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Exhibit 10.2  

 
 

SEPARATION AGREEMENT    
    

        THIS SEPARATION AGREEMENT (this "Agreement") is made as of June 30, 2008, by and among Molson Coors Brewing
Company, a Delaware corporation (the "Company") and Timothy V. Wolf ("Executive"). 

        WHEREAS,
Executive will leave the Company to become employed by MillerCoors LLC pursuant to the terms of the Employment Letter (as defined below); and 

        WHEREAS,
the termination of the Executive's employment with the Company pursuant to the terms of this Agreement shall not be considered a "separation" pursuant to the terms of any
applicable pension plans maintained by or on behalf of the Company. 

        NOW,
THEREFORE, the parties hereto agree as follows: 

        1.    Termination of Employment Period.    The Company and Executive hereby agree that Executive's employment shall
terminate effective as of the date hereof, and that on July 1, 2008, Executive will begin his employment with MillerCoors LLC pursuant to that certain Employment Letter, dated
July 1, 2008, between MillerCoors LLC and Executive (the "Employment Letter"). 

        2.    Separation Payments and Related Matters.    

        (a)    Separation Payments.    On the date hereof, the Company will make a payment to Executive equal to $1,601,250.
Pursuant to Section 3(f) of the Employment Letter, MillerCoors will make an additional
payment to you of $1,601,250 on the date specified in such Employment Letter, with such amount referred to as the "MillerCoors Payments." 

        (b)    General Release.    Notwithstanding the provisions of Section 2(a) above, Executive shall be entitled to
receive the payment due from the Company on the date hereof if and only if Executive has executed and delivered to the Company, and has not revoked or breached (including, without limitation, by
bringing any Claim, as defined therein), the Release (as defined in Section 3 below) and has not breached any other provision of this Agreement. 

        (c)    No Other Payments.    Except as set forth in Section 2(a) above, Executive shall not be entitled to any
other salary, commission, bonuses, employee benefits (including long and short term disability, 401(k), and pension) or compensation from the Company or its subsidiaries after the date hereof and all
of Executive's rights to salary, commission, bonuses, employee benefits and other compensation hereunder which would have accrued or become payable after the date hereof (other than vested retirement
benefits accrued on or prior to the date hereof that have not yet been paid) shall cease upon the date hereof, other than those expressly required under applicable law (such as COBRA). Notwithstanding
the foregoing, nothing in this Agreement shall affect in any way (i) Executive's rights of indemnification provided to Executive by the Company's by-laws and/or other agreements or
policies, which shall continue in full force and effect, in accordance with their terms, following the date of this Agreement, or (ii) Executive's rights to receive payments pursuant to the
Company's bonus plan for the portion of 2008 prior to the date hereof, which payments, if any, will be paid to Executive at the time that payments are made to other executives, at a comparable level,
under such bonus plans, currently anticipated to be March of 2009. 

        3.    Release.    Concurrently with the execution of this Agreement, Executive shall execute and deliver to the
Company a general release in the form of Exhibit A attached hereto (the "Release"), which Release
shall be effective as of the date hereof and, as a condition to any payments set forth in Section 2 above and the rights set forth in Section 4 below, shall not be revoked in whole or in
part. The payments described in Section 2 and the rights set forth in Section 4 of this Agreement are conditioned upon the Release being in full force and effect. In any proceeding
brought by Executive to 

 

challenge
the validity of the Release, the prevailing party in such proceeding shall be entitled to all attorney's fees and/or costs incurred by that party to the fullest extent authorized by law. 

        4.    Company Release.    The Company releases and forever discharges Executive and his assigns, agents, and heirs
from, and covenant not to sue Executive, his assigns, agents and heirs with respect to all claims, rights, demands, actions, obligations, debts, sums of money, damages, and causes of action arising
from employment with the Company to the fullest extent permitted by law and public policy, except for any
claims arising from any intentional act of misconduct by Executive or any other intentional act taken by Executive in bad faith or without a reasonable belief that it was in the best interest of the
Company. Executive's obligations described in this Agreement, including Section 3 and the Release, are conditioned upon the Company's release set forth in this Section 4 being in full
force and effect. 

