Document:

fs12010ex10iv_dcbrands.htm

 

Exhibit 10.4

 

AGREEMENT TO EXCHANGE

PREFERRED STOCK

FOR COMMON STOCK

THIS AGREEMENT, dated as of March 24, 2008 is entered into by and between Richard Pearce (“Pearce”) and DC Brands International, Inc. (the “Company”).

 

WITNESSETH:

 

WHEREAS, Pearce owns 100,000 shares of preferred stock of the Company for services rendered;

 

WHEREAS, Pearce is willing to exchange 5% of the voting rights held by his preferred stock (the “Shares”) and reduce his voting right which he has from such ownership from 56.25% to 51.25% for a total of 40,000,000 shares of common stock (the “Common Stock”); and

 

WHEREAS, Pearce shall exchange the Shares for 40,000,000 shares of Common Stock.

 

NOW, THEREFORE, in consideration for the foregoing, the parties hereto agree as follows:

 

	
1.  

	
Exchange.  The Shares, including all accrued interest and penalties due thereunder, will be exchanged as of the date hereof for 40,000,000 shares of Common Stock. Thus, concurrently with the execution of this Agreement, Pearce shall deliver to the Company the Shares for cancellation and the Company shall deliver to Pearce stock certificates evidencing 40,000,000 shares of the Common Stock.

 

	
2.  

	
Pearce’s Representations, Warranties, Etc.; Access To Information; Independent Investigation.  Pearce represents and warrants to, and covenants and agrees with, the Company as follows:

 

	
a.  

	
Pearce is exchanging the Shares and accrued interest and penalties thereon for the Common Stock for his own account for investment only and not with a view towards the public sale or distribution thereof and not with a view to or for sale in connection with any distribution thereof.

 

 

  

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b.  

	
Pearce is (i) an "accredited investor" as that term is defined in Rule 501 of the General Rules and Regulations under the 1933 Act by reason of Rule 501(a)(3), and (ii) experienced in making investments of the kind described in this Agreement and the related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to protect his own interests in connection with the transactions described in this Agreement, and the related documents, and (iv) able to afford the entire loss of his investment in the Common Stock.

 

	
c.  

	
Pearce understands that the Shares, plus accrued interest and penalties are being exchanged for the Common Stock in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and Pearce’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of Pearce set forth herein in order to determine the availability of such exemptions and the eligibility of Pearce to acquire the Common Stock.

 

	
d.  

	
Pearce and his advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the exchange of the Shares and the issuance of the Common Stock which have been requested by Pearce.  Pearce and his advisors, if any, have been afforded the opportunity to ask questions of the Company and have received complete and satisfactory answers to any such inquiries;

 

  

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e.  

	
Pearce understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Common Stock.

 

	
f.  

	
This Agreement has been duly and validly authorized, executed and delivered on behalf of Pearce and is a valid and binding agreement of Pearce enforceable in accordance with its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium and other similar laws affecting the enforcement of creditors' rights generally.

 

	
g.  

	
Pearce owns the Shares free and clear of all pledges, mortgages and claims of any kind whatsoever.

 

	
3.  

	
Company Representations, Etc.  The Company represents and warrants to Pearce that:

 

	
a.  

	
Company Status.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado, and has the requisite corporate power to own its properties and to carry on its business as now being conducted.  The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary other than those jurisdictions in which the failure to so qualify would not have a material and adverse effect on the business, operations, properties, prospects or condition (financial or otherwise) of the Company.  The Company has not registered its common stock under the Securities Exchange Act of 1934, as amended (the "1934 Act"), and the Common Stock is listed and traded on the Grey Sheets.

 

  

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b.  

	
Authorized Shares. The shares of Common Stock issuable upon conversion of the Shares have been duly authorized and, when issued to Pearce, will be duly and validly issued, fully paid and non-assessable and will not subject Pearce to personal liability by reason of being a holder of such shares.

 

	
c.  

	
Exchange Agreement.  This Agreement and the transactions contemplated hereby, have been duly and validly authorized by the Company.  This Agreement has been duly executed and delivered by the Company and is a valid and binding agreement of the Company enforceable in accordance with its terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of creditors' rights generally.

