Rules as the Administrator determines to
be consistent with the terms, and necessary or advisable in connection with the
administration, of the Plan and to modify or rescind any such Plan Rules.

 

8.3           Administrator’s Discretion.  The Administrator has the sole discretionary
power and authority to make all determinations necessary for administration of
the Plan, except those determinations that the Plan requires others to make,
and to construe, interpret, apply and enforce the provisions of the Plan and
Plan Rules whenever necessary to carry out its intent and purpose and to
facilitate its administration, including, without limitation, the discretionary
power and authority to remedy ambiguities, inconsistencies, omissions and
erroneous benefit calculations.  In the
exercise of its discretionary power and authority, the Administrator will treat
all similarly situated persons uniformly.

 

8.4           Specialist’s Assistance.  The Administrator may retain such actuarial, accounting, legal,
clerical and other services as may reasonably be required in the administration
of the Plan, and may pay reasonable compensation for such services.  All costs of administering the Plan will be
paid by the Company.

 

8.5           Indemnification. 
The Company agrees to indemnify and hold harmless, to the extent
permitted by law, each director, officer and employee of the Company and any
subsidiary or affiliate of the Company against any and all liabilities, losses,
costs and expenses (including legal fees) of every kind and nature that may be
imposed on, incurred by, or asserted against such person at any time by reason
of such person’s services in connection with the Plan, but only if such person
did not act dishonestly or in bad faith or in willful violation of the law or
regulations under which such liability, loss, cost or expense arises.  The Company has the right, but not the
obligation, to select

 

 

counsel and control the defense and
settlement of any action for which a person may be entitled to indemnification
under this provision.

 

9.             Miscellaneous.

 

9.1           Withholding and Offsets.  The Company and the Trustee retain the right to withhold from any
compensation, deferral and/or benefit payment pursuant to the Plan, any and all
tax as the Company or Trustee deems necessary, and the Company and the Trustee
may offset against amounts payable to a Participant or Beneficiary under the
Plan any amounts then owing to the Company by such Participant or Beneficiary.  The Company or the Trustee, as the case may
be, in its sole discretion, may permit Participants to elect whether to satisfy
their obligations under this Section 9.1 by having such amounts withheld from
any compensation, deferral and/or benefit payment pursuant to the Plan or by
remitting such amounts to the Company or the Trustee, or by a combination of
such methods.

 

9.2           Other Benefits. 
Neither amounts deferred nor amounts paid pursuant to the Plan
constitute salary or compensation for the purpose of computing benefits under
any other benefit plan, practice, policy or procedure of the Company unless
otherwise expressly provided thereunder.

 

9.3           No Warranties Regarding Tax Treatment.  The Company makes no warranties regarding
the tax treatment to any person of any deferrals or payments made pursuant to
the Plan, and each Participant will hold the Administrator and the Company and
their officers, directors, employees, agents and advisors harmless from any
liability resulting from any tax position taken in good faith in connection
with the Plan.

 

9.4           No Rights to Continued Service Created.  Neither the establishment of or
participation in the Plan gives any individual the right to continued service
on the Board or limits the right of the Company or its stockholders to
terminate or modify the terms and conditions of service of such individual on
the Board or otherwise deal with any individual without regard to the effect
that such action might have on him or her with respect to the Plan.

 

9.5           Successors. 
Except as otherwise expressly provided in the Plan, all obligations of
the Company under the Plan are binding on any successor to the Company whether
the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise of all or substantially all of the business
and/or assets of the Company.EXHIBIT 10.1

                        ASSET PURCHASE AND SALE AGREEMENT
                        ---------------------------------

         THIS ASSET PURCHASE AND SALE AGREEMENT ("Agreement") is entered into as
of March 1st, 2004, by and among BEVERAGE NETWORK OF HAWAII, INC., a corporation
organized and existing under the laws of Florida with offices at 4800 N.W. 15th
Avenue, Bay 1-A, Fort Lauderdale, Florida 33309 (the "Purchaser"), and PACIFIC
RIM NATURAL JUICE COMPANY, INC., a corporation organized and existing under the
laws of the state of Hawaii with a mailing address of P.O. Box 1087, Makawao,
Hawaii 96798 ("Seller").

                              W I T N E S S E T H:

         WHEREAS, Seller is willing to sell to Purchaser and Purchaser is
willing to buy from Seller, upon the terms and conditions hereinafter set forth,
all right, title and interest of the Seller in and to its Assets (as hereinafter
defined) (such business is hereinafter collectively called the "Seller's
Business"), as more fully set forth in this Agreement; and

         WHEREAS, Purchaser is a wholly owned subsidiary of Xstream Beverage
Group, Inc., a Nevada corporation, whose common stock is publicly traded on the
Over-The-Counter-Bulletin Board under the symbol "XSBG".

