Document:

Exhibit 10.3

 

KIKO FOODS, INC. PRODUCTION

AND MATERIALS AGREEMENT

 

This
Agreement is entered into this 11th day of March, 2005 by and between the following parties:

 

•                  Sweet Success Enterprises,
Inc. (hereinafter referred
to as “SSE” ), a Nevada corporation,
represented herein by Bill Gallager, its President.

 

•                  Kiko Foods, Inc. (hereinafter referred to as “KFI”),
a Louisiana corporation represented herein by Max H. Burnell, its President and
Chief Executive Officer.

Recitals

 

A.            KFI is in the business, among other things,
of manufacturing, packaging, and formulating liquid food products, including
juice drinks, juice beverages, isotonic beverages, specialty beverages,
marinades, sauces and other specialty products for

sale under its brand or under private label for clients and third party brands.

 

B.            SSE wishes to purchase a finished Product and
potentially other Products from KFI and has requested that KFI manufacture or
contract to be manufactured Products bearing SSE’s
and/or its clients’ private labels, which KFI has agreed to do.

 

1.             Designation and Acceptance

 

During
the term of this Agreement, KFI will be the exclusive manufacturer and/or
contractor from which SSE will
purchase the Products, as defined in Section 2 below. SSE
agrees that it will not purchase said Products from any other party so long as
KFI is capable of meeting SSE’s needs as
outlined in this agreement. Should KFI notify SSE
that one or more proposed pieces of manufacturing business exceeds KFI’s
ability to accommodate the volume, quality, or packaging style required by SSE, then SSE may arrange
with a third party for manufacture of said Products.

 

2.             Definitions: Products

 

“Products”
means

•      Products, all natural that are custom labeled under any labels owned by SSE or its clients.

•      Any other beverage or food products that may
be added to this Agreement by written approval of both parties of this
Agreement.

 

 

More specific definitions of the Products are contained in Attachment “A”,
attached hereto and made a part hereof.

 

3.             Intellectual Property Rights

 

(a)   It is understood and agreed that SSE owns all rights in and to the SSE
brands or its contracted private label brands, and to the design of its labels
as is or will be developed in the future. Nothing in this Agreement shall give KFI
any right to or interest in such name(s) or the design of the labels, provided,
however, that KFI shall retain ownership in all KFI owned brands, labels, and formulas.

(b)   It is understood and agreed that SSE owns all rights in and to its customers and customer
lists. Any information revealed to KFI relative to the preceding sentence shall
be deemed confidential and shall remain the sole property of SSE and shall not be used for gain or disclosure by KFI
except in the fulfillment of this contract. At no time during the term of this
Agreement and for twenty-four (24) months following the termination or
cancellation of this Agreement shall KFI compete or attempt to compete with SSE for any of SSE’s business
related to the Products of this Agreement.

(c)    It is understood and agreed that KFI owns and
may hold confidential its knowledge in the area of food technology, liquid food
and packaging development, and formulation, processing, packaging design and
pricing. Any such information shall remain the sole property of KFI and shall
be kept in confidence by SSE for the
term of this Agreement and for a period of twenty-four (24) months following
the termination or cancellation of this Agreement. Notwithstanding the
preceding or anything in this Agreement to the contrary, upon execution of this
Agreement, KFI transfers all rights to the “Sweet Success All Natural Meal
Replacement and Fuel Formula.” (the “Formula”). Such Formula shall become the
sole and exclusive property of Sweet Success upon execution of this Agreement;
however, ownership of the Formula shall revert to KFI in the event that SSE is liable for an Event of Default set forth in Section
14.1(i) or (ii) during the initial term of this Agreement.

 

4.             Materials Inventory

 

(a)   SSE acknowledges that in fulfillment of its
obligations under this Agreement KFI must purchase and keep in its inventory
adequate quantities of certain materials related to the Products, which
materials are described in Attachment “B”, attached hereto and made a part
hereof. During the term of this Agreement KFI may keep on hand up to sixty (60)
days inventory of these materials, it being understood, however, that at
termination of this Agreement such inventory will be reduced to nil. In the
event that this Agreement is terminated or canceled for any reason other than a
KFI Event of Default (as defined in Section 14), SSE
will purchase from KFI, at KFI,s cost, KFI’s existing inventory and materials
that are on order on the date of termination or cancellation. Items owned by SSE will be removed from the KFI facility within 30 days at
the cost of SSE

 

2

 

(b)   Under this Agreement, SSE
will be responsible for supplying the supplies required to manufacture the
Products that are listed on Attachment “D”, attached hereto and made a part
hereof, and other supply(ies) that may from time to time be added with the
written approval of both parties. All of these supplies are to be delivered to
KFI’s production facility no earlier and no later than the time frame specified
by the parties. In all cases SSE shall
notify KFI at time of order placement for supply(ies) for delivery to the KFI
plant, and shall call to schedule an appointment for delivery of the
supply(ies) at least 12 hours in advance of the delivery time (Attachment “F”).

(c)   Under this Agreement, SSE
supplied materials will be subject to losses during the course of the normal
production and QS cycles. The level of losses guaranteed by KFI are indicated
on Attachment “D”. Losses above and beyond the guaranteed maximum levels are
reimbursed to SSE via an issued credit against
future purchases. Should the run or runs be the last of a contracted period and
no future runs are anticipated, then the reimbursement of the excess loss value
shall be paid to SSE by check. Inventory reporting
to SSE of the SSE
owned materials and fluids shall be on a monthly or more frequent basis as
determined and agreed to by both parties.

 

5.             Products Specifications & Sample Production Run

 

KFI
will manufacture or contract to be manufactured the Products in accordance with
the Product specifications, quality standards and formulations agreed upon by
the parties that are set forth in Attachment “C”, attached hereto and made a
part hereof, consistent with sample merchandise demonstrated to SSE by KFI, resulting from bench top preparation and/or an
aseptic sample test run. If requested by SSE in writing,
a single such aseptic sample run will be arranged for by KFI for SSE at the Tetra Pak pilot plant in Denton, TX, in a Tetra
Prisma 250 mL and the charges for which run will be absorbed by KFI.
Additionally, KFI will supply SSE with Tetra
Prisma mock ups in the 330 mL to use in presentations with the sample and/or
other purposes (art for mock up must be supplied by SSE.

 

6.             Products Warranties

 

(a)   KFI warrants that no Products will be,

(i)            adulterated or misbranded within the meaning
of the Federal Food, Drug and Cosmetic Act, as amended, including its food and
color additive amendments (the “Act”), or within the meaning of any applicable
state or local law or regulation imposing similar requirements;

(ii)           articles which may not, under the provisions
of Section 404 or 505 of the Act, be introduced into interstate commerce, or

(iii)          in violation of the requirements imposed upon
KFI by the California Safe Drinking Water and Toxic Enforcement Act of 1986 or
any other state or local law or regulation imposing similar requirements on
KFI.

 

3

 

(b)   KFI warrants that as of the date hereof there
are no pending or threatened lawsuits, proceedings, claims, prior contracts or
investigations that could in any material way adversely affect KFI’s
performance hereunder.

 

(c)   KFI agrees,

(i)            to maintain, at its cost, all licenses,
permits and other authorizations necessary for the manufacture of the Products
and the performance of its obligations hereunder;

(ii)           to comply with all applicable federal, state
and local laws and regulations in carrying out its obligations hereunder;

(iii)          to have good and marketable title to the Products, free and clear of
any and all liens and encumbrances of any kind; and

(iv)          that the Products will meet the
specifications and requirements set forth herein, or as changed and agreed to
in writing by both parties of this Agreement, and will be fit for human
consumption and will be manufactured in accordance with good manufacturing
practices.

 

7.             Insurance

 

During
the term of this Agreement, KFI will maintain the insurance coverages with at
least the minimum limits set forth on Attachment “E”, attached hereto and made
a part hereof. KFI will provide SSE with a
certificate of insurance evidencing such coverages and minimum limits from a
financially sound insurance carrier.

 

8.             Indemnification

 

During
the term of this Agreement and for a period of twelve (12) months after
termination KFI will defend, indemnify and hold harmless SSE,
its shareholders, officers, directors, employees, agents and customers from and
against all liabilities, losses, damages, claims and expenses that SSE or such other persons are required to pay or incur
arising out of,

(i)            KFI’s breach of any warranties made
hereunder;

(ii)           KFI’s failure to conform to the Products
specifications agreed to by the parties;

(iii)          bodily injury (including death) or property
damage resulting from the purchase, sale or use of the Products, which is not
the result of SSE (or its agent’s, contractor’s
or customer’s) negligence or willful misconduct in the handling, storage,
preparation, distribution or sale of the Products after delivery to SSE;

(iv)          any action for infringement of any patent or
invention rights arising from KFI’s manufacture of the Products and SSE sale thereof, other than an action based on packaging or
labeling requested by SSE; or

(v)           any voluntary or governmental recall of the
Products, unless such recall results from SSE (or its
agent’s, contractor’s or customer’s) negligence or willful misconduct in the
handling, storage, preparation,
distribution or sale of the Products after delivery to SSE.