 

	
d.  

	
Non-contravention.  The execution and delivery of this Agreement by the Company, the issuance of the Common Stock, and the consummation by the Company of the other transactions contemplated by this Agreement do not and will not conflict with or result in a breach by the Company of any of the terms or provisions of, or constitute a default under (i) the articles of incorporation or by-laws of the Company, (ii) any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company is a party or by which it or any of its properties or assets are bound, (iii) to its knowledge, any existing applicable law, rule, or regulation or any applicable decree, judgment, or (iv) to its knowledge, order of any court, United States federal or state regulatory body, administrative agency, or other governmental body having jurisdiction over the Company or any of its properties or assets, except such conflict, breach or default which would not have a material adverse effect on the transactions contemplated herein. The Company is not in violation of any material laws, govern­men­tal orders, rules, regula­tions or ordinances to which its property, real, personal, mixed, tangible or intangible,  or its businesses related to such properties, are subject.

 

 

  

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e.  

	
Approvals.  No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange or market is required to be obtained by the Company for the issuance of the Common Stock to Pearce as contemplated by this Agreement, except such authorizations, approvals and consents that have been obtained.

 

	
f.  

	
Transfer of Common Stock.  The Common Stock of the Company is not registered under The Securities Act of 1933, as amended (the Act”) and therefore the shares issued hereunder must be held indefinitely unless they are subsequently registered under the Act or an exemption from the registration requirements of the Act is available.

 

	
g.  

	
Full Disclosure.  There is no fact known to the Company (other than general economic conditions known to the public generally) that (i) would reasonably be expected to have a material adverse effect on the business or financial condition of the Company or (ii) would reasonably be expected to materially and adversely affect the ability of the Company to perform its obligations pursuant to this Agreement.

 

	
4.  

	
Certain Covenants And Acknowledgments.  The Company undertakes and agrees to make all necessary filings in connection with the exchange effected hereby under any United States laws and regulations, and to provide a copy thereof to Pearce promptly after such filing.

 

  

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5.  

	
Governing Law; Miscellaneous.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado.  A facsimile transmission of this signed Agreement shall be legal and binding on all parties hereto.  This Agreement may be signed in one or more counterparts, each of which shall be deemed an original.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement in any other jurisdiction.  This Agreement may be amended only by an instrument in writing signed by the party to be charged with enforcement.  This Agreement, and the related agreements referred to herein, contain the entire agreement of the parties with respect to the subject matter hereto, superceding all prior agreements, understandings or discussions.

 

	
6.  

	
Notices.  Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given, (i) on the date delivered, (a) by personal delivery, or (b) if advance copy is given by fax, (ii) seven business days after deposit in the United States Postal Service by regular or certified mail, or (iii) three business days mailing by international express courier, with postage and fees prepaid, addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by ten days advance written notice to each of the other parties hereto.

 

 

  

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COMPANY:                          DC Brands International, Inc.

95000 W. 49th Avenue

Wheat Ridge, CO 80033

Attention: Jeremy Alcamo

PEARCE:                               Richard Pearce

c/o DC Brands International, Inc.

95000 W. 49th Avenue

Wheat Ridge, CO 80033

	
7.  

	
Successors And Assigns.   This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

IN WITNESS WHEREOF, the Company and Pearce have caused this Agreement to be executed by their duly authorized representatives on the date as first written above.

DC BRANDS INTERNATIONAL, INC.

 

By:                                                                

Name:  Jeremy Alcamo

Title:    Chief Financial Officer

 

 

 

                                                                         

RICHARD PEARCE

 

 

 

 7fs12010ex10v_dcbrands.htm

Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

AGREEMENT made as of  May 1, 2010 by and between  DC Brands, Inc., a Colorado corporation having its principal office at 4900 W. 49th Avenue, Wheat Ridge, CO 33317 (hereinafter referred to as the "Company"), and Jeremy Alcamo, currently residing at _6357 Otis Street Arvada, CO 80003, Colorado (hereinafter referred to as "Executive").