        5.    Equity Grants.    The Company and Executive hereby acknowledge and agree that all options to acquire shares of
the Company's Class B Common stock (including for purposes of this Agreement, Stock Only Settled Appreciation Rights) ("Options") and Restricted Stock Units ("RSUs") held by Executive pursuant
to the terms of the Molson Coors Incentive Compensation Plan (the "Plan") shall continue to vest in accordance with their terms so long as Executive
remains employed by MillerCoors LLC; provided that such Options and RSUs will be considered and deemed vested if the Executive remains employed by MillerCoors LLC for the Initial Term
(as defined in the Employment Letter) or if Executive is earlier terminated by MillerCoors LLC without Cause (as defined in the Employment Letter) or resigns with Good Reason (as defined in the
Employment Letter). Except as set forth otherwise in this Section 5, nothing in this agreement shall modify the terms of any Options or RSUs held by Executive pursuant to the terms of the Plan. 

        6.    Other Agreements.    

        (a)    Non-Disparagement.    Executive agrees not to disparage the Company or any of its past and present
investors, officers, directors or employees, and to keep all confidential and proprietary information about the past or present business affairs of the Company and its subsidiaries confidential unless
a prior written release from the Company is obtained. The Company agrees that the executives of the Company shall not disparage Executive. 

        (b)    Return of Property.    Executive further agrees that, as of the date hereof, Executive shall have returned to
the Company any and all property, tangible or intangible, relating to its business, which Executive possessed or had control over at any time (including, but not limited to, company-provided credit
cards, building or office access cards, keys, computer equipment, manuals, files, documents, records, software, customer data base and other data) and that Executive shall not retain any copies,
compilations, extracts, excerpts, summaries or other notes of any such manuals, files, documents, records, software, customer data base or other data; provided,
however, that Executive may retain the Company-issued home office computer equipment, Blackberry and phone and corporate credit card until the same is issued to Executive by
Miller Coors LLC. 

        (c)    No Admissions.    This Agreement shall not be construed as an admission of any wrongdoing by the Company, any
of its affiliates, or any of its directors, officers, agents or employees. 

        (d)    Withholding.    The Company will withhold from all payments hereunder on the basis that they are for employment
services any federal, state, local or foreign withholding taxes, excise tax, or employment taxes imposed with respect to such payments. 

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        7.    Representations and Warranties; Acknowledgments.    

        (a)    Executive's Representations and Warranties.    Executive hereby represents and warrants to the Company that
(i) the execution, delivery and performance of this Agreement by Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument,
order, judgment or decree to which Executive is a party or by which he is bound, (ii) Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality
agreement with any other person or entity (other than the Letter Agreement) and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and
binding obligation of Executive, enforceable in accordance with its terms. 

        (b)    Executive's Acknowledgment.    Executive hereby acknowledges and represents that he was advised to and he has
consulted with independent legal counsel regarding his rights and obligations under this Agreement (including the Release) or voluntarily waived the opportunity to do so and that he fully understands
the terms and conditions contained herein (including the Release). 

        (c)    The Company's Representations and Warranties.    The Company each hereby represents and warrants to Executive
that (i) the execution, delivery and performance of this Agreement by the Company do not and shall not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which the Company is a party or by which it is bound, and (ii) upon the execution and delivery of this Agreement by Executive, this Agreement shall be
the valid and binding obligation of the Company, enforceable in accordance with its terms. 