 

4

 

9.             Forecasts

 

Without
forecasts it would be difficult or impossible for KFI to procure and arrange
for appropriate raw ingredients, materials, and personnel to conduct and
supervise the manufacture on a timely basis. Therefore, throughout the term of
this Agreement, prior to the 15th of the middle month of each
calendar quarter (February, May, August and November), SSE
will provide KFI with a written forecast of Product(s) productions for the next
approaching quarter, which forecast will be used for scheduling purposes, to be
confirmed by production purchase orders.

 

10.          Production Purchase Orders

 

SSE will
place written production purchase orders with KFI for the Products no later
than five (5) weeks in front of anticipated production date. Production
purchase orders (PPO’s) revised downward or cancelled after one (1) week
following the submission of PPO are subject to line time penalties as well as
ingredients costs penalties. Revisions upwards after the first week of PPO
submission are subject to line time availability, ingredients and materials.
KFI will deliver the Products to SSE on a timely
basis in accordance with SSE PPO’s, FOB
the production facility. Location to be determined. SSE
will pick up the Products no later than ten (10) days from notification of
production completion and product release. Should SSE
fail to pick up the Products within the above indicated period, the product
will be shipped to local public storage for the account of SSE.

 

11.          Prices and Payments

 

KFI
will sell the Products to SSE at the
prices set forth in attachment “F”. The prices for the Products will be firm
from the effective date of this Agreement through December 31, 2005, however at
all times the prices will be subject to significant market changes on material
and ingredient costs. Thereafter, should there be an increase or decrease in
materials or labor costs, the prices will be adjusted by KFI as of January 1st
of each year or at such other time as a documented major market price change of
ingredients or materials, or Force Majeure, may occur. Such price changes shall
become effective thirty days (30) days following notification to SSE and submission by KFI of documentation of changes in
ingredients and/or materials costs, and shall continue to be effective for the
calendar year or balance of calendar year, as the case may be. Within fifteen
(15) days following such price change notification and submission of
documentation, should SSE believe
that the price changes are not justified, or deemed to render the manufacturing
of a Products not viable, it may dispute the changes by submitting written
objection with documentation. An attempt by both parties of this Agreement to
reach a compromise will ensue. Should compromise 

 

5

 

be
unreachable, SSE or KFI will have the option to
cancel this Agreement due to an insurmountable pricing event, see Section 14,
b., (i).

 

(a)   SSE will make 75% of pre-production invoice
payment to KFI for production PO quantities within three (3) business days of
receiving pre-production invoice, via wire transfer. Production preparation
with respect to a production PO will not be commenced until KFI has received
aforementioned payment from SSE.
Notification of actual production quantities to SSE
will be via faxed post production invoice, followed by a mailed hardcopy of
post production invoice. The remaining balance of 25% will be wire transferred
prior to release of Product for pick up. In the event the actual production
volume exceeds the amount set forth on the PPO, SSE
shall remit, via wire transfer, the differential amount as well as the 25%
balance, which will be shown on the post production invoice, before KFI will
release the product for pickup. In the event the actual production volume is
less than the amount set forth on the production PO, and in fact less than the
amount already paid for, then KFI will provide a credit to SSE
for the difference which shall be applied against SSE’s
current production invoice and/or a production invoice for immediately
subsequent PPO.

 

12.          Term

 

This
Agreement shall commence on and be effective from the date of the signing of
this Agreement, and shall continue for a term of two (2) years from completion
by KFI of first production of any SSE Products.
At the conclusion of the initial term of the Agreement, it will automatically
be renewed for one or more successive two (2) year periods. Should either party
wish to terminate this Agreement following the initial term for any reason
other than an “Event of Default”, as defined in section 14, written notice must
be given to the other party not less than 90 days prior to expiration of the
term. Should either party wish to terminate this Agreement following the any
successive term, written notice must be given to the other party at least 30
days in advance.

 

13.          Minimum Production Volume

 

1.             During the time that this Agreement is in
effect, SSE agrees to purchase on an annual
basis the following Products and other Products, as may be agreed to at a later
date and added to this Agreement, (defined herein as “Minimum Quantity”):

 

a.     an annual minimum of 100,000 cases of the
Products.

 

1.             During the time that this Agreement is in
effect, SSE agrees that the minimum production
runs for the Products of this Packing Agreement are as follows:

a.     Aseptic 330 mL Prisma products – 10,000 cases

b.     Order may be split in two flavors, 5,000 minimum each flavor

c.     A 15,000 case order may be split in, three
flavors, 5,000 minimum each flavor, this offer is for the first three (3)
productions only.

 

6

 

d.     The charge for splitting a production run is $1,500
for each additional flavor after the initial flavor.

 

Additional
products added to this Agreement at a later date may have different minimum
production runs and annual volumes from those indicated just above.

 

Accordingly,
the commencement of the twelve (12) month period for Products shall commence on
the date that the first shipment of Products is made by KFI to SSE or to an SSE client, as
the case may be. Should the Minimum Quantity of purchases of Products not be
met within any twelve-month period, KFI shall have the right to adjust the
pricing commensurate with the purchasing volume.

 

14.          Cancellation

 

1.             Should any of the circumstances set forth
below occur, defined herein collectively as “Events of Default”, either party
may cancel this Agreement. Such Events of Default include the following:

 

(i)            the failure of a party to perform its
obligations under this Agreement, which failure is not cured within 60 days
after written notice thereof from the other party or, if the failure cannot be
cured within 60 day, the failure to commence to such cure within 60 days.

 

(ii)           the party in default becomes insolvent, is
adjudicated a bankrupt, seeks relief under any bankruptcy law, has a receiver
appointed or makes an assignment for the benefit of its creditors;

 

(iii)          there has been an Act of God (an
unforeseeable incident beyond the control of the party who prevents performance
of the obligations herein) which continues for more than ninety (90) continuous
days.

 

If
there is an Event of Default, the party not in default may cancel this
Agreement by giving written notice of its election to the Defaulting Party and
such cancellation will become effective on the date of the default or such
later date as may be specified in such notice. Any such cancellation by the
Non-Defaulting Party will be without prejudice to any rights or remedies it may
have under this Agreement.

 

2.             Cancellation of all or a part of this
Agreement, without Event of Default, may take place in the event of:

 

(i)            an insurmountable pricing event, see Section
11 (a). Should this option be elected the parties will be required to split,
50%/50% the proposed price change for any purchase orders issued by SSE to KFI for delivery to SSE
subsequent to the effective date of the price change notification, and or,

 

7

 

(ii)           a significant reduction in market demand for the
Products or the Special Products which creates an inability for KFI to produce
or SSE to purchase and resell a volume of
Products which is deemed to be profitable by either of the parties of this
Agreement.

 

If
there is a cancellation without an Event of Default, the party canceling this
Agreement may do so by giving written notice of its election to the
non-canceling party of this Agreement and such cancellation will become
effective ninety (90) days from the date of receipt of written notice of cancellation
by the non-canceling party of this Agreement, unless different timing is agreed
to in writing by both parties of this Agreement.

15.          Notices

 

All
notices required or permitted under this Agreement shall be in writing and may
be delivered in person or be sent by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows, or by facsimile
transmission or similar means to the following numbers:

 

	
   

  	
  If to SSE, USA:

  	
  Sweet Success Enterprises,
  Inc.

  
	
   

  	
   

  	
  1250 NE Loop 410, Suite
  630

  San Antonio, TX 78209

  Attention: Bill Gallager, President

  Facsimile No.: (210) 824-3398

  E-mail Contact: jagdesk@sbcglobal.net

  
	
   

  	
   

  	
   

  
	
   

  	
  If to KFI:

  	
  Kiko Foods, Inc.

  
	
   

  	
   

  	
  2628 Lexington Avenue

  Kenner, LA 70062

  
	
   

  	
   

  	
  Attention: Max H. Burnell,
  President/CEO

  Facsimile No.: 504-467-2863

  E-mail: max@kikofoods.com

  

 

16.          Miscellaneous

 

(a)   This Agreement, including the attachments
hereto, constitutes the entire agreement of the parties and supersedes all
prior agreements and understandings, oral and written, between the parties
hereto with respect to the subject matter hereof.

 

(b)   Nothing contained in this Agreement is to be
construed as creating a joint venture or partnership between SSE and KFI. KFI will at all times be deemed to be an
independent contractor, solely responsible for the manner by and the form in
which it fulfills its obligations under this Agreement.

 

8

 

(c)  This Agreement may not be modified or
amended, nor may any provision be waived, unless such modification, amendment
or waiver is in writing, signed by duly authorized representatives of both SSE and KFI.

 

(d)  The Governing Law for this Agreement shall be
by the state of Louisiana and the parties agree to submit to the exclusive
jurisdiction of the Louisiana courts.

 

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

 

	
   

  	
  Sweet Success Enterprises,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Bill Gallager

  	
   

  
	
   

  	
  Bill Gallager, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kiko Foods, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Max H. Burnell

  	
   

  
	
   

  	
  Max H. Burnell,
  President/CEO

  

 

9

 

ATTACHMENT “A”

Product Definition

Sweet Success Enterprises, Inc. & Kiko
Foods, Inc. - Agreement

 

 

	
  Products

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Items:

  	
   

  	
  Low Acid Aseptic Meal
  Replacement Beverage under the Sweet Success Brand name, or others. The
  fluids are per previous Nestle formulations mimicked and altered to become
  “all natural”.