W I T N E S S E T H

WHEREAS, the Executive performed services for the Company and was to be paid an annual salary of One Hundred Twenty Five Thousand Dollars, of which Sixty Thousand Four Hundred Thirty Four Dollars and Sixty Two Cents ($60,434.62) is still owed for services performed during 2008 and Twenty One Thousand Six Hundred Eight Five Dollars and Fifty Three Cents ($21,685.53) is still owed for services performed during 2009;

WHEREAS, the Company and the Executive desire to memorialize their agreement with respect to the accrual and payment of any amounts owed to Executive for services performed during 2008 and 2009 as well as the terms pursuant to which the Company desires to employ Executive on an ongoing basis, and Executive desires to be employed by the Company on an ongoing basis.

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the parties hereto agree as follows:

 

1.           EMPLOYMENT.  The Company hereby employs Executive and Executive hereby agrees to be employed by the Company, subject to the terms and conditions hereinafter set forth.

 

2.           TERM.  The initial term of this Agreement shall begin on the date hereof (the "Employment Date") and shall continue for three years, subject to prior termination in accordance with the terms hereof..

 

3.           DUTIES.   Executive shall serve as the Exec. Vice President of the Company, with duties and responsibilities commensurate with that position as the Board of Directors shall determine. In the performance of his duties, Executive shall comply with the policies of and be subject to the reasonable direction of the Board of Directors of the Company. Executive's principal place of employment shall be in Wheat Ridge, Colorado and notwithstanding that Executive shall be required to travel in the course of performing his duties, he shall not be required to move his permanent residence outside Denver, Colorado.

           The Executive agrees to devote the time he deems necessary to the performance of the business of the Company and of any of its subsidiaries by which he may be employed. It shall not be a violation of this Agreement for Executive to (a) serve on corporate, civic, charitable and professional boards and committees, (b) manage personal investments or (c) provide consulting services to third parties so long as they do not materially interfere with the performance of Executive’s duties hereunder (d) devote time and attention to the business of other companies. 

4.           COMPENSATION.  As compensation for the services to be rendered by Executive hereunder, the Company agrees to pay or cause to be paid to Executive, and Executive agrees to accept, an annual salary of One Hundred Twenty Five Thousand  Dollars ($125,000), payable in accordance with the customary practice of the Company.  The Executive shall receive annual increases in salary which shall be at least five percent (5%) per year for each subsequent year during this Employment Agreement.  In addition, the Executive may, in the discretion of the Company, receive  a bonus at the end of each calendar year.  The Company acknowledges that Sixty Thousand Four Hundred Thirty Five Dollars ($60,435) is owed to Executive for services performed by Executive during 2008 and Twenty One Thousand Six Hundred Eight Six Dollars ($21,686) is owed to Executive services performed by Executive during  2009, all of which  shall be accrued and paid

  

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5.           ADDITIONAL COMPENSATION.  The Company may also pay Executive such other additional compensation as may from time to time be determined by the Company.  In this regard, Executive shall receive annual performance reviews in accordance with the Company's customary policies and practices.

  

6.           REIMBURSEMENT OF EXPENSES.  During the period Executive is employed hereunder, the Company shall reimburse Executive for reasonable and necessary out-of-pocket expenses advanced or expended by Executive or incurred by him for or on behalf of the Company in connection with his duties hereunder in accordance with its customary policies and practices.

 

7.           TERMINATION OF EMPLOYMENT; EFFECT OF TERMINATION.

 

(a)             The Executive's employment hereunder may be terminated at any time upon written notice by the Company, upon the occurrence of any of the following events during the term of this agreement:

   

(i)    the death of Executive;

 

(ii)   the disability of Executive (as defined in paragraph (b);   For purposes hereof, the term "disability" shall mean the inability of Executive, due to illness, accident or any other physical or mental incapacity, to perform his duties in a normal manner for a period of  six (6) months (whether or not consecutive) in any twelve (12) month period during the term of this Agreement. or

 

(iii)  the determination that there is cause (as hereinafter defined) for such termination. For purposes hereof, "cause" shall mean and be limited to, if one of the following events should occur during the employment term:

(A)  Executive is convicted in a court of law of a (i) felony or (ii) any crime or offense involving material misuse or misappropriation of money or other property of Company; or

(B)  Executive breaches a material provision of this Agreement and such breach continues for a period of thirty (30) days after written notice of such breach is given to Executive by Company.