        8.    Confidentiality.    Each of the Company and Executive agrees that the contents of this Agreement and the
attached Release, including but not limited to its financial terms, are strictly confidential. By executing this Agreement, Executive agrees and represents that Executive has maintained and will
maintain the confidential nature of the agreement and has not and will not disclose its terms to any third party, except (a) to legal counsel, tax and financial planners, and immediate family
who agree to keep it confidential; (b) as otherwise required by law, in which case Executive shall notify the Company writing in advance of disclosure; and (c) as necessary to enforce
this Agreement. By executing this Agreement, the Company agrees and represents that such person has maintained and will maintain the confidential nature of the agreement and has not and will not
disclose its terms to any third party, except (x) to its executive staff and governing bodies, as necessary or appropriate, and to its outside counsel, auditors and other advisors;
(y) as otherwise required by law; and (z) as necessary to enforce this Agreement. Notwithstanding anything in this Section 7, it is understood by the Company and Executive that
the contents of this Agreement may be shared by either party hereto with MillerCoors LLC. 

        9.    Cooperation with Governmental Investigations and Responses to Subpoenas.    No provision of this Agreement shall
in any way limit Executive's ability to cooperate with any federal, state, or local government investigative agency or department in connection with any federal, state or local government
investigation or be construed as prohibiting the provision of non-privileged information, documents (including but not limited to this Agreement) and/or testimony by Executive or the
Company in response to a subpoena issued by a court of competent jurisdiction, or as may otherwise be required by law or which Executive or the Company may be requested to provide to any federal,
state, or local governmental investigative agency or department or in connection with any federal, state, or local investigation. However, in the event of a receipt of any non-governmental
subpoena Executive agrees to notify the Company with reasonable promptness before complying with such a subpoena so that it may protect its interests, including moving to quash the subpoena, as long
as provision of such notice does not violate any applicable law, rule, or court order. If the Company seeks to prevent 

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disclosure
in accordance with the applicable legal procedures, and provides Executive with notice before the deadline for Executive's compliance with the subpoena, Executive shall not make any such
disclosures until either such objections are withdrawn or the objections are finally adjudicated by the appropriate tribunal to be invalid. 

        10.    General Provisions.    

        (a)    Severability.    If any portion or provision of this Agreement will to any extent be declared illegal or
unenforceable by a court of competent jurisdiction, then the remainder of this agreement, or the application of such portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, will not be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law. 

        (b)    Complete Agreement.    This Agreement, those documents expressly referred to herein and other documents of even
date herewith, including but not limited to the Release attached as Exhibit A, set forth Executive's entire agreement with the Company and
supersede all prior and contemporaneous communications, agreements and understandings, written or oral, with the Company with respect to the subject matter hereof;  provided, however, that this Agreement will not terminate or supersede any additional obligations
Executive may have pursuant to any other agreement or under applicable law with respect to confidentiality, non-competition, assignment of rights to intellectual property or similar
obligations. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. 

        (c)    Counterparts.    This Agreement may be executed in two or more counterparts, each of which will be an original
and all of which together will constitute one and the same instrument. 

        (d)    Successors and Assigns.    This Agreement will inure to the benefit of and be binding upon Executive and the
Company, and each of their respective successors, executors, administrators, heirs and assigns, provided that this Agreement may not be assigned by Executive without the prior written consent of the
Company. 

        (e)    Governing Law.    This Agreement, the rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed in accordance with the laws of the State of Delaware (without regard to its choice of law provisions). Each of the parties agrees that any dispute
between the parties shall be resolved only in the courts of the State of Delaware or the United States District Court for the District of Delaware and the appellate courts having jurisdiction of
appeals in such courts. In that context, and without limiting the generality of the foregoing, each of the parties hereto irrevocably and unconditionally (a) submits for himself or itself in
any proceeding relating to this Agreement or your employment by the Company or any Affiliate, or for the recognition and enforcement of any judgment in respect thereof (a
"Proceeding"), to the exclusive jurisdiction of the courts of the State of Delaware, the court of the United States of America for the District of
Delaware, and appellate courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Proceeding shall be heard and determined in such Delaware
State court or, to the extent permitted by law, in such federal court; (b) consents that any such Proceeding may and shall be brought in such courts and waives any objection that he or it may
now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agrees not to plead or claim the same;
(c) waives all right to trial by jury in any Proceeding (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or your employment by the Company or any
Company affiliate, or his or its performance under or the 

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enforcement
of this Agreement; (d) agrees that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such party at his or its address; and (e) agrees that nothing in this Agreement shall affect the right to effect service of process in any other
manner permitted by the laws of the State of Delaware. 