  
	
   

  	
   

  	
   

  
	
  Flavors:

  	
   

  	
  Dark Chocolate (Bavarian
  Style), Milk Chocolate (Mocha Chocolate), Vanilla.

  
	
   

  	
   

  	
   

  
	
  Packed:

  	
   

  	
  24/330 mL Tetra Prisma
  cartons packed 24 singles to the case.

  
	
   

  	
   

  	
   

  
	
  Case Gross Weight:

  	
   

  	
  Not actually known at this
  time. Estimated at about 14/15 lbs.

  
	
   

  	
   

  	
   

  
	
  Case Specifications:

  	
   

  	
  Not actually known at this
  time. Estimated at about 14/15 lbs.

  

 

 

ATTACHMENT “B”

Specific Materials

Sweet Success Enterprises, Inc. & Kiko Foods, Inc. - Agreement

 

	
  MATERIALS LIST:

  	
   

  	
  This materials list is intended to indicate the
  items supplied by KFI which are specific to or dramatically increased due to
  the SSE/KFI Production and Materials Agreement. This list may be added to
  with written approval of both parties of this Agreement.

  
	
   

  	
   

  	
   

  
	
  Kiko Foods, Inc.

  	
   

  	
  Materials: None

  
	
   

  	
   

  	
  Ingredients: Some product ingredients, list to
  follow at conclusion of formulations.

  

 

 

ATTACHMENT “C”

Quality
Standards & Specifications

Sweet Success Enterprises, Inc. & Kiko Foods, Inc. - Agreement

 

All products produced for
Sweet Success will be produced based on the formulas and specifications
submitted by Sweet Success to KFI and/or formulated by KFI. Copies of all approved
specifications for Products will be attached and are a part of Attachment “C”.
Any changes in the specifications will need to be approved by Sweet Success or
directed by Sweet Success to KFI, in writing, from an authorized person in the
employ of Sweet Success, and changes must be agreed to in writing by both
parties of this Agreement. Future Products added to this Agreement will have
approved formulations and specifications; copies of approved specifications
will be added to this Attachment “C” and will become a part of this Agreement.

 

KFI will set up a HAACP
standards program for each of the Products, and any Products added to this
Agreement in the future, for the purpose of assisting in the maintenance of
quality standards. The development of the individual items’ HAACP standards
will be determined after production has initially taken place. KFI will employ
its usual Quality Assurance and Quality Control procedures to maintain the
quality standards on the Sweet Success products. All productions done off
premise of the KFI facility located in Jefferson, LA will be directly
supervised by the KFI QS department.

 

Attached to this Attachment “C” will be the following
items and are a part of this Agreement:

Item Specifications

Item Ingredient Statements

Item Nutritional Panels

 

Items Listed:

Sweet Success All Natural Meal Replacement Products in All
Flavors

 

 

ATTACHMENT “D”

Materials
Supplied by Nectar Juice, LLC

Sweet Success Enterprises, Inc. & Kiko Foods, Inc. - Agreement

 

Sweet Success will supply the
following materials:

1. All
Tetra Laminate for the 330 mL Tetra Prisma package.

 

As required for the
Products, to be produced and/or contracted by KFI, for the duration of this
Agreement. Other production items may be added to this list by written approval
of both parties of this Agreement.

 

KFI responsibility as it
relates to Sweet Success’s materials:

 

It is the responsibility
of KFI to maintain a performance level of production, and general security that
best conserves the SSE material. Relative to overall loss of materials KFI
guarantees fluid and packaging materials at the listed levels:

 

	
   

  	
   

  	
  Fluid

  	
   

  	
  Packaging

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aseptic 330 mL

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum 10,000

  	
   

  	
  5

  	
  %

  	
  7% Guaranteed

  	
   

  
	
  Split runs of 5,000

  	
   

  	
  8

  	
  %

  	
  11% Estimated

  	
   

  

 

SSE responsibility as it
relates to SSE supplied materials:

 

It will be the
responsibility of SSE to get the appropriate materials, above, to location of
production in a timely manner. As KFI schedules its production KFI will require
the appropriate quantities of materials to be on hand in the production
facility, week prior to production schedule, in time to meet the production
deadlines. This will be necessary in order to meet SSE delivery deadlines of
finished goods. KFI will be scheduling SSE production based on the receipt of
the production purchase orders received in writing from SSE. KFI will notify
SSE of production dates within 72 hours of receipt of production purchase
orders. KFI will require that all materials be in the production facility no
more than fourteen (14) work days nor less than seven (7) work days prior to
the determined and notified production dates, unless otherwise agreed to in
writing by both parties. KFI will cooperate with SSE and will assist in the
ordering of the materials if requested to do so.

 

At the time of
termination, within thirty (30) days, of this Agreement, all unused SSE
materials as outlined above will be removed from the appropriate manufacturing
plant at the cost of SSE.

 

 

ATTACHMENT “E”

Insurance

Sweet Success Enterprises, Inc. & Kiko
Foods, Inc. - Agreement

 

 

Attached
to and a part of Attachment “E” are copies of the KFI insurance coverage
certificates with the appropriate reference to SSE.

 

The
first document will indicate:

The
name of the carrier and the agent and that Sweet Success is named as an
additional insured for,

 

1.             Vendors Broad Form Coverage

2.             General Aggregate, limit of $2,000,000

3.             Personal limit of $1,000,000

4.             Property limit of $50,000

5.             Excess Liability of $4,000,000

 

The second document will
indicate:

That KFI maintains coverage
for Recall and Food Contamination to a limit of $1,000,000.

 

Both insurance certificates
indicate proper notification timing (30 days) of coverage maintenance to SSE.

 

The above listed documents
are considered a part of this attachment and the SSE/KFI Agreement.

 

 

	
  ACORDTM CERTIFICATE OF LIABILITY
  INSURANCE

  	
  DATE (MM/DD/YYYY)

  03/01/2005

  
	
  Producer (985) 386-3511

  Jackson Vaughan Agency, Inc.

  121 West Pine Street

  P. O. Box 770

  	
  FAX (985) 386-3487

  	
   

  	
  THIS CERTIFICATE IS ISSUED AS A MATTER OF
  INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
  CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
  POLICIES BELOW.

  
	
  Ponchatoula, LA 70454

  	
   

  	
  INSURERS AFFORDING COVERAGE

  	
  NAIC #

  
	
   

  	
   

  	
   

  	
   

  
	
  INSURED

  	
   Kiko Foods Inc

  	
   

  	
  INSURER A:

  	
  HANOVER INSURANCE COMPANY

  	
   

  
	
   

  	
   2628 Lexington
  St

  	
   

  	
  INSURER B:

  	
  LEMIC

  	
   

  
	
   

  	
   Kenner, LA
  70062-0000

  	
   

  	
  INSURER C:

  	
   

  	
   

  
	
   

  	
   

  	
  INSURER D:

  	
   

  	
   

  
	
   

  	
   

  	
  INSURER E:

  	
   

  	
   

  
	
  COVERAGES

  	
   

  	
   

  	
   

  	
   

  
	
  THE POLICIES OF
  INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE
  POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION
  OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
  BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED
  HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
  POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

  
	
   

  
	
  INSR

  LTR

  	
  ADD’L

  INSRD

  	
  TYPE OF
  INSURANCE

  	
  POLICY
  NUMBER

  	
  POLICY EFFECTIVE

  DATE (MM/DD/YY)

  	
  POLICY EXPIRATION

  DATE (MM/DD/YY)

  	
  LIMITS

  
	
   

  	
   

  	
  GENERAL LIABILITY

  	
  ZHO 6266248 04

  	
  10/09/2004

  	
  10/09/2005

  	
  EACH OCCURRENCE

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
  ý COMMERCIAL GENERAL LIABILITY

  oo CLAIMS MADE ý OCCUR

  	
   

  	
   

  	
   

  	
  DAMAGE TO RENTED

  PREMISES (Ea occurence)

  	
  $

  	
  50,000

  
	
  A

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  MED EXP (Any one person)

  	
  $

  	
  5,000

  
	
   

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
  PERSONAL & ADV INJURY

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
  GEN’L AGGREGATE LIMIT APPLIES PER:

  	
   

  	
   

  	
   

  	
  GENERAL AGGREGATE

  	
  $

  	
  2,000,000

  
	
   

  	
   

  	
  o POLICY o PROJECT o LOC

  	
   

  	
   

  	
   

  	
  PRODUCTS - COMP/OP AGG

  	
  $

  	
  2,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AUTOMOBILE LIABILITY

  	
   

  	
   

  	
   

  	
  COMBINED SINGLE LIMIT 

  	
   

  
	
   

  	
   

  	
  o ANY AUTO

  	
   

  	
   

  	
   

  	
  (Ea accident)

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o ALL OWNED AUTOS

  	
   

  	
   

  	
   

  	
  BODILY INJURY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Per person)

  	
  $

  
	
   

