Document:

BP - x1-54066 - Xstream Beverage Exhibit 4.1

Exhibit 4.1

WARRANT TO PURCHASE COMMON STOCK

	Date of Issuance:  February 25, 2005,

	 	Warrant to Purchase an aggregate of 150,000

(One Hundred and Fifty thousand) shares of Common Stock

FOR VALUE RECEIVED, XSTREAM BEVERAGE NETWORK, INC., a Nevada corporation (the “Corporation”), pursuant to the terms and conditions of that certain Consulting Agreement of even date herewith by and between the Corporation and  [INSERT NAME OF HOLDER]. (the "Holder") promises to issue in the name of, and sell and deliver to the Holder a certificate or certificates for an aggregate of 150,000 shares of the Corporation’s common stock, par value $0.001 per share (the “Common Stock”), upon payment by the Holder of the exercise price of $1.50  per share (the "Exercise Price") set forth below, with the Exercise Price being subject to adjustment in the circumstances set forth below.  

Section 1.

Exercise of Warrant

1.1

Exercise Period.  The Holder may exercise this Warrant, in whole or in part (but not as to fractional shares), at any time and time to time commencing on the date set forth above and ending at 5:00 p.m., Eastern Time, on February 28, 2010 (the “Exercise Period”).

1.2

Exercise Procedure.  

a.

This Warrant may be exercised in whole or in part at any time during the Exercise Period, provided however, if the last day of the Exercise Period is a day on which federal or state chartered banking institutions located in the State of Florida are authorized by law to close, then the last day of the Exercise Period shall be deemed to be the next succeeding day which shall not be such a day, by presentation and surrender to the Corporation at its principal office of this Warrant accompanied by the form of Exercise Agreement attached hereto as Exhibit 1 signed by the Holder and upon payment of the Exercise Price for the Common Stock purchased thereby, by cashier's check or by wire transfer of immediately available funds.

b.

Certificates for the shares of Common Stock purchased upon exercise of this Warrant will be delivered by the Corporation to the Holder within five (5) business days after the Exercise Date.  Unless this Warrant has expired or all of the purchase rights represented hereby have been exercised, the Corporation will prepare a new Warrant representing the rights formerly represented by this Warrant that have not expired or been exercised.  The Corporation will, within such five (5) day period, deliver such new Warrant to the Holder at the address set forth in this Warrant.

c.

The shares of Common Stock issuable upon the exercise of this Warrant will be deemed to have been transferred to the Holder on the Exercise Date, and the Holder will be deemed for all purposes to have become the record holder of such Common Stock on the Exercise Date.

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d.

The issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to the Holder of any issuance tax in respect thereof or any other cost incurred by the Corporation in connection with such exercise and related transfer of the shares; provided, however, that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any certificate or instrument in a name other than that of the Holder of this Warrant, and that the Corporation shall not be required to issue or deliver any such certificate or instrument unless and until the person or persons requiring the issue thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

e.

The shares of Common Stock issuable upon the exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (the “Act”) and, accordingly, will be “restricted securities” as that term is defined in the Act. The Corporation may insert the following or similar legend on the face of the certificates evidencing shares of Common Stock if required in compliance with state securities laws:

"These securities have not been registered under any state securities laws and may not be sold or otherwise transferred­ or disposed of except pursuant to an effective registration statement under any applicable state securities laws, or an opinion of counsel satisfac­tory to counsel to the Corporation that an exemp­tion from registration under any applicable state securities laws is available." The Holder shall have piggyback registration rights for any Common Shares in connection with any registration statement filed by the Company to register securities of the Company for sale to the public (except a registration statement filed in connection with an acquisition or exchange offering). The Company shall give prompt written notice to the Holder of any such proposed registration, and the Holder shall inform the Company, within 20 days after receipt of such notice, if it wishes to register any of its Common Shares in the Company’s registration Statement. If the Holder does not so information the Company, the Company shall have the right to assume that Holder does not wish to register any of its Common Shares in the Company’s registration statement. The Company shall pay all costs and expenses of such registration, excluding fees and expense of counsel for Holder and underwriting discounts, commissions, or expenses of Holder with respect to the sale of its Common Shares. 