        (f)    Specific Performance and Enforcement.    Each of the parties to this Agreement shall be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including reasonable attorney's fees) caused by any breach of any provision of this Agreement and to exercise all other rights
existing in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement. 

        (g)    Amendment and Waiver.    The provisions of this Agreement may be amended and waived only with the prior written
consent of the Company and Executive. 

        (h)    Notices.    Any notices provided for in this Agreement will be in writing and will be effective immediately
when delivered in person or three (3) days after such notice is deposited in the United States mail, postage prepaid, and addressed to Executive at Executive's last known address on the books
of the Company or, in the case of the Company, to it at its principal place of business, attention Chairman of the Board of Directors, or to such other address as either party may specify by notice to
the other actually received. 

*
* * * 

        IN
WITNESS WHEREOF, the parties hereto have executed this Separation Agreement on the date first written above. 

	

 	
 	

MOLSON COORS BREWING COMPANY
	

 	
 	

By:	
 	

/s/  DOUGLAS N. BECK      

	 	 	Name:	 	Douglas N. Beck
	 	 	Its:	 	Attorney in Fact under Power of Attorney dated June 17, 2008 for Samuel D. Walker, General Counsel, Vice President and Secretary
	

 	
 	

EXECUTIVE
	

 	
 	

/s/  TIMOTHY V. WOLF      
 TIMOTHY V. WOLF

5

  Exhibit A  

GENERAL RELEASE  

        I, Timothy V. Wolf, in consideration of and subject to the performance by Molson Coors Brewing Company, a Delaware corporation (the
"Company"), of its obligations under the Separation Agreement, dated as of June 30, 2008 (the "Separation
Agreement"), do hereby release and forever discharge as of the date hereof the Company and its affiliates and all present and former directors, officers, agents,
representatives, employees, successors and assigns of the Company and its affiliates and the Company's direct or indirect owners (collectively, the "Released
Parties") to the extent provided below. 

        1)    I
understand that any payments or benefits paid or granted to me under the Separation Agreement on or after the date hereof represent, in part, consideration for signing
this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive such payments and benefits specified in the Separation
Agreement unless I execute this General Release and do not revoke or breach this General Release. Such payments and benefits will not be considered compensation for purposes of any employee benefit
plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates. I also acknowledge and represent that I have received all payments and benefits that I am
entitled to receive (as of the date hereof) by virtue of any employment by the Company. 

        2)    Except
as provided in paragraphs 4 and 9 below and except for those provisions arising out of the performance of the Separation Agreement which expressly survive
the termination of my employment with the Company, I knowingly and voluntarily (for myself and my heirs, executors, administrators and assigns) release and forever discharge the Company and the other
Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary
damages, other damages, claims for costs and attorneys' fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date this General Release becomes
effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties that I, my spouse, or any of my heirs, executors, administrators or
assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation,
arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit
Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act;
the Employee Retirement Income Security Act of 1974 (except as provided in paragraph 8 below); any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local
counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or
tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation;
or any claim for costs, fees, or other expenses, including attorneys' fees incurred in these matters) (all of the foregoing are collectively referred to herein as the
"Claims"). 

        3)    I
represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above. 

        4)    I
agree that this General Release does not waive or release any rights or claims that I may have (a) under the Age Discrimination in Employment Act of 1967 which
arise after the date I execute this General Release, (b) with respect to any options to acquire common stock of the Company which I may exercise after the Separation Date as a result of
Section 4 of the Separation Agreement, (c) with respect to any vested benefits (including, but not limited to, 401(k) or other vested retirement benefits) or (d) for claims which
cannot be released as a matter of law. I acknowledge and agree that my 

 

separation
from employment with the Company is in compliance with the terms of the Separation Agreement and company policy and shall not serve as the basis for any Claim (including, without
limitation, any claim under the Age Discrimination in Employment Act of 1967). I further agree that this General Release does not include or limit in any way my rights to indemnification pursuant to
the Company's articles of incorporation, by-laws, and/or policies. 