  	
   

  	
  o SCHEDULED AUTOS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BODILY INJURY

  	
   

  
	
   

  	
   

  	
  o HIRED AUTOS

  	
   

  	
   

  	
   

  	
  (Per accident)

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o NON-OWNED AUTOS

  	
   

  	
   

  	
   

  	
  PROPERTY DAMAGE 

  	
   

  
	
   

  	
   

  	
  o 

  	
   

  	
   

  	
   

  	
  (Per accident)

  	
  $

  
	
   

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GARAGE LIABILITY

  	
   

  	
   

  	
   

  	
  AUTO ONLY - EA ACCIDENT

  	
  $

  
	
   

  	
   

  	
  o ANY AUTO

  	
   

  	
   

  	
   

  	
  OTHER THAN 

  	
  EA ACC

  	
   

  	
  $

  
	
   

  	
   

  	
  o 

  	
   

  	
   

  	
   

  	
  AUTO ONLY:

  	
  AGG

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXCESS/UMBRELLA LIABILITY

  	
  UHO6636508-03

  	
  10/09/2004

  	
  10/09/2005

  	
  EACH OCCURRENCE

  	
  $

  	
  4,000,000

  
	
   

  	
   

  	
  ý OCCUR

  	
  o CLAIMS MADE

  	
   

  	
   

  	
   

  	
  AGGREGATE

  	
  $

  
	
  A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
  o DEDUCTIBLE

  	
   

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
  ý RETENTION

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY

  	
  777-08966-04

  	
  12/28/2004

  	
  12/28/2005

  	
  WC STATUTORY

  LIMITS

  	
  OTHER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E.L. EACH ACCIDENT

  	
  $

  	
  1,000,000

  
	
  B

  	
  ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER
  EXCLUDED?

  	
   

  	
   

  	
   

  	
  E.L. DISEASE - EA EMPLOYEE

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  E.L. DISEASE - POLICY LIMIT

  	
  $

  	
  1,000,000

  
	
   

  	
  If yes, describe under

  SPECIAL PROVISIONS below

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OTHER

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS
  ADDED BY ENDORSEMENT/SPECIAL PROVISIONS

  
	
   

  
	
  ************REVISED********************

  
																					

 

	
  CERTIFICATE HOLDER

  	
  CANCELLATION

  
	
   

  	
   

  
	
  Sweet Success
  Enterprises, Inc.

  1250 NE Loop 410, Suite 630

  San Antonio, TX 78209

  	
  SHOULD ANY OF THE ABOVE
  DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
  ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE
  CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL
  IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
  REPRESENTATIVES.

  
	
   

  
	
   

  	
  AUTHORIZED REPRESENTATIVE

  
	
   

  	
   /s/ 

  	
   

  

 

	
  ACORD 25 (2001/08)

  	
   

  	
  © ACORD CORPORATION 1988

  

 

 

ATTACHMENT “F”

Pricing, Payment Terms,
Warehousing, & Receiving

Sweet Success Enterprises, Inc. & Kiko Foods, Inc. - Agreement

 

Pricing:

 

Included
with this Attachment “F” and a part of it, is the official quotation on the
product to be produced.
Requested changes in pricing will be submitted by KFI and when approved by SSE,
will be attached to and become a part of Attachment “F” and will become a part
of this Agreement.

 

Attached Find Price List(s)
and documents as Follow:

 

Products Price List:

 

A price list may be attached
or the pricing may be outlined in this paragraph.

 

Warehousing:

 

SSE Attached warehousing
policy and costs.

 

Receiving:

 

SSE Attached receiving
policy.

 

Payments:

 

All payments to be made via wire transfer within the Agreement terms, SSE Section 11,b:

 

Payments
to:

Kiko Foods, Inc.

 

Remittance
Address: NEED WIRING INFO HERE

Kiko
Foods, Inc.

PO Box
61051

New
Orleans, LA 70151-1051

 

Remittance information is
subject to change by KFI upon written two week (2) notice to SSE.

 

 

Sweet Success
Enterprises, Inc.

Quotation [ILLEGIBLE]
Meal Replacement Production

 

Date of Quotation                03-Mar-05

 

	
  KFI FEE

  	
   

  	
  Per Case

  	
   

  	
  KFI

  	
   

  	
  Tetra

  	
   

  	
  Total

  	
   

  	
  Unit

  	
   

  	
  NO SPLIT

  	
   

  	
  Unit

  	
   

  
	
  $

  	
  0.50*

  	
   

  	
  0 / 99,000

  	
   

  	
  $

  	
  13.58

  	
   

  	
  $

  	
  2.40

  	
   

  	
  $

  	
  15.98

  	
   

  	
  $

  	
  0.666

  	
   

  	
  $

  	
  15.83

  	
   

  	
  $

  	
  0.659

  	
   

  
	
  $

  	
  0.40*

  	
   

  	
  100,000 Annual

  	
   

  	
  $

  	
  13.48

  	
   

  	
  $

  	
  2.40

  	
   

  	
  15.88

  	
   

  	
  $

  	
  0.662

  	
   

  	
  $

  	
  15.73

  	
   

  	
  $

  	
  0.655

  	
   

  
	
  $

  	
  0.35*

  	
   

  	
  150,000 Annual

  	
   

  	
  $

  	
  13.43

  	
   

  	
  $

  	
  2.40

  	
   

  	
  $

  	
  15.83

  	
   

  	
  $

  	
  0.660

  	
   

  	
  $

  	
  15.68

  	
   

  	
  $

  	
  0.653

  	
   

  
	
  $

  	
  0.30*

  	
   

  	
  200,000 Annual

  	
   

  	
  $

  	
  13.38

  	
   

  	
  $

  	
  2.40

  	
   

  	
  $

  	
  15.78

  	
   

  	
  $

  	
  0.658

  	
   

  	
  $

  	
  15.63

  	
   

  	
  $

  	
  0.651

  	
   

  
	
  Fee included in pricing.

  	
   

  	
  Minimum Order: 

  	
   

  	
  10,000

  	
   

  	
  Split
  Fee Included in Pricing:

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Minimum Production Run Size:

  	
   

  	
  10,000

  	
   

  	
  Cases

  	
   

  	
  Lead
  Time, weeks, for Production:

  	
   

  	
  5 Weeks

  	
   

  
	
  Minimum Split Production Run:

  	
   

  	
  5,000

  	
   

  	
  Cases

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Terms of Payment: 

  	
  Wire Transfer CIA*:

  	
  75% of the Full Billing

  
	
   

  	
  Wire Transfer:

  	
  25% Balance on Release

  
	
   

  	
  * Initial wire transfer to be submitted with PO.

  
	
  Process of production will begin on receipt of
  initial wire transfer.

  

 

Timing Includes:
Raw materials must be in production facility 1 week in advance of Prod.
Quarantine following production is 10 days. 2 weeks to ship raw materials.  1/2 week for actual production run.

 

Packaging Agreement and Credit Application is required
to do business.

 

Additional information
relative to doing business is located in the packaging agreement

 

Quotation Submitted by

 

Max H. Burnell                                                                 KIKO
FOODS INC.

 

Explanation of
KIKO Foods Fee:  The Kiko Fee reduction
is paid on an annual basis as targets are met During any given 12 month period
based on anniversary of 1st production, KFI will rebate to customer $0.10 per
case or $10,000 when the 100,000 case level in production is met.  At that point and for the balance of the year
the billing price will be adjusted to the 100,000 case tier level.  If the 150,000 case tier level is met during
the same year an additional $0.05 per case will be rebated to the customer and
the billing price will again be adjusted downwards appropriately.  And so on for the 200,000+ case tier.

 

 

KIKO FOODS,
INC.

CO-PACK

CUSTOMER WAREHOUSE POLICY

 

Customer Owned Raw Materials

 

Kiko Foods, Inc. (KFI) will handle and store necessary amounts of
customer raw materials. All customer raw materials required for a production
must be received by KFI not earlier than 15 working days or later than 5
working days prior to scheduled production date. Any customer raw material not
received within the prescribed period above could cause the rescheduling of the
production based on line availability. All inbound shipments of customer raw
materials must meet all the criteria and be handled in compliance with Kiko Foods, Inc. Receiving
Policy SOP 25. In the event a contract is terminated either by a customer
or KFI, the customer will have thirty (30) days to remove ail customer owned
raw materials. The removal will be solely at the customer’s own expense.
Customer raw materials not removed will be disposed of by KFI and the customer
will be responsible for any and all charges incurred.

 

Customer Owned Finished Goods

 

KFI
will handle and store customer owned finished goods (finished goods invoiced to
customer upon completion of production) for a period of thirty (30) days from
the completion date of a product run at no additional charge. This thirty (30)
day period includes any time required by the Quality Standard Department
including quarantine. Following the initial thirty (30) day period the customer
will be invoiced according to the following schedule:

1)     On
the 31st day of storage – KFI will invoice the customer in advance
for 31 through 60 days of storage at a rate of $0.09 per case, not proratable.

2)     On
the 61st day of storage – KFI will invoice the customer in advance
for 61 through 90 days of storage at a rate of $0.14 per case.