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

1.       DEFINED TERMS

         1.1 DEFINED TERMS- Where used herein or in any amendments hereto, the
following terms shall have the following meanings except as defined otherwise in
this Agreement.

         1.2 "ASSETS" means those assets to be conveyed hereunder as more fully
set forth in Section 2.1 below and the attached Schedule A.

         1.3 "BUSINESS" means the business operations presently and heretofore
carried on by Seller at its current place of business located at 851, Eha
Street, Wailuku, HI 96793 .

         1.4 "BUSINESS DAY" means any day except Saturday, Sunday, or any
statutory holiday in the State of Florida.

         1.5 "CLOSING DATE" means March 1st, 2004 or such other date as may be
mutually agreed upon in writing by the parties hereto.

                                       1
<PAGE>

         1.6 "PURCHASE DOCUMENTS" means this Agreement and all other agreements,
documents or instruments to be executed in connection with this Agreement.

2.       PURCHASE OF ASSETS AND PURCHASE PRICE

         2.1. Sale of Assets. The Seller shall cause to be sold, assigned,
transferred, conveyed and delivered to the Purchaser, at the Closing (as defined
below), good and valid title to the Assets (as defined below), free of any
Encumbrances, on the terms and subject to the conditions set forth in this
Agreement. For purposes of this Agreement, Assets shall mean and include: (a)
all of the properties, rights, interests and other tangible and intangible
assets of the Seller (wherever located and whether or not required to be
reflected on a balance sheet prepared in accordance with generally accepted
accounting principles), including any assets acquired by the Seller during the
Pre-Closing Period; and (b) any other assets that are owned by any of or any
other Related Party and that are needed for the conduct of, or are useful in
connection with, the business of the Seller; provided, however, that the Assets
shall not include any Excluded Assets listed on Exhibit A-1. Without limiting
the generality of the foregoing, the Assets shall include:

              A. all accounts receivable, notes receivable and other receivables
of the Seller;

              B. all inventories and work-in-progress of the Seller, and all
rights to collect from customers (and to retain) all fees and other amounts
payable, or that may become payable, to the Seller with respect to services
performed or products sold on behalf of the Seller on or prior to the Closing
Date;

              C. all equipment, materials, prototypes, tools, supplies,
vehicles, furniture, fixtures, improvements and other tangible assets of the
Seller;

              D. all advertising and promotional materials possessed by the
Seller;

              E. all Proprietary Assets and goodwill of the Seller;

              F. all rights of the Seller under the Seller Contracts;

              G. all Governmental Authorizations held by the Seller;

              H. all claims (including claims for past infringement of
Proprietary Assets) and causes of action of the Seller against other Persons
(regardless of whether or not such claims and causes of action have been
asserted by the Seller), and all rights of indemnity, warranty rights, rights of
contribution, rights to refunds, rights of reimbursement and other rights of
recovery possessed by the Seller (regardless of whether such rights are
currently exercisable);

              I. all books, records, files and data of the Seller; and

                                       2
<PAGE>

              J. all customers lists including, but not limited to, Seller's
database of past, current and potential customers; and

              K. all assets shown on Exhibit "A".

         2.2  Liabilities. Except for the liabilities and obligations listed on
Schedule B (hereinafter collectively referred to as the "Assumed Liabilities"),
the Purchaser shall assume no liabilities or other obligations, commercial or
otherwise, of Seller, known or unknown, fixed or contingent, choate or inchoate,
liquidated or unliquidated, secured or unsecured or otherwise.