        5)    I
agree that I am waiving all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever, including, without
limitation, reinstatement, back pay, front pay, attorneys' fees and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to
waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however that I disclaim
and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. 

        6)    In
signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I
covenant and agree that I will not file or institute at any time hereafter any Claim (whether arising out of or connected with my employment with, or my separation or termination from, the Company or
otherwise) against any of the Released Parties. I agree that filing or instituting any such Claims would be a material breach of this General Release. I expressly consent that this General Release
shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state statute that
expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I
acknowledge and agree that this waiver and agreement not to bring any Claim is an essential and material term of this General Release and that without such waiver and agreement not to bring any Claim
the Company would not have agreed to the terms of the Separation Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek
to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law.
I further agree that I am not aware of any pending Claim of the type described in paragraph 2 above as of the execution of this General Release and I represent and warrant to the Company that I
have not filed or instituted any Claim against any of the Released Parties. 

        7)    I
represent that I am not aware of any claim by me other than the claims that are released by this Agreement. I acknowledge that I may hereafter discover claims or facts
in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at
the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it. Nevertheless, I hereby waive any right, claim or cause of action
that might arise as a result of such different or additional claims or facts. 

        8)    I
agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission
by the Company, any Released Party or myself of any improper or unlawful conduct. 

        9)    I
agree that I will forfeit all amounts payable by the Company pursuant to or referenced in the Separation Agreement (including, without limitation, the benefits
referenced in paragraphs 2(a) and 4 thereof) if I challenge the validity of this General Release. I also agree that if I violate this General Release by suing the Company or the other Released
Parties, I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees, and return all payments received by me pursuant to or
referenced in the Separation Agreement. I 

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understand
that this paragraph 9 does not apply if I file a charge or lawsuit under the Age Discrimination in Employment Act of 1967 (an "ADEA
Claim") challenging the validity of this General Release. However, in the event any such ADEA Claim is unsuccessful, I acknowledge that a court may order me to pay attorney's
fees and/or costs incurred by any of the Released Parties where authorized by law. In the event any such ADEA Claim is successful, the severance benefits or payments I received, in part for signing
this General Release, may serve as restitution, recoupment, or setoff to any monetary award I receive. 

        10)  I
agree that this General Release is confidential and agree not to disclose any information regarding the terms of this General Release, except to my immediate family
and any tax, legal or other counsel I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone. I
understand that I also may disclose this General Release and information regarding its terms as required by law or court order. 

        11)  Notwithstanding
anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising
out of any breach by the Company or by any Released Party of the Separation Agreement as modified by the Separation Agreement, or any of the Company's benefit plans qualified under the Employee
Retirement Income Security Act of 1974, in each case after the date hereof. 

        All
issues and questions concerning the construction, validity, enforcement and interpretation of this General Release shall be governed by and construed in accordance with the laws of
the State of Delaware without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New Delaware or any other jurisdiction) that would cause the application
of the law of any jurisdiction other than the State of Delaware. 

        The
parties agree that they will not file any action arising out of or based upon this General Release other than in the federal and state courts located in the State of Delaware. The
parties consent to personal jurisdiction and venue solely within the federal and state courts located in the State of Delaware and waive all other possible objections thereto. 