3)     On
the 91st day of storage - KFI reserves the right to move any or all
of the customer owned finished goods at any time into an alternate storage
location at the customer’s expense or continue invoicing the customer at the
rate of $0.14 per case in advance for each 30 day period.

 

Customer
Inventory Insurance Coverage

 

KFI shall not be liable for any loss or injury to goods stored however
caused unless such loss or injury resulted from the failure by KFI to exercise
such care in regard to them as a reasonably careful man would exercise under
like circumstances. KFI is not liable for damages, which could not have been
avoided by the exercise of such care. Goods are not insured by KFI against loss
or injury however caused.

 

KFI declares that damages are limited to 100% of the billing price for
the warehoused finished goods to the KFI customer and 100% of the value of the
cost of any customer owned raw materials.

 

 

KIKO FOODS, INC.

RECEIVING POLICY

SOP 25

 

Kiko Foods, Inc. (KFI), maintains a
perpetual inventory. In order to insure control and accuracy, it is mandatory
that the receiving policy and procedures be followed for all items received by
KFI, as outlined below.

 

This procedure will include any and all
supplies received by Kiko Foods, Inc. and not limited to supplies
purchased directly by Kiko Foods, Inc.

 

Kiko
Foods Receiving Program 

 

Receiving
Appointment

 

Receiving hours are from 7:00 a.m. till
12:00 p.m. Monday through Friday

 

All deliveries require an appointment made
with the Warehouse Manager at least 72 hours in advance of delivery. KFI will
make every attempt to accommodate shipments with an appointment made with less
than the required lead-time, on a work in basis, but will not be responsible
for demurrage charges. No deliveries
will be received without an appointment. Carriers must supply KFI receiving
with all necessary information, Shipper, Purchase Order # and Case Count,

 

Purchase Orders

 

Purchase Orders will be generated by the KFI
administrative office for all supplies being shipped to KFI, including supplies
owned by KFI and/or customer supplies. Customers will be responsible for
notifying KFI of all inbound supplies and will be responsible for any and all
demurrage or layover charges incurred due to lack of notification.

 

All supplies received by KFI will require a
KFI Purchase Order on file with the Warehouse Manager. No
receiving appointment will be made without a KFI Purchase Order.

 

Receiving Supplies

 

All supplies received by KFI must meet all
specifications as outlined when purchased by KFI or KFl’s customer. All trucks
and products will be checked to insure all HACCP requirements are met.

 

1)     First a visual inspection of the trailer is
made. The trailer must be clean and free of trash, debris and traces of
insects. KFI reserves the right to refuse to unload any truck that does not
meet our cleanliness standards.

2)     As each pallet is unloaded a visual
inspection for integrity of the packaging and an evaluation is made for any
damaged supplies. All damaged supplies will be refused and noted on the Bill of
Lading.

3)     The Quality Standards department will verify
and insure that all supplies meet or exceed any and all specifications outlined
by KFI and/or the customer.

 

 

4)    When
all testing is completed and the supplies has been deemed to meet all standards
it may be received and placed into inventory by the Warehouse Manager.

 

Quality
Standards Inspection of Supplies

 

The Quality Standards Department will verify and insure that all
supplies meet all requirements outlined by KF1 and/or the customer.

 

Juice/Puree
Concentrated Supplies

 

Juices and Puree concentrates require specific tests depending on the
specification and requirements of KFI or its customer.

 

Lot
Tracked Supplies

 

All lot-tracked supplies upon receipt will be issued a lot number that
will identify the supplies by the date and time of its arrival. The Warehouse
Manager in accordance with the below requirements will issue the lot number.
Lot tracking will be required on company-specified supplies, as well as all
Kosher, Organic, and Non Company owned supplies.

 

Lot Numbers will be assigned upon arrival of supplies in the following
manner:

 

08060010

MMDDYY##

 

MM = Two digit number for Month; August =
08

DD = Two digit number tor Day; 06

YY = Two digit number for Year; 00

## = This two-digit number will indicate the
hour in which supplies are received, or in the case of multiple supplies
received the same hour or on the same truck. This number will be assigned in
numeric order beginning with 25.

 

Lot number will be stamped on sticker and attached to the incoming
supplies for easy identification. Organic Products will be identified using the
green day glow organic sticker with the lot number stamped on each one. Kosher
Products will be identified using the yellow day glow Kosher sticker with the
lot number stamped on each one.

 

 

KFI
INCOMING INGREDIENT EXAMINATION RECORD

 

	
  Date

  	
   

  	
  #of

  Car/Carrier

  	
   

  	
  Product

  	
   

  	
  Was Car &

  Product Under

  Fumigation?

  	
   

  	
  Type of

  Fumigation

  Used

  	
   

  	
  # of

  Broken

  Bags

  	
   

  	
  # of

  Insects in

  Carrier

  	
   

  	
  Rodent

  Excreta

  Found

  	
   

  	
  Temp. of

  Carrier

  	
   

  	
  Temp. of

  Product

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

ATTACHMENT “G”

Sample
Run, Research & Development Policy & Pricing

Sweet Success Enterprises, Inc. & Kiko Foods, Inc.
- Agreement

 

I.              TEST
PRODUCT RUNS

 

In the event that a perspective or established customer requests Kiko
Foods, Inc, (KFI) to produce a test run prior to a production. KFI will do
everything within reason to satisfy the customer request taking into account
scheduling and production commitments.

 

Due to inherent
restrictions in the processing procedure KFI has established the duration of a
test run to be eight hours and priced accordingly. KFI will not be held
responsible for any losses of materials or fluids incurred in the production of
a test run.

The minimum test
run batch will be 300 gallons to a maximum of 500 gallons.

The maximum flavor
varieties will depend strictly on the flavor compatibility and CTP
requirements.

The standard
pricing established for test runs that meet the requirements above is as
follows:

 

	
  Test Run Fee

  	
   

  	
  $

  	
  5000.00

  	
   

  
	
  (This is
  basically an 8 hour line lease)

  	
   

  	
   

  	
   

  
	
  Laminate per
  finished Case

  	
   

  	
  $

  	
  3.36

  	
   

  
	
  Misc. packaging
  per Case

  	
   

  	
  $

  	
  0.32

  	
   

  

 

Any ingredients
used in the production of the batch supplied by KFI will be invoiced to the
customer at quoted pricing at the time of the sample production..

 

The finished test
products are the property of the customer and their responsibility to remove
from the KFI facility and use or dispose of promptly. Shipping of the samples
is at the cost of the customer.

 

Terms –         Test Run
Fee in advance of production.

Packaging materials and fluid billed upon completion of test run.

 

NOTE:

The above policy is KFl’s standard
policy for the production of aseptic samples. For current customers, as is SSE, KFI reduces the
Test Run Fee portion of the policy by 50% and waves the advance payment.

 

II.            Research
and Development

 

Attached

 

 

RESEARCH AND DEVELOPMENT

 

Kiko Foods Inc. (KFI), is in a unique
position in our industry to have on premise a fully equipped Research and
Development Department staffed by qualified personnel. KFI, offers this amenity
to our customers to aid in designing new products or line extensions to an
existing family of products. KFI, believes that in order for our customers to
be a success we need to make an investment and our R&D department is our
investment. Making sure a sample meets our customer’s requirements and needs is
a tedious and time-consuming process. The end result in this process is KFI
producing new quality products for our customers. The R&D department is
available o all of our customers on an availability basis.

 

New Product Development

 

The standard pricing for R&D work is
outlined in the schedule:

 

	
  R&D Deposit/Fee

  	
   

  	
  $1000.00

  
	
  Bench Top Samples

  	
   

  	
  No Charge

  
	
  Packaging Samples

  	
   

  	
  No Charge

  
	
  Shipping Samples as
  required

  	
   

  	
  Customers Expense

  

 

All
samples supplied will be bench top samples and not necessarily packaged in the
container desired for the finished product. Shipping of the bench top samples
will be at the customer’s expense and charged via a customer supplied carrier
account number.

 

The R&D deposit will be applied against
the first production run of the product designed.

 

Once a customer commits the product to
production the formula of the product designed will be proprietary to the
specific customer, unless otherwise specified. All formulas will be the
property of Kiko Foods, Inc.

 

Terms – R&D fee in advance of
development.Exhibit 10.4

 

PROMOTION AGREEMENT

 

This Promotion Agreement (this “Agreement”)
is entered into and made effective as of July 15, 2005, by and among SWEET
SUCCESS Enterprises, Inc., a Nevada corporation (“SWEET SUCCESS”),
JMBP, Inc. (“JMBP”), a California corporation, and Mark Burnett (“Burnett”
and, together with SWEET SUCCESS and JMBP, the “Parties”).  In consideration of the mutual agreements set
forth herein and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

	
  1.

  	
  Term of Agreement:

   

   

  	
  Unless otherwise specifically stated with respect to any covenant or
  agreement set forth herein, this Agreement, and the covenants and obligations
  set forth herein, shall be for a three (3) year term beginning on the
  date hereof (the “Term”).