              A. Without in any way limiting the generality of the foregoing,
Purchaser shall not assume any obligation or liability of Seller with respect to
the following (i) any transaction involving Seller occurring after the Closing
Date; (ii) any liability of Seller for federal, state or local taxes, fees,
assessments or other similar charges (including without limitation income taxes,
real estate taxes, payroll taxes and sales taxes); (iii) any liability for
services performed by Seller on or prior to the Closing Date; (iv) except as
expressly provided in this Agreement, any responsibility of Seller with respect
to salary, wages, vacation pay, savings plans, severance pay, deferred
compensation, or other obligations for the benefit of any employee of Seller,
including pension benefits accrued (vested or unvested), or arising out of their
employment through the Closing Date for which Seller shall be liable; (v) any
liability or obligation incurred in connection with or related to the transfer
of the Assets pursuant hereto including, but not limited to sales taxes,
transfer taxes or stamp taxes; (vi) any liability of any kind whatsoever
resulting from the failure of Seller to comply with the requirements of all
applicable building, fire, zoning and environmental laws, State of Hawaii
Department of Health, laws relating to occupational health and safety and other
laws applicable to Seller or the conduct of its business; (vii) any liability
under any Assumed Contract to the extent such liability arises out of Seller's
failure to perform its obligations thereunder to the extent performance is due
on or prior to the Closing Date; (viii) any liability of Seller to Seller's
stockholders or their relatives or friends; (ix) any indebtedness of Seller to
any banks or other lending institutions; (x) liabilities in respect of any
pension, profit sharing or other employee benefit plan (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") of Seller; and (xi) any liability, obligation or account payable of
Seller not listed on Schedule 2(e).

         2.3 Purchase Price. Purchaser shall pay to Seller for the Assets and
Assumed Liabilities (the "Purchase Price") as follows: at the Closing, the
Purchaser shall deliver two hundred and fifty thousand (250,000) shares of
restricted common stock ("Restricted Stock") of Xstream Beverage Group, Inc.
("XSBG"), par value 0.001, to Seller that contain an appropriate restrictive
legend as promulgated by the Securities and Exchange Commission ("SEC").

         2.4 Offsets in Purchase Price. In the event that Purchaser shall be
obligated to pay or chooses to pay any sums which are not specifically set forth
on the attached Schedule B, then in that

                                       3
<PAGE>

event Purchaser shall be entitled to a dollar for dollar reduction in any
further payments due Seller or The Maui Juice Company, Inc. Said reduction shall
first be allocated to any cash payments and secondly to the price of the common
stock. Upon notice of any undisclosed liability, Purchaser shall so advise
Seller who shall have five (5) days to cure. In the event that Seller has not
resolved the dispute, Purchaser may in its sole and absolute discretion, satisfy
the claimed liability and deduct any amounts paid against future amounts due and
owing under this Agreement.

         2.5. Allocation of the Purchase Price. The Purchase Price shall be
allocated amongst the Assets as provided in Schedule A attached hereto, and each
party shall file in a manner consistent therewith (i) the reports required under
Section 1060 of the Internal Revenue Code of 1986, as amended, and (ii) their
respective Federal, state and local tax returns.

3.       DOCUMENTS TO BE DELIVERED AT CLOSING

         3.1.     At the Closing:

                  A. Seller shall execute and deliver to Purchaser a Bill of
Sale fully executed and in the form of Exhibit C attached hereto, conveying,
selling, transferring and assigning to Purchaser all of the Assets free and
clear of any and all defects, liens, encumbrances, charges and equities
whatsoever. Seller shall also provide the written consent of the Landlord and
the consent of any party having a security interest on the Seller's assets.

                  B. Seller shall execute or endorse and deliver to Purchaser
other duly executed separate instruments of sale, assignment or transfer,
including, but not limited to assignments of contract rights or leases in form
suitable, where appropriate, for filing or recording with the appropriate office
or agency for various items of the Assets or other rights of Seller to be
conveyed hereunder, where, in Purchaser's reasonable judgment, the same are
necessary or desirable in order to vest or evidence title hereto in Purchaser.

                  C. Purchaser shall pay the Purchase Price for the Assets in
accordance with the terms of Section 2 hereof.

                  D. Seller shall deliver to Purchaser copies, certified by the
Secretary of Seller of (i) certificates of good standing in the jurisdiction of
the Seller's incorporation and in each other jurisdiction in which the Seller is
doing or transacting business, (ii) the written consent of the Board of
Directors and the consent of the majority of the stockholders of Seller
authorizing this Agreement and the other agreements and instruments to be
delivered pursuant thereto and the transactions contemplated hereby; and (iii) a
certification signed by the Company's President and Secretary that there are no
liens or encumbrances on any of the assets to be transferred except as set forth
in Schedule B.

                  E. Purchaser shall deliver to Seller copies, certified by the
Secretary of Purchaser

                                       4
<PAGE>

of (i) certificates of good standing in the jurisdiction of the Purchaser's
incorporation and in each other jurisdiction in which the Purchaser is doing or
transacting business, and (ii) the unanimous written consent of the Board of
Directors and stockholders of Purchaser authorizing this Agreement and the other
agreements and instruments to be delivered pursuant thereto and the transactions
contemplated hereby and thereby.