        Whenever
possible, each provision of this General Release shall be interpreted in, such manner as to be effective and valid under applicable law, but if any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision or its validity or enforceability in any other jurisdiction, but this General Release shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 

        BY
SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT: 

        1)    I
HAVE READ IT CAREFULLY; 

        2)    I
UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT
OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 

        3)    I
VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

        4)    I
HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY (INCLUDING VIA THIS GENERAL RELEASE) BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I
HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 

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        5)    I
HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS GENERAL RELEASE SUBSTANTIALLY IN ITS FINAL FORM TO CONSIDER IT AND EITHER SUCH 21 DAYS HAVE ELAPSED OR I
HAVE KNOWINGLY WAIVED THAT 21 DAY PERIOD; 

        6)    I
UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS GENERAL RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE
REVOCATION PERIOD HAS EXPIRED; 

        7)    I
HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 

        8)    I
AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY ME. 

Date:
June 30, 2008 

	 	 	/s/  TIMOTHY V. WOLF      
 TIMOTHY V. WOLF

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QuickLinks

SEPARATION AGREEMENTFixed Asset Purchase Agreement

     Medina International  Holdings,  Inc. ("Medina") and MGS Grand Sports, Inc.
     ("MGS")  hereby entered into an agreement to transact the following on June
     18, 2008 in California.

1.   Medina  hereby  agrees to acquire  Fixed Assets as listed in Exhibit A from
     MGS.

2.   Medina will acquire the Name of the company Modena Sports Design,  LLC. DBA
     Harbor  Guard  (HG),  web  sites  and  domain  names of both  companies  by
     transferring to Medina.

3.   In  consideration  for the above  acquisition  of fixed assets  Medina will
     issue 5,500,000  shares of common stockof which 5,445,000 will be issued to
     MGS Grand Sports, Inc. and 55,000 shares to Mardikian Design.

4.   Medina will link the Medina  website and Medina  Marine (MM) website to HGB
     website immediately upon signing this agreement

5.   Sales commission agreement with existing agents will be renewed with Medina
     Marine,  Inc.  (wholly  Owned  Subsidiary of Medina) and Harbor Guard Boats
     separately.  Sales  commission  will start accruing from the date of taking
     delivery of the assets and inventory.

6.   HGB will  hand over all the  existing  orders  to  Harbor  Guard  Boats new
     management team.

7.   Medina will under take to produce and sell the  customers  from the date of
     this agreement with Mardikian's help & guidance.

8.   All previous sales liability will be the responsibility of Mardikian.

9.   New production by Medina is assumed from the time the agreement is signed.

10.  Albert's new ideas will be  estimated  for approval by the Board of Medina.
     After the approval of the Board,  capital  expense  will be  allocated  for
     Albert to work on the project

11.  Right to use and exercise the License  transferred  by Mardikian to produce
     patented items under Medina include the following:

     a)   12' Rescue and Fire Rescue water craft design

     b)   15' Rescue and Fire Rescue water craft design

     c)   18' Rescue and Fire Rescue water craft design

     d)   20' Rescue and Fire Rescue water craft design

     e)   24' Rescue and Fire Rescue water craft design

     f)   26; Rescue and Fire Rescue water craft design

     g)   28' Rescue and Fire Rescue water craft design

     h)   30' Rescue and Fire Rescue water craft design

     i)   35' Rescue and Fire Rescue water craft design

     j)   22' Vortex

     k)   30' Modena 302

     l)   All Water Pump technology and designs.

     m)   Doors

     n)   MCD System

     o)   New projects like Trash, Limousine,  Taxi and all other marine related
          projects

     p)   MM will also have the right to produce  in any of the  models  mention
          above  in any  configuration,  such as  Police  Model,  Patrol  Model,
          Military Model, Ballistic Model, etc....

<PAGE>

12.  Licensing  Rights on Patents and Designs will be agreed upon under separate
     licensing agreement between Medina and Mardikian Designs.  Medina will hold
     the License rights in its name.

13.  Medina  will have the  right to sub  License  the  Rights  to  products  it
     produces to its subsidiaries and Associate  companies by Albert Mardikian's
     approval.

14.  Medina will enter into separate  contract  with Hull and Deck  manufacturer
     which is done by Albert Mardikian.

15.  Assets list to include the following:

     Hand Tools, Power Tools, 4 Chopper Gel Coat Machine, Welders, A Frame, Boat
     dolly's, Boat hull stands, Fork Lifts.