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Product Placements:

   

   

  	
  (a)  JMBP and
  Burnett will use their respective commercially reasonable good-faith efforts,
  on an ongoing basis and from time to time during the Term, to identify
  opportunities to cause nutritional beverages under SWEET SUCCESS’ brand (as
  so branded, the “SWEET SUCCESS Products”) to
  be placed and/or otherwise used on the set or other shooting location in
  connection with television productions involving JMBP, Burnett or their
  affiliates (each, a “Product Placement”).

   

  (b)  SWEET SUCCESS will reasonably cooperate with JMBP’s and
  Burnett’s efforts to identify and execute Product Placement opportunities
  under this Section 2.  No Product
  Placement shall occur unless a separate Product Placement agreement is
  entered into by the Parties.  The
  Parties shall use commercially reasonable good-faith efforts to reach
  agreement with respect to each Product Placement provided that the related
  Product Placement agreement shall be on terms in accordance Sections 7 and
  13.

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Product Integrations:

   

   

  	
  (a)  JMBP and Burnett will use their respective commercially
  reasonable good-faith efforts to discover, create and execute a product
  integration whereby a SWEET SUCCESS Product or SWEET SUCCESS Products will be
  integrated as a part of the central premise of an episode of the “Apprentice”
  or another Prime-Time Network Show (as defined below) in which JMBP or
  Burnett is involved (a “Product Integration”).  In addition, JMBP and Burnett will consider
  in good faith such other Product Integration ideas as SWEET SUCCESS may
  propose from time to time during the Term. 
  “Prime-Time Network Show” shall mean a primetime television
  production on any of the ABC, NBC, CBS and FOX television networks.

   

  (b)  In connection with each Product Integration: 

  

 

 

	
   

  	
   

  	
  •  the
  specific SWEET SUCCESS Products to be used in connection therewith shall be
  determined mutually by the Parties;

   

  •  the
  Parties shall mutually select the Prime-Time Network Show in connection
  therewith (with the “Apprentice” being acceptable to all Parties); and

   

  •  SWEET
  SUCCESS will select a spokesperson or representative (subject to approval by
  JMBP or Burnett in their sole and absolute discretion) available to appear
  (at no additional cost to JMBP or Burnett) in connection therewith.

   

  (c)  SWEET SUCCESS will reasonably cooperate with JMBP’s and
  Burnett’s efforts to identify and execute Product Integration opportunities
  under this Section 3.  No Product
  Integration shall occur unless a separate Product Integration agreement is
  entered into by the Parties.  The
  Parties shall use commercially reasonable good-faith efforts to reach
  agreement with respect to each such Product Integration provided that the
  related Product Integration agreement shall be on terms in accordance
  Sections 7 and 13.

   

  (d)  In exchange for each Product Integration, SWEET SUCCESS
  will pay JMBP five percent (5%) of the total Net Sales of the SWEET
  SUCCESS Products included in the Product Integration and any other SWEET
  SUCCESS Products appearing or depicted in the program featuring the Product
  Integration during the Royalty Period (each, a “PI Royalty”).

   

  (e)  For purposes of paragraph (d) above:

   

  “Existing Products” shall mean SWEET SUCCESS Products which as
  of the date which is 60 days prior to the time of shooting of the subject
  Product Integration or Product Placement, have been sold by SWEET SUCCESS to
  the mass public on a national retail basis. 
  By way of explanation, “Existing Products” would not include SWEET
  SUCCESS Products which have been previously marketed and/or sold on a limited
  or regional basis.

   

  “Net Sales” shall mean the aggregate revenues realized by
  SWEET SUCCESS as a result of the sales in question, less deductions for trade
  discounts, shipping charges, returns and allowances actually granted; provided, however, that the foregoing deductions shall not
  collectively exceed ten percent (10%) of such aggregate revenues.  Net Sales shall be determined without
  deducting income taxes, franchise taxes, uncollectible accounts or financial
  discounts.  Except

  

 

2

 

	
   

  	
   

  	
  as specifically referenced above, no costs incurred in the
  manufacture, sale, distribution, advertising or exploitation of such products
  shall be deducted in the computation of Net Sales.

   

  “New Products” shall mean SWEET SUCCESS Products other than
  Existing Products.

   

  “Royalty Period” shall mean the period beginning on the date
  of the initial airing of the Product Integration or Product Placement in
  question and ending (i) with respect to New Products, on the date which
  is one year after such airing date, or (ii) with respect to Existing
  Products, on the date which is six months after such airing date,

  

 

3

 

	
  4.

  	
  Licenses In Connection with Promotional Activities:

   

   

  	
  (a)  In connection with each Product Placement and Product
  Integration, JMBP and SWEET SUCCESS shall use their respective commercially
  reasonable good-faith efforts to enter into a license agreement whereby JMBP
  will grant SWEET SUCCESS worldwide, non-exclusive, non-transferable licenses
  (each, a “License”) to use various trademarks and phrases relating to
  JMBP productions associated with any Product Placement or Product
  Integration, each such license to permit uses in connection with the sale,
  marketing and promotion of certain SWEET SUCCESS Products to be mutually
  agreed upon by JMBP and SWEET SUCCESS, as follows: (i) on packaging
  (whether on the box or on materials provided therein) of SWEET SUCCESS
  Products; and (ii) in advertising (whether print, billboard, radio,
  television, theatrical, website-based or otherwise) relating to SWEET SUCCESS
  Products.  Any such license(s) will be
  for a term not exceeding the Royalty Period with respect to the related
  Product Integration or Product Placement. 
  Any advertising on television or radio shall be subject to the prior
  approval of JMBP’s distributors and the networks exhibiting the productions
  related to the applicable licensed phrases or trademarks, which approval JMBP
  will request in good faith.  The
  licenses will bear no royalties for uses in advertising which displays or
  depicts the SWEET SUCCESS brand or any related brand but does not display,
  depict or advertise a particular SWEET SUCCESS Product, but will bear a
  royalty of two and one-half percent (2.5%) of the Net Sales of each unit of
  SWEET SUCCESS Product sold with packaging containing such licensed phrases
  (the “License Royalty”);
  provided, however, that no License
  Royalty will be paid with respect to any unit for which a PI Royalty has been
  or is to be paid.  With respect
  to any license for use in advertisements displaying, depicting or advertising
  particular SWEET SUCCESS Products, the Parties will use their respective
  commercially reasonable good-faith efforts to negotiate license arrangements
  that provide benefits commensurate with the two and one-half percent (2.5%)
  royalty arrangement described above, provided, however,
  that in no event shall additional royalties be payable with respect to any
  unit of SWEET SUCCESS Product for which either a PI Royalty or a License
  Royalty has been or is to be paid.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  The specific phrases to be included in each license shall
  be mutually agreed upon by JMBP and SWEET SUCCESS as set forth in the
  applicable License agreement.  JMBP
  shall have approval rights over any proposed use by SWEET SUCCESS of any
  trademarks and phrases and the right to control any such use.  Any such License agreement shall be on
  terms in accordance with Sections 7 and 13.

  

 

4

 

	
  5.

  	
  Consulting Services.

  	
  (a)  Burnett will act as an advisor and consultant to SWEET
  SUCCESS whereby Burnett will, on an ongoing basis from time to time
  throughout the Term and subject to Burnett’s other commitments and
  engagements, consult with and advise SWEET SUCCESS with respect to Product
  Placement and Product Integration matters and recommend SWEET SUCCESS and its
  line of Products as reasonable opportunities arise from time to time.

   

  (b)  Burnett shall not, and is not authorized to, negotiate the
  terms and conditions of any agreements with any third parties on SWEET
  SUCCESS’ behalf, including, without limitation, with respect to the license
  of any intellectual property or the payment for materials, products or
  services.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Non-Exclusive.

  	
  This Agreement shall not restrict JMBP or Burnett from providing
  services or advice to other parties, including competitors or potential
  competitors to SWEET SUCCESS.  

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Creative Control;

  Access Rights.

   

   

  	
  JMBP and Burnett will retain full creative control over all
  productions involving each Product Placement and Product Integration,
  including control over all aspects of the Product Placement and Product
  Integration, provided, however, that SWEET
  SUCCESS will have the right to have a designee reasonably acceptable to JMBP
  or Burnett at or around the shooting location of each production relating to
  any Product Placement or Product Integration. 
  To the extent practicable, JMBP will provide reasonable advance notice
  to SWEET SUCCESS of the dates, times and locations of all such productions.

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Indemnification; Remedies.

  	
  JMBP shall indemnify and hold harmless, and shall defend and protect,
  SWEET SUCCESS and its stockholders, officers, directors, employees, agents
  and representatives (collectively, the “SWEET SUCCESS Indemnified Parties”)
  from and against any and all actions, causes of action, suits, claims,
  losses, costs, penalties, fees, liabilities and damages and expenses
  (regardless of whether such indemnified party is a party to the action for
  which the indemnification hereunder applies), including reasonable attorneys’
  fees and disbursements (the “Indemnified Losses”) incurred by any
  SWEET SUCCESS Indemnified Party as a result of, or arising out of, or
  relating to any action, claim, cause of action or suit by any third party
  alleging that such third party is entitled to (a) any of the
  consideration provided or to be provided to JMBP or Burnett hereunder or (b) any
  other payment or benefit in connection with this Agreement or any of the transactions
  contemplated hereby based on any commitment or obligation by JMBP or Burnett
  to such third-party.