                  F. Seller shall deliver to the Purchaser all books and records
of the Seller relating to the Seller's Business, the Customers, the Assets and
the Assumed Liabilities.

                  G. Seller shall deliver to the Purchaser all necessary
consents of third parties to the execution and delivery of this Agreement and
the consummation of the transactions contemplated including, without limitation,
the written consent of the Landlord for the assignment of the Seller's leasehold
obligation at its Business location.

4.       CLOSING.

         The Closing of the transactions contemplated by this Agreement, and all
deliveries to be made at such time in connection therewith, shall take place at,
4800 N.W. 15th Avenue, Bay 1-A, Fort Lauderdale, Florida 33309 upon the
satisfaction of all of the conditions set forth in this Agreement on the Closing
Date, such Closing to take place by delivery to such counsel of executed
counterparts of this Agreement and all other documents, instruments and
certificates required to be delivered by Seller or Purchaser at the Closing
(Said Closing and said date thereof, herein referred to as the"Closing" and the
"Closing Date", respectively). The effective date of this Agreement shall be the
date of execution by the last signatory to this Agreement.

5.       REPRESENTATIONS AND WARRANTIES BY SELLER.

         5.1.     Seller represents and warrants to Purchaser as follows:

                  A. Corporate Organization. Seller is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Hawaii.

                  B. Authorization and Validity of Agreement. Seller has all
requisite power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement and the
performance of Seller's obligations hereunder have been duly authorized by all
necessary corporate action, and no other proceeding on the part of Seller is
necessary to authorize such execution, delivery and performance. This Agreement
has been duly executed by Seller and constitutes its valid and legally binding
obligation, enforceable against it in accordance with its terms.

                  C. The execution, delivery and performance of the Purchase
Documents by Seller, and the consummation of the transactions contemplated
hereby, will not with or without the

                                       5
<PAGE>

giving of notice or the lapse of time or both:

                           (i)    violate any provision of law, statute, rule or
regulation to which Seller is subject,

                           (ii)   violate any judgment, order, writ or decree to
which Seller is a party or by which it is or may be bound; or

                           (iii)  to the knowledge of Seller, result in the
breach of or conflict with any term, covenant, condition or provision of, or
result in the modification or termination of, or constitute a default under or
result in the creation or imposition of any lien, security interest, charge or
encumbrance upon any of the Assets being purchased hereunder, under the
corporate charter or by-laws or any other agreement, understanding or instrument
to which Seller is a party or by which it is or may be bound or affected.

                  C. All necessary corporate action has been taken by Seller to
authorize the execution, delivery and performance of the Purchase Documents. The
Purchase Documents have been duly and validly authorized, executed and delivered
by Seller and constitute the valid and binding obligation of Seller enforceable
against it in accordance with their respective terms.

                  D. All consents and approval required for transferring the
Assets to Purchaser hereunder and for assigning the agreements, including
without limitation all amendments, modifications, and supplements, whether
written or oral ("Agreements") and for performing Seller's obligations under the
Purchase Documents have been obtained or will be obtained. No consent of any
court, governmental agency or other public authority is required as a condition
to the enforceability of the Purchase Documents.

                  E. Seller acknowledges that the Assets being transferred per
Schedule "A" are owned free and clear of all liens and encumbrances, are not
encumbered by any liens or the subject matter of any known or anticipated
litigation Seller further acknowledges and agrees that the Purchase Price paid
by Purchaser for Seller's Assets is fair and adequate consideration.

                  F. Seller has conducted its business in compliance with all
applicable federal, state and local laws, regulations and ordinances.

                  G. Seller has not received any notice that it is infringing
upon the research, development, processes, methods, techniques, inventions, know
how patents, patent rights, trade name, trademarks and service marks of any
other party.

                  H. Seller is not a party to any written or oral employment,
agency or commission agreement with any of its employees that cannot be
terminated upon the closing date of this transaction without penalty. No
employee, director, officer or stockholder (or any current or former

                                       6
<PAGE>

family
member thereof) of Seller, either individually or in any other capacity, has a
claim of any kind against the Seller, and Seller has no obligation with respect
to such person or entity, except the right to current salary or wages, accrued
vacation pay, and reimbursable expenses arising in the ordinary course of
business. Seller does not contribute to or sponsor any employee welfare or
benefit plans, and is not subject to any collective bargaining agreement, for
employees.