1.3

Fractional Shares.  If a fractional share of Common Stock would, but for the provisions of Subsection 1.1, be issuable upon exercise of the rights represented by this Warrant, the Corporation will, within 30 days after the Exercise Date, deliver to the Holder a check payable to the Holder, in lieu of such fractional share, in an amount equal to the market price of such fractional share as determined by the last sale price of the Corporation’s Common Stock as reported on the OTC Bulletin Board or the principal exchange on which the Corporation’s Common Stock is then traded, as of the close of business on the Exercise Date.

Section 2.

Effect of Stock Dividends, Reorganization, Reclassification,

Consolidation, Merger or Sale

2.1

Stock Dividends, Recapitalization or Reclassification of Common Stock.  In case the Corporation shall at any time prior to the exercise or termination of this Warrant (i) pay a dividend or make a distribution of its capital stock in shares of Common Stock to all holders of shares of Common Stock, or (ii) effect a recapitalization or reclassification of such character that its Common Stock shall be changed into or become exchangeable for a larger or smaller number of shares, then, upon the effective date thereof, the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall be increased or decreased, as the case may be, in direct proportion to the increase or decrease in such number of shares of Common Stock by reason of 

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such stock dividend, recapitalization or reclassification, and the Exercise Price of such dividend, recapitalized or reclassified Common Stock shall, in the case of an increase in the number of shares, be proportionately decreased and, in  the  case  of  a  decrease  in  the  number  of  shares,  be proportionately increased.

2.2

Consolidation, Merger or Sale.  In case the Corporation shall at any time prior to the exercise of this Warrant, or the expiration of the Exercise Period, whichever first occurs, consolidate or merge with any other corporation (unless the Corporation shall be the surviving entity) or transfer all or substantially all of its assets to any other corporation preparatory to a dissolution, then the Corporation shall, as a condition precedent to such transaction, cause effective provision to be made so that the Holder of this Warrant, upon the exercise thereof after the effective date of such transaction, shall be entitled to receive the kind and amount of shares, evidences of indebtedness, and/or other property receivable on such transaction by a holder of the number of shares of Common Stock as to which the Warrant was exercisable immediately prior to such transaction (without giving effect to any restriction upon such exercise); and, in any such case, appropriate provision shall be made with respect to the rights and interests of the Holder hereof to the effect that the provisions of this Warrant shall thereafter be applicable (as nearly as may be practicable) with respect to any shares, evidences of indebtedness, or other securities or assets thereafter deliverable upon exercise of this Warrant.

2.3

Notice of Adjustment.  Whenever the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted as provided herein, the Corporation shall file with its corporate records a certificate of its Chief Financial Officer setting forth the computation and the adjusted number of shares of Common Stock purchasable hereunder resulting from such adjustments, and a copy of such certificate shall be mailed to the Holder.  Any such certificate or letter shall be conclusive evidence as to the correctness of the adjustment or adjustments referred to therein and shall be available for inspection by the holders of the Warrants on any day during normal business hours.

Section 3.

Reservation of Common Stock

The Corporation will at all time reserve and keep available such number of shares of Common Stock as will be sufficient to permit the exercise in full of this Warrant.  Upon exercise of this Warrant pursuant to its terms, the Holder will acquire fully paid and non-assessable ownership rights of the Common Stock, free and clear of any liens, claims or encumbrances.

Section 4.