   

  SWEET SUCCESS shall indemnify and hold harmless, and shall

  

 

5

 

	
   

  	
   

  	
  defend and protect, JMBP and Burnett and, as applicable, their
  stockholders, officers, directors, employees, agents and representatives
  (collectively, the “JMBP/Burnett Indemnified Parties”) from and
  against any and all Indemnified Losses incurred by any JMBP/Burnett
  Indemnified Party as a result of, or arising out of, or relating to any
  action, claim, cause of action or suit by any third party alleging that such
  third party is entitled to (a) any of the consideration provided or to
  be provided to SWEET SUCCESS hereunder or (b) any other payment or
  benefit in connection with this Agreement or any of the transactions
  contemplated hereby based on any commitment or obligation by SWEET SUCCESS to
  such third-party.

   

  To the extent that the foregoing undertakings by any indemnifying
  party may be unenforceable for any reason, the indemnifying party shall make
  the maximum contribution to the payment and satisfaction of each of the
  Indemnified Losses which is permissible under applicable law.

   

  SWEET SUCCESS waives any right to injunctive relief as a remedy for
  any breach of this Agreement.

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Audit Rights

  	
  (a)  All payments in connection with any amounts owing hereunder
  will be made within thirty (30) days after the end of each calendar quarter
  during which such payment obligations are accrued.

   

  (b)  SWEET SUCCESS will maintain accurate and complete books and
  records in accordance with generally accepted accounting principles as
  necessary to determine the amounts payable from time to time.  For purposes of verifying the amounts owed
  to JMBP or Burnett hereunder, JMBP or its designee will have the right to
  examine and audit SWEET SUCCESS’ books and records, at JMBP’s expense, upon
  reasonable advance written notice to SWEET SUCCESS; provided,
  however, that SWEET SUCCESS shall be required to pay for the
  reasonable out-of-pocket costs of the audit if it is agreed by JMBP and SWEET
  SUCCESS (or finally determined by an arbitrator or court of competent
  jurisdiction) that the amounts owing for any period are ten percent (10%) or
  more lower than they should have been.

  
	
   

  	
   

  	
   

  
	
  10.

  	
  SWEET SUCCESS

  Stock Warrants:

  	
  (a) As of
  the date hereof, SWEET SUCCESS shall issue to Burnett (i) warrants to
  purchase one million two hundred and fifty thousand (1,250,000) shares of
  SWEET SUCCESS common stock with an exercise price of Seventy Cents ($0.70)
  per share (“A Warrants”) and (ii) warrants to purchase seven
  hundred fifty thousand (750,000) shares of SWEET SUCCESS common stock with an
  exercise price of

  

 

6

 

	
   

  	
   

  	
  One Dollar and Twenty-Five Cents ($1.25) per share
  (“B Warrants”).

   

  The A Warrants each have a
  term of five (5) years and the B Warrants shall each have a term of five
  (5) years, and shall have “net exercise” provisions whereby the warrants
  (or a portion thereof) can be exercised by a surrender of a portion of the
  net fair market value of the warrants in payment of the exercise price.  The Warrants shall vest as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vesting Date

  	
   

  	
  Warrants Vested

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As of the date hereof 

  	
   

  	
  850,000 A Warrants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As of the date on which
  the first Product Placement is initially aired

  	
   

  	
  200,000 A Warrants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As of the date on which
  the first Product Integration is initially aired

  	
   

  	
  200,000 A Warrants

  550,000 B Warrants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As of the date on which
  the second Product Placement or Product Integration is initially aired

  	
   

  	
  200,000 B Warrants

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) During the first nine months following the
  date hereof, SWEET SUCCESS will not consummate an Issuance Transaction in
  excess of $10 million.

   

  (c) For purposes of this Agreement, Issuance
  Transaction” shall mean any issuance of any shares of SWEET SUCCESS
  common stock or SWEET SUCCESS Equity Securities, including any PIPES or
  similar transaction, but excluding (1) issuances to directors, officers,
  employees or consultants under a Board approved equity incentive plan
  existing as of, and within the share limitations of such plans as of, the
  date hereof, (2) issuance of SWEET SUCCESS common stock upon conversion
  or exercise of Equity Securities outstanding as of the date hereof, (3) issuance
  of securities in connection with an underwritten, widely distributed,
  SEC-registered public offering by SWEET SUCCESS of SWEET SUCCESS common stock
  for cash, (4) issuances to consultants and services providers at arms
  length or

  

 

7

 

	
   

  	
   

  	
  (5) issuances in connection with acquisitions
  of assets at arms length.

   

  (d) The “A Warrants” issuable under this
  Agreement shall have a term of five (5) years from the date of grant,
  and shall be issued pursuant to an warrant agreement to be agreed to by the
  parties.  The “B Warrants shall carry a
  term of five (5) years.  Burnett
  shall have the benefit of a registration rights agreement with standard VC
  terms which shall provide for 3 “demand” registrations (of which 2 could be
  shelf registrations), unlimited “piggyback” registrations and with customary
  expense provisions; provided, however, in connection with any Issuance
  Transaction which the Company proposes to consummate in the next 9 months,
  Burnett shall reasonably negotiate such registration provisions with the
  underwriters thereof.  In addition,
  Burnett shall have the benefit of an Investors’ Rights Agreement which will
  provide Burnett with standard information rights, board observation rights, “tag-along”
  rights, and a commitment that all related-party transactions will be at
  arms-length, and Burnett will have the right to audit / review such
  transactions (and, when more than $1 million is involved, Burnett will have
  the right to require SWEET SUCCESS to obtain an appraisal / fairness opinion
  supporting such transaction).

   

  (e)                                  Up
  to all of the Warrants (whether or not then vested as described above) shall
  be redeemable by SWEET SUCCESS, in its sole discretion, at a price of $0.001
  per share at any time during any Redemption Period (as defined below),
  provided that (i) SWEET SUCCESS has given written notice to Burnett of
  the date of, and number of Warrants subject to, such redemption (a “Redemption
  Notice”) no later than 11:59 p.m., Pacific Time, on the fifth (5th) Trading
  Day (as defined below) after the Redemption Conditions (as defined below) in
  respect of such redemption have been met and (ii) the Ability-to-Sell
  Conditions (as defined below) are satisfied on each Trading Day during the
  period beginning on the Trading Day on which the Redemption Notice is deemed
  received and ending on the thirtieth (30th) Trading Day after the Redemption
  Notice is deemed received.  Burnett
  shall be entitled to exercise the Warrants subject to the Redemption Notice,
  regardless of whether such Warrants have otherwise vested pursuant to clause (a) above,
  following his receipt of the Redemption Notice.  “Ability-to-Sell Conditions” means:  (i) a registration statement shall be
  effective with respect to all of the shares issuable upon exercise of the
  Warrants and SWEET SUCCESS shall not have informed Burnett that the
  prospectus contained therein may not be used; (ii) such registration
  statement shall not be subject to a stop order by the Securities and Exchange
  Commission; (iii) the common stock of SWEET SUCCESS shall be registered
  pursuant to

  

 

8

 

	
   

  	
   

  	
  Section 12 of the Securities Exchange Act of
  1934 and listed on the NASDAQ National Market or Small Caps Market, AMEX or
  NYSE and (iv) such common stock shall not be suspended from trading on
  any of, and shall be listed or quoted for trading (and authorized) on the
  principal United States securities exchange or trading market where such
  common stock is then listed or traded.

   

  (f)                                    “Redemption Period”
  shall mean the period beginning on the thirtieth (30th) Trading Day after the
  Redemption Notice is deemed received pursuant to paragraph (a) above and
  ending at 11:59 p.m., Pacific Time, on the thirtieth (30th) Trading Day
  after the Redemption Notice is deemed received.  “Redemption Conditions” means:  (i) the Closing Price shall be equal
  to or greater than four dollars ($4.00) per share, for a consecutive twenty
  (20) Trading Day period; and (ii) the average daily trading volume for
  the Common Stock during such twenty (20) Trading Day period shall be at least
  Four Hundred Thousand (400,000) shares. 
  “Trading Day” means any day on which the principal United States
  securities exchange or trading market where the Common Stock is then listed
  or traded is open for trading.

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Representations and Warranties by SWEET SUCCESS:

  	
  SWEET SUCCESS represents
  and warrants to each of JMBP and Burnett that:

   

  (a)                                  It is duly organized and is validly
  existing in good standing under the laws of the jurisdiction in which it was
  organized.

   

  (b)                                 It has the power authority to enter into
  and perform its obligations under this Agreement, the Warrant agreements and
  the other agreements contemplated hereby (collectively, the “Transaction
  Agreements”) and perform the transactions contemplated thereby;

   

  (c)                                  It has taken all necessary action to
  authorize the execution, delivery and performance of the Transaction
  Agreements and the transactions contemplated thereby; and

   

  (d)                                 The execution, delivery and performance of
  its obligations under the Transaction Agreements and the transactions
  contemplated thereby will not violate or conflict with or result in any
  breach of or default under any material

  

 

9

 

	
   

  	
   

  	
  contract, agreement, lease, license, indenture,
  trust or other instrument which is either binding upon or enforceable against
  it, nor will such execution, delivery and performance conflict with any
  decree, writ, injunction, judgment or order of any court or administrative or
  other governmental body or of any arbitration award which is either
  applicable to, binding upon or enforceable against it.