                  I. Sophisticated Investor. Seller is a sophisticated investor
and understands the risks and uncertainties involved with the receipt of XSBG's
restricted common stock. Seller has had an opportunity to discuss the operations
of both XSBG and Purchaser's business with management and has been provided with
any requested information. Seller has also reviewed XSBG's filings on the SEC
EDGAR database located at www.sec.gov.

                  J. Receipt of Shares Entirely for Your Own Account. This
Agreement is made with Seller in reliance upon Seller's representation, which by
Seller's execution of this Agreement Seller hereby confirms, that the XSBG
Shares being issued to Seller hereunder are being acquired for investment for
Seller's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that Seller has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, Seller further represents that it does
not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Subject Shares.

                  K. Seller shall provide Purchaser with such financial
information as may be necessary to complete an audit in accordance with those
rules and regulations prescribed by the Securities and Exchange Commission. In
the event that Seller is unable to supply the requested information and
Purchaser is unable to conclude an audit of the Seller's business within 60 days
of closing as prescribed by the SEC, then in that event, Purchaser may, in its
sole and absolute discretion, rescind this Agreement and all assets of whatever
type or nature exchanged between the parties shall be returned to the respective
parties.

                  L. Seller has paid all personal and intangible property taxes
due as a result of the ownership of the assets and there are no amounts due and
owing for personal property or intangible property taxes.

                  M. There is (and has not been since its inception) no claim,
litigation, action, suit or proceeding, administrative or judicial, pending or
threatened against or affecting Seller, or involving any of the Assets, at law
or in equity or before any foreign, federal, state, local or other governmental
authority, including, without limitation, any claim, proceeding, or litigation
for the purpose of enjoining or preventing the consummation of this Agreement,
or the transactions contemplated hereby, or otherwise claiming this Agreement,
or any of the transactions contemplated hereby or the consummation thereof, is
illegal or otherwise improper, nor to Seller's knowledge is there any basis upon
which any such claim, litigation, action, suit or proceeding could be brought or

                                       7
<PAGE>

initiated. Seller is not (and has not been within the past three years) subject
to or in default under any judgment, order, writ, injunction or decree of any
court or any governmental authority, and no replevins, attachments, or
executions have been issued or are now in force against Seller. No petition in
bankruptcy or receivership has ever been filed by or against Seller.

                  N. No Brokers. Seller does not have nor will it have any
obligation to pay any finder's fee, brokerage commission or similar payment in
connection with the transactions contemplated hereby.

                  O. Accuracy of Representations. No representation or warranty
contained in this Section 5 contains any untrue statement of a material fact or
omits to state a material fact required to be stated herein or necessary in
order to make the statements herein, in light of the circumstances under which
they are made, not misleading.

6.       REPRESENTATIONS AND WARRANTIES OF PURCHASER

         6.1.     Purchaser represents and warrants to Seller as follows:

                  A. Corporate Organization. Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Florida.

                  B. Authorization and Validity of Agreement. Purchaser has all
requisite power and authority to enter into this Agreement and to carry out its
obligations hereunder. The execution and delivery of this Agreement and the
performance of Purchaser's obligations hereunder have been duly authorized by
all necessary corporate action, and no other proceeding on the part of Purchaser
is necessary to authorize such execution, delivery and performance. This
Agreement has been duly executed by Purchaser and constitutes its valid and
legally binding obligation, enforceable against it in accordance with its terms.

                  C. No Conflict or Violation. The execution, delivery and
performance by Purchaser of this Agreement does not and will not violate or
conflict with any provision of the Articles of Incorporation or By-Laws of
Purchaser, and the execution, delivery and performance by Purchaser of this
Agreement does not and will not violate any provision of law, rule or
regulation, or any order, judgment or decree of any court or other governmental
or regulatory authority, nor will result in a breach of or constitute (with due
notice or lapse of time or both) a default under any contract, agreement or
instrument to which Purchaser is a party or by which it is bound or to which any
of its properties or assets is subject, nor will result in the cancellation,
modification, revocation or suspension of any material licenses, permits or
approvals.

                  D. No Brokers. Purchaser does not have nor will it have any
obligation to pay any finder's fee, brokerage commission or similar payment in
connection with the transactions contemplated hereby.

                                       8
<PAGE>

                  F. Accuracy of Representations. No representation or warranty
contained in this Section 6 contains any untrue statement of a material fact or
omits to state a material fact required to be stated herein or necessary in
order to make the statements herein, in light of the circumstances under which
they are made, not misleading.