No Shareholder Rights or Obligations

This Warrant will not entitle the Holder hereof to any voting rights or other rights as a shareholder of the Corporation.  Until the shares of Common Stock issuable upon the exercise of this Warrant are recorded as issued on the books and records of the Corporation’s transfer agent, the Holder shall not be entitled to any voting rights or other rights as a shareholder; provided, however, that the Corporation shall use its bests efforts to ensure that, upon receipt of the Exercise Agreement and payment of the Exercise Price, the appropriate documentation necessary to effectuate the exercise of the Warrant and the issuance of the Common Stock is accomplished as expeditiously as possible.  No provision of this Warrant, in the absence of affirmative action by the Holder to purchase Common Stock, and no enumeration in this Warrant of the rights or privileges of the Holder, will give rise to any obligation of such Holder for the Exercise Price or as a stockholder of the Corporation.

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Section 5.

Transferability

Neither this Warrant nor any rights hereunder are transferable, in whole or in part, without the prior written consent of the Corporation, which such consent may not be forthcoming.  In the event the Corporation should consent to such transfer, this Warrant and the rights under shall be transferable upon surrender of this Warrant with a properly executed Assignment in the form of Exhibit 2 hereto at the principal offices of the Corporation.  The Corporation has no obligation to recognize any purported transfer of this Warrant, and the transferee is not entitled to any rights under this Warrant, until such acknowledgment has been received by the Corporation.  This Warrant and the underlying shares of Common Stock may not be offered, sold or transferred except in compliance with the Act, and any applicable state securities laws, and then only against receipt of an agreement of the person to whom such offer or sale or transfer is made to comply with the provisions of this Warrant with respect to any resale or other disposition of such securities; provided that no such agreement shall be required from any person purchasing this Warrant or the underlying shares of Common Stock pursuant to a registration statement effective under the Act.  The Holder of this Warrant agrees that, prior to the disposition of any security purchased on the exercise hereof other than pursuant to an registration statement then effective under the Act, or any similar statute then in effect, the Holder shall give written notice to the Corporation, expressing his intention as to such disposition.  Upon receiving such notice, the Corporation shall present a copy thereof to its securities counsel.  If, in the sole opinion of such counsel, which such opinion shall not be unreasonably withheld, the proposed disposition does not require registration of such security under the Act, or any similar statute then in effect, the Corporation shall, as promptly as practicable, notify the Holder of such opinion, whereupon the Holder shall be entitled to dispose of such security in accordance with the terms of the notice delivered by the Holder to the Corporation. 

Section 6.

Miscellaneous

6.1

Notices.  Any notices, requests or consents hereunder shall be deemed given, and any instruments delivered, two days after they have been mailed by first class mail, postage prepaid, or upon receipt if delivered personally or by facsimile transmission, as follows:

	If to the Corporation:

	4800 NW 15 Avenue

	 	Bay A

	 	Fort Lauderdale, Florida  33309

	 	Attention:  President

	 	 
	With a copy to:

	Schneider Weinberger & Beilly, LLP

	 	2200 Corporate Boulevard, N.W.

	 	Suite 210

	 	Boca Raton, Florida  33431

	 	Attention:  James M. Schneider, Esq.

	 	 
	If to the Holder:

	____________________

	 	 

except that any of the foregoing may from time to time by written notice to the other designate another address which shall thereupon become its effective address for the purposes of this paragraph.

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6.2

Entire Agreement.  This Warrant, including the exhibits and documents referred to herein which are a part hereof, contain the entire understanding of the parties hereto with respect to the subject matter and may be amended only by a written instrument executed by the parties hereto or their successors or assigns.  Any paragraph headings contained in this Warrant are for reference purposes only and shall not affect in any way the meaning or interpretation of this Warrant.

6.3

Construction and Enforcement.    This Warrant shall be governed by and construed under the laws of the State of Florida, without regard to principles of conflicts of laws and rules of such state. If it becomes necessary for any party to institute legal action to enforce the terms and conditions of this Warrant, and such legal action results in a final judgment in favor of such party ("Prevailing Party"), then the party or parties against whom said final judgment is obtained shall reimburse the Prevailing Party for all direct, indirect or incidental expenses incurred, including, but not limited to, all attorneys’ fees, court costs and other expenses incurred throughout all negotiations, trials or appeals undertaken in order to enforce the Prevailing Party's rights hereunder.  Any suit, action or proceeding with respect to this Warrant shall be brought in the state or Federal courts located in Broward County in the State of Florida.  The parties hereto hereby accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding.  The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Warrant or any judgment entered by any court in respect thereof brought in Broward County, Florida, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in Broward County, Florida, has been brought in an inconvenient forum.