   

  (e)                                  As of the date hereof, except for (i) 12.7
  million shares of common stock, and (ii) 1,020,000 warrants, SWEET
  SUCCESS has no outstanding shares of common stock, preferred stock, other
  equity securities or other securities which are exercisable, convertible or
  exchangeable for equity securities, and has no current commitments to issue
  any of the foregoing.

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Representations and Warranties by JMBP

  and Burnett:

  	
  (a)  Each of JMBP and
  Burnett represents and warrants to SWEET SUCCESS that:

   

  (i)                                     Such Party has the power authority to enter
  into and perform such Party’s obligations under the Transaction Agreements
  and perform the transactions contemplated thereby;

   

  (ii)                                  Such Party has taken all necessary action
  to authorize the execution, delivery and performance of the Transaction
  Agreements and the transactions contemplated thereby; and

   

  (iii)                               The execution, delivery and performance of
  such Party’s obligations under the Transaction Agreements and the
  transactions contemplated thereby will not violate or conflict with or result
  in any breach of or default under any material contract, agreement, lease,
  license, indenture, trust or other instrument which is either binding upon or
  enforceable against such Party, nor will such execution, delivery and
  performance conflict with any decree, writ, injunction, judgment or order of
  any court or administrative or other governmental body or of any arbitration
  award which is either

  

 

10

 

	
   

  	
   

  	
  applicable to, binding upon or enforceable against
  such Party.

   

  (b)                                 JMBP represents and warrants to SWEET
  SUCCESS that JMBP is duly organized and is validly existing in good standing under
  the laws of the jurisdiction in which it was organized.

   

  
	
  13.

  	
  Additional Agreements:

   

   

  	
  (a)  This Agreement shall remain a binding legal agreement
  between the Parties except to the extent set forth in any additional
  definitive agreements entered into by the Parties in connection with Product
  Placements, Product Integrations and/or License Agreements, it being
  understood that such other definitive agreements, upon execution thereof,
  will supersede the terms of this Agreement to the extent of a clear inconsistency
  between the terms hereof and the terms of such additional definitive
  agreement.

   

  (b)  With respect to any terms not set forth in this Agreement,
  the Product Placement agreements, Product Integration agreements and License
  agreements will contain terms and conditions consistent with product
  placements, product integrations and licenses conducted by JMBP and Burnett
  in the ordinary course of business (including with respect to approval rights
  and payment of expenses).

   

  (c)  Within the 90-day period following the date hereof, SWEET
  SUCCESS, JMBP and Burnett will negotiate the terms of the warrants and
  related agreements, and SWEET SUCCESS shall provide to JMBP and Burnett all
  legal and business due diligence information requested by such Parties.  If JMBP and Burnett are not satisfied with
  the results of such due diligence, in their sole and absolute discretion,
  they may terminate this Agreement on or before the end of such 90-day period,
  and all obligations hereunder (and any Warrants) shall become null and void.

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Expenses:

  	
  Each Party will bear its own costs and expenses related to the
  transactions contemplated by the Transaction Agreements, except as otherwise
  required by Section 13 and/or as may be set forth in any such agreement.

  

 

11

 

	
  15.

  	
  Publicity:

  	
  Any press release or other public disclosure regarding the
  Transaction Agreements or the relationship contemplated therein will be
  subject to the mutual approval of SWEET SUCCESS and JMBP, such approval not
  to be unreasonably withheld or delayed. 
  For the avoidance of doubt, the Parties agree that any disclosure
  reasonably necessary to carry out the terms of the Transaction Agreements is
  permitted.

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Independent Contractor

  	
  The Parties intend and agree that Burnett and JMBP are independent
  contractors and that nothing in the Transaction Agreements shall be
  interpreted or construed as creating or establishing the relationship of
  employer and employee, agency, partnership, or joint venture between SWEET
  SUCCESS, on the one hand, and Burnett or JMBP, on the other hand.  Burnett and JMBP are not engaged by SWEET
  SUCCESS on a full-time, exclusive basis and shall retain the right to perform
  services for others during the Term.

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Governing Law; Arbitration:

  	
  (a)  This Agreement is, and the definitive agreements shall be,
  governed by California law.

   

  (b)  Any and all disputes and controversies arising in
  connection with this Agreement or the transactions contemplated hereby shall
  be resolved by binding arbitration before JAMS, under its Streamlined
  Arbitration Rules and Procedures, in Los Angeles, California and on a
  confidential basis.  Any such
  arbitration shall be conducted by one (1) arbitrator, which shall be a
  retired judge selected mutually by the Parties.  If the Parties are unable to agree on a
  single arbitrator, then within ten (10) days after the initiation of an
  arbitration proceeding, the arbitrator shall be a retired judge appointed by
  the commercial panel of JAMS.  The
  written decision of the arbitrator shall be final and binding upon the
  Parties.  While the proceeding is
  pending, each Party will bear its own fees and expenses with respect to the
  arbitration and any proceeding related thereto, and the fees and other costs
  of JAMS and the arbitrator shall be borne one-half (1/2) by SWEET SUCCESS, on
  the one hand, and one-half (1/2) by JMBP and Burnett, on the other hand; provided, however, that the non-prevailing party in any
  such dispute (as declared by the arbitrator, if at all) shall pay all of the
  prevailing party’s fees and expenses (including legal fees and expenses, and
  any expenses of JAMS or the arbitrator).

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Notices:

  	
  All notices and other communications hereunder shall be in writing
  and shall be deemed given if delivered personally, facsimiled (which is
  confirmed) or mailed by registered or certified mail (return receipt
  requested) to the Parties at the following addresses (or at such other
  address for a Party as shall be specified by like notice):

  

 

12

 

	
   

  	
   

  	
  If to JMBP or Burnett, to:

   

  JMBP, Inc.

  640 North Sepulveda Boulevard

  2nd Floor

  Los Angeles, CA 90049

  Facsimile:  (310) 903-5500

  Attention:  Jordan Yospe, Esq.

   

  With a copy (which shall not constitute notice) to:

   

  Irell & Manella LLP

  1800 Avenue of the Stars

  Suite 900

  Los Angeles, CA 90067

  Facsimile:  (310) 203-7199

  Attention: Rick Wirthlin, Esq.

   

  If to SWEET SUCCESS, to

   

  SWEET SUCCESS Enterprises, Inc.

  1250 NE LOOP 410 STE 630

  SAN ANTONIO TX 78209

  Facsimile:  (210) 824-2496

  Attention:  William J Gallagher
  

  Chief Executive Officer and President

   

  With a copy (which shall not constitute notice) to:

   

  Company: 

  Adress:

   

   

  Facsimile: 

  Attention: 

   

  The address to which such notices or other communications are to be
  given by either Party may be changed by written notice given by such Party to
  the other Party pursuant to this Section 18.

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Assignment:

   

   

  	
  Neither this Agreement nor any of the rights, interests or
  obligations hereunder shall be assigned by any of the Parties hereto without
  the prior written consent of the other Parties, except that (a) SWEET
  SUCCESS may assign, in its sole discretion, any or all of its rights and
  interests hereunder to any of its subsidiaries in existence at such time, (b) JMBP
  or Burnett may delegate their rights or obligations

  

 

13

 

	
   

  	
   

  	
  hereunder to any of its affiliated production companies or any entity
  controlled by Burnett and (c) any Party may transfer its rights and
  obligations hereunder to any entity to which all or substantially all of the
  assets of such Party are assigned. 
  Subject to the preceding sentence, this Agreement will be binding
  upon, inure to the benefit of and be enforceable by the Parties and their
  respective successors and assigns.  Burnett
  may transfer the Warrants to family members, trusts for himself or family
  members, or other entities controlled by him.

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Entire Agreement; No Third-Party

  Beneficiaries:

  	
  The Transaction Agreements (including the documents and the
  instruments referred to therein and any other writings signed by each of the
  Parties with respect to any related matters) (a) constitute the entire
  agreement and supersede all prior agreements and understandings, both written
  and oral, among the Parties with respect to the subject matter thereof, and (b) are
  not intended to confer upon any person or entity other than the Parties
  thereto any rights or remedies thereunder.

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Amendments; Waivers.

  	
  No amendment, modification
  or alteration of the terms or provisions of this Agreement shall be binding
  unless the same shall be in writing and duly executed by the Party against
  whom such amendment, modification or alteration is sought to be
  enforced.  Any of the terms and
  conditions of this Agreement may be waived in writing at any time by the
  Party which is entitled to the benefits thereof.  No waiver of any of the provisions of this
  Agreement shall be deemed or shall constitute a waiver of such provision at
  any time in the future or a waiver of any other provision hereof.

  

 

[Signature Page Follows]

 

14

 

                                                In witness whereof, the Parties have caused
this Agreement to be executed as of the date first written above.

 

	
   

  	
  SWEET SUCCESS ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JMBP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARK BURNETT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Signature Page to Promotion Agreement

 

15

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