7.       CONDITIONS TO THE OBLIGATIONS OF SELLER TO CLOSE

         7.1 All obligations of Seller hereunder are, at the option of Seller,
subject to the conditions that, at the Closing Date:

                  A. Representations and Warranties. All representations and
warranties made in this Agreement by Purchaser shall be true and correct as of
the Closing Date in all material respects.

                  B. Performed Commitments. Purchaser shall have tendered the
required documents and certificates at the Closing as set forth in Section 3
hereof.

                  C. Purchase Price. The Purchase Price described in Section 2.3
hereof due at the Closing shall have been paid by Purchaser.

                  D. Corporate Approval. All corporate action necessary to
authorize (A) the execution, delivery and performance by Purchaser of this
Agreement and any other agreements or instruments contemplated hereby to which
Purchaser is a party and (B) the consummation of the transactions and
performance of its other obligations contemplated hereby and thereby shall have
been duly and validly taken by Purchaser, and the Seller shall have been
furnished with copies of all applicable resolutions adopted by the board of
directors of Purchaser, certified by the Secretary of Purchaser.

                  The Seller may waive any condition specified in this Section 7
if it executes a writing so stating at or prior to the Closing.

8.       CONDITIONS TO THE OBLIGATIONS OF PURCHASER TO CLOSE

         8.01 All obligations of Purchaser hereunder are, at the option of
Purchaser, subject to the conditions that, at the Closing Date:

                  A. Representations and Warranties. All representations and
warranties of Seller contained in this Agreement shall be true and correct as of
the Closing Date in all material respects.

                  B. Performed Commitments. Seller shall have performed all
commitments hereunder up to the Closing Date and shall have tendered the
required documents, instruments and certificates as set forth in Section 3
hereof.

                                       9
<PAGE>

                  C. No Litigation. No action suit, proceeding or investigation
by or before any court, administrative agency or other governmental authority
shall have been instituted or threatened to restrain, prohibit or invalidate the
transactions contemplated by this Agreement or which may affect the right of
Purchaser to own, operate or control after the Closing Date the Assets and the
Seller's Business.

                  D. Corporate Approval. All corporate action, necessary to
authorize (A) the execution, delivery and performance by the Seller of this
Agreement and any other agreements or instruments contemplated hereby or thereby
to which Seller is a party and (B) the consummation of the transactions
contemplated hereby and thereby shall have been duly and validly taken by
Seller, and Purchaser shall have been furnished with copies of all applicable
resolutions of Seller certified by the Secretary or Assistant Secretary of the
Seller.

                  E. Approvals and Consents. The Seller shall have obtained the
approvals, consents and authorizations of all third parties and/or governmental
agencies necessary for the communication of the transactions contemplated hereby
in accordance with the requirements of applicable laws and agreements.

                  F. Leases. Seller shall at its own cost and expense assign the
current existing lease to the Purchaser and obtain all required landlord
consents. Any costs assessed by the Landlord in the assignment of the leasehold
obligation shall be borne by Seller. In the alternative, Purchaser may prior to
Closing negotiate a new lease for the premises. Nothing contained herein shall
be construed to impose any liability on the Purchaser for any rental obligations
accruing prior to Closing.

                  G. Employment Agreements/Non-Compete. Purchaser shall enter
into a consulting agreement with Larry Lassek on terms mutually agreeable to the
Purchaser and the respective party. All other officers or shareholders of Seller
shall execute non-compete agreements on closing.

                  The Purchaser may waive any condition specified in this
Section 8 if it executes a writing so stating at or prior to the Closing.

9.       INDEMNIFICATIONS

         9.01   Seller agrees to indemnify and hold harmless Purchaser from:

                  A. Any and all damages or deficiencies resulting from any
misrepresentation, breach of warranty or non-fulfillment of any covenants on the
part of Seller under this Agreement.

                  B. Any and all actions, suits, proceedings, demands,
assessments, judgments, costs, reasonable attorneys fees, expenses incident to
any of the foregoing.

                                       10
<PAGE>

                  C. Any and all liabilities as they relate to the personal
property being transferred under this Purchase and Sale Agreement which are not
specifically set forth.

         9.02     Purchaser agrees to indemnify and hold Seller harmless from:

                  A. Any and all damages or deficiencies resulting from any
misrepresentation, breach of warranty or non- fulfillment of any covenant on the
part of Purchaser under this Agreement

                  B. Any and all actions, suits, proceeding, demands,
assessments, judgments, costs, reasonable attorney's fees and expenses incident
to any of the foregoing.