IN WITNESS WHEREOF, this Warrant has been duly executed and the corporate seal affixed hereto, all as of the day and year first above written.

	 	 	XSTREAM BEVERAGE NETWORK, INC.

	 	 	By:/s/ Barry H. Wilson

	 	 	Barry H Willson, Vice Chairman

	 	 	 
	ATTEST:

	 	 
	 	 	 
	 	 	 

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EXHIBIT 1

EXERCISE AGREEMENT

	To:

	Dated:

The undersigned record Holder, pursuant to the provisions set forth in the within Warrant, hereby subscribed for and purchases ______________ shares of Common Stock covered by such Warrant and hereby makes full cash payment of $ ______________ for such shares at the Exercise Price provided by such Warrant.

	 	 
	 	(Signature)

	 	 
	 	 
	 	(Print or type name)

	 	 
	 	 
	 	(Address)

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

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EXHIBIT 2

ASSIGNMENT

FOR VALUE RECEIVED, __________________ , the undersigned Holder hereby sell, assigns, and transfer all of the rights of the undersigned under the within Warrant with respect to the number of shares of Common Stock issuable upon the exercise of such Warrant set forth below, unto the Assignee identified below, and does hereby irrevocable constituted and appoint                                 to effect such transfer of rights on the books of the Corporation, with full power of substitution:

	 	 	 	 	 
	Name of Assignee

	     

	Address of Assignee

	     

	Number of Shares 

of Common Stock

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	Dated:____________________

	 	 
	 	 	(Signature of Holder)

	 	 	 
	 	 	 
	 	 	 
	 	 	(Print or type name)

	 	 	 

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

CONSENT OF ASSIGNEE

I HEREBY CONSENT to abide by the terms and conditions of the within Warrant.

	Dated:____________________

	 	 
	 	 	(Signature of Assignee)

	 	 	 
	 	 	 
	 	 	 
	 	 	(Print or type name)

	 	 	 

7BP - x1-54066 - Xstream Beverage - Exhibit 10.1

Exhibit 10.1

SECURED PROMISSORY NOTE

	February  25th, 2005

	 	$150,000

FOR VALUE RECEIVED, the undersigned, XSTREAM BEVERAGE NETWORK, INC., (“Maker”), a Nevada corporation, having a business address at 4800 N.W. 15th Avenue, Bay 1-A, Fort Lauderdale, Florida 33309, hereby promises to pay to the order of [INSERT NAME] (“Payee”),  at the date of maturity set forth below, the principal amount of One Hundred and Fifty Thousand Dollars ($150,000), together with interest on the unpaid principal amount at the rate of 18% per annum, and with the principal balance and all accrued interest being due and payable  on September 1, 2005, subject to the terms and conditions hereof.

1.

Payments of Interest and Principal.

(a)

Interest.  Maker shall pay interest to Payee on the unpaid outstanding principal balance owed to Payee hereunder at the rate of eighteen percent (18%) per annum to be paid at the time of payment of the principal as herein provided. Interest shall be paid in cash or in the Maker’s common stock at the option of the Maker.  Any shares of Maker's common stock which shall be issued as interest payments shall be valued at the lesser of $1.50 per share or the applicable exercise price of the warrants issued in the New Financing described in Paragraph 3 hereof.                                         

(b)

Maturity.  Maker shall have no duty or obligation to pay any portion of the outstanding principal amount or premium amount owed hereunder, except as hereinafter provided, until September 1, 2005 (“Maturity”).  At maturity, all accrued interest and outstanding principal amount shall be due and payable, and shall be paid to Payee;

(c)

Payments.  All payments made hereunder shall be applied as made first to the payment of interest then due, and the balance of said payment shall be applied to the payment of the principal sum.