 

(b)   Executive may resign from his employment without good reason by notice to the Company at least sixty (60) days prior to the date of termination.

 

(c)   Executive shall have the right to terminate Executive's employment hereunder at any time for good reason.  For purposes hereof, “good reason” shall mean, a reasonable determination by Executive that any of the following has occurred:

 

(i)   A material breach by the Company of the terms of this Agreement, which breach is not cured promptly after notice thereof from Executive; or

 

  

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(ii)   A change in control (as hereinafter defined) has occurred and following such change of control or during the sixty (60) days prior to such change of control,  the Company has reduced the Executive’s base salary and or benefits, in one or a series of reductions, below the Executive’s base salary for any of the three years period immediately preceding the change of control.  A change in control shall mean (a) any person becomes the beneficial owner (as term is defined in the Securities Exchange Act of 1934) directly or indirectly, of securities representing more than fifty percent (50%) of the total voting power of Company’s shares; or (b) a change in the composition of the Board of Directors as a result of which fewer than a majority of the directors are Incumbent Directors.  Incumbent Directors shall mean directors who are either directors of the Company on the date hereof or are elected by the Board of Directors with the affirmative vote of a majority of the Incumbent Directors at the time of election or (c) the Company merges with another corporation after which a majority of the shares of the resulting entity are not held by shareholders of the Company prior to the merger.

 

(iii)  An assignment to Executive of any duties inconsistent with Executive’s position (including status, office, title, and reporting requirements) authority, duties or responsibilities as contemplated by Section 3 hereof which results in diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated and insubstantial action not taken in bad faith which is remedied by the Company after receipt of notice thereof given by Executive.

  

(d)           In the event that Executive's employment is terminated by Executive for any reason other than good reason or by the Company for cause, Executive will be entitled to only his accrued salary through the date of termination and nothing more.

 

(e)           In the event that Executive's employment is terminated by Executive for good reason or by the Company without cause, the Company shall pay to Executive, within thirty (30) days after the date of termination, his monthly salary for an additional one year after the date of termination, bonus, vacation pay, expense reimbursement and any other entitlements under this Agreement to the extent not previously paid through the term of this Agreement.

 

(f)            If Executive’s employment is terminated by reason of Executive’s death, this Agreement shall terminate without further obligation other than payment of accrued obligations. If Executive’s employment is terminated by reason of Executive’s disability, this Agreement shall terminate without further obligation other than payment of (i) accrued obligations, (ii) Welfare Benefit Continuation, and (iii) Executive’s base salary for a period of six (6) months following termination.

 

8.   REPRESENTATIONS AND AGREEMENTS OF EXECUTIVE.  The Executive represents and warrants that he is free to enter into this Agreement and to perform the duties required hereunder, and that there are no employment contracts, restrictive covenants or other restrictions preventing the performance of his duties hereunder.

 

9.           NON-DISCLOSURE OF CONFIDENTIAL INFORMATION; INVENTIONS.

 

(a)           Executive shall not, during the term of this Agreement, and at any time following termination of this Agreement, directly or indirectly, disclose or permit to be known, to any person, firm or corporation, any confidential information acquired by him during the course of or as an incident to his employment hereunder, relating to the Company or any of its subsidiaries, the directors of the Company or its subsidiaries, any client of the Company or any of its subsidiaries, or any corporation, partnership or other entity owned or controlled, directly or indirectly, by any of the foregoing, or in which any of the foregoing has a beneficial interest, including, but not limited to, the business affairs of each of the foregoing.  Such confidential information shall include, but shall not be limited to, proprietary information, trade secrets, know-how, market studies and forecasts, competitive analyses, the substance of agreements with clients and others, client lists and any other documents embodying such confidential information. Confidential information shall not include information which (i) is or becomes part of the public domain without breach of this Agreement, (ii) was known by Executive on a non-confidential basis prior to disclosure by the Company, (iii) is independently received by Executive without the use of confidential information, or (iv) is explicitly approved for release by written authorization of the Company.  It shall not be a breach of the terms of this Agreement if Executive discloses confidential information that it is legally required to disclose provided that Executive promptly notifies the Company of such requirement and, if requested by the Company, reasonably cooperates in the Company’s efforts to prevent or limit such disclosure.