          9.03 Any party having an indemnification claim hereunder
("Indemnitee") shall give the other party ("Indemnitor") prompt notice in
writing of any claim by any third party which gives rise to a claim for
indemnification hereunder, and of any alleged breach of any of the
representations and warranties contained in this Agreement. As to any alleged
breach of the representations or warranties, written notice shall contain a
statement setting forth the nature of the alleged breach or breaches. The
Indemnitor shall have thirty (30) days after the delivery of such notice to cure
or contest any such claim by a third party or any such alleged breach or
breaches. At its option, to be exercised within thirty (30) days of such notice,
the Indemnitor may defend against any such action or proceeding with counsel of
its choice, at the Indemnitor's expense, it being understood, however, that the
Indemnitor's designation of counsel shall be subject to the approval of the
Indemnitee, which approval shall not be unreasonably withhold. Additionally, at
its own expense the Indemnitee may participate in any such defense with counsel
of its choice. As long as the defense is being handled by the Indemnitor, the
Indemnitee shall not settle any such claim, action or proceeding without prior
written consent of the Indemnitor, except that if the Indemnitee does elect to
settle the matter without such consent, the Indemnitor shall be released from
the terms of this indemnification. Notwithstanding the foregoing, in the event
the Indemnitor elects not to defend any such claim, action, or proceeding, the
Indemnitee may do so, in which event the Indemnitor shall continue to indemnify
the Indemnitee for any liabilities, losses and damages incurred by the
Indemnitee, including any settlement payments and for the reasonable costs and
expenses of this counsel.

         9.04 All indemnifications made herein by Purchaser and Seller shall
survive the closing of this transaction and shall inure to the benefit of the
Purchaser's and Seller's heirs, assigns, agents, principals, members and/or
shareholders.

10.      TERMINATION DEFAULT REMEDIES

         10.01. Termination. If either Purchaser or Seller materially defaults
in the due and timely performance of any of its warranties, covenants or
agreements or in the event of the failure to satisfy or fulfill any of the
conditions, the non-defaulting party may on the Closing Date give notice of
termination. The notice shall specify the default or defaults upon which the
notice is based. The

                                       11
<PAGE>

termination shall be effective ten (10) days after the Closing Date, unless the
specified default or defaults have been cured on or before the effective date of
the termination.

         10.02. Default Remedies. Notwithstanding Section 10.01, in the event of
a default, the non-defaulting party may seek specific performance of this
Agreement against the defaulting party from a court of competent jurisdiction,
or alternatively, such non-defaulting party may seek damages from the defaulting
party.

11.   MISCELLANEOUS

         11.01 Waiver. This Agreement may be assigned by Purchaser without the
prior written consent of Seller.

         11.02 Survival. The representations and warranties of the Purchaser and
Seller set forth in Sections 5 and 6 of this Agreement, the indemnities set
forth in Section 9 of this Agreement, and the conditions set forth in Sections 7
and 8 of this Agreement, shall survive termination of, the Closing under, or
performance under this Agreement, forever, until fully performed, discharged
and/or subject to applicable statutes of limitation.

         11.03 Entire Agreement. This Agreement and the Exhibits hereto contain
the entire understanding between the parties hereto with respect to the
transactions contemplated hereby and thereby and supersedes and replaces all
prior and contemporaneous agreements and understandings, oral or written, with
regard to such transactions. All exhibits hereto and any documents and
instruments delivered pursuant to any provision hereof are expressly made a part
of this Agreement as fully as though completely set forth herein.

         11.04 Governing Law, Jurisdiction and Venue. The validity, construction
and performance of this Agreement, and the legal relations between the parties
to this Agreement, each shall be governed by and construed in accordance with
the laws of the State of Florida (excluding that body of law applicable to
choice of laws). Each of the parties hereby agrees that, except for any appeals,
the sole and exclusive venue for any and all disputes relating to this
Agreement, its making, construction, validity, enforceability and/or performance
shall be in the state courts sitting in Broward County, Florida and/or the
United States District Court for the Southern District of Florida and each
hereby voluntarily consents to the personal jurisdiction of said courts and
waives any and all objections to such personal jurisdiction and/or venue.

         11.05 Litigation Costs. If any legal action or other proceeding is
brought for the enforcement of this Agreement or to remedy its breach, the
prevailing party in such action or proceeding shall be entitled to recover its
actual attorney's fees and other costs incurred in the action or proceeding, in
addition to such other relief to which it may be entitled.

         11.06 Headings and References. Headings are included solely for
convenience, are not

                                       12
<PAGE>

themselves to be considered a part of the terms and conditions of this Agreement
and are not intended to be full and accurate descriptions of the contents
thereof. Any reference to a paragraph shall be construed to refer to all
subparts and/or other portions of that paragraph.