2.

Place of Payment.  So long as Payee shall hold this Note, all payments of principal and interest shall be made at the address of Maker as specified herein upon presentment of this Note:

3.

Prepayment and Exchange.  Upon completion of a private placement by the Maker prior to the Maturity date involving gross proceeds of at least $500,000 (“New Financing”), the outstanding principal amount of this Note, in whole or in part, together with accrued interest shall be eligible, at the sole option of the Payee: a) for conversion into and shall be exchanged for the securities issued in the New Financing. In this event, this Note shall be deemed paid in full, or b) for immediate payment in full, including the outstanding principal balance and any interest due, in this event this note shall be deemed paid in full  ^From and after the date hereof, Maker shall have the option to prepay all, but not in part, of the principal balance, together with accrued interest on the principal amount of this Note without prepayment penalty.

4.

Security Interest.  This Note is secured by 100,000 shares of common stock of Maker listed in the name of Ted Farnsworth  and 100,000 shares of common stock of Maker listed in the name of the Company (“Collateral”) pursuant to separate documentation provided to Payee.

5.

Rank.  This Note shall rank pari pasu with all of Maker’s existing unsecured obligations.  

6.

Default.  The occurrence of any of the following shall constitute an event of default (“Event of Default”):

(a)

Failure to Pay.  Maker fails to pay, when due, any of the payment obligations provided for in this Note at their due date or under any other note or obligations of Maker to the Payee.  

(b)

Denominated Events.  The occurrence of any event expressly denominated as an Event of Default in this Note;  

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(c)

Failure to Perform.  Maker fails to perform or observe any material covenant, term or condition of this Note, or any other note or obligation issued or owing in respect to Payee and to be performed or observed by Maker, or the terms of the Confidential Term Sheet dated February 12, 2005, and such failure continues unremedied for a period of ten (10) days after written or facsimile notice from Payee to Maker of such failure;  

(d)

Petition By or Against Maker.  There is filed by or against Maker any petition or complaint with respect to its own financial condition under any state or federal bankruptcy law or any amendment thereto (including, without limitation, a petition or reorganization, arrangement or extension of debts) or under any other similar or insolvency laws providing for the relief of debtors; or  

(e)

Appointment of Receiver.  A receiver, trustee, conservator or liquidator is appointed for Maker, or for all or a substantial part of its assets, or Maker shall be adjudicated bankrupt or in need of any relief provided to debtors by any court.

7.

Remedies.

(a)

Acceleration, Proceed Against Collateral.  Upon the occurrence of an Event of Default and for so long as such default is continuing:

(1)

The total amount of (i) of this Note and all other sums owing to Payee which are (a) then due and unpaid or (b) thereafter to become due and payable; and (ii) interest on the foregoing sums, at the rate of one and one-half percent (1 1/2%) per month from said occurrence until paid in full (the “Default Amount”) shall, at the option of Payee, become immediately due and payable without notice or demand;

(2)

The proceeds of the Collateral shall be applied.  First, to the payment of all reasonable fees and expenses incurred by Payee as a result of such Event of Default, including without limitation any legal fees and expenses incurred in connection therewith; Second, to pay the Default Amount to the extent not previously paid by Maker; and Third, to pay any excess remaining thereafter to Maker.  For the purposes of this Paragraph, the Collateral shall be valued at fair market value on the date on which it is foreclosed upon;

(3)

In lieu of any such sale, Payee, in its sole discretion, may retain the Collateral in full satisfaction of Maker’s obligations under this Note; and

(4)

Payee may exercise any of the other remedies provided under applicable laws.