  

  

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(b)          All information and documents relating to the Company, its affiliates as hereinabove described (or other business affairs) shall be the exclusive property of the Company, and Executive shall use his best efforts to prevent any publication or disclosure thereof.  Upon termination of Executive's employment with the Company, all documents, records, reports, writings and other similar documents containing confidential information, including copies thereof, then in Executive's possession or control shall be returned and left with the Company. A copy of which may be retained by the Executive.

 

(c)           Any inventions, discoveries, concepts or ideas, or expressions thereof, whether or not subject to patents, copyrights, trademarks or service mark protections, and reduced to practice, which are conceived or developed by Executive while employed with the Company which relate to or result from the actual business, work other than the patented flip top or any enhancements or modifications thereof, research or investigation of the Company shall be the sole and exclusive property of the Company.  Executive will do all things reasonably requested by the Company to assign to and vest in the Company the entire right, title and interest to any such inventions, discoveries, concepts, ideas or expressions thereof.

 

10.         RIGHTS UPON BREACH.  Executive recognizes that the services to be rendered by him hereunder are of a special, unique, unusual, extraordinary and intellectual character involving skill of the highest order and giving them peculiar value, the loss of which cannot be adequately compensated for in damages.  In the event of a breach of this Agreement by Executive, the Company shall be entitled to injunctive relief, without the obligation of posting a bond, or any other legal or equitable remedies.    The remedies provided in this Agreement shall be deemed cumulative and the exercise of one shall not preclude the exercise of any other remedy at law or in equity for the same event or any other event.

 

11.         AMENDMENT OR ALTERATION.  No amendment or alteration of the terms of this Agreement shall be valid unless made in writing and signed by both of the parties hereto.

 

12.         GOVERNING LAW.  This Agreement shall be governed in all respects by the laws of the State of Colorado.  Executive and the Company hereby irrevocably consent to the jurisdiction of any Colorado State or Federal court over any action or proceeding arising out of any dispute between Executive and the Company, and Executive further irrevocably consents to the service of process in any such action or proceeding by the mailing of a copy of such process to Executive at the address set forth above.

 

13.         SEVERABILITY. The holding of any provision of this Agreement to be illegal, invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

14.         NOTICES.  Any notices required or permitted to be given hereunder shall be sufficient if in writing, and sent by certified mail to the addresses set forth above or such other address as either party may from time to time designate in writing to the other, and shall be deemed given as of the date of the delivery or mailing.

 

15.         WAIVER OR BREACH.  It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by that same party.

 

16.         ENTIRE AGREEMENT AND BINDING EFFECT.  This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, heirs, distributees, successors and assigns.

 

17.         ASSIGNMENT.  This Agreement may not be transferred or assigned by either party without the prior written consent of the other party.

 

  

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18.         SURVIVAL.  The termination of Executive's employment hereunder shall not affect the enforceability of Sections 9, 10 and  11 hereof.

 

19.         FURTHER ASSURANCES.  The parties agree to execute and deliver all such further instruments and take such other and further action as may be reasonably necessary or appropriate to carry out the provisions of this Agreement.

 

20.         HEADINGS.  The Section headings appearing in this Agreement are for purposes of easy reference and shall not be considered a part of this Agreement or in any way modify, amend or affect its provisions.

 

21.         COUNTERPARTS.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together, shall constitute one instrument.

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

                                                                DC BRANDS INTERNATIONAL, INC.

By: ____________________________

Name: Richard Pearce

Title:  President and CEO

_______________________________

 Jeremy Alcamo

 

  

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