         11.07 Amendments; Waivers. This Agreement may be amended or modified,
and any of the terms, covenants, representations, warranties or conditions
hereof may be waived, only by a written instrument executed by the parties
hereto, or in the case of a waiver, by the party waiving compliance. Any waiver
by any party of any condition, or of the breach of any provision, term,
covenant, representation or warranty contained in this Agreement, in any one or
more instances, shall not be deemed to be nor construed as further or continuing
waiver of any such condition, or of the breach of any other provision, term,
covenant, representation or warranty of this Agreement.

         11.08 Notices. All notices relating to this Agreement must be in
writing and delivered either in person or by certified mail or registered mail,
postage prepaid, return receipt requested, to the person(s) and address
specified on the first page of this Agreement or such updated address as either
party may subsequently designate by notice in writing. Notice shall be effective
immediately upon receipt.

         11.09 Severability. In the event that any provision of this Agreement,
or the application of any such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any
extent, the remainder of this Agreement, and the application of such provision
to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful, void or unenforceable, shall not be impaired or otherwise
affected and shall continue to be valid and enforceable to the fullest extent
permitted by law.

         11.10 Expenses. Except as otherwise provided herein, each of the
parties hereto shall pay its own expenses in connection with this Agreement and
the transactions contemplated hereby, including, without limitation, any legal
and accounting fees, whether or not the transactions contemplated hereby are
consummated. All state and local sales, transfer, excise, value-added or other
similar taxes, and all recording and filing fees that may be imposed by reason
of the sale, transfer, assignment and delivery of the Assets, shall be borne by
the Seller.

         11.11 Finders Fees. Neither Seller nor Purchaser has incurred nor will
either incur any liabilities for finder's fees or commission of any nature
whatsoever in connection with the transactions contemplated hereunder.

         11.12 Additional Documentation: The parties agree that without the
payment of additional consideration, each party will provide the other with such
information as may be necessary to carry out the terms and conditions of this
Agreement.

         11.13 Incorporation of Exhibits, Annexes, and Schedules. The Exhibits,
Annexes, and Schedules identified in this Agreement are incorporated herein by
reference and made a part hereof.

                                       13
<PAGE>

         11.14 Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring any Party by virtue of the authorship of any of
the provisions of this Agreement. The law firm of Newman, Pollock & Klein, LLP
represented Purchaser in connection with the drafting of this Agreement, and
Seller was represented by counsel of his own or elected not to be represented by
counsel. Any reference to any federal, state, local, or foreign statute or law
shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The word "including" shall
mean including without limitation.

         11.15 Gender. All references to the male, female or neutral shall be
amended to the proper reference as the context requires.

         11.16 Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which shall constitute the
same instrument.

         11.17 Knowledge. For purposes of this Agreement, a Person shall be
deemed to have "knowledge" of a particular fact or other matter if any
Representative of such Person has knowledge of such fact or other matter.

         11.18 Force Majeure. Neither of the parties shall be responsible for
failure to fulfill its obligations under this Agreement due to causes beyond its
reasonable control, including but not limited to failure of suppliers or
subcontractors to furnish equipment, software, parts or labor, war, sabotage,
insurrection, riots, civil disobedience and the like, acts of governments and
agencies thereof, labor disputes, accidents, fires or Acts of God. In such
event, the delayed party shall perform its obligations hereunder within a
reasonable time after the cause of the failure has been remedied, and the other
party shall be obligated to accept such delayed performance. During any period
that performance of its obligations by one party is delayed or suspended
pursuant to this Paragraph 11.18, the performance of the obligations of the
other party shall be similarly delayed or suspended, including, without
limitation, any obligation of a party to pay money owed based on delayed
performance of obligations of the other party.

         11.19 Binding Effect/Assignment. All the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, successors, assigns and legal representatives.

                                       14
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have signed this Agreement under
seal on the day and year first above written.

SELLER:

ATTEST:                             PACIFIC RIM NATURAL JUICE COMPANY, INC.

_________________                   BY:________________________________
                                    ITS:

PURCHASER:

ATTEST:                             BEVERAGE NETWORK OF HAWAII, INC.

___________________                 BY: _________________________________
                                    ITS:

AGREED TO PARAGRAPH 2.4 ONLY

ATTEST:                             MAUI JUICE COMPANY, INC.

___________________                 BY: _________________________________
                                    ITS:

                                       15

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