(b)

Cumulative Remedies; Waivers.  No remedy referred to herein is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available to Payee at law or in equity.  No express or implied waiver by Payee of any default or Event of Default hereunder shall in any way be, or be construed to be, a waiver of any future or subsequent default or event of Default.  The failure or delay or Payee in exercising any rights granted it hereunder under any occurrence of any of the contingencies set forth herein shall not constitute a waiver of any such right upon the continuation or recurrence of any such contingencies or similar contingencies, and any single or partial exercise of any particular right by Payee shall not exhaust the same or constitute a waiver of any other right provided herein.  

(c)

Costs and Expenses.  Maker shall be liable for all costs, charges and expenses incurred by Payee by reason of the occurrence of any Event of Default or the exercise of Payee’s remedies with respect thereto.  

(d)

No Marshalling.  Payee shall be under no obligation to proceed against any or all of the collateral before proceeding directly against Maker.  Payee shall be under no obligation whatsoever to proceed first against any of the collateral before proceeding against any other of the Collateral.  It is expressly understood and agreed that all of the Collateral stands as equal security for all obligations described above, and that Payee shall have the right to proceed against any or all of the Collateral in any order, or simultaneously, as in its sole discretion it shall determine.  It is further understood and agreed that Payee shall have the right, as it, in its sole discretion, shall determine, to retain, sell or dispose of any or all of the Collateral in any order or simultaneously.  

(e)

Other Remedies.  The remedies granted to Payee herein upon an Event of Default are not restrictive of any and all other rights and remedies of Payee provided for by this Agreement, any of the relevant documents and applicable law.

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8.

Penalty on Default. 

In addition to the remedies set forth in Paragraph 7 hereof which are available to the Payee, upon the occurrence of an Event of Default, until such time as the Note shall have been paid or the Event of Default otherwise cured, the exercise price of the Common Stock Purchase Warrant issued to the Payee representing the Payee's right to purchase 150,000 shares of the Maker' common stock at an exercise price of $1.50 per share issued in connection with this Note shall automatically reduce by five percent (5%) for each 30 day period in which such default shall continue.    

9.

Miscellaneous.

(a)

Waivers.  No waiver of any term or condition of this Note shall be construed to be a waiver of any succeeding breach of the same term or condition.  No failure or delay of Payee to exercise any power hereunder, or it insists upon strict compliance by Maker of any obligations hereunder, and no custom or other practice at variance with the terms hereof shall constitute a waiver of the right of Payee to demand exact compliance with such terms.  

(b)

Invalid Terms.  In the event any provision contained in this Note shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this note, and this Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.  

(c)

Successors.  This Note shall be binding upon Maker, its legal representatives, successors and assigns, and inure to the benefit of Payee, its legal representatives, successor and assigns.  

(d)

Controlling Law.  This Note shall be read, construed and governed in all respects in accordance with the laws of the State of Florida.  

(e)

Amendments.  This Note may be amended only by an instrument in writing and executed by the party against which enforcement of the amendment is sought.

(f)

Notices.  All notices, requests, demands and other communications required or permitted to be given hereunder shall be sufficiently given if addressed to the Maker at 4800N.W. 15th Avenue, Bay 1-A, Fort Lauderdale, Florida 33309 and to the Payee at [INSERT ADDRESS], posted in the U.S. Mail by certified or registered mail, return receipt requested or by overnight mail, including appropriate receipts.  Any party may change said address by giving the other party hereto notice of such change of address.  Notice given as hereinabove prescribed shall be deemed given on the date of its deposit in the U.S. Mail or with the overnight delivery service.

(g)

Headings.  All section and subsection headings herein, wherever they appear, are for convenience only and shall not affect the construction of any terms herein.

IN WITNESS WHEREOF, the undersigned has caused this Note to be executed by its duly authorized officer and its seal affixed hereto, as of the day and year first above written.

	 	 	XSTREAM BEVERAGE NETWORK, INC.

	 	 	 
	 	 	/S/ Barry Willson

	 	 	Sign Name

	 	 	 
	 	 	Barry Willson

	 	 	Print Name

	 	 	 
	 	 	Vice-Chairman

	 	 	Title

	ATTEST:

	 	 
	 	 	 
	______________________________

	 	 

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