16.  Accounts payable  representing  the HG Inventory (raw material,  parts, and
     work  in  progress)   under  this   purchase   agreement   will  be  Medina
     responsibility.  Payments  on account of  account  payable  will be paid to
     Albert Mardikian upon collection of money on boats completed and sold.

17.  Rent of $6,500.00 will be paid monthly per lease agreement inclusive of all
     taxes etc.

18.  Medina  will  decide  the  economically   sensible  place  to  produce  all
     production.

19.  Mardikian  will provide all necessary  help to make a smooth  transition to
     Medina for expanding the business activity

20.  Employment  agreement will be drawn up separately with Albert  Mardikian in
     par with Madhava Rao Mankal and Daniel Medina.

21.  Medina  will  have the right to pay all its past  debts  from  present  and
     future Medina Marine boat sales.

22.  All product  liabilities of Harbor Guard Boats prior to this merger will be
     sole  responsibility  of  Mardikian.  Liability  can be of any nature  from
     product  liability  to debt to any  thing.  And the same  applies to Medina
     Marine product liabilities.

23.  Albert Mardikian will be appointed  Chairman and CEO of Harbor Guard boats,
     Llc which is wholly owned by Medina

24.  Albert will be  appointed  as Director  of Medina  International  Holdings,
     Insofar a period of Three years

25.  If Harbor  Guard Boats books need to be audited,  cost of the audit will be
     born by Medina.

<PAGE>

                                 Signature Page

--------------------------  ---------------------------------------------
MGS Grand Sports, Inc.
2051 Placentia Ave., Costa Mesa, CA 92627

------------------------------------
Daniel Medina, President
Medina International Holdings, Inc.
255 S. Leland Norton Way,
San Bernardino, CA 92408

--------------------------------------------------------------------------------

-------------------------------------
Madhava Rao Mankal, CFO,
Medina International Holdings, Inc.
255 S. Leland Norton Way,
San Bernardino, CA 92408

<PAGE>

                                    EXHIBIT A

                              Fixed Assets Schedule

              Description                                           Quantity
              -----------                                           --------

            Machinery
            ---------
1.       Komatsu FG 20 Fork Lift                                       1
2.       Fans Hi Volume                                                2
3.       Devolt Cutting Machine                                        1
4.       Stool to Work on Pumps                                        1
5.       Hydraulic Press                                               1
6.       Rotating Screw Bins                                           3
7.       Flat Sander                                                   1
8.       Drill Motor                                                   2
9.       A Frame Yellow 12' Duel Pick up                               1
10.      Power Vacuum                                                  2
11.      Rockwell Delta Cutting Machine Large                          1
12.      Ridge Cutting Machine                                         1
13.       Accetely Torch Set                                           1
14.      Engine Hoist 1 Ton                                            1
15.      Miller Mastics Welding Machine                                1
16.      Lifting Bolt Jacks                                            2
17.      Battery Charger                                               1
18.      A Frame Electric 14'                                          1
19.      Rockwell Delta Bench Saw                                      1
20.      Rockwell Horizontal Cutting Saw                               1
21.      Chopper                                                       2
22.      Resin Machine                                                 2
23.      Ladder Movable                                                2
24.      Trailer  30' Yellow                                           1
25.      Trailer Black                                                 1
26.      Trailer Pacific Galvanized                                    1
27.      Trailer at Sea Fab                                            1
28.      Saw Table                                                     1
29.      Dolly                                                         1
30.      Compressor RED  (Victor)                                      1
31.      Scale                                                         1
32.      Dolly at Sea Fab                                              2

            Tools
            -----
33.      Tools on the Rack                                             1
34.      Tools in Boxes                                                3
35.      Clamps for Gluing                                             200

         Office Equipment
         ----------------
36.      Cabinets                                                      2
37.      Time Card Machine                                             1
38.      Blue Printing Machine                                         1
39.      Tables                                                        3
40.      Desk                                                          1

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